Bill of Materials Concept & execution in SAP(ECC & S/4 HANA)

In this section you will understand

1. What is Bill of Material through a few illustrations

2. You will be briefed on how Bill of Material is documented and viewed in multiple forms

3. You will than run through types of Bill of material according to the context of use by various departments such as Engineering, Production, Sales, Service, Product Costing and Planning teams

4. A few examples of how BOM is represented according to various scenarios

5. You will know how Tracing the requirements of Parent (from a Component point of view), is performed through Where-used and Pegging reports

6. You will revisit the uses of BOM for various departments such as Sales, Planning, Design, Manufacturing and Costing teams

7. You will than summarize the understanding on BOM concepts

In this lecture you will go through a couple of examples and attempt to define the Bill of Material. After getting a fair understanding you will be presented with APICS definition of Bill of Material.

In this lesson, you will see multiple forms of Bill of Materials. Main forms discussed are Parts List, Indented Bill of Materials and Summarized Bill of Material.

Key terms involved in the BOM definition in Muti-level and Single level forms of BOM are discussed here.

You will run through types of Bill of material according to the context of use by various departments such as Engineering, Production, Sales, Service, Product Costing and Planning teams.

You will be briefed on

1. BOM for Design department (Engineering BOM)

2. BOM for Manufacturing department (Production BOM)

3. BOM for Sales (Sales BOM)

4. BOM for After-Sales Service and Internal Maintenance team (Service BOM)

5. BOM for Assemblies with multiple optional components (Modular BOM)

As part of this Course you will understand a few examples of how BOM is represented according to various scenarios.

You will get to see an example each of Engineering BOM, Production, Sales BOM, Service BOM and Modular BOM in Product Tree View.

As part of this Course you will understand Tracing the requirements of Parent (from a Component point of view), is performed through Where-used and Pegging reports.

By now, you might have understood how the bill of a parent or sub-assembly can be viewed in multiple forms. You may however want to know the other way around. From a component perspective you may want to what are all the immediate and End Parent assemblies in which a specific component exist. This is required when you notice an issue with the Component such as delay in Fulfilment, design changes in short notice.

1. You will understand Where-used BOM report

2. You will understand Pegging report and in what context it is used and is different from Where-Used report

As part of this Course you will understand how and for what purposes Bill of Material is referred by various departments such as Sales, Planning, Design, Manufacturing, Maintenance, Field-Service and Costing teams

You will be briefed on

1. Bill of Material for Engineering team

2. Bill of Material for Manufacturing and Maintenance Team

3. Bill of Material for Sales Team

4. Bill of Material for Field Service Team

5. Bill of Material for Costing team

6. Bill of Material for Planning team

As part of this Course you will have a recap on the understanding on BOM concepts.

You will recollect

1. Definition of Bill of Material

2. Bill of Material forms

3. Multiples Types of Bill of Material according to the Context of department using the Bill

4. Bill of Material Representation

5. Where-used and Pegging reports to trace the Parent requirements and impact against a change to Component

6. Uses of BOM to multiple Departments

To enable understanding on how Bill of Material is defined  and leveraged according to the Principles of Bill of Material, a set of data is prepared to demonstrate.

The data included:

• A Desktop Computer (which can have multiple combination of Components)

• Subassemblies CPU, Mother Board, Monitor, Power Adopter, System cooling and components of all above manufactured items

• Purchased components of Desktop Computer and it's sub-assemblies

All Finished, Semi-Finished and Raw Material creation in SAP will be demonstrated. Key fields in the Material screens are explained. However this session is not expected for elaborate explanation of Material Master creation as the focus is more on BOM.

In this part of Demo you will get to know how Bill of Material is created for Semi-finished and Finished material. In the course of the demo, all important elements of Bill of material at Component and Header level are discussed at reasonable detail.

You will see how the BOM can be copied to another finished material in same or other Plant.

You will know how BOM can be copied at just Header level, Header and all components or Header and a few components.

