Although the engineering department may create a Bill of Material for a functional component of a design, the Bill of Material is never manufactured as a sub-assembly in production, but rather as part of the final assembly process. A Phantom Bill of Material is a Bill of Material that is used in this way. The following is a definition from the APICS Dictionary: A coding and structuring technique for bill-of-materials used largely for temporary (non-stocked) subassemblies. A phantom bill of material is a physical object that is built but rarely stocked before being employed in the following phase or level of production. MRP logic can now drive requirements directly via the phantom item to its component. This method also makes it easier to employ standard bills of materials in engineering and manufacturing. Blow-throughs, transient bills of material, and pseudo bills of material are all terms used to describe phantom bills of material. Most ERP systems need the creation of a “Phantom Item” and a “Phantom Bill of Material” for that item. After that, the Phantom Item is added to a Bill of Materials. When MRP or a production order is run, the system “blows through” the Phantom Item and only plans for the components in the Phantom Bill of Material. Most ERP systems need the creation of a “Phantom Item” and a “Phantom Bill of Material” for that item. After that, the Phantom Item is added to a Bill of Materials. When MRP or a production order is run, the system “blows through” the Phantom Item and only plans for the components in the Phantom Bill of Material. Phantom Bills of Material are handled differently (and in our opinion, better) in Dynamics NAV. When we look at a bicycle Bill of Material, we can see that the Bill of Material includes a front and back wheel.
Figure 1 :
A front and back wheel are included in a bicycle’s bill of materials. When we generate a Production Order for a bicycle and look at the component list, we can see that the front and back wheels are required for the bicycle to be manufactured. The technique assumes the front and rear wheels were previously assembled as sub-assemblies. When creating a Phantom Bill of Material in Dynamics NAV, choose “Production BOM” as the option when entering the line for the sub-assemblies.
Figure 2 :
Creating a fictitious Bill of Materials For both the front and back wheels, we’ve chosen Production BOM as the type of line.
Figure 3 :
The “Production BOM” setting has been applied to the front and back wheel sub-assemblies. We refreshed the Production Order, and now we notice that the front and back wheel Bills of Material have “burst through,” and just their components are required when we look at the component lines. When the bicycle is created, it will not use pre-assembled front and back wheel sub-assemblies; instead, they will be assembled as the bicycle is made.
Figure 4 :
Refreshing the Production Order reveals the required components for the front and back wheels. It is not essential to create “Phantom Items” while dealing with Phantoms in this manner. A Bill of Material in Dynamics NAV can be used on its own and is not required to be coupled with a parent item. This strategy also allows you to run the factory lean by not pre-assembling sub-assemblies, but if a service replacement part is required, it may be manufactured without adding new and needless items to the system. Please contact Addend Analytics for further information on various Dynamics NAV costing topics. For additional practical guidance on utilising Microsoft Dynamics NAV, see previous Addend Analytics “How To” blogs.https://www.youtube.com/watch?v=PXqFXG4rzXE