Torey
Member
Is there anyway to include a fixed scrap at a work order level that will account for usage (without a standard run size assumption) and somehow be represented in the cost of the item number?
We have a coating process where we coat resin on fiberglass. The BOM for the part number consists of the resin mix in lbs and fiberglass in yards. At the end of a run we have leftover resin that cannot be used and is thrown away, however since the material is expensive we want to capture the cost in the item number cost rather than operating expenses. We currently assume a standard run size and add a variable amount to the resin item number in the BOM however if the run sizes are greater or smaller than the standard we get large usage variances.
I tried to include a fixed cost in resin mix BOM such that every time a resin mix was made there would be a fixed amount allotted to scrap. This did not work, the costs went up drastically because at the unit level it is saying for example that 1 lb of resin needs 20 lbs of scrap. This is not the case but when we make a work order for 500 lbs of resin then the 20 lbs seems reasonable.
Not sure if this forum is the right place but any help is appreciated
We have a coating process where we coat resin on fiberglass. The BOM for the part number consists of the resin mix in lbs and fiberglass in yards. At the end of a run we have leftover resin that cannot be used and is thrown away, however since the material is expensive we want to capture the cost in the item number cost rather than operating expenses. We currently assume a standard run size and add a variable amount to the resin item number in the BOM however if the run sizes are greater or smaller than the standard we get large usage variances.
I tried to include a fixed cost in resin mix BOM such that every time a resin mix was made there would be a fixed amount allotted to scrap. This did not work, the costs went up drastically because at the unit level it is saying for example that 1 lb of resin needs 20 lbs of scrap. This is not the case but when we make a work order for 500 lbs of resin then the 20 lbs seems reasonable.
Not sure if this forum is the right place but any help is appreciated
