With Make Direct, the costing method comes into play because you don't take
anything to stock. We are FIFO and by not taking the item to stock, it does
not create a FIFO layer which then can become a problem in accounting.
Beth Rye
IT Director
CIGNYS
Email: <mailto:brye@...> brye@...
***ITAR NOTICE***
This e-mail and/or the attached documents may contain technical data within
the definition of the International Traffic in Arms regulations, and are
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an export license or other approval from the US Department of State, is
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From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
that_guyy
Sent: Wednesday, July 25, 2012 9:41 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Make to Inventory vs Make to Job (aka Make Direct)
What is the expected benefit or problem needing solved?
Make to Inventory - No direct link between the job and the sales order. MRP
aggregates the demand across orders and then generates Job suggestions based
on the PartPlant Min/Max Lot sizes and the due date on the job is set to the
earliest date (depending on other planning parameters, it could generate
several suggestions, spreading out the load). These jobs have a demand link
to the shipping warehouse specified on the orders and need to be received
into inventory, like most jobs. When the Job is finished a Job Receipt to
Inventory (WIP to Inventory) must be ran so that it is available supply for
the Sales Orders. Once Fulfillment Workbench 'sees' the supply, it is
available for picking. Depending how Fulfillment Workbench is used the first
order on for the part usually gets fulfilled first. The problem with this is
that the supply is shared, first come first served, so for low supply parts
it can be difficult for sales to promise a ship date. When shipped the
inventory i s shipped from stock (Inventory - COGS).
Make To Order - Either when the order is put on or when MRP runs a job or
job suggestion (respectively) is created with a 1 to 1 relationship between
the job and the sales order release, at the qty on the sales order release
with a due date of the sales order release (+ any move or buffer times). The
Job has a demand link directly to the Order and says so (also, if set in
Company Maint. the Job number can be the Sales Order Number - Line -
Release, instead of the next Job number). Since sales can see the linked Job
from SO Entry, they can right click on the Job and see the current status
(released? Operations status? On Time? Mtl Issued?) so they can keep the
customer in the loop. Also Capable to Promise in SO Entry I think can be
more accurate. Once the Job is completed a 'Job Receipt to Inventory' IS NOT
done, but the finished part is left on the Job in WIP. Once the Qty is
complete in WIP, Fulfillment Workbench has visibility of the parts and it
will be available for 'pic king.' When creating the Pack and the Sales
Order/Line/Release is entered the linked Job is automatically pulled into
the Pack Line. When the Pack is marked 'Shipped' the parts are moved from
Job WIP to Shipped (WIP to COGS). The good thing with this method is that it
discourages 'stealing' since the Job/SO link is visible, so there is a
greater chance that the orders will be fulfilled in the right order. The
only problem I can think of is WIP that can sit longer than planned (some
cost accountants don't like that), like across months.
So for me the big difference is the 'guaranteed link' and it makes it harder
to 'Rob Peter to pay Paul.' So instead of throwing all the manufactured
parts in a big bucket for first come/first serve, its more like a flow of
manufactured parts that already are allocated to their sales orders... no
question who the part is for.
Hope that helps, if that doesn't answer your questions, please ask.
-Rick Bird
IT Software Administrator
Rowmark, LLC.
--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"dyoderbx" <dyoder@...> wrote:
parts orders are low quantities and seldom in stock.
anything to stock. We are FIFO and by not taking the item to stock, it does
not create a FIFO layer which then can become a problem in accounting.
Beth Rye
IT Director
CIGNYS
Email: <mailto:brye@...> brye@...
***ITAR NOTICE***
This e-mail and/or the attached documents may contain technical data within
the definition of the International Traffic in Arms regulations, and are
subject to the export control laws of the US Government. Transfer of this
data by any means to a foreign person, whether in the US or abroad, without
an export license or other approval from the US Department of State, is
prohibited. No portion of this e-mail or its attachment(s) may be reproduced
without written consent of CIGNYS. If you are not the intended recipient or
believe that you may have received this document in error, please notify the
sender and delete this e-mail and any attachments immediately.
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
that_guyy
Sent: Wednesday, July 25, 2012 9:41 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Make to Inventory vs Make to Job (aka Make Direct)
What is the expected benefit or problem needing solved?
Make to Inventory - No direct link between the job and the sales order. MRP
aggregates the demand across orders and then generates Job suggestions based
on the PartPlant Min/Max Lot sizes and the due date on the job is set to the
earliest date (depending on other planning parameters, it could generate
several suggestions, spreading out the load). These jobs have a demand link
to the shipping warehouse specified on the orders and need to be received
into inventory, like most jobs. When the Job is finished a Job Receipt to
Inventory (WIP to Inventory) must be ran so that it is available supply for
the Sales Orders. Once Fulfillment Workbench 'sees' the supply, it is
available for picking. Depending how Fulfillment Workbench is used the first
order on for the part usually gets fulfilled first. The problem with this is
that the supply is shared, first come first served, so for low supply parts
it can be difficult for sales to promise a ship date. When shipped the
inventory i s shipped from stock (Inventory - COGS).
Make To Order - Either when the order is put on or when MRP runs a job or
job suggestion (respectively) is created with a 1 to 1 relationship between
the job and the sales order release, at the qty on the sales order release
with a due date of the sales order release (+ any move or buffer times). The
Job has a demand link directly to the Order and says so (also, if set in
Company Maint. the Job number can be the Sales Order Number - Line -
Release, instead of the next Job number). Since sales can see the linked Job
from SO Entry, they can right click on the Job and see the current status
(released? Operations status? On Time? Mtl Issued?) so they can keep the
customer in the loop. Also Capable to Promise in SO Entry I think can be
more accurate. Once the Job is completed a 'Job Receipt to Inventory' IS NOT
done, but the finished part is left on the Job in WIP. Once the Qty is
complete in WIP, Fulfillment Workbench has visibility of the parts and it
will be available for 'pic king.' When creating the Pack and the Sales
Order/Line/Release is entered the linked Job is automatically pulled into
the Pack Line. When the Pack is marked 'Shipped' the parts are moved from
Job WIP to Shipped (WIP to COGS). The good thing with this method is that it
discourages 'stealing' since the Job/SO link is visible, so there is a
greater chance that the orders will be fulfilled in the right order. The
only problem I can think of is WIP that can sit longer than planned (some
cost accountants don't like that), like across months.
So for me the big difference is the 'guaranteed link' and it makes it harder
to 'Rob Peter to pay Paul.' So instead of throwing all the manufactured
parts in a big bucket for first come/first serve, its more like a flow of
manufactured parts that already are allocated to their sales orders... no
question who the part is for.
Hope that helps, if that doesn't answer your questions, please ask.
-Rick Bird
IT Software Administrator
Rowmark, LLC.
--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"dyoderbx" <dyoder@...> wrote:
>We are now considering making at least some orders Make Direct. Our spare
> We have always been a Make to Inventory shop since we have been on Epicor.
parts orders are low quantities and seldom in stock.
>what we need to look for as we use Make Direct?
> Could someone give me a brief comparison between the two methods? Or note
>[Non-text portions of this message have been removed]
> We are on Epicor 9.05.605, soon to go to 700
>