Bill of Material: Technology Solutions Company

Technology Solutions Company
Bill of Material
1
Copyright 2006 Technology Solutions Company
Objectives
Describe the bill of material's new role

Explain various bill of material terms
Describe the unique requirements of Configuration Management
Discuss different types and formats of Bills of Material
Explain how Bills of Material are used in a Maintenance, Repair
and Overhaul environment
Describe the "company" bill of material and explain why it must
be highly accurate
2
Bill of Material
A Bill of Material Described:

A listing of all the part numbers which make up an assembly
including the quantity of each part per assembly.
There are a number of Bill of Material formats, and
application users.
3
The Bill of Material Answers the Question ?....
What does it take to make it?

Part Number(s)
Quantities Per Assembly
Units of Measure
BOM
Lot Sizes Per Part
Lead Times
Structures
PM
4
Bill of Material
What is the Bill of Materials role in the Operations Planning

Process?
It provides the scheduling framework around which the whole

system operates
5
Bill of Material
TIME
PURCHASE
FABRICATE
ASSEMBLE
SHIP
6
Bill of Material
Part Number
A unique identifier
Must be assigned if the item is:
Different in form, fit, or function
Purchased
Manufactured
Stocked
Should be short and non-descriptive
7
Item Master / Part Master
A common database of
ENG MFG information required to
describe a part
A "shared" file
ORD POL INV
Allows all users to define a

single part number in their own
PUR ACC terms
Accountability of each data

element must be assigned
RM QA
8
Item Master / Part Master File
Effectivity
ENG MFG Revision Numbers, Part type
codes, Part Status
Manufacturing Lead Times
Order Policy
ORD POL INV
Demand/Issue Data
Lot Sizes
Cycle Count Data
PUR ACC Warehouse Data
Vendor Lead Times
Cost Data
RM QA Dimensions, Specifications
Inspection Requirements
9
The Parent Component Relationship
The linkage of one parent part with one component part
All assemblies are considered to be parents
An assembly can be a fabricated part, subassembly, assembly,

or end item
The items which make up these assemblies whether purchased

or manufactured, are called components
10
Single Level Bill of Material
PARENT PARENT
COMPONENT COMPONENT COMPONENT
11
Multi-Level Bill of Material
PARENT PARENT
COMPONENT COMPONENT COMPONENT

PARENT
COMPONENT
& PARENT
PARENT
COMPONENT COMPONENT
Structures are created one level at a time

12
Product Structure
1001
Exercise Sct.
1 EA.
1012 1013 1014

Structural Assy T/M Tray Assy Res Brd Assy
1 EA. 1 EA. 1 EA.
1021 1022 1023 1024

Str Shell Assy Bracket Support Assy Insulator Panel
1 EA. 1 EA. 1 EA. 1 EA.
1032 1034
Shell Angle
1 EA. 1 EA.
A series of single level Bill of Material which defines the sequence in which a
product is manufactured. A typical product structure would show raw material
being converted into fabricated parts, the parts being put together to make
subassemblies, and the subassemblies going into the assemblies, etc.
13
Are we talking the same language?
AS-DESIGNED AS-PLANNED
Engineering
BOM
(EBOM)
=Production
BOM
(PBOM)
14
EBOM vs. PBOM
EBOM PBOM
The EBOM is a listing of all the The PBOM is a listing of all the
design part numbers required to subassemblies (including
make an assembly "synthetic"), parts, and raw
The EBOM reflects design as materials required to
opposed to manufacturing manufacture an assembly
structure The PBOM reflects the actual
EBOM typically excludes: manufacturing process
"synthetic" part numbers The PBOM is the only Bill that
raw material quantities feeds MRP
supply items (A/R)
EBOM typically includes:
Drawings
technical specifications
15
EBOM vs. PBOM
Technical
EBOM Specifications S1 ST 56 AB 78 91 DE
"Phantom" 1A 11 11
10
"Synthetic" 12 34
PBOM 56 AB 78 91 DE
Raw Material
Quantities 10 11 11
16
The Phantom Part
Phantom is a method for "deleting" a level in the BOM without

