How to define Stock Disposition

Stock Disposition in your PLM system to sync with ERP?

Today, I'd like to discuss stock disposition starting with a short definition, ways PLM supports the activity, and a suggestion on how to define it for your company.

Stock Disposition defines an activity to phase out an old part for one or more finished goods (BOMs aka what you sell to customers). 

Engineering has at least two use cases for stock disposition, one is for phasing out a part from one or more BOMs and phasing out a part on all programs/BOMs. A third could be, a particular usage of the part on the BOM.

PLM, Teamcenter in particular, provides about four different ways to support stock disposition. One, stock disposition can be set on a part per each ECN, and that ECN can impact multiple BOMs. This approach requires companies to track ECNs downstream. Two, a maturity state (status) can be set on the part to indicate obsolescence (in case of scrap). Three and four, an effectivity can be set on the part or the BOM/sub-assembly and you can add runout to it. So which one do we choose to send to the ERP system? 

Downstream organizations have at least two use cases for stock disposition. One, the part phases out for one or more programs and two, the part phases out for all programs. How do we map PLM to ERP?


I would like to suggest that the two cases in the ERP system should be addressed. Engineering's stock disposition seems like a suggestion to the Production engineer and if we assume that, this is how I would implement the process.


One, to set disposition on a part for all programs (safety reasons), set a new maturity state or status in your PLM system that indicates obsolescence (scrap). This flows easily to the ERP and purchasing system. Don't buy this part anymore for any program.


Two, to digitally communicate stock disposition of a part on one or more BOMs, but not all, I am inclined to say use effectivity with runout but this has too many variables such as it won't work for subassemblies unless you define the Finished Good with the effectivity. Thus to keep it simple, use the part stock disposition on the ECN and add the Finished Good to the disposition. Then flow the ECN information to the ERP and let the Production team update the manufacturing BOM and inventory as needed.


And you are done! What else do you need?


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