PP Module: Machine tool industry scenario

Question

Hi Gurus,
My scenario is that the company is making machine tools -
A machine is assembled from about 60 sub-assemblies (60 sub-assemblies in BOM).
Which can be produced in-house or purchased. Each of these sub assemblies have
further child sub-assemblies. This BOM explosion may happen till about 4-6 levels.
In some cases, the suppose the customer already has certain machines which have
say servo motor sub assemblies from Seimens. He would prefer his new machines to
have same servo motors (so that maintenance is easy for him or say his trust lies
in  servo motors of 'Seimens' make).
So, at the time of making the order for purchase of a new machine,
the customer may negotiate the scope of supply of parts/sub-assemblies as well.
As a result  -
1. Some sub-assemblies (say about 25 of the 60 in the BOM) will be purchased by
the customer at his own end and provided to the machine tool company to be fitted
into his machine. (e.g. he will purchase directly from Seimens and send it to you
to be fitted into his machine.)
2. Some sub-assemblies may be produced by the the machine tool company in-house.
3. Some items may be purchased by the machine tool company from their vendors though
they can also be produced in-house. (e.g. you may decide to buy the sub-assemblies due
to shortage of time for production or there is request from the customer that please
use particular hydraulic components of 'Vickers' make).
In addtion, the customer may also ask for commercial quotation for the machine based on any
of the above permutation combinations (e.g. what will be the price of the machine if you procure all the components or what will be the price if he provides one or more materials).
We are in a position to freeze all this data at the time of punching the sales order.
We will then run MRP.
The MRP should provide the following -
1. Planned/production orders for materials to be produced in-house.
2. Planned orders/purchase requisition for materials to be purchased from Vendors.
3. Some PR (or return sales orders or some other document) to get material from the Customer
so that we are able to follow-up incase he delays sending the materials.
4. In case the sub-assembly is to be purchased the system should not give production orders for its child parts.
Kindly suggest how to  map a solution of this scenario.
Shud I make Sales order BOM or variant configuration or what ?
Thanks and Regards,
Vishal Saha

Answer 1

Hi,
   After the completion of Sale order, you wil come to know about the scope of work to be taken by the manufacturer i.e) the items to be manufactured in-house and to be extenally procured. So, in material master you wil define the type of Procurement.
Depending on this, after MRP run, in-house produced materials wil get a planned ordre and externally procured materials wil get a purchase requisition.
Customer Supplied Product can be made as a dummy code for which no costing is added to that sale order under the manufacturer's scope. You can define a new material type for this Customer supplied product and the items pending for this sale order under this material type can be filtered through a Z-report.
You can use Sales Order BOM for your Scenario as the BOM  varies for each order.
Hope this gives you some hint to proceed further...
-Thaila Shree