{"id":73721,"date":"2023-01-10T19:49:00","date_gmt":"2023-01-10T19:49:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=73721"},"modified":"2023-05-04T10:56:06","modified_gmt":"2023-05-04T10:56:06","slug":"bill-of-material","status":"publish","type":"post","link":"https:\/\/businessyield.com\/business-planning\/bill-of-material\/","title":{"rendered":"BILL OF MATERIAL: Definition, Examples, Software, and Templates","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
The bill of materials is a list of everything that goes into making a finished product. So, the list includes raw materials, subassemblies, subcomponents, subparts, and consumables. At the top of the BOM is the finished product. It’s also divided into sections that discuss needs. This article will assist you in comprehending a bill of material software and templates with examples.<\/p>\n\n\n\n
A bill of materials (BOM) is a structured, comprehensive list of the materials, components, and parts needed to manufacture or repair a product, the quantities required, and the materials’ names, descriptions, and costs. A BOM also includes instructions on how to obtain and use these materials. A BOM can serve as a central record of the materials, components, and processes used to build a product due to the breadth and depth of the data it captures. Examples of a bill of material can be a list of assembly components or a production recipe in process manufacturing industries. The bill of materials software breaks down how an item is made into its individual parts.<\/p>\n\n\n\n
The following are the three main types of BOMs:<\/p>\n\n\n\n
A manufacturing bill of material (MBOM) is a detailed list of all the items and subassemblies needed to create a finished, shippable product. An MBOM also includes information about the parts that need to be processed before assembly and explains how various components in a product interact with one another. The manufacturing BOM information is shared with all integrated business systems involved in the ordering and building of the product, such as enterprise resource planning (ERP), material requirements planning (MRP), and, in some cases, a manufacturing execution system.<\/p>\n\n\n\n
The engineering department also assembles parts that are defined in an engineering bill of material (EBOM). However, the engineering BOM is a mechanical or technical drawing of a product that shows the component structure from a functional standpoint. Engineers also create the design using computer-aided or electronic design automation tools. As a product’s design evolves, it is common to have multiple BOMs.<\/p>\n\n\n\n
In the sales stage, a sales bill of material (SBOM) defines the details of the product prior to assembly. The list of finished products and the components required to develop them appear separately in the sales order<\/a> document in an SBOM. Instead of being managed as an inventory item, the finished product is managed as a sales item.<\/p>\n\n\n\n The following elements are typically included in the bill of material: the BOM level; the part number, name, description, and quantity; the cost; and the unit of measure. The bill of material includes components and parts but excludes labor.<\/p>\n\n\n\n This is a one-of-a-kind number that indicates where each part or assembly falls in the BOM hierarchy. Consider a vehicle’s bill of materials. Each major component, such as the engine, doors, and drivetrain, would be represented by a level. They would be broken down even further into parts and materials, like the pistons and crankshaft of an engine. The pistons and crankshaft would be leveled and then disassembled into their component parts. Piston rings, for example, are components of pistons.<\/p>\n\n\n\n This unique number also identifies a material or part, making it easy for anyone involved in making it to find it. Part numbers can be intelligent in that they include information about the part. For example, “WIRE-001” could be an intelligent number for wire. Intelligent numbers can help identify each component. They do, however, require that the person making the numbering scheme knows about each part before putting numbers on them. However, there are no descriptions with non-intelligent part numbers. Moreover, they are easier to make and more likely to be right for longer periods of time. For the majority of organizations, either numbering system will suffice. The key is to maintain consistency.<\/p>\n\n\n\n The part name also serves as a unique identifier for each individual part or assembly. It, like the part number, aids users in quickly identifying the part.<\/p>\n\n\n\n The phase also shows what stage each part is at in its lifecycle. “In production” or “in design” are two examples.