Modular BOM   

Do you know the number one reason that manufacturing systems fail?

The overhead to maintain the systems is too great!

How many BOM structures do you maintain?

Most manufacturers need one indented BOM for each feature or option in a product. Thus, even a simple product like a bicycle that comes with:

• A boy's or girls style

• Four different frame sizes

• Ten colors

• Five gearing arrangements

• Three types of tires

requires 2 x 4 x 10 x 5 x 3 or 1,200 separate BOM structures to maintain the product line!

How does ALERE Manufacturing help?

ALERE Manufacturing has a unique type of bill structure called a Modular BOM.

In a Modular BOM each child record represents an option instead of a component. One of the listed options must be chosen when BOM requirements are calculated such as during the sales order configuration process.

For example a single level bill for a boy's bike frame sizes might look like this:

• Boy's Frame
  • 18" Frame ... Qty 1
  • 20" Frame ... Qty 1
  • 22" Frame ... Qty 1
  • 24" Frame ... Qty 1

Modular BOM's may be nested. Thus, using the example above, each frame size could be modular with a list of colors unique to that frame size!

The Modular type of bill allows a single BOM structure to maintain unlimited permutations.

The 1,200 unique bills required to maintain the bicycle options can be reduced to ONE bill structure!

Ask yourself these questions:

• Is it easier to maintain 99% accuracy on 1,200 bills or one bill?
• Will your software system be more or less responsive with one bill instead of 1,200 bills?
• Does one bill structure require less overhead to maintain than 1,200?

How accurate must your BOM file be?

For the MRP process to function properly your BOM file must be at least 99% accurate! Remember,  each error in a BOM generates two mistakes. First, you order the wrong part and second, you fail to order the right part.

How do I add a new option?

Easy. Enter the part number of the new option into inventory. Add the option to the Modular BOM on which it would appear. You are done!

Is this a rules based system?

Yes. Since you can create Modular BOM's within Modular BOM's you can define the rules for choices. For example. If you choose a Boy's bike you then have a selection of certain sizes. Depending on the size you choose you then can select certain colors. And so on.

The Modular BOM type is one key design feature that makes up ALERE Manufacturing 's product configuration backbone.