# Deconstruction of Item makes two separate raw materials

Hi all,

Hope everyone in the community is doing well.

I have a unique situation with one of our raw materials is used to create two items with separate part numbers. We buy ten pin terminal block connectors that are built buy the manufacturer using 2x two pin terminal block connectors and 2x three pin terminal block connectors. We use all three different types of connectors with our products, and each pin has its own part number. Instead of purchasing two & three pin connectors we break up the ten pin currently in stock.

Now how to address this in ERP is where my question arises. I created a BOM for the three pin requiring 2x ten pins with a .5 conversion rate, since I am only using half of the ten pin to create 2x three pins. Which means in real life I still have the other āhalfā of the ten pin to include in my two pin connector stock. However, once I complete a production order for 4x three pin terminal block connectors ERP reflects that Iāve used 2x whole ten pin connectors, so the two pin connectors are essentially gone from the system.

How can I set up in ERP one BOM to create two items?

Thank you,

Alissa

āI created a BOM for the three pin requiring 2x ten pins with a .5 conversion rate, since I am only using half of the ten pin to create 2x three pins.ā

Some questions here:

1. How you get a 0.5 conversion rate, and not 0.6 ie (2*3)/10?
2. Why not opt for a conversion rate of 0.9 ie (3*3)/10?
3. Why does the 3-pin require a 2x 10-pin and not a single 10-pin to yield say 3x 3-pin?

I am lost making sense of the math here, at least in this context of what āconversion rateā refers to in erp parlance.

If this problem could be clarified or restated, that would help in my case thanks

Perhaps express this problem in algebraic terms for eg.

a=2-pin
b=3-pin
c=10-pin = 2a + 2b

and so on

It occurs to me 2) and 3) mean a 1-pin connector, that is waste?

But 1) escapes me and to state the problem in algebraic terms could highlight the issue

The ten pin is made of 2x three pins and 2x two pins.
a= 2 pin
b= 3 pin
c= 10 pin

c= 2(a) + 2(b)

I havenāt really understood your manufacturing process properly, yet suggesting a solution based on what I think is the problem. Since your manufacturer has combined 2-pin and 3-pin connectors to build the 10-pin connector, create the 10-pin connector as a product bundle(2-2 pin and 2-3 pin). That will allow you to purchase the product as 10-pin connector, yet it will be stocked independently. So your BOM will directly map to the type of connector it uses.

agreed of course this adds up c= 2(a) + 2(b)

The questions is how to make sense of this for it to add up too!?

I went back and changed my conversion rate to .6 on the 3 pin BOM and set a .4 conversion rate for the 2 pinās BOM and it subtracts the correct amount from my 10 pin stock.

Product bundle does not work because we still use 10 pin connectors for other products, and for the product bundle to properly work the bundle item cannot Maintain Stock.

Thank you for your time and help.

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If your determined to use the 10 pin device to make even numbers of 2pin and 3 pin devices, then create a number for a 5 pin device. Itās stock level is almost always zero.

Configure the 2 or 3 pin devices to require the new 5 pin device as their source material.

Now for example when you request 4 of the 3 pin devices, the new 3 pin device BOM will create demand for 4 of the 5 pin devices first so they may be used in the 3 pin device BOM. It is a sort of cascading sequence to get there, but everything works out this way.

The only thing left to do is force the remaining 2 pin parts (left over from the 3 pin manufacturing process) to be moved to either the āwasteā location or to the 2 pin stock location.

I did this exact same thing 2 years ago for generating the parts to build a small circuit board. Hope this helps.

BKM

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