ERP 101 series, 'Engineering Basics - The Importance of Part Numbers and Bills of Material' will help you understand the importance of part numbers and how to link those part numbers together into meaningful bills of material. You'll learn: 1.The importance of part number structure (intelligent vs. unintelligent numbers) 2. How to deal with different types of parts 3. The structure bills of material to support MRP

1. ERP 101
Engineering Basics
David Bush
Senior Manufacturing Consultant,
Rootstock

2. The ERP 101 Webinar Series
Date Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing & Distribution
Aug 16, 2016 Engineering Basics – The Importance of Part Master Records and Bills of Material
Aug 30, 2016 Engineering Basics - Maintaining Accuracy through Revisions and Change Order Control
TBA Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and
Procedures
TBA Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines
TBA Procurement – Link your Vendors and Purchased Parts via ERP
TBA MRP – Step though an overview of this vital ERP subset
TBA Sales – See how you can link your Customers and Products via ERP
TBA Manufacturing Accounting – An overview using standard cost
TBA Manufacturing Accounting – An overview using weighted cost

3. Meet Our Speakers
David Bush
Senior Manufacturing Consultant,
Rootstock
• 30+ years of manufacturing and MRP/ERP
systems experience
• Previously at General Microcircuits,
Consona Corporation, Relevant Business
Systems, Inc

4. A Recap
• In the last webinar, we discussed:
– The unique characteristics of manufacturing & distribution
organizations
– Key ERP concepts – Bill of Material Processor (BOMP), Material
Requirements Planning (MRP), MRPII and ERP
– The evolution of MRP/ERP since the 1960s
– The differences between MRP and ERP and how MRP fits into
modern ERP systems.

5. In This Episode
• We will cover the engineering basics:
– Part numbers, and why they are important
– Components and Sub-Assemblies
– BOM Structure
Just how important are these items?

6. Part Numbers – Foundation of Your ERP
• How important is a solid
foundation?
• In the ERP system, part numbers
make up the ingredients for a
strong and reliable system.

7. How Do You Define Part Numbers?
• Should I:
– Use the description as a part number?
– Use ‘smart’ part numbers?
– When do you need to create a new part
number?

8. Part Numbers – Important Considerations
• What do I need to consider about part numbers?
– Description
– Unit of measure
– Source
– Type
– Lot/Serial Control

9. Part Numbers – Cont’d
• Is this item a component, subassembly or finished good?
• Will it be inventoried?
• Will it be sold to customers (finished good or spare part)
• Is it active or inactive?
• Who is responsible for maintaining the record?
• Is there company-specific information I need to record?
• If your company has multiple divisions, where will this item be
inventoried and where will it be used?

10. OK, we defined part numbers. Now what?
Lets look at the Foundation again

11. Part Numbers – Foundation of Your ERP
• Now that we have our
components, how do we put them
together to form our foundation?
• How does this work in a
manufacturing environment?

12. • Remember our bicycle drawing?
• How do the components come
together to form the finished
item?
• How does the BOM help us
understand the structure of the
finished item?

13. Components and Sub-assemblies
• The finished item comprises:
– Components
• Manufactured
• Purchased
– Sub-assemblies
• Manufactured/assembled
• Purchased

14. Sub-Assemblies
This is an example of a sub-
assembly BOM showing the parts
and quantities.
What else needs to be considered
when developing the BOM?

15. Building a BOM
• Parent and component part numbers and quantities have been
entered.
• Will any of the component be lost as calculated scrap during
production?
• Will any of the components be lost during setup?
• Will tooling or fixtures be added to the BOM?
• When do we add another level to the BOM?

16. You Have a BOM. What Questions Remain?
• The BOM accurately reflects how your product is built. But:
– What happens when the parent or subassemblies are re-designed?
– How does manufacturing know which design to build… latest
configuration or a past design?
– How is MRP (Material Requirements Planning) affected by these
changes, and how does it react?
To be continued…….

17. In Summary
• Today, we covered
– Part Numbers (Components)
– Sub Assemblies
– Final Assemblies (Finished Goods)
• In the next session, we will look at:
– Revisions
– ECOs (Engineering Change Orders)
– Effects of change on MRP

18. Q&A
www.rootstock.com
888.524.0123
marketing@rootstock.com

19. The ERP 101 Webinar Series
Date Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing & Distribution
Aug 16, 2016 Engineering Basics – The Importance of Part Master Records and Bills of Material
Aug 30, 2016 Engineering Basics - Maintaining Accuracy through Revisions and Change Order Control
TBA Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and
Procedures
TBA Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines
TBA Procurement – Link your Vendors and Purchased Parts via ERP
TBA MRP – Step though an overview of this vital ERP subset
TBA Sales – See how you can link your Customers and Products via ERP
TBA Manufacturing Accounting – An overview using standard cost
TBA Manufacturing Accounting – An overview using weighted cost
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