Tag Archives: Scrap

Purchasing Services: Inventory Value Zero

I’ve stumbled recently upon a support request, where a partner asked if there was a possibility to register purchases of services in Microsoft Dynamics NAV. When it comes to selling services, such as consulting, or repairs, NAV is your true friend, because you can use Resources to register sales against them. However, purchase documents don’t offer a possibility of purchasing resources, so you are left to some workarounds.

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Scrap doesn’t just happen

In reality, if you need 1,000 of whatever product, the manufacturing process is rarely going to yield exactly 1,000 of it, even if you feed into the first operation the exact quantities of raw materials system calculated as gross requirements. The process may produce 980 or 1,020, but is hardly ever going to be exactly 1,000. If you didn’t take scrap into account, or you took incorrect scrap into account, your actual output from the process might be much more unpredictable, with huge variances. Variances are always a problem, only they don’t have to be that big a problem in all scenarios.

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Scrap the crap

Scrap happens. So does sh*t. In my last blog post about scrap I gave a crappy explanation of how forward calculation of fixed scrap works. So instead of disgracing myself by leaving the incorrect explanation there, I’ve just corrected it, and posted this lame excuse here. Anyone who is interested in how it really works, please accept my sincere apology for not testing my hypothesis thoroughly before posting it here. I’ve now tested it thoroughly, corrected it accordingly, and there you go.

Today is April the 1st. The April Fool’s Day. I hoped to be posting a prank here today, but it seems I’ve posted a prank few days ago. Sorry.

Cut the (s)crap

[I had to edit this post on April 01, 2008. And no, it’s not April Fool’s Prank] 

Have you ever wondered how manufacturing scrap works? Or what it really is? It’s an interesting topic, and yet a very confusing one. It has caused so many headaches to the project team I worked on recently, because nobody really understood it. So, what is manufacturing scrap?

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