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Rancornews.com > Blog > Company Cash Flow > Bill of Materials: Definition, Process, and Management
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Bill of Materials: Definition, Process, and Management

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Bill of Materials (BOM) is an important part of the production process. The BOM contains a complete list of all the materials, components, and sub-assemblies needed to make a product. In this article, we will discuss the meaning of BOM, functions, types of BOM, and the process of creating and managing BOM.

BOM definition

Before discussing more about BOM, let’s first define what it is BOM. BOM is a complete list of all materials, components, and sub-assemblies needed to make a product. The BOM lists all the information about each item needed to make the product, such as quantity, name, part number, specifications, and source.
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BOM function
The main function of the BOM is to provide guidance for the production process. By using a BOM, manufacturers can ensure that they have all the materials and components needed to manufacture a product, as well as ensure that they are producing the product to the correct specifications. In addition, BOM can also assist manufacturers in planning inventory, managing production costs, and increasing production efficiency.

BOM types

1. Engineering BOM (EBOM)​​​​

Engineering BOM is used to plan production processes from an engineer’s point of view. EBOM lists all the materials, components, and sub-assemblies needed to make a product. EBOM is often used in the product design and development stage.

2. Manufacturing BOM (MBOM)

Manufacturing BOM is used to plan the production process from a production point of view. MBOM lists all the materials and components needed to make the product and also includes additional information required by the manufacturer, such as information about production equipment and cycle times.

3. Service BOM Service

The BOM lists all information necessary to perform repairs or maintenance on the product. Service BOM includes information about all materials, components and sub-assemblies used in the product as well as information about the repair or maintenance process required. In practice, BOM is often used in combination with different types of BOM to achieve different production goals.

BOM components

BOM components consist of various components, such as raw materials, components, and sub-assemblies. Raw materials are raw materials used to make products. Components are parts of a product that consist of several raw materials. While the sub-assembly is part of the product which consists of several components. Components in the BOM can be grouped into several categories, such as raw materials, components, and sub-assemblies. Each category can have different details in the BOM, such as name, part number, quantity, specifications, and source. In addition, BOM also includes additional information, such as production cycle time, production equipment used, and production costs. This additional information helps manufacturers plan and manage production more effectively.

BOM Making Process

The BOM creation process involves several stages, such as designing the product, determining the required components and raw materials, and setting the quantity and specifications for each item. This stage usually involves collaboration between the product design team, production team, and inventory management team. After the BOM has been created, it needs to be updated periodically to ensure that the information contained in it remains accurate. Changes to product design, use of new materials and components, or changes to production processes can affect the contents of the BOM.

BOM Management

BOM management is the process of managing and updating the BOM throughout the product life cycle. BOM management involves several activities, such as ensuring the accuracy of the information in the BOM, updating the BOM when changes occur, and ensuring that the BOM is always available and accessible to all teams involved in the production process. In BOM management, it is also necessary to ensure that BOM can be integrated with inventory management systems and manufacturing systems. In this way, manufacturers can manage inventory more effectively and optimize production processes.

Conclusion

Bill of Materials (BOM) is a complete list of all materials, components, and sub-assemblies needed to make a product. BOM is an important part of the production process because it provides guidance for the production process, assists manufacturers in planning inventory and managing production costs, as well as increasing production efficiency. BOM consists of various components, such as raw materials, components, and sub-assemblies, and includes additional information, such as production cycle time, production equipment used, and production costs.

The BOM creation process involves collaboration between the product design team, production team, and inventory management team. BOM involves activities of ensuring the accuracy of the information in the BOM and ensuring that the BOM can be integrated with inventory management systems and manufacturing systems. With good BOM management, manufacturers can manage inventory more effectively and optimize production processes.

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