Thursday, April 06, 2017

REDUCE COSTS AND INCREASE EFFICIENCY BY USING PHANTOM ASSEMBLIES

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Manufacturing has evolved and gone are the days when it was common practice to produce items in bulk, only to be stored in inventory until they were needed. Today’s environment of rapidly changing and variable products recognizes that excess inventory means reduced liquid capital and obsolete materials.   
 
NetSuite helps manufacturers reduce costs and increase efficiency by simplifying job scheduling and planning by using phantom assemblies to consolidate and reduce the number of jobs required. 
 

What is a Phantom?

A "phantom" bill of material can be thought of as a made to order subassembly and is defined with its own set of components. A phantom is a part that is typically not built and placed in inventory, but is given a part number and a bill of material to define the components that are assembled together in the overall process. Phantom assemblies can be useful for multi-level products that are made to order and for making items with customized options. 
 

Bill of Materials (BOM) Inventory

A phantom conveniently groups together material needed to produce a subassembly. Phantoms are used to simplify the Bill of Materials (BOM) management or to represent a configuration option for a particular manufactured product. For example, a specific type of rudder used on a boat can be marked as a phantom as part of a build to order specification. The Phantom BOM option enables you to define the item source for the subassembly on a line-by-line basis. This means you can specify the subassembly to be phantom in one BOM but have it as a regular stock item in another. 
 

Improved Functionality

Phantoms are very helpful and now provide real functionality for NetSuite users. Before, all sub-assemblies were treated as a phantom and manufacturers had to build all sub-assemblies under one level assembly. The Phantom Bill of Material feature enables users to control which assemblies will be pulled from stock and which will be completed as a part of the work order for the stockable assembly. Users can also define individual sub-assemblies as Phantom, while others under the same top assembly may not be. 
 

Improved Efficiency

Changes are automatically re-flowed to all related Bill of Materials, which saves time and effort for material or manufacturing engineers. Phantoms are a must for companies interested in lowering work in process levels, optimizing cash-flow, reducing product costs and and increasing efficiency. 
 
Download our whitepaper to learn more about how NetSuite helps manufacturers stay ahead of the curve.
 
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Since 2005, NXTurn has assisted hundreds of NetSuites customers with quality implementation, support, customization, integration and eCommerce services. NXTurn is a leading provider for NetSuite’s on-demand, integrated business management software for growing and midsize businesses and NXTurn provides a fast, cost effective, reliable way to integrate and manage external applications and data with your NetSuite account.

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