The MBOM as PLM indicator

WHERE IS THE MBOM ?

Jos Voskuil www.virtualdutchman.com

MAINTENANCE DIVISION

Agenda

The history of BOM

BOM and ERP

MBOM and PLM

Future BOM practices

History In the beginning there was no BOM

History In the beginning there was no BOM

Industrial revolution

Production lines Focus on logistics: reorder-point (ROP) reorder-quantity (ROQ) Methods like: Economic Order Quantity (EOQ)

History

Once upon a time there was no BOM

Industrial revolution

1964 MRP – 1990 ERP – introduction of BOM

History

Once upon a time there was no BOM

Industrial revolution

MRP – ERP – introduction of BOM

ERP just needed THE BOM. Engineering was a black box.

Engineering Manufacturing

… and often this is still the case 2012

History MRP – ERP – introduction of BOM

Engineering was a black box ERP just needed THE BOM

PDM and 3D CAD introduced a BOM for Engineering

PDM ERP

THE BOM THE BOM

History MRP – ERP – introduction of BOM

Engineering was a black box ERP just needed THE BOM

PDM and 3D CAD introduced a BOM for Engineering and programmers started to connect them (1999)

PDM ERP

THE BOM THE BOM

History MRP – ERP – introduction of BOM

Engineering was a black box -ERP just needed THE BOM

PDM and 3D CAD introduced a BOM for Engineering

PLM introduced a broader BOM concept, defining the Engineering BOM and Manufacturing BOM (2001)

EBOM MBOM

?

The purpose of the EBOM

The EBOM allows multi-discipline collaboration to work concurrently on the release of a complex product.

The EBOM concept supports iterations in quality and completeness

Release

Design Review

Test To ERP ? Release

Could the MBOM definition be in ERP ?

Can ERP work with the provided EBOM ?

Inside the ERP system manufacturing and process engineers will prepare the BOM for Manufacturing

PDM ERP • Yes, sometimes

in case of a single site

• No, in case of remote manufacturing

Could the MBOM definition be in ERP ?

Single Site: can ERP work with the provided EBOM ?

Get’s complicated for a modular product in a Build To Order process

Many changes on the engineering side

Product

M M

M M M M M

M

Could the MBOM definition be in ERP ?

Single Site: can ERP work with the provided EBOM ?

Get’s complicated for a modular product in a Build To Order process

Many changes on the engineering side

Would require coordinated work on the ERP side – working in two systems.

An ERP system is not designed to manage iterations and comparing changes at the design side

• No, in case of modular product

ERP

PLM

Not every industry process needs a MBOM

Sometimes companies design their products with manufacturing in mind – hybrid BOM

Usually not complex products or short time to deliver

Often single discipline (mechanical design)

• Yes, for simple, mechanical products

Could the MBOM definition be in ERP ?

Situation In ERP ? In PLM

Single Site Yes Multiple locations

Local Manufacturing Yes Global Manufacturing

Non-Modular Product Yes Modular Product

Simple Product Yes Complex Product

Small Companies Other Enterprises

Note: This is a generalization. Every rule has an exception. So there must be a rule without exceptions

Could the MBOM definition be in ERP ?

Situation In ERP ? In PLM

Single Site Yes Multiple locations

Local Manufacturing Yes Global Manufacturing

Non-Modular Product Yes Modular Product

Simple Product Yes Complex Product

Small Companies Other Enterprises

MBOM and PLM - Do we agree on PLM ?

Intellectual Property

The MBOM is part of the Intellectual Property Best to be managed in a PLM environment

Nobody owns data

Everyone shares data

The Critical Change

The complementary roles of PLM and ERP

(Old) slide from tech-clarity closing loop product innovation erp plm

“PLM systems are reason that ERP systems can execute, they bring the product definition and information to produce a product.” “ERP systems are built to schedule and execute the production of well defined products in the most efficient way. ERP systems are needed for the execution, often the core activity for manufacturing systems.”

MBOM and PLM

ERP - execution PLM – all product knowledge

Tools Automation

Manual Actions

reduce complexity !!

MBOM and PLM

ERP - execution PLM – all product knowledge

Tools Automation

Manual Actions

Of course reality is not that simple: • Standard Parts – cost and status information • Integrated ECR / ECO processes • New Part approval process

MBOM and PLM – global manufacturing

ERP - execution PLM – all product knowledge

Tools Automation

Manual Actions Local ERP 2

Local ERP 1

In case of global manufacturing: local MBOM based on PLM MBOM

M

B

O

M

1

M

B

O

M

2

Where is the MBOM ?

The MBOM managed in PLM is a best practice.

Managing change in the full context of the product

No late discoveries for errors

Benefit from the shared information

Customer centric / Quality

Where is the MBOM ?

The handling of the MBOM is a PLM indicator The company learned to change

The company understands PLM

However: PLM is not only about the MBOM

Not every company needs a MBOM

Not every company needs PLM

What can we expect in the future (5 years)

No change: Keep the MBOM in ERP

No burning need (boiling frogs)

Nobody gets blamed for not changing

Small and medium enterprises with strong IT focus on ERP

60 %

What can we expect in the future (5 years)

MBOM in PLM

Already there or planning ahead

They have understood the value of PLM

Large dynamic enterprises and young companies with a focus on global operations

30 %

What can we expect in the future (5 years)

MBOM is a “dashboard” Data is a combination of various systems

Using Search technology and semantic rules to collect and present data

A disruptive technology that can change the PLM – ERP game – no longer single source of the truth The TRUTH =

10 %

Conclusions

“Where is the MBOM” should not be the question It is the same question as “Should I stop smoking”

The answer is: Do we wait till we feel the pain?

Questions ?

Thank You