Posts tagged as:

BOM

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Have you heard about “150% BOM”? BOM management terminology is confusing sometimes. Ed Lopategui gave a shot to explain it in his last GrabCAD blog – 150% BOM: Buy Two, Get One Free. The following passage was my favorite:

A 150% BOM isn’t sorely in need of some fitness training or sadly overdrawn at the bank. In fact, a 150% BOM is just another name for a variant structure, or more specifically, a configurable BOM. Configurable BOMs have one or more optional components and/or modular subassemblies, which, when properly set, define a specific variation of a product. In effect, a configurable BOM is many possible BOMs loaded into just one product structure. When left unconfigured, the BOM contains more parts and subassemblies than needed, i.e. more than 100%. Hence, the term 150% BOM. So why 150% and not 110% or 117.32%? That’s just the we way we roll in BOM town.

Variant structure, configurable bill of material, modular BOM… the industry invented multiple names to cope with the complexity of communication and product development processes in manufacturing organizations. The core idea of modularization or configuration is not directly related to assembly to order process (ATO), but used widely for configurable and complex products. You can see 150% BOM, 200% BOM and similar BOM organization maintained by engineering department to facilitate creation of final products from predefined parts and sub-assemblies. The product development is actually divided into two essential steps – create your modular (150% BOM) and create a planning bill of a specific product. The last one will allow you to roll out cost and delivery time.

So, why engineers created 150% BOM concept? Do we really need that? In my view, the approach was a way for engineers to manage the complexity of product structure and product variation. You can see it for product configurations and also in bill to order (BTO) situations where complex product development is managed in a way of product technological foundation combined with features developed for specific customer. With absence of better tools, Excel spreadsheet becomes the best product configuration environment and matrix with 150% BOM is the simplest model to present that.

Ed’s blog made me think about future of “150% BOM” and matrix BOM organization. In my view, the concept will disappear in the future. In my view, the complexity of product environment is growing. In many situation, to produce 150% BOM is not feasible anymore. With the level of product complexity, mix of mechanical, electronic and software components, ability of engineers to bring them all together into one 150% BOM can be not practical and even less efficient. We will need to invent new tools to manage the complexity of configurations and product data. With growing demand for personalization, we are not far from the situation, PLM and ERP systems will have to roll out bill of materials individually configured for a specific customer (and this is not only in aerospace and defense industry).

What is my conclusion? Growing complexity of products, move to mass customization, regulatory and cost pressure, global manufacturing – this is a reality of modern manufacturing environments. We need to develop a new approach how to manage product development and manufacturing of these products. Product configurations and BOM is a centerpiece of this approach. A simple 150% BOM spreadsheet will be replaced with new BOM tools. Just my thoughts…

Best, Oleg

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Why BOM Management Is Complex?

by Oleg on May 12, 2014 · 6 comments

bom-complexity-manufacturing

My last post about Manufacturing BOM raised few interesting comments online and offline. One of them by Jos Voskuil  was pretty straightforward – “What is a big deal about MBM”? Jos pointed me on his earlier post – Where is MBOM? This post as well as few other articles I posted earlier - Why companies are not ready for single BOM? and BOM 101: 5 Don’ts for BOM management made me think why BOM is so complex. I wanted to share these reasons and ask your opinion. Here are my top 3 list of issues that are leading to significant BOM management complexity: 1- Items/Parts identification; 2- Views; 3- Synchronizations. Let me go and explain more specifically what I mean.

1 – Item / Part Identification

Item Master. Item. Part. Assembly. Product. You name it… But whatever you call it, you come down to the way (and format) to identify Parts. Part number is probably the simplest wayto identify things in product design, manufacturing and support. The next question – what Part Number? Things are simple only on the surface. As soon as you dig inside, you find yourself surrounded by manufacturing part numbers, design parts, suppliers part numbers, support parts and many others. The information about them resides in multiple data databases, spreadsheets and systems.

2- Views (or Product Views or BOM Views)

You may think about bill of material as a list of parts and everything else you need to make a product. However, very fast it gets complicated with product configurations, manufacturing information, suppliers,  As-built BOM and maintenance parts. To differentiate and manage all this information is not a simple task.

3- Synchronizations.

As I mentioned before, bill of material information (multiple BOMs) are usually managed by different systems. Often (in case of PLM) multiple BOMs are managed by PLM system itself. Now think about change processes and updates. Each one generates a sequence of updates and dependent operations that needs to be done to synchronize BOMs and keep them in a consistent status. Indeed, one of the most complex tasks in BOM management.

What is my conclusion? BOM is not simple thing as you might think from the beginning. To keep system in sync with diversity of data and processes takes time and effort. Variety of product development and manufacturing approaches, global deployment, etc. How to overcome the complexity of BOM management? Look forward to learn about BOM management complexities you are facing developing and implementing BOM management solutions.

