Imagine going to a supermarket without a list containing the items you need to buy. It will get chaotic right? You will end up buying things you do not actually need and miss out on many essential items.
Similar to this, Bill of Materials acts just like the shopping list in the world of manufacturing. Just like your household would be a total miss if you did not get the correct items, manufacturing products would be impossible without a Bill of Materials.
In today’s blog, we will discuss what a Bill of Materials is, what are its types and what are the advantages of the Bill of Materials.
What is the Bill of Materials?
Bill of Materials or BoM is a combined list of all components, sub-assemblies, raw materials and instructions combined to produce, repair or manufacture a product.
A Bill of Materials essentially contains how much of an item is needed at the moment, its name and its description. BoM also acts as an instruction manual in the production line as it contains instructions such as how to acquire the necessary materials and how they will be used within the factory.
Hence, a bill of materials is a central document that records everything you need in manufacturing a product. The more accurate your BoM is, the more likely it is that you will catch some errors in the production line and you will be able to replace the problem part or material rather quickly.
Key Elements within the Bill of Materials
Following list contains key elements found in the Bill of Materials –
Item number –
Item number is a unique number used in identifying a specific component or material. This is how anyone in the production line is able to identify a component or material quickly.
Material description –
Material description has the same purpose as the item number. But, as its name suggests, material description is a detailed characterisation of materials. They provide more details about materials when compared to the item number.
Quantity –
The quantity represents how much of each component will be used in an assembly or sub-assembly.
BoM level –
BoM level represents a special number which shows where each component fits according to the BoM hierarchy.
Raw material –
The BoM specifies the exact quality and type of raw materials required in a production line.
Notes –
Notes include additional specified information that might be useful for anyone who is taking a look at the BoM.
Types of Bill of Materials
Engineering BoM (EBoM)
An Engineering BoM is a technical drawing of the finished product. It is developed when the product is being designed. Meaning, it defines the finished product’s design. Engineering BoM’s are made by engineers using softwares such as computer-aided design (CAD).
Manufacturing BoM (MBoM)
A Manufacturing BoM consists of all the parts and assemblies needed to finish a product. This BoM is used during the process of production and it also includes the items which go to waste during manufacturing.
A MBoM captures the details of parts needed in different production stages. This helps in better understanding of when specific products are needed for ultimately matching with the finished product deadline.
Sales BoM (SBoM)
Sales BoM is generated through the sales order and it contains the records of both finished products as well as components as per the sales record.
Conclusion
Bill of Materials is undeniably the backbone of any production line. BoM serves as a broad guiding list containing information from raw materials till the product is finished. It optimizes efficiency, reduces costs and ensures product quality by accurately detailing components and assembly instructions.
By implementing effective BoM strategies, organisations can gain a competitive edge in today’s robust market.
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Frequently Asked Questions (FAQs)
What is the difference between an EBOM and an MBOM?
An Engineering BoM is focused on product design while a Manufacturing BoM details the components needed for actual production.
How often should a BOM be updated?
Updating BoM effectively is crucial. It should be updated regularly for accurately reflecting changes in material availability and manufacturing processes.
Can a BOM be used for cost estimation?
One of the major advantages of the bill of materials is that it helps in estimating the cost beforehand. Therefore, Yes, BoMs can be used to estimate product costs.
How can I ensure the accuracy of my BOM?
Ensuring the accuracy of a BoM can be done with regular audits, cross-checking with engineering drawings and involving key stakeholders in the BoM creation process.