Bill of Materials

Bill of Materials: A Comprehensive Guide
This in-depth guide shares how to engineer a better Bill of Materials (BOM) by levering automation, integration, and other best practices.

What is a Bill of Materials (BOM) - Why do you need it?

What is a BOM

A Bill of Materials (BOM) is a detailed list of everything needed to build a complete product, including raw materials, individual components, sub-assemblies, and instructions. It includes each component’s name (or number), description, quantity, and cost. BOMs can be single-level, showing only the parts needed for a specific assembly, or exploded, detailing every component down to the raw materials.

How do I automate BOM engineering?

While you cannot completely automate all BOM creation, you can automate aspects of BOM creation. For example, eBOMs can be created by CAD applications through metadata. mBOMs can be automated by connecting CAD applications to PLM or MRP systems, such as KETIV’s DataBridge, to upload eBOMs to begin the creation and updating of the mBOMs. Let’s dive into the types of BOMs first, before we talk integration and automation.

Types of BOMs

While there are various types of BOMs, a few are commonly used in manufacturing.

Engineering Bill of Materials (eBOM)

An engineering Bill of Material (eBOM) contains the parts, components, and materials reflecting the product as designed by the engineering group and serves as the foundation for all other Bill of Materials and departments for the entire lifecycle of the product from concept to end-of-life. An engineering BOM is generally created automatically using engineering and design software, such as CAD (Autodesk Inventor, Dassault SolidWorks, PTC Creo, etc.) and can be found on most engineering drawings. It serves as the foundation for all other BOMs and departments for the entire lifecycle of the product from concept to end-of-life.

Manufacturing Bill of Materials (mBOM)

A manufacturing Bill of Material (mBOM) is utilized for the manufacturing resource planning of a product structure and begins with the information contained in the eBOM. The manufacturing BOM adds additional components and information, such as manufacturing materials (i.e., weld wire, grease, liquid adhesives, packaging, etc.), labor hours, instructions, guides, etc., necessary to communicate the requirements in the assembly process to build a complete and shippable product to the manufacturing and resource planning groups. Manufacturing Bill of Materials can generally be found in a company's Manufacturing Resource Planning (MRP) program.
Unless your MRP and CAD applications are connected, an eBOM will need to be somehow exported and imported, or manually entered, into the MRP system to create an mBOM. With KETIV’s DataBridge, the eBOM data can be connected to a PLM or MRP system to automatically begin the creation or updating of the mBOM. With an automated solution all business units can have confidence that their BOM data is accurate and current.

Sales Bill of Materials (sBOM)

A Sales Bill of Materials (sBOM) is a document listing all components needed to complete a sale, including product descriptions, SKUs, part numbers, quantities, and prices. It provides a blueprint for sales order processing, offering quality assurance in product cataloging, inventory management, and order fulfillment. sBOMs help customer service answer product-related questions, forecast demand, and optimize inventory.

Using Configure, Price, Quote (CPQ) software can streamline the creation of sBOMs by automating the listing of items, quantities, and prices, which reduces manual effort and minimizes errors. CPQ systems ensure accuracy and consistency across sales and inventory, improving efficiency and responsiveness in order processing.

Common Challenges in BOM Management

Managing BOMs can be complex, especially as products become more intricate and supply chains more global. Here are some common challenges and how to address them:

  • Data Inconsistencies: Discrepancies between BOMs in different systems or departments can lead to production errors. To combat this, implement a centralized modular BOM management system that ensures all teams are working with the same data.
  • Outdated Information: BOMs that aren’t regularly updated can cause significant issues, such as using incorrect parts or materials. Regular audits and a robust change management process can help keep BOMs current.
  • Integration Issues: Challenges in integrating BOMs with ERP, PDM, PLM, and other systems can result in data silos and miscommunication. To address this, invest in integration solutions that ensure seamless data flow between systems.
  • Complexity Management: As products evolve, BOMs can become increasingly complex, making them difficult to manage. Simplify BOMs where possible, and use software tools to handle complex hierarchies and relationships between components.
  • Communication Gaps: Poor communication between departments can lead to errors in BOM management. Establish clear protocols for communication and ensure that any changes to the BOM are communicated promptly to all relevant teams.

