outsource

You are currently browsing articles tagged outsource.

Two supply chain folks meet in the airport.  One says, “Hi Jack, did you bring the BOM?”

OK, so humor isn’t our forte.  But BOMs are.  A good, clean Bill of Materials (BOM, pronounced just like bomb) is necessary for manufacturing any product.  Seems like a no brainer, but it’s amazing the number of small businesses that build products without a good BOM (or drawings, but that’s a whole ‘nother matter).  Often the excuse is that it’s outsourced; often it’s time to market; sometimes it’s just about those round toits (I’ll get around to it…).

A good, clean  BOM is not tough to build.  Oftentimes the basics can be automatically generated as the outputs of a CAD program.  While this is a start, it’s not enough.  A BOM, at a minimum should include:

  • General
    • A tiered structure–so that subassemblies can be identified and rolled up
    • Specify the volumes for which it is costed
    • A date and revision designator
  • Fields
    • Line item numbers–seems trivial but makes it much easier to ID issues and socialize changes
    • Manufacturer (although sometimes this is part of a separate document, the AVL (Approved Vendor List)
    • A unique part number and also the Manufacturer’s Part Number
    • Quantity
    • Unit cost
    • Extended cost–unit cost multiplied by quantity
    • Lead time
    • MOQ (minimum order quantity)

Just be careful discussing the subject in airports.

Chuck

Tags: , , , ,