Example 3.3 Bill of Material with Scrap Factor Information

As in the introductory example described in the section Getting Started: BOM Procedure, this example uses two data files, PMaster3 and ParComp3, as input data sets for the BOM procedure. The PMaster3 data set, shown in Output 3.3.1, lists the part master records for all items of the ABC Lamp Company. The Part and Desc variables contain the part number and description, respectively. The Unit and LeadTime variables contain the unit of measure and lead time information for the item identified by the Part variable. The ParComp3 data set (shown in Output 3.3.2) lists all product structure records in the company. The Parent and the Component variables contain the part numbers for the parent item and the component, respectively. The QtyPer, Fscrap, and LTOff variables contain the quantity per assembly, scrap factor, and lead-time offset information, respectively, for the relationship identified by the Parent and Component variables. The SDate and EDate variables are the start and end dates for the bill of material effectivity dates. The effectivity dates are used to determine when a component is active as a part of the bill of material. In this example, item '1700' uses component '2200' until the end of the 7th of April, 2001. Starting on April 8, 2001, item '1700' uses component '2210' instead. Refer to Landvater and Gray (1989) for more information about bill of material effectivity dates.

The following code invokes PROC BOM to produce the indented bill of material and the summarized parts list.

  /* Create the indented BOM with lead time */
proc bom data=ParComp3 pmdata=PMaster3 
         out=IndBOM3 summaryout=SumBOM3; 
   structure / part=Part 
               leadtime=LeadTime 
               parent=Parent
               component=Component
               quantity=QtyPer
               factor=Fscrap
               offset=LTOff
               id=(Desc Unit)
               rid=(SDate EDate); 
run;

The indented bill of material in Output 3.3.3 is similar to the one displayed in Output 3.2.2, with additional fields for scrap factor, lead-time offset, total offset, and the start and end effectivity dates. The values of scrap factor, lead-time offset and the effectivity dates are carried from the product structure input data set shown in Output 3.3.2. The value of the total offset (denoted by the Tot_Off variable) is determined by the procedure as the total lead-time offset accumulated from the end item identified by the _Prod_ variable to the item identified by the _Part_ variable. In addition, the value of the quantity per product (denoted by the Qty_Prod variable) for each record of this indented bill of material has been increased by the scrap factor to account for anticipated loss within the manufacture of the product 'LA01'. See the section Indented BOM Data Set for information about determining the quantity per product when scrap factor is in effect.

The summarized parts list, which has been sorted by the _Part_ variable, is displayed in Output 3.3.4. Comparing it with the summarized parts list displayed in Output 3.1.3, you can see the impact of scrap factor on the gross requirement (and hence, the net requirement). Moreover, the summarized parts list data set shown in Output 3.3.4 contains a record for each of the items '2200' and '2210', and the gross requirements of these two items are not affected by the bill of material effectivity dates.