In manufacturing and Beas, breakdown or explosion is the action of breaking apart the Bill of materials for each assembly or sub-assembly into its components. Differentiating between make-to-stock and make-to-order items helps in defining a production strategy. It also defines a combination of scenarios on production planning and execution processes.
The breakdown Variant is defined in Item Master Data > General tab > Manufacturing Data > Breakdown.
Note on APS: If no Breakdown method is defined, the item will not be considered correctly in the APS calculation.
Used when the item is a general purchase item, which normally has no bill of materials attached to it. Therefore, this item is considered as a purchase item. In work orders for finished goods with mode of procurement set to buy, Beas considers all BOM positions as purchase items and suggests to create a purchase order, in case there is not enough on stock of that item.
Example: If you buy an engine from a supplier, and it always comes with a can of motor oil and a gallon of coolant. In this situation, you still need to keep track of how many cans of motor oil and gallons of coolant you have on inventory.
The Provision parts option is used to define these types of item. This option allows to insert additional items in the bill of materials list so at the moment the goods receipt is issued for the purchase order, Beas suggests and completes the goods receipt for the existing provision parts.
For Buy items, MRP generates purchase order recommendations. For Produce items, MRP generates production order recommendations.
Limitation in MRP:
Beas does not calculate MRP Sub-assembly requirements for items defined as "Provision parts".
Assemblies can be produced order-related, when the respective option was selected in BOM item > breakdown.
The setting has no effect when the work order is created by the calculation functionality. The possible settings are:
- No: No work order positions will be created for the semi-finished goods
- Always: Works exactly like order-related semi-finished goods
- Only shortage: Creates order positions only if there is not enough inventory
In order recommendation report these assemblies will still be created as stock-related assemblies.
This is an assembly that is produced by order, that is:
The sub-assemblies are produced together with the main assembly.
Note: Only order-related!
•You can define a configuration in the Sales order.
•You can define a short variant in the Sales order.
•You can create a precalculation in the Sales order and can change the substructure inside the precalculation. You can use the definition in precalculation for order-related work orders.
•You can create an order-related work order.
•You cannot plan stock in MRP.
•You cannot use the produced assembly for another order in a simple way.
This window has order-related view. You can create work orders directly and only see entries that do not have enough production orders. Here the system ignores the stock because of the order-related view:
Example: You produced an order-related finished goods, but the customer canceled the order.
Now the item is on stock.
If you have a new sales order with the same product, you can define the quantity which you want take from stock in Sales order > column "Withdrawal from Warehouse" .
Note:
Use this functionality only for special cases. This is not the idea of order-related production.
Use Order related Semi-Finished products if you want to produce this item only for an order or stock-related finished product.
You can produce the order-related Semi-Finished product as Finished product for a sales order, but not on stock.
In MRP you can see the requirements for Semi-Finished product, but normally this does not change the balance.
In the following example you can see the Semi-Finished product "SFP_B_O", which is part if Finished Product "FPS_B_O"
In the Finished Product the Semi-Finished product is defined as a Bill of Materials position.
This example produces the following work order:
Inside the semi-finished product you can insert additional semi-finished products. Beas supports max. 20 levels.
Recursion: If you insert the same order-related item as Bill of Materials, the system does not break down this order-related semi-finished product. However, it is possible to create a recursive structure.
For the following order related work order, the MRP displays the reservation. As it is an order-related work order, the balance of the reservation is neutral (we porduce 5 which fulfills the sales order -5).
WO:
MRP:
The quantity of the work order is manually increased
WO:
Quantity is manually increased from 5-6.
MRP:
In this case stock is produced (there was originally 0.5 in stock).
The quantity of the work order is manually decreased
WO:
Quantity is manually decreased from 5-4.
MRP:
An additional line is added to produce the additional required piece and this is produced to stock.
If the sub-position is closed and the requirements are not fulfilled, a new work order is created to deliver the rest. This is a storage-related work order.
The Sales BoM represent a finished product assembled at the sales stage, that is, the finished product is composed of its component items only when the parent product is actually sold. The component items are stored and tracked individually in the warehouse.
For both the Sales BoM, you do not manage the parent product as an inventory item, but rather as a sales item. The components can also be sales and inventory items in their own right. When you create the delivery to dispatch the customer order, the components are backflush issued from inventory.
Note
The components for Sales BoMs and Assembly BoMs must be sales items.
The BoM will be defined in SAP Business One Bill of Material window
Use a Sales BoM where there is a fixed combination of components and the customer needs confirmation of each item. The component items cannot be altered or removed from a sales order. Other items cannot be inserted between the parent and component items in the sales order. However, the quantities of the component items can be modified.
Example
Sharon's Garden Ltd. sells garden tools and outdoor furniture. One of her best sellers is the Metal Table set. This set is composed of one metal and glass table, six metal chairs, and one umbrella.
If she chooses the Sales BoM, the table, six chairs and one umbrella, and the Metal Table set all appear in the sales order. She can sell this set with only four chairs, but she cannot introduce a footstool as part of this set in the sales order.
If she chooses the Assembly BoM, then only the Metal Table set (the parent product) is listed in the sales order.
In both cases, each of the component items is tracked individually in the inventory. When you create the delivery to dispatch the customer order, the components are automatically issued from the warehouse.
The Template BoM is a bundle of items, where the parent product is the first item on the list. It does not act as a BoM once it is added to the sales document, but rather as a list of items brought together at the same time. You can update the quantity of those items, swap items, or delete them in the BOM or the sales order. The components appear below the parent as a list of items in a sales document. Use the Template BOM when you require flexibility in selecting components for a product.
Example
Computers can be sold as a standard unit, in which case the Production or Sales BoM is appropriate. However, to customize a sales order, use the Template BoM to allow for DVD burners, speakers, ergonomic keyboards, and so on.
The BoM will be defined in SAP Business One Bill of Material window
