> Bill of Materials Introduction

Bill of Materials Introduction

The Bill of Materials module enables you to create and maintain a model of your manufactured or assembled products. You can construct quantity or percentage relationships between assemblies (final product) sub-assemblies (bulk batches) and components (raw materials) using up to 15 levels and can assign each component (raw material) to a selected operation in the parent routing.

You can model the routing (i.e. the relationship between work centers and the time taken by the various elements of capacity usage) of the product to accommodate varying size batches, milestone operations, progressive scrap and dynamic elapsed times. The routing can also include information on tooling, operator skill levels, operation instructions, testing requirements, etc.

The complete bill forms the basis for material and capacity planning, shop floor control and costing. Full bill of material costing and what-if costing facilities are provided and you can implement product change control if you use the Bill of Materials module in conjunction with the Engineering Change Control module.

Configuring Bill of Materials

This task outlines the procedures you should follow to configure your Bill of Materials module.

Some of these steps are optional and depend on how you intend implementing this module.

  1. Use the Stock Codes program to define the details of all the items you use in your manufacturing process. This includes the finished products, components, co-products, by-products and notional parts.

    In addition to the Stock Code Details, you need to specifically define the Replenishment details, Production Details and the Demand time fence under the Sales options.

  2. Bill of Material Setup

    Define the Configuration, Preferences and User Defined Fields setup options you require for Bill of Materials.

  3. Use the Cost Centers program to define your cost centers.

    At least one cost center must be defined before you can create work centers. Against the cost center you assign the default information required for a group of work centers.

  4. Use the Work Centers program to define your work centers.

    At least one work center must be defined before you can enter operations in the Structures and Routings program.

    The apportioning of productive and non-productive labor costs to the General Ledger are defined against the work centers.

  5. Use the Work Center Move Matrices program to indicate the movement times between your work centers.

  6. Use the Capacity Calendar Maintenance program to define the daily capacity of each individual work center.

    You can overlay the Company calendar to establish available capacity. Non-working days from the Company calendar become non-working days for the work center.

  7. Use the Routings program to define your factory routings.

    You associate a routing to a parent part when you define a bill of materials.

    [Note]

    Once a route has been added, it cannot be deleted.

  8. Use the Machines program to define your machines and the standard time available time on each machine.

  9. Use the Tool Sets program to define details of the tools used to perform an operation and indicate the quantity of the tool that can be assigned to an operation.

    A tool is any instrument, such as a saw blade, that is the working part of a machine. Within SYSPRO, you add tool sets to maintain details of tools used to perform an operation.

  10. Use the Employees program to define the employees who work in your factory together with their monthly standard times.

    When posting labor to a job (using the Labor Posting program) you can specify the employee number against whom postings must be recorded.

    in addition you can measure the efficiency of your employees by printing an Employee Efficiency report.

  11. Use the Browse on Employee Rate Descriptions program to define the descriptions assigned to your employee rates.

    This step is optional and is used if you value actual hours you post to a job at the employee wage rate rather than at the work center rate as you can enter up to eight wage rates against each employee.

  12. Use the Employee Time Unit of Measure program to define the unit of measure conversion factors between employee rate times and work center rate times.

  13. Use the Factory Documentation Format program to define the page layouts for printing your factory documentation.

  14. Use the Structures and Routings program to define your actual bill of material structures.

    You use this program to define the elements required in a sequence of manufacturing operations, as well as the structural relationships between parent and component parts.

    [Note]

    Alternatively, you can:

    • use the Structure Import program to import your single level components or multi-level parent/component structures from a flat ASCII file.

    • use the Routings Import program to import the routings/operations

  15. If you enabled Activity based costing required (Bill of Materials Setup) then you need to run the Cost Implosion program as part of implementing activity based costs (see Activity Based Costing Introduction for additional information).

Processing

There is no prescribed sequence of steps for transaction processing within the Bill of Materials module.

As required, you would typically:

  • Use the Structures and Routings program to add and maintain bill of material structures.

  • Use the Structure Validation program to verify the integrity of your Bill of Material structures with regard to inadmissible parent-component-parent loops and to delete any components with expired structure off dates from the structure file.

  • Use the Relationship Validation program to verify the logical relationships between stock codes within a structure and to identify structural flaws arising from the way stock codes were defined and the way structures and routings were entered.

  • Use the Lead Time Calculation program to calculate the cumulative and manufacturing lead times of an item and to update the relevant fields against the stock item.

    You should run the Structure Validation program before using the Lead Time Calculation program. The reason is that the calculation aborts if any errors are encountered (e.g. structures with more than 15 levels and parent parts that are repeated as components in the same structure).

    In addition, ensure that working and non-working days in your company calendar are correctly defined (Company Calendar) because the lead time varies according to the number of non-working days defined.

  • Use the Cost Implosion program to re-cost stock items from raw material level through to the finished product.

  • Use the BOM-Inventory Cost Comparison program to identify differences between the standard bill of materials cost (i.e. material, labor, and overheads) and the current Inventory cost of stock items held on file.

  • Use the Transfer BOM Costs to Warehouse Costs program to transfer the bill of material costs (calculated by the Cost Implosion program) to the unit cost field of a stock item (Inventory Warehouse Maintenance for Stock Code).

    You typically use the BOM-Inventory Cost Comparison report before using the Transfer BOM Costs to Warehouse Costs program, to determine the effects of updating inventory costs with BOM costs.

  • Use the Parts Without Structure program to identify all stock items against which no parent-component structures are defined.

    These items normally include consumables or spares for machines, but can include finished parts or sub-assemblies residing within the inventory file having no component structure list.

  • Generate the reports you require.