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Bill of Materials (BoM)

DemandCaster Bill of Material (BOM) add-on adds the capability to explode finished goods forecasts to components and optimize inventory at all levels of the bill of material.

A bill of material (BoM) is a list of the parts or components that are required to build a product. The BoM provides the manufactured part number and the quantity needed for each component. A BoM may be used for manufactured finished goods, sub-assemblies, or Kits. When we use the term parent, we are doing so from a hierarchical perspective where the parents are the top level assembly and the children are the components within the assembly.

Bill of Material Features:

  1. Explosions to components are offset by the lead time of the item(s) within each level.  Users have the option to explode the BOM in daily buckets for a precise explosion and cumulative lead time calculation.
  2. If a level within a bill of material is stocked, DemandCaster will not duplicate safety stocks at lower levels of the bill of material. There is, of course, an option to add safety stocks at these levels to add extra inventory in order to accommodate any supply or demand variation.
  3. The "Clean to Build" color coding feature provides users with the ability to view if the item that is scheduled to be released to production has the components available to do so. It also exhibits relative availability of a given item to illustrate urgency.

The BoM Data Structure

The BoM may be loaded automatically or as a manual upload as a tab delimited text file (zipped) if the BoM does not exist in your ERP system.

The BoM may be location specific or general. A location specific BoM is one where the BoM for a specific item is related to a specific manufacturing or assembly location. General means that all locations use the same BoM. A general BoM is also applied when DRP is not enabled.

A general BoM is structured as follows:

  • Column 1: Parent: The finished goods, kit, or sub-assembly item number
  • Column 2: Child: The component item number
  • Column 3: Qty Per: The number of components that are required for each one parent. Quantity is based on the child's unit of measure. Think of it like a recipe to produce 1 cake.
The BoM Data Structure

A location specific BoM is structured in the same manner as above but with an additional column that defines the specific location where the BoM is used. In the example below, assembly ABC in location 21 uses a different set of components as compared to location 25:

Multi-Level BoM

  • Column 1: Parent
  • Column 2: Sub-assembly
  • Column 3: Quantity per
  • Column 4: Location

Then the sub-assembly can have its own BoM as follows:

  • Column 1: Sub-Assembly
  • Column 2: Component
  • Column 3: Quantity per
  • Column 4: Location

This repeats to as many levels as possible all within the 3 or 4 column construct. DemandCaster will then stitch these together.

BoM Visibility

Please note that only items that are designated as Make (M) will explode a BOM. If the item is set as a Buy, there will no BoM visible even if a BoM has been uploaded.

A Phantom (P) assembly serves as a pass through within the BOM. The phantom item's Make/Buy status field in the item.txt must be P. As a phantom these items are not forecasted but they are visible in the Selection UI and BOM Panel.

Where to View the BoM

If a BoM is active for a specific item, the side panel in the Item Planning Detail View will show the words "BOM Panel."

  1. Clicking on BOM Panel will open the panel.
  2. Clicking on the pin, will keep the panel open. Once locked, clicking on the pin a second time will close the panel.
  3. The BOM detail will be visible.
  4. Clicking on the Select parent drop down will show all the other parents where a component is used. All components may be clicked on to go to the Item Planning Detail View of the item.
  5. The values in the parenthesis are as follows:
    • The first value designates if the component or parent is a Make (M) or Buy (B)
    • The second value designates if the component or parent is a non-stocked item (Order (O)) or stocked item (Stock (S)).
    • The third value defines the number of components needed per 1 parent.
  6. The color coding are indicators related to the Clean to Build Logic

General Item Analysis Tab View

You may also view the BoM by clicking on the General Item Analysis tab in the Item Planning Detail View. Scrolling down to the bottom section names Stocking Analysis will allow the user to view the BoM of the item but also which parents use the component.

  1. Click on the open/close button to open the view
  2. The item BoM is on the left hand side of the panel.
  3. The Parent (Where Used) is on the right hand side of the panel. Clicking on any of the items in either the BoM or Where Used sections opens the item that is clicked on.
  4. The Stocking Analysis includes additional information in the brackets as follows:
    • The first value "R" defines the total independent and dependent revenue of the item
    • The second value defines if the item is a Make (M) or Buy (B)
    • The third value defines the number of components needed per 1 parent.
    • The forth value is the Customer Response Time of the item as defined in the Stocking Analysis article.
    • The fifth value is the Replenishment Lead Time of the item as defined in the Lead Time Analysis article.
    • The sixth value designates if the component or parent is a non-stocked item (Order (O)) or stocked item (Stock (S)).
    • The seventh value defines if the stock versus order designation has been addressed if there is a conflict created during the Stocking Analysis process.
  5. In the Where Used section, there are additional values that designate the segmentation ranking of the item as well as the stock versus order path through the BoM. The stock versus order designation before the component is the stocking designation for the parent. The stock versus order designation after the component is the stocking designation for the component. The Stocking Analysis needs to be run in order to reflect the latest settings.

Preparing and Uploading a BOM Table

Here is a video that describes the steps to prepare and upload a BOM file: BOM Prep and Upload

Please note that each time you add or remove a BOM, the entire BOM file must be uploaded. This is because there is a time stamp as part of the BOM load so that you can go back in time and see how the BOM has changed. An old time stamp will not be used in a current requirement plan.

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