an engineering change
Phantom part numbers are the equivalent to manufacturing

operations
They are immediately consumed by the next operation
They are not usually stocked
They usually appear on the engineering bill of material
17
Phantom Logic
Planned
Subassembly Orders 5 5
Gross
Requirements 5 5
Projected
On Hand 0 -5 -5
The Phantom
Part Number Scheduled
Receipts
Planned
Orders 5 5
Lead Time = 0 Order Policy = 1 for 1
Purchased Gross
Raw Material Requirements 5 5
18
Phantom Logic
Planned
Subassembly Orders 5 5
Gross
Requirements 5 5
Projected
On Hand 5 0 -5
The Phantom
Part Number Scheduled
Receipts
Planned
Orders 5
Lead Time = 0 Order Policy = 1 for 1
Purchased Gross
Raw Material Requirements 5
19
Synthetic Part Numbers
Are not generally found on the EBOM
Created to facilitate assembly and stocking
Are used to add a level without an engineering change
SYN: Manufacturing Convenience Assembly Pseudo
20
Configuration Management
The process of ensuring that the correct physical configuration

for a deliverable item is controlled from planning through delivery
Means of having an accurate history of what components were

procured, issued, assembled, and delivered
For a product which is in a constant state of change, an accurate

"As-Built" bill of material is often time consuming and difficult to
reconstruct
21
Configuration Management
How is the Configuration of a BOM documented?
Engineering Change Order no. 543208

Severity of Change 05 Status 2
Reason for Change COST Effectivity M/00001
Dept. requesting change PUR Person Resp JM
Parent Component Change comments
192837465 102938477 Add component

to assembly
22
Effectivity
The content of a Bill of Material is controlled by. . .EFFECTIVITY
Z Q
B A C
When is Component "E" selected D E
Instead of Component "D" ???
23
Effectivity
The BOM for Parent C contains two component records (D and

E)
Engineering originally designed C to be fabricated from raw
material D
They subsequently generated an engineering change to
replace D with E
The "phase-out" of D and the "phase-in" of E are controlled
by the EFFECTIVITY in the BOM
D E
24
Effectivity
Types of Effectivity
DATE SERIAL BLOCK MODEL / UNIT
Least Control Used by Used in Mid- Highest level
Electronic range sub- of control
Industries assemblies
Used at
lowest Level Also known
in BOM Single Level Multiple level as tail
Effectivity Effectivity Effectivity
Single Level
Effectivity Forerunner of Used in total
M/U assemblies
Multiple
levels of
Effectivity
25
Date Effectivity
Z Q 08-01-97 12-01-97
C C
B A C
D E
D E
IN 06-01 10-01
OUT 10-01
A components usage in a BOM is triggered by a specific point in
time
26
Serial Effectivity
Z Q S/N 10 S/N 25
C C
B A C
D E
D E
IN 01 11
OUT 11
A component's usage in a bill is triggered by a specific serial
number of its immediate Next Higher Assembly (NHA)
27
ARE YOU PAYING ATTENTION?
Question
Who uses a Bill of Material and why?
Answer
Design Engineering
Create Drawings
Document Product Design
Manufacturing Engineering and Process Planning
Create Work Instructions
Add Tooling Information
Create Synthetic Part Numbers
Material Planning & Control
Schedule All Parts
Generate Pick Lists
Maintain Order Data
28
ARE YOU PAYING ATTENTION?
Question
Who uses a Bill of Material and why? Have we missed anyone?
Answer
Financial Planning and Control
Estimate Product Cost
Maintain Cost vs. Estimate
Report Cost to Complete
Quality Control and Configuration Management
Link Design Engineering, Process Planning, and Material
Information to Obtain An "As Built" BOM
Maintain Configuration
Verification of Records
Inspect to Authorized Bill of Material
29
Types of Bills of Material
A
AS-DESIGNED Document Original
Engineering Design B D
C
A
AS-PLANNED Restructure to match
Manufacturing flow Phantom B D
C
ORDER BILL Incorporate changes

