BOM and CAD-PDM-PLM-ERP Integration Challenges

by Oleg on November 2, 2011 · 21 comments

I want to talk about Bill of Material and integration today. The reason why I’m coming to this topic is largely because I have a feeling “integration” will play a significant role in the future of product lifecycle management and enterprise systems in general. Two days ago, I’ve been writing about two approaches “unification” and “integration” in PLM. One of the main reasons why, I think, CAD/PLM companies decided to focus on “unification” is a struggle with integration. Time ago it started from integration between CAD and PDM. Since then, multiple other topics were added to the story of integration between multiple systems. So, one of the objectives companies put in front of them investing into unification was to simplify deployment of integrated systems.

BOM and Integrations

What I learned from multiple integration projects I’ve been involved for the last 10 years? Bill of Materials is the central piece of every integration story. The majority of integration topics are around how to handle BOM during all scenarios. The processes and implementation practices related to Bill of Materials are impacting in a significant way how a company will operate multiple systems (CAD, PDM, PLM, ERP).

Interesting enough, Bill of Material is also a centerpiece of all battles around how manage product data in various forms in multiple systems. It comes in a form of BOM synchronization between systems, definition of multiple BOM views, Product representations and many others. After thinking about possible integration scenarios, I’d like to come with three main challenges that exist in most of the integration projects (in most of the cases regardless on what systems are involved) – BOM Transfer, Item Data Synchronization and Single Bill of Material representation.

Integration Challenges

Challenge 1: BOM Transfer

This is a very complicated topic. Bill of Materials are everywhere. Drawings,  CAD Systems, Engineering databases, ERP and Manufacturing systems. Even sales configurations requires a certain representation of BOM. The top waste, people want to eliminate is a need to entering information manually from one system to another system. Therefore, to automate the transfer is No.1 priority for many integration projects. However, it requires mapping of data and a lot of “hand-wiring”.

Challenge 2: How to keep Item Data in Sync

Item information (or how ERP-related people saying Item Master) is a second important topic for the integration. In most of the companies, it is originated and maintained by ERP/MRP systems. However, when company is moving more towards cross-functional processes, the need to have item master information replicated and, sometime originated outside of ERP system, is growing.

Challenge 3: Where is my single BOM?

This is of the most challenging topic. Lots of companies are spending tons of time trying to decide how to maintain different flavors of BOMs in multiple systems, how to synchronize it and how to define what is the “ultimate single BOM”. Some of the companies are taking a different approach and starting to manage so called “multiple BOM”. Time ago, I spent some time discussing these topics. Read the following two blog post I published before: Is it a time for synchronized BOM? and Non-linear BOM perspective. Companies are spending lots of resources trying to find what is the right BOM management strategy. Lots of tools (including customized tools) are focusing on how to maintain bill of materials handling across multiple representations (aka systems).

What is my conclusion? BOM is a centerpiece of everything. You may lose control of 3D drawings’ versions and do everything in 2D. You can maintain change tracking manually. You may decide not to manage requirements. However, in my view, you cannot lose the control of items and bill of materials. As the number of systems involved into this process is growing, the complexity of keeping BOM under control becomes and more complicated. Many companies are avoiding management of Bill of Materials in multiple systems just because of this reason. As, one of my readers mentioned earlier this week – “you rarely can satisfy all your needs with a single system“. So, I’m expecting more “integration challenges” in coming years from implementing CAD, PDM, PLM, ERP in various flavors and combinations. Just my thoughts…

Best, Oleg

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Tagged as: Bill of Materials, BOM, CAD, ERP, Item, Item Master, PDM, PLM

  • Bradley Persson

    Hi Oleg,
       Thanks for this post!
     In the many PLM implementations I have been involved with, we were able to avoid integrating PLM with Mechanical CAD & with Electrical CAD. But in each of my PLM implementations (so far) integration into ERP / MRP was always a must have integration.
     Agree that the BOMs are a key part in PLM integrations. I always recommend managing them 1st in PLM as the BOM master. Clean Item data is also key component to successful integrations. Also found that there is a lot of integration testing involved in the process.
    I'm interested in hearing about the experiences of other PLM implementers.
    Kind regards,
      Bradley Persson

  • http://twitter.com/avwikinomics Michael Wm. Denis

    Oleg,

    So to add to this OEM / mfg view – and considering most OEMs have or are moving into Service Lifecycle Management (SLM) where the big profits are – this entails additional “BOM” Bills of Maintenance and operational Configuration Management (CM), reliability centered maintenance (RCM/MSG), technical document / content management (CMS), lease contract management and financial management (PBL, PBH, Regulatory issues such as Certificates of Airworthiness (COA), …) which bring in the MRP / MRP II and ERP integrations.

