ERP system

10 pts.
Quality assurance
Quality control
Although this is not particularly ERP technical problam I would appreciate if some one can give me some idea to handle this situation. I am going to implement an ERP software to a manufacturing company. The problam I have is described bellow taking an example. this company produces a product called A and it going through 4 machineries to become a finished produict(all the raw materials are weighted itemsliek powders and up to machine 3 it comes as a weighted product, machine 4 convetr this powder to solid product which can be measured by no. of pieces.). so we can define the BOM, routing etc, accordingly. But let say after going through first 3 machines the product get rejected becouse of poor quality. but they do not scrap the product, they keep this rejected batch aside and once u get a batch of same product with good quality they add some amount of the rejected batch and continue this till they get rid of all rejected lot. so how can I work this out in a ERP system?

Answer Wiki

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Ok, I’ll take a stab. Have a separate product number for the rejected item and have alternate bom for the production product which include x% of the rejected item. As the product is being rejected, have a receipt transaction for the product.

This situation is common in some industries, so what I can share from my exprience is the following:

a) some ERP’s systems may be configured so you can have a different item after each machine process, you can configure it so the BOM of the next machines’ products includes both items, the quality accepted one and the “rejected”, but you will have to configure some bussines rules to be applied such as the costing process because you may have produced less products with the same amount of raw materials in machine 3 but you are going to use the sub-product anyway in machine 4, so a kind of credit value has to be made to machine’s 3 cost of production.

The use of the sub-product or “rejected” product will be reported as a deviation from the standard bom. This can later help in quality trasability.

My 2 cents

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  • RebeccaGill
    That is a very loaded question. While I would like to give you a cut and dry answer, I believe the response will be highly modified based on the ERP software in question. Rebecca Gill TGI
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