How to Compile a Bill of Materials


Generating a complete database of products that your company produces and a bill of materials (BOM) for each item will allow your company to operate more smoothly. There are many ways of creating a BOM but you can organize it best by generating a BOM for each sub-assembly. Your final BOM may contain BOMs that are from many sub-assemblies, along with parts that are unique to the product in question. Here's how to compile a BOM.

  • Determine the sub-assemblies that are in your product line. Although most companies make a variety of products, many of these products contain the identical sub-assemblies as other products.

  • Generate a complete list of the parts that each sub-assembly requires to build. This includes every screw, bolt, nut and piece of wire that is used. Once you have a complete list of all the sub-assemblies your company uses, it will form the basis for the bill of materials for each product you manufacture.

  • Put together a complete list of final products that your company sells. For each of these products, list in a detailed fashion every component that goes into its manufacture. This includes each sub-assembly screw, bolt, nut or wire that is required to create the finished product.

  • Set in place of the sub-assembly number the bill of materials for that sub-assembly. You now have a bill of materials for each product your company manufactures in addition to each sub-assembly that is used.

  • Enter this information into a computer and make it available to the inventory or purchasing department of your company, to expedite the ordering process and to help control inventory.

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