BOM Co-products

Bill of Materials > Setup > Structures and Routings > BOM Co-products

BOM Co-products

You use this program to view and maintain co-products attached to a notional part or route structure.

BOM Co products

When you access the BOM Co-products program, a listview displays the co-products currently attached to the notional part.

Field	Description
File
Exit	Select this to exit the program. If the total cost apportionment for materials, labor and subcontract do not add up to 100% for all co-products, then the following message is displayed and you will not be able to exit the program: At least one apportionment percentage is zero. This must be apportioned manually. This means that a percentage must be defined against each of the Material, Labor and Subcontract fields before you can exit this program.
Edit
Add	Select this to add a co-product to the notional part.
Change	Select this to maintain the details of the co-product currently highlighted in the listview.
Delete	Select this to detach the co-product currently highlighted in the listview from the notional part.
Edit	Select this to use the Multimedia program to maintain multimedia objects attached to the co-product currently highlighted in the listview.
Detail Costs	Select this to apply a percentage of the costs for each component and operation (defined against the notional part) to the co-products. This option is only enabled if your Cost apportionment method is set to Detail (Setup Options).
Setup Options	Select this to define the properties to use for attaching co-products to notional parts.

Setup Options

This screen is displayed when you select Setup Options from the Edit menu. The options enable you to define the properties for the 'build' of the co-products.

Field

Description

Save

Select this to save the information you entered.

Select this to return to the previous screen.

Setup options

Type

Indicate the type of the co-product.

Field	Description
Concurrent	Select this if all co-products are completed only at the end of all operations. The due date for all concurrent co-products is the job finish date. If you select this option then you would typically not allow for multiple occurrences of the same co-product.
Sequential	Select this to be able to indicate which operation completes a co-product. Typically the co-products are not all completed at the same time in the production process. The due date for a sequential co-product is the operation completion date to which it is attached.
Proportional	Select this to define a quantity per of the notional part against each co-product together with the percentage of the total build (notional part) that each co-product makes up. For example: You are anodising two metal components. The surface area of Part A differs from the surface area of Part B in a ratio of 60:40 respectively. If you enter 1 per for each component, then the proportional percentage is 60% for Part A and 40% for Part B. You typically select this to provide more flexibility when creating jobs for 'mixes' of co-products
Multi-grade	Select this if the co-products you are manufacturing are graded. Typically, you are manufacturing a single product, but due to the production process (e.g. degradation in the materials used) all quantities of the finished product are not of the same grade (quality). This bill is used for costing purposes only and no job can be created for the notional part. The job is created for the principle co-product (usually the first grade finished product), but the structure and routing for the notional part is used in creating the job. The different grades of the product are typically accepted into stock using two stage receipting (inspection). You define the principal co-product by setting its Planning weight to 1 and allocating a Planning weight of 0 to the other co-products. The cost of each multi-grade item is the same, irrespective of the grade of the item, because each grade of the product requires exactly the same amount of material and labor to be produced. Multi-grade co-products are a mechanism to be able to apportion the manufacturing cost across multiple-grade items based on pre-determined percentages as opposed to having to setup and maintain a BOM Structure and Routing for each of the multi-grade items. Multi-grade co-products are not supported in the context of min/max levels in Inventory Optimization. An example of where a multi-grade setup is used is in the glass manufacturing industry. The objective is to manufacture A grade items, but as the oven cools, air bubbles are gradually introduced into the molten glass which causes B and even C grade items to be manufactured. There is a fairly standard percentage breakdown of how many A, B or C type items are manufactured in each run and so costs can be accurately calculated. When a job is created for a multi-grade co-product, a job is created for the principle item only - the co-products themselves are not created. To receipt in a multi-grade item, you need to have WIP inspection as it is then that you make the decision to grade each item as an A, B or C grade product.

Cost apportionment

Indicate how costs are apportioned for the co-product.

Field	Description
Simple	Select this to define (against each co-product) the percentages of the material, labor and subcontract operations to be taken from the notional part and applied to the co-product (similar to a proportional bill).
Detail	Select this to apportion the costs of the material allocations and operations for the notional part to each co-product. This is done by defining (against each co-product) the percentage of the cost of the materials, labor and subcontract operations that applies to the co-product.

Req planning period (days)

Enter the demand period the Requirements Calculation program must use to group co-product demand when calculating suggestions.

