Question

Tracking scrap from job costs

  • 20 December 2021
  • 5 replies
  • 578 views
M

We are in process of implementing Kinetic 2021.2.5, building dashboards. Part of our business is a foundry. One of our key metrics is the cost of scrap. DMR is not required for scrap until the part is in metal so some scrap is done without NCR / DMR. Does anyone have a good way to track job scrap cost? We have not been successful in locating this data even with the help of our operations, finance, and tools consultants. Seems like someone else would be tracking this as well?

5 replies

W

I used a UD table to store scrap costs related to a DMR record. Epicor gives us the choice whether to have the system remove costs from the job to DMR or not. We chose the option to leave the costs on the job but built dashboards to copy the related job labor and material costs and paste them into a UD table. Now we can see all scrap costs and track them over time, by job, by part, and by projectID. Our system could be improved, but I hope it provides at least a helpful idea for you. 

mwilson
Userlevel 4

One system I’ve seen in the past was to send all material variance to scrap.  Then when extra material would be required for a job due to scrapping, the operators would write the excess on the traveler, then the issuers would manually issue the excess.  It helped that this was a company that manually issued all materials after the job was complete.

..Monty. Monty Wilson, Vice-President North America, Epicor Users Group
W

@mwilson,

One system I’ve seen in the past was to send all material variance to scrap.

Does this method require standard costing?

M

We were able to locate the scrap to DMR costs easily. We are not able to locate the costs when scrapping without a DMR. In our foundry, operators can scrap without writing an NCR/DMR in all of the operations from wax injection through knocking out the molds after metal pour. At this point, once we have parts in metal they are considered traceable parts that would require an NCR/DMR in order to scrap. We are struggling with tracking the costs for parts that are scrapped without NCR/DMR in the earlier operations. The lead time for these parts is 8-12 weeks and we would not replace the parts on the jobs where scrap occurred. Instead any parts scrapped would be on new jobs. This also seems to be an issue in Epicor because it seems that the scrapped qty stays on the job and does not flag planners to make more - Can you confirm from your use of this system whether or not that is true?

 

nmueller
Userlevel 1

@MTPP we had a site doing this process of scrapping directly from data collection and struggled with the costing side of it. Unless you are taking a snapshot of your job cost at the time this is recorded and storing it in a UD table you will not have an accurate cost. At that site since the labor was minimal on parts and most of the cost in material the scrap calculation was based on material cost x qty scrapped. It was not accurate and last year we moved them to the same process as the rest of our sites in that everything goes thru the DMR process to be scrapped. We turned off the ability to report scrap at data collection. It has provided a much better representation of our scrap cost. It still does not fix the issue where it will reduce the job quantity automatically based on scrap from DMR or data collection which would be great even if that was a configuration trigger, pretty sure there is Epicor idea out there for this.

Reply


Terms & Conditions