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Best way to structure manufacturing/MRP flows [SOLVED]
05-05-2017, 11:54 AM, (This post was last modified: 06-07-2017, 11:10 PM by trentmurgatroyd.)
Best way to structure manufacturing/MRP flows [SOLVED]
We make up products using mixed raw materials.
We do a premix at our facility - based on the same/similar raw materials as we send out,but in small, specific/exact recipe amounts.
We then send the pre-mix, along with the bulk bags to the main blend plant(s). They process it and send back finished product and leftovers.

I will try to describe a simplified example.

A) our "shop" issues work order for 25x2kg buckets of "x" to our Store/Lab

B) our Store/Lab. (has raw materials from suppliers. Also makes up small pre-mixes)
Raw Materials: eg. 10x20kg bags of sugar, 10x10kg bags of salt, 1x1kg bag of colourant, 2x1kg bags of flavour, 100 (empty) buckets.

We make premix1 eg. 1.3kg sugar + 0.085kg colourant = 1.385kg
We make premix2 eg. 0.66kg flavour + 0.455kg salt = 1.115kg

C) Blend Plant (external service provider)
The "macro-recipe" is eg. 50kg
(in total - 2kg of overall-mixture in ea bucket - we send 25 buckets)
44kg sugar (we pick/issue 3x20kg bags of sugar)
3.5kg salt (we pick/issue 1x10kg bags of salt)
2.5kg (premix1+premix2)

BlendPlant mix it, package it and send back [25 x 2kg]buckets
(this I'll call the micro-recipe for want of a better word) and leftovers.
(~16kg sugar + ~6.5kg salt - there are minor losses in the process).
Process takes a few days.
They charge a mixing fee and a filling fee - so in this case BlendCost=[50xfee/kg + 25xfee/fill]

B) Store/Lab receives back
* leftovers - which go back into inventory
* [25x2kg] buckets - which are transferred/sent to A)Shop

I need to know the cost of the micro-recipe as well as the macro-recipe.
If I haven't explained it properly...
(LabMix + cost of raw ingredients + 25 buckets + BlendCost)/25=cost per mixed bucket

What would be the "ideal" MRP/inventory issue/picklist flows?
Trent Murgatroyd
05-05-2017, 04:17 PM,
RE: Best way to structure manufacturing/MRP flows
1) I don't understand the purpose of the premix. 2) Have you tried implementing this in webERP already? You might have to force yourself to work through an example. I'd suggest modelling the physical processes as closely as possible in webERP (items, boms, locations, work orders, contractor POs, etc.), although others may disagree. Just try to get a process to work, identify the weak spots, and then finetune.

I seem to recall someone suggesting to setup a blend warehouse for the blend plant since you own the raw product, and use a combination of movement to the warehouse, a manufacturing work order, and movement of the leftovers back to your main warehouse. There may be a lot of moves, but you'll find out what's possible.
05-05-2017, 06:07 PM,
RE: Best way to structure manufacturing/MRP flows
The premix is so that we don't have to send the expensive/precision items out in bulk. Most things arrive in bags of 20/25kg, so to send that out when we only use a few 100g gets complicated. It also allows us to make small adjustments to the recipe seperately from the blend-plant functionality.

I think the suggestion about the warehouse was from Tim, but at the time I was a complete n00b, and had so little understanding of the system that it didn't click for me. I will try out a few options and see where it leads.

Just wondered if there is a best practice that I should stick to in order to not break anything, but experimentation is, as you say, probably best option.
Trent Murgatroyd
05-08-2017, 07:16 AM,
RE: Best way to structure manufacturing/MRP flows
I haven't thought this through, but a work order can have multiple outputs, one of which could be the leftovers in gram units if that helps.
06-07-2017, 11:10 PM,
RE: Best way to structure manufacturing/MRP flows
I opened a different (but related) topic here...
That discussion lead the solving both of these topics, so thank you (all)
Trent Murgatroyd

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