{"id":24295,"date":"2024-12-02T16:19:43","date_gmt":"2024-12-02T14:19:43","guid":{"rendered":"https:\/\/fractory.com\/?p=24295"},"modified":"2024-12-02T16:21:19","modified_gmt":"2024-12-02T14:21:19","slug":"bill-of-materials-bom-explained","status":"publish","type":"post","link":"https:\/\/fractory.com\/bill-of-materials-bom-explained\/","title":{"rendered":"Bill of Materials &#8211; What It Is, How It Works &#038; Its Benefits"},"content":{"rendered":"<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">A Bill of Materials (BOM) is a tool that helps to simplify complex products and industrial processes. Think of a product, such as a car, that is composed of 10,000 individual components, each varying in shape, size, material, orientation, and function.<\/span><\/p>\n<p><span data-color=\"transparent\">Most of these parts are sourced from various manufacturers before being assembled onto the body-in-white. In order to make a car, all of these parts must be sourced from within and outside a country in varying quantities. Thus, producing thousands of cars every month requires meticulous deliberation, planning and execution.<\/span><\/p>\n<p><span data-color=\"transparent\">The complex process needs to be simplified to enhance accuracy and repeatability. A bill of materials is a tool that helps us achieve just that. This article will explore the concept of a bill of materials, its contents, types, and its role in simplifying complex processes within various departments in different industries.<\/span><\/p>\n    <div class=\"shortcode-key-takeaways\">\n        <span class=\"v2-section-title v2-section-title--md\">Key Takeaways<\/span>\n        <ul class=\"shortcode-key-takeaways-list\">\n                                                <li>A bill of materials is a comprehensive, product-specific document that details the <strong>entire process of manufacturing and assembling<\/strong> a product from its components.<\/li>\n                                                                <li>A good bill of materials has the <strong>potential to impact<\/strong> design, quality, supply chain management, communication, collaboration, sustainability, regulatory compliance, and cost savings.<\/li>\n                                                                <li>A clear and well-structured bill of materials can set a process up for success by improving its <strong>efficiency and accuracy<\/strong>.<\/li>\n                                                                                                                                                                                                                                        <\/ul>\n    <\/div>\n    \n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">What Is a Bill of Materials?<\/span><\/h2>\n<p>A Bill of Materials (BOM) is a <strong><span data-color=\"transparent\">product-specific document that provides a detailed breakdown of a product into assemblies and sub-assemblies.<\/span><\/strong><span data-color=\"transparent\"> It serves as a comprehensive blueprint, outlining the various components involved in the manufacturing process. Think of it as a grocery list for making your assembly.<\/span><\/p>\n<p><span data-color=\"transparent\">A bill of materials is an important and useful document, it serves as the foundation for production planning systems. As the number of parts in a product increases, it becomes increasingly difficult to manage the availability of all the components in sufficient quantities for the <a href=\"https:\/\/fractory.com\/welding-services\/\">assembly process<\/a>. The unavailability of just one part can halt the entire assembly line, costing the company thousands of dollars in lost productivity.<\/span><\/p>\n<p><span data-color=\"transparent\">To prevent this, companies use a bill of materials to plan and track component purchases, optimise inventory levels and reduce waste. When used correctly, it enables a more systematic and deliberate process, minimising unplanned downtime and errors while ensuring operations run at the lowest possible cost.<\/span><\/p>\n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">What Is Included in a Bill of Materials?<\/span><\/h2>\n<p><span data-color=\"transparent\">A bill of materials can take on different forms. It has <strong>different components depending on the department to which it belongs<\/strong>.<\/span><\/p>\n<p><span data-color=\"transparent\">For instance, a manufacturing bill of materials includes details, such as the product code, part name and number, quantity, description, colour, size, and the process in which it will be used to make the final product.<\/span><\/p>\n<p><span data-color=\"transparent\">A sales bill of materials includes sales-relevant information, such as product prices, shipping details, part weight and dimensions, <a href=\"https:\/\/fractory.com\/announcement-easy-credit-terms-with-kriya\/\">payment terms<\/a>, tax rates, etc.<\/span><\/p>\n<p><span data-color=\"transparent\">Thus, the BOM may include all the information that a department needs for smooth operations.