Example production BOM

Example production BOM

We want to create a production BOM for packaged ground coffee. This is a simple, sequential BOM with only one finished products and no inputs or outputs. For more complex example BOMs, see Finished products - Example and Input/outputs - Example.

Preliminary steps

Components

The packaged ground coffee requires the following components. These should be created as products before creating the production BOM

  • Green coffee beans

  • Packaging

The item Packaged roast coffee should also be created as a product, we will add the production BOM to this product.

Resources

We will need the following Resources to produce the coffee. These should be defined before setting up the Production BOM.

  • Labor: General

  • Machine: Grinder

  • Machine: Roaster

Work centers

Our shop floor location has several work centers. These should be defined before setting up the Production BOM.

  • Grinding

  • Roasting

  • Packaging

Setting up the production BOM

Now that the preliminary steps are complete, we can set up the Production BOM for the packaged coffee. We want to include a setup operation and quality control operation.

Define the production quantity

  1. Select Inventory from the main menu, then Products.

  2. Open the product record for Packaged coffee.

  3. Select Production BOM from the Bill of Materials drop-down list in the product document header. This will activate the Production BOM tab below.

  4. Enter our product output quantity of 10kg. We will ignore the BOM settings and version in this example. The components added to this BOM will make 10kg of packaged coffee.

Creating a setup operation

  1. Click + Operation to add the first operation.

  2. Select Setup as the operation Type. Setup operations take the same amount of time no matter how many kilograms of beans we roast.

  3. Name the operation, we will call this operation Calibrate temperature.

  4. Enter a Cycle time and select a Work center.

  5. In this operation, we need a Labor:General Resource and include an instructional Note.

Adding manufacturing operations

  1. Click + Operation again to add another operation.

  2. Select Manufacturing as the operation Type. Manufacturing operations will take more or less time depending on how much we are manufacturing in each order.

  3. Name the operation, we will call this operation Roasting. We can roast 2kg of beans at a time, so as we are producing kilograms of finished product, we produce 2 units per cycle. This requires 5 cycles to roast 10kg of beans.

  4. Enter a Cycle time and select a Work center.

  5. In this operation, we need a Labor:General resource and the Roaster resource.

  6. In this operation we need Green coffee beans as a Component. We need 1 kg of green coffee beans per 1 kg of packaged coffee beans, with a small amount of wastage.

  7. Click + Operation again to add another Manufacturing operation.

  8. Name the operation, we will call this operation Grinding. We can grind 5kg of beans at a time, so as we are producing kilograms of finished product, we produce 5 units per cycle. This requires 2 cycles to grind 10kg of beans.

  9. Enter a Cycle time and select a Work center.

  10. In this operation, we need a Labor:General resource and the Grinder resource.

  11. In this operation we do not use any extra components. Cin7 Core will assume we use what we produced in the previous operation in this operation.

Adding a quality control operation

  1. Click + Operation again to add another operation.

  2. Select Quality control as the operation Type. Quality control operations will take more or less time depending on how much we are manufacturing in each order.

  3. Name the operation, we will call this operation Inspection. We can inspect 10kg of beans at a time, so as we are producing kilograms of finished product, we produce 10 units per cycle. This requires 1 cycle to inspect 10kg of beans.

  4. Enter a Cycle time and select a Work center.

  5. In this operation, we just need a Labor:General resource. We do not use any extra components. Cin7 Core will assume we use what we produced in the previous operation in this operation.

Adding a packaging operation

  1. Click + Operation again to add another operation.

  2. Select Manufacturing as the operation Type.

  3. Name the operation, we will call this operation Packaging. We can package 1kg of beans at a time, so as we are producing kilograms of finished product, we produce 1 units per cycle. This requires 10 cycles to package 10kg of beans.

  4. Enter a Cycle time and select a Work center.

  5. In this operation, we need a Labor:General resource. We also need our Packaging, we need 10 units of component for 10 kg of beans.

This completes our production BOM.

Complete production BOM

This is what the example BOM looks like when finished:

  

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