How to master multi-level BOMs: The key to efficient pharma, manufacturing production

Don't let production planning become a logistical nightmare. (Image: QuickEasy Software)

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In industries like pharmaceuticals and manufacturing, precision is everything. Whether you’re producing life-saving pills, complex chemical compounds or industrial components, the ability to manage multi-level bills of materials (BOMs) is crucial. But without the right tools, it’s easy for production planning to become a logistical nightmare.

A multi-level BOM is a hierarchical breakdown of materials, components and sub-assemblies required to manufacture a finished product. Unlike a simple BOM, which only lists end-product ingredients or components, a multi-level BOM details intermediate stages, linking raw materials to sub-assemblies before reaching the final product.

For instance, in pharmaceutical manufacturing, a cough syrup may have:

• A bulk syrup formulation (primary BOM).
• Active ingredients, preservatives and flavouring agents (sub-BOMs).
• Final packaging and labelling (packaging BOM).

Each of these levels needs precise co-ordination to ensure traceability, compliance and efficiency in production.

Related: A Guide to Manufacturing ERP: A South African Perspective

1. Complexity of recipes and formulations

Pharmaceutical and manufacturing industries deal with intricate formulations. In these industries, even minor errors can compromise product integrity. A multi-level BOM ensures that each component is linked correctly, but keeping track manually is impractical. Scaling recipes based on production batch sizes further complicates matters.

2. Unit of measure (UOM) conversions

Manufacturers frequently convert materials between different UOMs. A drug’s active ingredient might be measured in milligrams, while its bulk formulation is in litres, and final packaging in millilitres per bottle. Errors in UOM conversions can lead to wastage, miscalculations or even regulatory non-compliance.

3. Batch and lot tracking

A multi-level BOM must integrate seamlessly with batch tracking. (Image: QuickEasy Software)

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In industries governed by stringent quality regulations, such as pharma, each batch must be tracked from raw material to finished product. This ensures compliance with good manufacturing practices (GMP) and allows for rapid recall if defects arise. A multi-level BOM must integrate seamlessly with batch tracking to maintain full traceability.

4. Version control and approvals

Manufacturers frequently refine formulas and processes. A new version of a drug formula, for instance, may require approval before production. Managing multiple BOM versions manually can lead to outdated specifications being used, causing costly rework and compliance risks.

5. Integration with production planning

Without seamless integration, production teams may not have the correct materials or components at the right time, leading to delays, bottlenecks or excessive inventory holding costs. A disconnected BOM system can also cause disruptions in scheduling and production flow.

QuickEasy ERP for manufacturers – an ERP designed to streamline complex operations – can deal with complicated recipes, multi-level BOMs and can improve traceability and flexibility at all stages of production.

1. Comprehensive multi-level BOM management

QuickEasy ERP allows manufacturers to create and manage complex, multi-tier BOMs with parent-child relationships.

This ensures that intermediate components (such as bulk formulations or semi-finished goods) are correctly linked to final products.

2. Automatic UOM conversions

The system automatically converts measurements between UOMs, preventing manual errors and ensuring accurate material consumption calculations.

Whether you’re working with milligrams, litres or kilograms, QuickEasy ERP ensures precise tracking.

QuickEasy ERP ensures precise tracking. (Image: QuickEasy Software)

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3. Advanced batch and lot traceability

With built-in batch and lot tracking, QuickEasy ERP maintains full visibility of material movement from procurement to finished goods. This enables quick and efficient recalls, quality assurance and regulatory compliance.

4. BOM version control and approval workflows

QuickEasy ERP’s version control ensures that only approved BOM versions are used in production.

Manufacturers can track changes, maintain revision histories and implement approval processes to prevent unauthorised modifications.

5. Seamless production planning integration

The ERP system integrates BOMs with production schedules, ensuring that materials and sub-assemblies are available when needed. This reduces downtime, optimises inventory levels and improves overall efficiency.

Managing multi-level BOMs in pharmaceutical and manufacturing industries is no small feat. However, with QuickEasy ERP, manufacturers can streamline the process and ensure traceability, accuracy and compliance at every stage of production. From handling complex formulations to seamless production planning, QuickEasy ERP provides the flexibility and control needed to master multi-level BOMs with ease.

This year, make use of the right technology for your business. This way, you can improve efficiency, reduce errors and ensure their products meet the highest quality standards – without the headache of manual BOM management.