B D E Substitute
specific to the order
C
30
Types of Bills of Material Continued
A
AS-BUILT Capture WIP
Transactions B E E Scrap/
reissue
SN1001 C
A
AS-MAINTAINED Document Field
Modifications & B E F
Upgrades
C Retrofit
31
Types of Bills of Material Continued
As As Order As As
Designed Planned Bill Built Maintained
Potential BOM Changes Over Time
Order Repair
Product Issue After
Design Shipment
Engineering Customer
Change Change Product
Enter Request Delivery
Customer Order
Order Release Scrap
&
Mfg Part Rework
Process Substitution
Definition 32
Bills of Material Flow
EXPLOSION IMPLOSION
A1
C1 C2 C3 C4
A1 A2 A3 A4
C4
Single/Multi Level Single/Multi Level

Parts Lists/Relationships Where-Used Information
33
Multi-level Bill of Material
Low Level Codes

Each part number has a Low Level Code
Low Level Codes are system assigned and system
maintained
The purpose of the Low Level Code is to enable the system
to process data efficiently
For multi-level/multi-use items, the total requirements will be
determined only when the system reaches the lowest point
in any product structure in which the item is a component
34
Low Level Codes and System Processing
0 X Y Z
1 B C
2 C B
3 C
35
Single Level BOM Formats
Single Level Bill of Material

A display of those components that are directly used in a
parent item
Single Level Where Used

A display of parent items that directly use a component and
the quantity required
36
Indented Bill of Material
A form of a multi-level bill of material
Exhibits the highest level subassemblies at the left margin

All the components (going into these subassemblies) are
indented to the right
All subsequent levels of components are indented farther
to the right
Components used more than once appear as a component

under every subassembly in which they are used
37
Missile Assembly
Level P/N Description MB UOM Qty
0 123456 Missile M Ea 1
.1 123457 Avionics M Ea 1
..2 123458 Radome M Ea 1
...3 1234569 Casting B Ft 6
..2 123412 Altimeter Antenna B Ea 1
..2 123413 Cover M Ea 4
...3 1234514 Raw Sheet Stock B Sh 12
.1 123416 Sustainer Section M Ea 12

..2 1234156 Air Inlet Duct M Ea 1
...3 9876543 Raw Sheet Stock B Sh 36
..2 8564231 Battery B Ea 1
38
Definitions and Terminology
Material Recovery Rate (MRR)

A percentage of yielded (recovered), refurbished, or
repairable components from disassembly process
The Material Recovery Rate drives inventory levels
Replacement Factor (RF)
A percentage determined from historical data of
unserviceable components within a repairable assembly
RF drives Procurement Orders
RF = (1 MRR)
39
Definitions and Terminology
Probabilistic BOM
A listing of parts which
ENGINE
includes the Material
Recovery Rate (MRR) or
1 EA
Replacement Factor (RF),
as well as the quantity
TURBINE INLET STARTER
required per assembly
DISC ASSY
It is not necessary to have a
disassembly BOM and an MRR .80 MRR .98 MRR .85
assembly BOM; the only RF .20 RF .02 RF .15
QPA 1 EA QPA 1 EA QPA 1 EA
difference required of repair
and overhaul is the addition
of the fields "MRR" or "RP"
40
Probabilistic Bill of Material
LEAD TIMES: REPAIR - 5 WEEKS, ASSEMBLY - 2 WEEKS
PN: Engine 4 5 6 7 8 9 10 11 12 13
GROSS 12
REQUIREMENTS
SCHEDULED 5
RECEIPTS
PROJ AVAILABLE 5 5 5 5 -7
BALANCE
0 0
PLANNED ORDER 7
DISASSEMBLY
PLANNED ORDER 7
ASSEMBLY
On Balance x MRR
Requirements for components
41
Probabilistic Bill of Material
Requirements from parent (Engine)
PN: TURBINE DISC 4 5 6 7 8 9 10 11 12 13
GROSS 7
REQUIREMENTS
SCHEDULED Shop
RECEIPTS Purch
PROJ AVAILABLE BALs
Repaired (1) 0 6 6 6 -1/0
Repairable (2) 8 8 8 8 7 7 7 7 7 7 7
New (3) 1 1 1 1 1 1 1 1 1 1 1
PLANNED ORDERs
Mt'l Recovery (1) 6
Shop Orders (2) 1
Purch Orders (3)
LEAD TIMES: REPAIR - 3 WEEKS, PURCHASING - 6 WEEKS
7 (Parent Disassembly Order) x .80 MRR = 5.6 ~ 6 ea 42

