ERP summary series (BOM Introduction)

Resource coding is the most basic part of the ERP system and the Application Basis of the entire system;

The resource structure is the core of the ERP system. The resource structure is an organizational form for enterprises to apply enterprise resources. It reflects the composition and change process of enterprise resources. For production enterprises, the structure of materials and BOM is in the central position of the system. It is the subject, axis, or link of enterprise sales, production, procurement, warehousing, logistics, and other activities.
Bom classification:
1) by industry
Service type: specifically, it cannot be called Bom. It should be called Bor (a list of Enterprise Resources). It exists in the form of a service package, that is, resources for materials, devices, and other things, it also includes human service resources.
Production: the BOM here mainly refers to the traditional material meaning, but there are other resources, such as the existence of human resources, equipment and other resource combinations.

Note: in a strict sense, a service-type resource combination cannot be called Bom. This is actually a more abstract model, which unifies the service-type and production-type resource combination structure at a higher level, this improves the versatility of the system.
2) by function
Product Project BOM:
Engineering BOM is a type of application in ERP systems. It is suitable for engineering production. Each item in BOM can be repeatedly produced and has the persistence (inventory) feature. In this case, when a item in Bom is produced, you only need to care about its next level of material. Therefore, it is a layer-by-layer production mode for easy engineering. At the same time, because each item has inventory, it is also easy to reuse, centralized production and agile manufacturing. Of course, inventory needs to be reasonable, which is also a very important objective of the ERP system (to reduce inventory costs ).
Product Process BOM:
The results of the entire process from raw materials to finished products are multi-layered. In terms of form, the BOM is very close to the Engineering BOM of the product. The difference is that the process BOM can better reflect the process flow than the Engineering BOM, some temporary middleware will also be reflected in the BOM structure. For example, P is composed of C1, C2 ,.. CN sub-component composition, for the project Bom, the next level of P is C1... CN, while the process BOM may be C1 and C2 first combined, and then combined with C3, it will reflect the process. Generally, in discrete manufacturing, the process Bom is not stored in the ERP system in a structured manner. You only need to provide the process drawings.
Product Structure BOM:
Generally, there are only two layers, similar to the process Bom, but it focuses on the spatial structure. Generally, this part of data is rarely structured in the ERP system and exists in the form of product drawings.
Order BOM (sales BOM ):
The BOM provided to the sales department for quotation, pricing, and ordering is flexible. It also contains some virtual materials and promotion and distribution items. This type of BOM is commonly used in CRM systems. It is generally not a strict code.
Cost BOM:
It is used for the accounting path during cost accounting. Generally, the Cost BOM adopts the Engineering BOM, and the cost BOM is less in ERP.
Service BOM:
This type of BOM is not very strict, but a resource list (BOR). For enterprises, services are also a product. The product concept here is no longer a product concept in traditional ERP, traditional product concepts have many things. A wider range of product concepts include services provided by enterprises. This is generally used in CRM systems. In fact, it is similar to the order Bom.
Virtual BOM:
The materials or services in this BOM are virtualized, and most of the time they are used for orders or special purposes. Note that the Service Bom is not a virtual Bom, and the service actually exists, not a virtual Bom.
3) score by importance
Main BOM: fixed list of products and services;
Configuration and selection BOM: Optional product list section;
Replace BOM: defines the replacement relationship between product neutron parts. This is very common in ERP systems (especially for small and medium-sized enterprises ).
Replacement and configuration can greatly reduce the number of BOM in the enterprise. Of course, the side effect is to increase the difficulty of management and system design.
4) divided by organization:
Tree-type BOM: the BOM form of a product. The root node is the finished product, and the leaf node is the raw material. The branch can represent the process and is a synthesis mode;
Inverted tree BOM: it is mainly used to express the fact that a product can produce multiple finished products. It is very common in the clothing industry, tobacco, petroleum, and raw material cropping of discrete manufacturing.
Composite BOM: the combination of tree and inverted tree is generally separated. However, this Bom is very common and requires certain conventions and Algorithms for processing;
Mesh BOM: from the perspective of the entire system, the BOM of the item will form a mesh due to cross-reference.
Cross-resource BOM: Generally, there are many service industries. In this case, resources are extended resources in a broad sense.
5) according to the points that can be modified
Standard BOM: a standard product materials list released by the product R & D department.
Customized BOM: a type of BOM that can be customized by the sales or production department based on the replacement relationship within the scope permitted by the product standard, mainly to reduce the number of BOM and maintenance of the system.
Actual BOM: this is a list of materials actually consumed during product production. The loss of the standard Bom is generally adjusted according to the actual Bom. In ERP, it is calculated by the data in documents such as the picking ticket, return ticket, replenishment ticket, and exchange ticket.

PS: From the Perspective of ERP, BOM can be evolved into Bor (resource list of products or services), which is more abstract and common.