Bill of Materials Management

Attention! This manual is developed for the MKG004 software. If you are using MKG5 or MKG3, the description of the functionality may differ from your environment. We aim to provide a product-specific description for this topic in the future.

When bill of materials management is used within a company, it is highly recommended to work with items, where the item is the end product of a bill of materials. A bill of materials contains the composition or structure of a product. Within MKG, a bill of materials is structured as follows:

An end product with:

• Materials
• Operations (including outsourcing)
• (Semi-finished products with:)
• Materials
• Operations (including outsourcing)
• Etc.

After opening Bill of Materials Management, the following screen will be displayed:

A new bill of materials can be created by selecting the New button on the menu bar in the above screen. A bill of materials can also be created from an item.

Bill of Materials Header

• Bill of Materials. Unique automatic number configured in the administration settings.
• Active. Checkbox to indicate whether the bill of materials is still active. When 'Active' is not checked, no automatic linkage can be made from production and calculation.
• Item. This field is automatically filled if a bill of materials is created from an item. It cannot be filled when creating a bill of materials manually.
• Description. Description of the bill of materials.
• Production Order Type. Production order types can be used to categorize orders into different types. Selections can then be made based on the type.
• Memo. Optionally, a memo can be added.

Manually Creating a Bill of Materials

There are two options for creating a bill of materials header. The first option is manual; after filling in the header, the screen will look as follows:

Creating a Bill of Materials from an Item

The second option is to create a bill of materials from Item Management. This is done per item. The screen will then look as follows:

Bill of Materials Line

When the header is created manually, the end product must first be defined. On a bill of materials created from an item, an end product is already present. To add an end product, select the New button on the right side of the screen. Semi-finished products are created in the same way. Only one end product can be present in a bill of materials; the other lines are semi-finished products.

General Tab

• Item. Selection field to select an item. It is not necessary to choose an existing item.
• Description. Description of the end product of the bill of materials.
• Drawing. Drawing number of the line.
• Revision. Revision number of the line on the associated drawing.
• Pos. Position number of the line on the associated drawing.
• Memo. Memo field of the line.
• Inherit Drawing Number. Two checkboxes are available. These indicate whether the entered drawing number on the end product should be carried over to the underlying lines and/or materials.
• Quantity. Entered quantity with corresponding unit.
• Total Quantity. Presented total quantity calculated based on the quote line and any upper lines of the bill of materials.
• Production Quantity. Entered production quantity with corresponding unit chosen from the 'Units' table. This is calculated based on the calculation quantity and scrap percentage and rounding, and can then be overridden by the user.
• One-time. Checkbox to select if it is a one-time item. This means, independent of the quantity to be offered or calculated.
• Round Quantity. Checkbox to select. In combination with the scrap percentage, a number is calculated which results in non-whole numbers in the bill of materials of the end product. If the checkbox is selected, total and production quantities are rounded up. For example: 5.88 x Shaft => 6 x Shaft.
• Scrap. Percentage to be filled in. When the user enters a value greater than 0%, this will be taken into account in the calculation of the quantities within the bill of materials.
• Batch Size. Minimum batch size to be specified. The batch size affects the production quantity.
• Production Group. Selection field to select the production group, within which the financial handling takes place during production. This group cannot be changed if an item is chosen in the line. Then the group is determined on the item.
• Inventory Group. Selection field to select the inventory group, within which the financial handling of the item takes place when it is taken from stock. This group cannot be changed if an item is chosen in the line. Then the group is determined on the item.
• Certificate. Certificate associated with the item.
• Production Phase. Phase number to be entered by the user. If the bill of materials is divided into phases, the user must enter the phase number.
• Order. The order number of the line. The step size is determined in the administration settings.
• Reference. This checkbox can be selected if a reference to another bill of materials applies to the semi-finished product.

Units Tab

Here, the ratio is displayed per unit group. The unit group with the asterisk and non-adjustable fields is the basic unit of the item, as determined on the 'General' tab (the unit field behind 'Quantity'). A bill of materials has now been created without semi-finished products, materials, and/or operations. The bill of materials can now be elaborated in two ways:

• Copying an existing bill of materials/calculation/production order and making adjustments therein.
• Re-entering semi-finished products, materials, and operations.

Menu Bar

Based on the menu bar of the Bill of Materials Management module, some explanations are provided here. In addition to the standard icons, there are icons specific to this module. These are discussed here:

Detail

With the 'Detail' screen below can be opened:

For more information on the functionality, see Document Management and CAD link Solid Edge.

Calculate Bill of Materials

To get an indication of the price, you can click on the Calculate Bill of Materials button in the menu bar, after which the bill of materials can be calculated. The following screen will be displayed:

In this screen, the quantity of a possible production of this bill of materials can be specified. For the display of prices, one can choose based on:

• Net Prices
• Cost Prices
• Advisory Prices

Under the Material button, material prices can be entered for which the software cannot determine a price. These are materials without an item or VRM. The material prices are divided into amounts for 'Man', 'Machine', 'Outsourcing', or 'Material'. However, these are displayed under the item 'Material Prices' (see the screen below):

Bill of Materials Revision

With this button a new revision of the selected bill of materials can be created directly. In the 'Bill of Materials Revision' window, it must be indicated which parts of the current bill of materials should be carried over to the revision:

To use this functionality, it must be configured within the administration settings how a revision of a bill of materials should be numbered.

