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You are here3B. Production planning / Product Groups

Product Groups

By Anonymous - Posted on 25 December 2011

Group of products derived from a common product platform. These goods or services use similar or same production processes, have similar physical characteristics, and may share customer segments, distribution channels, pricing methods, promotional campaigns, and other elements of the marketing mix. Products comprising a family are usually priced and discounted as a package. Several product families make up a product portfolio. Also called product family or product line.

Capacity is the ability to produce goods and services. For the time span of a PP, it can be expressed as the time available in a given period. Over the time span of the PP, large changes in capacity are impossible or very difficult to accomplish in this period. However, some things can be altered and it is the responsibility of manufacturing management to identify and assess them. Usually the following can be varied:

- People can be hired and laid off, overtime and short time can be worked and shifts can be added or removed;
- Inventory can be built up in slack periods and sold or used in periods of high demand;
- Work can be subcontracted or extra equipment leased.
Each alternative has its associated benefits and costs. Manufacturing management is responsible for finding the least-cost alternative consistent with the goals and objectives of the business.


Product groups are classified according to whether they are mutli-level or single-level.

A product group is multi-level if it contains other product groups. However, the lowest level in a product group hierarchy always consists of materials.

A product group is single-level if its members are materials only.

A material or product group can be a member of more than one owner product group.

Oracle EBS 11i/R12
In oracle you can define an item with bom type of product family. Next you can add the items to that belong to the product family

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