For example, if you enter 7, then the highest weighted demand is calculated for 7 day periods to determine which co-product is the driver for the notional part suggestions. If you enter 1, then daily buckets are used.

BOM Co-products

When you access the BOM Co-products program, a listview displays the co-products currently attached to the notional part.

Column	Description
Stock code	This indicates the code of the co-product item attached to the notional part. Only co-products can be attached to notional parts.
Description	This indicates the description for the co-product item code.

Column

Description

Stock code

This indicates the code of the co-product item attached to the notional part.

Only co-products can be attached to notional parts.

Description

This indicates the description for the co-product item code.

Co-product Maintenance

This screen is displayed when you select the Add or Change option from the Edit menu.

Field

Description

New

Select this to add a co-product to the notional part.

Delete

Select this to detach the co-product currently displayed from the notional part.

Save

Select this to save the details you entered.

Co-product line

This is automatically allocated by the system and cannot be changed. It is used to identify the co-product within the co-product/notional part structure.

Select this to return to the previous screen.

Add

Select this to add a co-product to the current notional part.

Co-products can be attached more than once to the same notional part/route for manufacture. This enables staged receipts of the same item.

When this option is deselected, the Co-product line field is enabled, which allows you to enter the co-product line number to maintain.

Co-product maintenance

Stock code

Enter the code of the co-product you want to attach to the notional part.

A co-product code can be defined multiple times against the same notional part, which enables staged receipts.

The stock code entered here must exist and be defined with the part category: Co-product (Stock Code Maintenance - Descriptive tab). In addition, the stock code cannot exist against any other method of manufacture on the current route.

Quantity per

Enter the quantity of the co-product you are making for each single quantity of one of the notional part produced.

This field is mandatory and cannot be zero.

Proportion of total

Enter the percentage of the total build that the co-product makes up.

This field is only enabled if the co-product type is set to Proportional (see Setup Options).

Operation offset

Enter the operation number that determines when the co-product is complete and can be receipted into stock.

The operation number must exist against the notional part on the current route.

If the co-product type is set to Concurrent (Setup Options), then your entry at this field is ignored by the system.

Optional co-product

Indicate whether or not the co-product must be manufactured at the time of creating a job for the notional part.

Select this if want to be able to exclude the co-product from the 'build' at the time of creating the job.


	If you select this option, then the materials and operations are reduced by the cost apportionment percentages.

If you do not select this option, then the co-product is always included in the 'build' at the time of creating the job (i.e. whenever a job for the notional part is created, the co-product will be manufactured).

Planning weighting

Indicate the level of importance of the co-product when raising demand.

The co-product with the highest planning weight is used to calculate the suggested quantity for the notional part.

The Advanced Trial Kitting (Legacy) program only recognizes co-products with a planning weight that is greater than zero.

For Multi-grade co-products, the planning weight must be defined as 1 for the principle co-product and 0 for all the other co-products.

Assigning a planning weight to each co-product enables you to avoid raising suggested jobs for less important co-products, resulting in excessive inventory of more expensive co-products.

For example:

You have two co-products attached to the same notional part. Co-product A is worth 2000 and co-product B is worth 1.50. Both co-products have a quantity per of 1 to the notional part.

You have a demand for 100 of co-product B but no demand for co-product A. If you raise a job for the notional part, you would make a value of 150 of co-product B, but would also produce a value of 200 000 of co-product A (100 of co-product A at 2000 each). In this case, you would not want to create any suggestions based on the demand for co-product B. To do this, you set the planning weight for co-product B to 0 and the planning weight of co-product A to 1. This may result in shortages of co-product B, but no excessive stock holding of co-product A as jobs for the notional part are only raised when there is a demand for co-product A.

Refer to Planning Weight Calculation for an example of how the planning weight is used to calculate the suggested quantities to make for a notional part job.

Cost apportionment percentages

The total cost apportionment percentages for all co-products must be 100%.

These percentages must be defined, irrespective of whether your Cost apportionment method is set to Detail (Setup Options).

Material

Enter the percentage of the cost of materials that applies to the co-product.

Labor

Enter the percentage of the cost of labor that applies to the co-product.

Subcontract

Enter the percentage of the cost of subcontract operations that applies to the co-product.

Apportionment percentage totals

This section is displayed for information purposes only and cannot be maintained.

