8.03.407 - Setting Anticipated Scrap in a MOM

Keith

On 404b-405a the job qty yield recalc process definitely reduces job qty based upon reported OP losses.

It wouldn't make sense to have it increase to compensate as a multi-op job (like your cut bar example) might be 5 or 6 OPs into the job on CNC machines with hours long setups... You would never want to have to cut extra material, start from 1st OP again & incur re-setups!

Hopefully they haven't changed it in later version (and never will!)

Definitely test it on your 407 to assure yourself!

Just beware: It puts pressure on SUPER accurate labor reporting being required. If someone marks an OP complete (short) in End Activity (by accident - and with mosue driven systems that will happen) - the recurring process will do its thing and reduce your job qty.

We get a few a month where an operator accidently marks the wrong op complete - exiting the screen thinking the record wasn't written - and the recalc process reduces job qty to zilch... Fortunately, your floor operators can recognize something went wrong when the WIP job disappears from their dispatch - and can alert your scheduler to correct job qty after fixing their labor entry error.

That said, that is much less pain than wading through MANY more jobs than that each month that otherwise require intervention to complete & ultimately close.

Rob




________________________________
From: Keith <keithfwalter@...>
To: vantage@yahoogroups.com
Sent: Wednesday, September 30, 2009 11:42:13 AM
Subject: [Vantage] Re: 8.03.407 - Setting Anticipated Scrap in a MOM

Â
Thanks for the insight, Rob. I guess it does make sence from the assembly example you gave.

I have been scared of the recalculate thing - I was told that this would automatically increase the Job's material demand (i.e. add aty's to the BOM) to account for any scrap. sounds like you are saying it is the oposite - that the Job qty reduces. "I will have to test this", as my consultant is fond of saying.

-Keith Walter

--- In vantage@yahoogroups .com, Robert Brown <robertb_versa@ ...> wrote:
>
> Welcome to Vantage Keith. Behavior you described is 'as designed' (ridiculously counterintuitive as it may seem).
>
> I've managed operations where this behavior might actually make sense. You're specificy op scrap - IE LABOR scrap - simply to cost account for a historically expected rework loop in, say, an assy OP - where no material losses are really incurred. (Just as easy to factor that into your cycle time without getting crazy about a labor scrap %.) Depending upon how you have things tied to G/L (and what cost method you use), it can impact financials. (Std cost parts would book a % labor scrap loss upon job receipt to whatever account you set up.)
>
> Sounds like you would be better off applying scrap rate on the material (and inflate you Min production qty used by MRP accordingly. )
>
> You also might want to consider setting up to utilize the Job Qty Yield recalc process so actual reported OP losses ratchet down job qty (remaining) expected accordingly. (Makes Job Completion must cleaner.)
>
> Rob Brown
>
>
>
>
> ____________ _________ _________ __







[Non-text portions of this message have been removed]
We go-live Nov 2. Currently doing our final checks of data-importation. We have an issue with scrap, which can be entered at the Operation and at the Material level. Help seems to suggest these two are related:

"If you entered a scrap factor for the Operation to which this material requirement is associated, the quantity and type are displayed as the defaults for the material. The scrap factor is used to increase the planned material requirement quantity. It can be a fixed quantity or a percentage."

We do not see any relationship as we change these values.

A common MOM for us will be like this:
Operations:
op10...SawCutting
op20...Machining (with a planned scrap amount)
op30...QAInspection

Material:
75.0202...BarStock...1.00 ft per

Our dataConversion brings scrap over as a fixed amount into op20 (2pcs for example). However, the production qty for op10 does not increase, and the Material required is not increased on the Part's MOM, nor on a Job's MOM. I expect to see this for a WO for 50pcs when I enter a scrap of 2pcs on op20:

operations:
op10...Cutting...52pcs
op20...machiing...52pcs
op30...Quality...50pcs

material:
75.0202...BarStock...52 feet


...instead, I get this:

operations:
op10...Cutting...50pcs
op20...machiing...52pcs
op30...Quality...50pcs

material:
75.0202...BarStock...50 feet

pretty confusing. How can I get what I want? What do you do?

Keith
Welcome to Vantage Keith. Behavior you described is 'as designed' (ridiculously counterintuitive as it may seem).

I've managed operations where this behavior might actually make sense. You're specificy op scrap - IE LABOR scrap - simply to cost account for a historically expected rework loop in, say, an assy OP - where no material losses are really incurred. (Just as easy to factor that into your cycle time without getting crazy about a labor scrap %.) Depending upon how you have things tied to G/L (and what cost method you use), it can impact financials. (Std cost parts would book a % labor scrap loss upon job receipt to whatever account you set up.)

Sounds like you would be better off applying scrap rate on the material (and inflate you Min production qty used by MRP accordingly.)

You also might want to consider setting up to utilize the Job Qty Yield recalc process so actual reported OP losses ratchet down job qty (remaining) expected accordingly. (Makes Job Completion must cleaner.)

