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What is Bill of Materials (BOM)

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BatchMaster Software

Bill-of-materials or the BOM is an important term in the manufacturing industry. Go through the Presentation to know its meaning, purpose, and how an ERP supports it.

  • A centralized source of information used to manufacture a product.
  • Denotes a list of raw materials, sub-assemblies, sub-components, parts, and the quantities of each needed to manufacture an end product.
  • An engineering term that completely showcases the design of a product. Manufacturers that build products start the assembly process by creating a BOM.

Types of Bill of MaterialsBill of Materials

Includes detailed instructions on how to assemble the product – from inception to the finished product ready for shipping – including all the packaging, labeling etc.

 Single-Level BOM
  • The simplest list for manufacturing a product.
  • Can be used where there are no complex processing steps or sub-assemblies.

Multi-Level BOM

  • The list not only contains the final assembly items but also the materials and quantities used in every step below.
  • Allows creation of parent/child relationships and can generate more complex and accurate costing down to the raw material stage.
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