Why is correct labeling important in design? It helps electrical and mechanical engineers to calculate inventory of all parts inside their Bill of Materials (BOM) before commencing a project. In addition, a correct labeling system helps engineers to keep track of every product’s lifecycle.
Despite these obvious benefits, some engineers still end up with incorrect part numbers in their BOMs. In some cases, the manufacturer is to blame due to sending unlabeled or incorrect part numbers. On the other hand, errors of omission lead to incorrect data entry.
If you’ve just come across components with incorrect part numbers in your BOM, here are five possible unfavorable outcomes that may catch up with you.
1. Numerous time delays
Failure to plan is planning to fail. Engineers who realize that their BOM contains many incorrect part numbers often end up submitting projects way past set deadlines. One reason why this happens is that the project’s team has to spend extra time identifying and reassigning the correct part numbers.
Moreover, the team is forced to dismantle the design and start all over again using the correctly labeled parts. These time constraints may end up straining business-client relationships because the engineers have failed to meet the client’s expectations.
2. Inaccurate costing
Accurate costing enables electrical and mechanical engineers to determine all the requirements necessary for a client’s project. Potential clients use estimated budgets to help them make informed decisions when awarding long-term contracts to bidders. This process requires correct identification of each part number in the BOM.
Having incorrect part numbers may mislead the project’s accountant into coming up with an inflated budget. Why? Because the incorrect part numbers may cause the accountant to confuse one part for another. He or she will then use wrong prices to calculate the entire project’s estimate.
Just imagine what would happen if your company presented an inflated budget when competing for a lucrative government contract.
Read more about proper part number management here.
3. Strained customer relationships
After completion of a project, your client may request for a list of parts that will help them to easily source for spare parts in future. This list also helps them to keep track of each part’s lifecycle. In addition, auditors will analyze a project’s total cost by using the parts list to cross check prices.
When a customer realizes that your BOM contains incorrect part numbers, they might assume that you’re negligent. Since it may take some time for your team to sort this issue, the infuriated customer ends up getting impatient. He or she may post nasty reviews on your company’s website.
4. Wastage of capital
Labeling parts correctly helps electrical and mechanical designers to accurately keep track of their materials’ inventory. Incorrect labeling may lead to engineers ordering new parts that are already in the company’s store. Most manufacturers make it clear that goods once sold are non-refundable unless they contain significant defects.
5. Poor tracking of a part’s lifecycle
Misleading part numbers may make you assume that a certain part is still available in the market. However, the manufacturer may have shut down or ceased production of specific parts.
Correcting your part numbers may be time-consuming, but you can’t compare this inconvenience with losing a customer or a lucrative government contract that would take your company to greater heights of success.