[Jake Milford]

Hi All,

Have a couple of questions that I would like other’s advice on. 

1. The BOM quantity that the from/standard order quantity that we have set for our items that we manufacture is not the actual quantity good quantity – its the theoretical batch size.  I’m at a bit of a loss on how to factor this in for planned production orders. We remove this quantity through error quantity on the route card today.
2. Our manufacturing process is short. The finished good is manufactured in one day, but we have testing that takes roughly 17 days on most items.  I’m not sure the best way to incorporate this in to where MRP won’t expect the finished quantity until 17 days after its produced.  I had tried incorporating the 17 days into the route, but then it seems to throw off your delivery (manufacturing date) because it doesn’t think the item is produced until the end.
3. Sellable days – My belief is that MRP should factor in the sellable days and expire batches prior to their expiration date when Consider shelf life is checked.  But I get a little lost here because sellable days are set on a customer and without a customer being known in MRP – how does it know the items can’t be sold (example five days prior to expiration date).  Granted we have this set for all customers. Needless to say I only see the quantity being removed on the expiration date of the batch.

#AX2012
#SupplyChain??????

——————————
Jake
AX 2012 R3 CU 10
——————————

[Chan Stevens]

1–“planning” for production variances is an oxymoron. In theory there’s no difference between plans and reality, but in reality…Now if there’s some yield factor that’s typical, or you want to reflect some conservative hedge for loss, you can incorporate those into part parameter or BOM lines for yield. In terms of actual, though, that’s what shop floor reporting, job/route cards are for, and this also helps insure that financially things are cleaned up–inventory costs relieved, losses posted to expense accounts, etc.

2–MRP will plan on production being onhand/available when the routing operations/jobs are done. If your 17-day test includes any “value add” (direct) activity, then it should be a second operation on the route with run time and presumably a whole lot of either queue (before) or wait (after) time. If it’s non-value add, and your description is accurate, then I’d guess you’ve blown it by tacking 17 days onto the first/only op as queue, and it should be wait time instead.

3–Sounds like you should simply be using shelf life on the inventory lots, not sellable days. If a lot is going to expire, and there is any type of demand (sales order, safety stock, etc.) it will drive to replenish. The trouble comes where either the expiration is retest/extendable where it can be tricky to plan for that, or when the replenishment leadtime is longer than whatever you enforce on customers, meaning that if there’s no demand, the material expires and is not replenished, then a sales order shows up the next day with short leadtime, but you need 17 days to replenish.

——————————
Chan Stevens
Industry consultant
Cincom Systems
Cincinnati OH
——————————
——————————————-

[Shelby Wright]

?Jake:

As an alternative to using the route operation, if for some reason you want the inventory reported out of production, but still not usable for the 17 days testing, you could implement quality orders and have the quality order generate on receipt from the production order.  (There is a lot there to explore, but it is a valid option.)  Then the inventory is trackable, you know it is in a quality process, but it is not showing in the production process. 

MRP is a complex beast: if you don’t have a specific list of requirements and tests you are tracking, I would strongly suggest pausing to do that. Tools don’t always do what is expected from the descriptions. 🙂

Good luck!

Shelby

——————————
Shelby Wright
Sr. ERP Business Analyst
Leatherman Tool Group
Portland OR
——————————
——————————————-

[Ryner Rolinski]

For the 17 day testing delay, you could also consider using an issue or receipt safety margin in a separate coverage group. That would create a delay between the receipt date of production and the ship date of the sales order.

——————————
Ryner Rolinski
Solutions Manager
BDO Canada LLP
Picton ON
——————————
——————————————-