A bill of material may be defined as a comprehensive description of parts , assemblies, components ,subassemblies, raw material, that are used to manufacture any product, and the amounts of each. A bill of materials found in the structure of hierarchy, with the lowest level, is displaying particular components and stuff while the highest level represents the finished product. A BOM is sometimes also named as Production Recipe.
Bill of Material is useful for the organizations in followings:
- Planning for the acquisition of material
- To gain control over inventory
- Budgeted cost of material
- Maintenance of records
- Surety of consistent production & less wastage
Take the example of a manufacturer of bicycles & assume that he wants to manufacture 500 bicycles. In this instance, the bill of the material consists of all parts that are required for the manufacturing of a bicycle, like frames, handlebars, brakes, seats, wheels, chains, tires, cranksets & pedals, quantities needed for all of these materials & their costs as well.
Manufacturing Bills of Material:
A Bill of material consists of a complete list of materials that are required to produce a final commodity packaged and shippable, named as manufacturing bill of material. It also includes the data about the components which need the execution of a process before assembly & describes how different parts are relevant to each other in a system. This data of the MBOM then exchanged with the interconnected business parties.
Sales Bill of Material:
A Sales BOM used for selling records where the product object is classified as a promotional item only, not an element of inventory. It defines a commodity in the sales phase where the final product is handled as the object of sale rather than an element of production.
Engineering Bills of Material:
The engineering bill of material is used to describe the components or assemblies developed by the department of engineering. An EBOM usually designed by engineers incorporating electronic design automation or computer-aided design software. The concept undergoes several modifications, and it is normal to have more than one EBOM with one model.
Conclusion: The Bill of Material acts as the cornerstone of every manufacturing process because it sets out all the details necessary for assembling a product. A BOM not only specifies what manufactured and raw materials are required to build a component, but also describes the equipment and tools needed to construct the parts.