<\/span><\/p>\n<div class=\"arve arve-hover-effect-darken\" data-mode=\"lazyload\" data-oembed=\"1\" data-provider=\"youtube\" id=\"arve-youtube-mslibthhfrc\" style=\"max-width:900px;\" data-reset-after-played data-fullscreen=\"disabled\">\n<div class=\"arve-inner\">\n<div class=\"arve-embed arve-embed--has-aspect-ratio\" style=\"aspect-ratio: 500 \/ 281\">\n<span class=\"arve-ar\" style=\"padding-top:56.200000%\"><\/span><noscript class=\"arve-noscript\"><iframe credentialless referrerpolicy=\"strict-origin-when-cross-origin\" allow=\"accelerometer &#039;none&#039;;ambient-light-sensor &#039;none&#039;;autoplay;battery &#039;none&#039;;bluetooth &#039;none&#039;;browsing-topics &#039;none&#039;;camera &#039;none&#039;;ch-ua &#039;none&#039;;clipboard-read &#039;none&#039;;clipboard-write;display-capture &#039;none&#039;;document-domain &#039;none&#039;;domain-agent &#039;none&#039;;encrypted-media &#039;none&#039;;execution-while-not-rendered &#039;none&#039;;execution-while-out-of-viewport &#039;none&#039;;gamepad &#039;none&#039;;geolocation &#039;none&#039;;gyroscope &#039;none&#039;;hid &#039;none&#039;;identity-credentials-get &#039;none&#039;;idle-detection &#039;none&#039;;keyboard-map &#039;none&#039;;local-fonts &#039;none&#039;;magnetometer &#039;none&#039;;microphone &#039;none&#039;;midi &#039;none&#039;;navigation-override &#039;none&#039;;otp-credentials &#039;none&#039;;payment &#039;none&#039;;picture-in-picture;publickey-credentials-create &#039;none&#039;;publickey-credentials-get &#039;none&#039;;screen-wake-lock &#039;none&#039;;serial &#039;none&#039;;speaker-selection;sync-xhr &#039;none&#039;;usb &#039;none&#039;;web-share;window-management &#039;none&#039;;xr-spatial-tracking &#039;none&#039;;\" allowfullscreen class=\"arve-iframe fitvidsignore\" data-arve=\"arve-youtube-mslibthhfrc\" data-src-no-ap=\"https:\/\/www.youtube.com\/embed\/MslIbThhfrc?feature=oembed&amp;iv_load_policy=3&amp;modestbranding=1&amp;rel=0&amp;autohide=1&amp;playsinline=0&amp;autoplay=0&amp;enablejsapi=1\" frameborder=\"0\" height=\"505.8\" name sandbox=\"allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox\" scrolling=\"no\" src=\"https:\/\/www.youtube.com\/embed\/MslIbThhfrc?feature=oembed&#038;iv_load_policy=3&#038;modestbranding=1&#038;rel=0&#038;autohide=1&#038;playsinline=0&#038;autoplay=1&#038;enablejsapi=1\" width=\"900\" title=\"Bill of Materials BOM\" loading=\"eager\"><\/iframe>\n<\/noscript><img decoding=\"async\" alt=\"Bill of Materials BOM\" src=\"https:\/\/i.ytimg.com\/vi_webp\/MslIbThhfrc\/hqdefault.webp\" srcset=\"https:\/\/i.ytimg.com\/vi_webp\/MslIbThhfrc\/mqdefault.webp 320w, https:\/\/i.ytimg.com\/vi_webp\/MslIbThhfrc\/hqdefault.webp 480w, https:\/\/i.ytimg.com\/vi_webp\/MslIbThhfrc\/sddefault.webp 640w, https:\/\/i.ytimg.com\/vi_webp\/MslIbThhfrc\/hq720.webp 1280w, https:\/\/i.ytimg.com\/vi_webp\/MslIbThhfrc\/maxresdefault.webp 1920w\" class=\"arve-thumbnail\" width=\"480\" height=\"360\" loading=\"lazy\">\n<h5 class=\"arve-title\">\nBill of Materials BOM\n<\/h5>\n<button role=\"button\" type=\"button\" class=\"arve-play-btn arve-play-btn--youtube\" data-target=\"#arve-youtube-mslibthhfrc\" aria-label=\"Play video: Bill of Materials BOM\">\n<svg class=\"arve-play-svg arve-play-svg--youtube\" focusable=\"false\" aria-hidden=\"true\" width=\"68\" viewBox=\"0 0 68 48\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t<path fill=\"#1f1f1e\" fill-opacity=\"0.81\" d=\"m .66,37.62 c 0,0 .66,4.70 2.70,6.77 2.58,2.71 5.98,2.63 7.49,2.91 5.43,.52 23.10,.68 23.12,.68 .00,-1.3e-5 14.29,-0.02 23.81,-0.71 1.32,-0.15 4.22,-0.17 6.81,-2.89 2.03,-2.07 2.70,-6.77 2.70,-6.77 0,0 .67,-5.52 .67,-11.04 l 0,-5.17 c 0,-5.52 -0.67,-11.04 -0.67,-11.04 0,0 -0.66,-4.70 -2.70,-6.77 C 62.03,.86 59.13,.84 57.80,.69 48.28,0 34.00,0 34.00,0 33.97,0 19.69,0 10.18,.69 8.85,.84 5.95,.86 3.36,3.58 1.32,5.65 .66,10.35 .66,10.35 c 0,0 -0.55,4.50 -0.66,9.45 l 0,8.36 c .10,4.94 .66,9.45 .66,9.45 z\"><\/path>\n\t<path fill=\"#fff\" d=\"m 26.96,13.67 18.37,9.62 -18.37,9.55 -0.00,-19.17 z\" ><\/path>\n\t<path fill=\"#ccc\" d=\"M 45.02,23.46 45.32,23.28 26.96,13.67 43.32,24.34 45.02,23.46 z\" ><\/path>\n<\/svg>\n\n<\/button>\n\n<\/div>\n\n<\/div>\n<script type=\"application\/ld+json\">{\"@context\":\"http:\\\/\\\/schema.org\\\/\",\"@id\":\"https:\\\/\\\/fractory.com\\\/bill-of-materials-bom-explained\\\/#arve-youtube-mslibthhfrc\",\"type\":\"VideoObject\",\"embedURL\":\"https:\\\/\\\/www.youtube.com\\\/embed\\\/MslIbThhfrc?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=1&enablejsapi=1\",\"name\":\"Bill of Materials BOM\",\"thumbnailUrl\":\"https:\\\/\\\/i.ytimg.com\\\/vi_webp\\\/MslIbThhfrc\\\/hqdefault.webp\",\"uploadDate\":\"20240715T000000+0100\",\"author\":\"LeanVlog\",\"duration\":\"1M57S\",\"description\":\"The Bill of Materials (BOM) lists all parts and materials needed for product creation and includes instructions. It aids in production planning, inventory control, and cost estimation, crucial for lean manufacturing by reducing waste and improving processes.\"}<\/script>\n<\/div>\n\n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Bill of Materials (BOM) Structure<\/span><\/h2>\n<p>A Bill of Materials (BOM) follows a standard structure. At the top is the finished product, which branches into sub-assemblies and their individual components as the hierarchy progresses downward. The BOM hierarchy resembles a pyramid, with the simplest components, such as <a href=\"https:\/\/fractory.com\/types-of-fasteners\/\">fasteners<\/a>, forming the base. These components combine with others at successive levels, ultimately culminating in the finished product at the apex.