You will get a feel of how Header details are maintained and managed for the required behavior (such as controlling access to Bill, holding the preferred transactions and controlling deletions etc)

You will get a feel of how component details are maintained and managed for the required behavior (such as associating documents, text information, fixed quantity components, phantom, installation instructions (subitems) etc)

You will get to see how the Component materials can be sorted through multiple options such as

1. Single leverl criteria (Item Number, Material, Sort String etc)

2. Dynamic Criteria (multiple parameters)

You will see how the installation point details are defined for component materials.

A brief on multiple types of Items that can be included in Bill of Material for multiple purposes (such as ability to provide additional information in the form of Text, Document, Fixed Quantity components, Non-Stocked items but required in Bill etc)

You will be shown on how mass changes (replacements, deletions, addition of new material, changes of quantities, etc) of component in multiple bills are performed.

A brief SAP Flow on how multiple types of changes can be executed in multiple bills in one place.

The possibilities of multiple parents having similar BOMs which may have to be compared, is explained. The need for BOM Comparison and how it is compared in SAP is briefed.

The kind of possible comparison results (Matched, Similar, and Not assigned) are briefly mentioned.

The type of comparisons are also introduced (Differentiated and Summarized) which can be run at Single and Multi-level are discussed.

Finally the DEMO data of two alternative bills created for same Finished material is explained.

Next sessions will show how comparison of these two bills at various dimensions work.

Launching of BOM Comparison Report is explained.

• The parameters to provide before running the BOM Comparison results report.

• Results screen and the elements of report

• Explanation of elements using one type of Comparison (Single level - Summarized Comparison)

With the example of a Single Level Summarized Comparison Result,  a few options to manipulate the way report is displayed are briefed.

• Adding and removing columns for display in report

• viewing additional details such as Component item details, Where-used list etc

• Toggle to hide and show Similar, Identical and Not assigned type of rows in the result

• Other options such as Sort, filter the rows , print/save the report in multiple formats etc

There are other settings and options which will be explained in other demos according to context

In this lesson, Multi-level Summarized comparison results are explained through comparing alternative BOMs of Laptop001.

Additional elements other than those shown in single level are explained.

The scenario of same component existing in multiple assemblies in the multi-level structure is covered.

Single and Multi-level Differentiated Comparison of two Alternative BOMs of Laptop001 is demonstrated. Columns and specific information of Differentiated comparison are highlighted.

Other options of viewing Whereused list, printing,saving and sharing through email of the result are briefed.

Note: Sample Comparison reports are uploaded for your reference. The Multi-level BOM of Laptop which was used for comparison was also provided for good clarity on how comparisons are made.

In this Demo Lecture, you will run through multiple reports available in SAP for Material Bill of Material (Production BOM).

The reports include

1. Level by Level Bill of Material

2. Multi-level Bill of Material

3. Summarized Bill of Material

4. BOM Browser

So far we discussed the "basics of Production Bill of Material". The knowledge gained from concepts and hands on sessions, is good enough for the students to explore further.

On top of the basics of BOM, I wanted to cover a few additional topics in relation to Bill of Material.

There were a few topics in mind, such as:

1. Planning based on Bills & Routings.

2. Standard Costing of Manufactured Items.

3. BOM for Assemble to order scenario.

As a first,  I want to cover the aspects of Product Engineering using Engineering Workbench.

Engineering Workbench helps you define, modify and retire the Products at various phases of life cycle. Bills and Task lists are defined, Copied and managed in "integrated view in Engineering workbench".

You will get a brief on Engineering workbench followed by a few demos in SAP applications.

In this lesson, additional setup required to transact a manufactured material in Production Orders is explained.

In this demo,you will run through creating a production order for configurable material, make the selection of characteristics, verify the right selection of BOM Components and Task-list operations according to selection of characteristic values. You may also verify the quantity calculations and component assignments reflected in the Production order according to your BOM and Task-List definitions as well as Object dependency logics.