Page 320 - Orlicky's Material Requirements Planning

CHAPTER 17 Remanufacturing 299

assembly clock (part number 142095). A partial issue then is done to remove the 136958
clock from inventory. The 136958 clock is the carcass that has been returned for refur-
bishment. After physically disassembling this clock, the issue transaction then can be
done for the inner works, hands, and face. When a negative quantity is issued, the result
is that these parts actually will be placed into inventory as usable parts. The parent part
is received as normal. The costs also will be credited to the work order correctly. Labor
time is charged to the order just as in any other manufacturing order. Notice that the
expected by-products of this clock assembly include
142095 Clock, disassembly 1 each
142503 Inner works 1 each
123291 Hands 2 each
123032 Face 0.5 each
You cannot physically have one-half of a clock face. This fractional amount repre-
sents the probability that the face will be usable after assembly. In this case, 50 percent of
the faces will be usable for the reassembled units. The issue transaction is performed at
the end of the process, with the actual amounts realized from the disassembly process.
The parent part for this order, the 142095 clock disassembly, usually represents the largest
part of the carcass that is tracked through the process. This could be the frame of the radi-
ator, the main airframe of a plane, or the chassis of a computer.
The BOM is used as a guide for the inspector/evaluator in the teardown and eval-
uation process of an item intended for remanufacturing. Once the process has been per-
formed a number of times, the quantities for the material can be updated. Depending on
what comes off the assembly that can be reused, the BOM is modified after the evalua-
tion to create a bill of repair that represents the required scope of work. A repair BOM is
a BOM that has been created to define the actual scope of work required to return an
item to serviceable condition. This BOM results from the actual examination and evalu-
ation of an item intended for repair and is used for master scheduling and MRP explo-
sion purposes.
For the example given previously, the bill of repair could be

242095 Clock, refurbished
242503 Inner works 1 each
223291 Hands 2 each
123032 Face 1 each
142095 Clock 1 each
239853 Box 1 each
Notice that in this repair BOM there is a new part number for the inner works and
the hands, but the part number for the face has stayed the same. This is because the inner
works and the hands had to be processed through other processes to make them ready
for the re-assembly process. This is very difficult to track on a single work order because