Bill of Material - SAP PP Module
A Bill of Material (BOM) is a complete,
formally structured list of components (raw or semi finished materials), which
are needed to manufacture a finished product. The BOM list contains the
material number together with quantity and unit of measure of each component.
The header of the BOM contains the information of the material whose BOM is to
be maintained. A finished product may be
assembled from many components.
In SAP all
BOMs are single level. In SAP we maintain BOMs for all the assemblies
(semi-finished products and of course for the finished product. Therefore,
various SINGLE level constitute together to form a complete product structure.
BOM yields the quantitative recipe which is
used by the MRP as its basis; these define the relationships of assemblies (finished products semi-finished
and) and their components (packaging and raw materials). Thus, BOM becomes a
framework on which the entire planning process depends. As a vital part of MRP,
BOM must be accurate and up to date for its output to be valid.
The quantitative recipe of the BOM is also significant to controlling issuance of components for production and also for product costing.
While
creating BOM the following data is taken into consideration:
Information Required
|
Descriptions
|
Material Number
|
Finished
or Semi Finished product whose BOM is to be created.
|
Plant
|
Plant,
to which the BOM belongs.
|
Base Quantity
|
Quantity
to which all component
quantities in a BOM relate.
|
Components
|
The
list of materials required for manufacturing a product.
|
Component
Quantity
|
Quantity
required for producing the base quantity of finish product.
|
BOM Structure
At MYCOMPANY, BOM would
be maintained for both finished products and semi-finished products.
Creation of BOM
Process
|
Description
|
Process owner
|
Triggering event
|
Create BOM
|
A fundamental
activity required for all types of semi-finished and finished materials.
The NPD Manager
would define a base quantity for the parent material (for which the BOM is
being created) and would also define the components quantity required
|
Manager NPD
|
When SAP landscape
is being created or when a new material would be brought into production.
|
At MYCOMPANY, Manager NPD is responsible for
creating all the Standard BOMs either with Trial, Development or Active
(Commercial) Status. To- be process for BOM creation at MYCOMPANY is as
following:
Once the trial BOM has been created NPD will
intimate QA for approval to create the development BOM, once approval is
received NPD will create the development BOM.
Editing BOM (To-Be)
Process
|
Description
|
Process owner
|
Triggering event
|
Edit BOM
|
The NPD Manager
may decide to edit a BOM for a particular film if there were any change in
the formulation.
While editing a
BOM, the production Manager may edit the base quantity or the components
quantities required.
The production Manager
may also change the storage location from which the component would be
issued.
|
NPD Manager.
|
Change alert
initiated by NPD and approved by Manager Q/A.
|
Editing BOMs could become a necessity for
following major reasons:
·
There could be problems in the
quality parameters if we use a certain recipe.
·
NPD may come up with better raw
and packaging material substitutes.
·
The usage quantity of a certain
component may be changed.
·
The batch size of a product may
be revised and hence the base quantity would be updated.
·
Responsibility: Manager NPD
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