Yield loss in components being consumed in assembly manufacture

[macca7469]

Our business is a discrete assembly operation. Some materials are supplied in rolls. For various reasons some of this material is lost in the operations say 5%. I need to buy an additional 5% above requirements to cope with the loss.

I do not want to add any length to the materials in the BOM - dimensions are exact.

How is this handled in SAP?

[RAHEEL_BABAR]

Hi macca7469,

Set up a material requirement planning (MRP) run with a positive tolerance factor. The tolerance factor can be set up in the material master record for the materials in question. This will cause the MRP to calculate the requirement based on the requirement quantity in the BOM, plus the positive tolerance factor you set. For example, if you set the tolerance factor to 5%, then the MRP will calculate the requirement as 105% of the requirement in the BOM.

[macca7469]

Thankyou Raheel,

This sounds like a solution, but I am having difficulty finding the tolerance factor field you mention. Can you guide me please.

Regards

Glenn

[RAHEEL_BABAR]

Please refer this link Tolerance settings

[Neeraj_Jain]

Hello macca7469,

As I understand you need to consume extra 5% on same production order without adding quantity in BOM. If I understand correct then you can consume your material with movement type 261 for your production order in transaction MB1A or MIGO.

Correct me if something is different.

Regards,

Neeraj Jain

[macca7469]

Thankyou Neeraj.

We will consume all issued materials after the event as you suggest, but my question is about ordering sufficient material to support manufacture, with a known or estimated yield loss ie to consume 100 units in productiion we must buy 105 units, for example with 5% yield loss.

Regards

Glenn

[Neeraj_Jain]

Ok, then you can go with tolerance option in the PO.