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Producing by-products, handling rejects and doing rework

Written by Pieter Hamans on . Posted in Exact Online

The next roadmap item in the development of Exact Online Manufacturing Advanced is called by-products. Why we develop ‘by-products’, and what can we do with it?

The shop order has a (single) product that is being manufactured, and could require multiple materials such as purchased supplies and manufactured subassemblies. In some cases we can identify more than one product that is produced. That is where we need by-products.

In the most typical case, the by-product is a low-valued output of the production process like metal scraps, sawdust or offal. Primarily it matters which quantities we stock up since we sell the by-products off to a scrap collector or a pet food processor. Then, there are also cases where the by-product is a significant output: We process milk into cream and skim, and subsequently process the cream into ice cream and the skim into cheese.

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By-products may also be seen as outputs of product that did not meet the standard. The product is a machined part, and the by-products are rejected parts (under a different item code, in order to identify). Rejected parts may be processed to become the planned part by issuing them to a rework order or back as an input to the original shop order.

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By-products in the bill-of-materials

The bill-of-materials currently has a tab with routing lines and a tab with material lines. We are adding a tab with by-products. Where routing and material add to the cost price of the product, by-products lower the cost price: product cost = operations cost + material cost – by-product yield.

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Screens to record the by-product receipt will be added, and the by-product will become part of the costing reports.

The by-products will become available for all users of Exact Online Manufacturing Advanced in 2015. An expected release date will be communicated in the next blog post on by-products.

More information with Pieter Hamans (pieter.hamans@exact.com).

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