ERP BOM Functionality

Understanding Multi-Level BOM Management in Peacksoft ERP

Introduction

The Bill of Materials (BOM) is the foundation of all manufacturing processes. It defines the structure of a product, from raw materials to finished goods. Peacksoft ERP provides a multi-level BOM framework that connects engineering design, production planning, and manufacturing execution seamlessly.

Types of BOM in ERP

1. Design BOM (Engineering BOM - eBOM)

The Design BOM represents the product as conceived by engineering. It originates from CAD systems and includes components, part numbers, and design specifications. It’s primarily used by R&D and design teams.

Purpose

Defines the product structure as designed. Acts as the base document for manufacturing BOM creation.

Features

  • CAD integration and revision tracking
  • Supports Engineering Change Orders (ECO)
  • Alternative and substitute component management

Example

Design of an air conditioner showing compressor, coils, sensors, wiring — each with version control.

2. Production BOM (Manufacturing BOM - mBOM)

The Production BOM reflects how the product is actually built on the shop floor. It includes all materials, sub-assemblies, and consumables required during manufacturing. This BOM type is linked directly with routing and work centers.

Purpose

To plan and execute production orders, track material consumption, and monitor WIP status.

Features

  • Linked with production routing and operations
  • Supports batch and serial control
  • Tracks consumables and by-products

Example

Assembly of a washing machine including motor, drum, casing, and wiring kits per production line.

3. Phantom BOM

Phantom BOMs are used for sub-assemblies that are not stocked separately. They simplify production by collapsing intermediate levels and are ideal for modular manufacturing or kit-based assemblies.

Purpose

To avoid unnecessary inventory for temporary sub-assemblies and reduce BOM complexity.

Features

  • Explodes into parent BOM during planning
  • No inventory transaction or stockkeeping
  • Used for kits or grouped materials

Example

“Starter Kit” used in manufacturing an appliance, automatically broken into child parts during MRP.

4. Planning BOM (pBOM)

The Planning BOM helps production planners and the MRP system to forecast material requirements. It combines similar product variants or substitutes for high-level demand estimation.

Purpose

Used for aggregate planning, material forecasting, and variant management.

Features

  • Consolidates product variants
  • Speeds up MRP and capacity simulation
  • Improves purchasing coordination

Example

Forecast BOM for “Smartphones” grouping multiple models using same display and chipset.

BOM Lifecycle Flow in Peacksoft ERP

Design BOM → Production BOM → Phantom BOM → Planning BOM represents a continuous flow of product data from engineering to planning to manufacturing execution. Peacksoft ERP’s version-controlled multi-level BOM ensures full product traceability across departments.

  • Version control with effective dates and revision tracking
  • Automatic conversion of eBOM to mBOM via Engineering Change Orders
  • Support for multi-level sub-assemblies and cross-plant BOMs
  • Dynamic BOM explosion for real-time MRP and APS simulation

Benefits of Peacksoft ERP BOM Management

  • Accurate cost calculation and resource estimation
  • Streamlined engineering-to-manufacturing handoff
  • Improved material planning and inventory control
  • Support for customization, variant configuration, and design changes
  • Better synchronization with supply chain and procurement

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