Objective
You can calculate and plan the scrap quantity that will result from production. You can then include these scrap quantities in the planning run and the calculation of production costs. The calculation that the system uses depends on the settings in the material master record, the BOM, or the routing. The scrap quantity is settled against the net requirements quantity. Scrap is used for material requirements planning (MRP) and product costing.
You use the assembly scrap function to plan for the scrap which results from the production of an assembly. Assembly scrap increases the order quantity of the assembly and, subsequently, increases the order quantity for each component in the BOM of the assembly by adjusting the quantity of the dependent requirements generated during the MRP run.
The system automatically increases the quantity to be produced by the scrap percentage. However, the system always uses the estimated yield for the availability calculation for the assembly. Furthermore, the MRP list or the stock/requirement list always displays the estimated yield of the assembly.
Assembly scrap is used only when the material is an assembly. Reasons for assembly scrap include: inadequate quality, or bad working conditions, such as heat, cold, or dampness.
You use the component scrap function to plan the scrap of a component that may break while an assembly is being produced.
You can define component scrap in two places:
The component scrap quantity maintained for a material component in the BOM has the higher priority. Component scrap increases the dependent requirements quantity of the component. If a scrap quantity is planned for a higher-level assembly, both the assembly scrap and component scrap are added to the component level.
Component scrap relates only to the individual components in an assembly. When the BOM is exploded, the system increases only the component quantity by the calculated scrap quantity.
Before you build high-value components into an assembly, your manufacturing process may require a quality control check of the assembly. Faulty materials which were taken into account in assembly scrap are not passed on to the next operation; instead, they are removed from the manufacturing process. Therefore, for a high-value component, you plan to use operation scrap instead of general assembly scrap. This scrap quantity refers to the quantity of one component that you need to process in an operation. The planning run is more exact and you can determine service and quantity consumption more precisely.
If an assembly contains the component for which an assembly scrap quantity has been maintained, the system takes only the operation scrap into account. The net indicator instructs the system to calculate the component operation scrap without taking assembly scrap into account (net usage scrap). You should also set the net indicator if operation scrap is not maintained and assembly scrap is entered. However, the assembly scrap should not be taken into account.
This operation scrap in the BOM relates to the quantity of a component to be processed in an assembly. The value entered for scrap replaces the estimated assembly scrap for the high-quality materials and allows for more precise MRP. The net indicator controls the operation scrap for components and is calculated without taking into account the assembly scrap (net input quantity). You still have to set this indicator if no operation scrap is maintained and the assembly scrap is not taken into account.
Operation scrap in the operation results in a fall in quantity in the next operation, and is taken into consideration in scheduling and costing. The scrap percentage maintained in the operations is added to the material master with the scheduling update.
Log in to track your progress & complete quizzes