MTO, BOM & BOQ

POSTED BY : oilandgasclub July 30, 2010 in Blog 1 Comment

The question:
What is the meaning of MTO, BOM and BOQ and how do I start this .. I mean some
useful tips to make a BOM, MTO, BOQ like what are the things to be considered,
what all are mandatory etc. ?
My answer: (Based on my experience)
MTO means Material TakeOff.
This is the action of counting of the pieces and parts needed to fabricate, purchase
and or construct something. (Have you started the MTO yet? Have you completed
the MTO yet?)
BOM means Bill of Material. This is normally a listing of only the material shown
on an individual specific drawing such as a piping isometric. (Have you checked all
the BOMs for the Area 10 Isometrics?)
BOQ means Bill of Quantity (also called Material Summary). This is the totaling of all
the quantities from all the BOMs from all the project to send to a piping supplier for
pricing or purchase.
There are normally three material takeoffs sessions during a process plant project.
These are preliminary, secondary and final.
Preliminary MTO:
What is it?
A preliminary MTO is a material takeoff very early in the design process when only
a limited amount of information is known and very little detail has been developed.
Why is it done?
A preliminary MTO is normally done for two reasons. The first is to assist with the
early orderofmagnitude (+/ 10%) estimate for the overall project. The second
reason is to issue early order of magnitude RFQs (Request for Quote) for piping
materials
When is it done?
The preliminary MTO is only possible when there is a Plot Plan that is Approved
by the Client or has been issued to the client for approval. This is done long before
there is any detailed work started on the 3D design model.

Who does it?

A preliminary MTO is best done by very strong well experienced senior piping
designers who are familiar with the project.
How is it done?
For the preliminary MTO we used a formatted form on which we could indicate the
number or amount of material required for each line. On the form I would identify
the line number along with the line class. I would then look at this line on the P&ID
and on the Plot Plan and determine the routing of the pipe. Then in the boxes (on
the form) I would then mark the amount of pipe required for each size required for
that line. Then I would count the number of fittings required, starting with 90 degree
elbows. Then continuing through all the other inline fittings and online fittings. After
the fittings I would count all the flanges by size. Then I would count all the valves
from the P&ID. The high point vents and low point drains would be made last based
on an educated guess.
Then I would take another form and do another line. As I did each line I would
Yellow off the line on the P&ID so at the end all the lines are accounted for. As the
forms were completed they would be reviewed by the Area Supervisor and then
forwarded to the Material Control Group who would process the data to produce the
RFQs

Secondary MTO:
Why is it done?
The primary reason for the Secondary MTO is to update quantities for the issue of
the actual Purchase orders for piping material. A second reason is to update the
project estimate.
When is it done?
The Secondary MTO can only be done when there is significant progress
completed on the 3D design model (or other electronic design method). However it
must be done early enough to insure that the procurement (purchase and delivery)
of the piping material to the field will fit the overall project schedule.
Who does it?
The Material Control Group.
How is it done?

 The Material Control Group would access the electronic data base and download
all the material available at that time. Some factoring would be done by the Material
Control Group and the Piping Design Leads to allow for work not done yet.
Final MTO
Why is it done?
The final MTO is done first to identify any item added late in the project or
anything that was missed on the Preliminary or Secondary MTOs. The second
reason for the Final MTO is to get a fix on the final job costs.
When is it done?
The Final MTO is done when the last Isometric has been issued.
Who does it?
The Material Control Group.
How is it done?
The Material Control Group would access the electronic data base and download
all the material. Any differences between the Final MTO and the Secondary MTO
would be identified. Purchase orders would be issued for the updated quantities.
Please remember this is only how it was done where I was. Use it as a guide but
please do not be misled that this is the only way an MTO can be done.

Difference between Materials Takeoff and Bill of Materials?

POSTED BY : oilandgasclub January 7, 2016 in Blog 3 Comments
A material takeoff is the process of analyzing (this includes list of materials with
quantities and types, grades of materials and the weights of such materials)
drawings and determining all the materials required to complete the design.
A bill of materials is a document that shows detailed descriptions of materials
used in completing a project, this includes, types of materials, specification of each
item, gost of each item used, number and cost of labour used in completing the
project.
The major difference between the two is : MTO is needed to make a BOM, a BOM
aids in the procurement and requisition of materials.