Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

17.2.1b The Intermediate Part

Intended learning outcomes: Identify the intermediate part used simultaneously as a component in higher-level products.



Continuation from previous subsection (17.2.1)

According to Figure 1.2.2.1, a component may first be a raw material or a purchased part. In reality, a product often has hundreds, or even thousands, of such components. These are grouped into product modules or intermediate products (in-house parts [that is, parts produ­ced in-house], semifinished goods, or assemblies). This takes place for various reasons:

  • A module may be used in several different products. Under certain circumstances, it is sensible to produce or procure this inter­mediate product with a logistics characteristic different from that of the higher-level products.
  • A module may be either produced in-house or purchased and thus acts as a point of differentiation for logistics purposes.
  • A module corresponds to a design structure level or production structure level.

An intermediate product may itself be made up of different components and may also be used as a component of various higher-level products. Figure 17.2.1.3 formalizes this fact in two different hierarchies,[note 1702] which refer to the upper and lower levels of the multilevel bill of material. See also the two intermediate products in Figure 1.2.2.2.

The creation of intermediate parts may be repeated in several levels. Intermediate parts lead from the single-level product structure to a multilevel product structure. To illustrate this, the cookbooks of a professional cook will contain multilevel recipes, that is, semifinished goods as components of the menu that are prepared in advance or purchased.

Fig. 17.2.1.3       The intermediate product used simultaneously as a component in higher-level products.




Course section 17.2: Subsections and their intended learning outcomes

  • 17.2 The Master Data for Products and Processes

    Intended learning outcomes: Describe master data of products, components, and operations. Explain the data structure of item master, bill of material, and where-used list. Disclose the data structure of work center master data, the work center hierarchy, as well as for operation, routing sheet, production equipment, bill of production equipment, and bill of tools.

  • 17.2.1 Product, Product Structure, Components, and Operations

    Intended learning outcomes: Present the concept of master data. Explain the production order as a collection of master data. Describe a simple product structure.

  • 17.2.1b The Intermediate Part

    Intended learning outcomes: Identify the intermediate part used simultaneously as a component in higher-level products.

  • 17.2.2 Item Master Data

    Intended learning outcomes: Present the concept of the item master record. Describe the attributes of the technical information and the stockkeeping information of the item master record. Identify attributes of the item master record for information on costs and prices.

  • 17.2.4 Work Center Master Data

    Intended learning outcomes: Present the work-center business object. Describe the attributes of the work-center master record relating to capacity, concerning costs, and for calculating the lead time.

  • 17.2.5 The Work Center Hierarchy

    Intended learning outcomes: Present the concepts of workstation and cost center. Explain the work center hierarchy.

  • 17.2.6 Operation and Routing Sheet

    Intended learning outcomes: Present the operation business object in association with the routing sheet. Describe its attributes. Identify the work center where-used list.

  • 17.2.7 Production Equipment, Bill of Production Equipment, and Bill of Tools

    Intended learning outcomes: Present the concepts of bill of production equipment and bill-of-production-equipment position as well as production equipment where-used list. Produce an overview on collective tool, bill of tools, bill-of-tools position, and tool where-used list.