A bill of material is a technical sheet that is shared by the client or prepared by a manufacturing unit to enlist all the required items and raw materials for preparing a finalized product. You can say that a bill of material or BOM is a sort of packing list that you can use to enlist all the requirements for completion of a product. Most of the times, a BOM only includes the list of raw materials with their specification and details while sometimes these sheets can also include specific operations i.e. how to join to items together and how to carry out the entire manufacturing process.
Importance and uses of Bill of Material
Delays and changes in delivery dates are very common in manufacturing industries. It doesn’t matter if you produce garments, instruments, electric appliances, furniture, or medicine because when product is involved, there are always some changes of delays and problems occurring from start to finish. A better approach to eliminate these errors and delays is to use a bill of material. This document comes in form of a packing list that includes introduction of the final product, brief explanation of all components of the product, specification and requirement of each component and then it’s verified by the client or customer.
When a manufacturing unit has a bill of material before starting production, every department can ensure that they complete their responsibilities on time. The reason why garment industry is almost immune to delays and changes in delivery dates around the world is because as soon they receive the order from the client, they prepare BOM and get it approved from the client. Then they share it with all involved departments in the facility to ensure everyone understands what is required, when it is required and which source should be used in order to get highest quality raw material.
Free Bill of Material Templates
Here are several Free Bill of Material Templates to help you create your own Bill of Material easily.
How to make a bill Of materials
Here are benefits of bill of material in inventory management:
You have a Packing List:
As you have already understood that a bill of material or BOM is a list of all the ingredients or raw materials required to prepare a final product, with this document it’s very easy to see what you need to buy to complete a product. This way you can have a complete packing list of all the ingredients and raw materials and the procurement and purchase department can understand exactly what to buy, when to buy and where to buy.
You can’t run out of Raw Material:
When you have a bill of material for the end product, you have a list of the important ingredients required for the product. This means that each and every thing on this list is essential for the completion of the product regardless of its importance and price. A thousand dollar compressor is as important as a penny worth of washer because without this washer, end product is not considered finished. This way you can always make sure that all essential items are in stock before starting production.
You can Plan Better:
When you have a bill of material for a product, you can make better plans for the overall manufacturing process. Not only that you can ensure if all of the required items and raw materials are not in stock right now, you can still start production if items for initial production stages are available. For instance, if packing accessory of a garment hasn’t reached yet, you can still start sewing by ensuring the stitching accessory items are in-house.
You can save on Bulk Purchase:
With the help of bill of material, you don’t need to worry about getting too much of raw material or running out of essential items. It’s very easy to estimate the required units of each item for fulfilling order requirements and this way you can purchase raw material in bulk to save money and ask for discount if possible.
There is no Misunderstanding:
With the bill of materials available to each person involved in manufacturing, it’s very easy to eliminate mistakes, errors and miscommunication. With this piece of paper, everyone can find out exactly what is required to make the final product and how the client or customer wants to see the final product.