BOMis the term used to describe the "parts list" of
components needed to complete a saleable Finished Goods (end-item).
Referred as recipe.
A bill of
material is a formally structured list for a ‘father item’ or factory made item
(semi-finished or subassembly or finished) which lists all the component parts
of the father item with the name, quantity, and unit of measure of each
component, called ‘child item’ in ERP. Whenever the design changes user
should update the BOM. ERP will give ‘revision number’ automatically. User can
make BOM up to ‘n’ level, in other words there is no limit in ERP for making
multi-level BOM. The semi-finished goods is also called ‘Factory made item’.
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Manufacturing Industry, Samosa, UPS, ERP, The Kick-Start Meeting, ERP
Presentation, Video Lecture By Jyotindra Zaveri
Zaveri has helped different verticals to make Bill of
Examples of BOM such as, BOM for automobile ancillary, BOM
for discreet product, BOM for construction industry, BOM for corrugated box, BOM
for large industrial systems, BOM for special purpose machines, BOM for project
base industry BOM for
assembled products, etc. is shown above. To view various examples of
BOM click on the thumbnail view above. These examples are just to
learn the concept of the BOM, actual BOM may be somewhat different than shown
BOM module is
an important module in ERP. BOM is a pivot around which ERP rotates. However,
this requires good amount of time and effort to make the master data file.
Usually the technical person, design experts, or a person who knows how the
final product is made prepares the BOM. In other words, anybody and everybody
in an organization is not permitted to access the BOM master. This is one time
effort, but must be done to get full benefit of ERP software. If the
product is not standard or child items are not standard, it may result into many
BOMs, that is why it may be a good idea to standardize the child items as much
In ERP create the BOM master database.
User can export the BOM to MS Excel sheet format. The BOM view
shows ‘father item’ and ‘child items’ relationship graphically.
The BOM may change
depending on the Finished Goods (end-product) and production method. For
example, in case of process production, there will be only one child (main raw
material) and one father item. Whereas in case of assembly production, there
may be many child items. Add similar BOM feature allows creating a BOM from
existing BOM of a similar product and then saving after minor changes as new BOM
– tremendous time saving feature for large BOM.
Bill of Material with "Copy similar BOM" feature. User can print the BOM using 'BOM reports menu' in
MS Excelsheet format. The excel sheet can be saved as soft copy or user
can print the excel sheet from Excel.
Bill of Material for furniture industry. Left
side shows "child items".
Where BOM is used?
The BOM is
integrated with many ERP business processes as follows:
be used for preparing a work order (job card) for own production or at the third
party. This work order shows the list of child items that is required to
produce the father item. BOM is also used in preparing the cost sheet.
Marketing executives can use BOM for preparing estimates. BOM can be used for
MRP or Material Requirement Planning. To compute the shortage quantity the BOM
is exploded automatically by ERP software to list the item/s required to be
purchased to fulfill a given sales order (ORI). This MRP report, in turn will
help purchase officer to procure items. BOM master is also helpful in keeping
track of revision numbers or engineering changes, called R number. This R
number is also reflected on the work orders etc. to help user.
clip showing excerpt of the kick-start meeting ERP
presentation by Zaveri. CRP run. ERP training to
presented basic ERP concepts, production module integration
with BOM, to tips on ERP implementation to the management of
an engineering manufacturing enterprise, having two
factories and head office in Mumbai.