Cloud and Next Generation of BOM

by Oleg on October 19, 2011 · 9 comments

Few days ago, I was talking about some interesting patterns of PLM and ERP implementation. In a nutshell, the integration between PLM and ERP systems presents a significant level of implementation complexity. The need to synchronize between PLM and ERP storage is a complicated process that different among many companies. In many situations, service providers hired to make this implementation.

Earlier, this week, I stumble around Arena Solution website. The following white paper caught my attention – Beyond BOM 101: Next Generation Bill of Materials Management. Take your time and read this 8 pages document. It is worth reading. Despite the fact Arena is bluntly marketing their cloud BOM management tools in this paper, I found it explaining very well all challenges a company can face with regards to the management of Bill of Materials and related activities. According to Arena’s opinion, the following picture represents a very typical situation when BOM created by multiple people involved into the process of the project.

To answer the challenge, Arena presents another picture presenting next-generation bill of materials tool that bridges the design and manufacturing world. I tried to abstract the Arena name on this picture. The picture made me think about how the solution solves the problem.

I found that this architecture contains the same PLM-ERP implementation pattern that creates a high level of implementation complexity and requires a significant effort to be spent in order to be integrated between engineering Bill of Material in PLM and manufacturing BOM in ERP.

Now, let me get back to the Arena tools. Arena is suggesting “cloud BOM” solution. Does it mean the integration between BOM in Arena and manufacturing BOM in ERP will be different? Frankly, saying, I don’t know the real answer. Arena’s white paper didn’t say a word about how to integrate Arena BOM with ERP.

What is my conclusion? I think, cloud and other web-based solution can introduce many advantages. One of them is to streamline BOM access by members of the team. Think about BOM as a Google spreadsheet and you probably can get excited by how it may change the way you work. However, cloud technologies introduce new challenges (especially in the field of integration) that need to be solved. Just my thoughts…

Best, Oleg

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  • Fabri Barbieri

    I think this is non-sufficient approach;core problem is not how to reach BOM authors (via cloud or via private web portal is not fundamental) but how to manage structures evolution of the BOM in a fully integrated (from requirements to manufacturing) change managemt scenario.

  • beyondplm

    Fabri, thanks for pointing on this topic. You are actually right- to be able to manage structure evolution is a very important thing. However, in my view- this is another topic. Regardless on how we manage BOM, there is a need to access it in downstream /mobile /remote. Don't you think so? Best, Oleg

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  • achandran

    My views on this are very similar, they (ARENA) don't really address the issue of BOM integration between PLM and ERP. “Single version of truth” is the main mantra that all PLM vendors advocate, so don't really see a differentiator. Typically there is one way integration from e-BOM to m-BOM available from most PLM vendors. In reality i haven't seen cases where there is two-way collaboration scenarios…. Have you?

    I'm sure there is value in it… Maybe this is where ERP based PLM offerings may have some advantage….again it is a fight for who owns the Data (Unified vs Integrated)

  • beyondplm

    Anup, you are absolutely right, in my view. Integration doesn't really work, and it is all about data ownership in most of the cases. I reminded me my old post – The ugly truth about PLM-ERP monkey volleyball – http://plmtwine.com/2010/03/05…. Best, Oleg

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