Bill of Materials Janean F. Lulloff Business Management 361 Section 1 Dr. Foster Marriott School...
Transcript of Bill of Materials Janean F. Lulloff Business Management 361 Section 1 Dr. Foster Marriott School...
Bill of Materials
Janean F. LulloffBusiness Management 361 Section 1
Dr. FosterMarriott 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.
What information is on a BOM?
1. Quantity
2. Item ID#
3. Description of Item
4. Cost of Item
5. 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.
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 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.
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 ExampleQuantity ID# Description Unit Price Total Cost1 6TU8 Back $5/Unit $ 5.00
4 5DR Legs $5/Unit 20.00
1 2PC Seat $10/Unit 10.00
5 1” Nails $0.50/Unit 2.50
Total Project Cost$37.50
BOM Example161kV H-Frame Tangent
Quantity Catalog No. Description 2 70-foot Wood Pole 1 DP1-457-156-156 Crossarm Shop Assembly2 DP1-457-156-156W Crossarm, 3-5/8" x 9-1/2" x
32'-0", Laminated3 5860-3545 Adjustable Spacer Filling
Assembly, 8-3/4" to 12-3/4“6 W4104-4S Bolt, Washerhead, 1/2" x 10-
1/2", SN12 W5050-3S Bolt, Washerhead, 5/8" x 5", SN1 41058BS Bolt, Bent Double End 7/8" x
8", 2SN, 2MF2 41058BB Bolt, Bent Machine 7/8" x 6", SN,
MF
BOM ExampleProject Bill of Materials
Pine Lake HomeSitesCost Item Quantity Cost/Item Total $ Site DevelopmentClearing & Grading 1.00 Each 59,429.00 59,429.00 Paving 1.00 Each 114,549.00
114,549.00 Curb & Gutter 1.00 Each 64,232.00 64,232.00 Sanitary Sewer 1.00 Each 158,810.00 158,810.00Storm Sewer 1.00 Each 61,277.00 61,277.00 Water 1.00 Each 63,602.00 63,602.00Entrance 1.00 Each 36,000.00 36,000.00Power & Street Lighting 1.00 Each 9,300.00 9,300.00Amenity 1.00 Each 270,000.00 270,000.00Contingency 1.00 Each 35,000.00 35,000.00
Total Site Development $872,199.00
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