The Bill of Materials System in an ERP software solution facilitates an accurate expected cost against which to track actual production costs. The complete bill forms the basis for material and capacity planning, shop floor control and costing. The best ERP software give you the ability to create and maintain a model of your manufactured or assembled products as well as generate what-if costing scenarios.
The Bill of Materials system in an ERP software system enables you to construct quantity or percentage relationships between assemblies (final product) sub-assemblies (bulk batches) and components (raw materials) using up to 15 levels and you can assign each component to a selected operation in the parent routing.
Various types of bills can be added:
Single Level bill (kits)
Phantom part (part of a BOM for grouping purposes)
Notional part (part of a BOM for Co-Products)
The image you see above is an example screen shot from the award winning ERP software SYSPRO.
If you are considering an ERP software system, consider using a checklist for 'must have' features.
Bill of Materials Features in the best ERP software system:
Supports up to 15 levels
Multiple recovery rates per cost center, work center and employee
Track time and capacity in different units of measure
Define component requirements up to 6 decimal places
Document routing instructions and component notes
Link pictures and videos to Bill of Materials
Validate structures and operations and provide notification of potential problems
Calculate BOM costs per warehouse
Define movement time between operations
Calculate manufacturing lead times
‘Where-used’ query with ‘replace where-used’ function
Import structure and routings from third-party systems (e.g. CAD)
Calculate dynamic-elapsed time and capacity required
Transfer rolled-up BOM costs to unit cost of item
Indicate move time between work centers
Capacity calendar per work center and productive units
Define components as quantity per, % of parent or specific quantity regardless of batch
Indicate scrap percentage and/or quantity with optional progressive scrap
Define and process parent and component quatities in a unit of measure other than stocking
Update work center information when associated cost center information changes
Possibly your company may fall into the category of "under-utilized" or "broken" production cost management where you have a disconnect between the expected cost vs. the actual cost. An ERP software expert will break down the essentials for you and if they are worth their salt, pay for their services many times over.
The Bill of Materials system is an important piece in an ERP software solution. Download the Bill of Materials by SYSPRO fact sheet today to learn more: