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What is BOM

Discussion in 'Oracle SCM & Manufacturing' started by robin, Sep 22, 2011.

  1. robin

    robin Forum Advisor

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    Could anyone explan what a Bill of Material is ? and why we use BOM

    I have googled for this and I didnot fully understand the concept.According to what I understood,BOM is the list of all the components that go into making the final item ? Is this true ? Do we associate cost with BOM ?
    Please share your knowledge on BOM .

    Regards,
    Robin
     
  2. saurovroy

    saurovroy Active Member

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    Say you have a laptop which is an assembled item. Laptop comprises of Hard Disk,RAM, mother board, key board,monitor etc.So all the components (hard disk,RAM etc) are bill of materials for the assembled item Laptop. Hope this helps.

    SR
     
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  3. salmankhalid

    salmankhalid Forum Advisor

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    @ Saurovroy
    nice explanation thanks, i don't know about him but i understand it clearly ;)
     
  4. malli_18arjun

    malli_18arjun Active Member

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    BOM is notthing like a blue print for manufacture to assemble the all the components to make configured item

    Hope this helps
     
  5. zargon

    zargon Community Moderator Forum Guru

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    The definition depends upon the company and how the BOM is used -- four distinct types can be considered:

    Engineering BOM: components necessary to create the assembly or sub-assembly
    Manufacturing BOM: usually an indented BOM listing assemblies and sub-assemblies for the finished product shown as ordered parts lists (parts are listed in the order of assembly)
    Sales BOM: used to identify all parts and quantities regardless of the assembly or sub-assembly; usually used for cost calculations
    Service BOM: lists, usually, of replaceable parts and assemblies used by the service technicians

    Engineering BOM and Sales BOM differ in that Engineering BOM list parts by assembly and Sales BOM simply list part, quantity, unit price and possibly extended cost (unit cost * quantity); neither of these BOM could be used to build the item by those without prior knowledge of the construction. Manufacturing BOM are designed so that printing the BOM will result in assembly instructions for the given item. Service BOM usually list parts and assemblies necessary for service and/or repair of the item.

    As an example your company has designed a new fan; this fan uses a motor, a blade, a blade guard, a housing, a base, screws, nuts, washers and a power cord. The Engineering BOM would be:

    Motor 1
    Blade 1
    Mounting screws 24
    Blade nut 1
    Housing 1
    Housing cover 1
    Blade guard, front 1
    Blade guart, back 1
    Guard mounting nut 1
    Blade guard clips 4
    Base 1
    Base mounting bolt 1
    Mounting bolt nut 1
    Lock washer 1
    Power cord 1
    Cord guard 1
    Switch, 3-way 1
    Wire nuts 6
    Base pad 1
    Paint 1

    The Sales BOM would be that list plus cost and possibly extended cost.

    The Manufacturing BOM might be:

    Housing
    Paint
    Power cord
    Cord guard
    Motor
    Switch
    Wire nuts
    Mounting screws
    Housing cover
    Paint
    mounting screws
    Blade guard, back
    Mounting screws
    Blade
    blade nut
    blade guard, front
    Blade guard clips
    Base
    Paint
    Base mounting bolt
    Lock washer
    Mounting bolt nut
    Base pad

    Basically a list, in order of assembly, of the parts required. The Service BOM might be:

    Housing
    Base
    Motor
    Blade
    Blade Guard
    Base pad
    Switch
    Power cord
    Cord guard
    Mounting screws

    Notice it's a much shorter list as it only considers replaceable assemblies.