cancel
Showing results for 
Search instead for 
Did you mean: 

Business Scenerio Solution

Former Member
0 Kudos

Dear experts,

Please provide me solution of given scenario-

Here we are involve in power projects (electrifications of different feeders) for that we are procuring all the material from third party excepting trasformer

we are doing inhouse production of transformer . after the production we send this material to project stock then we send these to client site for insalltaion

Third party material first send to the project stock on the behalf of client then send to the client site for installation .

Solution according to me -

1.Make BOM of sales order items and assign to the activites.

2.at the time of Explosion of BOM ,reservaton is make aoutomatically

3.check the availabilty of material in project stock

4.MRP run...and decide which material is procured from third party for that third party requisition will be made here.

for inhouse item pland orer is made ref to that production order is made.

Now questions are-

1.how much feasible is my solution

2.how can control the cost of item for wich we are doing production

3.can we check availabilty project stock wise .if yes , how?

4. Can We make BOM for third party material.

Regards

SMITH

Thnaks in advance

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
0 Kudos

solved

Former Member
0 Kudos

Hi,

1. Your inhouse transformer cost will be accounted to the project if the Production costing is done correctly for PP order to produce one end product. Transformer will be Material in MM. So all the cost related to production of 1 transformer from PP order will be accounnted to it.

2. By Third party Material do you mean materials procured from outside? You can maintain a Material BOM for this like a production BOM.

Regards,

ramesh

Former Member
0 Kudos

Hi Ramesh

I have also got same kind of scenario but a little bit difference in that.

My client handles projects and have BOMs, which includes their in-house produced component like switchgear and bought out items , may be some small component like bushes,spring for switchgear. They will assemble and then send it to customer site for installation.

They consider BOM as a complete package of product.

My question is that-

1) How can they control the cost of in-house produced item?

2) They will not be in favour of making different for in-house and bough-out items. Then what to do in this case?

3) Most important: Suppose in a BOM for one Project, they don't get their in-house produced component such as relay(which they had quoted in bidding,) and wanted to take this relay(specifications may differ a little) from some outside vendor. They want to maintain the same cost and dont want to make a new BOM for the product.

My question is how to control the cost and how same BOM can be used.

Pls. help me in this.

pallavi

Former Member
0 Kudos

Hi Pallavi,

They can use the BOM which is the standard case (comprising of Inhouse switchgear, externel components) which will result in the planned cost for the project.

But during the course of the project, it is always possible that different materials are used which will result in different costs than the planned ones. This is a valid condition when and its necessary to track what was planned and what are the actuals.

You may not create this material in MM but procure them cost assigned to the project as non stcok items.

You can use ECP tool to plan project costs in multiple planned cost versions.

Regards,

Ramesh-