Professional Documents
Culture Documents
Janean F. Lulloff
Business Management 361 Section 1
Dr. Foster
Marriott School
Brigham Young University
Contents of Tutorial
Definition
Bill of Materials (BOM)
A listing of all the subassemblies,
intermediates, parts, and raw materials that
go into a parent assembly showing the
quantity of each required to make an
assembly.
Bozarth, Cecil C. and Handfield, Robert B. Introduction to Operations and Supply Chain Management
. Pearson Education, Inc., Upper Saddle River, New Jersey, 2006. p.461.
Definition Explained
Basically, a bill of material (BOM) is a
complete list of the components making up
an object or assembly.
It is also part of material requirements
planning (MRP)
Production
Materials planning
Product costing
Plant maintenance
Types of BOMs
Static (fixed) bill
A bill of material for a part that is normally made from
the same components, labor and raw materials.
Used for standard assemblies, components, and
engineer-to-order customer orders.
Example:
A bill of materials for a standard chair
Types of BOMs
Dynamic (parametric) bill
A bill of material for a product or part for which
size, color, laminate, and other options can be
selected.
Example:
A bill of materials for a Dell computer
Types of BOMs
Single level bill of material
A bill of material that lists the materials, parts
and labor required to make another part.
Example:
A bill of materials to make a Dell computer
Types of BOMs
Multilevel bill of material
A bill of material that lists the components, assemblies,
and materials required to make a part, the components,
assemblies, and materials required to make each
component and assembly of the part, and so forth.
Example:
A BOM for the battery inside the Dell computer.
Structure of a BOM
Quantity
Item ID#
Description of Item
Cost of Item
Total Project Cost
Quantity
Tells user how many of each part is needed
for each project
Example:
A chair needs 1 seat, 4 legs, 1 back, and 5 nails.
Item ID #
Tells us which part to order
Can be any of the following:
Catalog number, UPC, or any other identification
number.
Example:
The chair needs a 2PC seat, 5DR legs, 6TU8 back, and
1 inch nails.
Description of Item
Provides a check that the correct item is
being ordered.
Cost of Item
Cost is included to show how much each part is
per item and the total cost of all like parts.
Example:
The cost of a leg is $5 per leg. Then the total price of
the legs ordered would be $20 because there are 4 legs.
Benefits of a BOM
Optimize engineering, planning and purchasing efforts by
providing centralized and up-to-date information in MakeTo-Stock, Repetitive, JIT or Job Shop environments.
Improve material management by responding to changes in
production.
Reduce inventory levels and obsolete parts.
Reduce manufacturing costs.
Benefits of a BOM
Minimize clerical and engineering efforts by optimizing
the tasks of maintaining and changing multi-level bills.
What-If capabilities for estimating or quoting.
Supports variable length part numbers and unlimited
descriptive text.
Easy methods for accessing part information
BOM Example
Quantity
ID#
Description
Unit Price
Total Cost
1
4
1
5
6TU8
5DR
2PC
1
Back
Legs
Seat
Nails
$5/Unit
$5/Unit
$10/Unit
$0.50/Unit
$ 5.00
20.00
10.00
2.50
$37.50
BOM Example
161kV H-Frame Tangent
Quantity
2
1
2
Catalog No.
5860-3545
W4104-4S
12
1
W5050-3S
41058BS
41058BB
DP1-457-156-156
DP1-457-156-156W
Description
70-foot Wood Pole
Crossarm Shop Assembly
Crossarm, 3-5/8" x 9-1/2" x
32'-0", Laminated
Adjustable Spacer Filling
Assembly, 8-3/4" to 12-3/4
Bolt, Washerhead, 1/2" x 101/2", SN
Bolt, Washerhead, 5/8" x 5", SN
Bolt, Bent Double End 7/8" x
8", 2SN, 2MF
Bolt, Bent Machine 7/8" x 6", SN,
MF
BOM Example
Project Bill of Materials
Pine Lake HomeSites
Cost Item
Site Development
Clearing & Grading
Paving
Curb & Gutter
Sanitary Sewer
Storm Sewer
Water
Entrance
Power & Street Lighting
Amenity
Contingency
35,000.00
Quantity
Cost/Item
Total $
1.00 Each
1.00 Each
1.00 Each
1.00 Each
1.00 Each
1.00 Each
1.00 Each
1.00 Each
1.00 Each
59,429.00
114,549.00
64,232.00
158,810.00
61,277.00
63,602.00
36,000.00
9,300.00
270,000.00
59,429.00
114,549.00
64,232.00
158,810.00
61,277.00
63,602.00
36,000.00
9,300.00
270,000.00
1.00 Each
35,000.00
Total Site Development
$872,199.00
References