We make extra parts on a regular basis to cover for scrapped pieces
in the production trail. We don't put these in invertory at zero cost
because we look for zero cost errors. We put them in at less than
$0.001. That makes most of the cost follow the shippment. If the
parts are sold the profit margin is huge but not when averaged. If
the parts are pitched there is no real value lost.
For us it is a manual process. The order is looked at. If it is a
blanket order the parts go into inventory at cost. We did consider
srapping extra pieces in the job but that effected quality costs.
IS Manager
Weaver Industries, Inc.
717 336 7507 phone
717 336 4182 fax
rdover@...
www.weaverind.com
in the production trail. We don't put these in invertory at zero cost
because we look for zero cost errors. We put them in at less than
$0.001. That makes most of the cost follow the shippment. If the
parts are sold the profit margin is huge but not when averaged. If
the parts are pitched there is no real value lost.
For us it is a manual process. The order is looked at. If it is a
blanket order the parts go into inventory at cost. We did consider
srapping extra pieces in the job but that effected quality costs.
> Not much activity today. Curious how other companies deal withRuss Dover
> production
> over-runs. I hate to have to add a part to inventory each time we
> have some
> left over but can not really think of another way. This occurs on
> our build
> to print items that may not be purchased again for another year if at
> all.
> What do we do with these parts? We charge all costs to the parts
> that ship
> from the job so these become zero cost items. Any suggestions? It
> would be
> nice if you could just ship from a closed job these remaining pieces.
>
>
> Thanks,
>
> Darren Mann
> Miller Products Co.
>
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IS Manager
Weaver Industries, Inc.
717 336 7507 phone
717 336 4182 fax
rdover@...
www.weaverind.com