In contract manufacturing, we often make a once-off job, producing say 10,000 units and then do not make those again for a long while (or ever). It’s usually made to order and we buy large quantities of raw materials in specific batch sizes for specific sized jobs.
Sometimes things go wrong, spilled material, Q.C. fails etc, and perhaps only 9,600 units of the 10,000 are good to go, so the job yielded 96% (but we consumed 100% of the materials).
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How can I consume all material (100%) but only register 96,00 (or whatever qty we actually made) as the produced units so that the Job (work-order) shows that it meant to make 10k, but 96k was made.
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How can I get the work-order to show “Complete”? - The client is happy that we made 96k, we can put the 4% to lost sales, write-off, on-line damages/losses/waste/etc. but currently I cannot find how to complete a job without wrongly saying I did 10k units (so as to consume 10k worth of materials).
To be clear, we never get 100% yield, jobs are designed in a way that the target yield is 97.5% which we do often attain. Below 97.5% a yield-investigation is done to find the problem, but either way, we won’t make the rest of the job because we are not re-buying the MOQs of raw materials to just make a few more items.
Also note that we are happy to book the lost finished items to waste/write-off/losses warehouse etc, but I need the job to show the loss when we look at the list of work-orders, I want to see every work-order Qty-to-make and Qty-actually-made so that we can trend production yield efficiency.
I’m hoping I am missing some obvious/easy trick to complete jobs, consume all materials, but have a different amount of finished products (booked against it to the warehouse) than what the job expected.
Thank you
Ryan