In manufacturing management information systems, a BOM is often mentioned. A 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 processing instructions.
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 a BOM.
A good BOM management data file is the basis for the successful operation of the ERP/PDM system and is essential to enterprise management. The BOM is the framework that establishes the ERP system. To make the ERP run well, the enterprise must have a sound and mature mechanism to establish the BOM and maintain its updating. From another perspective, the management of BOM table updates is just as important as the BOM establishment. During the entire production cycle, Product Data Management (PDM) uses the BOM as its organizational core, to assure the efficient organization and management of product engineering data and documents. BOM management is a very important aspect of production management.
Purpose Of BOM Management
1) By establishing a well-structured BOM, it is convenient to clarify the material requirements for production, procurement and outsourced processing.
2) By following an established BOM, it is convenient to refer to the customer's product BOM when discussing the customer's individual requirements.
Specific Uses of BOM Management
1) The basis for the planning department to prepare the production plan.
When the company receives an order, the planning department will prepare the BOM and inventory information, and prepare the production plan to meet the delivery date of the order.
2) The basis for the purchasing department to purchase materials.
According to the B0M information, the procurement department can purchase the appropriate amount materials in a timely manner to avoid excess or shortage of inventory. This can also save a lot of time during pre-purchase preparation and make the procurement cycle more efficient. Relevant material descriptions, models, code numbers etc. of the BOM are finely detailed, so that the purchasing of materials is clear at a glance.
3) The basis for the delivery of materials by the logistics department.
With the BOM, the logistics department can send materials according to the material codes and quantities in the BOM. This is convenient and fast, and can greatly improve the work efficiency and work quality of the material handlers.
4) The basis for the financial department to calculate the cost.
The financial department can clearly calculate the material costs required for each product part 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 can carry out cost reduction according to the BOM and the corresponding unit price of materials. For example, in some applications, inexpensive plastic components can be used instead of more expensive aluminum components.
6) Arrange important documents for the production line.
From the BOM, it can be clearly seen whether a certain part should be assembled in the component workshop or in the final assembly workshop, and the assembly process can be planned accordingly. Production scheduling can be easily arranged by referring to the BOM.
7) The basis for the sales department's bidding quotation.
The focus of bidding is on the price, and the cost of specific components with specific product specifications can be calculated using the BOM, providing a clear basis for bidding quotations. For an enterprise, a BOM will ensure efficient material management by allowing the status of raw material procurement to be tracked in real time. Sales staff can refer to the BOM when evaluating business opportunities and making quotations, helping to improve efficiency and reduce costs.
Summary
A BOM is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts and components, as well as the quantities of each, and proceduers 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
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