<\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Some BOM layouts may also include <a href=\"https:\/\/fractory.com\/engineering-drawing-basics\/\">orthographic projections<\/a> of a product, with all components tabulated at the bottom along with their details.<\/span><\/p>\n<p><span data-color=\"transparent\">The structure of a bill of materials may also change depending on whether it is a <strong>single-level BOM<\/strong> or <strong>multi-level BOM<\/strong>:<\/span><\/p>\n<ul>\n<li><span data-color=\"transparent\"> A single-level BOM places the finished product at the top, with individual components listed just beneath it. There are no sub-assemblies.<\/span><\/li>\n<li><span data-color=\"transparent\">A multi-level BOM is required for parts that have a high number of components and need more than one tier of hierarchy. The product&#8217;s assembly is broken down into sub-assemblies, tier after tier, until the individual components are reached.<\/span><\/li>\n<\/ul>\n<p><span data-color=\"transparent\">A comprehensive bill of materials should include the following information:<\/span><\/p>\n<p data-pm-slice=\"1 1 []\"><strong><span data-color=\"transparent\">Product or Assembly Name<\/span><\/strong><span data-color=\"transparent\"> &#8211; <\/span>Identifies the product or assembly, which is especially important for companies managing multiple product lines.<\/p>\n<p><strong><span data-color=\"transparent\">Part Name<\/span><\/strong><span data-color=\"transparent\"> &#8211; Identifies the part and includes relevant details associated with it.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Part Number <\/span><\/strong><span data-color=\"transparent\">&#8211; <\/span>A unique numeric or alphanumeric identifier is assigned to each part to ensure easy identification. A product may include several similar parts that vary in size or shape. For instance, bolts, which are commonly used as fasteners, can be differentiated by assigning a unique identifier to each type. This approach allows for more effective tracking and management of availability and usage.<\/p>\n<p><strong><span data-color=\"transparent\">Description<\/span><\/strong><span data-color=\"transparent\"> &#8211; Prevents confusion between similar parts by providing any unique information about a part that may be overlooked at first glance. It may include details, such as colour or dimensions.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Quantity<\/span><\/strong><span data-color=\"transparent\"> &#8211; Indicates the number of components in the final product. This helps to plan purchasing and manufacturing activities. Different components may have different units of measurement. The unit may be located in an adjacent column or in the quantity column itself.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">BOM Level <\/span><\/strong><span data-color=\"transparent\">&#8211; A multi-level BOM consists of several levels. The Bill of Materials (BOM) also specifies the level for every component based on its position in the BOM hierarchy.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Manufacturer Details<\/span><\/strong><span data-color=\"transparent\"> &#8211; Including manufacturer details is essential when a product consists of components or sub-assemblies sourced from multiple suppliers.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Part Phase<\/span><\/strong><span data-color=\"transparent\"> &#8211; The term &#8220;part phase&#8221; refers to the stage a part is currently in. For a New Product Introduction (NPI) part, the phase might be labeled as &#8220;unreleased&#8221; or &#8220;in design.&#8221; For a finalised part that has reached the production stage and is on the <\/span><a href=\"https:\/\/fractory.com\/cnc-machine-shop\/\" rel=\"noopener noreferrer\"><span data-color=\"transparent\">machine shop<\/span><\/a><span data-color=\"transparent\"> floor, may be marked as &#8220;in production.&#8221; The part phase may sometimes also include the version of the parts, as they evolve through optimisations.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Alternate Part <\/span><\/strong><span data-color=\"transparent\">&#8211; A column may be added to the BOM to inform the reader of alternative parts to be used if the original part is unavailable.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Component Cost<\/span><\/strong><span data-color=\"transparent\"> &#8211; The component&#8217;s unit cost may also be mentioned alongside their name in some bills of materials. This helps to understand the cost weightage of each component.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Procurement Type<\/span><\/strong><span data-color=\"transparent\"> &#8211; The bill of materials may also specify the <a href=\"https:\/\/fractory.com\/what-is-procurement\/\">procurement method<\/a> for a particular component. For items readily available in the market, the BOM may refer to them as &#8220;off-the-shelf&#8221;. <a href=\"https:\/\/fractory.com\/\">custom-made parts<\/a>, on the other hand, will be referred to as &#8220;made-to-specification&#8221;. This distinction helps us understand that certain parts may have longer lead times than others, enabling the team to plan manufacturing and purchasing activities accordingly.