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MFG/PRO 9.0 User Guide Volume 3: Manufacturing - QAD.com

MFG/PRO 9.0 User Guide Volume 3: Manufacturing - QAD.com

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Set the work center labor and burden rates to zero to prevent GL<br />

transactions from being created. You can express work center lead times<br />

in subcontract days if load reporting is not a requirement. Otherwise, use<br />

queue, setup, run, wait, and move times in conjunction with a work center<br />

calendar.<br />

You can also add one or more departments for specific suppliers for<br />

whom capacity is a major concern. Review capacity for these departments<br />

by printing the department load reports in the CRP module.<br />

Yield<br />

Depending on the manufacturing process, the percentage of a lot that is<br />

expected to be of acceptable quality may fall below 100 percent. The<br />

system can calculate the total yield for an item from the yield for each of<br />

its operations using Routing Cost Roll-Up (14.13.13). The MRP planning<br />

process uses the item yield percentage to plan additional supply.<br />

The expected yield for an operation can be expressed as:<br />

Yield = Acceptable Units at Operation End x 100<br />

The total manufacturing yield for a product is determined by multiplying<br />

the yield percentages for each of its operations.<br />

<strong>Manufacturing</strong> Yield = Yield % for Op10 x Yield % for Op20 x...<br />

Take care when setting yield to anything but 100%—particularly when<br />

yield is used for multiple operations.<br />

Example There are four operations, each having a yield of 90%. The<br />

system calculates the item yield as 66% (90% x 90% x 90% x 90%)—an<br />

expected loss of one in three units. If MRP plans this item and there is a<br />

demand for 100 units, the system creates a scrap requirement for 51 units<br />

(100 divided by 66%) and a planned order for 151 units.<br />

Operation and item yield are different than the <strong>com</strong>ponent scrap<br />

percentage in product structures. Component scrap results in additional<br />

requirements for individual <strong>com</strong>ponents of a parent item. When an item’s<br />

yield is less than 100%, MRP creates additional scrap requirements for<br />

the item, causing the item and all of its <strong>com</strong>ponents to be overplanned.<br />

ROUTINGS/WORK CENTERS 41<br />

Ï See “Scrap” on<br />

page 18 for<br />

a more detailed<br />

description of<br />

how the<br />

<strong>com</strong>ponent<br />

scrap percentage<br />

is used.

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