co-product scenario with variable production based on forecast

[01diego]

Situation:

In process industry a liquid blend is prepared that is common to several finished goods (FG) materials. The difference between the FGs is that the total volume of liquid in each FG is different. Each of the FG has a forecast and is filled in a different resource but depending on resources availability one ore more FG can be filled simultaneously out of the same blend. One way of doing it is by creating separate process orders for the blend and process orders for the filling of each FG. When I read about the concept of co-production, it describes that is applicable when more than one product is being produced, which seems to fit for this case.

We have tried to create a Process Material with the FGs added as co-products and would like to combine the MRP planned orders requirements for the several FG into the quantity of the process material and split the cost allocation proportionally to the required quantity of each FG, but the only way we can do it is by manually creating the order for the process material. Is this something that can be done automatically as part of the MRP process? Or is there a better way to do it? The advantage we see of using this approach is that one process order would be required to complete the blending and all possible filling operations instead of creating/planning/scheduling/releasing/closing separate orders.

I appreciate your input and/or ideas.

[svs_sap]

Hello,

Please have a look of comments here and hope these will help you:

As you mentioned "concept of co-production, it describes that is applicable when more than one product is being produced" - this is little worrisome. Please look at SAP definition "A co-product is a product that is produced in conjunction with other products. The system creates a separate order item in the production order for each co-product." It means, you can't avoid a co-product when you produce the main product and it is part of that production every time.

SAP Help Link :

https://help.sap.com/viewer/c06d6cb63eb244dfa60d606db2cae9fa/6.00.29/en-US/af04b753128eb44ce10000000...

We have tried to create a Process Material with the FGs added as co-products : Don't you track FG production separately to capture it's component cost, operation cost etc. Also from logistics / sales point of view. If you make FG as co-product then you will not get cost structure properly and impacts your FG costing also.

MRP planned orders requirements for the several FG into the quantity of the process material: You can not combine demand of FG planned order as co product in process material and get it added to quantity of process material

Is this something that can be done automatically as part of the MRP process? - No

Or is there a better way to do it? - Yes. You need to track the Blend with a batch. And if possible integrate your flow meter quantity value with MES in integration to SAP to update Blend usage in FG order. If no MES used, then manually track liquid flow and update the quantity in orders. Measurement is little challenging in blend tanks, but can be achieved with permissible tolerances and wastage.

adjust blend quantity in tank post discharge of quantity to FG lines as per practical measurement. Always keep Blend stock updated with it's characteristics if quantity / volume changes due to it's properties and other factors like temp etc.

Regards,

Sharat

[svs_sap]

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