Our small manufacturing company does mainly custom B2B sales of manufacturing processing equipment, there is a constant debate on how to handle the parts we are constantly switching between build it for small orders or purchase for larger orders. To help maintain part integrity I do not want to keep changing the part between the two toggles.
My thought is to create a second part number to mirror the other but as a purchased item - so manufactured part by prt# 123456 and purchased be 123456P. Have a JC be created with a revision ?? that has material part be 123456P be converted to part 123456, which allows the company to only have a single part number remain in the BOM manufactured 123456.
Is there a way to create a BPM that would automatically go Purchasing bought 123456P - Create JC to convert the 123456p to 123456 for inventory stock? Then the operations manager can use the planning workbench to determine pull from stock or build for a JC.
I know this is a drama all of us manufactures have make vs. buy, how did you resolve this problem.
I am curious about this. It is my understanding that the alternate method should be used to accomodate parts that we manufacture from our prints and, on certain occassions, we may decide to subcontract. When we choose to subcontract, we take our alternate method and revise the BoO to a subcontract operation-- for which we have a supplier assigned. When operations chooses to have it made instead of making it , they set the alt method onto the PLANNNG card of the part and when MRP runs, it makes a purchasing suggestion rather than a job suggestion. As long as the part is materially unchanged, the Part ID and Rev remain constant and only the method/alt method changes. I have to dive back into my notes but for some reason (maybe financial records) this was the preferred method over flipping the part from type “purchased” to type “manufactured” … but I think we are open to either way. Ultimately, whatever makes the most sense and is easiest to manage/maintain. Any thoughts on this? I imagine you could automate this based on capacity constraints if need be. Shop resources at 90+% threatening on-time delvery , therefore engage alt. method until resource capacity <75%?
Maybe I am misunderstanding, but just because a part type is manufactured doesn’t mean a purchase order can’t be created to receive it to stock. We defaulted the part type to how it is typically received to inventory.
For manufactured parts, MRP will run and create unfirm demand for the part, and with that information we either firm jobs to manufacture/ subcontract it, or have the buyer create a purchase order to receive it to inventory.
For purchased parts that we want to manufacture, we create a job on the fly with the purchased part being the part that is manufactured, then add in the required operations and materials to the job as needed. We have a handful of purchased parts that we do this with, saved as a job template to help facilitate the job creation process.
I would create a bpm that triggers when the quantity is changed on the order detail line that sets the release to “buy for” whenever you hit that threshold of, this is too many we want to buy them. That will trigger a PO suggestion to purchase it. Then leave the part as a manufactured part, so that if the release isn’t marked buy for (override) then it will generate the job suggestion. I think it would work.