Introduction - Manufacturing BOM
In various sectors like equipment, vehicles, and machinery, working with advanced and complex Bills of Materials or BOMs with many levels can be challenging. Manufacturers struggle to monitor various factors, such as product types, routes, version control, and costs, in real-time. Odoo manufacturing accelerates and streamlines the process while managing numerous layers of BOM.
Advanced route integration ensures accurate process mapping and coordinates work zones. Version control keeps changes secure, while real-time cost tracking gives you precise information on material and work costs. This robust capability proves invaluable in industries like automobiles, heavy machinery, and parts production. Additionally, we will explore how Odoo manufacturing simplifies complex BOM management for equipment and parts manufacturers.
What is a Complex BOM?
A complex bill of materials (BOM) includes a lot of parts, subassemblies, and possible modifications. It may also entail Odoo for multi-level product structures and often calls for advanced management systems. Besides, the value added by manufacturing around the world is projected to hit $14 trillion by 2025. This shows how important it is for equipment and parts makers to have proper tools like Odoo.
- A final product is organized by a multi-level bill of materials (BOM).
- Configurable BOMs allow for dynamic product configuration by selecting elements or options.
- Version-controlled BOMs maintain an audit trail by keeping track of modifications made at various levels of the BOM.
- Routing-enabled BOMs include production steps that describe processes, work centers, and how they depend on each other.
Examples
- Apple Inc.: Apple (Source) is known for its effective supply chain management and its ability to develop innovative products. Their multi-level BOM approach has been key to making a lot of goods, like iPhones, iPads, and MacBooks, quickly and efficiently.
- Boeing: Companies that make aeroplanes, like Boeing (Source), have to deal with complicated systems and thousands of parts. Using a multi-level bill of materials (BOM) helps them keep track of all the different parts that are needed for each aeroplane model.
Challenges Faced by Manufacturers without a Smart BOM System
Manufacturers without an innovative BOM system face significant operational challenges. Manufacturers face these challenges without an innovative BOM system:
Manual Tracking of Sub-Assemblies and Revisions
Spreadsheets and handwritten bill of materials (BOM) methods often lead to many mistakes. Besides, manufacturers usually can't tell which version is the most up-to-date, which can cause production problems.
Difficulty in Handling Product Variants
Companies must create multiple BOMs for each version if they lack customizable BOM support. Besides, this leads to duplicate data and problems with consistency.
Misalignment between Design, Procurement, and Production
BOMs that are not linked to CAD create communication barriers. Engineering teams do not always share updates at the same time.
Delays Due To BOM Version Errors
Using old or incorrect copies of the bill of materials (BOM) can slow down production and purchasing. When someone does version control by hand, they can miss amounts or use the wrong parts. Besides, these mistakes often get found late.
Lack of Visibility into Production Costs and Component Dependencies
Manual BOM methods make it challenging to track material costs and inventory usage. Besides, without combined tracking, manufacturers cannot accurately determine the price of changes or the delays caused by dependencies.
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How Odoo Simplifies BOM Management
The BOM management software market was worth $5.3B in 2023 and is expected to reach $7.03B by 2030 (Source). This shows that demand is growing, thanks to solutions like complex BOM management in Odoo.
Multi-Level BOM Handling
Odoo lets users set up multi-level bills of materials (BOMs), which allows them to list parent goods and stacked subassemblies, like gear modules or circuit boards. This technology makes it easier to manage nested BOMs with Odoo or to handle structures.
Besides, the bill of materials system displays a dynamic tree view. This view helps users easily navigate between different parts. This makes product designs clearer and speeds up BOM reviews and changes.
Product Variants and Configurators
Odoo Engineering change management uses a single bill of materials (BOM) for product models that have different characteristics like color, size, or material. Besides, this keeps the BOM from being duplicated and makes managing variants easier.
The product version configurator helps configure-to-order processes by creating bill of materials (BOM) lines automatically based on the choices that are chosen. This way, production can match client requirements without having to do it twice by hand.
Routing and Work Centers
Odoo manufacturing enables you to assign tasks within the bill of materials (BOMs) to specific work centers, connect processes to real resources, and ensure that tasks are sent to the right people or tools.
Routings set out in bill of materials (BOMs) determine the order of production processes. Besides, it follows a clear order for each step. This way, it makes sure everything is done correctly.
Engineering Change Orders (ECO)
Odoo PLM lets users create Engineering Change Orders (ECOs). In addition to this, users can lock revisions and approve and update the BOM version to prevent others from altering it.
