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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