The Cost of BOMs and How to Lower It

The claim that building BOMs is expensive is not unfounded. They require serious time, expertise, and resources, so many companies employ third-party contractors.

There are many contributing factors to the high cost of constructing BOMs. One of them would be building it out in a spreadsheet and then transferring the data to an EAM system. Everyone knows how to use Excel, so starting a spreadsheet for all that data may sound appropriate.

Due to the high cost, some companies may even miss out on building BOMs altogether. But most times, they are unaware of unnecessary processes that add extra expense. Below are a couple of reasons why your BOMs could be so expensive.

Still Using Spreadsheets

Some asset-intensive companies or third-party contractors build BOMs in spreadsheets because they lack the appropriate tools to monitor productivity. Building a bill of materials without productivity tools makes editing, reviewing, visualizing, or searching for existing parts more challenging. It also increases the chances of error and inaccuracy, leading to extra cost.

Your EAM/CMMS System is Encumbered with Duplicate and Obsolete Materials and Equipment

So, your materials have duplicates… not an issue. Actually, yes, that’s a problem. Duplicate parts can quickly accumulate if the problem’s root cause is not addressed. Duplicate items overcrowd a system that’s designed to be easily navigable. This can result in extra costs for your company because it hinders productivity; it becomes difficult to identify duplicates and eliminate them. Outdated equipment is a similar problem. How can users identify which parts are critical for an upkeep if they have to root out outdated data? Features such as intelligent searching allow maintenance workers to search for similar parts and reuse existing materials when creating BoMs. This reduces unnecessary clutter, makes your BOM easier to use, and results in on-time and complete work orders.

Are Your Problems Self-Inflicted?

Building a BOM is a significant investment that will go a long way for every asset-intensive company. For your BOMs to work for you, it is important to make sure that you clean up duplicates and outdated information that fosters a system filled with inaccuracy and inefficiency, as that costs money.

How NRX AssetHub Can Help You

If you are curious about using the NRX AssetHub solution to improve your data quality, feel free to book a demo or download our brochure, and our team would be happy to help you!