Exercise Create an
43
Exercise
111
END ITEM
INSTRUCTIONS
1 EA
On the form provided,
create an indented 333 444 222 100
BOM list the SUBASSY RAW MATL BUY PART SUBASSY
following: 2 EA 16 FT 10 EA 1 EA
Level (Low Level

875 950 950 625
Code) FIN CAST HDWARE HDWARE SUBASSY
Part Number 4 EA 24 EA 8 EA 1 EA
Description 555 950 777

CASTING HDWARE FIN PART
Make/Buy Code
4 EA 16 EA 1 EA
Unit Of Measure
(UOM) 777-1
FORGING
Quantity 1 EA
Required
44
Exercise
LEVEL PART NUMBER DESCRIPTION M/B UOM QTY
45
Exercise - Answer
LEVEL PART NUMBER DESCRIPTION M/B UOM QTY

0 111 END ITEM M EA 1
.1 333 SUBASSEMBLY M EA 2
..2 875 FIN CASTING M EA 4
...3 555 CASTING B EA 4
..2 950 HARDWARE B EA 24
.1 444 RAW MATERIAL B FT 16
.1 222 BUY PART B EA 10
.1 100 SUBASSEMBLY M EA 1
..2 950 HARDWARE B EA 8
..2 625 SUBASSEMBLY M EA 1
...3 950 HARDWARE B EA 16
...3 777 FIN PART M EA 1
....4 777-1 FORGING B EA 1

46
Indented Where Used
A listing of every parent item, and the respective quantities

required, as well as each of their respective parents, continuing
until the ultimate end item or level 0 is referenced
....APICS Dictionary
47
Summary Bill of Material
A form of a multi-level bill of material

Lists all the part numbers and quantities required for the next
higher assembly (NHA) and for the end item
Unlike the Indented BOM, does not list the levels and lists a
component only once for the total quantity used
Part Number: 1234

Description: Aircraft
Part No. Description M/B UOM Qty
123412 Altimeter Antenna B Ea 1
1234569 Casting B Ft 6
123413 Cover M Ea 4
123457 Avionics M Ea 1
8564231 Battery B Ea 1
9876543 Raw Sheet Stock B Sh 48
123416 Sustainer Section M Ea 1
48
Costed Bill of Material
A bill of material format displaying the extended cost of every

item in the bill of material
PART # DESCRIPTION M/B UOM Q/PER COST
91609 Inter Face Assy M EA 1 49.95

71987 Lanyard Assy M EA 4 20.00
65334 ID Marker M EA 1 50.00
13702 Cable Coax Assy M EA 1 50.00
56545 Plug B EA 1 1.95
49
Lead-time Display
A pictorial representation of the lead times for an indented bill of

material
Aircraft Cumulative lead-time - 12 periods
Level Part Description MB 2 1
12 11 10 9 8 7 6 5 4 3
0 Aircraft M
.1 Barometric Section M
..2 Barometric Probe M
...3 Cable Assembly B
..2 Pressure Probe B
..2 Wire Assembly M
...3 Wire B
.1 Boattail Locator M
..2 Boattail Section M
...3 Plate B
50
Case Study BOM

