In this week, the scenario will specify an existing problem with the BOM that affects the aggregate plan and MRP. You need to evaluate the problem and propose a remedy for the problem.

You are working in a printer manufacturing company. Currently your company produces six different configurations of a similar product (assume a printer that competes with Hewlett-Packard). Engineering changes occur on a frequent basis to correct quality or performance issues, and this means that a new part number and new item become part of the BOM. The new part replaces an old part that was causing the quality or performance problem. Engineering changes can be implemented at any time throughout the year as company policy stands today. This frequently results in production mistakes where old parts are used after the engineering change has been issued. In some instances, old parts and new parts have been used and shipped in the same order to distributors or retail customers.

Develop a proposal plan for handling engineering changes in a more controlled manner so that the BOM problems mentioned above are eliminated and the planning process is improved. Present the proposal as a memo to your boss, Mr. Matt R. Plann, the director of material management.