Bill of Material

[Muhammad Mudasar Ansari]

Hi all,

I need some suggestion regarding setup of BOM.
We are a pharmaceutical company.

We have defined a process having batch quantity of 10,000 and its ingridients using application "Enter / chagne process - P3003".

For this process, there will be only one co product, no by product is defined.
10,000 unit of co product will be produced at the end of this process.

In Leadtime inquiry - P30200 application, system is multiplying batch quantity with ingridient quantity to calculate extended quantity, for example

Batch Quantity = 10,000

Ingridient Qty
RMI0004 10kg

Extended Quantity = 100,000

which is not required. We have defined 10kg of RMI0004 to produce 10,000 unit in batch.

Please advise what wrong I am doing.

Regards,

Mudasar

 

[Sachin S]

A few suggestions/doubts -

Is there a specific reason why you would prefer to use a process mfg setup as opposed to a discrete one (since you do not have more than one output anyway) ? It will simplify the setups and the transactions too.

Coming to your issue, I suggest that unless you have a different PER UNIT quantity of a component based on the manufacturing batch size, do NOT use a batch bill (and similarly unless you have different PER UNIT hours in the routing based on the mfg size, do NOT use a batch routing.

If you still MUST use a batch bill, set the Fixed/Variable flag on the bill to 'F'. If it's 'V', the system will still extend the quantities by the Work Order quantity (as the V specifies that the quantity is a variable per unit quantity). Entering a batch bill does NOT mean that the quantities of components are for the batch quantity. It merely means that the particular bill is applicable for orders entered for the batch quantity. So you should either divide the quantity of RM (10kg) by the batch quantity and then enter it with a 'V' flag or enter the 10 kg with an 'F' flag.

I think this should take care of the issue.

 

[Muhammad Mudasar Ansari]

Hi Sachin,

Thank you very much for your kind suggestions.

I was really in doubt whether should I go for process manufacturing or discrete manufacturing. The only reason for considering process mfg setup is because pharmaceutical industry comes in category of process manufacturing.

None of our BOM produces more then one product, so it really sounds that I should go for discrete manufacturing setup.


Reason for using batch BOM
=======================
Our finished product produces in two steps
1) Produce the bulk material (syrup, injection, tablets etc)
2) Pack the bulk (bulk may be packed into commercial and sample packs)

Bulk material BOM should be produced in standard batch size because batch size tested and validated by Quality department.

Batch size of packaging BOM may vary when we have to pack bulk product both in commercial and sample pack.

I shall highly appreciate your suggestions

Kind regards,

Mudasar

 

[Sachin S]

Mudasar,

Most of my JDE implementation experience has also been in the pharmaceutical industry and we have never used process manufacturing at any of those sites. So, if as you say you do NOT have multiple outputs per process, I would strongly recommend using discrete manufacturing.

Coming to the BOM design, most pharma cos manufacture bulk chemicals and then pack them into different packings. I understand that batch size would be validated and hence be a constraint on the actual manufacturing size. But that does NOT mean that batch bills need to be entered in JDE (unless a specific regulatory authority has instructed doing so). To illustrate the use of a batch bill, consider a finished product that uses 100 KG of a raw material when produced in a 400 KG batch, but uses 60 KG of the same RM, when produced in a 200 KG batch. As you can see, the per unit quantities (.25 and .3) of the RM are different based on the batch size. This is not a common occurence and would almost never occur for ingredients going into the product. But there could be materials like cleaning agents, consumables etc. which could exhibit this property. In such cases, the only way to set up the bill correctly is by using two different batch bills. If the ratio of the finished product to the raw material quantity remains the same, I don't see why you should have to use batch bills.

This is my understanding, would like to hear thoughts from others.

 

[Muhammad Mudasar Ansari]

What should be the values of following fileds on BOM in my scneario, we are not using Kit configuration. Our manufacuring environment is is Make To Stock

Feature Plan %:
Feature Cost %
Partial Allows
Default Component

 

[Muhammad Mudasar Ansari]

What should be the values of following fileds on BOM in my scneario, we are not using Kit configuration. Our manufacuring environment is is Make To Stock

Feature Plan %:
Feature Cost %
Partial Allows
Default Component

Regards,