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Priority Analysis<\/span><\/strong><span data-color=\"transparent\"> &#8211; The priority analysis column indicates which components or parts have a higher priority, <\/span>typically requiring greater monetary investments or longer lead times<span data-color=\"transparent\">. This helps to distinguish between critical parts and common parts.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">BOM Notes &amp; Comments<\/span><\/strong><span data-color=\"transparent\"> &#8211; A Bill of Materials (BOM) also includes a notes\/comments section for documenting any changes as the project progresses. For clarity, this section may also include diagrams and assemblies of relevant parts.<\/span><\/p>\n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Types of Bills of Materials<\/span><\/h2>\n<p><span data-color=\"transparent\">Bills of materials are widely used in most product-based companies.<\/span><\/p>\n<p><span data-color=\"transparent\">Although BOMs originated in manufacturing, they have gradually transitioned to other organisational functions. Today, in addition to a Manufacturing BOM, there are various types of bills of materials: Sales BOM, Engineering BOM, Production BOM, Purchasing BOM, Service BOM, and CAD BOM.<\/span><\/p>\n<p><span data-color=\"transparent\">Each Bill of Materials (BOM) plays a crucial role in product development, and all of these BOMs are essential for the relevant department to support its functions and processes. Let&#8217;s take a look at two of the most important bills of materials to understand what they offer.<\/span><\/p>\n<h3 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Engineering BOM<\/span><\/h3>\n<p><span data-color=\"transparent\">The engineering department prepares the Engineering Bill of Materials (EBOM) to define their product. It has a <strong>hierarchical structure<\/strong> with <strong>detailed specifications of each component<\/strong>, such as part number and <a href=\"https:\/\/fractory.com\/engineering-tolerances\/\">tolerances<\/a>. The EBOM is usually created using <a href=\"https:\/\/fractory.com\/cad-advantages\/\">Computer-Aided Design (CAD)<\/a> or Electronic Design Automation (EDA) software.<\/span><\/p>\n<p><span data-color=\"transparent\">An EBOM covers only engineering concerns, such as form, fit and function. It does not concern itself with how parts are manufactured or procured. The EBOM is one of the first BOMs created in product development.<\/span><\/p>\n<h3 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Manufacturing BOM<\/span><\/h3>\n<p><span data-color=\"transparent\">The Manufacturing Bill of Materials (MBOM) is created by the manufacturing team to build the product. Unlike the EBOM, it has a more <\/span><strong><span data-color=\"transparent\">visual format, with diagrams and\/or flowcharts<\/span><\/strong><span data-color=\"transparent\">. Since manufacturing can only begin once the design is finalised, the Manufacturing BOMs are created after EBOMs.<\/span><\/p>\n<p><span data-color=\"transparent\">The manufacturing BOM focuses on how a product is made. It contains detailed information about the manufacturing process, tooling, work instructions, and assembly stages.<\/span><\/p>\n    <div class=\"shortcode-enhanced-cta\">\n        <div class=\"shortcode-enhanced-cta__content\">\n            <span class=\"v2-section-title v2-section-title--md\">Scale Your Manufacturing from Prototyping to Series<\/span>\n\n            <ul class=\"shortcode-enhanced-cta-list\">\n                                                            <li>\n                                                            <div class=\"shortcode-icon\">\n                                    <svg width=\"100%\" height=\"100%\" viewBox=\"0 0 33 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<path d=\"M16.4933 23.3059C21.7413 23.3059 25.9956 19.0515 25.9956 13.8036C25.9956 8.55559 21.7413 4.30127 16.4933 4.30127C11.2453 4.30127 6.991 8.55559 6.991 13.8036C6.991 19.0515 11.2453 23.3059 16.4933 23.3059Z\" stroke=\"currentColor\" stroke-width=\"2\" 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          <\/div>\n                            \n                                                            <span>Personal account manager<\/span>\n                                                    <\/li>\n                                                                                <li>\n                                                            <div class=\"shortcode-icon\">\n                                    <svg width=\"100%\" height=\"100%\" viewBox=\"0 0 33 34\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<path d=\"M17.5835 26.6203C16.8491 26.0906 15.4887 26.1628 14.959 25.4284C14.4293 24.694 14.9229 23.4299 14.6339 22.5631C14.345 21.6963 13.2133 20.986 13.2133 20.059C13.2133 19.1319 14.3691 18.3976 14.6339 17.5548C14.8988 16.7121 14.4293 15.4119 14.959 14.6895C15.4887 13.9672 16.8491 14.0274 17.5835 13.4976C18.3179 12.9679 18.655 11.6436 19.5218 11.3667C20.3886 11.0898 21.412 11.9566 22.351 11.9566C23.2901 11.9566 24.3375 11.1019 25.1802 11.3667C26.0229 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15.6693 30.7617L17.7521 30.8821C17.8484 30.8821 17.9447 30.9303 18.0169 30.9905L19.1847 32.0138C19.4375 32.2305 19.8348 