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Bill of Materials

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Bill of Materials Janean F. Lulloff Business Management 361 Section 1 Dr. Foster Marriott School Brigham Young University Contents of Tutorial Definition of a bill of ... – PowerPoint PPT presentation

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Title: Bill of Materials


1
Bill of Materials
  • Janean F. Lulloff
  • Business Management 361 Section 1
  • Dr. Foster
  • Marriott School
  • Brigham Young University

2
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

3
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.
4
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)

5
Processes that utilize a BOM
  • Production
  • Materials planning
  • Product costing
  • Plant maintenance

6
How can a BOM be used in your organization?
  • Several software programs are available that
    store item information and prepare bill of
    materials automatically

7
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

8
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

9
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

10
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.

11
Structure of a BOM
12
What information is on a BOM?
  1. Quantity
  2. Item ID
  3. Description of Item
  4. Cost of Item
  5. Total Project Cost

13
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.

14
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.

15
Description of Item
  • Provides a check that the correct item is being
    ordered.

16
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.

17
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 54 .55
    37.50

18
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.

19
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

20
BOM Example
  • Quantity ID Description Unit Price Total Cost
  • 1 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

21
BOM Example
  • 161kV H-Frame Tangent
  • Quantity Catalog No. Description
  • 2   70-foot Wood Pole
  • 1 DP1-457-156-156 Crossarm Shop Assembly
  • DP1-457-156-156W
    Crossarm, 3-5/8" x 9-1/2" x 32'-0",
    Laminated
  • 3 5860-3545
    Adjustable Spacer Filling Assembly,
    8-3/4" to 12-3/4
  • 6 W4104-4S Bolt, Washerhead, 1/2" x
    10- 1/2", SN
  • 12 W5050-3S Bolt, Washerhead, 5/8" x 5", SN
  • 1 41058BS Bolt, Bent Double End 7/8" x
    8", 2SN, 2MF
  • 2 41058BB Bolt, Bent Machine 7/8" x 6", SN,
    MF  

22
BOM Example
  • Project Bill of Materials
  • Pine Lake HomeSites
  • Cost Item Quantity Cost/Item Total  
  • Site Development
  • Clearing Grading 1.00 Each 59,429.00 59,429.0
  • 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 158,810.00 158,810.00
  • Storm Sewer 1.00 Each 61,277.00 61,277.00 
  • Water 1.00 Each 63,602.00 63,602.00
  • Entrance 1.00 Each 36,000.00 36,000.00
  • Power Street Lighting 1.00 Each 9,300.00 9,30
    0.00
  • Amenity 1.00 Each 270,000.00 270,000.00
  • Contingency 1.00 Each 35,000.00 35,000.00
  • Total Site Development   872,199.00   

23
Screenshots of BOM Software
24
Screenshots of BOM Software
25
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/daf2cd4ab0
    11d18a0f0000e816ae6e/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
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