To understand the concept of breakdown, we should talk first about bill of materials. A bill of materials is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an item (finished or semi-finished good).
In manufacturing and beas, breakdown or “explosion”, as it is also known, is the action of breaking apart the bill of materials from each assembly or sub-assembly into its component parts.
This definition will help the company define the production strategy of the item, whether it is make to stock or make to order, and will define a combination of scenarios on the production planning and execution processes. For example, beas can automatically create one work order for a finished item with many positions (make to order – order related) or several work orders for a finished item and its sub-assemblies (make to stock – storage related).
This document will provide you with all the knowledge on how to better set the breakdown field and what is the implication of each settings.