By-Products

A by-product is an unintentional secondary product derived from the production process of the main product. The value of the by-product should be minor compared to the main product. For example, when producing steel screws in a turning process scrap metal particles will also be generated. This scrap metal can be considered as a by-product of the steel screw manufacturing process as long as it can be sold as-is, recycled, or used for other purposes.

A by-product is technically included in the Bill of Material (BOM) of the main product with a negative quantity per assembly. In IFS/Manufacturing Standards by-products are defined with a positive quantity per unit separately from the components on the Produced Parts tab on the Product Structure, Configuration Structure, and Recipe Structure pages. When a shop order is created for the main part, by-products are copied to the Shop Order/Produced Parts tab according to the selected structure revision and alternate.

By-products can be produced anywhere in the manufacturing process of the main part, hence, it can be connected to the operation where it is produced. If not connected, the system assumes it is produced in the last routing step and received together with the main product. If you want to receive by-products together with the reporting of completed quantities and receipts made from the Shop Floor Workbench page, enable the Default Receive By-Products option on the Site/Manufacturing page.

IFS/Dynamic Order Processing (DOP) does not support the use of by-products.

Supply

By selecting the Use as Supply in MRP option for the given by-product, it can be defined as a supply to be used in planning engines like MS and MRP and use that by-product supply to meet the future demands of the part defined as the by-product.

After creating the shop order from the shop order requisition (created for the parent part), enabling or disabling the Use as Supply in MRP option in the produced part line allows the planner to decide whether to consider using the by-product supply from the shop order in the next MRP/MS run. By default, the Use as Supply in MRP option is getting the enabled status from the structure by-product line.

Note: A part cannot be added as a produced part (by-product, co-product, or disassembly component) if it is already a parent to the main product. For example, if the produced part has a structure and the main product is already defined as a component or produced part at a lower level, you cannot add the part as a produced part unless the Stop BOM Explosion toggle is enabled in the produced part line of the structure.
When adding such a part with the Stop BOM Explosion option enabled, it is crucial to proceed with caution, especially if the Use as Supply in MRP option is also being used.
One approach is to leave the Use as Supply in MRP option disabled in the produced part line of the structure and manually enable it after creating the shop order from a shop order requisition.
Alternatively, if both the Use as Supply in MRP and Stop BOM Explosion options are enabled, the planning engines will still identify the produced part supply. However, there may be instances where the produced part supply generated from supply proposals of planning engines includes a part that has already been processed in the MRP execution. Consequently, this planned supply will not be included in the netting process. Unnetted Planned Supply MS/MRP action message can be used to identify when such occurrences happen.

Cost Distribution

General Information

The valuation of manufactured products can be determined by using cost distribution factors. The cost distribution factors provide a means of distributing costs of materials, operations and general overhead cost between the main product and the additionally produced parts (by-products, co-products and disassembly components). When not using cost distribution, the valuation of the main product is determined by removing the standard cost of the additionally produced parts from the sum of the material, operation, and general overhead costs.

Shop order cost distribution is described in detail in Shop Order Cost Distribution

Standard cost calculation for by-products is described in Cost Calculation