Optimize Bill of Materials

By clicking this button the functionality for optimizing bills of materials is started:

Here, several options are available per bill of materials, semi-finished product, and materials for optimizing the bill of materials. The options are self-explanatory. There are some that only update descriptions and memos, but also more significant changes. Always pay close attention when optimizing bills of materials.

Copying an Existing Bill of Materials/Calculation/Production Order

A bill of materials can be completed in multiple ways. One option is copying an existing bill of materials, calculation, or production order into the bill of materials. This can be done at multiple levels:

• If no end product is present, as a new end product.
• Under an existing end product, as a new semi-finished product.
• In an existing end product.
• Under an existing semi-finished product, as a new semi-finished product.
• In an existing semi-finished product.

If the Copy button is chosen, the following screen will be opened:

A copy can be made from the following sources: an existing bill of materials, an existing calculation, or an existing production order. Select the applicable bill of materials/calculation/production order by first choosing the correct tab, after which the selection criteria can be entered. To display the selection, click Refresh. After choosing the desired bill of materials/calculation/production order, the following screen will be displayed:

In this screen, several choices must be made. In the selection menu under 'Copy', two options are available:

• Under. The bill of materials is copied under the created product; thus, a semi-finished product is added.
• In. The bill of materials is copied into the created product.

Below that, there are eight checkboxes. By checking parts, it is indicated that these should be copied. It is possible, for example, to copy only the operations and outsourcing. By default, everything is checked.

Entering End Product, Semi-finished Products, Materials, and Operations

Often, materials and operations will be entered directly without copying an existing order/bill of materials/calculation. The following sections should be followed for this.

Entering End Product or Semi-finished Product

End product and semi-finished products are the lines under which own materials and operations can be attached. The end product is characterized by a blue folder. When there is already an end product on the bill of materials, or when a new line is chosen, a semi-finished product will be created. A bill of materials can only contain one end product. The semi-finished product is characterized by a yellow folder. The input screen is the same as the end product and can therefore be filled in the same way. A semi-finished product can also have a reference to another bill of materials, then the yellow folder is characterized by an arrow.

Entering Materials

Entering materials is done in the same way as in the module Production Order Management.

Entering Operations

Entering materials is done in the same way as in the module Production Order Management.

Linking Operations and Materials

If you want to create a link between an operation and a material, you must click on the Link with Materials button from the operation.

Especially for those products where either the sequence of operations is split into many operations or information is provided to purchasing and warehousing, it is useful to know where and when goods need to be present. Semi-finished products, these are underlying lines, can also be indicated here, this must be done in the 'Semi-finished Products' tab.

References within Bills of Materials

It may be that a composite product has semi-finished products that are used in multiple bills of materials. To properly maintain these semi-finished products, references within a bill of materials can be used. A reference is a semi-finished product included in a bill of materials, but maintained in its own bill of materials. Creating a reference is done as follows:

Select the semi-finished product for which you want to create your own bill of materials and click the Create Bill of Materials button. The following screen will be opened:

If a bill of materials for the item exists, it can be linked using the Link BoM button. This can only be done if a bill of materials already exists. If not, the button will remain grey. To create a new bill of materials, click the New button. The following screen will be displayed:

The above is then the result. A bill of materials is linked to another bill of materials. Additionally, the yellow folder of the semi-finished product is provided with an arrow, indicating that it is a reference.

Using the Open button, the bill of materials reference can be opened in the current bill of materials. This bill of materials remains active as a reference. Changes now made in the referenced bill of materials remain active in the referenced bill of materials.

With the Include button, the referenced bill of materials is included in the current bill of materials, and the reference is removed.

With the Bill of Materials button, the referenced bill of materials itself is opened in Bill of Materials Management.

Bill of Materials Revision Management

It may be desirable that when changes are made to master data items and/or operations used in bills of materials, the bills of materials in which they occur are adjusted. This can be done by automatically adjusting existing bills of materials or by using revision management. This last choice must be enabled in the administration settings. If this is used, a question is asked with every change in master data of the items.

In this screen, a choice can be made whether not to update at all, to adjust the existing (active) bill of materials, or to create a new revision of the bill of materials. The current active bill of materials is preserved but set to inactive. It can also be chosen that, depending on the use of the item as an end product, semi-finished product, or material, a bill of materials revision is created.

When saving changes in the master data of operations, a similar question is asked:

Depending on the change made in the operation, a choice can be made as to which fields in the bill(s) of materials are updated. Here too, the choice is made whether not to update at all, to adjust the existing (active) bill of materials, or to create a new revision of the bill of materials.

When choosing to adjust or create a new revision, all bills of materials in which the item or operation occurs are adjusted.

Items and Bills of Materials: Index

Related

• Calculation Management
• Production Order Management