How to Run a Production BOM

• A Production BOM is added to a product and defined from the product details screen (Inventory → Products → [selected product]). 
• NOTE: Before adding a Production BOM to a product, the component products must already be created in DEAR. Resources and Work Centres must be defined in the Production Settings. 
• NOTE: Costs for components are estimated on the BOM screen from the Average Cost (an average of all purchase costs for this item). Sometimes this can lead to costs being estimated wrong on this screen, or displaying as 0 (e.g. if there was no last purchase price in the system). This will not make the production incorrect. See Resources for how costs are calculated for resources.
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• The actual cost of finished goods will be calculated using the costing method of each individual component allocated to an assembly. Actual costs associated with finished goods can be viewed using the Finished Goods Analysis Report.

1. Select Production BOM from the Bill of Materials drop-down list in the product document header.
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3. This will activate the Production Bill of Materials tab below where the Production BOM can be defined. 
4. Enter the product output quantity and manufacturing buffer time (coming soon). You can optionally include a URL for assembly instructions.
   • Example: We are making a Production BOM for a Chair. The Production BOM defines the resources and components required to make 1 chair.
5. You can either add a new Production BOM to a product or clone an existing Production BOM (see below). Adding a new BOM will add the operations and its resources/components one by one.
6. Press the +Operation button to start. An operation is a single step in the production process.
   
   
7. Enter the operation Name, Cycle Time and Units per Cycle for the first operation. You can edit the operation sequence if required; by default, the field will be filled with the next number in the sequence. Operations that take place simultaneously should be given the same sequence number.
8. Select a Work Centre for the operation. 
   • Example: The first operation in our Production BOM is Fabric Cutting. The operation cycle time is 1 hour – it takes 1 hour to cut enough fabric. The units per cycle value is 1 – enough fabric is cut for 1 chair. 
9. Next, it is time to add components and resources for this operation. Click Add more items next to the operation number to open the components and resources table. The Operation should contain at least one Component or Resource.
10. First, select the Type of the entry. This can be a Component, Resource, Note or Attachment. 
    • Notes have a limit of 200 characters. 
    • Attachments have a limit of 32 MB. 
    • Component can be a simple product, an assembly product or a production product. 
    • Resource (e.g. tools, machines, people) must be defined in order to be selected.
11. Enter the other grid fields (SKU, Quantity, Wastage %/QTY if the Type is Component; SKU, Quantity if the Type is Resource). See Production BOM settings below for a detailed explanation of each field. 
    • NOTE: Position of Production BOM elements can be changed by dragging and dropping each line.
12. Once the operation is complete, click Add operation to add the next step – repeat until the Production BOM is defined.
13. Save your changes to finish.

Total Cost is a read-only field that will be automatically calculated from the approximate cost of resources and components required for the operation.

• Average Cost (an average of all purchase costs for an item) is used on the BOM page to estimate component costs. The actual cost of finished goods will be calculated using the costing method of each individual component picked for production. Actual costs associated with finished goods can be viewed using the Finished Goods Analysis Report.
• Resource costs are taken from the sum of all service products assigned to each resource.