Bill of Materials Efficiency
The Bill of Materials Efficiency Report helps evaluate how efficiently a manufacturing order (MO) is completed compared to its defined Bill of Materials (BOM). It displays details such as the MO number, the item to produce, and the BOM name.
Standard BOM Time is calculated based on the quantity defined in the Manufacturing Order. When the MO quantity is greater than the BOM quantity, the standard time is increased proportionally to match the additional production required.
Actual Operation Time is the real time taken to complete the manufacturing operations for the MO. This includes time recorded on the shop floor and may account for delays, machine downtime, rework, or other operational factors.
Access Bill Of Materials Report
To access the Bill Of Materials report:
- Go to Reports on the left sidebar.
- Under Report Category, navigate to Manufacturing.
- Select Bill Of Materials.
BOM Efficiency Calculation
Example
Patricia runs a furniture manufacturing unit and produces wooden chairs. In the BOM, the item quantity to be produced is defined as 2 chairs and includes two operations: Wood Cutting, which takes 10 minutes, and Assembly & Finishing, with a duration of 20 minutes.
| Operation | Standard Time |
|---|---|
| Wood Cutting | 10 mins |
| Assembly & Finishing | 20 mins |
When Patricia creates a Manufacturing Order for 4 chairs, the MO’s item to produce quantity is higher than the BOM quantity.
| Order Type | Quantity | Operations / Duration |
|---|---|---|
| BOM | 2 | Wood Cutting – 10 min, Assembly – 20 min |
| MO | 4 | Wood Cutting – 20 min, Assembly – 50 min |
The total standard time for producing 2 chairs in BOM is calculated as (Operation
1+ Operation 2) 10 + 20 = 30 minutes.
Adjusted Standard time = Total BOM Standard Time × (MO Quantity ÷ BOM Quantity)/
= 30 (4 /2 = 2)
= 30 / 2
= 60 Minutes.
Therefore the adjusted standard time = 60 minutes
The actual time taken for the MO is
| Operation | Actual Time |
|---|---|
| Wood Cutting | 20 mins |
| Assembly & Finishing | 50 mins |
Total actual time of MO is 20 + 50 =70 minutes
BOM Efficiency Calculation
BOM Efficiency (%) = (Standard Time ÷ Actual Time) × 100
BOM Efficiency = (60 ÷ 70) × 100
= 85.71%
| BOM Efficiency (%) | Result |
|---|---|
| 100% | Indicates that the actual operation time exactly matches the standard BOM time. |
| Greater than 100% | Indicates the job was completed faster than planned, showing higher operational efficiency. |
| Less than 100% | Indicates the job took longer than planned, highlighting possible delays or inefficiencies. |
Since the BOM Efficiency is 85.71%, which is less than 100%, it indicates that the job took longer than the standard BOM time