Reasons your industry should invest in BOM setup

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In all implementations of industrial management systems, the most basic record for the program to work is the configuration of bills of materials. This is a rule. There is no stock control, material requirement planning (MRP), material yield analysis, among other important information without a good parameterization of the list of materials .

Known in English as “Bill of materials” (BOM) or commonly as “Cake recipe”, its importance within an industry is undeniable. If the list of materials is well done, all other system modules and company departments will use reliable information for their controls.

Below I will list, in the form of deviations or errors that may occur if the list was drawn up incorrectly, the 8 main reasons why you should invest time and dedication in drawing up a good list of materials.


PDF bill of materials guide
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List of materials
1. Get the calculation of the need for raw materials right
The first reference when we imagine a list of materials is the finished product, consisting of its raw materials and the respective quantities. To facilitate understanding, we will use the following example of a list of materials for the finished product ”'PA 001”'.


According to this parameterization, if the PPCP sector opened a production order for the manufacture of 100 Units of ”'PA 001”', the following needs would be triggered for each raw material:

MP001 = 2 Kg/unit * 100 units = 200Kg
MP002 = 1 unit/unit * 100 units = 100 units
MP003 = 1 Kg/unit * 100 units = 100 Kg
MP004 = 7 units/unit * 100 units = 700 units
For some reason, product development misidentified the need for the MP001. The correct required quantity should be 3 Kg/unit of PA 001. If the production order is released for production, the employee would certainly take an insufficient amount of MP001 for the manufacture of PA 001.

Just like in the example where the planned quantity of MP001 will be insufficient for the order, we could also have the problem of generating a need beyond what is necessary. For example, MP004 would need only 5 units/unit of PA 001. With the wrong list of materials, a need for this material was generated with 200 units more than should be used.