ERP Pain Point #59: We backflush components, without adjustments, knowing the consumptions may be incorrect
Eric (Six Sigma Blackbelt): Hi Myron. You asked me to look into why we always seem to run short on regrind when we make our 3171 products. Well, I have good news and bad news.
Myron (Operations Manager): I’ll bite. Hit me with the good news first.
Eric: I know why. The BOM is incorrect. We actually use more – apparently way more – regrind than the BOM indicates.
Myron: And the bad news?
Eric: I can’t tell you exactly how much we’re off by. Since we backflush regrind, everything on the production orders always looks perfect. No material variances whatsoever.
Myron: So, what do you suggest we do?
Eric: Two things, and they are both related: 1) we need to measure how much regrind we are actually using, so we can correct the BOM, and; 2) we need to stop backflushing the regrind. So, it all comes down to having measurement capability.
Myron: I’m listening.
Eric: I was talking to Bobby, in Maintenance, and he told me that the unload hopper already has load cells on them, but we stopped using them years ago because they were hard to calibrate. Well, it seems the vendor has made some upgrades and now we could even use an app to calibrate the load cells from the ground instead of always having to climb a ladder. So, all we have to do is…
When you backflush components that have no business being backflushed, bad things can happen in your ERP system. Backflushing was invented as a time saver, but it should only be used for items that always follow a predictable and exact pattern – such as packaging or assembly operations. The rule is simple: always keep the system aligned with the physical reality. If backflushing achieves that, use it. If it does not, don’t. Instead, upgrade your processes to include goods issues based on physical measurement of consumptions.
You can’t build a world class ERP system on a broken business process foundation.
Senior Operations IT Data Specialist bij Dow Benelux B.V.
4 年I think that if your process and master data are reflecting real life, than backflush will help you if it is always fixed quantity like your packaging. If you want to pack a box, no matter the quantity and it is not exceeding the total quantity, that is always build with the same components, like a pallet, a lid, a bottom, etc So, at GR of your box it will always consume these components.
Functional Consulting Services for SAP Quality Management, PP-PI, and Contract Manufacturing
4 年Sometimes! Like anything, this depends very much on your manufacturing process and discipline, and the quality of your data and configuration, . If you have a great product by process and know your data yes! If not, then ....yikes!
The Blended Capital Group - ESG, Governance, Strategy and Finance Integration Leadership Focused on Impact Delivery
4 年Data is like gold, so processes that corrupt data destroy value. Backflushing only makes sense if disciplined processes are in place that adjust for deviations. Not adjusting for deviations leaves bad data, which erodes value.