A manufactured item requires product structure information defined by a bill of material and optional routing. Bill of material information defines the product design for a manufactured item, and provides the basis for product costing, material planning, material usage reporting, lot- and serial-tracking, and tracking progress through stages of manufacturing. Routing information defines the process design for a manufactured item, and provides the basis for calculating value-added costs, determining capacity requirements, scheduling production activities, reporting actual work performed and unit completions, and tracking progress of production activities.
The concept of a master bill and a master routing are used to define product structure. Each master bill has a unique identifier (termed a production BOM number ) and specifies material components . Each master routing has a unique identifier (termed a routing number ) and specifies operations. The master bill and routing are defined independently from any parent item, and their identifiers are subsequently assigned to items to define product structure. This approach is different than directly defining a bill and routing for a manufactured item. It is especially applicable for items with the same process design or the same drawing number, and for handling phantoms used in multiple products. The master bill and routing represent company-wide information.
Each manufactured item and its components must be defined in the item master. Item master information for purchased material was covered in the previous chapter. The item master information that uniquely applies to a manufactured item provides the starting point for further explanation