Do you have control of your automotive MBOM?

Whether you’re a supplier or an OEM, this fictional nightmare probably sounds familiar. If you don’t have control over your MBOM, it can have severe consequences for your organization, including:

• Launch delays: If the MBOM is inaccurate or incomplete, it can lead to launch and production delays as parts may be missing, or the wrong parts may be used.
• Quality issues: An inaccurate MBOM can lead to problems such as faulty components or products that do not meet the required specifications. This can result in product recalls, warranty claims, and damage to the organization’s reputation.
• Increased costs: An inaccurate MBOM can lead to increased rework, scrap, or overtime costs to meet production targets.
• Compliance issues: Automotive manufacturers must comply with increasingly strict regulations and industry standards. An inaccurate MBOM can lead to compliance issues and fines.

Poor decision-making: Without a consistently accurate MBOM, it can be challenging to make informed decisions about manufacturing processes, such as identifying areas for improvement and optimization.

Additional competition, rising demand for electric and autonomous vehicles, increasingly strict regulations, and pressure to get products to market faster are forcing automotive companies who want to succeed to get a better handle on manufacturing processes and data. This includes eliminating data gaps and errors created by disconnects between engineering and your supply chain. By taking control of your MBOM upfront, you are more likely to launch successfully and produce high-quality products on-time and on budget.

You may have already implemented some level of MBOM management that provides the orderable BOM within your ERP system. You may even have enabled automated transfers of data. However, some pitfalls can reduce the effectiveness of your process.

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