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Where is the mbom ?

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Presentation around the MBOM topic for PLM Innovation 2012

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Where is the mbom ?

  1. 1. MAINTENANCE DIVISIONWHERE IS THE MBOM ? The MBOM as PLM indicator Jos Voskuil www.virtualdutchman.com
  2. 2. Agenda The history of BOM BOM and ERP MBOM and PLM Future BOM practices
  3. 3. History In the beginning there was no BOM
  4. 4. 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)
  5. 5. History Once upon a time there was no BOM Industrial revolution 1964 MRP – 1990 ERP – introduction of BOM
  6. 6. 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. … and often this is still the case  2012 Engineering Manufacturing
  7. 7. 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
  8. 8. 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
  9. 9. 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 ?
  10. 10. 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 Test Release To ERP ? Release iterations in quality and completeness Review Design
  11. 11. 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 • Yes, sometimes PDM ERP in case of a single site • No, in case of remote manufacturing
  12. 12. 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
  13. 13. 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 PLM  Many changes on the engineering side  Would require coordinated work on the ERP ERP side – working in two systems.  An ERP system is not designed to manage iterations and comparing changes at • No, in case of the design side modular product
  14. 14. 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
  15. 15. Could the MBOM definition be in ERP ? Small Companies Other Enterprises 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 Note: This is a generalization. Every rule has an exception. So there must be a rule without exceptions
  16. 16. Could the MBOM definition be in ERP ? Small Companies Other Enterprises 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
  17. 17. MBOM and PLM - Do we agree on PLM ? Nobody owns data Intellectual Property Everyone shares data The Critical Change The MBOM is part of the Intellectual Property Best to be managed in a PLM environment
  18. 18. The complementary roles of PLM and ERP “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.” (Old) slide from tech-clarity closing loop product innovation erp plm
  19. 19. MBOM and PLMreduce complexity !! PLM – all product knowledge ERP - execution Tools Automation Manual Actions
  20. 20. MBOM and PLM PLM – all product knowledge ERP - execution 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
  21. 21. MBOM and PLM – global manufacturing PLM – all product knowledge Local ERP 1 ERP - execution M B O M 1 Tools Automation Manual Actions Local ERP 2 M B O In case of global manufacturing: M local MBOM based on PLM MBOM 2
  22. 22. 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
  23. 23. 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
  24. 24. What can we expect in the future (5 years) No change: Keep the MBOM in ERP  No burning need (boiling frogs) 60 %  Nobody gets blamed for not changing Small and medium enterprises with strong IT focus on ERP
  25. 25. What can we expect in the future (5 years) MBOM in PLM  Already there or planning ahead 30 %  They have understood the value of PLM Large dynamic enterprises and young companies with a focus on global operations
  26. 26. What can we expect in the future (5 years) MBOM is a “dashboard”  Data is a combination of various systems 10 %  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 =
  27. 27. 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?
  28. 28. Questions ?Thank You

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