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

Why 150% BOM Excel Will Be Obsolete In The Future?

Why 150% BOM Excel Will Be Obsolete In The Future?
Oleg
Oleg
16 May, 2014 | 3 min for reading

plm-future-150-bom

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 the assembly-to-order process (ATO) but is used widely for configurable and complex products. You can see 150% BOM, 200% BOM and similar BOM organizations maintained by the engineering department to facilitate the 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 do engineers create a 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 a specific customer. In absence of better tools, an Excel spreadsheet becomes the best product configuration environment, and a matrix with 150% BOM is the simplest model to present that.

Ed’s blog made me think about the future of “150% BOM” and matrix BOM Excel organization. In my view, the concept will disappear in the future. In my view, the complexity of the production environment is growing. To produce a simple Excel with 150% BOM is not feasible anymore. With the level of product complexity, a mix of mechanical, electronic, and software components, the 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 the growing demand for personalization, we are not far from the situation, PLM and ERP systems will have to roll out bills of materials individually configured for a specific customer (and this is not only in the aerospace and defense industry).

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

Best, Oleg

Disclaimer: I’m co-founder and CEO of OpenBOM developing a digital cloud-native PLM platform that manages product data and connects manufacturers, construction companies, and their supply chain networksMy opinion can be unintentionally biased.

Recent Posts

Also on BeyondPLM

4 6
6 November, 2018

I’m attending PI PLMx Chicago these days. The event is organized by MarketKey, a UK based company with a mission...

17 July, 2009

I’m thinking, how PLM can become leaner and efficient. In today’s economical situation and even in general, to make PLM...

1 May, 2017

Electronics and PCB are growing. Almost every product manufactured today has some elements of electronics and PCB board inside. It...

22 October, 2010

Few weeks ago, I had a chance to attend a webinar – Learn How PLM Propels Innovation at Mercury Marine....

26 March, 2025

This week, I’m heading to the 2025 CIMdata PLM Market & Industry Forum in Ann Arbor, Michigan. Note, the Futuristic...

8 August, 2012

Social. New buzz. You can hear it in many places. After the tremendous success of social networking and web, many...

15 October, 2009

I’m continuing to explore a world of cloud for PLM. Today, I want to take and discuss a direction which...

8 January, 2020

I want to come back to multi-tenancy. Over the past few months, I shared my thoughts about the importance of...

15 April, 2013

I’ve been attended COFES 2013 earlier last week. For those of you not familiar with the event, navigate your browser...

Blogroll

To the top