WBSP357: Grow Your Business by Learning the Best Practices of Bill of Materials, a Live Interview w/ a Panel of Experts
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Just like ERP, the Bill of Materials is perhaps the overused and oversold term. A BOM could be the assembly of two materials like wrapping a gift for your birthday. Or it could be the manufacturing process of the whole spaceship. But what if the process of manufacturing a spaceship resulted in waste material that could turn into a nice lamp. Would this whole process be captured as part of the bill of materials? How would the cost be accounted for each of them? Does the BOM differ for different teams? How much engineering data does the BOM need to carry? How much financial data does it need to carry? Can it also help procurement teams with their scheduling? Can it produce Gantt charts? Can it compute your contribution margins? These are the questions you are going to have if you are structuring BOMs for your manufacturing shop. If you don’t configure the BOMs right, your costing, scheduling, inventory, supply chain, eCommerce experience, and profit margins will be all over the place. So what are the best practices for structuring the BOMs?
In today's episode, we invited a panel of cross-functional experts for a live interview on LinkedIn who brings significant expertise to discuss the bill of materials best practices. We discussed several types of BOMs and their misunderstanding could result in operational implications for companies. Finally, we discussed several train wrecks and horror stories due to the poor structuring and governance of the bill of materials.
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