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SO-Production Order Link and Quantities Completed Issue

  • 27 September 2023
  • 2 replies
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My client is a job shop manufacturer so all production orders are linked to a sales order. They manufacture items that are cut from blank sheets and vary in size. They use an external application to optimize their cuts and limit the amount of scrap because once a blank sheet gets cut it cannot be used again. Sometimes their optimization software tells them to produce more than is needed on the SO. The client deals in delicate material so scrap from breakage is a common occurrence. In each job they need to at least produce the quantity ordered and sometimes this can be absorbed due to the excess produced (based on their optimization software). Sometimes it cannot and they need to manufacture a replacement. For this reason the Include Scrap in Completions is selected in production preferences since it is a more straightforward path. The client would prefer to issue another workorder for the replacement item but this is causing issues with shipping. Materials are not backflushed and in most cases, issued in the first operation.

 

For example:

Customer ordered 5 items and a production order is created for 5 items.

Prior to releasing the production order, the optimization software suggests manufacturing 6 items

Change the work order quantity to 6

During production, 2 items are lost to breakage so 1 additional item must be manufactured to meet the customer order of 5 items

What is the best way to produce the additional item? Client would like to create a new production order for the additional item for routing purposes however this causes an issue on the sales order side with the original linked order only showing 4 allocated to ship. I tried adding another line to the SO for the single item but it I am unable to ship it.

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Best answer by frankfiorentino81 27 September 2023, 22:57

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Based on the above scenario, I would modify the production order and add the additional routing operations to the original production order tied to the sales order and add the additional material needed to complete the short quantity due to lost quantity to breakage, etc.  Operation numbers can be placed in between established “standard” routings or added to the end to differentiate the process.  Technically the production order calls for 6 based on optimization and the sales order calls for 5.  SOP is to issue the additional material required to complete the quantity the production order requires.  Optional is to add additional routing operations to account for this.  Based on the scenario, there are multiple routing operations, meaning one cannot be 100% complete if two are lost in breakage.  Therefore, the op that is short requires additional material to complete to equal 100% (quantity 6) and could be the op that the material is placed under for issuing.  

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@cjchunn I just realized I had a type. The include scrap in completions is selected in Production Preferences so there is no reason to add extra items unless breakage falls below customer order quantity. Having the ‘normal’ functionality be Qty to Produce = Qty Completed + Qty Scrapped is the clients chosen path.

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