Bill of Material Bill of Materials In light of the changing business environments, organizations are embracing technological integration into their operations to minimize costs and maximize profits. Therefore, resource planning tops the list of core business aspects that needs close monitoring to drive the companies towards achieving the profitability goals. A technological platform such as the Enterprise Resource Planning (ERP) is in use in most organizations to help in resource planning. One component of the ERP is the Bill of Materials (BOM) software.
The technology and software application companies such as Microsoft Inc. and SAP Inc. designs the BOM for many enterprises depending on the nature and ERP needs of the enterprise in question. The technology companies have to make the BOM application user-friendly so that the management may find ease and efficiency when using it.
BOM is a merely a list of the components required to build a product by detailing and providing the manufacturers part number and the amount of quantity need for a particular component. For example, Microsoft deals with production of computer hardware, which typically consists of different parts. The company, therefore, uses the BOM track the components needed to complete a single computer hardware. That enables the company to track the production cost per unit head.
Similarly, SAP is a computer technology and hardware company that assembles computer hardware parts to supply to their clients. Consequently, SAP uses the BOM track the cost of particular parts needed for completion of a single product design. Additionally, SAP management can use the information generated to manage its stock and plan for deliveries from suppliers in time. The policies concerning stock control effectiveness is easily monitored through BOM
In general, BOM benefits Microsoft Dynamics and Systems, Applications and Products (SAP) in many ways. Some of the benefits include. facilitating and the location of items. Hence, it saves time spent. Additionally, the software identifies the changes that materials have undergone with respect to a particular time. The rules that govern the use materials can be useful using BOM. Lastly, BOM software, gives reports of the full audit of the material usage, all the approvals made during requisition of materials and all the costing involved (Hua &. He, 2010).
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Hua, Z., &. He, P. (2010). Process flexibility under bill of material constraints: part I–an effective measuring approach. .International Journal of Production Research, .48(3), 745-761. Doi:10.1080/00207540802534699