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

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Presentation on theme: "Bill of Materials Janean F. Lulloff Business Management 361 Section 1 Dr. Foster Marriott School Brigham Young University."— Presentation transcript:

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

2 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

3 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, p.461.

4 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)

5 Processes that utilize a BOM Production Materials planning Product costing Plant maintenance

6 How can a BOM be used in your organization? Several software programs are available that store item information and prepare bill of materials automatically

7 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

8 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

9 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

10 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.

11 Structure of a BOM

12 What information is on a BOM? 1.Quantity 2.Item ID# 3.Description of Item 4.Cost of Item 5.Total Project Cost

13 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.

14 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.

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

16 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.

17 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 = *4 +.5*5 = $37.50

18 Benefits of a BOM Optimize engineering, planning and purchasing efforts by providing centralized and up-to-date information in Make- To-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.

19 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

20 BOM Example QuantityID#DescriptionUnit PriceTotal Cost 16TU8Back$5/Unit$ DRLegs$5/Unit PCSeat$10/Unit Nails$0.50/Unit 2.50 Total Project Cost$37.50

21 BOM Example 161kV H-Frame Tangent Quantity Catalog No. Description 2 70-foot Wood Pole 1 DP Crossarm Shop Assembly 2 DP W Crossarm, 3-5/8" x 9-1/2" x 32'-0", Laminated Adjustable Spacer Filling Assembly, 8-3/4" to 12-3/4 6W4104-4SBolt, Washerhead, 1/2" x 10- 1/2", SN, 12W5050-3SBolt, Washerhead, 5/8" x 5", SN, BS Bolt, Bent Double End 7/8" x 8", 2SN, 2MF BB Bolt, Bent Machine 7/8" x 6", SN, MF

22 BOM Example Project Bill of Materials Pine Lake HomeSites Cost ItemQuantityCost/ItemTotal $ Site Development Clearing & Grading1.00 Each59, , Paving1.00 Each114, , Curb & Gutter1.00 Each64, , Sanitary Sewer1.00 Each158, , Storm Sewer1.00 Each61, , Water1.00 Each63, , Entrance1.00 Each36, , Power & Street Lighting1.00 Each9, , Amenity1.00 Each270, , Contingency1.00 Each35, , Total Site Development $872,199.00

23 Screenshots of BOM Software

24

25 References Bozarth, Cecil C. and Handfield, Robert B. Introduction to Operations and Supply Chain Management. Pearson Education, Inc., Upper Saddle River, New Jersey, p.461. help.sap.com/saphelp_40b/helpdata/en/cd/daf2cd4ab011d18a0f0000e816ae6e/ content.htm


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