Scrap recycling process in SAP.

[former_member543521]

Hello,

The business scenario is like this.

During pig iron production process, after furnace tapping it will undergo refining and casting process, after which the pig iron will be converted to iron ingots.During this process there will be some portions of scrap material not suitable for casting process will be de slagged to ground and skimmed. These unwanted materials are stored in scrap storage and it will be recycled with pig iron process.

How do we capture this scenario in SAP, any one who has done this kind of requirement please share your thoughts, it would be highly appreciable.

Srini

[RahulHanda · Accepted solution]

Hi Nallapu,

Since pig iron is being converted to iron ignots and during this operation you will have scrap which means it would be kind of a by-product. Not exactly now a pig iron and it's not iron ignots (correct me if I am wrong).

If that's the case then it would be scenario where you have a by-product from specific operation. Then go through the attached link

How is a by-product of a production process handled in the 'Production Order'? - Bus...

Let us know if it helped.

Regards

Rahul

[former_member543521 · Accepted solution]

Hello Rahul,

Thanks for your quick reply.

I would like to mention the left out material after converting IRON INGOTS or BILLETS, these left out scrap or what ever it is called should be recycled again in the refinery process, so the process will be termed as recycle process.

I hope you understand the process of my requirement now.

How do we capture this recycle process into SAP. Please share any thoughts would be greatly appreciated.

Srini.

[RahulHanda · Accepted solution]

Nallapu,

This is what you can do (at high level):

• Put this material as by-product or co-product (as per business requirement) in IRON INGOTS BOM.
• When you will have production order for IRON INGOTS this will be booked in stock. Please follow by/co-product solution.
• You need another material A which will consume this scrap material basically by/co-product.
• Now you need to have BOM & routing for this material A which will consume by/co-product.
• Create a production order for A and then process accordingly. This will eventually consume scrap material and will turn into another material.

This just high level, please complete requirement of your customer and define solution scope accordingly.

If this answers your query please follow

else let me know your concern.

Regards

Rahul

[former_member543521 · Accepted solution]

Hi Rahul,

Thank you so much for your solution and given appropriate solution.

But you are talking about "material A", would you mind to give a little clarity on this, in my case how would i go for material A.

Looking forward to give a little minute level.

Thanks,

Srini.

[kiran_kumar179 · Accepted solution]

Srinivasulu,

I would like to mention the left out material after converting IRON INGOTS or BILLETS, these left out scrap or what ever it is called should be recycled again in the refinery process, so the process will be termed as recycle process.

If you would like to recycle left out material(which might be Co/By Product) you can directly consume in any existing material production process as per business need by adding the item manually in order or As said by Rahul you need to create a different material to consume this left out material.

BR
KK

[RahulHanda · Accepted solution]

Hi Nallapu,

There are two option, you create a routing for by/co-product consume the same and take this out as outcome of the process. In this case you will have to distinguish between the so called scrap material and already processed material as material number would be same. This could be done by putting them in different storage locations (as an example).

The second option is, after processing the scrap material (which is co/by-product) the outcome is new material number which A. Basically consuming scrap material and transferring the same into another material after processing (as kind of finished or semi-finished material).

I hope its clear for yourself.

Regards

Rahul

[former_member221124]

Hi Nallapu

Gone through the whole thread and the expert's solutions.

Actually i just want to mention here how we have mapped the same process for one of my client.

1-As in PIG Iron production  , PIG Iron is produced from Liquid Metal .

2-Two different processes (Two Different Material- Liquid Metal and PIG Iron, Two Routings and Two BOMs  ) are mapped.

3- In case of Liquid Metal production Scrap is generated (Metallic scrap and Slag )

4-Liquid metal is further converted into PIG Iron.

5-In PIG Iron BOM only Liquid Metal and Lime Stone Material (used for refining) are used as components.

6-Practically some scraps are generated during PIG iron production/casting.These can be marked as By product in PIG Iron BOM . And same scrap can be used in Liquid Metal BOM.

Regards

DD