BOM
A Bill of Materials (BOM) lists the components (and quantities) needed to make a product, the recipe for manufacturing. It is fundamental master data in PP, driving material planning and production.
The BOM drives MRP (what components to plan/procure), production orders (what to consume), and product costing (roll-up of component costs).
- A BOM is a structured list of the components required to produce a finished or semi-finished product, each with a quantity.
- Header & items: the product and its components.
- BOM usage: e.g. production, engineering, costing.
- Watch out: Inaccurate BOM, wrong planning/production/costing.
What a BOM is
A BOM is a structured list of the components required to produce a finished or semi-finished product, each with a quantity. For a bicycle, the BOM lists the frame, wheels, chain and so on. BOMs can be multi-level (components that themselves have BOMs), forming the product structure.
Key concepts
- Header & items: the product and its components.
- BOM usage: e.g. production, engineering, costing.
- Multi-level BOMs and where-used lists.
- Alternative & variant BOMs for product variants.
Why it matters
The BOM drives MRP (what components to plan/procure), production orders (what to consume), and product costing (roll-up of component costs). An incorrect BOM causes wrong planning, wrong production and wrong costs, so BOM accuracy is critical. It works together with the routing (the steps) to define how a product is made.
Common pitfalls
- Inaccurate BOM, wrong planning/production/costing.
- Wrong BOM usage selected.
- Not maintaining variants/alternatives.