I have one raw material. Based on testing, this raw material can be classified into 3 different groups with one group being the base material itself. Each classification is then used in three different end products. The different classifications are specific to its end product.
How would I manage this in IFS?
Is this part serial or lot/batch tracked? If it is you can use Condition Codes to differentiate the part into three classifications. On the FG shop orders you can designate which condition code of the component is required on each order.
Yes. They are lot tracked. I was quickly reading up on Condition Codes in help files. If we wanted to inventory the three different conditions, it looks like that could be done as well. Only thing that I am concerned about is that each condition is used in a different FG and it says that MRP ignores condition codes. Planning seems like it would be difficult without independent demand especially based something that I forgot to add.
Each time they are classified, we will not get the same ratio of component from total. For 100 items we could test and get 30 Condition 1 (C1), 40 C2, and 30 C3. Next lot could be 50 C1, 40 C2, and 10 C3.
Right now, we have each condition set up as an individual part number. We have a clunky process where we, in essence, receive the full batch off the PO, perform incoming inspection, and then re-receive appropriate amounts of each condition/part number based on results. I was looking for some ideas on a better way.
After the classification has been completed, does this impact the amount you then pay the supplier?
Do you pay for the number of each grade you receive or is the cost independent from the classification.
If the cost is relevant, then I suspect your current process will be close to optimum.
If the cost is not important, could you consider a shop order process to convert the original incoming part to the graded goods? You would need to create a structure with a “best fit” split between the three grades - which would then allow MRP to plan both the graded and original part.
There may be a blended solution which could work if you were to use external operations on the shop order - as this can generate PO and PO receipt records as part of the shop order process.
I suspect there will be a number of different ways to answer your question, depending on the priorities of the requirements.
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