The accuracy target for bills of material is even higher than on inventory balances: 98 percent minimum in terms of item number, unit of measure, quantity per parent item, and the parent item number itself. An error in any of these elements will generate requirements incorrectly. Incorrect requirements will be generated into the right components or correct requirements into the wrong components, or both.
First, what does 98 percent bill of material accuracy mean? In other words, how is bill accuracy calculated? Broadly, there are three approaches: the tight method, the loose method, and the middle-ofthe road method.
The accuracy target for bills of material is even higher than on inventory balances: 98 percent minimum in terms of item number, unit of measure, quantity per parent item, and the parent item number itself. An error in any of these elements will generate requirements incorrectly. Incorrect requirements will be generated into the right components or correct requirements into the wrong components, or both.First, what does 98 percent bill of material accuracy mean? In other words, how is bill accuracy calculated? Broadly, there are three approaches: the tight method, the loose method, and the middle-ofthe road method.
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