At the end of production, we want to bifurcate the material.

Question

Dear Expert,
  Our requirement is such that we started the production of let say grade A material. But after checking quality parameter at the end of production, we come on the conclusion that partial lot is Grade B material. Both the material is finish material, we don't want to process further for Grade B material as it is low grade.
We take the e.g.
Grade A material plann to produce 100 Ton
But, at the end we get to know that Grade A is 60 Ton & Grade B is 40 Ton.
Some details: Type of manufacturing - Repetative
                       Materials created  - Grade A & Grade B
Please help to map above requirement.
regards,
Chetan

Answer 1

Hi Chetan,
There are 2 approaches to this issue; in my opinion, the best is to have one material number for both grades, but manage it with batches, and have the grade on the batch classification. This way it flows best with QM, planning, etc.
But if you must have different material numbers for the different grades, you could have the low grade as a by or co product. It means that you put it in the BOM with a negative sign and the statistical quantity known from the past. Later on you confirm the actuals, both for the high and the low grade. In REM you just need to correct the backflush quantity for the low grade according to the actuals.
Regards,
Mario