Optimizing Bill of Materials (BOM) Applications in Life Sciences ERP

One of the most valuable tools in medical technology, pharmaceutical and life sciences manufacturing is the Bill of Materials (BOM) – a comprehensive, detailed list of all materials and components required to assemble a product.

As markets and regulators push for more speed and innovation, while requiring increasingly detailed controls and accountability, manual and disconnected BOM processes will have a hard time keeping up.

Bill of Materials software enables manufacturers to more easily and accurately create and edit BOMs, aiding in everything from compliance to purchasing decisions, inventory management, quality, production, delivery and even sales.

In this article, we’ll explore the role and importance of digital BOMs to the life science industries, as well as best practices for optimizing their use.

Contents

What is a Bill of Materials?

BOM as part of ERP software

Best practices for bill of materials management

QT9 ERP Bill of Materials software

What is a Bill of Materials (BOM)?

Every product, whether simple or complex, begins with a thorough plan that details the materials and components required to bring it to life. This plan is called a Bill of Materials (BOM) - a comprehensive list of all the raw materials, components, assemblies and subassemblies, along with instructions, that go into the manufacture, assembly or repair of a product.

Using a hierarchical structure, a BOM provides detailed information about every part and step required to create the final product, with the finished product at the top and the individual components and raw materials populating the bottom levels.

Key elements of a BOM

Part Identifiers: This can include the part name, number or other unique identifier for each product component.

Descriptions: BOM descriptions are brief explanations of a part or assembly that reinforce identification, such as size.

Quantities: Quantities define how many of each part are needed for production.

Unit of Measure: This specifies in what unit of measure a part should be purchased or produced, such as gallon or meter.

BOM level: This is usually a unique number indicating where each part or assembly fits in relation to other assemblies and the final product -- its place in the BOM hierarchy. Very simply illustrated: a ball bearing (3) is part of a wheel assembly (2) that is part of a roller skate (1).

Routing: The routing indicates at which point in the manufacturing process the material is needed

Procurement Type: Procurement type indicates whether a component is to be purchased, produced internally or manufactured by a third party.

BOM as part of ERP software

One of the most powerful applications of BOM software comes with integration to an Enterprise Resource Planning (ERP) system like QT9 ERP. This integration creates a seamless flow of information across departments, driving efficiency and accuracy throughout the manufacturing process.

Key benefits of ERP BOM software:

• Unified data: By integrating BOMs with ERP systems, manufacturers create a single source of truth that connects product design, inventory, procurement and production data.

• Streamlined procurement: ERP systems use BOM data to generate purchase orders for required materials, ensuring timely procurement and avoiding production delays.

• Enhanced production scheduling: With BOM data integrated into the ERP system, production schedules can be optimized based on material availability and manufacturing capacity.

• Real-time tracking: ERP systems provide real-time visibility into BOM-related processes, such as inventory levels and production progress, enabling proactive decision-making.

• Improved cost management: By combining BOM data with ERP financial tools, manufacturers gain better control over costs and profitability analyses.

Manual BOM vs Digital BOM

Best practices for bill of materials management

When leveraged effectively, digital BOMs can act as a hub for purchasing, MRP, traceability, and compliance management. Below are some best practices for getting the most out of BOM applications in ERP software.

Centralize product data

Use your digital BOM as the core database where product hierarchies, raw materials, assemblies subassemblies and packaging specifications are stored. Maintaining product definitions in multiple, disconnected applications or spreadsheets creates risks of miscommunication and costly errors. By centralizing BOM product structures within your ERP platform, organizations can ensure single-source-of-truth product lifecycle management (PLM).

Standardize revision controls

Create procedures for BOM changes, including review and approval processes, as well as a system for communicating BOM changes. Every adjustment to a product structure, whether substituting a component or updating packaging, should trigger automated notifications, validation checks and audit trail entries. This ensures full traceability and regulatory compliance across the entire product lifecycle.

Integrate quality processes

Embed QMS workflows into your ERP system. QT9 makes this easy with streamlined, native connectivity to QT9 QMS. Link corrective and preventive actions (CAPAs), nonconforming products, calibrations and more directly to product data.

This integration helps manufacturers demonstrate compliance and reduce the risk of recalls and regulatory penalties. Integrating quality checks directly into product data ensures nonconformances are detected and resolved before products move downstream.

Connect supplier data

BOMs provide valuable information that can be used for inventory planning, cost estimation, supplier communications, production efficiency and traceability. Use multi-level structures within BOM software to connect suppliers, materials and subassemblies across tiers. Incorporate supplier data, lot numbers and expiration dates to strengthen traceability.

Use to improve collaboration

In many business environments, silos between departments often slow innovation. ERP software makes it easy to provide cross-functional access to BOMs. Engineers can view cost implications of design choices, manufacturing teams can verify inventory and quality teams can review compliance needs in real time. This cross-department collaboration accelerates product launches while reducing costly redesigns.

Link lot and serial traceability

Integrate ERP product data with lot tracking and serial number control. This allows manufacturers to trace every component back to its origin, verify compliance with supplier qualifications and respond quickly to quality events. Such traceability is especially valuable for UDI (Unique Device Identification) and where serialization mandates are enforced.

Leverage analytics

Implement advanced reporting and business intelligence dashboards tied to product data from your BOM. Use predictive analytics to forecast potential supply chain disruptions, identify compliance gaps and optimize production scheduling. These insights are invaluable in balancing innovation with compliance.

QT9 ERP bill of materials software

Bill of Material software that integrates all product lifecycle activities enable manufacturers to more efficiently achieve design and production goals by simplifying and streamlining the creation and management of BOMs.

When integrated with ERP systems, BOM software becomes a powerful tool, enabling real-time collaboration, streamlined operations and better decision-making.

QT9 ERP is a comprehensive enterprise resource planning system with a BOM solution that works for all phases of the product lifecycle. QT9 BOM features include:

• Multi-level capability
• Unlimited BOM revisions
• BOM change approvals
• Customizable fields
• Linking capabilities
• BOM cost evaluation
• Ability to import BOMs or create from scratch
• Remote access
• Easy integration with QT9 QMS

QT9 ERP is an end-to-end solution, with more than 17 modules as part of its standard offering, as well as easy access to data and analytics to help manufacturers make the best decisions for moving forward.

With QT9 ERP you get:

• Unlimited Bill of Materials
• Quick implementation
• Tailored customer support
• Customer, compliance, supplier and physical inventory web portals
• Lot and serial number inventory control
• Access to digital business intelligence and analytics

QT9 ERP works for any size company, in any industry, improving efficiency and accuracy through integrated data and automated operations, all without breaking the bank.

QT9 ERP also offers electronic batch record (eBR) and device history record (DHR) applications to address the needs of life sciences companies. Our ERP system lets you configure processes to best meet your needs and is highly scalable, so you can implement at your own pace.