Page 321 - Orlicky's Material Requirements Planning

300 PART 3 Managing with the MRP System

different parts are going many different ways. One way to handle this problem is to have
a mini-BOM to process these parts with the supporting routings. These BOMs and rout-
ings then can be used in the standard fashion to take components and process them into
parent parts. The amount of processing to bring the face to a usable condition is very
small, so the same part number is used to track this item. Also, this bill of repair shows a
new part, a gift box, that is required to complete the product for sale.
Recall that for this particular item, the face had a 50 percent chance of being replaced
or reused. This is called an occurrence factor. Within the repair/remanufacturing environ-
ment, some repair operations do not occur 100 percent of the time. The occurrence factor
is associated with how often a repair is required to bring the average part to a serviceable
condition and is expressed at the operation level in the router. The planning system must
have full visibility of the repair BOM, including the occurrence factors, to plan material
and capacity effectively. For the example used here, the BOM entered in the planning sys-
tem would be

242095 Clock, refurbished
242503 Inner works 1 each
142503 Inner works 1 each
223291 Hands 2 each
123291 Hands 2 each
123032 Face 0.5 each
223032 Face 0.5 each
142095 Clock disassembly 1 each
142503 Inner works –1 each
123291 Hands –2 each
123032 Face –0.5 each
136958 Clock 1 each
239853 Gift box 1 each

This can quickly become very confusing. “A picture is worth a thousand words,” so
Figure 17-2 is the same BOM represented in a graphic form.
In this representation of the BOM, it is much clearer that the new face (223032) and
the gift box (239853) are parts that are purchased from the outside and used in the assem-
bly. The core clock that is returned (136958) is expected to provide the chassis (142095),
the hands (123291), the inner works (142503), and the face (123032) required for the
reassembly process. However, this disassembly process yields the face only half the time.
The other half of the time a new face (223032) is required to complete the finished prod-
uct. The inner works and the hands are expected to require additional processing after
disassembly before they can be reassembled.