Accuracy
51
Case Study
Bobby Gene, who works in Final Assembly, was talking to his friend, BJ,
who works as a Material Control Analyst in the same plant. Bobby and
BJ have been employed at the plant for 25 years and 15 years
respectively. Both are highly regarded by their peers and superiors.
"...things are sure loused-up out there: stores is always sending too much
of this and too little of that. In fact, just this morning, we had to
emergency req fifteen harnesses because the order was short. And,
the other day, Ole Joe who works in the crib, returned what seems to
have been a year's supply of resistors they use up in 1131. I'll tell you
something, BJ: I know they've got to be spending some big bucks on
reworks and out-of-station installations.
BJ shrugged his shoulders and replied: "I hear you. If you ask me, this
fancy new computer system the bigwigs are installing isn't going to help.
We got along for years with the old system and it worked just fine."
52
Case Study
What's wrong with this?
What would you do if you were Bobby and BJ's supervisor
53
The Problem with Many Bills of Material
FINANCE MFG ENGINEERING

Separate bills contain 192837 192837
different information when
they should not
Loss of organizational
efficiency through
duplication of effort
Lack of responsibility and
accountability
DESIGN ENG AS BUILT
192837 192837
54
A Common Bill of Material
A common bill of material

database is essential for
successful MRPII
It means having one uniform set
of product structure information
which can be used by all
functions
Consequently, all users draw
upon one source of correct and
up-to-date information
55
Reconciliation
DESIGN MFG.
ENGINEERING ENGINEERING
192837
192837
BOM
DATA BASE
Where are they different?

Why?
Are the differences documented?
56
Bill of Material
Performance Measurement
What is being measured? Bill of Material Accuracy
What is the target? 98%
How is the % calculated? # of Accurate BOMs

# of BOMs Audited x 100
Performance Criteria:
Part Number
Quantities Per Assembly
Unit of Measure
Effectivity
Make/Buy Codes
57
Work Centers - Routing
58
Objectives
Define a work center

Describe a routing/process plan
Discuss the information found on a process plan
59
Work Centers and Routings
The Bill of Material answers the question.....

"What does it take to make the product?
The Work Centers and Routings answer the question....

"Where and How is each manufactured part made ?"
BOM
PM
INV Material Capacity

Requirements Requirements
Planning Planning
WCs
RTGs
60
Routings
A Routing must be created for each manufactured part

Routing ( aka Bill of Operations ) is a set of instructions which
describes how a particular part is to be manufactured
The routing lists the tasks (operations) to be performed and in
what sequence
It documents the time (in standard hours) required to perform
each task
It may include additional information such as: inspection
requirements, tooling, labor grades, specifications, drawings,
etc.
The Routing also specifies a Work Center for each operation.
The Work Center defines where the operation is to be
performed
61
Routings
2121 (Cable Assembly)

OPER ID WORK CENTER ID LABOR SET UP STD
LINE OPERATION DESCRIPTION GRADE HOURS HOURS
000600 E194 4 0.07 0.090

EW11 ASSEMBLE ON WJB
01 WJB72A80RWK10
02 2455 RE 1E189 COAX CABLE ASSY
03 29547 RE 1E189 CABLE COAX ASSY
RE 1 T2344 CABLE COAX ASSY
04 5017 RE 1E155 1ST TERM W/B
05 5007
06 PN01 WRAP FILTER PIN CONNECTORS AND BRACKET WITH
RIPPLE CLOTH TO PROTECT FILTER PIN AND PREVENT
DAMAGE TO W/B FROM SHARP EDGES OF BRACKET
000800 E189 1 0.00 0.001
62
Work Center
A Group resources (people or machines) according to

