Types of Parts: There are many types of parts. When a part is created it is assigned a Part Number. When that part is manufactured it is labeled with that part number. Through the life cycle of a part it can change its part number. The part number can change from Semi-Finished Good part number to a Finished Good Part Number when the part is completed. It can change from Finished Good to Non-Functional Unit to Refurbished Unit or Scrapped Unit when the product is returned for repair. The reason the part number changes is to keep track of the part's condition. This keeps from accidently selling a scrapped unit to a customer. It also allows for proper valuation of inventory so that Refurbished or Scrapped Units can be valuated with a monetary value lesser than a Finished Good. Saves on taxes and what not.
- Raw Material parts are typically things like steel, wood, silver, silicon, petroleum, or oxygen in which further processing is required to make it into usable part.
- Sub-Assembly parts are parts that can be used in building another part or can be used to repair a part.
- Semi-Finished Goods could be parts that are mostly finished but needs to be further processed like specialization or branding to make them a Finished Good. They can be replacement products without all the fancy packaging to lower costs in repair exchanges. Sometimes I've heard semi-finished goods as being referred to as Brown Box Units.
- Finished Good parts are usually parts that are considered to be sellable to the end customer.
- Digital Good parts are digital bits that are to be placed on a device or some form of medium.
- Non-Functional Units are parts that are returned for repair. They are marked with a Non-Functional Unit part number and either placed in a queue for repair or scrapped based on their initial functional evaluation. Sometimes these Non-Functional Units could be held in inventory until the company decides that replacement demands require allocating resources to repair units. Its a means of delaying extra costs. This means that sometimes when you return a product you may not get the same unit back. It depends on what the product is and how important it is for the customer to get that same product back.
- Refurbished Units are parts that have been returned and have been successfully repaired. They are given a Refurbished Unit part number to signify that this unit has been repaired. Note that sometimes units are returned at the same time an exchange unit (Refurbished Unit or a Semi-Finished Good) is sent out simultaneously to speed up service for a customer. This means that an inventory of Refurbished Units can be on hand at any repair or exchange center.
- Scrapped Units are parts that are considered non-repairable and are scheduled to be destroyed. Once these units are destroyed they are removed from inventory tracking and accounting does some form of write-off.
Please see (Baseline Conceptual Models Commentary) for further details on what conceptual models are to be used for.