What Is a Materials Management System?
A materials management system, also known as BOM (bill of material) system, is a system that not only manages parts but also manages the bill of materials used to manufacture and manage products, and provides appropriate information related to the parts to various departments.
Depending on the management method, there are two main types of materials management system: integrated materials management system and application-specific materials management system. An integrated materials management system has the advantage that it is less likely to cause discrepancies between departments, since the bill of materials is managed centrally across departments.
However, the disadvantage is that the usage of the bill of materials generally differs from one department to another, making it difficult for certain departments to utilize the system in some cases. On the other hand, materials management system by application have the advantage that the system can be easily utilized in each department because the BOM is created and managed specifically for a particular department. However, since the system does not use a unified bill of materials among departments, there is a risk of inconsistency among departments.
Usage of Materials Management Systems
The main use of materials management system is to manage a bill of materials, inventory status of parts, warehousing history, and ordering status in real time. By centralizing information previously managed on paper or in other systems, materials management system enables efficient management of parts.
BOM is an important document used in various departments, such as design, production, and purchasing. Although the same bill of materials should normally be used across departments, in practice, different departments often use different bills of materials for their own management, resulting in issues such as design changes in one department not being reflected in another department’s bill of materials.
In recent years, manufacturing processes have become more complex, and the use of BOMs across multiple departments has increased, so efficient management of parts and BOMs is required. In many cases, parts and bills of materials are managed electronically in Excel and other formats. However, general electronic management has left problems, such as input errors (e.g., double entry) and design changes that are not reflected.
With the introduction of materials management system, changes to the BOM can be made in real time and can be easily shared by other departments.
Materials Management System Functions
Typical functions of a materials management system are as follows:
1. BOM (Bill of Materials) Management Function
A materials management system can manage BOMs, which has the advantage of clarifying the location and contents of BOMs, and preventing inconsistencies between BOMs when multiple BOMs are used. In addition, existing BOMs can be easily referenced when creating new BOMs.
2. BOM (Bill of Materials) Update Function
When design changes are made, the BOM can be automatically updated based on the details of the changes. This facilitates information sharing among departments and unification of BOM content, especially when changes are managed across multiple departments or when the changes affect multiple BOMs.
3. Inventory Management Function
An actual materials management system can be used to manage actual parts. By linking parts to processes, it is possible to estimate in advance which process each part will be used in, whether parts are in surplus or shortage, and the construction period until completion.
4. Product Management Function
Products can also be managed. By linking products to their respective bills of materials and drawings, it is possible to check parts and drawings by product name.
The functions required will vary depending on how the BOM is managed. Selecting a materials management system after clarifying in advance which functions are important to you will make it easier to implement the system.
How to Select a Materials Management Systems
1. Functionality
Since the way to manage the bill of materials varies from company to company, it is necessary to confirm in advance whether the materials management system has the necessary functions before selecting a system. For example, there are functions such as automatic ordering, inventory control, and warehouse management, etc. It is important to review from the business process point of view which system will be used for the business and which functions will be linked with other systems.
2. Ease of Use
Materials management systems are often handled not only by personnel familiar with the business but also by temporary workers and young employees in some companies. Therefore, we check whether the system has a simple user interface that can be operated smoothly and whether it is accompanied by intuitive operability.