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BOM explosion - more transparency and cost savings

What is the bill of material explosion? What is a material where-used list? Is the BOM explosion an SAP add-on? How complex is the implementation? Is a cost calculation comparison possible? These and other questions are answered here.

BOM explosion in SAP ERP?

Solution approach BI platform
Solution approach for the BI platform

In SAP ERP, various transactions (including CS13, CS11, CSK1, CK13N, CK86, etc.) are available for BOM explosion. The disadvantages are the difficult transaction entry, the limited data access and the limited analysis possibilities.

By transferring the data to a reporting environment, data access and analysis options can be simplified and accelerated. The BOM explosion takes the product costing data from the SAP Basis tables, adds the product structure data and combines all data in a clear data model.

What is the BOM explosion?

  • BOM explosion is the key to visualizing and analyzing complete product structures.
  • The various assembly stages are linked to form overall structures from the raw material to the end product.
  • The applications consists of a modern BW HANA data model, which transfers the entire data flow into a reporting layer.
  • BOM explosion allows product costing data to be analyzed in detailed and granular views.
  • The database enables top-down or bottom-up evaluations,
    • Top-down by product level for materials, times, costs, etc.
    • Bottom-up for where-used list of materials, workstation, etc.
  • Numerous additional application examples are conceivable through model extensions.
Idea and concept
Idea & concept: from detail to structure and compression

Advantages: How you benefit from BOM explosion

Easy access

Easy access and overview to the data.

Save time

Time savings through simple handling and reduced effort in data procurement and preparation.

Transparency

Full transparency for costs, material usage and hours spent, across plants.

Comparability

Comparative analyses according to different dimensions (e.g. for the production werk).

 

Selection options

Data selection according to all available characteristics.

 

Information details

High quality information is available and every detail of the product costing data can be visualized and analyzed.

Where-used list

Clear visibility to use material, work center, or other product costing objects in higher-level assemblies or end products.

Extensibility 1

The application additionally enables the extension or creation of new analysis reports, e.g. for work center, where-used list, capacity requirements, influence of material price changes, etc.

Extensibility 2

By linking data sets from other SAP application areas, specialist departments such as controlling, logistics, planning, purchasing, etc. can be elegantly supported.

Direct advantages
Direct advantages
Your contact for the topic of BOM explosion

"With this Reporting-tool and the underlying data model we give our customers a simple and fast way to analyse complex business processes. businessrelationships in theiof the parts lists (production and/or logistics) and this at a high level of detail.. With the correct interpretation of the data and the resultingdecisions considerable cost savings can be achieved.."

Eric Trumm, Head of Data Science and Innovation

    Dr Eric Trumm Portrait
    Dr. Eric Trumm
    Head of data science and innovation

      How long does the implementation process take and what are the individual steps?

      The basic installation with data connection and data model takes one week. Subsequently, the data loading processes and the creation of the product structure dataset are automated, customer objects are integrated and the customer-specific reports are created.

      The following basic evaluations are directly available:

      Calculation versions overview

      Product structure

      Material requirements

      Cost details/cost categories

      Material where-used list

      Are you interested in a PoC?

      The procedure for a PoC (proof of concept) is identical to the productive installation. The activities in the individual steps are reduced, automation is not implemented and the standard reports are generated.

      Procedure:

      Step 1

      ERP data connection

      The BW data target objects (aDSO) are implemented and the SAP ERP base tables are connected for data extraction.

      Step 3

      Process for the product structure data

      The process for generating and linking the product structure dataset is set up.

      Step 2

      Data model and composite provider

      The data model is imported and linked to the created data target objects.

      Step 4

      Integration into the customer's BW system

      The basic installation is adapted to the customer-specific environment, connected to customer objects and the reports or dashboards are created in the desired front end.
      After the implementation is completed, the transport (DEV>QUAL>PROD) takes place.

      Ideas for extensions:

      Ideas for extensions

      Whitepaper BOM resolution

      This article presents a solution for reporting and analysing product costing data (costing) across the entire product structure (view at multiple BOM levels).

      The solution includes views for the product structure by BOM level or for aggregated data. Here, for example, where-used list functions for material (base material or assembly) or the respective activity type of various areas are precisely analysed.

      Cover page Whitepaper BOM explosion

      Further analytics solutions

      More information

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