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Frequent Contributor

Product costing in Anaplan

Hi,

I am just about to start a new project where the idea is to build a full product costing, with complete BOM and routing in Anaplan. I have a pretty good idead of how to do this, but it would be great to get some input from you guys before I actually start building. There is one thing which I think will be a bit more challenging, which is related to BOMs. It has to do with the fact that some raw material, let's assume steel in this case, is used in multiple products, which makes it impossible to use the build in Anaplan hierarchy, since many products can obviously have steel as a component. Then I would need to add steel multiple times (one time for each product) which wouldn't be ideal since it would mean that I would have to maintain the raw material steel in multiple places in my model (perhaps not an issue with steel, but other more complex raw material will need maintenance)

Also, another question: A final product might have a semi-finished good as a component, and I am not really sure how to incorporate that into the full BOM. What I want to achieve in the end is that you can look at "product A" and see all raw materials as well as the semi-finished goods used for that product, and then be able to click on the semi-finished good and see the raw materials and semi-finished goods for that one an so on...

Any input or suggestions are highly appreciated, thanks a lot in advance!

12 REPLIES 12
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Master Anaplanner/Community Boss

Re: Product costing in Anaplan

@fredrickstraube 

Great question!

You can handle a BOM quite effectively in Anaplan.

Before I go into too much detail I would recommend you download this app from the App Hub.

https://community.anaplan.com/t5/Supply-Chain/Bill-of-Materials-Costing/ba-p/28128

Take a look at the suggested implementation and see if it meets your use case. If not, come back here and we'll sort it out.


Jared Dolich
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Community Boss

Re: Product costing in Anaplan

I worked on this with @ArunManickam  a while ago.

The solution we ended up with is as follows:

 

The best is to record first the BoM as " inversed flat", where you record for each item what it can produce:

nathan_rudman_1-1584978750251.png

the list is like this: First we have a material list that contains all items and then a numbered list that will have a child for each otther item it is used to produced

nathan_rudman_0-1584978648645.png

 

From there you can make your calculation (in this example quite simple). Note that the depth of the BoM isn't dynamic in our example, and I don't think you should make it (unless it changes often at your client's). Having it dynamic will make the formulas very hard to read. But you can create x level in addition to the current depth so that no changes are required in the near future.

nathan_rudman_2-1584978881192.png

Finally, I'd advise also having a hierarchical list with a level for each BoM level where you can aggregate the data once you have calculated it o a flat level, for presentation.

 

 

 

 

Nathan Rudman
Anaplan Model Builder
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Frequent Contributor

Re: Product costing in Anaplan

Hi,

Thanks a lot for your suggestions. I have looked quite a bit at the Anaplan Bill of Material Costing App in the App hub, and I think it uses quite a nice structure and way of handling the BOM breakdown and multiple components. 

(https://community.anaplan.com/t5/supply-chain/Bill-of-Materials-Costing/ba-p/28128)

My problem at the moment has to do with model size. As soon as I start to increase the number of products and components, the model size increases very quickly, and after just a few hundred products and a few thousand components, the upload crashed due to model size.

As far as I can tell, there is one module which is quite a bit larger than the other ones, see picture:

BOM costing.png

As far as I can tell, the main reason this module is so large is that it uses both the list of finished products as well as the entire SKU list. 

Does anyone know a way to work around this so that I can retain the same functionality (rolling up the component requirement for each SKU) but having a smaller module, so that I can upload more products?

Thanks a lot in advance!

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Community Boss

Re: Product costing in Anaplan

3 millions cells is not large, certainly not enough to cause an upload issue.
which upload is failing by the way ?
Nathan Rudman
Anaplan Model Builder
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Frequent Contributor

Re: Product costing in Anaplan

Hi Nathan,

Please see table below for example of how the model size increases with the number of products and components:

Products

Components (excluding products)

Items (products and components)

Cells

Model size (GB)

0

0

0

                 33,823

0.101

10

20

30

               458,387

0.134

100

20

120

           6,525,467

0.577

100

100

200

           9,142,827

0.747

500

100

600

       105,000,000

0.7147

500

500

1000

       166,000,000

1.09

1000

500

1500

       482,000,000

3.1

1000

1000

2000

       635,000,000

4.06

2500

1000

3500

   2,700,000,000

17.23

2500

2500

5000

-

-

When I try to upload 2500 products and 2500 components, the import fails.

Upload fail.png

//Fredrick 

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Community Boss

Re: Product costing in Anaplan

oh you mean 3 million cells is the size without any of your inputs ? Indeed 17GB for 2500 items seems to be lacking optimization.

In that case you could rebuild in your own model just taking the part of the BOM calculation from the app, loosing everything that is not essential.
Nathan Rudman
Anaplan Model Builder
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Frequent Contributor

Re: Product costing in Anaplan

Hi Nathan,

Sorry, I realized I wasn't very clear. 3.000.000 cells in that particular model is with a very limited amount of products and components (a few hundred I think). 

My problem with your solution is that the app is very limited the way it is, and my plan was to add quite a lot of functionality to it, however, I don't want to do that if I'm only limited to a few hundred products and components, since my case requires several thousand of products/components. 

//Fredrick 

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Community Boss

Re: Product costing in Anaplan

no you can definitely do BOM costing for many items (100K+) with Anaplan.
Look at the solution I provided in my first post, I believe it to be the most size efficient.

The problem with the apps is that they were built with the goal to be "installed" from a dashboard and to do often performance was sacrificed for usability.
Nathan Rudman
Anaplan Model Builder
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Regular Contributor

Re: Product costing in Anaplan

Hi @fredrickstraube 
From the blueprint screenshot you provided, it seems like you are dimensionalizing the module by Products and SKU lists. That's what causes the module/model to blow up in size because when you think about it you are providing an intersection for each product and every SKU not to mention the versions lists.


Can you tell me what is the need to have both lists as dimensions?


I believe I had a similar issue in Finance where I have a large number of "entities" - that's your Product Lists -  and even a larger number of GL accounts - that's your SKUs. An entity can be linked to one or more GL accounts but not the whole list of accounts. that's what having the 2 dimensions in the module mean.

If I understand your logic better maybe the solution I found would work for you.

 

-Einas

Einas A Ibrahim