What Is a Bill of Materials? A Beginner’s Guide With Examples

If you are familiar with the manufacturing industry or engineering sector, you more than likely have come across the term “bill of materials”. But what does it mean exactly to a beginner, an entry-level member of staff, or an outsider? We’ll break down the terminology and reveal all in this beginner’s guide, complete with examples.

So, what is a bill of materials, explained in the simplest possible way? Let’s get into it. 

Key Takeaways

• A BOM is like a recipe for making a product.
• Different types exist: Manufacturing, Engineering, and Sales/Service BOMs.
• BOMs improve accuracy, communication, cost control, and efficiency.
• They are critical for both production and after-sales services.

What is a Bill of Materials?

Essentially, a bill of materials is the blueprint for any product that is created. It details all the materials and components that go into making the product. A “how-to,” if you like, of building a specific product.

What’s Included in a Bill of Materials?

Many in the industry see a bill of materials as a recipe for whipping up a product, as it includes an ingredients or raw materials list along with a method of how to create the product. There is also information on how to go about repairing and troubleshooting possible problems.

A bill of materials is precise; it not only includes the components needed but also the exact number required. This attention to detail helps make the production process run smoothly.

Examples of Bills of Materials

It’s not just in manufacturing where bills of materials are commonplace. Here are a few different types of bills of materials used in various industries.

Manufacturing Bills of Materials (MBOM)

One of the most well-known bills of materials, manufacturing BOMs are effectively a list of all the parts and protocols that go into making a product. MBOMs also include any individual parts that need to be processed before assembly takes place. The number of parts required is also stipulated in the MBOM document.

Not only is the product itself governed by an MBOM, but this also includes the packaging and labelling. If a company is working with outside suppliers for the design and manufacture of the packaging, then the MBOM can help to inform them exactly what is to be included.

Engineering Bills of Materials (EBOM)

Another common type of BOM is engineering bills of materials. Similar to the manufacturing variety of BOM, EBOMs detail all the components that are needed to build a structure, including the essential technical information.

The designers, engineers, and construction teams depend on the EBOM to ensure that each department collaborates well with the others. Inter-departmental lines of communication can often get confused. However, by using an EBOM as a reference document, this can ensure everyone stays on the right page.

Sales / Service Bills of Materials (SBOM)

The sales bill of materials views the finished product as the sales item and its components listed purely for informational purposes.

But why is it important for the sales teams to use an SBOM? Well, it improves the customer experience. The use of an SBOM within the sales department means that the team can accurately inform customers about the product specs.

A service bill of materials sees the components list as a helpful prompt when it comes to carrying out maintenance checks or repairs on a product. Then the SBOM becomes an instructional guide assisting with diagnostics.

Why Use a Bill of Materials?

There are many advantages to using a bill of materials. Manufacturing and engineering industries rely on BOMs, and here are a few reasons why.

• Improved customer service - Using BOMs across departments means that everyone, down to the customer service representative, knows what goes into each product and can relay information to the customer.
• Accuracy - BOMs result in accuracy across the parts assembly, through to the product manufacturing and packaging processes.
• Controlling costs - Having an ingredients list in the form of a BOM controls outgoings by accurately estimating the costs of parts. It can also help to identify where to cut costs in the manufacturing process.
• Reducing wastage - By knowing exactly how much raw materials are needed, the risk of overstock is much lower.
• Clear communication - A BOM is an ideal reference document that ensures clear communication between departments.
• Reduces risk of shortages and delays - Before the production process even begins, it helps to refer to a BOM to make sure that all the parts are available. With all the components to hand, this limits the chance of delays due to part shortages.

Conclusion

BOMs are an essential tool in the manufacturing and engineering industries. They help manage efficiency and quality control and ensure profitability for your business.

FAQs

Q. What is the purpose of a bill of materials?

A. A BOM provides a complete breakdown of the parts, materials, and steps required to manufacture or maintain a product.

Q. Who uses a bill of materials?

A. BOMs are used by engineers, manufacturers, sales teams, service technicians, and procurement staff.

Q. What’s the difference between MBOM and EBOM?

• MBOM: Focuses on production and assembly.

• EBOM: Focuses on design and technical specifications.

Q. Can BOMs help reduce costs?

A. Yes, BOMs improve cost estimation, prevent over-purchasing, and highlight cost-saving opportunities in the production process.

Q: Are BOMs only used in manufacturing?

A. No, BOMs are also used in engineering, sales, and after-sales service to ensure product consistency and support.