Handling Production Order Change: Switching from Product A to Product B and Inventory Management

[sriram_00770]

Scenario 1: Changing Production Order from Product A to Product B

Once a production order has been created and is actively processing on the production line for Product A, the organization may want to switch to producing Product B. However, most of the Bill of Materials (BOM) for both products are the same.

How can we handle this kind of scenario effectively? What ideas or previous methods have been used in similar situations?

Scenario 2: Managing Inventory in the Above Scenario

If the scenario described above (switching production from Product A to Product B) is feasible, how can we effectively manage the inventory to ensure the correct materials are used and any unused materials are properly handled?

[Dominik_Tylczynski]

Hello @sriram_00770 

In my opinion the easiest way to handle the switch is to TECO the production order for product A and to create a new production order for product B. This way all component reservations of the 1st order will be closed and replaced with the reservation of the 2nd order. Thus you won't have any issues handling components inventory.

Best regards

Dominik Tylczynski

[sriram_00770]

Dear @Dominik,

Thank you for your valuable comment.

In the case of TECO, the system will treat the order as completed, and the materials will be considered as consumed for the respective order.

However, the physical stock will still remain in the WIP location, correct?

[Dominik_Tylczynski]

Hello @sriram_00770 

TECO will not consume any components. Whatever has been already consumed before TECO will remain consumed, i.e. if some quantity of product A has already been delivered and components have been consumed for that, it will remain as such during TECO. So whatever stock has not been consumed for the 1st production order will remain at the work center and the stock can be used for the 2nd order.

Cheers

Dominik Tylczynski

[sriram_00770]

Dear @Dominik Tylczynski,

Thank you for your valuable comment.

However, in our organization, the process is defined such that once TECO is applied, the finance-related costs are captured, and the delivery to the customer is also considered complete. You can verify this by checking the DVL status on the order.

Please review the scenario and share your thoughts.

Thank you !