This is for the lumber cutting industry. It allows you to cut (consume) one piece of lumber and produce (yield) multiple smaller pieces from it. If the resulting smaller pieces do not consume 100% of the source item, the remaining scrap is equally distributed across the items produced.
Here is a sample using the cut lumber screen. In this example, I have (100) 96” long 2x4s and I am cutting (2) 32” boards and (3) 10.125” boards from each one. The total length of the new boards is 94.375”. The cost of the remaining 1.625” of scrap is spread across the boards that are produced. If you look at the Ext. Usage column, you see that the two records add up to exactly 100 – meaning that we will consume exactly 100 2x4x96P boards while producing 5 shorter boards.
In this example, I am cutting short boards out of a long board. I can just as easily cut circles out of plywood. Just enter the square footage of the plywood sheet and the square footage of the circles in inventory. The functionality and procedure is the same.
After Creating the Work Orders, the next step is to go into the Confirm/Cancel Work Orders function and confirm. This is where you can really see what was done. I have 2 work orders. The item being produced is what I entered on the bottom of the Cut Lumber screen and the raw material for each is the item that it was cut from. Since I cut 100 96” boards, I am producing 500 total short boards.
When the cut is issued, we assign a Cut Number to each work order created in the process. This is then posted into the BOM history and the item history so you can audit the cut if needed.
From the Inventory history, you can easily see we consumed exactly (100) 2x4x96P boards and produced (200) 2x4x32P and (300) 2x4x10.125P boards.
Cut Lumber Screen (cutting FLITCH)
There is another method of cutting. If the Item to Cut (FLITCH in this case) has a base UOM of BFT (Board Feet) in inventory the cutting program works a little different. The program does not look treat it as though you are cutting a bunch of 1 BdFt boards, it treats is as though you are cutting several boards that total 17281 BdFt. It does the math a little different, but comes up with the same results. A qty of 17281 of FLITCH will be removed from inventory and all these other items will be added. If you ignore labor cost, the inventory value does not change because the total cost of that FLITCH is transferred to the items that are made.
In this example, I have 17,281 BdFt of raw flitch and I am producing 22 different items from it.
One last note: when the program is creating the work orders, if the math does not come out exact, it will split the last item into two separate work orders (the last with a qty of 1). This is so the item that we cut is used exactly at 100% (no small decimal left in inventory). In this example, the last item if 108 was split into two separate work orders of 107 and 1.