32.0981 19.895 31.773L20.5451 28.679\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M26.9981 26.7046L29.3698 30.0876C29.5625 30.3645 29.3698 30.7497 29.0448 30.7738L26.8055 30.9303C26.7092 30.9303 26.6129 30.9785 26.5406 31.0507L25.5294 31.9897C25.2765 32.2185 24.8792 32.0861 24.807 31.761L24.1569 28.691\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M14.7062 24.7181H3.91912C2.59481 24.7181 1.51129 23.6466 1.51129 22.3103V3.73391C1.51129 2.4096 2.58277 1.32608 3.91912 1.32608H22.5075C23.8318 1.32608 24.9154 2.39756 24.9154 3.73391V11.3186\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M15.4646 1.32608H10.9379V9.81366H15.4646V1.32608Z\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<\/svg>\n                                <\/div>\n                            \n                                                            <span>Quality assurance<\/span>\n                                                    <\/li>\n                                                                                <li>\n                                                            <div class=\"shortcode-icon\">\n                                    <svg width=\"100%\" height=\"100%\" viewBox=\"0 0 35 27\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<path d=\"M17.576 22.1218H4.47786C3.039 22.1218 1.87455 20.7126 1.87455 18.9994V4.93701C1.87455 3.20888 3.039 1.81451 4.47786 1.81451H26.1796C27.6184 1.81451 28.7829 3.20888 28.7829 4.93701V9.53916\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M1.87084 5.5081H28.7866\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M1.87084 11.2636H18.0618\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M6.22453 17.019H10.4299\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M24.5182 25.63C29.2739 25.63 33.1292 21.7747 33.1292 17.019C33.1292 12.2633 29.2739 8.40808 24.5182 8.40808C19.7625 8.40808 15.9072 12.2633 15.9072 17.019C15.9072 21.7747 19.7625 25.63 24.5182 25.63Z\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path d=\"M24.5182 11.0967V17.019L27.7519 20.2528\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<\/svg>\n                                <\/div>\n                            \n                                                            <span>Payment terms for companies<\/span>\n                                                    <\/li>\n                                                                                <li>\n                                                            <div class=\"shortcode-icon\">\n                                    <svg width=\"100%\" height=\"100%\" viewBox=\"0 0 31 33\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Layer_1\" clip-path=\"url(#clip0_874_1102)\">\n<path id=\"Vector\" d=\"M4.02589 18.9188H26.9832V26.7685C26.9832 27.6336 26.282 28.3257 25.426 28.3257H5.58309C4.71798 28.3257 4.02589 27.6245 4.02589 26.7685V18.9188Z\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_2\" d=\"M26.9832 18.9188H4.02589L6.52106 8.96545C6.67587 8.3371 7.24046 7.89999 7.88702 7.89999H23.1312C23.7777 7.89999 24.3423 8.3371 24.4972 8.96545L26.9923 18.9188H26.9832Z\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_3\" d=\"M10.9468 28.3257H6.20233C5.77484 28.3257 5.42828 28.6723 5.42828 29.0998V31.0394C5.42828 31.4669 5.77484 31.8135 6.20233 31.8135H10.9468C11.3743 31.8135 11.7208 31.4669 11.7208 31.0394V29.0998C11.7208 28.6723 11.3743 28.3257 10.9468 28.3257Z\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_4\" d=\"M24.6702 28.3257H19.9257C19.4982 28.3257 19.1517 28.6723 19.1517 29.0998V31.0394C19.1517 31.4669 19.4982 31.8135 19.9257 31.8135H24.6702C25.0977 31.8135 25.4442 31.4669 25.4442 31.0394V29.0998C25.4442 28.6723 25.0977 28.3257 24.6702 28.3257Z\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_5\" d=\"M4.02589 23.8727H2.96955C2.20461 23.8727 1.59447 23.2534 1.59447 22.4976V5.01325C1.59447 3.14643 3.10614 1.63477 4.97296 1.63477H26.0544C27.9212 1.63477 29.4328 3.14643 29.4328 5.01325V22.4885C29.4328 23.2534 28.8136 23.8636 28.0578 23.8636H27.0014\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_6\" d=\"M4.02589 25.2295H10.1181L9.6992 23.8089C9.38048 22.7344 8.39698 22.0059 7.27689 22.0059H4.02589\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_7\" d=\"M26.9832 25.2295H20.891L21.3099 23.8089C21.6286 22.7344 22.6121 22.0059 23.7322 22.0059H26.9832\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_8\" d=\"M15.5 7.89999V10.6501\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<path id=\"Vector_9\" d=\"M12.4858 10.6501H18.5142\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n<\/g>\n<\/svg>\n                                <\/div>\n                            \n                                                            <span>On-time delivery by Fractory<\/span>\n                                                    <\/li>\n                                                                                    <\/ul>\n\n            <a class=\"c-button c-button--sm\" href=\"https:\/\/app.fractory.com\/quotes\/new?lng=en\">Get a quote<\/a>\n        <\/div>\n\n        <div class=\"shortcode-enhanced-cta__media\">\n                            <video class=\"shortcode-video\" autoplay loop muted playsinline>\n                    <source src=\"https:\/\/fractory.com\/wp-content\/uploads\/2023\/01\/homepage-vid-v2.mp4\" type=\"video\/mp4\">\n                <\/video>\n                    <\/div>\n    <\/div>\n    \n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Information Flow Between BOMs<\/span><\/h2>\n<p><span data-color=\"transparent\">All the different BOMs mentioned in the previous section are interconnected. Information flows from the top to the bottom through all the different bills of materials.