Understanding Process Planning Setup

You use the Co-Product Planning/Costing Table program (P3404) to set up co-product and by-product processes for MRP/MPS Requirements Planning. The planning table specifies the percentage of the demand for co-products that is satisfied from a process work order, the percentage that is satisfied from process work orders, and the percentage that is satisfied from other sources.

You can also specify circumstances. For example, by entering 75 percent in the table, you specify that 75 percent of demand is satisfied from process work orders and the balance from other sources. The system automatically satisfies the balance, for example, by planning co-product work orders or creating purchase orders.

If a co-product can be produced by more than one process, both processes appear in the table when you locate the co-product. For example, a 65 percent to 35 percent relationship can exist between the two processes.