Bill of Materials

Janean F. Lulloff
Business Management 361 Section 1 Dr. Foster Marriott School Brigham Young University

Contents of Tutorial
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

Definition
Bill of Materials (BOM) A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly.
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)

Processes that utilize a BOM

Production Materials planning Product costing Plant maintenance

How can a BOM be used in your organization?

Several software programs are available that store item information and prepare bill of materials automatically

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

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

Types of BOMs
Single level bill of material
A bill of material that lists the materials, parts and labor required to make another part.

Example:
A bill of materials to make a Dell computer

Types of BOMs
Multilevel bill of material
A bill of material that lists the components, assemblies, and materials required to make a part, the components, assemblies, and materials required to make each component and assembly of the part, and so forth.

Example:
A BOM for the battery inside the Dell computer.

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.

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.

Description of Item
Provides a check that the correct item is being ordered.

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.

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

Benefits of a BOM
Optimize engineering, planning and purchasing efforts by providing centralized and up-to-date information in MakeTo-Stock, Repetitive, JIT or Job Shop environments. Improve material management by responding to changes in production.

Reduce inventory levels and obsolete parts.

Reduce manufacturing costs.

Benefits of a BOM
Minimize clerical and engineering efforts by optimizing the tasks of maintaining and changing multi-level bills.

What-If capabilities for estimating or quoting.

Supports variable length part numbers and unlimited descriptive text. Easy methods for accessing part information

BOM Example
Quantity
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 Cost
$ 5.00 20.00 10.00 2.50 $37.50

Total Project Cost

BOM Example
161kV H-Frame Tangent
Quantity 2 1 2 3 6 12 1 2 Catalog No. DP1-457-156-156 DP1-457-156-156W 5860-3545 W4104-4S W5050-3S 41058BS 41058BB Description 70-foot Wood Pole Crossarm Shop Assembly Crossarm, 3-5/8" x 9-1/2" x 32'-0", Laminated Adjustable Spacer Filling Assembly, 8-3/4" to 12-3/4 Bolt, Washerhead, 1/2" x 101/2", SN Bolt, Washerhead, 5/8" x 5", SN Bolt, Bent Double End 7/8" x 8", 2SN, 2MF Bolt, Bent Machine 7/8" x 6", SN, MF

BOM Example
Project Bill of Materials
Pine Lake HomeSites
Cost Item Site Development Clearing & Grading Paving Curb & Gutter Sanitary Sewer Storm Sewer Water Entrance Power & Street Lighting Amenity Contingency Quantity 1.00 Each 1.00 Each 1.00 Each 1.00 Each 1.00 Each 1.00 Each 1.00 Each 1.00 Each 1.00 Each 1.00 Each Cost/Item 59,429.00 114,549.00 64,232.00 158,810.00 61,277.00 63,602.00 36,000.00 9,300.00 270,000.00 35,000.00 Total Site Development Total $ 59,429.00 114,549.00 64,232.00 158,810.00 61,277.00 63,602.00 36,000.00 9,300.00 270,000.00 35,000.00 $872,199.00

Screenshots of BOM Software

Screenshots of BOM Software

References
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. help.sap.com/saphelp_40b/helpdata/en/cd/daf2cd4ab011d18a0f0000e816ae6e/ content.htm www.grms.com/BillsofMaterial.htm www.feldmanengineering.com/BoM_Glossary.htm www.brooksmfg.com/bom.html www.planease.com/samples/unitsales/projectbill.htm