Co‑products/By‑products
This chapter describes how to use the system to manage processes that create more than one product. Topics related to material requirements planning (MRP) and work orders for co‑products and by‑products are also discussed.
Introduction to Co-products/By-productsLists and describes co- and by-product features and gives information on how to implement and manage co- and by-products.
OverviewOutlines how co- and by-products are created, lists the features of base processes, and gives workflows for co- and by-products.
Setting Up a Co/By-product OperationIncludes a workflow and detailed instructions on setting up mix variance accounts, sites and locations, work centers, product lines, item status codes for base process items, base process items, items for co- and by-products, co- and by-product structures, recyclable by-product structures, unit of measure conversion factors, alternate base processes, alternate base process routings, and definitions for valid substitute items.
Calculating Costs and Lead TimesExplains how to allocate costs to co-products, enter by-product costs, freeze by-product costs, roll up costs, calculate average costs for co-products, define average cost allocation methods, conduct average cost accounting, roll up lead times, and review product costs.
MRP for Co-products/By-productsDescribes how MRP handles co- and by-products by planning for each type in different ways, planning for base processes, reviewing, updating, and reporting action messages, approving planned work orders, creating planned order reports and MRP summary reports, and identifying the source of demand for co-products.
Managing Joint Work Order SetsLists the contents of a joint order set and describes typical steps for managing joint work order sets, including how to access and modify joint order sets, create joint order sets from alternate base processes, review, print, release, receive, scrap, and backflush joint order sets and how to handle receiving unplanned items, processing shop floor control transactions and joint orders at work order close, deleting and archiving joint orders, tracing lots, and accounting for joint orders.
RestrictionsDiscusses restrictions on inventory, purchasing, and repetitive.
Introduction to Co-products/By-products
The system provides a special set of features for managing processes that create more than one product. Such products are referred to as co‑products or by-products. Processes that create only one product are supported by regular bills of material (BOM) and formulas.
Co-product/By-product features support a variety of manufacturing operations, including:
Batch processing. Production of items by mixing, blending, and refining component ingredients, such as pharmaceuticals, processed foods, and wine.
Sorting. Separation of items by characteristics such as size, weight, or quality, such as clothing, computer chips, and produce.
Disassembly. Separation of items from larger items, such as juice and seeds from oranges.
Molding. Production of items using multiple-cavity molds such as plastics and confections.
Features include support for MRP, work orders, shop floor control, and costing, as well as tools for setting up items, structures, and routings. Great flexibility is provided in defining alternate products structures and routings. As a result, perhaps even more than with regular processes, careful planning is critical.
Implementing and managing co-products/by-products involves:
• Setting up an operation for co-products and by-products
• Developing standard and simulation costs
• Implementing material requirements planning (MRP)
• Managing the work order life cycle for the related products