| ManEx Solution - 362008 - Production Offsets |
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ManEx Case Solution
ManEx recommends using the production offset to better control the materials stream. Production offset is a BoM item level field that allows users to control delivery dates in relation to the starting date of the work order. By using this field, the user may move the material requirement date by the specified number of days in either direction. If used correctly, this can have a positive impact on.
After carefully considering their options, NE Company decided to use sub assemblies and production offsets in ManEx to control the material stream.
For the three programmable ICs in the assembly, they created sub assemblies. This allowed them to stock both blank and programmed ICs and ensure that MRP purchased the blank ICs in plenty of time to be programmed for the assembly.
For components requiring special prep work and pre-testing, they used the production offset to bring them in early. This allowed NE Company to keep the balance of the parts off their books until production began.
The largest benefit came from using the production offset to postpone delivery of the chassis components. The chassis pieces were only five percent of the total cost, but they were over $650 thousand in value. By delaying delivery until the parts were needed, they were better able to manage their cash flow, warehouse space, and save a couple thousand dollars in interest.
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| Article ID: 3132 |
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