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BOM

Multiple dimensions of BOM complexity

by Oleg on October 15, 2014 · 9 comments

complex-bom-old-fashion

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 same BOM. Actually, not always the same BOM. I guess you’ve heard about variation of Bill of Materials – eBOM, mBOM, xBOM, etc. The amount of abbreviations in BOM is growing and often can cause confusion. So, I decided to put some lights on that in my post today.

The importance of BOM management is growing as well as tension around who owns bill of material. Historically, people in different departments disagree about the way they manage bill of materials. As a result of that, departments are splitting and cloning bill of materials to get control and  managing it in different systems. It leads to the need to synchronize and copy BOMs together with changes. The tension around BOM management is growing. Last year, I posted some of my thoughts in the post – Will PLM manage enterprise BOM? The main point in this article was around complexity of BOM management and integration between different systems and disciplines.

It looks like BOM will become the next place some of PLM vendors are going to innovate… and battle. My attention was caught by provocative ENGINEERING.COM article – The Power of Zero – Dassault’s ENOVIA chief talks about the ”Zero Error BOM”. Read the article and draw your opinion. I captured the following passage:

The “war” has generally been about linking product development with shop floor IT and the BOM certainly plays a key role in this. Right now there are four primary participants on the battlefield: Siemens, SAP, GE/PTC and IBM.

Article is emphasizing the complexity of “universal BOM” solution and potential advantages of winning BOM battle:

It’s not a simple job to manage a BOM. What might appear as ”a list of parts needed to build a product” is today a complex reality of multiple levels, diversified disciplines and BOMs contains information about structures, electronics, integrated software, manufacturing methodology and the way products are maintained and even disposed of. There are many sources of error and mistakes can be very costly.

If Dassault’s “zero error BOM” can become a reality, it’s a huge step forward and would, according to analyst Marc Halpern of Gartner, ”have the potential to realize the ’dream’ of the universal BOM”. But as Kalambi says: ”This is about to embark on a journey; once on ’the road’ the benefits of 3DEXPERIENCE and V6 will increase productivity dramatically”.

I found myself thinking quite a bit about complexity of BOM today and, as a result, came to the following diagram showing 3 main dimensions of BOM complexity: Disciplines, Lifecycle, Changes.

multiple-dimensions-of-bom-complexity-v2

1- Multiple disciplines. The complexity of product is growing these days. Even for very simple products it goes beyond just mechanical and electromechanical design. It includes electronic, software and goes to services and deliveries. Engineers are using multiple tools to create design of products in each discipline. To combine everything together is a very challenging task.

2- Lifecycle. Design represents only one phase of product development. It must be manufactured, shipped, supported and (after all) re-furbished or destroyed. All these processes are going in parallel and requires sophisticated interplay in data and activities. How to connect requirements with design, plan and optimize manufacturing and run support services? This is only a short list of tasks that requires BOM orchestration.

3- Changes (ECO/ECN…). Nothing is static in this world. People are making mistakes. Communication failures happen. Suppliers are going out of business. All these events generate changes that must be applied into different stages of product development – design, manufacturing, services.

What is my conclusion? Bill of Material management reflects one of the most complex disciplines in product development and manufacturing these days. The time when companies managed BOM on the shop floor corkboards are gone. Future BOM management systems will have to be much more sophisticated, integrated and to support multiple dimensions of BOM complexity. Just my thoughts…

Best, Oleg

[update 16-Oct-2014]. The BOM complexity diagram was updated following comments about ECR-ECO-ECN

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Manufacturing BOM dilemma

by Oleg on October 8, 2014 · 9 comments

mbom-dilemma

Manufacturing process optimization is one of the biggest challenges in product development these days. Companies are looking how to low the cost, optimize manufacturing process for speed and to deliver large variety of product configurations. The demand for these improvements is very high. The time when engineering were throwing design”over the wall of engineering“ is over. Engineering and manufacturing people should work together to optimize the way product is designed and manufactured at the same time. Which, in my view, leads to one of the most critical element of this process – Manufacturing BOM (MBOM).

In one of my earlier posts, I addressed the challenges PLM systems has to manage BOM. PLM vendors are recognizing the importance of manufacturing solutions. However, it is hard to deliver MBOM in PLM. It related to CAD roots of PLM products, historical disconnect of engineers from manufacturing processes, complexity of synchronization between multiple BOMs and problems of integrating with ERP systems. Vendors are encouraging companies to use PLM technologies to manage MBOM and to push right product MBOM information to ERP for execution. The advantage of that is the ability of PLM to deliver accurate product information derived from design and engineering BOM.

However, there is another side in this story- manufacturing planning. Fundamentally, MBOM is created by manufacturing engineers and it reflects the way product is built. It usually structured to reflect manufacturing assembly operations, workstations, ordering process, etc. In other words, MBOM is a reflection of manufacturing process based on information from product design. Company can decide to improve manufacturing process for existing product. It means most probably no changes for CAD design and EBOM, but will require to create a new version of MBOM.