Best, Oleg

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Excel and Bill of Materials. What can be better to start a discussion? One of my favorites blogging buddies and author of eng-eng blog Ed Lopategui hit the button of BOM & Excel discussion in his GrabCAD blog – It’s time to drop Excel BOM. I liked the following passage. It speaks about huge cost involved in management of changes using Excel:

There’s one fundamental constant in all of engineering: change. Aligning with the capability to change quickly and often is crucial in fighting back ever-increasing schedule pressures. Excel BOMs provide no help here. A separate Excel BOM has to be manually synchronized with each design change. It’s usually in this confusion where some of the bigger and most expensive errors tend to happen. Conflicts are common and notoriously difficult to set straight. Recognize that the information in a BOM is every bit as vital as your CAD design, and should be managed accordingly. For the very same reasons you benefit from managing CAD, so should you do the same with a BOM.

Ed’s post took me back five years to my Why do I like my PLM Excel spreadsheets?  Excel is super flexible and powerful. However, it comes with cost. I summarized them here – PLM Excel spreadsheets: from odes to woes. Very recently I put a possible recipe how PLM can compete and take over Excel spreadsheets. These are important 3 ingredients - (1) flexible data model, (2) easy customization and (3) flawless user experience.

One of the topics in Ed’s blog, took me far beyond just usage of Excel to edit BOM. It was about how to manage bill of materials between engineering and manufacturing space. Here is the passage:

So far we’ve been talking about BOMs strictly from a design perspective. But the expectation that there can be only one BOM to rule them all is unrealistic. There are different ways to slice BOMs, different disciplines may have a need for their own specific view or information. How manufacturing looks at a BOM in ERP will be fundamentally quite different from how engineering looks at a BOM.

The topic of multiple BOM management isn’t so new. The truth is every enterprise system wants to manage their portion of BOM. In PLM space BOM management is often comes with the strategy of multiple BOMs or BOM views. Most of PLM systems can support multiple BOMs. The idea of separating BOMs into different slices or views is current answer to how to let every department in the organization to own their portion of BOM.  Most of organizations are doing that because they didn’t find an alternative way to agree how to manage BOM. So, data is split between CAD, PDM, PLM, ERP, MRP, CRM and other domains. Read more about it in my article Why companies are not ready for single BOM? One of the biggest problems in using multiple bill of materials is related to collaboration between people in organization. Multi-BOM leads to huge data synchronization problem. The question “where is my BOM?” is usually the one that kills collaboration.

What is my conclusion? To manage BOM in Excel is a nightmare. So, to bring BOM management tools to replace Excel is a very good idea. However, most of companies are having though time to decide how to manage bill of materials among different systems and environments. In a real world companies are relying on combination of Excel, PDM/PLM and ERP to manage multiple BOMs. Unfortunately, it kills collaboration, productivity and innovation. Just my thoughts…

Best, Oleg

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Bill of Materials (BOM) Management: Data, Lifecycle, Process

April 2, 2014

In my recent post about bill of materials – Bill of Materials (BOM): process or technology challenge? I touched the variety of topics related to BOM organization – multiple BOMs and need to manage BOM located in different systems. My main question at the post was around how to make the work with multiple BOMs easier? […]

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How PLM can solve problem of global BOM transparency

February 20, 2014

Business is going global. It is not only for large manufacturing companies these days. As a result of cost pressure and searches for new market opportunities, manufacturing companies are looking how to optimize their businesses. Distributed engineering, manufacturing and suppliers environments – reality of manufacturing these days. However, outsourcing and future development of supply chain […]

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How to Combine Engineering and Software BOMs?

January 24, 2014

I remember a conversation that happened to me a decade ago with fellow engineer from one of leading telecom companies. The question I asked him was – how do you know what version of software to load into device? The answer was- “Hm… actually we don’t know much about it. It happens magically”. I have […]

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PLM and Magic of MBOM planning

January 21, 2014

Manufacturing BOM (MBOM) is an interesting topic. After all design and engineering operation,  MBOM defines how product is going to be actually manufactured. While most of PLM / ERP debates about MBOM are going around “who owns what”, the most fascinating part that I found in MBOM is related to the nature of manufacturing planning. The […]

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PLM, CMMS and BOM Hot Potato

January 8, 2014

There is no person in manufacturing universe that can underestimate the importance of right Bill of Material information. However, I can see people responsible for material management in a special league for the context of material management and BOM. Doug Wallace of Life Cycle Engineering (www.lce.com) speaks exactly about that in his article The importance of […]

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The Ugly Truth of Multi-BOM Management

December 17, 2013

Bill of Material (BOM) management is always fascinating topic. It sparks so many debates and introduce a large set of diverse opinions. I can even say that I have a special passion to speak about BOM on my blog. If you want to catch up on my recent posts about BOM, you can try these […]

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Will SaaS and Open API solve BOM Management problem?

September 26, 2013

I like the way BOM discussion usually sparks. From my experience, “BOM management” topic has the ability to ignite conversation almost immediately. Therefore, I wasn’t too much surprised when I got blog attention from Hardi Meybaum, CEO of GrabCAD – most buzzed about company in Boston if you trust Venturefizz. Here is the article – Why […]

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