Page 240 - Orlicky's Material Requirements Planning

CHAPTER 11 Product Definition 219

In this example, a diesel option (letter D in position 3 per Table 11-1) coupled with
56 hp calls out S-bill 201, the engine, and so on. In this way, the final assembly schedul-
ing system can be integrated, or logically linked, with the MRP system.
In conclusion, let us briefly discuss who does and who does not have to restructure
BOMs as a precondition for successful MRP system operation. Where the product line
consists of a limited number of items or models, modularizing the BOM or any other
changes for the sake of BOM structure may be unnecessary. Master scheduling and MRP
can be based on models and on their BOMs, provided that the model codes define prod-
ucts uniquely.
On the other hand, BOM restructuring is called for where the product line consists
of a virtually unlimited number of end-product configurations owing to the complexity
of design and a proliferation of optional features. The study of how BOMs should be con-
structed then becomes a vital part of the work of designing and implementing an MRP
system.

BIBLIOGRAPHY

Orlicky, J. A., G. W. Plossl, and O. W. Wight. “Structuring the Bill of Material for MRP.” Production &
Inventory Management 13(4) 1972.
Structuring the BOM (Brochure Form No. G320-1245). New York: International Business Machines Corp.,
1973.