Why companies need this kind of workflow

Basic BOMs are the basis for calculating the cost of a product. Any change in materials, quantities, operations, or production resources can directly affect production costs and, consequently, the product’s profitability. In practice, the production department often implements changes to optimize processes, switch suppliers, adjust production, or improve quality.

These changes are often implemented within production, while the Sales department is not informed of them in a timely manner. This can result in outdated cost estimates, incorrectly set sales prices, and a reduction in planned margins.

From change to information in just a few minutes

The workflow automatically tracks all significant changes to the Basic BOMs. When a production technician modifies a bill of materials, the system:

• Detects a change,
• Prepares an overview of the change(s),
• Sends a request for review and approval to the Chief of Technology,
• Automatically notifies the Sales department upon approval,
• Ensures full traceability of the entire process.

No significant change goes unnoticed.

What changes does the solution track?

Changes to Materials:
• Changing the ID of the material,
• Changing the quantity,
• Adding new material,
• Removing material from the BOM.

Operation Changes:
• Changing the ID of the operation,
• Adding or removing an operation,
• Changing the production resource,
• Changing the machine or workstation.

The system automatically detects any changes that may affect the price of a product.

Confirming changes in technology

Every change is first submitted to the Chief of Technology for review.

The Chief of Technology can:
• Review the change,
• Verify its appropriateness,
• Approve the change,
• Or request additional revisions.

Only after approval does the process move on to the next phase.

Sales always reflect the actual situation

Once the Chief of Technology approves a change, the system automatically notifies the relevant Sales personnel.

The notification contains:
• The BOM ID,
• The product name,
• The date of the change,
• The user who made the change,
• A detailed overview of the changes made,
• A comparison of the old and new versions.

This allows the Sales department to promptly assess the impact of the change on cost estimates, offers, contracts, and product margins.

Example of a Notice of change

Material: ALU-001 → ALU-002
Material quantity: 1.20 kg → 1.35 kg
Operation: Laser cutting → CNC cutting
Resource: Machine A → Machine B

Business benefits

For Sales:
• Timely informing about cost changes,
• More reliable calculations,
• Protection of planned margins.

For Technology:
• A structured change management process,
• Greater transparency regarding changes,
• Clear accountability for approved changes.

For Management:
• Better cost control,
• Greater business transparency,
• Reduced operational risks,
• Better protection of product profitability.

Key value of the solution

Most companies don’t realize the impact of changes to bills of materials until discrepancies in costs or margins arise. A workflow for monitoring changes to Basic BOMs ensures that key personnel are notified as soon as a change occurs. Fewer surprises. More control. Better decisions. The right information at the right time means better protection of the company’s profitability.