Product Design /BOM/formual/recipe
Engineering Change Management[1]
Engineering Change Control[2]
Immidiate Replacement [3]
Time Phased Replacement [4]
Interplant Requirements [5]
Scrap Quantity[6]
Scrap Percentage (shrinkage factor)[7]
Component Scrap (scrap factor)[8]
New Product Introduction Management[9]
Manufacturing Lead Time                           * planner Time                                           * Release time                                          * Pick Time                                               * Build Time                                              *Queue Time                                             * Set-up Time                                            * Run Time                                               * Wait Time                                              * Transit (move) Time [10]
Raw Materials [11]
Component Parts [12]
Semi-finished Goods[13]
Finished Goods[14]
Single Level Bill [15]
Multi Level Bill
Phantom Bill [16]
Common Parts Bill[17]
Alternative Parts
[1]
Enas refaat:
Our bills of material are an essential part of an MRP system. It is in the bill that we define what our products are.  In any on-going business, our produts will be continually changing in some form or other and so it is essential that we have an organized procedure for implementing changes.
The whole question of the oganization of engineering changes brings two questions to mind. First who authorizes the change and secondally, who implements the change.
[2]
Enas refaat:
This is the text book  approach to managing engineering and bill of material changes, and it works. The concept of this approach is that a senior man in the organization chairs the enginering change order board.  He then has beneath him a group of departmental heads on the board.  The engineering change note controller is usually a clerck who does'nt need great technical knowledge of the products. Anyone can request a change, but the rules are that with any request for a change, the full documentation backup must be provided.  the engineering change note controller then sends copies of each proposed change to each of the department heads on the engineering change order board.  At the change note meeting, each member is expected to have prepard answers for each change note theyhave received.  Thus a decision can be made in an organized manner.
[3]
Enas refaat:
This is normally used for a safty problem on a high failur problem with our cusomers, so it is decreed that no more product is to be moved out of the factory untill the changes are encated.  To do this the part number to be phased out has today's date put in the out field, the new part is added to the bill with today's date. MRP will then plan from today on for the new part to be applicable.  If there id insufficient stock, the kits will not be complete from the stores and we will have to wait untill the material has been obtained before we can continue with the build program. This is obviouslly only used in severe cases.
[4]
Enas refaat:
This ia a normal way of implemeting a change. After investigating the change itself, it is found that we want to use up a certain amount of our existing stock. As the new item will only be available after purchase order have been placed, it is decided to implement the chage at some date in the future.  That date is important as the part that is to be phased out will have that date put in the "outfield"  and the new part will be added with the future date entered in the "in-field".  MRP will now plan for the exsiting part to be continued to be used for kitting up to that date and will then plan for the new part from that date on, and not use the old part any longer.
[5]
These are typically demands from one division of a company on another.
They can either be components, sub-assemblies or finished products.  When divisions operate an MRP system, it is not unsusal for a planned order release from the customer division to be entered directly into the "supplier" divisions's system.
[6]
Enas refaat:
This is a scrap allowance made to cover set up scrap, which is entered as a quantity in an item master field.  The concept is that  each time you make a quantity, a certin amount of the product is wasted during the set-up process.  The quantity is not related to the order size but is once per order. Typical cases of this are in the printing industry where they need to ensure the colors are the right shade so they will print a small amount   and then check , rectify and print some more and eventually when they are satisfied, they can then start the actual poduction run.  They need to plan for the material which is used during this process.
[7]
Enas refaat:
This is entered in the item master as a percentage.  The concept is that a certain percentage of this item is always scrapped during the manufacturing process.  Thus additional quantities of its material will be needed to cover that being scraped during the manufacturing process either the order quantity or the gross requirement is inflated by the scrap percentage.
[8]
Enas refaat:
This type of scrap allowance is where one part is found to be scraped more when used on one particular type of assembly than other.  Thus it needs to be identified on the bill of material product structure record as a perentage.  This way the requirement is inflated only by the percentage needed depending upon where it is to be used
[9]
Enas refaat:
When new products are being developed it is important that the launch is well coordinated. Too often the schedule launch date has to be revised due to the development project running late.  If marketing are not in regular contact with developemnent and manufacturing, they could well organize the launch with the special advertising before product is even available.  To prevent this the project and launch should be an item on the agenda at the sales and operations planning meeting   
[10]
Enas refaat:
- Planner Time  The time for the planner to firm the order from when he receives the action message.
-Release time  The time allowed for raising the works order documentation and delivering it to the stores.
- Pick Time  This is the time for the stores to pick all the parts required for the manufacturing order. In some systems this is a separate field but in others, this becomes the first operation on the routing.
-Build time This is made of the five elements: queue, set-up, run, wait and move time.  These are repeated for each operation on the routing. 
-Queue Time Queue time is the elapsed time from when a job arrives at a work center to when the set-up is started.
-Set-up Time Set-up is the time it takes to prepare the machine and be able to produce the first good part.
- Run Time Run Time is the time it takes to perform the work needed on one part for one operation.  For planning purposes a standard time is established and this timemust  be multiplied by the  batch size to determined the nubmber of standard hours.
- Wait time  Wait time is the time a job stands wainting to be moved to the next work center once the last component of a batch has been completed at the current operation. 
- Treansit (move) Time Move time is the time it takes to transport a works order from one work center to another
[11]
Enas refaat:
APICS defines raw material as purchased items or extracted materials that are converted via the manufacturing process into components and/or products. This is a fine difference between raw materials and components.  The key to this difference is that raw material is limited to being converted via the manufacturing process, whereas components "go" into a higher level.  A raw materila is a component, but a component is not necessarily a raw material.   When we consider the term component in respect of bills of material, a component can be a major sub-assembly used on an end item.
[12]
Enas refaat:
A component is defined by APICS as a raw material, ingredient, part or sub-assembly that goes into a higher level assembly, compound, or other item.  This term may also include packaging materials for finished items.  As a component is used in a higher level,  it tells us that a component is a dependent demand item, so the demand for it can be calculated.   This makes a component suitable to be controlled by MRP using the bill of material explosion logic.   
[13]
Enas refaat:
These are defined as products that have been stored uncompleted awainting final operations that adapt them to different uses or customer specifications.
This includes lower level manufactured parts that will be used in the next level of assembly, sub assemblies and major assemblies that will go into the final product.  Usually these items are not committed to a particular assembly or order, but are made to satisfy a gross requirement for this part nubmer.  They are then issued to a manufacturing order to build a higher level assembly or end item.  They are classed in many companies as work in process, even though they are held in a store.
 
[14]
Enas refaat:
In APICS it refers you to the term end item.  In addition there is a difinition for a finished goods inventory.  An end item is defined as a product sold as a completed item or repair part, any item subject to a customer  order or sales forecast.  Finished goods inventories is defined as those items on  which all manufacturing operations, including final test, have been completed.  These products are available for shipment to the customer as either end items or repair parts.
[15]
Enas refaat:
This is the way that bills are entered into our systems.  A single level bill consists of the parent code and the items that are used to make it.  (its components) items used to make these components are on other single level bills.
[16]
Enas refaat:
This is a structuring technique used typically for non stocked sub-assemlies.  It effectively conmbines two levels of bills into one. 
It allows a sub-assembly to keep its bill format, but to be made and consumed during the manufacturing process without it being sent back to stock and issued on a higher level kit.
[17]
Enas refaat:
AS an example we will use a vacume cleaner.  Although it is the same basic item, a few parts can vary in color or may be specials for certain customers.  A chain store may want their own name on the bag for example.  The result is that we will have a large number of bills, one for each final product with only very minor differences.