Bill of Critical Materials (cprpd3120m000)

Use this session to define a bill of critical material (BCM). A bill of critical materials indicates the components that are regarded as critical during the production process of an item. The BCM is a kind of summary of the production bill of material (BOM) that contains only the important components, that is, the relationships between a plan item and its critical items. The BCM is based on the bill of material if the item source is Job Shop and on the production model if the source is Repetitive.

Field Information

Plan Item

The plan item for which you want to generate a bill of critical material (BCM).

Sequence Number

The number that identifies the unique relationship between the plan item and critical item shown on this line. The number is the critical BOM equivalent of a production BOM position number. LN automatically generates this number.

Critical Item

Enter the Critical items that you want to relate to a plan item.

The critical item and plan item must be on the same plan level in the aggregation relationship.

Note: The critical item must itself be a plan item, and must have the order system Planned.

Quantity Required

Enter the quantity of the required critical item to produce the main item.

Quantity Required

The inventory unit to express the required quantity.

Quantity-Dependent

If this check box is selected, LN takes quantities into account when it explodes the bill of critical materials. The quantity that results from the dependent demand explosion is the product of the forecasted amount of parent items and the value that you specified in the Quantity Required field.

If this check box is cleared, LN treats the quantity as a fixed quantity in each explosion. The quantity that results from the dependent demand explosion is the quantity that you defined in the Quantity Required field.

Lead-Time Offset

Enter the lead-time offset for the critical item.

The lead-time offset is the total number of working days of the production process. It is calculated from the stage in which the relevant critical material is needed, to the final stage of the production process.

The lead-time offset can be considered as the difference between the requirement date and the moment of time at which the critical material is needed.

Offsetting logic bill of critical materials

LN takes into account the parent/child relation when it generates dependent demand for critical components. When you carry out the Generate Master Planning (cprmp1202m000) session, Enterprise Planning performs the following steps to compute dependent demand for critical components:

LN offsets the lead time of the parent item to the plan periods, and divides the forecasted demand to the plan periods.
LN rounds the forecasted quantities that it found in step one according to the unit set that you defined for the item in the Items (tcibd0501m000) session.
During the next step, LN multiplies each BCM quantity by the total of the parent item for each plan period.
LN rounds the critical components to the unit set that you defined for them in the Items (tcibd0501m000) session.

The major advantage of this offsetting method is that LN always plans a multiple of the BCM quantity for each plan period, so that you do not have to wait to produce the parent item until the production plan for all the periods over which the dependent demand is spread, is executed.

Note: LN takes the network routing (routing for phantom items) into account when it calculates the lead-time offset.

Warehouse

The warehouse from which the critical item is delivered.

Effective Date

The date from which the relationship between the plan item and the critical item is valid.

Expiry Date

The date after which the relationship between the critical item and the plan item is no longer valid. If no date is given, the relationship is valid on any date after the effective date.