<
 

Manufacturing Requirements Planning 


PART III. 

 

Bill of Material

Most companies either don't measure bill of material accuracy or complain about how low it is. Those that think their bills are good, but don't measure them per the

industry standard (Ref. Class A checklist) are surprised to find how poor the accuracy is. Inaccurate bills of material mean an inaccurate material plan and capacity plan. Without material and capacity you can't build the product.

The first step in achieving bill accuracy is to rethink what should be included in the bill. In the past we wanted to put everything on the bill of material. That is not the case today. Many items that are a common commodity can be eliminated by simply having a local supplier keep the bins full much the same as a bread man does in a grocery store. This allows the company to operate at a much lower overhead and at the same time buy these components cheaper. Rethinking what needs to be on the bill of material is an important step in the reengineering process.

Another issue to consider in achieving bill accuracy is where the source for information comes from. Many companies try to load the responsibility for bill of material accuracy totally on engineering. Unfortunately, in most companies the engineering resource available to monitor and keep the bills accurate is no where adequate to main­tain the minimum of 98% to properly operate MRP II. Reengineering maintenance of the bill should start with a clean piece of paper when considering resources. There is a resource that touches the product every day and can monitor the bill for accuracy at no cost .That resource is the shop people. All that needs to be done is to get them to report the inaccuracies. Because of engineering's poor performance correcting bill errors that the shop has re­ported, it is a major task to get the shop to start reporting inaccuracies. Engineering will have to make the reported changes in a timely manner if management is to overcome the resistance from the shop. Overcoming the huge backlog is best done by using the shop people. Many companies run a 100% accuracy because they have reengineered the process and created a behavior change in the shop and in engineering.

Another reengineering step that needs to be considered is flatting the bill of material. The bill can be altered with code commonly called the phantom so the MRP system does not plan a level in the bill even though engineering calls for it. An examination of the manufacturing process will determine if flattening is possible. If the manufacturing process does not allow flattening a continuous improve­ment process needs to be started to begin creating flow cells through out manufacturing. The flow cells can allow the elimination of many levels. What drives the need for change? Tell sales and marketing you can reduce lead time by a factor of ten. Tell finance there will be a ten fold reduction in work in process inventory. Tell manufactur­ing they will be able to eliminate transactions ten fold. Tell quality they can expect a significant increase in the quality of the product. That is to name a few of the benefits.

To be Continued


STAY CONNECTED

To stay current on bullet-proofed manufacturing solutions, subscribe to our free ezine, "The Business Basics and Best Practices Bulletin." Simply fill in the below form and click on the subscribe button. 

We'll also send you our free Special Report, "Five Change Initiatives for Personal and Company Success."

  Your Name:

  Your E-Mail:

 

                              

Your personal information will never 
be disclosed to any third party.


Manufacturing leaders have a responsibility to educate and train their team members. Help for developing a self-directed, World Class Manufacturing training program for your people is just a click away:


http://bbasicsllc.com/training-modules.htm

You are welcomed to print and share this bulletin with your manufacturing teams, peers, suppliers and upper management ... better yet, have them signup for their own copy at:

http://bbasicsllc.com/subscribe.htm

With the escalating spam-wars, it's also a good idea to WHITELIST our bulletin mailing domain via your filtering software or control panel: 

bizbasics@getresponse.com



This will help guarantee that your bulletin is never deleted unexpectedly.


Manufacturing Knowledge you’ll not find at offsite 
seminars nor in the books at Amazon.com


Lean Manufacturing - Balanced Scorecard 
ISO 9000:2000 - Strategic Planning - Supply Chain 
Management - MRP Vs Lean Exercises - Kaizen Blitz 
Lean Six Sigma - Value Stream Mapping

All at one Website: Good Manufacturing Practices

 


World Class Manufacturing Menu

 Assembly Line Simulations

Lean Manufacturing Training Articles

Best Manufacturing Practices Archives

Manufacturing Best Practice Bulletin Archives

Linear Operations Survey

Lean Manufacturing Consulting

Lean Manufacturing Consultant

Kaizen Management

World Class Manufacturing Certificate Program 

Resources Links


Lean Manufacturing Training for anyone ... anywhere ... anytime
Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596

Lean Six Sigma Training   Thinking Out of the Box   
Balanced Scorecards  Strategic Tactical Planning  
Supply Chain Inventory Management
  Total Quality Management Principles
Lean Manufacturing Implementation  Lean Manufacturing Principles

Email: Click here  Privacy Policy