How are BOMs costed?

How are BOMs costed?

The Cost Rollup calculates a total estimated cost for the BOM parent. Each purchased component has an estimated cost from inventory. Each work center is given hourly rates for setup, labor, and manufacturing overhead which get applied to each routing sequence. Estimated costs for subcontract services are maintained in routing sequences. The Cost Rollup calculates all these costs up through all the subassemblies in the product structure to arrive at the total estimated cost for the BOM parent.


If the BOM includes secondary outputs, a portion of the parent item’s cost is allocated to each output on a percentage basis.

What is the BOM estimated cost used for?

BOM estimated costs are helpful for product pricing decisions. You also benefit by continuous monitoring of work center hourly rates, which keeps you in touch with your item labor and overhead costs.

Is the BOM estimated cost compared to actual job cost?

Not directly. When the job gets created from the parent item’s BOM, the program calculates an estimated job cost. If you modify the job’s BOM specifications, the estimated job cost gets changed accordingly. It is the estimated job cost that gets compared to actual job cost. 


Vivienne @ www.mrp.com.my

Job with BOM

So jobs also have BOMs?

Yes, each job has its own BOM. The parent item’s BOM is copied to the job and its component usage quantities are multiplied by the job quantity. Once the job’s BOM has been created, it can be modified for any special requirements.

Vivienne @ www.mrp.com.my

What are the BOM "components?"

What are the BOM "components?"

The BOM "components" are the subassemblies, purchased parts, and raw materials that comprise the physical product.

How are BOMs used?

BOMs are used by the MRP screen to generate Custom to make jobs for manufactured items in response to customer orders and your desired stocking levels. MRP uses each item’s BOM specifications to create the job’s routing and BOM. 


Vivienne @ www,mrp.com.my

What is the BOM Routing ?

What is the BOM "routing?"

The BOM "routing" can be thought of as a "bill of labor." In the routing you define the setup, labor, and subcontract service sequences that comprise the manufacturing process.


Vivienne @ www.mrp.com.my

What are BOM revisions ?

What are BOM "revisions?"

Each BOM is assigned to a current "revision", which represents the latest engineering specifications for the BOM parent. Past revisions are stored to provide a history of engineering changes.

Vivienne @ www.mrp.com.my

What is an BOM output

What is an BOM "output?"

An BOM "output" refers to a finished item produced from a BOM. Most BOMs are defined with one output, which is the BOM "parent" item, but you can also define "secondary" outputs for by-products and co-products. Secondary outputs are commonly used by batch process manufacturers, remanufacturers, and disassemblers.


Vivienne @ www.mrp.com.my

What Are Bill of material (BOM) ?

BOM 

What are bills of material?

"Bills of material" (BOMs) are used to define the manufacturing specifications for your products or those you make on behalf of others. Manufacturing specifications include "outputs", "revisions", a "routing", and "components."

Vivienne @ www.mrp.com.my

ERP Software package.

Very disapointed with your ERP software package ? take a fresh look at your manufacturing process workflow. Identify your processes in every department, Implement all the system’s core processes, such as routings and work centers, so that the software is used to its full potential and can deliver the results you want it to be. or get the solution consultant to discuss your problem and propose a solution to address your manufacturing issues. 

Vivienne @ www.mrp.com.my

Basic module that you must have in your manufacturing package? Routing Setup

What are the basic module that you must have in your manufacturing package ?  


1. Routings Setup which allow you to setup your processes used to manufacture your parent products and to specify the work centers where the item are performed. Routings provide workers with manufacturing specifications and enable you to schedule jobs, track WIP and calculate the labour cost, subcontract service  and factory overhead. 


Any software package that dont have routings setup is not a serious manufacturing solution. Do you have this in your software package already ?  


vivienne @ www.mrp.com.my

Do you have a software to address your manufacturing problem ?

Do you have a software to address your manufacturing problem ? 

ERP software packages address all kinds of functions, including accounting, inventory, purchasing, sales, CRM, service, project management, financial applications, human resources and etc

These functions are important to every company, but if you are running a manufacturing company and you do not have the right software to address the basic requirement of your manufacturing, you will never reach your efficiency potential.


What are the basic features that are essential to any manufacturing industries ?  Here is my list.

1. Routings 
2. Bills of Material 
3. Costing
4. MRP
5. Job Release
6. Job Traveler 
7. Work Center Scheduling
8. Job Tracking 

Firing Customers

Firing Customers

We all work hard to get and keep customers. Some customers are tough and require special attention. But when a customer just refuses to be happy - it can be a good idea to let them go in favor of spending your resources on someone else, or several others you can make happy. When you're doing all you can and it's still no fun - it could be time. Vivienne @ www.mrp.com.my

Manufacturing BOM

Manufacturing BOM 
in our BOM menu you will find all screen related to the entry and maintenance of your bills of material and process routings.

BOM Setup
BOM Master 
Machines
Process Categories
Task Templates
Revision Names


Main Menu
Work Centers
Subcontractors
Bills of Material
Component Replace
Process Replace
Shop Rates
Estimated Purchase Costs
Cost Rollup
BOM Explorer
Where Used


Reports
Multi-Level BOM
Costed BOM  

Vivienne from www.mrp.com.my

What I feel about me...

What I feel about me...

What I feel about me is what I feel about others and the world.  It's why some of us see it one way, and others see the same thing another way. We must first turn inward to make outward changes.  We can never fix our outer world if our inner world is broken.  It's ok to ask for help.  In fact we must, because the patterns of thought we have are the ones that created our problem, and we can't fix it with the same thoughts. When the man is all together, his world is all together. Same concept it apply to any kind of business, dont you agree with me ? Vivienna