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Supply chain | Supply Chain Management, Commerce
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Production control reports: various costing analisys

Posted on by 5

Hello everyone, 

My client wants to analyze very specific things from productions so first I will give you some background information and then the requirements.

  • The company manufactures bicycles using discrete manufacturing and BOM.
  • They use the contribution coefficient to calculate the sales price of products.
  • When one or more of the items in the BOM is not available, they manually change the BOM within the Production Order.
    • They don't want to generate multiple BOMs for the same bike model because the substituting material will vary a lot depending on what they have in stock at the moment.

Some of the usual scenarios in production are:

  1. Consuming more of some ingredients of the BOM because some were damaged during production.
  2. Substituting some of the materials of the BOM because they were out of stock of the primary material (They change the BOM within the Production Order).
    1. in this case, the substituting material may be more expensive and may vary a lot depending on stock.

For point 1: They want a report that shows the difference in cost for productions that used more materials than the defined in the BOM. This way they can see how much they are expending due to problems in manufacturing.

For point 2 they want to:

  • Evaluate the cost of using substitute materials vs Original BOM. (Ideally, they want this before production, they know the cost of other materials).
  • Evaluate the difference in cost and the difference in Sales Price for productions using Original BOM vs BOM with modifications due to lack of stock in one or more materials of the BOM (Sales price calculated with contribution coefficient).

Possible Solutions:

For point 1: I think we could maybe see the difference in extra materials consumption by using a journal type "Material consumption" (Picking list journal) with a different name for "Extra materials" so when they report these materials they do it with this specific journal and then somehow gather this data for a report.

I hope the information is clear enough to understand the situation, please let me know if you have any ideas for these requirements, anything helps!

For production control reports I found: https://learn.microsoft.com/en-us/training/modules/configure-discrete-manufacturing-dyn365-supply-chain-mgmt/11-product-reports?ns-enrollment-type=learningpath&ns-enrollment-id=learn-dynamics.configure-and-use-discrete-manufacturing-in-d365-finance-ops 
Any info is welcome!

Thanks in advance,
Kind regards,

Frank

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