[6.1] Operation Level Scrap Costs

Thanks. That (and a lot of other things here) would work great if we used the Advanced Quality module we bought long ago and then abandoned (long story and involved politics). As it is we collect no DMR and NMR info.

I ended up using JobOper completed qty on succesive operations to get a "difference" and called it the the scrap qty (with some sanity checks for missing counts, etc...). Then calculated a running cost per piece to that level for the allowable costs and multiplied by the "scrap" qty. This gave me the cost of scrapped parts on the first production run for new tooling. This is all part of calculating R&D costs for the R&D Tax Credit calculations which were very worthwhile as they gave us fed tax credits (to carry forward) in the hundreds of thousands of dollars range because we could go back several years. A very worthwhile project. Our accountants reviewed the process and methodologies and thought they were adequate the way I ended up doing it. If anything I leaned far to the conservative side especially for recognizing scrap quantities.
-Todd C.

________________________________
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of robolinz
Sent: Friday, September 21, 2007 2:44 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: [6.1] Operation Level Scrap Costs


Todd,
I'm no wizard, but can tell you what we/I do to answer the question I
think you are asking. This method is probably unduly clunky, but I'll
describe it anyway in case it triggers any useful insights in your
situation. And this could probably be done with Report Builder or the
like, but I do it within Access after populating tables via an ODBC
connection. The production context is mainly machining of aircraft
parts for aircraft manufacturing companies.

The DMRHead table contains costs attached to a part(s) cumulative to
the moment the part(s) went on an NMR -- or at least we believe it
does, and use it accordingly. Note that the values shown there are
unit costs, not totals, so if you see $100 as the material cost, the
gross material cost on the job to that point should be $100 * the
production qty that were still in the game (not already DMR'd).
Likewise the labor cost field in DMRHead.

DMRHead also contains the assembly sequence and the operation (or
material) sequence involved when somebody generated an NMR on a job.
So that gets us to stage 1 of answering the question.

In addition, in our case it is also necessary to join DMRHead to
DMRActn. That is because the "actions" (disposition decisions) on the
DMR may have sent one or more of those very parts right back to the
same job/assembly and operation or material sequence that it or they
came from. In that case, you would know that at least some of the
cost on the DMR'd parts did NOT leave the job. Since DMRActn tells
you how many got accepted, and to what destination, you can determine
what quantity went back to the original job; then, with that
information, you can accurately calculate what costs actually left
the job at the given assembly and sequence #.

To further complicate the picture, many of our jobs are actively
progressing for months -- not just because of long machining times
but because we may need to send a part or parts to various metal
processing vendors at different steps along the way, may (do)
encounter problems with the engineering data we received not being
wholly consistent, etc. So you can't just grab the first DMR you see
on the job, but actually have to look for all of them and then
summarize in whatever way suits your situation.

If this is of no help, my apologies for being so wordy.

Bob Lindsey, Pro-Fab Inc.

--- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, Todd Caughey <caugheyt@...> wrote:
>
> Perhaps someone could point me to the right tables....I need to
create a report for closed jobs that will total accumulated material
and labor costs at the operation level on first run parts. I need
only the material and labor cost of the parts scrapped at a given
level in the production process....thus as parts proceed through and
their WIP value is increasing due to labor (and perhaps added
material) at each operation and if they are scrapped they exit the
process with that per piece value. Shop overhead (burden) and
subcontract costs are explicitly disallowed.
>
> I would rather not have to link to LaborDtl but so far it is the
only place I see each operation linked to an actual scrap qty.
>
> Thanks,
> Todd Caughey
> Harvey Vogel Mfg. Co.
>
> ________________________________
> The information contained in this E-mail message and any documents
which may be attached are privileged and confidential, and may be
protected from disclosure.
>
> Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal
restriction or sanction. If you think you have received this message
in error, please reply to the sender.
>
> For more information please visit www.harveyvogel.com
>
>
> [Non-text portions of this message have been removed]
>



________________________________
The information contained in this E-mail message and any documents which may be attached are privileged and confidential, and may be protected from disclosure.

