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PRODUCT

STRUCTURE AND
BILLS OF MATERIAL

MIS EG
Product Structure

The product structure provides a hierarchical

classification of the items which forms a

product.

 SAP AG 2005
Product Structure

The product structure shows the material,

component parts, subassemblies and other items

in a hierarchical structure that represents the

grouping of items on an assembly drawing or the

grouping of items that comes together at a stage

in the manufacturing process.

 SAP AG 2005
Product Structure

Engineering parts lists or drawing parts lists are


used to create a version of the product structure
to support manufacturing.

This standalone product structure is called the bill


of materials.

 SAP AG 2005
Bill of Materials

A bill of material is a formally structured list for

an object (semi-finished or finished product) which

lists all the component parts of the object with the

name, reference number, quantity, and unit of

measure of each component.

The components are known as BOM items.

 SAP AG 2005
Bill of Materials

A bill of material can only refer to a quantity

greater than or equal to one of an object.

It is a product data structure, which captures the

end products, its assemblies, their quantities and

relationships.

 SAP AG 2005
Types of Bill of Materials

There are usually two kinds of bills of materials


needed for a product:

Engineering and Manufacturing

Bills of Materials

 SAP AG 2005
Bill of Material

The engineering BOM

normally lists items

according to their

relationships with parent

product as represented on

assembly drawings.

 SAP AG 2005
Bill of Material

But this may not be sufficient to show the grouping of parts at


each stage of the production process nor include all of the data
needed to support manufacturing or procurement.

These requirements may force the arrangement of the product


structure to be different in order to assure manufacturability.

Thus, engineering and manufacturing will usually have different


valid views for the same product.

Manufacturing Requirements Planning (MRP) systems typically


rely on a Bill of Materials (BOM) and the product structure for
their information

 SAP AG 2005
Bill of Material

A Bill of Materials is a product data structure


which captures the end-products, its
assemblies, their quantities and relationships.

In many companies the BOM is structured for


the convenience of individual departments.
This, however, engenders problems in other
departments.

 SAP AG 2005
Product structure for product 1

In Figure, a product named Product 1 is shown


graphically with the summarized products structure
and the number of all items that are needed to make
the parent products are enclosed in brackets.

 SAP AG 2005
Summarized Bill of materials (BOM)

Figure, contains a bill of materials for


Product 1 in which the total usage of
each item is collected into a single list
for the product.
This kind of list is convenient for the
master production schedule but results
in the duplication assemblies.
This implies that each product bill that
uses assembly must be changed
whenever there is a change in
assembly.
Furthermore, since lead times of
intermediate assemblies cannot be
determined, parts are ordered too early
the first time they are encountered in
the product structure.

 SAP AG 2005
Indented bill of materials

Other arrangements used in


arranging the bill of materials
is by indenting the product
data as shown in Figure.

One disadvantage of this


method is that all components
of an assembly are repeated
each time the assembly is
used, resulting in massive
duplication of data.

 SAP AG 2005
Single-level bill of materials

One solution to the duplication problem is by holding each assembly


only once in ‘single level’ bill of materials as shown in Figure.

In this approach it identifies only the components used by one level


and a required subassembly.

This means that engineering changes can be made in only one place.

 SAP AG 2005
'Where used' lists

'Where used' lists give an easy overview of the


products where a given material is contained. This
happens by displaying of all BOM’s, which contain this
component.

 SAP AG 2005
PRODUCT STRUCTURE AND BILLS OF MATERIAL

END
 SAP AG 2005

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