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    Bill of Materials 

 

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Bill of materials or BOM.

BOM is the term used to describe the "parts list" of components needed to complete a saleable Finished Goods (end-item). 

Referred as recipe.

  • A bill of material is a formally structured list for a ‘father item’ or factory made item (semi-finished or subassembly or finished) which lists all the component parts of the father item with the name, quantity, and unit of measure of each component, called ‘child item’ in ERP. Whenever the design changes user should update the BOM. ERP will give ‘revision number’ automatically. User can make BOM up to ‘n’ level, in other words there is no limit in ERP for making multi-level BOM.   The semi-finished goods is also called ‘Factory made item’.

  • Topics discussed:  Bill Of Materials, BOM, ERP Modules, BOM For Food, BOM For Plastic, BOM For Discreet Production, Where BOM Is Used, What Is BOM, Bill Of Materials For Manufacturing Industry, Samosa, UPS, ERP, The Kick-Start Meeting, ERP Presentation, Video Lecture By Jyotindra Zaveri

  • Zaveri has helped different verticals to make Bill of Materials.

  • Examples of BOM such as, BOM for automobile ancillary, BOM for discreet product, BOM for construction industry, BOM for corrugated box, BOM for large industrial systems, BOM for special purpose machines, BOM for project base industry BOM for assembled products, etc.  is shown above.  To view various examples of BOM click on the thumbnail view above.   These examples are just to learn the concept of the BOM, actual BOM may be somewhat different than shown above.

  • BOM module is an important module in ERP.  BOM is a pivot around which ERP rotates.  However, this requires good amount of time and effort to make the master data file.  Usually the technical person, design experts, or a person who knows how the final product is made prepares the BOM.  In other words, anybody and everybody in an organization is not permitted to access the BOM master.  This is one time effort, but must be done to get full benefit of ERP software.  If the product is not standard or child items are not standard, it may result into many BOMs, that is why it may be a good idea to standardize the child items as much as possible.

  • In ERP create the BOM master database.  User can export the BOM to MS Excel sheet format.  The BOM view shows ‘father item’ and ‘child items’ relationship graphically.

  • The BOM may change depending on the Finished Goods (end-product) and production method.  For example, in case of process production, there will be only one child (main raw material) and one father item.  Whereas in case of assembly production, there may be many child items.  Add similar BOM feature allows creating a BOM from existing BOM of a similar product and then saving after minor changes as new BOM – tremendous time saving feature for large BOM.

  • Bill of Material with "Copy similar BOM" feature.  User can print the BOM using 'BOM reports menu' in MS Excelsheet format.  The excel sheet can be saved as soft copy or user can print the excel sheet from Excel.

  • Bill of Material for furniture industry.  Left side shows "child items".

  • Where BOM is used?  The BOM is integrated with many ERP business processes as follows:

    • BOM can be used for preparing a work order (job card) for own production or at the third party.  This work order shows the list of child items that is required to produce the father item.  BOM is also used in preparing the cost sheet.  Marketing executives can use BOM for preparing estimates.  BOM can be used for MRP or Material Requirement Planning.  To compute the shortage quantity the BOM is exploded automatically by ERP software to list the item/s required to be purchased to fulfill a given sales order (ORI).  This MRP report, in turn will help purchase officer to procure items.  BOM master is also helpful in keeping track of revision numbers or engineering changes, called R number.  This R number is also reflected on the work orders etc. to help user.

 

Video clip showing excerpt of the kick-start meeting ERP presentation by Zaveri.  CRP run.  ERP training to users.

Jyoti presented basic ERP concepts, production module integration with BOM, to tips on ERP implementation to the management of an engineering manufacturing enterprise, having two factories and head office in Mumbai.


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