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BILLS OF MATERIAL

Where is that part used and what is it used on? Have you got sufficient stock of all of the components to make a product? What will my products cost if my labour costs rise? These and other questions can be answered by utilising the Bills of Material module in conjunction with WIP.

Overview

Bills of Material are lists of the components and quantities used to make an assembly or mix. The costs of these components when combined with the quantity can be used to arrive at the cost of making the assembly. The list of components used to make a (sub) assembly can be applied to a production schedule to arrive at the full list of raw material, labour and machine time needed to make the products on the schedule. The WIP module uses these lists in conjunction with production schedules, sales orders, purchase orders and present WIP production and requirements to produce a full Material Requirements Schedule by date within part.

Features
  • Multiple number of Specifications of the ways to make an assembly/product
  • Virtually unlimited number of components on a product
  • Up to 50 levels of sub-assemblies per product specification
  • Up to 9999 parts/sub-assemblies per level
  • Enter only the direct components of an assembly. Any sub-assemblies in the components list will be broken the their components list when required.
  • The same component can appear multiple times as a direct component of an assembly
  • The quantities making an assembly can be percentage adjusted up or down (useful for liquids) so that the total quantity on an assembly is a set number
  • Assembly costing by Material, Labour and Other
  • Costs build from the lowest level components (raw material) upwards to the final product
  • Wastage and Set-Up allowances
  • Factors may be used to allow for small quantities. (e.g. Labour used by minutes but costed in hours)
  • Only supply the immediate (level 1) components of an assembly
  • Used to hold the components of Kit-sets and Parts list for the Order Processing module
  • All level or immediate (level 1) only (costed) reports
  • Consolidated raw material and labour (by specification) report
  • Assembly list suitable for picking is available if not using the WIP module
  • On enquiry you may 'Drill Up/Down' through the various levels of assembly or used-on.
Specifications

It is recognised that an assembly or sub-assembly can be made in many different ways utilising different machines or having slight variations on models manufactured for a specific customer. These can still produce the same (or virtually the same) end product. Thus the system allows multiple 'specifications' for each part so that each way of manufacture can be defined and costed separately. This is particularly necessary if there are multiple production sites for a product.

Assemblies

In most manufacturing environments there is the situation where some components are assembled to produce sub-assemblies and these sub-assemblies are then used when assembling the main product. Quite often sub-assemblies contain other sub-assemblies etc. The system is capable of handling up to 50 levels of sub-assembly within any one assembly. A part may not be recursive (i.e. may not be it's own component at any level of sub-assembly). e.g. where a mix of components is made into a sheet, and shapes are stamped from the sheet, the material not used is often ground up again and put back in the next mix as one of the components. In this case the waste must be entered as a different part code.

Percentage Changes

In some cases where (say) liquids or food are involved the assembly requires the total of the component quantities to come to (say) 1000 (i.e. one litre). The module caters for this by allowing the quantities of the components on an assembly to be adjusted by a percentage. Thus if a new component is to be added to a mix it is possible to reduce the existing component by a percentage (to say 95% of previous) and add the new component as the 5%. Thus the mixture is still correct for 1000 litres and it was not necessary to change the quantity of each component separately. You can do the reverse by removing a component and going up to 100%.

Costing (basics)

The stock system updates the average cost automatically when a material receipt is processed so you can just copy the average costs into the Bills cost and recalculate the assembly costs without having to do any other process. You can copy costs in to the Bill costs with percentage changes by analysis group and then re-cost the assemblies to provide a 'What-if' situation. After calculating the (sub)assembly costs these resulting costs may be copies (with percentage increases or decreases) to other costs or sale prices in the Stock system.

Costing (assemblies)

When costing the assemblies the system will always cost the (assemblies) lowest level sub-assemblies first and then use those costs to arrive at the cost of the next level up of sub-assembly and so on up to the final assembly. When doing the costing the system splits the cost into Material, Labour and Other costs. Each item on the stock details has an indication showing into which of these groups the cost of a part should be accumulated.

Text

There is also the necessity to store instructions of how to make the assembly or sub-assembly. The system combines the parts list and the instructions on one sheet to give a storable print form of the details entered.

The text may be supplied for the overall assembly and/or for each component.

Wastage

The system allows a percentage of the final product to be lost as wastage and a percentage of each component to be lost as wastage.

 

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