What is Yield Percentage and Scrap Percent used in Bill of Materials for Sage 100?
Description
What is Yield Percentage and Scrap Percent used in Bill of Materials?
Resolution
Yield and scrap represent percentages are built into a bill’s structure to accurately forecast the production of finished goods and the quantities of components necessary to produce them. Yield and scrap percentages can be used together or independently. The yield percentage is collectively applied to all components of a bill. Because the yield percentage applies directly to the bill’s parent item, it is applied against all components and charges used to manufacture the finished product. The scrap percentage is used for individual components. Although one yield percentage is applied to a complete bill, a variety of scrap percentages can be applied to components within the same bill.
Yield Percent:
The following table illustrates the use of the yield percentages when calculating the production quantities required to manufacture a specified number of finished products. In the following examples, F represents the desired final yield of finished products, Y represents the yield percentage and Qp represents the required quantity to be produced to achieve the desired yield of finished products.
Final Product Yield | Yield % | Calculation | (Adjusted) Qty to Produce | |
| F | Y | F / Y | = | Qp |
| 1.00 | 90.00 | 1 / .90 | = | 1.11 |
| 10.00 | 90.00 | 10.00 / .90 | = | 11.11 |
| 500.00 | 90.00 | 500 / .90 | = | 555.56 |
The component and parent items represented in this example do not use units of measure defined by the Integer Units of Measure field in Bill of Materials Options. Integer Units of Measure values such as EACH round to the next whole unit. For more information, see Rounding Yield and Scrap Calculations.
Using scrap percentages allows great flexibility during manufacturing because the percentages are applied on a component-by-component basis.
The Bill of Materials tasks listed below uses the yield percentage to calculate the required production quantities.
- Component Requirement Report: Parent item quantities are always factored by the yield percentage.
- Costed Bill of Materials Report: Yield percentage is used to factor quantities when selecting this report for individual bill configurations.
- Gross Requirements Report: Parent item quantities are always factored by the yield percentage.
- Picking Sheet Printing: The parent quantity of each bill entered is factored by the yield percentage to arrive at the quantity-to-produce figure.
- Production Entry: The parent quantity of each bill entered is factored by the yield percentage to arrive at the quantity-produced figure.
- Cost Roll-Up Register: The parent quantity of each bill entered is factored using the yield percentage to arrive at the cost of each bill.
Scrap Percent:
The scrap percentage applies to a bill’s component items and is used to increase the calculated gross requirements of specific component items to compensate for anticipated losses during the manufacturing process. For example, assume that 8″ x 12″ sheets of cardboard are used to manufacture photo mounts. To fill an order for an 8″ x 10″ photo mount, a sheet will have to be cut, leaving an 8″ x 2″ scrap. The scrap is 2/12 or 17 percent of the original sheet. For this particular bill of materials, a scrap percentage of 17 percent must be entered to accurately estimate the quantity of raw materials necessary.
Because the scrap percentage is entered into each bill using Bill of Materials Maintenance (instead of Item Maintenance), you can compensate for variances in the scrap rate unique to specific bills.
The following table illustrates the use of scrap percentages when calculating the gross requirements needed to manufacture a specified number of parent assemblies. In these examples, C represents the final component quantity used during production, S represents the scrap percentage, and Qb represents the gross component quantity per bill requirements.
Component Qty per Bill | Scrap % | Calculation | (Adjusted) Qty per Bill | |
| C | S | C / 1 – S | = | Qb |
| 1.00 | 10.00 | 1.00 / (1 – 10/100) | = | 1.11 |
| 1.25 | 10.00 | 1.25 / (1 – 10/100) | = | 1.39 |
| 500.00 | 10.00 | 500 / (1 – 10/100) | = | 555.56 |
The component and parent items represented in this example do not use units of measure that are defined in the Integer Units of Measure field in Bill of Materials Options. Integer Units of Measure values such as EACH, round to the next whole unit. For more information, see Rounding Yield and Scrap Calculations.
Using scrap percentages allows for greater flexibility when forecasting component requirements during manufacturing because the percentages are applied on a component-by-component basis.
The Bill of Materials tasks listed below uses the scrap percentage to factor anticipated requirements.
- Component Requirement Report: Component item quantities are factored using scrap percentages during the component requirement calculation.
- Gross Requirements Report: Component item quantities are factored using scrap percentages during the component requirement calculation.
- Production Entry: Component item issues, including scrap percentages, are used during the component requirement calculation.
- Cost Roll-Up Register: Component item costs are factored using scrap percentages during the component requirement calculation.
- Costed Bill of Materials: Component item quantities are factored using scrap percentage.
Note: If Indented is selected in the Format field in the Component Requirement Report, the scrap percentage is not included in the calculation.