Costing on a failed, but reusable, part

Yahoo Archive
1
Tony,

IDEV does this quite often and what we do is to have quality create a very small job to make the new part (either engineer it on the fly or use an ALT BOM), (one operation backflush very little laborl). Then from either Inspection or DMR, reject the part to this job, process the job and the new part goes into inventory (one operation, quantity only, auto receipt to inventory). You could also probably automate this process but we haven't seen the need.

Carl Heeder
281-920-0585 or cell-281-797-2200
carl.heeder@...

[Non-text portions of this message have been removed]
2
We make a precision diamond cutter.
All jobs start off intending to make the highest quality cutter, but for various
reasons it happens on occasion that the cutter comes out less than highest
quality.

It is not trash, and with a little rework, it can be sold, but at lesser price.

You always start a job intending to make the Grade A part, never intentionally
making the inferior Grade B one.

But there is a market for the Grade B ones, and they can be sold.

How do you convert the Grade A part to a Grade B part?

Is best method to do a inventory adjustment, adjust A down, adjust B in?

Is there any means of through a DMR to accept in as a different part?

Any ideas you have are welcomed.

Thank you,
3
We actually have this problem. Vantage in this respect is your
friend.

You can just change the part number on a job. If your job is for more
than one unit, split the job and change the partnum on the job for the
'Grade B' part. Presumably both parts have the same MOM but just a
different partnum and description. They'd have the same standard cost
since it presumably costs you the same to make them, although you'll
probably accumulate some extra rework on the 'B' part.

You'll sell the 'B' part for a loss or a lower margin, but you already
knew that.

-bws

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Tony Hughes
Sent: Friday, October 15, 2010 4:29 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Costing on a failed, but reusable, part

We make a precision diamond cutter.
All jobs start off intending to make the highest quality cutter, but for
various
reasons it happens on occasion that the cutter comes out less than
highest
quality.

It is not trash, and with a little rework, it can be sold, but at lesser
price.

You always start a job intending to make the Grade A part, never
intentionally
making the inferior Grade B one.

But there is a market for the Grade B ones, and they can be sold.

How do you convert the Grade A part to a Grade B part?

Is best method to do a inventory adjustment, adjust A down, adjust B in?


Is there any means of through a DMR to accept in as a different part?

Any ideas you have are welcomed.

Thank you,





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