BOM Process PAIN POINTS

1) 2) 3) 4) Unreleased components on BOM Sales BOM not used Only Production BOMs used Cant create production orders on unreleased parts Standard SAP cannot create production order on unreleased parts. BOM Categories In the SAP System, you can use BOMs to represent different objects (such as materials, equipment, functional location BOMs, and documents) and to maintain object-specific data. Before you can create a BOM for the component parts of an object, the object must have a valid master record in your system. Material BOM: BOM with Reference to a Material A bill of material that you create for a material is known as a material BOM in the SAP System. For this material, the system creates a material master immediately, so you can also create a BOM for it. For this material, the system only generates a change document. Only when you activate the scheduled material does the system create a material master record. Then you can create a BOM for it. Material BOMs are mainly used to represent the structure of products manufactured within your company. You can enter both materials and documents as components of this BOM. A document info record must exist in your SAP System for each document you enter. Order BOM: BOM with Reference to a Sales Order You work with order BOMs when you specially tailor the make-to-order production of your products to the requirements of your customers. In order to meet the customer requirements, sales order specific modifications to various assemblies are often required. Furthermore, assemblies are often specially constructed for a particular sales order. The order specific, modified or created BOMs are saved with reference to materials, sales orders, and sales order items. BOMs of this category are linked to sales orders, so they are known as sales order BOMs or order BOMs.

You can create order BOMs using the variant configuration as well as the BOM processing function. 5) Bulk determination in BOM BOM with Reference to a Production Lot Production lots for finished and semi-finished products can be planned and manufactured using different BOMs. For example, a substituted component can trigger a targeted cost calculation and evaluation per production lot during the planning stage before sales. You use this number to plan and manufacture the production lot for an assembly, and calculate the planned and actual costs for producing the assembly. 6) Multiple Parts Number for same part. Each item has a unique identification in a BOM group (all alternatives of a multiple BOM or all variants of a variant BOM).The item ID identifies an item. The item ID can only be assigned on the Item Overview. In the standard R/3 System, the item ID can be assigned as follows: Internally If you do not enter an item ID, the system assigns one automatically. Internally assigned item IDs are always numeric. Externally You enter an item ID that has at least one non-numeric character. Dont allow maintaining externally part number without Material master records, otherwise chances of getting multiple part number for single item entering in the BOM would be more. 7) Not using Release indicator on BOM While creating a BOM (CS01), in the header item selection we can set the BOM status (This indicator controls subsequent processing of the BOM in various other organizational areas (for example, engineering, costing, MRP). By customizing BOM status, we can defines for which functions the BOM should be exploded using (OS23) T.code You can set status to explode only in MRP and not for production and costing etc.. The BOM status can control MRP explosion Planned Order

Relevant for COSTING Relevant for Wk Scheduling Relevant for production orders Relevant for Sales order Now you can create your own status of BOM and can assign to the BOM in BOM header. 8) 9) ZREF not being used enough Production costs not defined The costing BOM describes the product structure and is used to automatically determine the costs of the materials required for a product. Items that are not relevant to costing are not included in the costing BOM. For Line Items in BOM a) For Stock items (L) Product costing functions take the material valuation from the material master record (Costing view). b) For Non Stock items (N) Product costing processes take valuation data from the BOM item. The system determines the release strategy on the basis of the price data you enter. The material group is required to produce a purchase requisition. c) Bulk Material is not relevant to MRP and Costing. If it is relevant to MRP then costing can be involved. (Scrap data - Product costing uses the scrap to determine excess consumption of materials and services.) 10) BOM View-R&D=1200 lines; purch=200 No view of 200 lines to use for purchasing?

11) BOM not setup for production & procurement 12) No upfront plan for BOM structure 13) Create the same part as in another plant because we cant control their part

Old 14) PR Process 15) Sales BOM not used 16) ZREF 17) Serialized P/N not backflushing properly It is not possible to backflush the serialized material. We have to do the goods receipt and goods issue against the production order manually. Automatic goods movement is not possible. 18) MRP Controller 19) Consignment backflushing Create raw material as procurement type "F" (external procurement) and special procurement type as "10" (Consignment). The path is in configuration setting Materials Management-Inventory Management and Physical Inventory-Stock Determination. Here in you can Define Strategies for Stock Determination and assign it to production order. In "Define Strategies for Stock Determination" after all relevant configuration into "Stock Determination Item Table" you can priorities your storage location and "Special stock indicator" You need to define the "Stock determination strategy" using transaction, "OSPX". Here you have to define for a plant combination, 1. Stock Determination group 2. Stock Determination Rule (Not plant dependent) 3. Stock Determination header table 4. Stock Determination item table - (Here you need to define Consignment as 1st priority) In T.code OPJ2: plant/order type- stock determination rule as 0001, operation as "3" and the indicator "un check No stock determination" if it has been set by default. Then in material master: general Plant data/ storage 2: Storage determination group "0001" i have entered

In MRP3 view Availability check :"No check" i have entered. (Please first check component overview in your production order whether the storage location and "Special stock indicator" as per stock determination group has been copied. Even If you enter Special stock indicator in your production order for the component which you want to take consignment stock system will ask for vendor code. Please checks is it copying first in production order and then go for confirmation.) 20) Costing info incomplete 21) Material Master not set up 22) No BOM Audit 23) Who does what for each step 24) Research other plants for parts