Factors influencing E2E BOM management

Factors influencing E2E BOM management

A PLM Open Hour with Dr. Christian Bacs, Senior Consultant at Intelliact

Uniform naming and optimal linking as success factors

In addition to clarifying and taking into account the various influencing factors, it is also crucial for a functioning end-to-end (E2E) BOM management to have a uniform definition of the various strategies and terminology throughout the company.

In E2E BOM management, all parts or material lists required for the manufacture of a product are managed in a central system. E2E BOM Management helps companies to increase efficiency and quality across the entire product lifecycle, reduce errors, and improve collaboration across the different process phases.

BOM Digital Thread and BOM Syntax

End to End BOM Management manages, synchronises and visualises the horizontal architecture and vertical chaining of BOMs across all process phases or roles and tools used. The BOM Digital Thread, as a "digital thread", leads horizontally from one BOM view to the next via the release and change system. The vertical view is the so-called BOM syntax. It defines how and according to which criteria a BOM is structured.

What influences E2E BOM Management?

E2E BOM management is critically dependent on product types and associated strategies. There are four basic product types, namely Make-to-Stock (MTS), Assemble-to-Order (ATO), Make-to-Order (MTO) and Engineer-to-Order (ETO).

These common types (MTS, ATO, MTO, ETO) are considered stereotypes and do not cover the whole spectrum. Rather, they must be interpreted differently by different roles and therefore viewed from a variety of perspectives, such as the order fulfilment strategy, the development strategy or the production and stocking strategy. Each role pursues its own strategy, which results in a variety of perspectives on the product and allows different concepts to be combined with each other.

Order fulfilment strategy

  • PTO (Pick to Order): Customer can search and find a finished product by characteristics, number, name, etc.
  • CTO (Configure to Order): Customer can configure product by predefined characteristics
  • CTO+: customer can additionally specify his own configuration features and requirements
  • ETO: product is defined from scratch according to specific requirements

Development strategy

  • Integral products
  • Modular products
  • Customer-specific solutions such as customized parts, products, modules (plus/minus parts lists, placeholders, etc.); templates (from existing products)

Production and stocking strategy

  • MTS: Product is completely manufactured; the product is completely assembled; product is in stock (Push)
  • ATO: Modules are manufactured, pre-assembled and put into stock (push - forecast); product is not fully assembled until order is received (pull - active demand)
  • MTO: Product is only manufactured and assembled after receipt of order (pull)

Harmonising and optimally linking strategies

For efficient E2E BOM management, the three strategies must be harmonized and linked throughout the entire process - vertically as well as horizontally. The respective manufacturing approaches can be combined in different ways depending on the initial situation and requirements. Depending on the combination, the influence on E2E BOM management, on the use of necessary BOM views (design BOM, engineering BOM, master manufacturing BOM, manufacturing BOM), and also on the use of corresponding tools such as xCAD, PDM system, ERP system and so on changes.

Likewise, depending on the combined strategies, the so-called "customer order decoupling point", i.e. the point at which the customer has an influence on the value chain, shifts. In the case of a "make to stock" product, this point is at the very end after production, while in the case of an "engineer to order" product, it is at the very beginning since here the product has to be redesigned based on customer requirements.

PLM Open Hour: Factors influencing E2E BOM management

PLM Open Hour: Factors influencing E2E BOM management
The term "End2End BOM Management" contains many implicit BOM concepts and views, which are assigned differently depending on the product type via the process. In this Open Hour, we classify the following strategies and the connection with PLM for you. Direct link to Slideshare and download (in German)

Or click through the presentation here (in German):

Do you have any questions?