Best Bill of Materials (BOM) costing is the process in which the costing manager analyzes the costed BOM provided by the Contract Manufacturer for any cost optimization opportunity and works with Global Commodity Manager (GCM) to take an action.
Previously, the costing manager would need to receive a costed BOM, setup a spreadsheet for analysis, identify cost discrepancies or missing costs, communicate with all commodity managers to follow up, track their actions, and consolidate their efforts into a BOM cost rollup, and continuously perform these tasks on each BOM revision. This process as described is manual, time consuming, and error prone.
With Best BOM Costing Automation, a single user action automates all of these manual steps. The system automatically analyzes BOM to determine cost discrepancy or missing cost, creates and assigns tasks to respective commodity managers with due dates, send notifications, monitors tasks and auto-closes them when corrective action is taken on parts and notifies on task closure.
How to Perform Best BOM Costing Action
When you land in the dashboard, click into your program:
Then go to (1) BOM Management for that program and (2) drill into the Revision.
On the right-hand menu above the table, click into the lightning bolt icon and select "Best BOM Costing"
You will be prompted with the question:
If you indicate Yes, you will see two notifications in the top right, once to confirm submission
...and another shortly after that to confirm success.
What Happens During This Workflow?
- The BOM is analyzed to check for two conditions:
- LevaData (LD) Cost is available on the component.
- Contract Manufacturer / Original Design Manufacturer (CM/ODM) provided cost is less than the LD Cost.
- Tasks are created and assigned to the respective commodity manager.
- Email is triggered notifying commodity manager to take actions.
- Tasks are monitored for closure and closed once the commodity manager successfully completes the assigned action.
This automatic analysis and collaborative workflow should speed up the process of cost optimization for the costing manager, who can be sure that the best available component cost is being used when the tasks and actions are completed.