on 09-16-2008 11:12 AM
I need to show a scrap allowance of 1% in the standard cost without affecting the MRP quantities required. Does anyone know how to do this?
We have tried the conventional component, operation and assembly scrap. They all meet the required standard cost and variance analysis but unfortunately they impact the qty on the PP side.
We have tried conventional overhead mechanisms, but these do not meet the variance analysis requirement.
Hi,
Actually we are maintaining 3 types of scrap.
1. Assembly scrap.
2. Component scrap.
3. Operation scrap.
Based on the process criticality scrap % is maintained. Based on the scrap % the MRP will plan the components. In BOM we are maintaining the base qty, for that base qty we are maintaining the item qty. Based on the costing lot size the system will consider the scrap % also. Without the scrap % we can't produce. If you want scrap % should be eliminated means you can maintain the costing BOM, in Costing BOM you can remove the scrap % in BOM level, means component scrap & operation scrap. But assembly scrap is taken from material master you can't control. In MRP-4 view, component scrap can be maintained, instead of this you can maintain in BOM level. This you maintain in BOM level, the first priority has given for BOM only.
Regards,
V. Suresh
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Hi,
Production BOM only will consider for the production order, also while doing the cost estimation for production BOM your PP planning activity will be affected by including the scrap. But without scrap qty you can't manufacture. SAP gives the solution that, at any particular, need to fulfill the requirement without fail. For that purpose only we are depending SAP. If in your process there is no scrap means, you need not maintain the scrap percentage.
To know the cost of the material you can use the Costing bom, and the same can be used for costing purpose.
In variance analysis, we are comparing the actuals with the planned material qty and cost. If any particular operation incurring lot of scrap means you need to work alternate solutions to develop that particular operation and try to reduce the scrap. This way we need to analyse the variances.
Regards,
V. Suresh
I must have scrap included in the standard price, it cannot effect the planned qty.
I have put the scrap % on a costing sheet and will change the output report definition from Resource Usage Variance to Scrap Variance with an ABAP enhancement.
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