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Over-pick materials for production orders and batch orders - incorrect NET requirements

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Posted on by Krzysztof Kierzkowski 23
Hi fellow community members,
We are experiencing strange system bahaviour since we enabled overpicking for production orders. You will find screens below (sorry for low quality censorship). 
Looking at one example.
 
1. work order 23/022828 is scheduled and estimated, as you can see material demand 1102-040-03571 is 92.38 Kg
 
Net requirements view shows proper demand from Production line; 23/022828 for material 1102-040-03571 - 92,38
 
 
Mobile app step of overpicking -> 125 kg (vs. estimated 92,38)
 
 
Going back to production BOM you can see Estimated 92,38 kg and result of overpick 125 kg in Remaining column (so far so good)
 
 
Going back to net requirements -> now the system states that 125kg will be used for production - whitch is not correct as only 92,8 will be used, overpicked qty is only moved to work center (may be reserved/allocated/marked) - BUT will not be used in full.
Now if we go do not use overpicking system can both round up to full logistic units or full LP's without affecting NET usage but if we use overpick system always treats overpicked qty as something that will be used in full for production.
 
Has anyone else encountered this issue ? Do you have any workaround ?
 
Categories:
Procurement and Sourcing
Production Control
Planning
Warehouse Management
  • Krzysztof Kierzkowski Profile Picture
    Krzysztof Kierzkowski 23 on at
    Over-pick materials for production orders and batch orders - incorrect NET requirements
    Hi Andre,
    Yes, but sadly its creates problem on its own. LP in our case its full a full pallet or octabin - if we would use such large containers in internal logistics (staging means full LP is requested by system) than production floor would soon run out of space to store raw materials. Some assembly BOMs in our case are 80+ lines. Now if we treat separate boxes or bags as license plates, than we would have several thousand LP in warehouse, not to mention how to label such high qty of items. Either way - thank you for suggestions. 
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 290,246 Super User 2024 Season 2 on at
    Over-pick materials for production orders and batch orders - incorrect NET requirements
    Hi Krysztof,

    I understand your scenario. I just fully read the documentation from Microsoft here: Over-pick materials for production and batch orders - Supply Chain Management | Dynamics 365 | Microsoft Learn
    There is an option to set a policy for staging. In that case, it should not allocate the over-picked quantity to the production order, but it is reserved at the production input location. 
  • Krzysztof Kierzkowski Profile Picture
    Krzysztof Kierzkowski 23 on at
    Over-pick materials for production orders and batch orders - incorrect NET requirements
    Hi Andre,
    Thank you for suggestion. I was thinking along the same lines, but the issue is that in all other round up cases (either through picking full LP's by selecting staging as strategy, or by rounding up to full boxes/bags/pallets by Order Picking & Location Directives) the system does not touch the BOM use at all, if WO consumes 92 kg then it stays that way regardless of the fact you just moved 100kg to Work Center. With Overpicking its not the case - now system informs you that you will use 100kg for this work order, which is just plain wrong - as its not in line with consumption. 
    To make things worse, based on that calculation - system creates planed purchase orders - so in the end you end up with excess stock on hand (if you follow wrongly created Planed PO). 
     
    Bottom line and the root cause of the issue is that, 
    A. One thing is to reserve excess qty of material against Work Order and to say I will use 90 but I'm moving 100 or 120 kg to work center and I'm reserving 120kg for that WO. 
    B. Other thing is to say I should use 90kg based on BOM but since I'm moving 120 kg - I will use all of that. That is plain misleading.
     
    I hope you understand my point. 
     
     
     
     
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 290,246 Super User 2024 Season 2 on at
    Over-pick materials for production orders and batch orders - incorrect NET requirements
    Hi Krysztof,
     
    I haven't experienced the new option for over-picking on production orders myself yet. In one particular way, I can understand this behavior where it now thinks it would need to consume the picked quantity as it is picked for the production order. However, the common requirement is to e.g. pick full pallets and consume only what is required for the production order and like you mentioned have the remaining quantity available for the next production order.
    Maybe you can create a specific warehouse location called "Production floor" and move pallets from the warehouse to this location using transfers. Then for the production order, you can pick from this location the correct quantity.
     

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