Achieving Inventory Accuracy: A Guide to Sustainable Class A Excellence in 120 Days

In addition to inventory location balance accuracy, it is essential to have accuracy in other records used to plan inventory flow and availability. Two such examples are bills of material and routing records. Although it is not the intention of this book to cover all aspects of data integrity requirements, it is proper to include a short discussion on these because they have such a big impact on planning material availability. These factors can also impact inventory accuracy.
Bills of material (BOMs) are the recipes for the manufacturing process. They also are the records to drive proper assemblage of components for kits in a distribution environment. There are several components of accuracy in BOM records:
Part number accuracy of parent level
Part number accuracy of all components
Unit of measure accuracy and consistency
Quantity per part accuracy
BOM structure as it compares to the actual process
The secret to a good accuracy process as it relates to BOM records is simple. There are three applications of BOM records and they all need to be in synchronization. They are:
What the computer record shows as the BOM
What the drawing or specification calls out as the BOM structure
What actually is done on the factory or warehouse floor (see Figure 12-1)
Figure 12-1. BOM record accuracy process.
When all three of these files are matched, the result is an accurate BOM record that can be used to manage change in the product, flow inventory, and...