OpenBOM Webinar #31 : Design to Purchase (Part 1)

Part I: The Basics
Steve Hess
Director of User Experience, OpenBOM
stevehess@openbom.com
October 14, 2020
© OpenBOM, 2020 (Newman Cloud Inc.)
Design through Purchase

Webinar basics
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Please type questions in the chat window or send to support@openbom.com
We will publish a recording of the webinar following the event
I will share this deck with the playback.

Preparation
We will be using the OpenBOM Demo data set
Go to your OpenBOM Help menu and copy in the Demo Data

Definitions:
A Bill of Material (BOM) is a list of the raw materials, sub-assemblies, intermediate
assemblies, sub-components, parts, and the quantities of each needed to manufacture a
finished product.
Catalog: A list of Items used by your company to make your products. Often called an
Inventory or an Item Master, this is a list of parts and sub-assemblies and associated
information needed to put your final product together.
Item: an individual part numbered thing in OpenBOM. May be a part, or assembly, or labor, or
a length of pipe, or any else anything which can be individually referenced by a part number.

OpenBOM - Work and Data flow

OpenBOM - Purchasing Flow
Catalog
- Part Number
- Quantity on Hand
- Vendor
- (more data)
BOM
(1 assembly unit)
- Part Number
- Quantity
- (more data)
Order BOM
Planning (# of units)
- Part Number
- Vendor
- Required Quantity
- QOH
- Required Gap
- (more data)
Purchase Order
(by Vendor)
- Part Number
- Required Quantity
- (more data)
Manual create
Import from Excel
Import from CAD
Manual create
Import from Excel
Import from CAD
Generated
automatically based
on # of units of the
BOM
Generated
automatically from
Order BOM
Export to QB online
© OpenBOM, 2020 (Newman Cloud Inc.) Confidential Information

Planning Basics
● The Catalog is the Item Master - each Item has an entry inthe Catalog, the items
information flows from the Catalog.
● The BOM denotes the Usage - the BOM, actually any BOM, identifies the items needed
to construct A SINGLE UNIT of a particular product and importantly how many of each
item are required.
● The Order BOM scales all the item quantities based on the Order size. If we need 11
wireless routers, the Order BOM represents 11 X the Unit BOM.
● The Purchase Order represents ALL THE ITEMS from a single vendor needed to build
all of the units in the Order BOM.

Case Study - The Wireless Router
Take a router through planning and an order
→ Prepare a Vendor List
→ Create a Catalog of our companies router parts (Items)
→ Assign Vendors to Items
→ Take an order for 11 routers
→ Create POs based on Quantity requirements (gaps)

Lesson #1 - Create a Vendor List
1. Go to the Vendor Dashboard
2. Click “+”
3. Create a vendor list called “Webinar #31 - VL”
4. Start typing (or paste in from your Excel spreadsheet)
5. Vendor Names must be unique
6. Open Approved Vendor List and Copy/Paste into your new
list. Be sure to add blank rows first.
You will have something like this. The highlighted column (Vendor
Name) is the value used to identify the Vendor in future operations,
all other properties are for reference only.

Lesson #2 - Prepare our Item Catalog
1) Open DEMO - Solidworks Items Catalog
2) There is more info on creating a Catalog here:
3) Let’s prepare this Catalog for Purchasing
a) Browse to be sure Quantity on Hand values are
correct, for this lesson we’d like to have some high
values so we can see what happens when we have
enough on hand vs. when we need to order.
Quantity on Hand is required.
b) Also, add Cost for each Item if needed
c) Finally, you may add other properties as well
Demo - Solidworks Items Catalog

Lesson #3 - Specifying Vendors for Items
Vendors are assigned to Items in the Catalog so that whenever an
Item is used in a BOM, it already knows the Vendor (there is a more
advanced method of alternate vendor, we will deal with that in Part II of this
webinar)
1) Open the Demo - Wireless Router-D3 Catalog
2) Click “Set Vendors” in the toolbar
3) Choose the Vendor List we created in Lesson #1
4) Vendor and Preferred Vendor property columns appear in
the Catalog
5) Go down the list and choose a Vendor for each Item. You
may use type ahead, ribbon drag/copy, copy-paste, etc, to
fill them in.
6) FInally, you will have this. Ignore Preferred Vendor for
now, we will deal with in Part II webinar.
7) Our Catalog is looking good for now.

