Bill of Materials

Bill of Materials (BOM) Explained

When your engineering team defines a comprehensive list complete with raw materials, items, parts, components, assemblies and sub-assemblies, you have the Bill of Materials presented right at your hand. Often, our expert engineers design the BOM on a computer-aided design (CAD) or electronic design automation (EDA) tools.

Typically in a hierarchical format, BOM displays your engineered product at the top macro level, then as detailed as they get, individual components are broken down and moved sequentially to the bottom micro level.

Here’s what you should check in a Bill of Materials:

BOM level
Part number
Part name
Description
Quantity
Phase
Unit of measure
Procurement type
Reference designators
BOM notes

In simple words, BOM pulls all sorts of information which serves as a document reference for multi-disciplines engaged in your project. This plethora of disciplines can range from design, engineering, operations, manufacturing and purchasing. For specific cases where concentrated information must be presented, data-dependent departments particularly engineering and manufacturing create their own BOM subsets to move your project forward with all target goals aligned.

How Engineering BOM Differs from Manufacturing BOM

At Nearby Engineers New York Engineers , we are well-versed with the different BOM structures available. However, our skilled engineers know from experience that BOM should cater specifically to the needs of your project. This goes to show that multiple BOMs may exist but evaluation must be done initially to render time-saving and cost-effective measures on your project.

As an example, we set manufacturing BOM (MBOM) against engineering BOM (EBOM). For the former option, manufacturing BOM specifically refers to the “what” and “how” of product assembly. All core data and instructions needed for your product to be built and be deemed shippable are detailed in a manufacturing BOM. When incomplete, you subject your product to common risks of slow, incorrect or zero production.

On the other hand, the latter option or engineering BOM goes into the “what” and “how” of your product design. Delve deeper with details as you can create more specific BOM subsets under the engineering disciplines. Our specialized engineers on mechanical, electrical, plumbing and fire protection all have their own preference on BOM structure based on the product design needs. Where mechanical engineers opt for multi-level BOM with nested sub-assemblies as leverage on several custom designs, electrical engineers on the other hand choose single-level BOM for their off-the-shelf (OTS) electrical components.

Safe to say, we can draw conclusion that manufacturing BOM and engineering BOM have a common ground, albeit different in structure and function. All ends being tied, engineering BOM is very much akin to baking process where when you miss an ingredient or step, this can lead to disastrous product results since there’s a handoff from EBOM to manufacturing. At Nearby Engineers New York Engineers , missteps are out of the equation.

Before we dive deeper with intricate details, we need to understand this principle: without EBOM, there’s no MBOM. Our engineers show you the trade secrets and the learning curve on how the supply chain works from a design standpoint to a manufacturing standpoint.

BOM is an essential blueprint in taking your design from concepts to reality. Once you understand the behind-the-scenes of workflow process, it will be easier to digest just how crucial each element is—regardless if you’re the client, consultant or contractor in a building project life cycle.

In almost any industry, BOM is typically easier to comprehend in a product design development, but let’s discuss its application in our specialized sector. Particularly in architecture, engineering and construction (AEC) industry, our specialized MEPF engineers utilize their industry-specific knowledge to bring life to your building projects.

For your understanding, we take you through the step-by-step process of how crucial BOM is:

Engineering design

From the get-go, our MEPF engineers specialize in their own disciplines to design your plans and draft the specifications which will support all the subsequent stages thereafter. All EBOM, followed with its largely-dependent MBOM for your building project, originate from this starting point.

Project administration

Project managers and construction managers utilize EBOM to coordinate the construction administration aspects of your building project such as document control, shop drawing fabrication and construction work orders.

Construction cost estimation

Multi-level EBOM proves to be very beneficial for your building’s commercial compliance as this serves as a control cost point from the quantity take-offs to the final project developmental costs.

Supply chain coordination

Transition from engineering to manufacturing standpoint for your building project takes place in this stage. From EBOM to MBOM, processes include sourcing, procurement, sales purchase orders, logistics, and inventory and warehouse management.

Third-party fabrication

When your building project calls for high material demand or fast-track construction, your original manufacturers for the MEPF components will outsource some of its production control to meet the product assembly requirement from the MBOM.

Systems installation

After successful fabrication from MBOM application, your contractors and suppliers will work hand-in-hand to plan the site logistics. Manufactured MEPF components can be assembled on-site or off-site pursuant to its functional and structural requirements, and then delivered in-situ for erection.

Operations and maintenance

For this final stage, all EBOM and MBOM utilized from the initial phases can be utilized for the facilities management of your building project.

By no means it’s an easy feat to tackle small-scale to large-scale building projects, especially when chain reactions from building workflow processes strictly demand expertise and experience for less mistakes. At Nearby Engineers New York Engineers , we have the two E’s to take your building projects from start to end.