Rob Brown




________________________________
From: Keith <keithfwalter@...>
To: vantage@yahoogroups.com
Sent: Monday, September 28, 2009 4:13:37 PM
Subject: [Vantage] 8.03.407 - Setting Anticipated Scrap in a MOM

Â
We go-live Nov 2. Currently doing our final checks of data-importation. We have an issue with scrap, which can be entered at the Operation and at the Material level. Help seems to suggest these two are related:

"If you entered a scrap factor for the Operation to which this material requirement is associated, the quantity and type are displayed as the defaults for the material. The scrap factor is used to increase the planned material requirement quantity. It can be a fixed quantity or a percentage."

We do not see any relationship as we change these values.

A common MOM for us will be like this:
Operations:
op10...SawCutting
op20...Machining (with a planned scrap amount)
op30...QAInspection

Material:
75.0202...BarStock. ..1.00 ft per

Our dataConversion brings scrap over as a fixed amount into op20 (2pcs for example). However, the production qty for op10 does not increase, and the Material required is not increased on the Part's MOM, nor on a Job's MOM. I expect to see this for a WO for 50pcs when I enter a scrap of 2pcs on op20:

operations:
op10...Cutting. ..52pcs
op20...machiing. ..52pcs
op30...Quality. ..50pcs

material:
75.0202...BarStock. ..52 feet

...instead, I get this:

operations:
op10...Cutting. ..50pcs
op20...machiing. ..52pcs
op30...Quality. ..50pcs

material:
75.0202...BarStock. ..50 feet

pretty confusing. How can I get what I want? What do you do?

Keith







[Non-text portions of this message have been removed]
Thanks for the insight, Rob. I guess it does make sence from the assembly example you gave.

I have been scared of the recalculate thing - I was told that this would automatically increase the Job's material demand (i.e. add aty's to the BOM) to account for any scrap. sounds like you are saying it is the oposite - that the Job qty reduces. "I will have to test this", as my consultant is fond of saying.

-Keith Walter


--- In vantage@yahoogroups.com, Robert Brown <robertb_versa@...> wrote:
>
> Welcome to Vantage Keith. Behavior you described is 'as designed' (ridiculously counterintuitive as it may seem).
>
> I've managed operations where this behavior might actually make sense. You're specificy op scrap - IE LABOR scrap - simply to cost account for a historically expected rework loop in, say, an assy OP - where no material losses are really incurred. (Just as easy to factor that into your cycle time without getting crazy about a labor scrap %.) Depending upon how you have things tied to G/L (and what cost method you use), it can impact financials. (Std cost parts would book a % labor scrap loss upon job receipt to whatever account you set up.)
>
> Sounds like you would be better off applying scrap rate on the material (and inflate you Min production qty used by MRP accordingly.)
>
> You also might want to consider setting up to utilize the Job Qty Yield recalc process so actual reported OP losses ratchet down job qty (remaining) expected accordingly. (Makes Job Completion must cleaner.)
>
> Rob Brown
>
>
>
>
> ________________________________
In my previous life, we had limited material to issue, and had to issue
by lot number. Recalc about killed us. It was, indeed, making
suggestions to increase jobs when we had scrap, but only if we had scrap
that dropped the production qty to below the demand link entered qty.
There was no suggestion or recalc when an operation had higher than
normal scrap, even though normal scrap in follow-on operations would
cause the outs to be below the required qty out. Had to set up
notifications for that.

The consultant is correct- test for this, but test thoroughly.
Depending on how your process runs, recalc can work well or not.

Hope this helps!

- leAnn





From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Keith
Sent: Wednesday, September 30, 2009 8:42 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: 8.03.407 - Setting Anticipated Scrap in a MOM





Thanks for the insight, Rob. I guess it does make sence from the
assembly example you gave.

I have been scared of the recalculate thing - I was told that this would
automatically increase the Job's material demand (i.e. add aty's to the
BOM) to account for any scrap. sounds like you are saying it is the
oposite - that the Job qty reduces. "I will have to test this", as my
consultant is fond of saying.

-Keith Walter

--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
Robert Brown <robertb_versa@...> wrote:
>
> Welcome to Vantage Keith. Behavior you described is 'as designed'
(ridiculously counterintuitive as it may seem).
>
> I've managed operations where this behavior might actually make sense.
You're specificy op scrap - IE LABOR scrap - simply to cost account for
a historically expected rework loop in, say, an assy OP - where no
material losses are really incurred. (Just as easy to factor that into
your cycle time without getting crazy about a labor scrap %.) Depending
upon how you have things tied to G/L (and what cost method you use), it
can impact financials. (Std cost parts would book a % labor scrap loss
upon job receipt to whatever account you set up.)
>
> Sounds like you would be better off applying scrap rate on the
material (and inflate you Min production qty used by MRP accordingly.)
>
> You also might want to consider setting up to utilize the Job Qty
Yield recalc process so actual reported OP losses ratchet down job qty
(remaining) expected accordingly. (Makes Job Completion must cleaner.)
>
> Rob Brown
>
>
>
>
> ________________________________





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