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Bill of Materials

contract-manufacturing-collaboration

Globalization and contract manufacturing are two important trends that shaping modern manufacturing. Companies are using contract manufacturers (CM) for different purposes – design, component supply, assembly, fabrication, etc. In some industries such as electronic, contract manufacturing is an absolutely vital part of your product success. My attention caught by EE Times article: 5 Don’ts and Do’s for Working with a Contract Manufacturer. It is short and sweet – I certainly recommend you to have a read.

Here are my favorite two recommendations – prepare detailed documentation and design for manufacturing.

Prepare Detailed Documentation — I don’t think it’s possible to under-communicate when it comes to providing instructions to a CEM. The more CAD files, schematics and specs you deliver with your design the better, from our perspective. And don’t forget to provide a comprehensive bill of materials with alternate part numbers – or have your CEM do this for you.

Design for Manufacture — DFM essentially means considering how easy and cost-effective it is to manufacture an assembly, and designing to reduce those costs. You need a manufacturing mindset to do this well, so leave room for a DFM review and adjustments in your plans.

Thinking about contract manufacturing processes took me back to my 3 modern BOM management challenges. Bill of Material is an important key element in both – documentation and design for manufacture. Very often contract manufacturing work is focused on processes management by ERP system. However, you need to have solid PLM foundation to start thinking about CM work earlier in the process.

So, what are critical elements of PLM system to support your CM processes:

1- Access to component libraries. To have information about components, availability, cost and other parameters such as regulation is critical. To replicate this information into your PLM system is possible, but not reliable and not scalable. Check how PLM system can access this information online or federate it with ERP system you have.

2- Flexible and granular BOM management. You need to organize bill of materials in the way engineering and CM will be able to access it. By doing that you will allow early access to all parties involved into design and manufacturing to access product information.

3- Change management. Everything is changing. It will happen to your design and manufacturing plan too. Find a tool that allows you to manage traceability of changes alongside to bill of material and manufacturing plans.

4- Security. You need to have right technology in place to isolate information that belonging to different CM and subcontractors. It is important to maintain your business relationships and not to disclose sensitive information.

What is my conclusion? Globalization and cost competition leads companies to find somebody else to produce components and outsource specialized work. In many domains, CM is a way to structure industry (think about fabrication and electronic manufacturing as best examples). It leads to outsourcing, offshore and many other options to make the same work in a different places. Bill of materials (BOM) is a critical element in supporting of contract manufacturing. You need to have an ability to organize BOM in a way that allows to all involved organizations to access and make changes in the controlled way. Just my thoughts…

Best, Oleg

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

 

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We live in the era of smart products. Modern smartphones is a good confirmation to that. The average person today keeps in his pocket a computer with computational capability equal or even more than computer that aerospace and defense industry used for navigation. In addition to that, you smartphone has communication capability (Wi-Fi and Bluetooth) which makes it even more powerful. If you think about cost and availability of boards like raspberry pi and Arduino, you can understand why and how it revolutionize many products these days. Although, wide spread of these devices has drawbacks.

Smart products are bringing a new level of complexity everywhere. It starts from  engineering and manufacturing where you need to deal with complex multidisciplinary issues related to combination of mechanical, electronic and software pieces. The last one is a critical addition to product information. Bill of materials has to cover not only mechanical and electronic parts, but also software elements.

Another aspect is related to operation of all smart products. Because of connectivity aspects of products, the operation is required to deal with software, data and other elements that can easy turn your manufacturing company into web operational facility with servers, databases, etc.

As soon as devices are exposed to software, the problem of software component traceability is getting critical. Configuration management and updates is a starting point. But, it quickly coming down to security, which is very critical today.

GCN article – How secure are your open-source based systems?  speaks about problem of security in open source software. Here is my favorite passage:

According to Gartner, 95 percent of all mainstream IT organizations will leverage some element of open source software – directly or indirectly – within their mission-critical IT systems in 2015. And in an analysis of more than 5,300 enterprise applications uploaded to its platform in the fall of 2014, Veracode, a security firm that runs a cloud-based vulnerability scanning service, found that third-party components introduce an average of 24 known vulnerabilities into each web application.

To address this escalating risk in the software supply chain, industry groups such as The Open Web Application Security Project, PCI Security Standards Council and Financial Services Information Sharing and Analysis Center now require explicit policies and controls to govern the use of components.

Smart products are also leveraging open source software. The security of connected devices and smart product is a serious problem to handle. Which brings me to think about how hardware manufacturing companies can trace software elements and protect their products from a potential vulnerability.

What is my conclusion? To cover all aspects of product information including software becomes absolutely important. For many manufacturing companies the information about mechanical, electronic and software components is siloed in different data management systems. In my 2015 PLM trends article, I mentioned the importance of new tools capable to manage multidisciplinary product information. Software BOM security is just one example of the trend. The demand to provide systems able to handle all aspect of product BOM is increasing. Just my thoughts…

Best, Oleg

photo credit: JulianBleecker via photopin cc

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When BOM is not BOM

by Oleg on December 17, 2014 · 0 comments

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Bill of Materials (BOM) is a central part of everything in product development. Sometimes, people call it product structure. Manufacturers are using BOM to define list of raw materials, parts and sub-assemblies with corresponded quantities need to manufacture a product. This is over simplistic definition. As usual, devil is details and BOM story is getting quite complex. Depends to whom are you talking, people see a different aspects of bill of materials – sales options, design hierarchy, product configurations, manufacturing process, service parts. Many systems are defining BOM differently. It depends on their roles and functions in overall product lifecycle.

