What Does BOM Management Mean? What Are the Purposes?
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What Does BOM Management Mean? What Are the Purposes?

What does BOM management mean? What are the purposes? In manufacturing management information systems, BOM is often mentioned. BOM is the "Bill of Materials", also known as the product structure table. The Bill of Materials refers to the list of parts and components required for the product and its structure.
Published: May 12, 2022
What Does BOM Management Mean? What Are the Purposes?

Introduction to BOM Management

BOM management, that is, Bill of Materials management, refers to the process of maintaining and controlling the establishment, circulation, change, settlement and other links of BOM.

As a data file, BOM management is the basis for the successful operation of the ERP/PDM system, and is the most basic management in the field of enterprise management. First of all, the BOM is the framework that constitutes the ERP system. To make the ERP run well, the enterprise must have a sound and mature mechanism to maintain the BOM establishment and change. From another perspective, the BOM table changes are well managed, which is more important than BOM filing management; secondly, in the entire product life cycle, PDM takes the data warehouse (all systems can share one database) as the underlying support, takes the Bill of Materials (BOM) as its organizational core, and defines the all-engineering data and documents of the final product are linked to realize the organization and management of product data. It can be said that BOM management is a very important step in product life cycle management.

Purpose Of BOM Management

1) By establishing a structured material BOM, it is convenient to clarify the material requirements for production, procurement and outsourced processing;

2) At the same time, according to the determined basic BOM, it is convenient to determine the customer's product BOM when facing the customer's individual needs.

Specific Uses of BOM Management

1) The basis for the planning department to prepare the plan.
When the company receives the order, the planning department will review the order progress according to the delivery date of the order, combined with the BOM and inventory information, so as to prepare the production plan.

2) The basis for the purchasing department to purchase materials.
According to B0M information, the procurement department can purchase materials in a timely and appropriate amount to avoid excess or shortage of inventory, and it can also save a lot of time for the pre-purchase preparation work, make the procurement cycle more abundant, and ensure that materials can be purchased in time. In addition, the relevant descriptions such as the code and model in the BOM are detailed, so that the purchased materials are clear at a glance, and there will be no phenomenon of being overwhelmed.

3) The basis for the delivery of materials by the logistics department.
With the BOM, the logistics department can send materials directly according to the material code and material quantity in the BOM, which is convenient and fast, and can greatly improve the work efficiency and work quality of the material keeper.

4) The basis for the financial department to calculate the cost.
The financial department can clearly calculate the material cost required for each product subassembly in the manufacturing process through the BOM, so as to control the cost and avoid unnecessary waste.

5) Reference for technical department to reduce product cost.
The technical department will carry out cost reduction according to the BoM and the corresponding unit price of materials. For example, in the rear five-seater steps, use cheap plastic profiles instead of aluminum profiles.

6) Arrange important documents for the production line.
From the BOM, it can be clearly seen whether a certain material is assembled in the chassis workshop or in the final assembly workshop, and at which station it is assembled. Production scheduling can easily refer to the BOM to arrange production.

7) The basis for the sales department's bidding quotation.
The focus of the bidding work is on the price, and the cost corresponding to the specific product configuration can be calculated through the BOM to provide a basis for the bidding quotation.

For an enterprise, efficient material management can not only track the status and changes of raw material procurement in real time, and ensure that the raw materials required for the production and operation of the enterprise arrive on time, but also serve as a reference for sales staff when making business opportunities quotations, and help enterprises easily realize cost control, promote enterprises to improve efficiency and reduce costs.

Summary

A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts and components, as well as the quantities of each, needed to manufacture a product.

A well-defined BOM helps companies:
  • Plan purchases of raw materials
  • Estimate material costs
  • Gain inventory control
  • Track and plan material requirements
  • Maintain accurate records
  • Ensure supply robustness and reduce waste
Published: May 12, 2022 Source :sunways, Source :sunways

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