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Enterprise Resource Planning

notes (MRP) is the core of the engine. It takes a period-by-period set of MPS requirements and (in
the way our food recipes produce shopping lists) generates a related set of component and raw
materials requirements. MRP is the detailed plan for the components required to enable the MPS
to be fulfilled.
As well as the MPS, MRP has two other inputs. A bill of material (BOM) shows, for each part
number, the associated component part numbers. Thus for a dining room table, the BOM would
show that a top assembly and four legs were required. The BOM for the top assembly would
show that two end panels, a sub frame, and two leaf inserts were required. The BOM for the
legs would show that solid timber stock and associated hardware kits (screws and castors) were
required. Inventory status data (the third input into MRP) would indicate how many legs or leaf
inserts, etc., were on hand, how many of those were already committed for production, and how
many hardware kits had been ordered. This would then allow the requirements for further table
production to be worked out.

MRP data thus make it possible to generate a time-phased requirement record for any part
number. This data can also drive the detailed capacity planning modules. This is a massive
computational task, only made possible by the use of modern computers.

4.5 Bill of material (Bom)

A bill of materials (sometimes bill of material or BOM) is a list of the raw materials, sub-assemblies,
intermediate assemblies, sub-components, components, parts and the quantities of each needed
to manufacture an end product.
A BOM can define products as they are designed (engineering bill of materials), as they are
ordered (sales bill of materials), as they are built (manufacturing bill of materials), or as they
are maintained (service bill of materials). The different types of BOMs depend on the business
need and use for which they are intended. In process industries, the BOM is also known as the
formula, recipe, or ingredients list. In electronics, the BOM represents the list of components used
on the printed wiring board or printed circuit board. Once the design of the circuit is completed,
the BOM list is passed on to the PCB layout engineer as well as component engineer who will
procure the components required for the design.

features of Bill of materials

1. Insight into current and future availability with Available to Promise and Component
Availability
2. Visual drill-down into existing bills of material
3. Use stock or non-stock components
4. Attach media objects for videos or pictures of assemblies
5. Global replacement of components

6. User-defined cost groupings
7. Optional routing definition
8. Tracking of engineering change history
9. Various user-defined fields for each assembly

10. Copy from functionality to ease setup of new bills
11. Engineer name, revision numbers, drawing numbers, effective dates
12. Engineering change order (ECO) tracking

76 LoveLy professionaL university