Step 12: Establish a material/purchasing baseline

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Step 12: Establish a material/purchasing baseline

Depending on the type of project, you may have numerous material requirements.

You and your Project Team will need to have these ordered by your company’s Procurement Specialist in accordance with approved government acquisitions procedures.

A Procurement Specialist can walk you through the standard company procurement process so that you don’t deviate from accepted company and government practices.

It is important for you to identify all material on a bill of materials and then carefully communicate these requirements using a your company purchase requisition via the cost accounting system and determine as soon as possible if any of these items fall on the project critical path. The PR-to-purchase order approval process can take up to several weeks.

A bill of material (BOM) is a descriptive listing of the components (hardware and software) that make up a sub assembly and/or an end item product.  Typically, a BOM is generated by engineering and priced by material estimating and/or purchasing based on the descriptions provided by the engineers.  The organization of the BOM should be tiered from the lowest sub-assembly level to the final end item.  This type of BOM is known as an “Indentured Bill of Material.”  BOMs are usually listed as parts that make up an end item without the necessity of sub assemblies.  The following table is a simple BOM for the same end item shown in indentured and non-indentured form.

Model XYZ Computer System – Non-Indentured

  • Printer
  • Printer Cable
  • Paper
  • CPU
  • Cover
  • Hard Drive
  • 3 ½” Floppy
  • CD Drive
  • ZIP Disk

Model XYZ Computer System

Printer Subsystem

— Printer

Cable

Monitor Subsystem

— Monitor

— Cable

CPU Subsystem

— CPU

Cover

Hard Drive

3 1/2″ Floppy

For purposes of obtaining a quote and to ensure the adequacy of the BOM, the function (engineering, procurement) responsible for each piece of information should be noted.

– Mike Lisagor

By | 2014-11-13T22:28:25+00:00 November 13th, 2014|post, Project Initiation & planning, Uncategorized|0 Comments

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