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Effects of BOM mismatch on procuring material for customized product based companies


Author : Sanket Kedar, Samata Mujumdar, Chetan Patil and Pranav Niturkar

Pages : 140-143
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Abstract

In product companies the lead time of manufacturing is very important as it is the dormancy between initiation and accomplishment of a process. Lead time reduction is an important part of lean manufacturing. Working according to the lead time of the product company to produce optimum amount of products is difficult because of various reasons; one of them is mismatch of bill of material. The mismatch of bill of material causes problems like late procurement of material for production, inventory mismatch, scraping of excess material etc., which are commonly faced by product companies, specially the companies implementing customized product assembly. The mismatch of the bill of material will definitely lead to practices which are deviated from the ideal process flow and will affect the companies’ efficiency to deliver the product on time. The errors caused due to bill of material mismatch can be eliminated to a great extent by studying the reasons and its implications on sourcing department of a company as an error less bill of material can help in executing a proper purchase order and maintaining a good inventory record abiding to the material present in stock.

Keywords: BOM mismatch, material shortages, lead time, Product Company and vendor management.

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