<\/span><\/p>\n<p>At the start of product development, only the requirements and specifications of the part are available. Using this information, an early bill of materials is generated, listing the assemblies and parts required for the final product.<\/p>\n<p><span data-color=\"transparent\">The engineering department is the end user of the early BOM, as it helps them get a head start. They use the information from the early BOM to generate the Engineering BOM. The Engineering BOM is more comprehensive, benefiting departments like manufacturing, purchasing and servicing.<\/span><\/p>\n<p><span data-color=\"transparent\">Each department uses the Engineering BOM to generate its own BOMs: Manufacturing BOM, Purchasing BOM and Service BOM. For example, if the Engineering BOM specifies that a part requires 6 M12 bolts, the purchasing department would order 600 M12 screws if the company plans to manufacture 100 finished products. So, in a way, the supporting departments are the actual consumers of the Engineering BOM.<\/span><\/p>\n<p><span data-color=\"transparent\">In complex industries, such as the automotive and aerospace, all bills of materials play an important role. The components that form the product may be manufactured in-house or sourced from <\/span><a href=\"https:\/\/fractory.com\/supplier-tiers-explained\/\" rel=\"noopener noreferrer\"><span data-color=\"transparent\">Tier 1, Tier 2 and Tier 3 suppliers<\/span><\/a><span data-color=\"transparent\">. Parallel products may be manufactured simultaneously. Some components may be common to multiple products, while others may be unique to each product.<\/span><\/p>\n<p data-pm-slice=\"1 1 []\">Effective optimisation of inventory and supply chain management requires a purchasing bill of materials that serves as a reference point for all stakeholders. This ensures alignment and prevents both shortages and wastage. However, <strong>not all types of BOMs are necessary for every company<\/strong>. <span data-color=\"transparent\">Smaller companies, that do not have high purchasing requirements, can operate without a purchasing BOM.<\/span><\/p>\n<h2 data-pm-slice=\"1 3 []\"><span data-color=\"transparent\">How to Create a Bill of Materials<\/span><\/h2>\n<p><span data-color=\"transparent\">A bill of materials needs to be as comprehensive as possible without including any unnecessary information. Let\u2019s break down the process of creating a general bill of materials when starting from scratch:<\/span><\/p>\n<h3><span data-color=\"transparent\">Step 1: Understand the Product<\/span><\/h3>\n<p><span data-color=\"transparent\">Start by defining the product and the goal of the bill of materials. By understanding the objective, irrelevant information can be filtered out. Pay attention to the design, specifications and all product documentation.<\/span><\/p>\n<h3><span data-color=\"transparent\">Step 2: List All Parts<\/span><\/h3>\n<p><span data-color=\"transparent\">Break the product down into its sub-assemblies, components and materials. Try to delve as deep as possible to identify each component separately.<\/span><\/p>\n<h3><span data-color=\"transparent\">Step 3: Identify Part Numbers and Other Part-Specific Information<\/span><\/h3>\n<p><span data-color=\"transparent\">In this step, gather specific information about each part of the Bill of Materials (BOM). This could be the manufacturer\u2019s part number, description, part colour, dimensions, weight or any other relevant measurement. You may want to <\/span><strong><span data-color=\"transparent\">include part revision numbers to track changes<\/span><\/strong><span data-color=\"transparent\"> over time.<\/span><\/p>\n<h3><span data-color=\"transparent\">Step 4: Create the Bill of Materials (BOM) Structure<\/span><\/h3>\n<p><span data-color=\"transparent\">The product determines the format. When dealing with a product with just a few components, a single-level BOM is efficient. For complex parts, a multi-level BOM would be more appropriate. Choose the relevant information gathered in Step 3 and organise the components in a hierarchical structure. The individual components are at the bottom. Moving up, these components are combined to form sub-assemblies that eventually lead to the final product. The final structure should look like a tree root or a pyramid.<\/span><\/p>\n<h3><span data-color=\"transparent\">Additional Tips<\/span><\/h3>\n<ol>\n<li>\n<p><span data-color=\"transparent\">Include sufficient visual aids, such as drawings and diagrams.<\/span><\/p>\n<\/li>\n<li>\n<p><span data-color=\"transparent\">Mention the manufacturers and suppliers of the different components in the BOM.<\/span><\/p>\n<\/li>\n<li>\n<p><span data-color=\"transparent\">Manual bills of materials are prone to errors and difficult to modify. Invest in good BOM software for a better experience.<\/span><\/p>\n<\/li>\n<li>\n<p><span data-color=\"transparent\">For clarity and consistency, use standard formats, terms and units.