Planning BOMs in Kinetic ERP: A Strategic Approach to Forecasting and Material Planning

In today’s fast-paced manufacturing landscape, companies are increasingly challenged by high product variability, short lead times, and fluctuating customer demand. To address these complexities, Epicor Kinetic offers a purpose-built feature: the Planning BOM (Bill of Materials). This specialized tool supports forecast-based planning in configure-to-order (CTO) and mixed-mode environments, allowing manufacturers to strategically align materials and capacity with anticipated demand.

What Is a Planning BOM?

A Planning BOM is used to define all potential material combinations required in the manufacturing process for a family of related finished goods. These related goods are grouped under what’s known as Planning Pool Parts. Demand forecasts are generated at the Planning BOM part level and then distributed across the associated Planning Pool Parts. This approach allows organizations to proactively prepare for material needs based on forecast trends rather than waiting for specific customer orders.

Understanding Key Limitations

To maintain its role as a forecasting tool and avoid unintended effects on production or inventory, the Planning BOM comes with a set of strict limitations:

• It cannot be tied to replenishment or Kanban processes.

• It is excluded from both cycle counts and physical inventory counts.

• It is not eligible for RoHS compliance tracking.

• It cannot be included in a Master Production Schedule (MPS).

• It must have a consistent part type across all sites; no cross-site variations are allowed.

• Subcontract operations are not permitted within its structure.

• It cannot be flagged as a salvaged part.

• Its materials and co-parts cannot themselves be Planning BOMs.

• Un-firm jobs using Planning BOMs cannot include co-parts.

• Firm jobs cannot include Planning BOMs in the job header.

• Un-firm jobs that use a Planning BOM in the job header cannot be converted into firm jobs.

These restrictions are essential to preserve the intended function of the Planning BOM: enabling accurate, demand-driven planning without triggering actual production or inventory movement.

Forecasting by Percentages Rather Than Finished Goods

One of the standout capabilities of the Planning BOM is its ability to generate subassembly requirements based on percentages rather than tied to specific end items. This is particularly valuable in CTO environments where final configurations are often unknown until an order is received. By planning subassemblies at the percentage level, manufacturers can prepare more effectively and maintain better material availability without overproducing.

Setup Considerations

To properly implement Planning BOM functionality, certain conditions must be met:

• Each Planning Pool Part must have a unique part number in the system.

• A valid method of manufacture must be defined for each part.

• The Planning Pool Part must be linked to its associated Planning BOM via the Planning Pool section in the Part Maintenance screen.

These setup steps ensure that forecast demand is correctly routed and that subassemblies can be effectively planned based on anticipated needs.

Strategic Benefits

Planning BOMs provide a powerful framework for proactive planning in environments where demand is dynamic and customization is high. By leveraging this functionality, manufacturers can:

• Reduce lead times and improve responsiveness.

• Ensure material availability for high-mix, low-volume scenarios.

• Align production and inventory plans with market forecasts instead of firm customer orders.

Final Thoughts

Incorporating Planning BOMs into your planning strategy can offer significant advantages, especially for organizations dealing with configurable products and varying demand cycles. By shifting the focus from reactive to proactive planning, manufacturers gain the flexibility and control needed to stay competitive in evolving markets.