Bill of Materials

Contents

Definition of a bill of materials How a bill of materials is used Types of bill of materials Bill of materials information Benefits of a bill of materials Examples of bill of materials
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Definition

Bill of materials (BOM): a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product.

Each finished product has its own bill of materials.

Product structure tree: Visual depiction of the requirements in a bill of materials, where all components are listed by levels.

3 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) input.

Processes that utilize a BOM

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

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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

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Structure of a BOM

What information is on a BOM?

1.
2. 3. 4. 5.

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.

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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.

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Description of Item

Provides a check that the correct item is being ordered.

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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.

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Total Project Cost

Shows the total cost of all items and is also the total cost of the direct materials used in the project.
Example:

Seat-$10, Back-$5, Leg-$5 per leg, Nail-$.5 per nail Total Cost of a chair = 10 + 5 + 5*4 + .5*5 = $37.50
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BOM Example
Quantity Cost
1 4 1 5

ID#
6TU8 5DR 2PC 1

Description
Back Legs Seat Nails

Unit Price
$5/Unit $5/Unit $10/Unit $0.50/Unit

Total
$ 5.00 20.00 10.00 2.50 $37.50

Total Project Cost

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Assembly Diagram & Product Structure Tree

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Example

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Example 1 (Cont.)

Using the information above to do the follows:

a) Determine the quantities of B, C, D, E, and F needed to assemble one X.

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a).

X X Solution to Example 1:1

B : 2 1 2 B(2) D : 3 2 6 D(3) E : 4 6 24
E(4)

C : 11 1

E :1 2 2

E : 2 1 2 F : 2 1 2

E(2)

F(2)

Thus, one X will require B: 2 C: 1 D:6 F: 2 E: 28 (Note that E occurs in three places, with 2+2+24)
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Example 1 (Cont.)

Using the information above to do the follows: a) Determine the quantities of B, C, D, E, and F needed to assemble one X. b) Determine the quantities of B, C, D, E, and F needed to assemble ten X's, if you have the following in inventory:

Component On hand B 4 C 10 D 8 E 60
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b).

X X1 Solution to Example (Cont.) : 10

4 B(2) 16

Component On hand B 4 C 10 D 8 E 60

B : 2 10 20

C :110 10

10 C 0

D : 316 48

8 D(3) 40

E :116 16

E(2)

E:0

F(2)

F :0

E(4)

Thus, given the amounts of on-hand inventory, 10 Xs will require

E : 4 40 160
60 100

B: 16 D: 40

C: 0 F: 0
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E: 116 (=16+100)