Phantom BOMs in Microsoft Dynamics AX: Their Role in MRP and Costing

Phantoms are a very common phenomenon in manufacturing. We should use the term ‘Phantom BOMs' as a more precise description of the topic. The more complex a manufactured piece of equipment is, the higher the chance there will be phantoms in the BOM. How do we explain the need for phantom BOMs in a business?


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About Evert Bos

I am Evert J Bos, ERP consultant since 1986. I started in Europe with IMS7 (A Honeywell Bull Mainframe ERP system) and the BaaN ERP system. Since 1995 I have worked in the USA and since 2004 I have been working with Dynamics AX.  I work for Sikich and focus mostly on manufacturing companies that make complex, engineered products.

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Ghost In The Machine

Excellent recap Evert (as always) !!! Much helpful insight provided. I will add one consideration on buying a Phantom BOM flagged item. Ran across this ask from a client only once many years ago. As you postulate, was in regard to an assembly normally produced in house, but occasionally purchased as an out-consigned manufacturing activity. Difficulty this client wanted to solve pertained to electronic components in an electronics assembly. Components were normally on allocation from the supplier(s). Client had priority with the supplier(s) as a primary consumer. Electronics jobbers they worked with did not. As such, the client needed to purchase these components and then out-consign to the jobber. Their ask, as such, was not to just buy the assembly. Rather to be able to purchase the components under the Phantom BOM into stock and then consign. Obviously could do this manually/individually, but desire was to have the system automatically explode the assembly components for generation of planned component purchases - in essence, negating the function of the Phantom flag without actually going in and switching flags on and off. I had nothing I could offer the client that would perform the magic trick they were asking for.

Best of the best to you always my friend :)
Jack Moran