A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

JIT’s impact on PLM and BOM management

JIT’s impact on PLM and BOM management
Oleg
Oleg
21 February, 2014 | 2 min for reading

jit-plm-impact

JIT (Just in Time) is a well-known approach in manufacturing industry. In a nutshell, JIT is a production strategy to reduce inventory and associated cost. The philosophy of JIT is related to processing and transactions of inventories, which adds additional cost. By removal (or reducing) of inventories, you can reduce a total cost of production. You may ask me – where is product lifecycle management in this story? It sounds like completely “manufacturing problem” and something that shopfloor and suppliers network should be able to resolve. However, it is not true. In my view, there is tight connection between PLM implementation and JIT manufacturing planning.

Think about manufacturing planning and control. One of the functions is to get access to engineering bill of materials and use this information to create manufacturing plan – workcenter planning, suppliers orders, assembly instructions, etc. The efficient coordination between engineering environment and manufacturing planning is one of the key elements of successful production planning. Now, this is true for every manufacturing types. In most of PLM implementations it means the ability to send design or engineering BOM to manufacturing planners to work planning BOM. The difference come with specific of planning and manufacturing BOM organization related to JIT manufacturing principles.

So, what is the difference in bill of materials for JIT? The main one is significant reduce of bill of material levels. JIT reduce the number of part numbers planning and number of levels in BOM. Many part numbers that in traditional MRP practice are treated as in/out inventories now can be treated as “phantoms”. This is actually one of the main goals in JIT – to reduce complexity of detailed manufacturing planning. However, it brings a need to maintain more synchronized communication between engineering and manufacturing – literally between design/engineering and planning bill of materials.

In my view, the main challenge of PLM tools in JIT manufacturing environment is related to engineering-manufacturing collaboration. PLM implementation should be focusing on better synchronization of both development/engineering and manufacturing/planning. The implication in PLM – additional requirements to BOM tools and ECO management. Inefficient collaboration can raise the number of engineering change transactions – one of the most expensive transactions in every manufacturing company.

What is my conclusion? JIT makes manufacturing processes more connected and synchronized. It is obvious that JIT implementation impacts supply chain network. The operations between suppliers are getting more tight. However, JIT is impacting engineering and design processes too. Therefore, as much as manufacturing is moving towards lean principles, the demand for better engineering-manufacturing collaboration will increase. I can see it as a significant challenge in many PLM implementations. Specially it may impact BOM and ECO management tools. Just my thoughts…

Best, Oleg

Recent Posts

Also on BeyondPLM

4 6
3 April, 2012

Disclosure: As a co-founder of Inforbix, I understand that my opinion about PLM Data and Search can be unintentionally biased....

30 July, 2015

The debates about PLM and Excel are heating up. The discussion started in earlier blog posts by Lionel Grealou and Jos Voskuil. In...

19 June, 2015

I like links. The things about links are fascinating. It is about connection between products, people, companies and things. The...

22 December, 2011

After my publication PLM, Autodesk and Cloud Wars Club few days ago, I received few comments from my readers trying...

18 November, 2023

Earlier this week I attended Autodesk University 2023. The event back to its regular location Las Vegas Venetian (Sands Expo),...

9 June, 2009

The weekend normally puts me into a much deeper thinking mode about what to discuss on PLMtwine. Since the post...

13 April, 2016

The number of new technologies developed for the last decade is amazing. Video, mobile, communication, self-driving cars… what else? The...

22 June, 2024

In the world of engineering and manufacturing, data integration is paramount. As industries evolve towards more interconnected systems, choosing the...

22 June, 2015

When it comes to PLM and ERP, you may always get some feeling of rivalry at the air. PLM and ERP...

Blogroll

To the top