4. History
In the beginning there was no BOM
Industrial revolution
Production lines
Focus on logistics:
reorder-point (ROP)
reorder-quantity (ROQ)
Methods like:
Economic Order Quantity
(EOQ)
5. History
Once upon a time there was no BOM
Industrial revolution
1964 MRP – 1990 ERP – introduction of BOM
6. History
Once upon a time there was no BOM
Industrial revolution
MRP – ERP – introduction of BOM
ERP just needed THE BOM. Engineering was a black box.
… and often this is still the case 2012
Engineering Manufacturing
7. History
MRP – ERP – introduction of BOM
Engineering was a black box ERP just needed THE BOM
PDM and 3D CAD introduced a BOM for Engineering
PDM ERP
THE BOM THE BOM
8. History
MRP – ERP – introduction of BOM
Engineering was a black box ERP just needed THE BOM
PDM and 3D CAD introduced a BOM for Engineering
and programmers started to connect them (1999)
PDM ERP
THE BOM THE BOM
9. History
MRP – ERP – introduction of BOM
Engineering was a black box -ERP just needed THE BOM
PDM and 3D CAD introduced a BOM for Engineering
PLM introduced a broader BOM concept, defining
the Engineering BOM and Manufacturing BOM (2001)
EBOM MBOM
?
10. The purpose of the EBOM
The EBOM allows multi-discipline
collaboration to work concurrently
on the release of a complex product.
The EBOM concept supports Test Release To ERP ?
Release
iterations in quality and
completeness
Review Design
11. Could the MBOM definition be in ERP ?
Can ERP work with the provided EBOM ?
Inside the ERP system manufacturing and process
engineers will prepare the BOM for Manufacturing
• Yes, sometimes
PDM ERP
in case of a
single site
• No, in case of
remote
manufacturing
12. Could the MBOM definition be in ERP ?
Single Site: can ERP work with the provided EBOM ?
Get’s complicated for a modular product in a
Build To Order process
Many changes on the engineering side
Product
M M M
M M M M M
13. Could the MBOM definition be in ERP ?
Single Site: can ERP work with the provided EBOM ?
Get’s complicated for a modular product in a
Build To Order process PLM
Many changes on the engineering side
Would require coordinated work on the
ERP
ERP side – working in two systems.
An ERP system is not designed to manage
iterations and comparing changes at • No, in case of
the design side modular product
14. Not every industry process needs a MBOM
Sometimes companies design their products with
manufacturing in mind – hybrid BOM
Usually not complex products or short time to deliver
Often single discipline (mechanical design)
• Yes, for simple,
mechanical products
15. Could the MBOM definition be in ERP ?
Small Companies Other Enterprises
Situation In ERP ? In PLM
Single Site Yes Multiple locations
Local Manufacturing Yes Global Manufacturing
Non-Modular Product Yes Modular Product
Simple Product Yes Complex Product
Note: This is a generalization. Every rule has an exception.
So there must be a rule without exceptions
16. Could the MBOM definition be in ERP ?
Small Companies Other Enterprises
Situation In ERP ? In PLM
Single Site Yes Multiple locations
Local Manufacturing Yes Global Manufacturing
Non-Modular Product Yes Modular Product
Simple Product Yes Complex Product
17. MBOM and PLM - Do we agree on PLM ?
Nobody owns data Intellectual
Property
Everyone shares data
The Critical Change
The MBOM is part of the Intellectual Property
Best to be managed in a PLM environment
18. The complementary roles of PLM and ERP
“PLM systems are reason that ERP
systems can execute, they bring
the product definition and
information to produce a product.”
“ERP systems are built to schedule
and execute the production of well
defined products in the most
efficient way.
ERP systems are needed for the
execution, often the core activity
for manufacturing systems.”
(Old) slide from tech-clarity
closing loop product innovation erp plm
19. MBOM and PLM
reduce complexity !!
PLM – all product knowledge ERP - execution
Tools
Automation
Manual Actions
20. MBOM and PLM
PLM – all product knowledge ERP - execution
Tools
Automation
Manual Actions
Of course reality is not that simple:
• Standard Parts – cost and status information
• Integrated ECR / ECO processes
• New Part approval process
21. MBOM and PLM – global manufacturing
PLM – all product knowledge Local ERP 1
ERP - execution
M
B
O
M
1
Tools
Automation
Manual Actions
Local ERP 2
M
B
O
In case of global manufacturing: M
local MBOM based on PLM MBOM 2
22. Where is the MBOM ?
The MBOM managed in PLM is a
best practice.
Managing change in the full context
of the product
No late discoveries for errors
Benefit from the shared information
Customer centric / Quality
23. Where is the MBOM ?
The handling of the MBOM is a PLM indicator
The company learned to change
The company understands PLM
However:
PLM is not only about the MBOM
Not every company needs a MBOM
Not every company needs PLM
24. What can we expect in the future (5 years)
No change: Keep the MBOM in ERP
No burning need (boiling frogs) 60 %
Nobody gets blamed for not changing
Small and medium enterprises
with strong IT focus on ERP
25. What can we expect in the future (5 years)
MBOM in PLM
Already there or planning ahead 30 %
They have understood the value of PLM
Large dynamic enterprises and young companies
with a focus on global operations
26. What can we expect in the future (5 years)
MBOM is a “dashboard”
Data is a combination of various systems 10 %
Using Search technology and
semantic rules to collect and present data
A disruptive technology that can change the PLM –
ERP game – no longer single source of the truth
The TRUTH =
27. Conclusions
“Where is the MBOM” should not be the question
It is the same question as “Should I stop smoking”
The answer is:
Do we wait till we feel the pain?