<\/span><\/p>\n<\/li>\n<\/ol>\n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Optimising a Bill of Materials<\/span><\/h2>\n<p><span data-color=\"transparent\">If you already have a BOM, you may be looking for tips to improve it. A bill of materials is an excellent tool, but it needs consistent maintenance. The following tips can help you optimise your current BOM to ensure you have the best version at all times.<\/span><\/p>\n<h3><span data-color=\"transparent\">Review at Regular Intervals<\/span><\/h3>\n<p><span data-color=\"transparent\">The most important feature of a BOM is that it accurately represents a process. However, product changes and updates occur regularly in most products. Therefore, BOMs have to be reviewed and updated regularly to reflect these changes correctly.<\/span><\/p>\n<h3><span data-color=\"transparent\">Cross-Functional Review<\/span><\/h3>\n<p><span data-color=\"transparent\">Discussing BOM among the various departments can reveal any missed information and how it could be included. This would make the BOM more accurate and complete than before.<\/span><\/p>\n<h3><span data-color=\"transparent\">Add Visual Aids<\/span><\/h3>\n<p><span data-color=\"transparent\">Add visual aids where necessary, such as images, diagrams and drawings, to enhance clarity and understanding of complex assemblies.<\/span><\/p>\n<h3><span data-color=\"transparent\">Integrate with Other Systems<\/span><\/h3>\n<p><span data-color=\"transparent\">Integrating the BOM with other systems, such as ERP and PLM, can make editing easier and allow <\/span><strong><span data-color=\"transparent\">better version control<\/span><\/strong><span data-color=\"transparent\">.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-24302\" src=\"https:\/\/fractory.com\/wp-content\/uploads\/2024\/11\/bom-integration-1.jpg\" alt=\"Integration of design data and processes into ERM and PLM.\" width=\"1000\" height=\"748\" srcset=\"https:\/\/fractory.com\/wp-content\/uploads\/2024\/11\/bom-integration-1.jpg 1000w, https:\/\/fractory.com\/wp-content\/uploads\/2024\/11\/bom-integration-1-300x224.jpg 300w, https:\/\/fractory.com\/wp-content\/uploads\/2024\/11\/bom-integration-1-768x574.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Benefits of Using a Bill of Materials<\/span><\/h2>\n<p><span data-color=\"transparent\">As pointed out in previous sections, a bill of materials serves various functions in different departments. Naturally, it also provides different benefits to each of them. In this section, you&#8217;ll find the benefits offered by the two most common bills of materials: the Engineering BOM and the Manufacturing BOM.<\/span><\/p>\n<h3 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Benefits of an Engineering BOM (EBOM)<\/span><\/h3>\n<p><span data-color=\"transparent\">The Engineering BOM provides immense value not only to the engineering department but also to departments that support engineering, such as sales, purchasing and manufacturing. Investing in this tool helps engineering departments enhance efficiency and achieve their objectives. Let&#8217;s take a look at some specific advantages that an EBOM provides:<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Improved Product Quality<\/span><\/strong><span data-color=\"transparent\"> &#8211; The engineering bill of materials helps to enhance product quality over time by reinforcing design practices, minimising errors and reducing the need for rework.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Design Accuracy<\/span><\/strong><span data-color=\"transparent\"> &#8211; Having a standardised EBOM enables the team to have a clear understanding of the various components, their design specifications and functionality. This enhances overall design accuracy.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Avoiding Downstream Problems<\/span><\/strong><span data-color=\"transparent\"> &#8211; The team creates the EBOM during the design phase. This allows the engineers to identify and resolve potential issues well in advance, preventing costly corrections downstream.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Effective Communication<\/span><\/strong><span data-color=\"transparent\"> &#8211; A picture speaks a thousand words. An EBOM is a comprehensive document that systematically lays out the form, fit and function of the proposed product and its components. This enables effective communication among the interdisciplinary teams involved in the <a href=\"https:\/\/fractory.com\/design-for-x-dfx\/\">product development process<\/a>.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Version Control<\/span><\/strong><span data-color=\"transparent\"> &#8211; A product may undergo many changes throughout the production process. These changes need to be tracked, documented and communicated to all stakeholders as soon as they are finalised. An EBOM with version control capabilities allows us to manage changes during the design phase and ensures that everyone has access to the most up-to-date and accurate information.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Synergy with PLM Software<\/span><\/strong><span data-color=\"transparent\"> &#8211; The engineering bill of materials can be integrated with Product Lifecycle Management (PLM) software to oversee product data <a href=\"https:\/\/fractory.com\/product-life-cycle-explained\/\">throughout its lifecycle<\/a>. The integration is fast and seamless, offering the benefits of centralisation.