What are Importance of BOM (Bill of Material) in PLM ?

As we read about PLM concept in my article “What is PLM ?”, We conclude that ‘time to market’ and ‘cost reduction’ are very important things in PLM. Because of BOM management, we can achieve both things. My article about ‘What is BOM?’ emphasizes more about concept about BOM. Now we are understanding the importance of it.

Sales Bill of material(SBOM)
Pic: Representation of Bill of Material

BOM of assembly process helps the worker to find the right part at the right place for assembly. This reduces time to assemble a product. Because of well understanding of process, the chances of error minimizes. BOM is very important in the manufacturing process. If Manufacturing BOM (MBOM) is not accurate, then the process hindered. Because of this a lot of precious time and cost of manufacturing loss occurred. The same situation arises in the inventory department of Industry. If someone put wrong information about inventory, the further process of inventory stopped. This causes a loss in time, cost and revenue generation.

When we compare two BOMs, we get detail idea about design and manufacturing process. We get an idea about how BOM is differentiated with each other. In a car engine, If we compare two BOMs of two different car’s engine, then we get an idea about, where we can cut the cost of manufacturing and where we can improve the performance of the engine. The analysis becomes very simpler when we compare two things.

If we made BOM of maintenance service (service BOM), we can easily understand each components life and how to do maintenance of it.

By using software techniques we can use this ‘BOM representation’ technique in a most simpler way, the software helps to reduce the time required to retrieve data from BOM, compare BOM and to make more understandable BOM.

From above discussion, we conclude that BOM management is strong pillar on which whole PLM system is based. Following important points summarizes above discussion.

  • BOM is helpful in time management, it reduces time required to launch product in market
  • BOM helps in analyzing information about various parts of complex product in a simpler way and draw a positive conclusion from it.
  • Comparing BOM is best method to analyse product with standard product.
  • BOM is helpful in inventory management. We can achieve zero inventory with daily analysing and updating BOM information which ultimately helps in reduction in cost and revenue management.
  • BOM helps in understanding process of design, manufacturing and services(maintenance, customer service).
  • BOM maintain record of all components and its revisions(older changed parts) with all information of it(information such as creation date to its all specification). we can easily retrieve this information whenever we required.
  • BOM replaces the tedious method of updating information in manual.