How would one tackle an operation that consists of cutting …
e.g…
I buy a rope, 1m length. My product requires pieces of 10cm. So each 1m-rope can
yield 10 x 10cm-pieces.
To get 1m rope to 10cm pieces, requires labout and I want to capture those costs.
My first instinct is to define BOM’s and a cutting workstation for the process. The problem
comes in at how to define the BOM.
How does one define a BOM that requires 1 of an item that yields 10 other items
( I would assume that my item list with have 2 seprate items : 1m-rope and 10cm-rope )
I did find a topic close to this, but it relates to subcontracting …
I know how to buy a 1m-rope and use the UOM so that 10 units of 10cm-rope is entered
into the store, but then it does not capture the labout to cut it ???
create BOM for 10cm-rope quantity 10 (output quantity), 1m-rope as component in BOM items child table with qty 1( input quantity, also called usage per).
Let me try and implement your suggestions. It sounds interesting. I have in the meantime been
reading as well and I did find something else which sounds just as interesting !!
Give me a day or 2 to try all these options. then I shall revert and hopefully someone else
can benefit as well.
@szufisher is giving you the most correct advice. However, it appears that you may have over simplified your own question in order to get an easy answer.
The reality is that bulk rope will likely come to you in lengths that are some multiple of 1m. So, you would inventory it in quantities of 1m UOM even though the rope may actually be 150m long in stock.
The BOM you create would only call for the bulk rope to generate the 10cm snippets of rope in production. By doing it this way, you are free to create work orders (or production orders) against the new BOM in any amount you wish.
Each time you run the work order you will define how many 10cm snippets of rope you want to produce and it will in turn tell you how much bulk rope to take from inventory in order to produce your order.
The action of running the work order (or production order) will automatically generate the Stock Entry tickets to remove the correct amount of bulk rope from inventory. When the order is completed, it will also generate another Stock Entry ticket to put the new 10cm rope snippets into your finished goods inventory so you can use them, sell them, or otherwise dispose of them in your business.
Creating the workstation for cutting the rope allows you to also capture the cost of production into your final 10cm rope pieces.