Hi Mahesh,
Product group is basically a collection or group of materials that are similar with regard to their sales behavior, production requirements, manufacturing procedure, product design etc..... product group is used only for planning purpose
For example In cycle manufacturing company there are lot products (cycles) for Woman, Men and Children...Now all the cycles manufactured for women are clubbed in one product group, cycles for men one product group and cycles for children one product group..
The criteria to define about the product gruop will be decided by the business like for example product group Soft Drinks in this one one can include pepsi ,cola, thums up etc and again within thums up you can divide 100ml, 250ml and 500ml as products. BOM and other master data will not be the criteria to define products group.
Qauntities will decided at product group header level...for example sales dept has decided to sell 100 pieces of soft drinks in east region of India and then they will maintain out of 100 pieces, 50% will be cola, 20% will be thums up and 30% will be pepsi.
Again 50% of cola product gruop will be 100% from this 40% will be 100ml and like wise.
Now always aggregation factor is one.. now it has got no importance...Proportion factor is nothing but