<\/p>\n\n\n\n The description is also unique to each part or component and provides more detail than the part name or number. When it is necessary to distinguish between parts that appear similar, descriptions are useful. For example, “screws” may encompass both 1\/2-inch and 5\/8-inch machine screws.<\/p>\n\n\n\n The quantity shows how many parts are used in an assembly or subassembly. As an example, there are two piston rings per piston cylinder.<\/p>\n\n\n\n The unit of measurement in which a part will be purchased is also specified here. Specifying the unit of measurement ensures that the proper quantities are ordered. For complete parts, such as gaskets, the unit measure is most likely “each.”<\/p>\n\n\n\n It makes more sense to use a unit of measure for some parts or components. Wiring and lumber, for example, are commonly sold by foot. Small, low-cost, difficult-to-count parts, such as nails or screws, can be purchased by weight or by the box.<\/p>\n\n\n\n This describes how the element or component was obtained. However, people often have the choice of buying the part, making it themselves, or having subcontractors make it.<\/p>\n\n\n\n The reference designator is used when products contain printed circuit board assemblies. The reference designator identifies the location of each part of the circuit board assembly.<\/p>\n\n\n\n In the notes section, you can add extra information that anyone who looks at the BOM will find useful. It could be a list of substitute suppliers or the specifications that a material, such as adhesive, must meet.<\/p>\n\n\n\n Examples of a bill of material can be a list of assembly components or a production recipe in process manufacturing industries<\/a>. For example, if a bike company wants to make 1,000 bikes, the bill of material will include all the parts needed to make each bike. The most general examples of the bill of material can also be listed in tabular form, listing the type of product, name of inventory, and quantity.<\/p>\n\n\n\n In Microsoft Word, you can use a bill of the material templates to create a simple “spare parts” list. The chart includes space for part number and name, description, quantity, units, and unit and total cost, as well as approval signatures and dates, allowing you to move forward with production.<\/p>\n\n\n\n This is a simple Excel spreadsheet containing a list of every component required to complete your product. List the item’s name and number, as well as its description, quantity, and units. The bill of material templates also includes space for notes about the stage of production as well as whether you will manufacture or purchase each component.<\/p>\n\n\n\n This is a modular model with a single level. Include the part name and number, description, quantity, and units, as well as supplier information and a picture of each product. This is a good option if you are creating a relatively simple product with few component relationships.<\/p>\n\n\n\n This modular template includes multiple levels of hierarchy to allow you to visually see the relationships between parts and components, but you can modify it to include as many levels as you need. There is also room to include information about the assembly phase, the production status of each component, and contact information for suppliers. If you need to create a bill of material for an engineering or manufacturing context, you can include information from either the design or manufacturing perspectives, as well as add or edit columns for additional information.<\/p>\n\n\n\n This template will also assist you in gathering contact information and staying organized if you are contracting with multiple vendors or suppliers for a project. List all contact information, the items supplied the order date, and any other comments to ensure that you receive all materials on time and to standard.<\/p>\n\n\n\nKey Elements of a Bill of Material (BOM)<\/h2>\n\n\n\n
#1. <\/strong>Bill of Material Level<\/h3>\n\n\n\n
#2. Bill of Material Part Number<\/h3>\n\n\n\n
#3. Bill of Material Part Name<\/h3>\n\n\n\n
#4. Bill of Material Phase<\/h3>\n\n\n\n
#5. Description<\/h3>\n\n\n\n
#6. Quantity <\/h3>\n\n\n\n
#7. Unit Measure<\/h3>\n\n\n\n
#8. Procurement Type<\/h3>\n\n\n\n
#9. Reference Designator<\/h3>\n\n\n\n
#10. BOM Notes<\/h3>\n\n\n\n
What are the Examples Of a Bill Of Material<\/h2>\n\n\n\n
Bill of Material Templates<\/h2>\n\n\n\n
#1. Template for a Component List<\/h3>\n\n\n\n
#2. Bill of Material Templates for a Single Level<\/h3>\n\n\n\n
\u200c#3. Bill of Material With Multiple Levels Templates<\/h3>\n\n\n\n
\u200c#4. Bill of Material Templates for a Supplier List<\/h3>\n\n\n\n
How to Calculate the Bill of Material?<\/h2>\n\n\n\n