2 weeks ago
Hello,
I need your support, because I think that we use SAP system in the wrong way. The post refers to costing lot size, lot size variance and order planning.
For an exemplary product, we set 4 hours as setup time in the recipe and 30.000 ea as costing lot size in material master (costing 1). When we create the production plan, we split a run in several production orders that are processed one after the other. For example: PO 1 = 10.000 ea, PO 2 = 10.000 ea, PO 3 = 10.000 ea, run size = 30.000 ea. During production, we confirm 4 setup hours for PO 1 and 0 setup hours for PO 2 and 3.
When we check the cost analysis after period settlement, each PO has a target quantity of 4 hours for setup. Therefore, we receive a lot size variance for each PO.
For understanding, we need 4 hours to set up the machine for the product. A run can take several days which is why we split it into several POs. Otherwise we have to wait till the end of the run to release and ship the product.
Question: What are we doing wrong or what do we need to change to avoid lot size variance?
Feel free to ask if you need further information for understanding.
Regards
Tony
Hi,
It is possible to record production order confirmation (CO11N) in multiple days or shifts for the same order. You can record the proportionate goods issues with 'backflush' and good receipts with 'auto GR' functionality (standard operation control key PP03)
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