When offering configurable products to customers, present choices in a clear, user-friendly way. Too many options can overwhelm customers, so focus on the most important selections that align with customer needs and your production capabilities.
Configurable BOMs – Simplifying the Production of Customizable Items
Article from | MRPeasy
Configurable BOMs make it easier for manufacturers to plan and manage the production of products with customizable features. Here’s a closer look at how they function and the advantages they offer.
What is a configurable BOM (CBOM)?
A configurable bill of materials is a production planning tool that allows manufacturers to customize products to tailor products to individual customer requirements. By enabling manufacturers to select different options or configurations—such as colors, sizes, materials, or performance features—this tool facilitates the creation of various product versions.
Configurable BOMs eliminate the need for separate BOMs for each variation, streamlining production planning and variation management.
For instance, a laptop manufacturer might use a core BOM for shared components like the chassis, keyboard, and screen, while offering options such as:
- 8 GB or 16 GB RAM
- 2.5 GHz or 3.5 GHz processor
- 256 GB or 512 GB solid-state drive
These three options already allow for eight unique configurations. With a configurable BOM, the manufacturer can manage all these options within a single BOM, automatically generating the correct manufacturing order based on the selected parameters.
Benefits of configurable BOMs
Configurable BOMs offer several advantages that enhance production planning and operational efficiency:
Less data entry
Instead of creating a separate BOM for each product variant, a configurable BOM allows you to enter data just once for all configurations, minimizing the amount of manual data input and the risk of errors.
Simplified BOM updates
When products are updated, you only need to update the configurable BOM once to update all product configurations. This ensures all configurations stay consistent and up to date.
Reduced costs
By cutting down on administrative tasks, reducing manual updates, and minimizing production errors, configurable BOMs help lower costs.
Improved analytics
Managing all configurations in a single BOM makes it easier to analyze trends and monitor the performance of different variants. For example, frequently ordered configurations can be added to the standard product catalog.
Faster sales process
Configurable BOMs enable faster quoting and reduce errors in pricing or component selection. Integrated with an online store, they allow customers to configure products themselves, with orders automatically converted into accurate manufacturing or purchase orders.
Configurable BOM best practices
While configurable BOMs can greatly simplify production processes, following best practices is crucial to achieving the best results.
Use integrated software
Use MRP or manufacturing ERP software such as MRPeasy to manage configurable BOMs rather than spreadsheets or a standalone product configurator. Integrated software automates the process, links directly to inventory and production, and reduces manual errors, making handling complex configurations and large numbers of product variations easier.
Limit unnecessary configurations
Only offer configurations where they add value to the customer or the product. Unnecessary options can complicate production, lead to higher costs, and confuse both the manufacturing team and customers. Focus on offering meaningful variations that meet market demand and standardize your core product as much as possible.
Think the configurations through
Plan configurations carefully by considering the entire production process. Ensure that all possible combinations are feasible from a manufacturing and performance perspective and avoid incompatible options. For example, a computer manufacturer should avoid pairing a high-performance processor with insufficient cooling or a low-capacity battery.
Regularly review configurations
Periodically audit your configurations to ensure they reflect current market trends, material availability, and technological advancements. Remove obsolete options and introduce new ones to keep your product portfolio and your BOMs up-to-date.
Simplify the customer-facing side
When offering configurable products to customers, present choices in a clear, user-friendly way. Too many options can overwhelm customers, so focus on the most important selections that align with customer needs and your production capabilities. In addition, integrate your configurable-BOM-enabled ERP software with your e-commerce platform to link customer orders directly to production planning.
The content & opinions in this article are the author’s and do not necessarily represent the views of ManufacturingTomorrow
MRPeasy
MRPeasy is a seriously powerful and easy to use ERP software for small manufacturers that gives you everything you need to manage your manufacturing and distribution processes. Integrating sales, procurement, inventory, production, finances, and your team, it provides you with an accurate real-time overview of your operations. MRPeasy is trusted by 1800+ small manufacturers worldwide, 700+ of which are based in the US and Canada. Our users report a 54% average improvement in the overall performance of their business and a 42% increase in on-time deliveries. Try for free, no credit card needed.
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