Lesson #4 - BOM
In this webinar we are going make a copy of
the Demo BOM of the wireless router to use
as our BOM.
1) Go to the OpenBOM Dashboard
2) Select Top Level BOMs
3) Select (do not open) the Demo -
Wireless Router BOM
4) Click Copy BOM icon to make a Copy
5) When BOM Opens, click the edit
Pencil and
6) Give the new BOM Part Number of
WR31 and WR31 to the Name
7) Click “Update BOM” to Save
8) Now we have our own BOM ready for
Purchasing

Lesson #5 - Creating Order BOM
We received an order for 11 of our wireless routers. So we
need to create an Order BOM
1) From the Dashboard
2) Open the WR31 BOM
3) Click Order BOM (#1)
4) Click “Add” (#2)
5) Specify the number of units and a note and Save (#3)
6) The Order BOM is created in the Production Orders
area as shown
7) Click the Link (#4) to open the Order BOM

Lesson #5 - Reviewing the Order BOM
Order BOMs are saved in the Order BOM Dashboard area
1) OpenBOM creates the Order BOM and does all the
calculations for the # of units.
2) Quantity Gap is the shortage based on QOH
3) Other calculations for the batch are shown
4) After review click Create Purchase Orders (#5)

Lesson #6 -
Purchase Orders
Items are grouped by
Vendor.
Individual Vendor
Purchase Orders are
created and saved to the
Purchase Order
dashboard by Order
Number and BOM Name

Lesson #7 - Review and Export Purchase Orders
Prepare a PO for the Vendor
1. Open one of the PO’s. It will look very similar to an
Order OBM except it will only have items identified
with that Vendor.
2. Choose Export to send to a Spreadsheet or PDF.
a. Select a few properties to include on the PDF
b. Remember Quantity Gap is the actual order
quantity so be sure to include it.
3. Export to PDF

Lesson #8 - PDF of Purchase Order
Prepare a PO for the Vendor
1. Open one of the PO’s. It will look very similar
to an Order OBM except it will only have
items identified with that Vendor.
2. Choose Export to send to a Spreadsheet or
PDF.
a. Select a few properties to include on
the PDF
b. Remember Quantity Gap is the actual
order quantity so be sure to include it.
3. Export to PDF
Note: the Company Logo comes from your OpenBOM user
profile

Review
The Design through Purchase process is a series of operations in OpenBOM
1. Create a Vendor List
2. Prepare a Catalog of Items (from CAD, or import, or by hand, etc) and assign the
Vendor List. Specify the Vendor for each item in the Catalog.
3. Create a BOM of your product and assign the Catalog
4. Get an order from a customer and create an Order BOM
5. Create Purchase Orders
6. Open individual POs from the dashboard
7. Export as Excel or PDF, or send to your ERP or Quickbooks

Troubleshooting the process
● Most problem originate from the Catalog
○ Be sure QOH, Cost, Part Numbers are correct
● Duplicate part numbers, even in different Catalog, can be a source of trouble
● Be sure you have the proper Vendor List assigned to the Catalog
● Be sure you have the correct Quantity on Hand
● Be sure you do NOT have Quantity in your Catalog, that goes in the BOM only
● Once you ship an order, be sure to “Release” the Order BOM. There can only be
one active Order BOM per BOM (more in part II)

References
Order BOMs 101: https://www.openbom.com/blog/openbom-101-order-bom-and-purchase-order
OpenBOM Blog: https://www.openbom.com/blog/openbom-design-to-production-process-advanced
More about Importing ML BOM https://www.openbom.com/blog/new-multi-level-bom-import-from-a-single-spreadsheet
OpenBOM Webinars https://help.openbom.com/webinars/
OpenBOM Basics https://help.openbom.com/get-started/understand-openbom/
OpenBOM Help https://help.openbom.com/ - a great place to start
Internet Search OpenBOM Design to Purchase

Questions / comments ?
Please send to support@openbom.com or use the Support feature in OpenBOM

OpenBOM Webinar #31 : Design to Purchase (Part 1)

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OpenBOM Webinar #31 : Design to Purchase (Part 1)