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Failure Cause Identification<\/span><\/strong><span data-color=\"transparent\"> &#8211; An accurate BOM helps identify the cause of product failure and facilitates the replacement of faulty components or materials.<\/span><\/p>\n<h3 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Benefits of a Manufacturing BOM (MBOM)<\/span><\/h3>\n<p><span data-color=\"transparent\">The Manufacturing BOM serves as the central document for the manufacturing team. It is derived from the Engineering BOM and contains all the information relevant to manufacturing the product. Having an exhaustive and well-updated Manufacturing Bill of Materials (MBOM) provides the following advantages.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Improved Production Planning<\/span><\/strong><span data-color=\"transparent\"> &#8211; The MBOM contains a comprehensive list of components along with all the required specifications and essential raw materials needed for manufacturing. This helps in accurate resource allocation and production planning. The BOM is also a prerequisite for designing Enterprise Resource Planning (ERP) and Materials Requirement Planning (MRP) systems.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Errors Minimised <\/span><\/strong><span data-color=\"transparent\">&#8211; Most errors in a manufacturing setup occur during the manufacturing and assembly of parts. Having a BOM standardises these manufacturing processes for all the concerned employees and reduces the chances of errors.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Improved Inventory Management <\/span><\/strong><span data-color=\"transparent\">&#8211; A clear and well-structured BOM helps maintain the appropriate inventory levels for production needs. It enables the anticipation of demand and ensures timely fulfillment while minimising <a href=\"https:\/\/fractory.com\/transportation-cost-explained\/\">logistics costs<\/a>. This approach prevents common inventory issues such as stockouts, overstocking and backorders, as well as their cascading effects, including lost productivity, production delays and downtime.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Time Savings<\/span><\/strong><span data-color=\"transparent\"> &#8211; Having a centralised document containing all the part details leads to time savings across the board. Details, such as part numbers, part colours and the <a href=\"https:\/\/fractory.com\/common-metal-fabrication-processes\/\">fabrication process<\/a> in which they will be used, can be easily revised by referring to the MBOM in case of any confusion. Items can be located within minutes in the store. Small time savings add up and improve the overall productivity and efficiency of the manufacturing operations.<\/span><\/p>\n<p><strong><span data-color=\"transparent\">Budget Control<\/span><\/strong><span data-color=\"transparent\"> &#8211; An MBOM can reduce waste and improve time management, ultimately helping an organisation maintain control over budget.<\/span><\/p>\n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Conclusion<\/span><\/h2>\n<p><span data-color=\"transparent\">All in all, a bill of materials is an essential tool for any company that wants to improve its production efficiency. A good BOM, through specifications, quantities and component details, improves collaboration among the various teams and streamlines workflows.<\/span><\/p>\n<p><span data-color=\"transparent\">The benefits reach beyond the shop floor. A well-structured BOM allows to control inventory, production cost and product quality. A direct beneficial impact can seen in the accuracy and efficiency of the setup, and an indirect impact appears in customer satisfaction.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Bill of Materials (BOM) is a tool that helps to simplify complex products and industrial processes. Think of a product, such as a car, that is composed of 10,000 [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":24336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6485,6488,6536],"tags":[],"yst_prominent_words":[133,348,1133,2339],"class_list":["post-24295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cad-cam","category-project-management","category-procurement"],"acf":[],"_links":{"self":[{"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/posts\/24295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/comments?post=24295"}],"version-history":[{"count":6,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/posts\/24295\/revisions"}],"predecessor-version":[{"id":24343,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/posts\/24295\/revisions\/24343"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/media\/24336"}],"wp:attachment":[{"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/media?parent=24295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/categories?post=24295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/tags?post=24295"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/fractory.com\/wp-json\/wp\/v2\/yst_prominent_words?post=24295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}