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Bill of Material Management

(The Product Recipe that makes up a system . . . . . . .)

The BOM allows the user to define a product structure together with essential information about the nodes (i.e., part master data) in the form of a list. Each row shows one subordinate part. The parts are described by part number, part name, quantity needed for the upper part, etc. In this way, a bill of materials describes the composition of an end product or an intermediate product (assembly).

A BOM is a list of Raw Material, Parts, Components, Assemblies and Sub-Assemblies in a hierarchy format needed to make one unit of the Product. BOM is the Master Data in the Production Planning function of Manufacturing and central to other functions as well. BOM begins with defining the base quantity of the product that is to be produced, followed by linking various components along with its quantities relative to the base quantity. Every item of the Bill of Material comprises of Item Number, Code, Name, Description along with Quantity, Unit of Measurement and Other data. The BOM Data is always core for any manufacturing process as it provides all the information required to build a product. A centralized source used to manufacture a product and serves as a basis for Product Design and Manufacturing business activities – R&D, Production, Logistics, Procurement, Inventory, Pricing, and Sales are all dependent on BOM data. Products cannot be produced without a BOM, and BOM mistakes are costly. A BOM is often tied to a Production Order, whose issuance may generate Reservations for the components in the Bill of Materials that are in stock, and Requisition for the components which are not in stock.

(Naming the BOM Parts . . . . . . .)

Building any product (irrespective of any industry it belongs to) needs to get started with necessary steps of defining the list of Parts which would include vital information such as:

  1. Part Number

    Assigning a part number to each part would help in identifying the part by its number as a reference to the part.

  2. Part Name

    Capture the unique Part Name for the users reference purpose , which would help them to identify the part more easily.

  3. Part Description

    This provides detailed description of the part, which helps the users to identify and distinguish similar parts more easily.

  4. Part Type Name

    It’s a value that is selected by the user to categories the part with the same basic attributes, such as Raw Materials, Semi-Finished Goods, Sub-Assembly, Assembly or Finished Goods. Parts must be assigned to Part Type which determines whether the part type is intended for a specific purpose such as a configurable material or a process material; Whether the part is assigned internally or externally; The number range from which material is drawn; What procurement type the material has (i.e. whether it is manufactured in-house or procured externally or both; and so on.