Planned quantity to manufacture
The planned quantity of products to manufacture is the basis for the calculation of the estimated materials and the estimated hours.
Two different quantities must be distinguished:
When a production order is created, the quantity planned output of the final operation is set equal to the quantity ordered of the production order.
Single operation
The planned quantity for a single operation is calculated by means of the following formula:
Quantity planned input = quantity planned output/(yield/100%) + scrap | Quantity planned input | quantity of products on which the calculation of materials and hours is based |
| Quantity planned output | quantity of a product that is expected to come out of an operation |
| Yield | effectiveness of operation expressed as a percentage |
| Scrap | quantity lost at the start of the operation |
Multiple operations
If a product is manufactured in a succession of operations, the quantity planned output of one operation is equal to the quantity planned input of the next operation. This is the quantity of the subassemblies going from one operation to the next.
Example
Operation 20 follows operation 10. Operation 20 has a yield of 95%. Quantity planned output of operation 20 is 1000 pieces. Quantity planned input of operation 20 is 1053 (=1000/0.95) Quantity planned output of operation 10 is 1053