I am in the Paint industry. We want to use Collective Orders but are facing a snag 25% of the time. Can you please offer suggestions?
We make a BULK batch under a Process Order and then fill it into various types of packages (FERTs) under one or more Process Orders.
The BULK is made in batch sizes of either 500, 1000, 2000, 3000 or 5000 gallons. At the time we create a BULK Process Order we know exactly in which packaging sizes / quantities it is destined. This is why collective orders work so well. We can use the automatic goods movements between the two levels of process orders because we really don't need to hold the BULK in inventory. Additionally, collective orders offer excellent scheduling functionality, such that when the BULK process order is rescheduled the FERT process order is rescheduled automatically; in other words, both the FERT and BULK process orders are kept in sync.
75% of the time the relationship between the FERT and the BULK is 1:1 so collective orders work fine.
However, about 25% of the time we make two or even three FERTs from the one batch of BULK. I don't think it is possible to have collective orders where there is more than one FERT for a given BULK. (The other way around is normal/common).
When we make two or three FERTs from one batch of BULK it is not always the same two or three FERTs, so co-products is out of the question because the possible combination of FERTS would result in too many co-product items on the BOM. Also, the two or three FERTs are often run on completely different packaging lines.
Any ideas? Thank you very much.
I still have not thought of a solution to this problem but I imagine that the pharmaceutical industry must face the same problem.
Here is the scenario they would have.
They have demand for 1,000 bottles of FERT Product A and 2,000 bottles of FERT Product B. Both Product A and Product B are filled from the same batch/process order of BULK Product C.
But the BULK Product C must be made in a "validated" batch size of either 500 Litres or 1,000 Litres.
But 1,000 bottles of FERT Product A plus 2,000 bottles of FERT Product B is equal to 800 Litres. Making 800 Litres is not an option because this is not a validated batch size.
So we want to make a BULK Batch of 1,000 Litres and "over fill" the requirements. We will make 1,250 bottles of FERT Product A and 2,500 bottles of FERT Product B.
How can we get MRP to see the connection between the FERT and BULK so that it plans the two planned orders for A and B in quantities such that they "use up" the larger batch size?
Co-Products is not the solution because of two reasons:
1. FERT Product A and FERT Product B are filled/packaged on two completely different lines, and
2. There are, say, 20 possible FERT Products that can be filled from BULK Product C so we can't hold all of those co-products on our BOM.
I am not sure whether standard SAP will be able to meet your requirements. But in our project cleint is using a custom dashboard where MRP is happening from Bottom to top. We can plan for a specific quantity of an input component to different end products. Based on the material group and basic material higher level materials will be displayed and orders and output batches will be produced for each FERT materials. We are using BAPI for process order and batch creation.
We wish to implement the same process in our business - collective orders for process orders. How did you manage to process the confirmation of the collective order? We wish to confirm the FERT material, that will automatically confirm the BULK material.
Thanks in advance,