hi,

i need some advice on whats the best way to handle this kind of scenario.

given a level0 assembly end item = A1

the level1 semi finish item = B1 will be cut and the balance length (B2) will be use for assembly end item A2

thanks

regards
alexlow

Try this :
Parent=A1
Children=B1 with appropriate Net qty. + B2 with appropriate (-ve) net qty.
Whenever you report A1, B1 gets backflushed & warehouse gets replenished with net qty. of B2.

Parent=A2
Child=B2 with appropriate net qty.
When you report A2, B2 (which was generated due to reporting of A1 ) gets backflushed.

Hi,
What is the implication to costing. The costing should include only B1, but I think with negative line in BOM it may result in B1-B2 in the costing. To mee it seems that when we produce B1, we also produce B2. So whenever a production order is created for B1, we also need to create a production order for B2 (both of them are subassemblies) and they can consume one raw material say C1. This will though require customization. This may be another approach.

Arvind Patil

Hi,
What is the implication to costing. The costing should include only B1, but I think with negative line in BOM it may result in B1-B2 in the costing.
Arvind Patil

Costing of A1 = B1 + B2; B2 being -ve, it works out to B1-B2, which is correct.

Hi,
To mee it seems that when we produce B1, we also produce B2.
Arvind Patil

I think we are producing A1 & A2...

Hi,
So whenever a production order is created for B1, we also need to create a production order for B2 (both of them are subassemblies) and they can consume one raw material say C1. This will though require customization. This may be another approach.
Arvind Patil

No need to create production order for B2, if there is no other operation/process/task/work ( value addition ) related to making B2. In case there is, better to include that in routing of A2. Decision depends on requirement of the user.

Hi,
This will though require customization. This may be another approach.
Arvind Patil
IMO this can be handled by standard BOM structure ( if required ).

yes, we producing A1 & A2

is right we don't create a production order for B2 that will be use to assembly end item A2.

because the item b2 does not exist during production until after been issued
C1 - B1 = B2

we assume A1 & A2 will be release to production at same time.

if i create B2 code as phantom item, what will be the implication?

yes, we producing A1 & A2

is right we don't create a production order for B2 that will be use to assembly end item A2.

because the item b2 does not exist during production until after been issued
C1 - B1 = B2

we assume A1 & A2 will be release to production at same time.

if i create B2 code as phantom item, what will be the implication?

Not very sure !!
IMO, your inventory of B2 will keep on increasing as long as you report production of A1. However, it will never reduce !! This is because it will never get backflushed when u report A2. Reason = B2 i a phantom item.

Why do want to make B2 as a antom Item ?
You should always use reality for reference. Whatever you do in reality should be mirrored in BaaN. That way, you will never make a mistake.

if i use phantom item for B1 (subsequent B2 , even B3 ) without phantom inventory. than inv won't increase and yet able allow sfc/ep to have list of information need to carry out the work.

if i use phantom inventory, when backflush i can track scrap and simplified ep side. (why use ? because actual B2 or even B3 to be use on other A end item will only be know during actual production )

Dear Alexlow > Forgive me, but I basically didn't understand your point in this post !!!

sorry, this construction industry mfg is bit tricky unlike the other industry deal before. so i'm bit lost and need more advice.

they assembly A1, A2, A3 end item , which is curtain walling frames.

they manufact the frame profile C1. example in fix length of 8000mm

they cut it to B1 (4000mm) for A1 use,
balance 4000mm they cut it again to produce B2 (3000mm) for A2,
and again B3 (500mm) for A3. Balance 500mm as scrap (X)

when i roll up the bom, the combine material require for C1 will be much lower. system combine C1,C2,C3 up before it divide back for B level requirement. there will be shortage.

(without considering the fact that left over cannot be use, scrap factor is different for every C item as you can see from above case)

this is the scenario i looking at. is not one to one component relationship.

I would prefer to have Baan setup as given below :

All assemblies A1, A2, A3... should be created with child as B1 in ALL BOMs of A1, A2, A3 etc.

Let 1000mm of B1 be consumed in A1 , 1200mm in A2, 800mm in A3 etc.

For example, when you have 4000mm of B1 in WIP inventory, it will get backflushed as per net qty mentioned in BOM, whenever you report production of A1, A2, A3 etc.

Balance qty of B1 will be shown in inventory of the Warehouse. Whenever decision is taken to actually scrap the balance qty of scrap pieces , you can transfer the qty of B1 from WIP warehouse to scrap warehouse using "Enter inventory transactions by item". Then you should do Inventory Cycle Counting to correct inventory of the WIP warehouse. This will take care of the error because of scrap generated due the cutting process & other minor inventory variances.

Till you decided to scrap the leftover pieces, you will have a problem of WIP inventory becoming high due to large number of unusable pieces in inventory.
Inventory will be high but you will not able to use it !! Pls. remember that THIS IS CORRECT !! It means that BaaN is correctly reporting to the user that he is loosing a lot of money in scrap !! The solution to this problem is beyond the scope of BaaN & the Planning guy. It is upto the business owner whether to ignore this problem or to find a technical solution in order to utilise the scrap & generate profits !!

Typical solutions to this kind of problems ( high unusable inventory ) require use of a different methodology which many people call as Lean Manufacturing. Refer to www.leanboard.com or www.lean.org. Pls. remember that there is no need for you as a BaaN guy to refer to these sites. However, you have nothing to loose but everything to gain ( lean thinking changed my life ! ). PM me if you want more details.

Hi alex

Do you use LN on this case?
I think you can try to learn about Unit Effectivity.

thanks baangod for the lean mfg forum link, this is something i should look into.

For the case on the BOM,
Material issued C - Finish Goods A = B Phantom Inv Quantity , will need some customize, compute the figure and final decisionn what to do with it still the business owner like what you said.

MAUC costing method are used and luckily enough in metal industry we can use conversion to calculate by kg basis and accurate figure to offset.

Hi jenny,

yes, i'm using LN.

eu i can say is a creative idea but soon enough after try out last time i found out some limitation. eu code & description are force unique. so if your item code is complicated, it will make things far worst than it actually help.

pegging information is base on eu code, when orders increase for the same eu code, tracebility you going to have issue as it lums up togather. since LN FP3, ep provide new pegging function that works far much more better than eu pegging does. look for table tcprrp041 & tcprrp040, this what i use to create wonderful cognos analysis reports.

bom, routing and costing, the planner must be very well verse in eu which most of the time won't be the case, any mistake will end up with disaster rolling up wrong costing and planning information.

anyhow this my opinion, please do correct me if i'm wrong.


Hi alex

Do you use LN on this case?
I think you can try to learn about Unit Effectivity.