2. Bill of Material Management
A Bill of Material (BOM) is a comprehensive list of the components that are used in your schematic along with the detail of the manufacturer’s parts, their number and quantity.
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. The more detailed and accurate the details of the bill of materials are, the better you can make decisions about how to get the product into the customer’s hand efficiently and cost-effectively.
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.
A bill of materials explosion displays an assembly at the highest level broken down into its components and parts at the lowest level, while a BOM implosion displays the linkage of individual parts at the lower level to an assembly at the higher level.
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.
You can analyze the production variance based on the actual on-site production, and the registered BOM can be the base of your production stock management, with the link with other functions. It Validates Single-level and Multilevel bill of materials. Evaluate and validate levels of BOM (Bill of Material), accuracy, completeness, and consistency.