BOM Transfer: Example

BOM Transfer: Example

In this example a turbine we assemble a turbine using a network. We allocate the items from the two-tier BOM to various network activities using BOM transfer.

Item T-20100 is a directly procured material (item category N) with a long delivery time. It is allocated via the reference point PROC1 to activity 3000 "Advance procurement"

_{The sub-items
T-20210, T-20220, T-20230 for the production of assembly T-20200 are to be procured in activity 3100. The reference point PROC2* in the activity is a generic entry, which refers to all reference points in BOM items that begin with PROC2.
Turbine assembly also requires material component T-20300 and T-20400 that are procured using MRP (
item category L) are allocated via the reference point PROC3* to activity 3200.
Assembly Items

Instead of using production orders, the production of assemblies can modeled using
assembly items. You enter the project, the assembly to be produced and the reference point of the activity in which the assembly is produced in the transfer table.
In this example, the assembly T-20200 is produced in activity 4000 with reference point PROD*, and the turbine T-20000 is assembled in activity 5000 with reference point ASSBLY. The system allocates these assembly items with quantity -1 ("receipt from activity") for the finish date of the activity.

Allocation and Material Requirements Planning (MRP)

After you have defined reference points in the BOM and the network activities, and the allocations in transfer control, you execute the BOM transfer allocation program
You enter as selection parameters the project definition, the material T-20000 and set the Multi-level and Preliminary reqmnts indicators. The system allocates the BOM items to the network activities and when the system
activates requirements, it generates reservations and preliminary requirements as follows:
In activities 5000 and 4000 reservations are created for the assembly items T-20000 and T-20200 with quantity -1 in both cases. The "requirements date" is the finish date of the respective activity.

Although the Preliminary reqmnts indicator is set, real requirements are generated for the subordinate components in assembly items in the form of reservations for the activity start date.
As a result, reservations (dependent requirements) are generated for components T-20210, T-20220, and T-20230 in activity 4000. These components are consumed during the assembly of T-20200. However, since these components have a different reference point than the superior assembly, with which they are allocated to activity 3100, preliminary requirements are generated in activity 3100.

In the case of externally procured components these are preliminary purchase requisitions.

Similarly, preliminary requirements are generated for the components, for which dependent requirements are generated in activity 5000 but which are allocated via reference points to other activities. If the components are procured via MRP, the preliminary requirements are planned independent requirements, as in the example for T-20300 and T20400.

As illustrated in the following graphic, the system settles preliminary requirements against the reservations that are generated later. The prerequisite for this is that the material is managed in the same individual stock segment in both activities, i.e. both activities are assigned to the same WBS element.}