As a result of that, MBOM has dual dependence of both correct engineering information from PLM system and manufacturing constraints and part information management by ERP. Both are absolutely important. By placing MBOM in PLM system company can create a complexity of manufacturing process planning in ERP. At the same time, ERP system (more specifically manufacturing modules) are not providing dedicated BOM planning tools capable to handle information from EBOM and MBOM simultaneously.

What is my conclusion? Manufacturing BOM is stuck between a rock and a hard places. It must reflect manufacturing process and stay connected to both PLM and ERP environment. It creates a high level of complexity for existing technologies and tools. To create a cohesive environment to manage MBOM is tricky and usually requires significant services and customization. Just my thoughts…

Best, Oleg

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Strati1

3D printing is buzzing trend these days. If you are not up to speed with the trend, you probably should. Because it changes everything around. Start today from Wikipedia article about 3D printing (aka as additive manufacturing). Today’s announcement about GrabCAD acquisition by Stratasys- leading 3D printing company is another confirmation about important role additive manufacturing will play in the future. The following video is a recording of Autodesk CEO Carl Bass about 3D printing topic - The future of how things are made.

3D printing is changing the way we are going to manufacturing products in the future. This is, of course, very high level statement. It is interesting to go down and see the impact in bits and bytes. For example, how it will impact product structure, or how it will impact product data management or manufacturing planning. You probably don’t associate these two things, but additive manufacturing is changing the product structure and everything that related to that. It certainly impact BOM management too.

My attention caught by the following Engineering.com article – Autodesk and Local Motors Collaborate on First Spark 3D Platform Implementation. The article speaks about collaboration between Local Motors and Autodesk about first large scale industrial implementation of Spark. I found the following passage quite provoking:

According to Local Motors, the Strati simplifies the automotive assembly process and is a result of leveraging the contributions of community, advanced manufacturing tools, and software, like the Spark platform. This could bring many advantages, including reduction in the number of parts in a vehicle’s Bill of Materials (BOM) from 25,000 components to less than 50. The on-demand nature of 3D printing means that automotive manufacturers can change aspects of their design—or even come up with an entirely new one—with little or no additional cost in tooling or time.

The complexity of modern car is skyrocketing. Hardware is part of a complex one element of that. Others – electronic, software are playing significant role. In the past car was a pure mechanical beast. Today, it is a combination of hardware and software on wheels. Who knows, maybe in few years, we will see car bill of material very similar to computer today – few mechanical pieces and lot of software. With changing balance between hardware and rest of car elements, the focus can shift towards multi-discipline product structure.

What is my conclusion? The complexity of products is changing. It is important to see trends. While overall complexity of manufacturing products (cars included) will grow, we might see a decrease in manufacturing complexity of hardware as a result of new manufacturing methods – additive manufacturing (3D printing) will pay a key role here. At the same time, the complexity of multidisciplinary product structure (BOM) will grow. Just my thoughts…

Best, Oleg

Picture credit to ENGINEERING.COM article.

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PLM and Zero BOM errors: the devil is in details

September 10, 2014

To manage Bill of Materials (BOM) is not a simple job. Often you can hear a simple definition of bill of material as a “list of component needed to build a product”. However, in reality, BOM is much more complex and contains information about product structure, the ways product is manufactured, maintained and even disposed. […]

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Apple iPhone 6 and and cross product families BOM planning

August 18, 2014

To manage Parts and Bill of Materials is not a simple tasks. I shared some of aspects related to the complexity of Part Numbering last week in my post – Existing data prevents companies to improve Part Numbers. The discussion in comments took me towards the complexity of Part Numbers in supply chain. Here is […]

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Existing data prevents companies to improve Part Numbers?

August 15, 2014

Part Numbers is a fascinating topic. I’m coming back to blog about what is the best approach to manage Part Numbers. My last post about it was – Part Numbers are hard. How to think about data first? was just few weeks ago. In that article, I outlined few principles how to keep PN separate from […]

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PLM, Excel Spreadsheets, Pain Killers and Vitamins

July 29, 2014

We like to compare stuff. Gadgets, cars, hotels, software. We can compare iPhone to Samsung, Canon to Nikon, Honda to Toyota. Software is a special category. When it comes to enterprise software it gets even more complicated. However, marketing comparison is a fascinating type of writing. Arena PLM blog posted a marketing writing – Using […]

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Why 150% BOM will be obsolete in the future?

May 16, 2014

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. […]

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Why BOM Management Is Complex?

May 12, 2014

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 […]

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Why Excel and Multi-BOM are killing collaboration?

April 22, 2014

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 […]

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