1. In SAP, several finished products (packed-printed closures) utilize the same semi-finished product (molded closure). Finished products will be planned based on re-order point planning. The semi finished product will be planned based on dependent requirements generated. The semi finished product will have a monthly lot size so that a single production order will be created for an entire month. The quantity of this production order will be adjusted such that it will be able to fulfill the entire month’s requirements. That is, if required, the Production Planner may change the quantity of the production order to fulfill the entire month’s requirements before releasing the production order. Production will be controlled on this semi finished product by pausing production as and when required based on the demand of finished goods. In SAP this will be achieved by turning OFF (or zeroing out) the available shift hours for the work centers producing the semi-finished (molded closure). The work centers that produce semi finished goods are controlled by the planner that plans the finished products (packed-printed closures).
2. Confirmations for the finished goods will be done real time with the help of a scanning interface. Along with confirmations, automatic Goods Receipt will also happen. Also, at the time of Confirmation Goods Issue of the materials required to create the finished goods (semi-finished molded closures) will take place through Back flushing. If there is insufficient material on hand COGIs will be created for the molded closures.
3. Confirmations for the semi-finished materials (molded closures) will also be done through a scanning interface. However, the confirmation of the molded closures may be delayed by 24 - 36 hours. The confirmations trigger an automatic Goods Receipt of the molded components & an automatic Goods Issue of the molded closure components through Back flushing.
4. When COGIs are cleared for the finished materials, the confirmed molded closures are consumed. Since confirmation of the finished goods take place real time & consumption of the molded components take place with a 24 – 36 hr time lag, COGI’s are continuously created.
5. To eliminate this issue, if COGI’s are not cleared for the first few days, inventory will build up for molded closures. When sufficient inventory of molded closures build up, & confirmations are performed for the Packed-Printed Closures, there would now be materials available for consumption during Back flushing. Hence, COGI’s will no longer be produced.
6. This leaves only COGI’s created for the initial few days to be cleared. COGI’s for these initial days can then be cleared at the end of the month when stock of molded closures would be available.
(** Does this procedure create any issues ??? Check for issues with reservations created by the finished product on the semi-finished product & how FICO could be affected ***)
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