Manufacturing BOM is the next cool thing in PLM

plm-manufacturing-bom-boom

I’ve been doing data management system for the last 20 years. The one thing you learn very fast – 3D and visualization are cool. Data is boring. So, if you want to impress somebody (journalist, analyst, your boss… whoever else) you need to create realistic representation of your future product. And show how to can turn it on the screen of your computer or better on mobile device (the reality of last 3 years). I agree, to see what you mean is cool, especially if you can make it before it will be manufactured. Awesome stuff. It can sell your product before it even exists. CAD/ PLM companies made lots of money selling visualization and rendering products. These days you almost cannot differentiate the video or photo of real car from realistic visualization.

Forget about it, for the moment… Design can be cool. However, important question these days is that – can you really make this product? If yes, than how? How fast? Or even more – can you make a profit after you design, visualize, manufacture and sell your product?

Engineering.com articleThe Next Big Boom in PLM and ERP and the Battle Over mBOM Ownership announced “war alarm” between PLM and ERP companies around manufacturing BOM (MBOM). Article speaks about how important MBOM and Master data management in solving problems such as cost, quality, tooling and many others.

I made me think again about how future of manufacturing will be dependent on solving of old PLM/ERP integration problem. In my view, complicated data synchronization is really bad thing. It leads to complex behavior, user experience and, after all, to product data errors. The question of product data errors is one the disturbs manufacturing companies. Emailing spreadsheet with bill of material won’t make your product development and manufacturing process more efficient. The following passage from engineering.com article is my favorite:

Ashley Morris, a researcher at Cardiff University in the UK, has identified seven root causes of product data errors. The three most important ones are 1/ Inaccurate data entry; 2/ Incorrect data flow between applications; 3/ Duplicate data between systems. Product development teams are all-too-familiar with how these errors occur given the various systems that manage the data. Generally cBOMs (configuration BOMs) and eBOMs (engineering BOMs) are created in the PLM systems, whereas mBOMs (manufacturing BOMs) and sBOMs (service BOMs) emanate from ERP or/and MES systems. But there’s no rule here. Several variants and combinations are “on the map”.

MBOM is tough problem. I identified 4 main reasons why MBOM is hard for PLM. Read my previous article here. In a nutshell, here are four main reasons why MBOM solution is not simple for PLM vendors and service providers:

1- Most PLM systems starts from CAD and Engineering BOM.

2- Engineering and manufacturing people live in different worlds.

3- Synchronization of BOMs is messy by default.

4- For PLM to get data about manufacturing parts is painful.

Despite all these complexities and difficulties, PLM vendors is pushing towards better integration with manufacturing. I really liked the following quote explaining the objective of Bill of Material module by Siemens PLM:

“The objective of this BOM module (TC PMM) is to provide an integrated BOM foundation spanning Engineering, Manufacturing, Prototype and Service domains.” The tight integration to design and manufacturing processes can drive virtual validation of both these process types from a BOM point of view. “With our approach the BOM is documented once and various other BOM’s like mBOM, sBOM, pBOM etc are derived from this core eBOM, without re-documentation.”

So, what it all means for PLM? Bill of Materials (BOM) was always the apple of discord between PLM and ERP. Large companies these days cannot live with PLM and ERP systems. While engineering part of product information resides in PLM system, manufacturing part is managed by ERP. Product cost and quality can often fail between chairs and this situation disturbs manufacturing companies. This is the simplest possible configuration. Sometimes, design and engineering product even more distributed (look on Airbus’ case) – design (CATIA), product configuration (Windchill), manufacturing BOM (SAP). Which brings me back to my thoughts about why companies are not ready for single BOM? Main reasons – specialized tools used by different departments, no agreement between organizations how to manage data in a consistent way, absence of ‘universal’ tools.

What is my conclusion? MBOM is going to be in focus for many manufacturing these days. Efficiency and ability of manufacturing company to execute flawlessly becomes more and more important. Manufacturing environment is highly distributed these days with lots of constraints and dependencies. To design and bring product to market in a short time is a complex task you cannot solve without tools that will help you to synchronize and connect bill of materials. Just my thoughts…

Best, Oleg

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2 Responses to Manufacturing BOM is the next cool thing in PLM

  1. Jos Voskuil says:

    Oleg I am suprised to see the revived hype about the MBOM. The topic is not new and will remain as long as we think in systems instead of processes. I wrote in 2008 a post called “Where is the MBOM”, still of the most read posts.

    I am waiting for the time PLM and ERP have become visions to be implemented on an infrastructure supporting a lean process, which differs per industry / main business process

  2. @Jos, thanks for comment! Good to see you on my blog :). MBOM isn’t new, but since PLM vendors are looking for differentiatiors and companies even more concerned about how to validate “manufacturability”, old ideas can come back. What do you think?

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