Bill of Materials

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    Bills of material are among the most crucial inputs in material requirements planning. There are many different types of bills of material.  Establishing, managing your bills of material and keeping them up to date will make building items much more effective.  It will prevent defects and help avoid over processing waste.  So, what is a bill of materials?

​A bill of materials or BOM, is a list of all the raw materials, components, subassemblies and intermediate parts that go into a parent assembly.  The bill of materials will show you the quantity of each required to make an assembly.  For example, a skateboard would need 4 wheels, 1 board, 2 axles and 8 screws on the first level.  The bill of materials works with the Master production schedule to determine a time phased plan of requirements that are needed.  Purchase reqs, planned orders and suggested releases or production orders are generated.  MRP will also generate other notifications, actions and exceptions for planners to act on or consider.  There are many different ways that a bill of material is displayed.  Some examples are the single-level bill of material, indented bill of material and modular, or, planning bills of material.
What is a Bill of Materials Explosion?

• A Bill of Materials (BOM) explosion is a process within Material Requirements Planning (MRP) that involves breaking down a product’s BOM into its individual components and subassemblies.  This detailed breakdown helps in identifying the quantity and type of materials required at each stage of production.  The BOM explosion is crucial for accurate inventory planning, procurement, and production scheduling.

What are some Key Aspects of a BOM Explosion?

1. Hierarchical Decomposition: The BOM explosion takes a hierarchical approach, starting with the finished product and decomposing it into its raw materials, components, and subassemblies.  This process ensures every single part required for production is accounted for.
2. Quantitative Analysis: It determines the precise quantities of each component needed to produce the final product, based on the relationships and quantities specified in the BOM.
3. Multi-Level Planning: For complex products, the BOM explosion extends through multiple levels, detailing every component at each level of assembly.
4. Inventory Management: By understanding the detailed requirements for each component, businesses can better manage inventory levels, ensuring that materials are available when needed while avoiding excess stock.

References

• Infor. "What is a BOM (Bill of Materials)?" Retrieved from Infor.
• MRPeasy. "The Bill of Materials: Your Guide to Using a BOM in Manufacturing." Retrieved from MRPeasy.
• Wikipedia. "Bill of Materials." Retrieved from Wikipedia.

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