Production- How to define BOM & Routing ?

[Former Member]

Hi Experts,

Need your suggestions on the below scenario.

We have totally 4 operation - W, X , Y, Z.

Operation W - consuming one material to produce 10 materials (i.e. SFG's).

Operation X - 10 SFG's are consumed in the operation X, along with the 2 raw materials to produce is 4 materials/SFG.

Operation Y - 4 SFG's are consumed in the operation Y, along with the 3 raw materials to produce 4 materials/SFG.

Operation Z - 4 SFG's are consumed in the operation Z , along with the 10 raw materials to produce 1 FG.

Req: Needs to monitor the quantity consumed for each SFG and their production costs also.

Pls advise how to define the BOM and routing.

[Former Member]

Hi All,

Thanks for your prompt replies.

Pls note that, in 1st operation one material is consumed and producing 10 different materials/SFG's.

how to create BOM and Routing for this operation. here materials consumption and cost incurred to produce respective 10 - SFG's has to be captured.

Pls suggest

Thnks

[kiran_kumar179]

Sridhar,

Try with Co product concept create BOM for any 1 SFG then add Raw material for 261 movement type along with 9 different SFGs as Co products with negative quantity.

So that when you create order you can consume one Raw material and Receive 10 different SFGs in stock.

BR
KK

[shailesh_mishra5]

Dear Shridhar,

I am bit confused from your post. Are you going to confirm the op10 and receive the SFG in stock?

If yes, and it is applicable for other op also, then you have to make 4 Order types, no other option.

In 1 order type, you cannot get multiple SFG output in stock. Not possible.

Best regards

Shailesh

[Former Member]

Hi Shailesh,

Let me clear the concept in simple way

Operation : Cutting

Input : MS sheet - Single sheet 

Out Put: 10 no's of SF G's and all are different with each other.

Requirement - Needs to monitor inventory and cost of production for each SFG.

Now how to define the BOM ?

Regards

K. Sridhar

[Former Member]

Hi KK,

Then what about the cost part ?

In the co-product concept, the cost of the materials which are defined as co-products would be shared from the header item. So, I think co-product concept wouldn't suites for my concept.

Pls correct me if I am wrong.

Regards

K Sridhar

[shailesh_mishra5]

Dear Shridhar,

Best way to capture cost of each stage with Production order confirmation at each stage would suit your requirement.

Create different order types as per your stages

4 BOMs and 4 routings.

I was involved in implementation project of Leather factory where 7 stages invloved, we did create 7 Order types with different BOMS and routings if business wants to have stock visibility of each stage.

Best regards

Shailesh

[Former Member]

Hi Shailesh,

Please clear me, what happen if I would used the same order type for different SFGs with different BOMs & Routings, which are producing from one/same operation.

Why I am asking this is bcz, actually more than 50 SFG are producing from single operation using one raw material.

Pls suggest

Regards

K Sridhar

[shailesh_mishra5]

Dear Shrishar,

Lets wait for experts like Mr Rupesh and Mr Caetano for their reply.

In this case, I believe instead of creating 50 routings for different SFG for op-10, you need to create a Group routing and used Material Assignment in that.

Perhaps Trigger point concept can too be deployed here for reference operation set for all 50 SFgs

Please wait for our senior members reply.

Best regards

Shailesh

[Anupam1143]

Hi

It totally depends upon you business requirement, if you want to have inventory at each level and monitor planning and costs at every level, then you should have BOM and rounting at every level W, X, Y Z, but if you dont have any business requirement to have inventory at every stage then, you can define all raw materials in single BOM and with final out put as BOM header,All value you will get in WIP.

Again in last it is business call how they are going to have Planning and inventory.

Regards,

Anupam Sharma

[Former Member]

Hi,

Business required inventory and costing not only at the operational levels, but also required after every activity.

For example: 1st operation , producing 10 SFGs.

Here business require the qty of raw material consumed to produce 10 SFGs and what is the cost of production for each SFG also. Similarly for next operations X, Y, Z.

Now to define the 1st operation and in line with other operations

Thnks

[kiran_kumar179]

Sridhar,

I hope when you are talking about SFGs at  3 operations W,X and Y they are different material codes and You want to  receive the stock after each operation.

In this case you need to define 4 different BOMs and 4 Routings for each BOM level and Operations level.

Example if you take first level SFG lets say material A Base quantity is 10 in BOM and component quantity is 1 and Routing consist one operation called W.

Same way you need to define BOM and Routing for other 3 levels.

BR
KK

[shailesh_mishra5]

Dear Sridhar,

Since you want to have Output of materials at 4 different stages, then below points to be done

• You have to create 4 Order Types for each Work station.( ZP01, ZP02, ZP03, ZP04..etc)
• You have to create 4 different BOM and routing for each stages.
• Each stages needs to be confirmed so that preceding stage output becomes input for succeeding stage.

If you want to have 4 stages to be encapsulated in 1 order Type with 1 BOM and with 1 Routing, then you may use concept of Phantom Assembly to avoid Multiple Type Order Creation. But this is quite complex. In one of my client, I have done this but their process was quite simpler.

See the below link.

Why do you create SAP Production Order or Process Order - SAPs'WORD - We SAP For Your Cause

Best regards

Shailesh

[shailesh_mishra5]

Dear Sridhar,

Also read below links on Phantom assembly provided by SAP.

BOM Explosion with Phantom Assemblies - Material Requirements Planning (PP-MRP) - SAP Library

Also below statement, I am providing from SAP word which clearly says.

It is a know fact that every BOM Level is to be produced through separate production order or process orders. Though if you want to have 2 (assembly level and sub-assembly level) levels in the same order, you can declare the sub-assembly level as a phantom level, which would result in creating only one order for the assembly level while the sub-assembly level would be exploded in this production order as components and you would avoid creating the sub-assembly level order.

I have tried this concept and it worked wonderfully in one of my client.

Best regards

Shailesh

[Former Member]

Hi Silesh,

Why we need to create 4 order types ?

thnks

[kiran_kumar179]

Sridhar,

Different order types are not mandatory but 4 different BOMs and Routings are required to receive the stock at every single operation confirmation.

BR
KK

[Former Member]

Kiran,

For 4 operations 4 BOMs & Routings required that's right.

But regarding 1st operation, pls check my latest post.

Thnks