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Use case 1: High-tech electrical equipment industry
– 150% BOM/BOP in response to market fluctuation
We had a conversation with our customers two years ago, many of them responded that " they understand the need for BOP, however they have not reached to the point where BOP is necessary to implement." However, as far as we know that this industry has shown cutting edge developments in recent years.
Specifically, in case of planned mass production products for consumers, there are companies that have introduced "150% BOM/BOP" in the upstream process of manufacturing and have also started to work in the ultimate mass customization that connects the data to SCM, MES, and even production lines in a data-driven manner, in order to detect severe demand fluctuations quickly and minimize time-to-market
"150% BOM" refers to a BOM that covers the information on all variations such as parts used, color, and options in addition to the “100% BOM”, whereas standard BOM per product is. In contrast to the 150% increase in E-BOMs listed with all parts, M-BOM with auxiliary materials for production will also be converted to 150%, in line with 150% E-BOM listed with all parts. In addition, the BOP, which is also known as production process chart, will be prepared as, "150% BOP" (master BOP) that can manage all combination patterns of these "150% BOMs".
As a result, when trend of demand for a specific combination through SNS is captured, then, narrow down the BOM and BOP of a specific combination pattern to “100% BOM and BOP”, and start production by connecting data to SCM and MES at once, quickly launch the product to market to realize an approach that can meet the sudden needs.
The concept is close to the BTO (Build to Order) method which is used in the use case of PCs and apparel. However, starting from digital marketing that forecasts demand from SNS, it enables data-driven and flexible production systems by connecting the data seamlessly from the top stream to SCM, MES, procurement, and production line through BOM and BOM in the process from order to production. In addition, we believe that the most advanced approach is to optimize the speed by adding the concept of "150%".