Product Structure


System Objectives

BOM (Bill of Material) is the important component of ERP system which produces the core information of manufacturing enterprises.

BOM and the material information are the basic data source for production plan. BOM defines the type and amount of particular materials needed in the production. For most of the enterprises, their products are produced by multiple sections and prescriptions, especially for electronic products, toys, clock & watch, machinery, and chemical products. Producers may need dozens or even hundreds of different parts to finish the production while each part may have its own BOM structure which finally end up with a multi-layer tree diagram of product structure. BOM affects all logistic control and its structure decides what materials are needed and affects the cost of production and delivery time. Therefore, BOM is the core driver of manufacturing business. If there is no stable and clear BOM, there is no ERP.

This system is designed to use IT techniques to save man-power and increase the enterprise efficiency.

System Functions

Provides limit control of assembly items standard manufacturing lot size and yield rate, satisfying the material usage of make-to-order of sales type.
Provides the formation of a chart showing the priority of usage of substitute items (major/minor) or replace items (new/old), when MRP module calculate the materials. The system will auto generate the substitute materials when major items is insufficient. The system will also increase the flexibility of material usage and avoid shortage of materials or misallocation of stock.
Recording the effective date and expiry date for the control of change of engineering.
Provides control of phantom items to simplify the BOM control and provides online manufacturing parts.
Materials are categorized: Option Items, Accessories Items and Kit Items. This can simplify the orders. "Sales Order BOM" is for some products which materials can be changed during Sales Order generation. "Optional Items" are some information must be entered. For example, when ordering a car, customer must choose the type of engine: 2000cc or 3000cc. However, customer may not need to order the audio system. Engine is an "Optional Item", that customer must make a choice; while audio system is an "Accessory Item" that customer can make a choice or not. In such case, users need to change the BOM in the sales order according to customers needs.
Users can default whether the materials of certain products are included in the calculation of standard cost. System provides material types, namely direct materials, indirect materials, sub-contract supply material, material not issued and customer supply material.
Provides calculation of material scrap rate for the accurate analysis of material issue or purchasing demand.
For the same item which can be used in more than one operation, users can set different operation codes and material issue interval for that item. During the manufacturing routing process, users can issue materials according to the information.
Users can set the sequence of displaying the materials and those can be recorded with their own item routing process and insert location.
Provides single level, multi-level and lowest level material expansion usage report and single level, multi-level and lowest level material expansion "where used report". Multi-level enquiry or lists provide corresponding users the information of the formation and relationship of products.
Can replace or change the information of materials by the whole lot. Also, the usage of related items can be auto-changed by the system at once. The information will be updated in ECN and pass to control which comply wit ISO standard.
Provides copy of material usage information and removing whole lot of expired material for easy material maintenance.
Provides auto-generation of PR Note and purchase order by expansion of material usage demanded for easy reference as to what materials needed to be purchases.
Can calculate the standard cost a product or material (material cost, labor cost, manufacturing cost). Hence, the system can auto-calculate the standard cost of the products through roll-up method and this can be the basis of calculating the cost of product.
Provides "low-level code" auto-calculation and update function, for calculating standard cost, material usage and cost of manufacturing. This method is more efficient than the traditional one in calculating MRP.
Provides single level and multi-level standard cost list. The system can analyze the cost structure of a product for settling the price level of the finished product.
Provides ECN and users can trace back the change history, print change note and detailed list, for effective control of ECN.
In accordance with control of ENC, system provides "BOM dead stock forecast analysis report" to prevent wasting material cost of dead materials during the process of ENC.
Provide assembly note. When assembly is finished, number of assembly items decreased and parts increased, the assembly items cost will be dissolved in those parts.
Provides disassembly note. When disassembly is finished, number of assembled items decreased and parts increased, assembled items cost will be dissolved in those parts.
Allows setting prefix codes for documents, users can have their own settings according to their preference. Users access rights to certain prefix does can also be set to avoid misuse of prefix codes. System also allows setting 5-level approval and voiding. It can be divided into 2 approval methods - parallel approval and approve by level. This suits the need to different approval requirements of documents. Systems can auto-send out e-mail or SMS to the corresponding users for approval after each function processed.
Provide control on E-BOM in engineering department to monitor the process of designing of development to manufacturing.
Can set E-BOM item code independently for future use as real item code.
Input E-bom usage is just the same as inputting BOM usage. It is to input the information of item code, usage, type, etc. of a product. E-BOM multi-level "material usage report" will then be generated for easy operation and can be used as reference to change the E-BOM to BOM in future.
Input E-BOM change note. Users can trace back the history of change record, printing change note and detailed list for better control on ECN and E-BOM.
E-BOM can be changed to real BOM and E-BOM item codes can be changed to real item codes.