characteristics of task to be performed.
Define work center capacity in standard hours
Responsibility for the work center must be clearly defined
The work centers must be held to a minimum for control
purposes
The work center capacity must be measurable
63
Work Center Cost Centers
In a MRP system, Work Centers are used for planning and

controlling a detailed schedule
A Work Center is a specific production facility which consists
of one (or more) people and machines which can be
considered as one unit for purposes of planning and control
A Cost Center is the smallest segment of an organization for
which costs are controlled
A cost center may not be identical to a Work Center.
Normally, Cost Centers will encompass more than one Work
Center
64
Routings and Planned Orders
Start Due
Operation
OP 1 OP 2 OP 3 OP 4 OP 5
Sequence
Standard
.5 Hrs 1 Hr 3 Hrs .5 Hrs 4 Hrs
Hours
Paint Work
Lathes Drilling Milling Deburr Center
Shop
Load
Profiles
65
Routings
What is being measured? Routing Accuracy
How is the % calculated? # of Accurate RTGs x 100

# of RTGs Audited
Operation Sequence
Work Center Assignment
Standards
66
Work Centers
What is being measured? Work Center Accuracy
How is the % calculated? # of Accurate WCs x 100

# of WCs Audited
Resource Interchangeability
Capacity
Standards
67
End of Bill of Material
68

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Technology Solutions Company

Describe the bill of material's new role

A Bill of Material Described:

What does it take to make it?

What is the Bill of Materials role in the Operations Planning

It provides the scheduling framework around which the whole

Allows all users to define a

Accountability of each data

The linkage of one parent part with one component part

All assemblies are considered to be parents

An assembly can be a fabricated part, subassembly, assembly,

The items which make up these assemblies whether purchased

COMPONENT COMPONENT COMPONENT

COMPONENT COMPONENT COMPONENT

Structures are created one level at a time

1012 1013 1014

1021 1022 1023 1024

Phantom is a method for "deleting" a level in the BOM without

Phantom part numbers are the equivalent to manufacturing

Are not generally found on the EBOM

Created to facilitate assembly and stocking

Are used to add a level without an engineering change

SYN: Manufacturing Convenience Assembly Pseudo

The process of ensuring that the correct physical configuration

Means of having an accurate history of what components were

For a product which is in a constant state of change, an accurate

How is the Configuration of a BOM documented?

Engineering Change Order no. 543208

Parent Component Change comments

192837465 102938477 Add component

The content of a Bill of Material is controlled by. . .EFFECTIVITY

When is Component "E" selected D E

Instead of Component "D" ???

The BOM for Parent C contains two component records (D and

ORDER BILL Incorporate changes

Potential BOM Changes Over Time

Single/Multi Level Single/Multi Level

Low Level Codes

Single Level Bill of Material

Single Level Where Used

A form of a multi-level bill of material

Exhibits the highest level subassemblies at the left margin

Components used more than once appear as a component

.1 123416 Sustainer Section M Ea 12

Material Recovery Rate (MRR)

LEAD TIMES: REPAIR - 5 WEEKS, ASSEMBLY - 2 WEEKS

Requirements from parent (Engine)

PN: TURBINE DISC 4 5 6 7 8 9 10 11 12 13

LEAD TIMES: REPAIR - 3 WEEKS, PURCHASING - 6 WEEKS

7 (Parent Disassembly Order) x .80 MRR = 5.6 ~ 6 ea 42

Level (Low Level

Description 555 950 777

LEVEL PART NUMBER DESCRIPTION M/B UOM QTY

...3 555 CASTING B EA 4

..2 950 HARDWARE B EA 24

.1 444 RAW MATERIAL B FT 16

.1 222 BUY PART B EA 10

..2 950 HARDWARE B EA 8

..2 625 SUBASSEMBLY M EA 1

...3 950 HARDWARE B EA 16

...3 777 FIN PART M EA 1

....4 777-1 FORGING B EA 1

A listing of every parent item, and the respective quantities