I am having an issue with MRP creating false unfirm jobs. We use Make direct on the sales order and link the jobs accordingly. After we have completed the jobs we use Job Receipt to Inventory prior to shipping. MRP then creates an unfirm job even though we have enough inventory and wip to complete the sales order. Does MRP not calculate inventory and WIP when creating unfirm jobs?
Here’s a screen shot from the Shipment Entry Screen/Lines tab. The Job information is listed if the part was made direct for the Sales Order.
If a sales order has the Make Direct checked, MRP will create Jobs for these parts regardless of the inventory levels.
Why do you receive these Make to Order parts to inventory? You can use the system to ship directly from the Job.
We check the make direct box so we have visibility of SO releases and their associated jobs. We then put them into inventory because we usually build ahead of the final due date on the SO due to having multiple jobs for one line for manufacturing purchases. For example an order of 300 will be broken into 3 100 pc jobs.
Epicor’s design for Make Direct is that MRP will create a job for every open Make Direct SO release that does not have a job already.
To “correct” this issue, you EITHER create additional SO releases with the appropriate due dates (which will make MRP create one job per release), or you can try splitting the first job into as many as you need.
In either case, Epicor expects you to ship directly from the job without going into inventory, and will continue creating new job suggestions for the release as long as it is open (it won’t close until it ships).
This is default functionality. There are probably LOTS of other process options available.
Thanks for the response! So when shipping directly from the job I’m assuming we need to keep the job open? Also it can be weeks sometimes before we actually ship on a sales order. How do we manage WIP and actual inventory without putting the parts into inventory?
By design, the items need to ship directly from WIP, meaning the job needs to remain open with items still on the job until shipment. After shipment, the job can be closed.
Why are the jobs being completed so early? Is the customer pushing out the ship dates after the order has been placed?
That makes sense.
For example; we have an order for 300. We then split up that order into 3 seperate jobs for 100 pcs each. They are then scheduled to run consecutively to flow better through the shop. So job 1 would be finished 2 weeks before the total order ship date, job 2 would be 1 week prior and the final job would be a day before shipment is needed.
In default functionality, those items finishing early should stay in WIP until shipment.
This is beginning the discussion of the trade-offs between Make-To-Order and Make-To-Stock. Where the dollars go and when they get there is an important discussion, but the planning process and shop capacity/scheduling is also an important discussion.
I am not a finance person, but I am personally not a fan of leaving finished goods in WIP, and each business must decide their best way of doing things. Who creates the jobs, and on what trigger? Who plans the shop, and what data is available (production planning is somewhat to the left of a black art)? How is your inventory control?
Good luck (and keep asking good questions)!