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iTEC ERP's Management Points of Product Structure

The BOM (Bills of Material) and BOP (Bill Of Process) at the source must grasp the following key elements:

  • Data Accuracy
  • Prevent garbage in, garbage out scenario: Strengthen data review
  • Prevent incorrect data from going to downstream processes
Issues Caused by Improper Management

➀ Type 1: BOM Errors
This may result in purchasing the wrong materials or missing procurement of materials, causing chaos in the supply of raw materials.

➁ Type 2: BOP Errors
Incorrect setting of production process sequence leads to the inability to assign work orders or report production after completion, resulting in disorder in production scheduling.

Features of iTEC ERP's Product Structure

Version Control

BOM & BOP provide version control functionality, which can be divided into Sample BOM, Mass Production BOM, Formula BOM, and Packaging BOM, ensuring comprehensive documentation of the product from the development phase to the sample phase, trial production phase, and mass production phase.

Once the BOM & BOP are established, a cost sheet can be generated before mass production to provide a foundation for external quotations, expediting the quotation process, and using scientific methods to estimate costs, ensuring the profitability of the enterprise accurately.

BOM Excel Import

The establishment of BOM & BOP allows EDI (Excel files) to import a large amount of data into the BOM and BOP, enabling product structuring and enhancing efficiency.

The BOM (Bill of Materials) provides standard usage, scrap rates, and stations for materials feeding to facilitate the scheduling of materials, and controls material costs.

During the product development phase, after completion and verification, EDI tools improve operational integration and reduces rework, preventing data chaos at the source. This helps avoid issues that may go unnoticed during the formal production scheduling, such as BOM errors resulting in purchasing the wrong materials or missing materials, or BOP process sequence setting mistakes leading to the inability to report work, causing inconsistencies between actual management and data flow, increasing the workload on personnel.

BOM Difference Comparison

During the product's material usage or production process, there may be slight variations for the same model. The iTEC ERP provides a BOM difference comparison to assist in quickly establishing the BOM manually. This not only increases accuracy but also improves efficiency several times."

Standard production operation procedures are provided in the BOP, including the required workforce, equipment, molds, and fixtures for each workstation. The crux lies in the system's provision of standard working hours for each PC and setup times for changing lines or molds, enabling efficient scheduling and precise control of manufacturing costs.

Product Structure
Sub-process

Work orders can be tailored to meet the enterprise's need in BOP planning, streamlining the process while also fulfilling the requirement of collecting detailed work hours. iTEC ERP provides a streamlined and efficient functionality to collect work hours for each period on the production floor."

Joint Products

There will be two or more finished products as output after production input, and the number of finished products can be estimated in advance. In the MPS scheduling system, when converting new orders, the distribution is automatically allocated based on demand, which can reduce inventory and achieve the best supply-demand balance. The production of joint products can also share costs, aligning with the enterprise's cost accounting methods, and more importantly, optimizing equipment utilization while simultaneously reducing manufacturing costs.

Second Source

When new products or newly developed materials are introduced to the market, companies will face the challenge of how to deplete the existing inventory of the old products.
At this time, the system must provide a second source inventory, depleting the old product stock before purchasing the new ones, or specifying which batches can be used as substitutes. iTEC ERP assists companies in effectively managing inventory and reducing stagnant inventory.

Mold Management

Molds and fixtures are essential for production, preventing situations where production cannot proceed due to the absence of required molds, which could become a bottleneck in the production process. Therefore, management of mold quantity should be included as one of the key items in the production process.

ECN Changes

During the product production cycle, improvement processes may arise, and these can be recorded as complete change histories through the issuance of ECRs (Engineering Change Requests) and ECNs (Engineering Change Notices), becoming the basis for future generations of product improvements. Additionally, if customers frequently request changes, iTEC ERP provides RD batch change operation tools, initiating ECN changes from the source, and automatically generating corresponding change orders through the system tools, including purchase change orders, production change orders, and subcontracting change orders. This process is also referred to as an end-to-end automatic change operation."