    I 1000% (10 X 100%) agree that at the center of the universe is BOM or CM.

    I also agree with your three “issues” or “hurdles” to BOM / CM “harmonization” – “unification” or “integration” – except to say I'd rephrase them this way:

    Challenge 1 – BOM / CM Harmonization – this includes semantic translations and standardizations at multiple levels and then includes partial data transfers according to the view. This also includes defining authoritative sources of data by transaction type – in other words – dynamic authoritative sourcing.

    Challenge 2 – BOM / CM Synchronization – after achieving Harmonization we need to keep it synchronized (synchronous and asynchronous) and uses the dynamic authoritative sourcing meta-data by transaction type to publish and subscribe to other systems.

    Challenge 3 – BOM / CM Utilization – after achieving the first two – then various actors utilize various pieces of various BOM / CM views and data sets to change things – sometimes base transactional uses and sometimes Product or Service improvement.

    Challenge 4 – BOM / CM Integration – this is where actors of all of the surrounding systems – both tightly or loosely coupled – utilize various pieces for non BOM / CM activities – some of which flow back into the central BOM / CM hub ecosystem.

    The difference between 3 and 4 is focus or intent – in 3 the focus is internal to the BOM / CM whereas in 4 the focus or intent is external or using the BOM / CM data sets to change a contract or forecast parts demand or finances or author an IPC or Tech manual or diagnostics or prognositcs or autonomics ….

  • beyondplm

    Bradley, thanks for your comment! You are right. PLM implementations rarely can avoid PLM-ERP integration. It is interesting you mentioned “PLM as a BOM master”. I've seen lots of situations when this topic became a longest topic to discuss during PLM implementation. Testing is an obvious element. Because most of PLM-ERP integration is a hard-wiring stuff that needs to be implementation, specifically for each company, the probability of error is very high. Best, Oleg

  • beyondplm

    Michael, thanks for the feedback and sharing examples. Yes, BOM is a center of everything. How to integrate it among all systems is a huge challenge. -Oleg

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  • Sudharshan

    Hi Oleg,

    SAP PLM integration with various CAD Tools through the Interface will nowsolve the most challanging problem of Single BOM directly generated from the CAD Structure which can be readily used in the ERP.

    Assume a Big assembly of say 1000 components readily available in CAD and now it has to be checked-into a PDM systems for Data ManagementOnce Released, This Product data is used in the ERP for further downstream logistic processes, what is the option avaibale ? Manage Drawing Revisions in PDM, ,Create Documents(Metadata) and Materials Manually in ERP say SAP, Enter all the components in SAP BOM  manually one by one,what u expect from this ?? Spelling mistakes, Redundant Data entry , Lots of time, energy and money consumed..!!

    I will now talk about one interesting approch. Move the complete CAD assembly into SAP PLM interface environmentavaiable within the CAD environment, It will bring document structure readily ( which is equal to model tree structure in cad assembly) readily, Now first click, select all 1000 components + assembly header in one go
    , create DIR, 1000 DIR's ready in few min, Second Click, Select all DIR's, Check in, all gone to Central Storage ( Equivalent to Check-in CAD files in PDM for document management )Third Click, Select all 1000 componts click Material, all material gets generated, this is something to link to ERP, 4 th click, select header assembly, click Create BOM…BOM with 1000 components Design BOM in SAP is ready, are you spending time entering BOM manually in this approch ?? Guess the time you  saved with this approch ! Four clicks, A huge Assembly is available in SAP ERP within few minutes.

    What more, Parameters entered through CAD will directly move and sit in the Document Info Record fields, Parameters from CAD will also get entered into Material SAP Basic Fields automatically during material creation,Description entered in Parameter/Properties field in CAD will flow to DIR and Material there by singlesource of data flows everywhere, Change management when SAP is used becomes too simpler,Latest drawings will be accessd by all departments of the organisation + external parties ofcourse under access control,DMU,functionalities, Redlininig features and many more.

    You guessed right,“Integration” play a significant role in the future of product lifecycle management and enterprise systems and SAP PLM is fully ready with this. Let know your views on this.

