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Bill of Material - SAP PP Module

Bill of Material - SAP PP Module A Bill of Material (BOM) is a complete, formally structured list of components (raw or semi finished ... thumbnail 1 summary

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
Material Number
Finished or Semi Finished product whose BOM is to be created.
Plant, to which the BOM belongs.
Base Quantity
Quantity to which all component quantities in a BOM relate.
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 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 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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