Total material

This indicates the current cumulative material cost percentage apportioned to the co-products of the notional part.

Total labor

This indicates the current cumulative labor percentage apportioned to the co-products of the notional part.

Total subcontract

This indicates the current cumulative subcontract percentage apportioned to the co-products of the notional part.

Total quantity

This indicates the current cumulative quantity proportion.

Unit of measure

This indicates the unit of measure for the Total quantity.

Planning Weight Calculation

The following is an example of how the planning weight is used in the calculation of demand for a notional part.

A notional part with the following co-products is defined, together with their demand:

Co-product	Planning Weight	Quantity per	Demand	Co-product Cost
C	1	2	8	500
D	0	3	100	10

The co-product with the highest planning weight is used to calculate the suggested quantity to be make of the notional part.

The planning weight calculation is: co-product demand quantity x planning weight.

This results in the following:

Co-product C planning result = 8 x 1 = 8

Co-product D planning result = 100 x 0 = 0

Co-product C therefore drives the demand for the notional part even though the demand for co-product D is greater.

The notional part quantity to suggest is calculated as: Co-product with greatest planning result demand divided by co-product quantity per.

In this example, the notional part quantity to suggest is: 8 / 2 = 4. A notional job with a quantity to make of 4 will be suggested.

Detail Cost Apportionment

This screen is displayed when you select the Detail Costs option from the Edit menu.

The options enable you to apportion the cost of each component and operation defined against the notional part to each co-product.


If you do not apportion costs against an operation or component, then the cost percentages defined against the individual co-products are used when calculating apportionment costs of components and operations. Refer to Co-product Material and Labor Allocation for examples of how costs are apportioned to co-products.

If you do not apportion costs against an operation or component, then the cost percentages defined against the individual co-products are used when calculating apportionment costs of components and operations.

Refer to Co-product Material and Labor Allocation for examples of how costs are apportioned to co-products.

Field	Description
File
Exit	Select this to return to the previous screen.
Edit
Add	Select this to add a new cost apportionment.
Change	Select this to maintain the currently highlighted cost apportionment.
Delete	Select this to delete the currently highlighted cost apportionment.

Operations and Components

This treeview displays the operations and components for the notional part. The cost apportionment details for the item currently selected in the treeview are displayed in the listview.

Cost Apportionment

The information displayed in the listview corresponds to the item currently highlighted in the treeview.

The listview heading indicates whether the details are for an operation or a component.

Refer to Co-product Material and Labor Allocation for additional information.

Cost Apportionment

This screen is displayed when you select to Add or Change the cost apportionment for a component or operation.

Field	Description
Save	Select this to save the percentage apportionments allocated to the component/operation.
Co-product line	This indicates the co-product line for which you are maintaining cost the apportionment.
Close	Select this to return to the previous screen.
Detailed cost apportionment
Stock code	This indicates the code of the co-product.
Description	This indicates the description of the co-product.
Percentage	Enter the cost apportionment percentage for the co-product for the selected operation/component.
Total apportioned	This indicates the total apportionment for the components/operations. If this value is not 100% when you have completed the cost apportionments for the components/operations to the co-products, then the following message is displayed: The cost apportionment for the selected component/operation is not 100%. Do you want to balance the apportionment? If you select OK, then the apportionment of the attached co-products is proportionately raised to meet the 100% total required. For example: If you defined a 20% apportionment to each of four co-products for a specific component or operation, then selecting OK at the message prompt will cause the system to change the apportionment to 25% against each co-product for that operation or component.

Notes and warnings

Program access

This program can be accessed by:

selecting the Production - Co-products option from the Query menu of the Inventory Query program
selecting the Co-products option from the File menu of the Structures and Routings program

eSignature considerations

Electronic Signatures provide security access, transaction logging and event triggering. This enables you to increase control over your system changes.

Access to the following eSignature transactions within this program can be restricted at Operator, Group, Role or Company level. You configure this using the Electronic Signatures program.

eSignature Transaction	Description
BOM Co-product added	Controls access to the Add function in the BOM Co-products program.
BOM Co-product changed	Controls access to the Change function in the BOM Co-products program.
BOM Co-product deleted	Controls access to the Delete function in the BOM Co-products program.
BOM Maintain co-product options	Controls access to the maintenance of co-product options in the BOM Co-products program.