Manufacturers are tasked with the responsibility to handle their production needs consciously. A Master Production Schedule helps determine the number of items to be manufactured. Production scheduling helps business’ meet their demand and at the heart of it lies a list termed as the ‘recipe’ for manufacturers to produce their output, this list being the Bill of Materials.
What is a Bill of Material?
Bill of Materials includes components/assemblies, subassemblies, instructions required to use or repair in the production process. Traditionally, this list was created manually on spreadsheets which was a time-consuming endeavour. Automated Bill of Materials on the other hand which can be accessed using ERP systems ensures collaboration with engineering department, suppliers, purchase department, accounts department and operators. BOM is prepared by the engineering department of an organization includes important elements like the level or the importance that a component holds, part number, part name, phase of production in which a component will be used, quantity needed, unit of measurement, reference indicator and notes if needed to be added.
As the complexity of production keeps increasing day by day, ERP systems are able to accommodate these complexities by allowing for the creation of multiple layers of structure. This system ensures inventory optimization, costs and quality of production are kept in check. Work orders created from BOM speeds up the process giving order specific finished goods.
ExpandX ERP BOM Support
ExpandXs’ cloud-based ERP ensures that large amounts of data from a Bill of Material can be managed on the cloud without any hassle. Vendors are easily informed for the need of raw materials that arise in the organization. Factory supervisors can have a bird eye view on the production procedure while factory workers can easily work around the components avoiding any delays. Keep track of costs associated with every component to make strategic decisions while utilizing working capital. ExpandX provides ‘n’ or multiple levels of structure while creating BOM with ease. All these aspects make the use of an ERP quite beneficial for your organization.
For more information write to info@expandx.in or WhatsApp- 9448717207
Author: Rhea John, Marketing Intern, ExpandX Solutions Pvt. Ltd
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