Why Companies Need This Kind of Workflow

Master Bill of Materials form the basis for calculating a product cost. 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 This can result in outdated cost estimates, incorrectly set sales prices, and a reduction in planned margins.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 base bills of materials. When a production technician modifies a bill of materials, the system:

• detects a change,
• prepares a change summary,
• sends a request to the technology manager for review and approval,
• 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 material code,
• changing the material quantity,
• adding a new material,
• removing a material from the bill of materials.

Operation Changes:
• change the operation code,
• add or remove an operation,
• change the production resource,
• change the machine or workstation.

The system automatically detects any changes that may affect the product’s price.

Validating Changes in Technology

Every change is first submitted to the technology manager for review.

The technology manager 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 technology manager approves it, the system automatically notifies the relevant sales personnel.

The notification contains:
• the bill of materials code,
• 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, quotes, contracts, and product margins.

Example of a Change Notice

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 information 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 base bills of materials 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.