If you tried to build a house without a blueprint and construction plan, you might eventually get the job done, but your walls might not come together right. Your completion might be delayed waiting for materials. Or you might need to pay for materials to be stored because they’re for the interior, and you’re still working on the exterior. It’s also not likely to pass inspection.
Just as builders need a blueprint and construction plan when building a house, manufacturers need a Bill of Materials (BOM) and a materials acquisition plan when creating products. The process, called Material Requirements Planning (MRP), uses a BOM to determine the appropriate types and amounts of materials needed to produce a good, and then ensures those materials are available when and where they are needed.
Integrating BOM and MRP into one system provides a streamlined approach where data can be easily shared to optimize resources and lower production costs.
Here we explore the role of a bill of materials, its use in material requirements planning and the efficiencies brought about by integrating these processes into one software system that fosters efficiency and quality.
Contents
What is a bill of materials (BOM)?
Best practices for bill of materials management
Create efficiencies with bill of materials software
Benefits of bill of materials software
QT9 MRP bill of materials BOM software
A Bill of Materials is a comprehensive list of all the raw materials, components, assemblies and subassemblies, along with instructions, that go into the manufacture, assembly or repair of a product.
Using a hierarchical structure, a BOM provides detailed information about every part and step required to create the final product, with the finished product at the top and the individual components and raw materials populating the bottom levels.
Part identifiers: This can include the part name, number or other unique identifier for each product component.
Descriptions: BOM descriptions are brief explanations of a part or assembly that reinforce identification, such as size.
Quantities: Quantities define how many of each part are needed for production.
Unit of measure: This specifies in what unit of measure a part should be purchased or produced, such as gallon or meter.
BOM level: This is usually a unique number indicating where each part or assembly fits in relation to other assemblies and the final product -- its place in the BOM hierarchy. Very simply illustrated: a ball bearing (3) is part of a wheel assembly (2) that is part of a roller skate (1).
Phase: The phase indicates at which point in production the part is needed, such as in the manufacturing or design stages.
Procurement type: Procurement type indicates whether a component is to be purchased, produced internally or manufactured by a third party.
Different manufacturing processes and product lifecycle stages require different types of BOMs. Each type serves a unique purpose, but they all share the common goal of ensuring a product is built to specification as efficiently as possible.
The most common types of BOMs include:
EBOMs are created during the product design phase and include detailed engineering specifications for parts, components and subassemblies, technical drawings and instructions developed by product engineers.
MBOMs focus on product production, identifying all of the parts and assemblies for a particular product, and specifying how materials are to be assembled. These BOMs cover every aspect of production necessary to build and ship a product, including packaging.
An MBOM is also important in that it identifies what parts are needed at each stage of production, helping manufacturers better manage the purchase and delivery dates of raw materials, and ultimately the final product.
A service BOM is often created during a product’s engineering phase. It lists the replaceable parts and instructions for product maintenance, and is used for servicing and repairing products.
BOMs can be structured as single-level or multilevel, depending on the complexity of the product and the manufacturing process.
A single-level BOM provides a straightforward list of components needed to create a product. It does not account for subassemblies or hierarchical relationships between components. It is best for simple products with few components.
A multilevel BOM includes all components and their hierarchical relationships, detailing subassemblies and how they contribute to the final product. Each subassembly has its own BOM nested within the main BOM. Multilevel BOMs are used for complex products with multiple assemblies, such as a vehicle.
With the potential for multiple hierarchies of parts, components and subassemblies, it is important to have a system in place to manage your bill of materials so it remains accurate for everyone’s use. From creation to revision to final communication, some best practices for BOM management include:
When creating a BOM, be sure to attach or link supporting documentation, drawings, images and instructions. Linking documentation to specific components at the appropriate level provides clearer user guidance, helping to mitigate quality issues and the potential need for reworks.
Structure your BOM so that it is easy to see all parts, assemblies and subassemblies and how they fit together.
Create procedures for BOM changes, including review and approval processes, as well as a system for communicating BOM changes.
Implement a version control system that tracks and documents BOM changes. Be sure your system allows easy comparison between past and present revisions, so it is easy to determine what was changed. This may also be necessary for regulatory compliance.
Ensure access to the most current BOM documentation so all stakeholders are working from the same information.
Standardize and document naming conventions to avoid confusion among BOM users.
Train staff on BOM procedures and use.
Automate your bill of materials processes with BOM software.
While BOMs are sometimes managed manually using spreadsheets and local files, that approach can quickly become restrictive, especially when products are more complex.
Bill of materials software automates the creation and use of BOMs, which helps decrease errors and makes it easier to initiate changes and reworks. Because it eliminates most manual processes associated with spreadsheets, it helps prevent inconsistencies, duplications and omissions that may result in production delays and wasted resources.
BOM software provides a host of efficiencies through integrations with MRP and other enterprise operations, such as purchasing and supplier management. It provides a centralized platform where stakeholders can keep track of changes and easily communicate them with those impacted.
BOM software centralizes all BOM information, promoting better collaboration and ensuring team members are working with the latest and most accurate information. Businesses get automatic full traceability for easier regulatory compliance. As operations grow, BOM software can handle increasing complexity, including multilevel BOMs able to identify and track thousands of components.
BOMs have become a foundational tool for manufacturers, helping them drive accuracy across operations. Bill of materials software builds on a BOM’s inherent strengths by adding accuracy, efficiency, collaboration and centralization capabilities.
Key benefits of BOM software include:
A well-structured BOM ensures that all materials and components are accounted for before production begins. This reduces delays caused by missing parts and enables smoother workflows.
By detailing the quantities and costs of materials, BOMs help manufacturers estimate production costs accurately, making budgeting and pricing more effective.
BOMs provide a clear view of material requirements, helping manufacturers maintain optimal inventory levels. This minimizes overstocking and understocking issues.
By providing detailed instructions and specifications, BOMs help ensure that the final product meets quality standards.
BOMs serve as a central source of truth for engineering, manufacturing, procurement and other departments, fostering better collaboration.
For industries with strict compliance requirements, BOMs help track materials and operations to ensure adherence to regulations.
QT9 MRP is a comprehensive materials requirements planning system with a BOM solution that works for all phases of the product lifecycle. QT9 BOM features include:
Multi-level capability
Unlimited revisions
Revision tracking
Customizable fields
Linking capabilities
Auto-alerts and notifications
Ability to import BOMs or create from scratch
Remote access
Easy integration with QT9 QMS
QT9 MRP is an end-to-end solution, with more than 17 modules as part of its standard offering, as well as easy access to data and analytics to help manufacturers make the best decisions for moving forward.
With QT9 MRP you get:
Unlimited Bill of Materials
Quick implementation
Tailored customer support
Customer, compliance, supplier and physical inventory web portals
Lot and serial number inventory control
Access to digital business intelligence and analytics
QT9 MRP works for any size company, in any industry, improving efficiency and accuracy through integrated data and automated operations, all without breaking the bank.
QT9 MRP also offers electronic batch record (eBR) and device history record (DHR) applications to address the needs of life sciences companies. Our MRP software lets you configure processes to best meet your needs and is highly scalable, so you can implement at your own pace.