Apart from that, all BOM and ECO changes are tracked and logged. You can still look at previous versions, so rolling back is easier, and you have the correct documentation for reporting and design history.
Costing and Material Planning
Odoo ERP for industrial manufacturers calculates the bill of materials (BOM) cost in real-time by looking at both the material and business expenses. Financial professionals can also monitor and manage production budgets with real-time cost information.
Odoo's MRP engine lets you utilize BOMs to their full potential. When components change, they instantly start the process of buying additional components, updating inventories, and changing schedules. In addition, this ensures that supplies are delivered on time and reduces gaps in the supply chain.
Benefits for Equipment & Parts Manufacturers
The world's manufacturing sector is projected to have 5 million businesses by 2025. Besides, this will increase the need for innovative solutions like Odoo. When makers of equipment use Odoo manufacturing for parts assembly, they become much more efficient. Key benefits are:
Up To 80% Fewer Errors In Variant Manufacturing
Manufacturers can handle complex BOM in Odoo to cut down on mistakes and errors that happen when you enter data manually. Besides, real-time validation reduces human error. Making different versions of a product leads to up to 80% fewer mistakes.
65–75% Faster BOM Version Updates
Managing a bill of materials digitally makes it easier to keep track of different versions and enables teams to exchange modifications straight immediately. This reduces the amount of work that has to be done by people and speeds up update cycles by up to 75%.
40–60% Reduction in Production Delays
Integrated systems combine supply chain data with production plans. This minimizes material shortages and timetable concerns to a minimum. Also, it cuts wait times by up to 60% thanks to data-driven precision and real-time monitoring. This lets companies cut down on manufacturing delays.
Unified Planning Between Design, Inventory, and Production Teams
Centralized systems connect CAD, ERP, and inventory tools so that everyone can work from the same set of facts. Besides, this removes silos, decreases errors, and allows teams to interact rapidly.
Greater Traceability and Compliance
Digital records make audit trails apparent for every stage and aspect of the process. Odoo ERP for industrial manufacturers enables real-time supply chain analysis and expedited document delivery thanks to its capabilities. Also, this improves quality control in all of their businesses across the world.
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Results You Can Expect
With smart BOM and MRP tools, Odoo for equipment manufacturing gives equipment and parts makers the power to simplify their processes. Besides, here are some results you can expect:
Up To 70% Time Saved in Production Planning
Smart forecasts, drag-and-drop scheduling, and real-time capacity checks are some of Odoo's automatic production planning tools. Besides, manufacturers say that new planning tools save them up to 70% of the time it used to take.
90% Accuracy in Material Procurement
Odoo matches demand expectations and source rules to make accurate RFQs. Besides, this cuts down on overstocking or deficits and speeds up the turnaround of complicated parts and components.
2x Faster Time-To-Market for Configurable Products
Users can make changes to products on demand with Odoo's version customization and dynamic bill of materials (BOMs). Besides, this cuts down on technical delays and speeds up the processing of orders.
Full Traceability for Compliance and Audits
Odoo's batch tracking, serial numbers, and automatic documents make sure that traceability is ready for an audit. Besides, manufacturers can easily follow ISO, FDA, or local rules with this.
Getting Started with Odoo Manufacturing
You can begin by setting up master and sub-BOMs. Set up routes and link work areas, as well as variant-specific components. Besides, manufacturers can make changes to processes, automation, reports, and modules in Odoo. Depending on your needs, you can use studio apps or code-based creation.
Besides, certified Odoo partners ensure the system is stable, can grow, and integrates well with other systems. Odoo for the equipment manufacturing team: verify that processes, routes, and resource allocation are accurate. Joint involvement eliminates silos and reduces execution errors.
Conclusion
Odoo manufacturing makes BOMs easier to understand by allowing multi-level, versioned, and kit BOMs. This makes production planning and cost control accurate and efficient. Besides, by updating to Odoo, businesses can become more efficient, trackable, and quick to respond.
Are you ready to change the way you make things? You can talk to an Odoo expert about your specific needs and get results that are flexible and will work in the future. You can schedule a test to see how customized processes work.
Amit K
- Amit Kansagara is a seasoned ERP solution expert with over 15 years of experience in multiple industries. He has spent more than a decade in Australia, Malaysia, and the United States providing custom software solutions. He specializes in automation, enabling firms to focus on key activities through the use of effective ERP systems. He currently works as an ERP Consultant and specializes in designing and implementing solutions for large-scale organizations, with a focus on RFID-based inventory systems, AI integration, and process automation. Amit is committed to assisting enterprises in optimizing their operations and achieving long-term success through innovative technological solutions.
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