bill of materials It is a layered list showing which raw materials and semi-finished products will be used and in what quantities to produce a product. The abbreviation BOM, which is frequently used in production, means "Bill of Materials".
In production companies in Türkiye, the terms bill of materials, bill of materials or bills of materials are often used for the same purpose. A healthy bill of materials; It feeds the purchasing need, stock reservation, work order and product cost through the same material structure.
bill of materials Solution
Are you looking for bill of materials and bill of materials management?
In this guide, we explained the relationship between bill of materials, BOM, bill of materials, variant and wastage. To manage the process from bill of materials to work order, from material need to production cost, on ERP KG Palaimon can examine the production solution; You can look at the production and cost management example in the Esinti Deri application.
How to Read BOM?
Finished product
Office chair
semi-finished product
Metal Foot Set
Raw materials and parts
Oturak Group
The finished product in the upper layer is formed by the combination of semi-finished products and raw materials in the lower layers.
Sample bill of materials
The example below shows the planned basic material consumption for one desk chair. Material code, warehouse, revision, validity date and operation information can also be kept in the actual bill of materials.
| component | Genre | Net amount | Planned scrap | bill of materials quantity |
|---|---|---|---|---|
| metal feet set | semi-finished product | 1 piece | - | 1 piece |
| upholstery fabric | Raw Material | 1.20 meters | %5 | 1.26 meters |
| Seat cushion foam | Raw Material | 0.45kg | %4 | 0.468kg |
| Mechanism | purchased part | 1 piece | - | 1 piece |
| Connection screw | Raw Material | 8 pieces | %2 | 8.16 pieces |
BOM and production route are not the same thing.
The bill of materials explains what will be used and how much; The production route shows in which order and in which work center operations such as cutting, dyeing, assembly and packaging will be carried out.
How Does a Variant Change the BOM?
When color, size, size, model or packaging option changes, the material to be used may also change. Instead of opening a separate bill of materials for each option, common materials can be kept in the main bill of materials, and changing materials can be kept in the variant rule.
Main model
Office chair
If red fabric is chosen
The bill of materials includes the red fabric code and the unit cost of that fabric.
If blue fabric is chosen
Common parts are retained, only the fabric code and associated cost change.
To see in more detail the effect of fabric, color and size options on the bill of materials in the furniture industry Variant and dynamic bill of materials guide in furniture and review it.
How to Add Waste to the bill of materials?
Writing only the net amount remaining on the product may underestimate the purchase need and cost. Loss considered normal during cutting, sorting, pulling or processing is added to the bill of materials amount as planned waste. If there is more consumption than planned at the end of production, this difference should be examined separately.
net need
1.20m
Planned scrap
0.06m
bill of materials quantity
1.26m
If the actual consumption is 1.32 m
0.06m difference
Why Are Semi-Finished Products Tracked Separately?
Intermediate outputs such as metal body, base, inner lining, mixture or unpackaged product used in more than one product can be defined as semi-finished products. Thus, the semi-finished product's own bill of materials, stock amount, production time and cost are monitored separately.
How Does BOM Affect Cost?
The planned material cost is created when the quantities in the bill of materials are multiplied by the current purchasing or inventory costs. When labor, subcontracting, energy, depreciation and general production expenses are added, the planned total cost of the product is reached. When actual consumption and times are recorded, the planned cost and the actual cost can be compared.
Simple cost link
bill of materials amount × unit material cost + labor + manufacturing overhead = product cost
For the calculation that includes expenses other than materials product cost calculation formula and example you can use it. To see the field equivalents of production, inventory and cost data Esinti Leather and to see the use of subcontracting inventory tracking in production Muya success story and review it.
Bill of Materials Management in ERP
As the number of products, bill of materials levels, and variants increases, it becomes difficult to keep spreadsheets up to date. A manufacturing ERP program; It helps manage bill of materials revision, validity date, alternative material, semi-finished product, work order consumption and cost comparison through the same record.
KG Palaimon production ERP program; designed for manufacturers who want to manage bill of materials, material requirements planning, production tracking, inventory and cost processes together.
To see the relationship of the bill of materials with planning and production records in the bill of materials preparation guide you can also examine the component and quantity approach that occupies space.
Link Your Bill of Materials to the Production Plan
Let's evaluate together how your current bill of materials, variant, semi-finished product and waste structure can be managed on ERP.
Request a Manufacturing ERP Demo