    Thanks,
    Sudharshan

  • beyondplm

    Sudharshan, thanks for your comments and sharing examples. From my experience, your “4 clicks” scenario can be a bit problematic. The conversation rules from CAD structure to BOM structure is probably one of the most complicated processes I've seen in manufacturing companies and PDM/PLM software. The implementation complexity depends on so many factors that to make what you call – “Select all 1000 components click Material, all material gets generated” sounds like next to impossible. What if material has already existed, what if you want to create a new one, what if “mapping” between components is not 1:1 and you cannot automate it? I'd be very interested if you made such or similar implementation and how it works. Best, Oleg

  • SM

    Hi Oleg/Bradley,

    I always love to debate on this topic :) Can you eloborate me why you are feeling ” scenario can be a bit problematic” ? As for your concern about the materials already existing, I might have not told you about one more feature in CAD Desktop, apart from creating the material, there is an option to assign the materials also.This will solve your problem of materials which are existing. For new materials, create material from CAD Desktop. The “1000 components” BOM is Design BOM and I understand few more components are added in Engineering and Production BOM is made. In SAP there is something called Product Structure Synchronisation SAP PSS which will greatly assist in converting the Design BOM to Production BOM.

    Certain cases, Mapping will not be 1:1 but in SAP BOM those are required like labels etc. But this can be added in CAD Structure as Bulk Materials which physically do not exist as components but exist in the assembly structure which can be converted to DIR and assigned materials. For that DIR, assign manually the non CAD files.Hope this will solve your problem of 1:1 not matching. Let me know if you have any other concerns.

  • beyondplm

    Sudharshan, Problematics means that process of BOM from CAD process is not linear and may contain lots of cycles and exceptions. You put one of the (assignments of an existing material). It contains some re-use scenarios, comparisons and many ifs/then that, in my view, make it very complex (not 4 clicks :) ). Just my thoughts… Oleg

  • Peter Heeren

    Hi Oleg,

    “BOM and CAD-PDM-PLM-ERP Integration Challenges”
    This article triggered me. I'm writing a paper on PLM ->ERP and engineering efficiency. In our company errors are made in manual transfering the BOM from engineering (CAD) to ERP. I'm looking for a theoretical framework which needs to be in place to do this as efficient as possible within a manufacturing organisation. Do you have documents, studies or literature references available which describe this process.

    Best regards, Peter Heeren

  • beyondplm

    Peter, thanks for commenting. I'd be glad to take a look on your paper when it is available. I have never seen any theoretical framework in that space. I'd classify PLM-ERP integrations as following: 1/direction: one/bi-; 2/direct integration vs. middleware based. One of the biggest struggles I was facing working on the PLM-ERP integration was always to decide about the ownership of Bill of Materials. Best, Oleg

  • Vikas Sathidev

    Hello Oleg,

    I was looking for some help to understand problems that we could face when we try to combine BOM data from multiple instances.

    Thahnk you

    Vikas

  • beyondplm

    Vikas, The biggest problem of working with BOM data from multiple instances (I believe data located in multiple places) is your ability to combine it in a single thing using some rules. Another problem is to promote changes in multiple instances. You can take a look on my previous posts:

    When BOM seeks the right enterprise nany
    http://plmtwine.com/2009/04/29…

    Seven rules towards single bill of material
    http://plmtwine.com/2009/10/14…

    Feel free to contact me. Contact information is here http://beyondplm.com/services/. Best, Oleg

  • Yaronr

    Hi Peter
    Please take a look at this demo:
    http://www.youtube.com/watch?v…

    Cordys has a PLM to ERP solution available (not just a theoretical framework). It can do much more than just PLM and ERP integration.

    Feel free to contact me at yrosenbaum@cordys.com

  • beyondplm

    Yaron, thanks for sharing this link! Oleg

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  • Patriciaemoody

    YES YES YES
    Talking with Gloucester Engineering feature story in Blue Heron Journal https://sites.google.com/site/… about how to move forward with Cloud ERP coming from broken, rusted out old system, bad Bills, trees messed up – great story.  Important to making money as well, invoicing, receivables, figuring out whether that last shipment was profitable, or not!
    A Mill Girl

  • TSilva

    hello Oleg,
    I would like to know, what a company needs to get employ a system PLM, which will be the training for people and what it needs to do for to get sucess with this system.

    Thank you

    Thiago.

  • beyondplm

    Thiago, there is no specific PLM training. You can look for CIMdata certification or CMII courses. This is all I know. In addition to that, you can apply for vendors' training. But be prepared for “vendor-oriented” materials. Hope it helps. Oleg

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