We have a multilevel BOM that requires the allocation to be seen all the way down the tree, but this is not happening and present.


Item E in colour Blue – Phantom (goes onto the sales order)

BOM Item D in Blue – Assembled Item (BOM of A & C) item D is despatched

BOM Item ‘Blue A’ (subcontracted manufactured)

BOM item ‘Galv A’ (subcontracted manufactured)

BOM item A (purchased)

Item A is purchased, it has a subcontracted operation to make it a Galv A.
Galv A has a subcontracted operation to make it a Blue A
Blue A is assembled with other parts to make item D
Item D is shipped out on the packing slip, item E is for sales order/pricing purpose only.

Our first problem is we don’t use Baan production subcontracting as we don’t invoice match and this gives us an issue when trying to close the production order. We use inventory transfers between warehouses so we have stock visibility we transfer item A and it comes back in as item Galv A etc..

When we raise a sales order and simulate the order we create a production order for item D, this in turn puts allocations against item Blue A but it stops there. We manually work out what is required of item A and then manually raise a purchase order if they are required.

Does anybody have a way around subcontracting/production orders and getting allocations all the way down to item A?? :confused:

Kind Regards,

Sandra P

Hi Sandra,

as far as I understand your problem you have the following structure:

E (phantom)
|
+- D (manufactured)
| |
| +-- Blue A (manufactured)
| |
| +--- Galv A (manufactured)
| |
| +---- A (purchased)
|
+- C (manufactured)

As soon as you raise a production order for D, a planned inventory transaction is generated for Blue A. This is standard functionality. Further demands all the way down the tree will be created when you run the MRP. It comes out with MRP-orders for item Galv A and A.
Did you run the MRP already? Make sure to have the low level codes updated before you do it (I'm not quite sure if that session is still available/necessary in Baan 5).

A question from my end in order to understand your problem completely: why do you have seperate items Blue A and Galv A? Is Galv A a kind of semi-manufactured item which is part of other BOM's as well?

Hope this helps.

Best regards,

Martin

Hi Martin,

Thanks for your reply.:)

Why do we have seperate items? item A is a length of metal this has a subcontracted process added to it of Galvanising this then makes item Galv A, this item then has a subcontracted process added to it of Colour coating making item Blue A. We need to be able to see what stock and where at any one time of each stage of the item and this is why we have set up 3 seperate items. Is there a better way??

We dont have MRP in baan 5 is that the same as simulating planned purchase/production orders? if so my problem is we cant use production subcontracting, so if we generated more production orders for these processes it just creates more work than is necessary.

Kind regards,

Sandra

Sandra,
upfront, your problem is not a specific subcontracting problem. If you need visibility for different warehouses (= your subcontractors) you can assign them for each level in the BOM.

If you need flexibility in the use of item Galv A, meaning you make a short-term decision of how to coat it (red or blue), your setup is ok. If you have a fixed flow through your (subcontracted) production, you may set up a routing with two operations:
1) galvanising
2) coating
This setup ensures tracking and tracing the quantities through the whole manufacturing process (think of rejections). Instead of monitoring the inventory for each item, you are going to look at the different stages in the production planning. You can do it either way, hard to say what fits best for your needs.

There is definitely an equivalent for the MRP in Baan 5. Unfortunately I don't know how it's called there :o .

Besat regards,

Martin

..if so my problem is we cant use production subcontracting, so if we generated more production orders for these processes it just creates more work than is necesarry..
Sandra,

I forgot to mention this: if you use only one item Blue A with a two operation routing, you will have only 1 production order (for Blue A), instead of 2 (for Blue A and Galv A). Maybe this solves your concern about unnecessary work in generating production orders.

Best regards,

Martin