Material costs associated with setup

We are a company that makes flexible packaging so our material is paper or film that goes through our presses for printing of customer specific designs. Every job has a certain amount of raw material footage that is scrap because it takes around 4,000 lft of material to make sure the design placement and coloring is correct. We want to be able to identify this portion of the material used as waste associated with setup and our normal expected run waste. Does anyone have ideas on how we can accomplish this?

As a consultant, the way i would have specified this to be done would be to add your material two times to the BOM…

  1. first you would list the material consumed in the SETUP… you would specify the quantity, and mark the quantity as “Fixed Qty” so that it would not change based on the job quantity.
  2. second you would list the material again, but this would NOT be fixed quantity.

If you are BACKFLUSHING then these two materials would be assigned to the operation that consumes them. If you have a special operation that is for setting up the machine, then you could have the first fixed quantity material assigned to that setup step.

Thank you. I would never have thought of this but it makes perfect sense.

1 Like