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Failure to Consider All Costs of the Operation
Published in Gerald J. Watson, Jesse J. Derouin, Critical Thinking, 2020
Gerald J. Watson, Jesse J. Derouin
Quality inspection of initial shipments revealed that usable products ranged from 60 to 85 percent. Inspection required 1.27 man hours per frame. I disagreed with the PA on the pricing terms and thought that the cost should be the FOB plant to enable that the purchase costs from this vendor could be easily compared with the quote from other vendors should any be located. Because the waste factor was high and varied, I used a special technique to set up the bill for the purchased frame. A bill of materials (BOM) comprises the components and quantities to manufacture or repair a product or service. The BOM consisted of the purchased frame, a waste percentage which was the mean of wastes from the most recent five shipments to include the cost of scrap, the inspection labor cost based on the waste percentage multiplied by the mean time for inspection, and the freight cost, which was the mean of the most recent cost of the last five shipments. As the vendor improved his quality, the inspection rate, freight cost, and frame cost would decrease. Using this special technique, the quality factor and freight changes were easy to track.
Production Module
Published in Odd Jøran Sagegg, Erlend Alfnes, ERP Systems for Manufacturing Supply Chains, 2020
Odd Jøran Sagegg, Erlend Alfnes
The BOM is a hierarchical model of the all the components, subassemblies, and raw materials a company need to produce an end product. In an ERP system all parts of the BOM are registered as an item in the item master in the inventory management module. This includes the end product, the components, the subassemblies, and the raw materials. When a user creates a BOM in the ERP system, he or she starts with the item that should be the end product and then builds the BOM structure by selecting the correct items from the item master, their quantity, and other information and parameters needed to create the product.
Building from Proof of Concept Design
Published in Bahram Nassersharif, Engineering Capstone Design, 2022
A detailed BOM allows the product manufacturers to prepare for the manufacturing steps necessary to create the product and mass produce it. Special part and assembly requirements can be incorporated into the manufacturing process if the BOM is complete and detailed. The product and manufacturing management team can find the best parts pricing, quality, and quantity to shorten supply-chain lead times and mitigate any problems or delays during product manufacturing. The management can also engage in the competitive procurement of items needed for product manufacture based on a detailed and concise BOM.
Using ant colony optimisation for improving the execution of material requirements planning for smart manufacturing
Published in Enterprise Information Systems, 2022
Gang Ke, Ruey-Shun Chen, Yeh-Cheng Chen, Shi Wang, Xin Zhang
Generally, BOM data contain various attributes such as part number, quantity and specification, etc. Therefore, the data of a single component are quite complex, especially in one hierarchy which implies more components. It will cause considerable problem when maintaining such a large information data. On the basis of events, an open and master–slave architecture can be extended through the exchange of data between objects, supporting parallel processing, decentralised processing, individual processing, and then integrated processing. With the advantages of easy to maintain and high extensibility, it could develop large and complex system rapidly and flexibly. This advantage is quite beneficial to BOM. As the BOM becomes increasingly large, the concept of simplicity is developed from the top-down by the feature of object orientation and easy expansion.
A novel performance evaluation model for MRO management indicators of high-end equipment
Published in International Journal of Production Research, 2019
Ling Li, Min Liu, Weiming Shen, Guoqing Cheng
Figure 1 shows the MRO management framework of high-end equipment. The framework consists of three parts: online production management, offline maintenance management, and maintenance BOM management. In the first part, the operating state of equipment is online monitored and recorded. Taking continuous caster (CC) as an example, some important status characteristics, such as continuous casting heats and amplitude of mould, are online monitored and recorded, based on which the degradation or failure is forecasted. In the second part, preventive maintenance (PM), preventive replacement (PR), or corrective replacement (CR) is implemented, according to the forecasted degradation or failure. For example, if the amplitude of mould reaches the failure threshold, CR is implemented. Supplying spare parts for maintenance activities based on product raw data, design structure and install location (e.g. various types of bearings are installed in different modules of CC) is the core task of the third part. Efficient maintenance BOM management helps to improve the availability of spare parts as well as the reliability of equipment, which will eventually improve the production efficiency.
Improving data quality during ERP implementation based on information product map
Published in Enterprise Information Systems, 2019
One of the fatal DQ issues in HH’s ERP system was inaccurate BOM data. BOM is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture an end product. It provides a fundamental reference for manufacturers to produce products. Unfortunately, BOM data in HH’s ERP system were not accurate enough to guide the manufacturing process. Take Table 1 as an example (words in bold represent the inaccurate data and words in brackets are the right data), a unit with ID 0202 should be composed of 9 oilless bearings and 10 quick couplers, but the designer mistakenly chose 9 flange bearings which were the wrong material for unit 0202 and 18 quick couplers which were the wrong component quantity for unit 0202.