BOM Management Best Practices

Effective BOM management is critical to ensuring product quality, reducing costs, and maintaining efficient production processes. Here are some best practices:

 

  • Version Control: Implement robust version control to track changes to the BOM. This helps in managing revisions and ensures that everyone is working with the most current version, offering quality assurance to the product design and product lifecycle, preventing errors and confusion through the entirety of the production process.
  • Accuracy and Consistency: Ensure that BOM data is accurate and consistent across all systems. Regular audits and validations can help maintain data integrity, reducing the risk of production errors.
  • Detailed Documentation: Include comprehensive documentation for each component in the BOM, such as part numbers, descriptions, suppliers, and specifications. This ensures that all stakeholders have the information they need to make informed decisions.
  • Regular Updates: Keep the BOM updated throughout the product lifecycle. As design changes, new materials are introduced, or suppliers are updated, the BOM should be revised accordingly to reflect these changes.
  • Cross-functional Collaboration: Foster collaboration between departments, such as engineering, manufacturing, and procurement, to ensure that the BOM reflects the needs of all stakeholders and that any changes are communicated effectively.

Integrated BOMs in Manufacturing

Integrating manufacturing processes with your BOM involves creating a seamless connection between the Bill of Materials (BOM) and the various manufacturing processes and systems within a company. Integration ensures that the BOM is not just a static document, but a dynamic one that evolves as products move from design to production and throughout the manufacturing process.

By integrating BOMs into manufacturing processes, you can:

  • Improve Accuracy: Integrated BOMs ensure that every part or assembly required in manufacturing is accurately reflected, with proper materials management, reducing the chances of errors on the shop floor.
  • Enhance Collaboration: Cross-functional teams, including design, engineering, and production, can work more effectively together, as everyone has access to the most up-to-date BOM structure.
  • Streamline Production: Automated updates to BOMs as changes occur in design or engineering ensure that production schedules and material requirements are always in sync, reducing downtime and waste.
  • Optimize Inventory Management: Integration helps in better forecasting material needs, reducing overstock situations, and ensuring timely procurement of parts, thereby minimizing delays in production.

Integrating BOM with your ERP

Integrating BOM with Enterprise Resource Planning (ERP) systems is essential for managing the end-to-end lifecycle of a product. The ERP system acts as a central repository that connects different business functions, such as procurement, inventory management, and finance, with the BOM.

Key benefits of ERP integration include:

  • Centralized Data Management: The BOM in an ERP system ensures that all departments access the same data, reducing discrepancies and ensuring alignment across the organization.
  • Real-time Updates: Any changes in the BOM, such as new materials or updated part numbers, are automatically reflected across all relevant modules in the ERP system, ensuring that purchasing, inventory, and production are always working with the latest information.
  • Improved Resource Planning: Integrating BOM with ERP helps in accurate resource planning, ensuring that materials are available when needed, reducing lead times and avoiding production delays.
  • Cost Control: The ERP integration enables better tracking of material costs, helping in budget management and cost reduction efforts by providing detailed insights into where savings can be achieved.

Integrating BOM with your PDM and PLM

Product Data Management (PDM) and Product Lifecycle Management (PLM) systems are crucial for managing the design and development stages of a product. Integrating BOM with PDM and PLM systems ensures that the product’s data is consistent and accessible throughout its lifecycle.

Benefits of PDM and PLM integration include:

  • Consistency Across Product Lifecycle: From design to disposal, a BOM integrated with PDM/PLM ensures that all teams are working with the same, accurate data, reducing errors and rework.
  • Enhanced Collaboration: By linking BOM data with PDM/PLM, teams can collaborate more effectively, as they have access to the most current design information and can easily track changes and revisions.
  • Improved Change Management: Integration facilitates better control over engineering changes, ensuring that any updates are accurately reflected in the BOM and communicated to all stakeholders.
  • Faster Time to Market: By streamlining the flow of information between PDM/PLM and other systems, companies can accelerate product development cycles and bring products to market faster.

Learn More: Automating BOMs in Autodesk

Generating Production, Inventory, and Purchase Lists from a Single BOM in Autodesk Vault
A Guide to Inventor Bill of Materials