What is the Bill of Materials (BOM)?


Before starting the manufacturing process for any product, a critical document must be prepared containing all possible information needed to create the required finished product successfully. This document is the Bill of Materials (aka the BOM). It must provide a comprehensive list of all the components and raw materials that the final product requires and must also include unambiguous instructions for the assembly process of the product. The BOM also serves as a central resource for the manufacturers, allowing them to proceed confidently and assuredly. Manufacturers can ensure they have all the necessary materials and instructions for production by preparing a comprehensive Bill of Materials. This helps them streamline the manufacturing process and minimise potential errors.

What are the Advantages of Using a Bill of Materials?

Companies that adopt lean production techniques based on continuous improvement can benefit from BOMs. It helps make the manufacturing process precise and effective. Preparing a BOM has several benefits, as listed below:

Who Uses a Bill of Materials (BOM)?

Every manufacturer creating products for any industry started their manufacturing process by creating a bill of materials for the specific product. For example, the engineering department creates an engineering bill of materials (MBOMS). The following teams use the Bill of Materials.

Structure of Bill of Materials

The two types of BOM representation that are most frequently used are single-level and multi-level BOMs.

Content Of Bills Of Material (BOM)

A bill of materials provides detailed information about a product’s engineering, design, document management, manufacturing, purchasing, and contract manufacturers. Below is a list of the typical particulars included in a bill of materials:

Types Of Bills Of Material

A bill of materials (BOM) combines all the information required to build a final product. There are three main types of BOMs:

  1. Manufacturing: A manufacturing bill of materials (aka MBOM) is a detailed list of all the parts and components required to create a finished product that is ready for shipping. The MBOM explains how all the pieces fit together and provides information on the necessary work to be done on each component before assembly. It helps manufacturers keep track of everything they need to make a product and ensure that they don’t miss anything critical.
  2. Engineering: An Engineering bill of materials (aka EBOM) lists the assemblies and components created by the engineering department. It shows a mechanical or a technical product diagram showing the component structure from a functional perspective.
  3. Sales: Before a product is assembled, its specifics are described in a sales bill of materials (SBOM) during the sales stage. The completed goods list and the materials needed to make them must appear separately in the sales order documents in an SBOM. Instead of being maintained as an inventory item, the final product is controlled as a sales product.

Other types of BOMs include the following:

How To Ensure An Effective Bill Of Material Management? 

To ensure that the production process is as efficient as possible, a custom manufacturer must include all relevant information in the BOM. After several iterations and involving numerous teams, a final bill of material is produced. While utilising a spreadsheet to construct a BOM is one option, the optimal method for managing BOMs is to use an enterprise resource planning (ERP) system. BOM needs constant observation throughout its whole existence. As a result, many evaluations and modifications are needed to produce high-quality output.

To create an effective BOM without the manual effort involved, try BUSY Inventory Management Software.

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