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.

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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

ID#

Description

Unit Price

Total

1
4
1
5

6TU8
5DR
2PC
1

Back
Legs
Seat
Nails

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

$ 5.00
20.00
10.00
2.50

Total Project Cost

$37.50

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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)

E : 4 6 24

E :1 2 2

E(2)

C : 11 1

F(2)

E : 2 1 2 F : 2 1 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).

Component On hand
B
4
C
10
D
8
E
60

X X1: 10
Solution to Example
(Cont.)

B : 2 10 20

C :110 10

4 B(2)
16

10 C
0

D : 316 48

8 D(3)
40

E(4)

E : 4 40 160
60
100

E :116 16

E:0

E(2)

F :0

F(2)

Thus, given the amounts of on-hand

inventory, 10 Xs will require

B: 16

C: 0

D: 40

F: 0

E: 116 (=16+100)

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