Main Challenges in Creating Bill of Materials

Getting acquainted with the interlinked connection between the design, engineering and manufacturing processes effectively sets the ground for your understanding of BOM’s vital importance in building projects. Without BOM, running your building project up to speed is impossible.

Despite the presence of BOM, our expert engineers talk from experience on the main challenges they encounter with creating multiple types of BOM. Some of which are:

Information handoff from engineering BOM to manufacturing BOM
Change replication and management
Digital facilitation platform for product configurability among stakeholders
Managing a material traceability matrix throughout the project life cycle
Implosion and explosion of assemblies
Outdated BOM technology systems lack automation for increased efficiency
Inaccurate component levels for data-heavy BOM
Third-party fabricators filing disputes on variances between shop drawings and BOM extraction
Assembly reworks on supply chain due to late synchronization of BOM revisions
Increased procurement costs from omitted components

Analyzing all these criteria items above lead us to one solution: effective management of BOM on administrative and technological aspect. Stay tuned on the next section as our engineering team at Nearby Engineers New York Engineers give you the in-depth details on how to make this strategy work.

Strategies for Better BOM Management

Considering the tedious and detailed scope of BOM, paper trail for your building project just won’t make the cut anymore. As much outdated and inconvenient as it is, you could also compromise the longevity of your business and lose out on some potential contracts all because you can’t manage all your input and output data.

Big data is vital in this Information Age, and in AEC industry, it all starts with a BOM.

Here at Nearby EngineersNew York Engineers , we give you insights on how you can gain a competitive edge over your competitors using our time-tested strategies on BOM management:

Automatic data integration between systems
Virtual platform for accessible and efficient stakeholder collaboration from any location
Accurate cost predictions for focused functionality on design changes and competitive pricing
Integration of design and manufacturing processes

With better technology comes improved expert collaboration. In building projects where multidisciplinary approach is a prerequisite for success, having strategic BOM tools at hand can determine if your chain reaction spirals upward or downward. At Nearby EngineersNew York Engineers, your success is our success.

For building projects dealing with faster timelines and controlled budgets, making mistakes would prove to be very costly for you despite the small extent. In all likelihood, you can’t avoid mistakes all too entirely but you can curtail them to a certain degree with established systems and error mitigation in place.

Here are possible risks and impediments that can happen when your building project’s subjected to an ineffective EBOM:

Build problems

Since MBOM is heavily dependent on EBOM, any errors seeping from the latter would be handed off to the manufacturing process. Take for instance, you need 20 bolts instead of 15 for the accurate assembly of your mechanical design. If error correction only happens after the procurement stage, this can effectively cause delays in the production. Overall, your building project’s critical path management is hampered.

Wasting valuable resources

Time, cost and quality constraints are the trifecta of a successful building project. Any misinterpretation on the EBOM equates to money which should’ve been rightly allocated but wasted on an unusable inventory, or sequentially build delays once the error has been rectified.

Uncontrollable revision cycle

In a few words, countless EBOM revisions won’t move your building project from design to turnover. This means that building components won’t be fabricated, delivered and installed on-site, right on time—leading to liquidated damages and loss of valuable profits once your building project moves past the turnover deadline.

It is noteworthy to point out that there’s a direct cause-and-effect relationship with professionals and systems. Lack of experts is proportional to chaotic systems. Then, all systems lead to a domino effect of failure or success. Best to get your BOM right from the start with Nearby EngineersNew York Engineers.

How Can Effective Bill of Materials Benefit You

With all the drawbacks of an incomplete EBOM, this leaves us to one conclusion: you get numerous advantages once you reverse the setting. At Nearby EngineersNew York Engineers, we understand this simple principle.

Hence, we list all the numerous benefits you can get once you utilize our expertise on designing complete and accurate EBOM for your building project:

Extraction and data reporting

An effective BOM partnered with an advanced technology can generate automated reports which can be extracted by any department involved in the project. Engineering, procurement and manufacturing departments can use custom filters to generate purchase orders, construction cost estimations, and field change orders.

Best pricing for long-lead items

Once manufacturers have a complete EBOM right in their arsenal, this can give them a better leverage on sourcing and negotiating competitive prices for your parts, as opposed to expedite charges for rush orders.

Eliminate rework and expedite the project timeline for efficiency

Putting a stop to your out-of-control revision cycles is easier with an EBOM in place. When you give your manufacturers the right parts list for your building components, you can better position your building project in an early turnover for better value propositions.

Get Your Bill of Materials Right with NY Engineers

Set high standards for your building project to ensure that you’re not stuck in a start-from-scratch approach with reworks. Start with our expert team of engineers to meticulously design your EBOM with no technical, commercial or legal loopholes which could hamper your building project’s progress.

Get your BOM right, right from the start. At Nearby Engineers New York Engineers , we set the pillar for your success.

Arm yourself with a powerful point of reference when your building project transitions from engineering to manufacturing.

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