In one of my recent articles – Thoughts about BOM ownership, I discussed some ideas about how BOM can be shared among organizations and enterprise software tools. That was my attempt to think about how to resolve a conflict between two major BOM stakeholder – Product Lifecycle Management and ERP systems. The BOM management landscape in the organization is complex. In my view, companies are not ready for a single BOM management tools - it was my observation 2 years ago.

At the time a major BOM master ownership dispute is between PLM and ERP vendors, I can see an interesting trend which can put some lights on how PLM companies are articulating their BOM strategies.

Dassault Systems ENOVIA is coming with their “zero BOM error” strategy. I posted about it earlier – PLM and Zero BOM errors: the devil is in details. In a nutshell, ENOVIA is trying to improve process of Bill of Material generation by direct connection between CATIA design and product structure. In my view, it might lead to potential formal elimination of EBOM, which will be replaced by a bundle of design and engineering information. Practically, product structure in CATIA/ENOVIA will represent everything that happens on engineering level. According to ENOVIA strategy, it will eliminate errors between design and engineering.

In parallel, I’m observing the way BOM is positioned by Siemens PLM. Teamcenter blog – Introducing BOM management speaks about BOM information as a vital part of many processes supported by PLM. I found interesting how “BOM management” term was replaced by “Product definition”. Here is the passage:

I just noticed that as I am writing this I am using the words “bill of materials” less and “product definition” more. I would go back and correct – I wanted to keep it a surprise!  But I think it’s ok – it helps me get to this next part. To us, it has become abundantly clear that one of the problems that come up when you talk about bill of materials (BOM) management is that the scope of what people might mean is so broad. To call all those things listed above “BOM Management” is not sufficient.  We’ve collected these capabilities into an umbrella we call the Integrated Product Definition. This is an area where we have been leaders, and it continues as a high priority for us – we have the breadth and depth to address these issues like nobody else can.

In both situations, I can see a strategy by PLM vendors to redefine BOM and bring up the extended value PLM environment for customers. This is a very important transformation in my view, since it helps to streamline processes. The problem of synchronization between design and engineering environment is well-known and not solved in many companies. Teamcenter is connecting BOM management into varietly of topics such as part management, master data management, configuration management, coordinate change and variability and others. It helps to create a solid platform to manage product data.

However, the biggest fight over the BOM is between PLM and ERP environments. Engineering.com outlined it in their article – The next big boom in PLM is a battle over MBOM ownership. Muris Capital Advisors outlined the sam conflict in the blog post – The Battle for BOM Control. According to Bruce Boes of Muris Capital, service integrators will play a leading role in making alignment between PLM and ERP and forming BOM master model. Here is an interesting passage:

We predict that System Integrators have a unique opportunity and from our recent experience, the desire to bridge the gap and add value during integration with the BOM as a key point of integration.  In doing so they open the market for process consulting and integration services surrounding the master model concept. 

The last one make sense. In many PLM implementation projects, SI teams are actually leading development of PLM-ERP integration on site or using different middleware or integration toolkits. Unfortunately, the cost of these implementation is high and overall process is very complex.

What is my conclusion? PLM vendors redefining BOM by tight integrating of product information into development processes. From what I can see, both Teamcenter and ENOVIA are trying to redefine Bill of Material (BOM) as a wider topic. This is an interesting strategy to fight over MBOM ownership. Integrated “product definition” can help to streamline processes between engineering and manufacturing. However, the end game should be total BOM experience including all manufacturing aspects – manufacturing process planning, cost and orders. The last one brings PLM-ERP integration topic back on the table. Just my thoughts…

Best, Oleg

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Engineering change and EBOM to MBOM synchronization complexity

November 27, 2014

MBOM (Manufacturing BOM) is a tough problem. Initially, you might think about it as an easy problem. Especially, since companies are managing MBOMs in MRP/ERP systems for a while. However, I think, the time when MBOM was simply originated in MRP system to fulfill demand planning and production orders are gone. And it brings lot […]

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Mass customization is the real reason for PLM to want MBOM

November 25, 2014

Data ownership is an interesting topic. Our life is getting more digital every day and we are asking many interesting questions about who owns data about us. Who owns the data about our Facebook profiles, who owns social media data we created and many others. While still there are some gaps in understanding who owns […]

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PLM vendors’ fight over BOM will require to solve data synchronization problems

November 10, 2014

Engineering.com article by Verdi Ogewell earlier today is introducing a next step of PLM vs. ERP battle for ownership of manufacturing BOM. Navigate to the following link to read a very provoking interview with Siemens PLM CEO Chuck Grinstaff who says – “PLM should take over ownership of the manufacturing BOM too“. I’ve been writing about […]

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Multiple dimensions of BOM complexity

October 15, 2014

Bill of Material topic is getting more attention these days. No surprise. BOM is a center of universe in manufacturing (and not only) world. People can disagree about terminology applied to BOM management. Depends on a specific domain people can call it part list, specification, formula. But at the same time, everybody speak about the […]

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MBOM collaboration and cost of change

October 9, 2014

The only thing that is constant is change. This is very much applies to everything we do around BOM. Engineering and manufacturing eco-system are full of jokes about engineering changes. You maybe heard about renaming “engineering change order” into “engineering mistake order” as well as the correlation between number of engineers and number of ECOs […]

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How long will take GrabCAD to develop full-blown PLM solution?

August 18, 2014

Time is running fast. It has been two years since I posted GrabCAD: from Facebook for engineers to PLM. If you are in the engineering community, the chances you will come to PLM are very high. Like in the past all roads lead to Rome, I guess all future development roads for PDM solution lead […]

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Drawing Callouts and Future Google PLM Design

June 27, 2014

For me, Google is one of the symbols of simple software design. Therefore, Google developers event is always a good place to get inspired with ideas and new technologies. Google I/O was this week in San Francisco. I had now chance to attend the event, but was able to watch video streaming of keynote and […]

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