Friday, 27 February 2009

BOM - Bill Of Materials


today we would like to tell you about our new solution that we created to provide you with a simple and available instrument to calculate the production cost of your products.

Quite often working with small “factories” we faced the situation when the factory owners could not tell us the exact production cost per unit for the goods they produced. It was a pity situation since the pricing policy is totally distorted in this case. And in addition the management had no idea about the rate of use of the resources, about inefficiencies, about additional opportunities etc.
Therefore, we created this very simple, intuitive, and powerful tool to manage the hierarchy of products – the Bill Of Materials.

By means of this tool you can:
- Define multiple parent-child relationships between your raw materials and components which are made of them (different components can be done from the same raw materials)
- Define the process time for the raw material to become the component (in minutes)
-Define the amount of raw materials needed to produce one unit of some component
- Define the acquisition cost per one unit of raw materials
- Define fixed costs (labour, energy, administrative, other) which are then allocated to the products and components based on their process time
- Visualize and navigate the hierarchy of your materials
o Drill down
o Drill up
o Refresh
o Display only raw materials
o Redisplay all
- Change the visualization mode from table to hierarchy (or tree) with different indentation types per elements

Below you can see the working example of the BOM application:

The application is freely available on our web-site WWW.YRIVER.IT in the chapter OUR PROJECTS where you can also find out how else we can make Excel work for you.
Download it BOM.ZIP.
Feel free to contact us if you have any ideas, suggestions and proposals.

Best wishes from YellowRiver,
Valera :)

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