Please be aware that any use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you think you have received this message in error, please reply to the sender.

For more information please visit www.harveyvogel.com


[Non-text portions of this message have been removed]
Perhaps someone could point me to the right tables....I need to create a report for closed jobs that will total accumulated material and labor costs at the operation level on first run parts. I need only the material and labor cost of the parts scrapped at a given level in the production process....thus as parts proceed through and their WIP value is increasing due to labor (and perhaps added material) at each operation and if they are scrapped they exit the process with that per piece value. Shop overhead (burden) and subcontract costs are explicitly disallowed.

I would rather not have to link to LaborDtl but so far it is the only place I see each operation linked to an actual scrap qty.

Thanks,
Todd Caughey
Harvey Vogel Mfg. Co.

________________________________
The information contained in this E-mail message and any documents which may be attached are privileged and confidential, and may be protected from disclosure.

Please be aware that any use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you think you have received this message in error, please reply to the sender.

For more information please visit www.harveyvogel.com


[Non-text portions of this message have been removed]
Todd,
I'm no wizard, but can tell you what we/I do to answer the question I
think you are asking. This method is probably unduly clunky, but I'll
describe it anyway in case it triggers any useful insights in your
situation. And this could probably be done with Report Builder or the
like, but I do it within Access after populating tables via an ODBC
connection. The production context is mainly machining of aircraft
parts for aircraft manufacturing companies.

The DMRHead table contains costs attached to a part(s) cumulative to
the moment the part(s) went on an NMR -- or at least we believe it
does, and use it accordingly. Note that the values shown there are
unit costs, not totals, so if you see $100 as the material cost, the
gross material cost on the job to that point should be $100 * the
production qty that were still in the game (not already DMR'd).
Likewise the labor cost field in DMRHead.

DMRHead also contains the assembly sequence and the operation (or
material) sequence involved when somebody generated an NMR on a job.
So that gets us to stage 1 of answering the question.

In addition, in our case it is also necessary to join DMRHead to
DMRActn. That is because the "actions" (disposition decisions) on the
DMR may have sent one or more of those very parts right back to the
same job/assembly and operation or material sequence that it or they
came from. In that case, you would know that at least some of the
cost on the DMR'd parts did NOT leave the job. Since DMRActn tells
you how many got accepted, and to what destination, you can determine
what quantity went back to the original job; then, with that
information, you can accurately calculate what costs actually left
the job at the given assembly and sequence #.

To further complicate the picture, many of our jobs are actively
progressing for months -- not just because of long machining times
but because we may need to send a part or parts to various metal
processing vendors at different steps along the way, may (do)
encounter problems with the engineering data we received not being
wholly consistent, etc. So you can't just grab the first DMR you see
on the job, but actually have to look for all of them and then
summarize in whatever way suits your situation.

If this is of no help, my apologies for being so wordy.

Bob Lindsey, Pro-Fab Inc.


--- In vantage@yahoogroups.com, Todd Caughey <caugheyt@...> wrote:
>
> Perhaps someone could point me to the right tables....I need to
create a report for closed jobs that will total accumulated material
and labor costs at the operation level on first run parts. I need
only the material and labor cost of the parts scrapped at a given
level in the production process....thus as parts proceed through and
their WIP value is increasing due to labor (and perhaps added
material) at each operation and if they are scrapped they exit the
process with that per piece value. Shop overhead (burden) and
subcontract costs are explicitly disallowed.
>
> I would rather not have to link to LaborDtl but so far it is the
only place I see each operation linked to an actual scrap qty.
>
> Thanks,
> Todd Caughey
> Harvey Vogel Mfg. Co.
>
> ________________________________
> The information contained in this E-mail message and any documents
which may be attached are privileged and confidential, and may be
protected from disclosure.
>
> Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal
restriction or sanction. If you think you have received this message
in error, please reply to the sender.
>
> For more information please visit www.harveyvogel.com
>
>
> [Non-text portions of this message have been removed]
>