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Bill of materials

 
Marketing Dictionary: bill of materials
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Document used by a manufacturer or other business to authorize a set of purchases to be made or to request materials to be pulled from inventory in order to fulfill a customer order. The bill of materials indicates the specifications for each item and the company representative to whom delivery should be made. Marketers of industrial goods and raw materials can gain insight into the buying habits of their customers from the information in the bill of materials, including who is authorizing the purchase and/or selecting the vendors and what product characteristics drive their decisions. A bill of materials is also used to provide input to cost accounting systems in order to calculate the cost of goods produced.

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Accounting Dictionary: Bill of Materials (BOM)
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Listing of all the assemblies, subassemblies, parts, and raw materials that are needed to produce one unit of a finished product. Thus, each finished product has its own bill of materials. The listing in the bill of materials file is hierarchical; it shows the quantity of each item needed to complete one unit of the next-highest level of assembly.

Wikipedia: Bill of materials
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 This article may require cleanup to meet Wikipedia's quality standards. Please improve this article if you can. (September 2008)

Bill of materials (BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of each needed to manufacture an end item (final product) .[1] .[2]

It may be used for communication between manufacturing partners,[3] or confined to a single manufacturing plant.

A BOM can define products as they are designed (engineering bill of materials), as they are ordered (sales bill of materials), as they are built (manufacturing bill of materials), or as they are maintained (service bill of materials). The different types of BOMs depend on the business need and use for which they are intended. In process industries, the BOM is also known as the formula, recipe, or ingredients list. In electronics, the BOM represents the list of components used on the printed wiring board or printed circuit board. Once the design of the circuit is completed, the BOM list is passed on to the PCB layout engineer as well as component engineer who will procure the components required for the design.

BOMs are hierarchical in nature with the top level representing the finished product which may be a sub-assembly or a completed item. BOMs that describe the sub-assemblies are referred to as modular BOMs. An example of this is the NAAMS BOM that is used in the automative industry to list all the components in an assembly line. The structure of the NAAMS BOM is System, Line, Tool, Unit and Detail.

The first hierarchical databases were developed for automating bills of materials for manufacturing organizations in the early 1960s.[4]

A bill of materials "implosion" links component pieces to a major assembly, while a bill of materials "explosion" breaks apart each assembly or sub-assembly into its component parts.

A BOM can be displayed in the following formats:

  • A single-level BOM that displays the assembly or sub-assembly with only one level of children. Thus it displays the components directly needed to make the assembly or sub-assembly.[5]
  • An indented BOM that displays the highest-level item closest to the left margin and the components used in that item indented more to the right.[1]
  • Modular (planning) BOM

A BOM can also be visually represented by a product structure tree, although they are rarely used in the workplace.[1]

References

  1. ^ a b c Reid, R. Dan; Sanders, Nada R. (2002). Operations Management. John Wiley & Sons. pp. 457–458. ISBN 0-471-32011-0. 
  2. ^ Monk, Ellen; Wagner, Bret (2009). Concepts in Enterprise Resource Planning. Course Technology Cengage Learning. pp. 97–98. ISBN 1-4239-0179-7. 
  3. ^ "In Search of the Perfect Bill of Materials (BoM)" (PDF). National Electronics Manufacturing Initiative Inc.. March 2002. http://thor.inemi.org/webdownload/newsroom/Articles/BoMwhitepaper.pdf. Retrieved 2008-09-28. "As the primary conduit for data transfer among manufacturing partners, the BoM is central to the product life cycle from the very beginning." 
  4. ^ "Bill of Materials". The Free Dictionary. http://encyclopedia2.thefreedictionary.com/Bill+of+materials. Retrieved 2008-09-28. 
  5. ^ "Bill of Materials". Inventory Interface. http://www.inventoryinterface.com/bill_of_materials.htm. 
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Marketing Dictionary. Dictionary of Marketing Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more
Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Bill of materials".  Read more