CUSTOMIZABLE SOLUTION FOR MULTI-LEVEL BILL OF MATERIALS

Abstract

The need to cost products, as accurately as possible, is increasing as the pressure to provide good margin and profitability analysis becomes more critical to manufacturers. When engineers want a cost for a product, they generally need to gather data of finance, sourcing, and production overhead. This paper presents an application that allows the engineers to obtain cost of multi-level BOM. The purpose of the Costed BOM application is to offer a way to predict the manufactured cost of an item it accomplishes this by rolling up material, labor and overhead costs from the lowest levels of the BOM. Bills Of Material (BOM) form the nucleus of any product-costing program. Most traditional approaches roll-up a BOM based on the material costs in inventory.