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Bill of materials: Your guide to efficient manufacturing processes

Bill of materials: Your guide to efficient manufacturing processes

Author NameBy Oti Francis
•
March 28th, 2025
• 8 min read
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Table of contents

  • Create your bill of materials with a practical example
  • How to properly use a bill of materials
  • Standard components of a bill of materials
  • Creating and managing bill of materials
  • Collaborate and transform: Optimize your bill of materials with Lumiform
Choose from our 10,000+ free, customizable templates.
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Summary

Discover the full impact of a well-structured Bill of Materials (BOM) on manufacturing efficiency

Imagine you’re gearing up for a Ford car launch, only to face delays because of a loose bolt, or dealing with a Coca-Cola batch recall due to a wrong ingredient. Such scenarios can damage reputations. That’s where your bill of materials (BOM) comes in. It’s your production or project blueprint, detailing every essential part and material.

Whether you’re in manufacturing or project management, mastering your BOM is crucial. A precise BOM ensures efficient, cost-effective production and keeps every department aligned. With this guide, you’ll perfect your bill of materials (BOM).

In just minutes, you’ll build a more effective version using solid templates, explore various types and structures, and understand its critical role across industries.

Create your bill of materials with a practical example

Creating a BOM that’s easy to understand and adopt is key to streamlining your production process. Think of it as a roadmap, breaking down your product into layers, from the final product to every tiny component.

Here’s a relatable example of a car, including introductory explanations for each section:

Level 0: Final product

  • Car: The car is the complete vehicle, fully assembled and ready for use. It integrates all components and assemblies to deliver functionality, safety, and comfort.

Level 1: Sub-assemblies

The car consists of several key sub-assemblies, each contributing to its overall performance and reliability. These sub-assemblies work together to ensure the vehicle operates smoothly and safely. Here’s a brief preview of each:

  • Engine assembly: Includes core components like the engine block and pistons, powering the vehicle.
  • Transmission system: Comprising the gearbox and clutch, this system ensures smooth power transfer from the engine to the wheels.
  • Chassis and body: Includes the frame and doors, providing structural support and accessibility.
  • Electrical system: Featuring the battery and wiring, it powers the car’s electronics and lighting.
  • Suspension system: Includes shock absorbers and springs, ensuring a stable and comfortable ride.
  • Brake system: Composed of brake pads and rotors, it provides the necessary control to slow down or stop the vehicle.

Importance of sub-assemblies section

Understanding the intricate details of each sub-assembly is vital for appreciating how they contribute to the car’s overall functionality. Each part, no matter how small, plays a significant role in ensuring the vehicle operates efficiently and safely. This level of detail is crucial for those involved in the design, manufacturing, and maintenance of vehicles, providing a roadmap for quality and reliability.

Level 2: Detailed components

Delving deeper into each sub-assembly, we find a variety of components, each vital to the car’s operation. These components ensure the vehicle functions efficiently and safely:

  • Engine block: The core structure of the engine.
  • Pistons: Transform energy from combustion into mechanical motion.
  • Gearbox: Allows the car to operate efficiently at different speeds.
  • Frame: Maintains the vehicle’s shape and integrity.
  • Brake pads: Provide the friction needed to stop the vehicle.

These examples highlight the complexity and precision involved in automotive design. For a complete list and detailed specifications, please refer to our free bill of materials template for manufacturing.

Infographic showing types of bills of material

How to properly use a bill of materials

A bill of materials (BOM) is a comprehensive list of all the materials, components, and assemblies required to manufacture a product. Think of it as your product’s recipe, outlining every ingredient and step needed to bring it to life. A BOM not only lists the parts but also provides essential details such as quantities, descriptions, and how each item fits into the overall product structure.

Types of BOM

Explore the different types of Bills of Materials (BOMs) that serve various purposes across product lifecycles and industries:

  1. Engineering BOM (EBOM): Created during the design phase, it includes all components specified by the engineering team to ensure the product meets specifications. (here is a free engineering bill of materials template you can use for your industry)
  2. Manufacturing BOM (MBOM): Used in production, it lists all materials and components needed for manufacturing, including assembly instructions and additional materials like packaging.
  3. Sales BOM (SBOM): Assists in sales by listing components and sub-assemblies sold together as kits, useful in industries like electronics and automotive.
  4. Service BOM: Used for after-sales service, it lists parts needed for repairs or replacements, essential for maintenance services, and spare parts.
  5. Configurable BOM (CBOM): Ideal for customizable products, it allows adjustment based on customer preferences, common in automotive and electronics industries.

Standard components of a bill of materials

Creating an accurate and complete bill of materials (BOM) involves including essential components that help guide a seamless production process. Below are key sections to cover:

Material identifiers and description

Include the part number as a unique identifier for each component to help team members quickly identify and locate parts, reducing confusion or errors. Provide a thorough description of each part, including specifications, dimensions, and relevant characteristics, to clarify the purpose and function of each component.

Quantity, procurement type, and assembly guide

Specify the correct quantity needed for production to prevent shortages or excess inventory, ensuring efficient material management. Include the unit of measure, such as pieces or kilograms, to clarify inventory accounting. Document the procurement type to indicate whether each part is purchased or manufactured in-house, aiding procurement and production planning. Additionally, provide clear assembly instructions to outline how components fit together, improving assembly accuracy and minimizing errors. Including these elements in a BOM ensures clarity and supports efficient production processes.

(If you prefer using a FREE and ready-made BOM that allows you to customize it to taste, then this free bill of materials template collection from Lumiform might be a great choice)

Creating and managing bill of materials

Creating and managing a bill of materials (BOM) is crucial for efficient production. Here’s a concise guide:

  1. Gather information: Collect essential details like part numbers, descriptions, quantities, and suppliers. Collaborate with engineering, procurement, and manufacturing teams to keep the BOM comprehensive and current.
  2. Choose structure: Select a single-level BOM for simpler products or a multi-level BOM for complex products with subassemblies.
  3. Use BOM checklist and templates: Avoid manual errors by using bill of materials checklist templates and work automation tools software like those powered on Lumiform, which automates the creation, tracks revisions, and maintains version control.
  4. Implement version control: Regularly update BOMs to reflect design or material changes using tools like Autodesk Vault to ensure everyone uses the latest version.
  5. Review and validate: Have all teams review the BOM to ensure accuracy and prevent costly production errors.
  6. Share and communicate: Once validated, share the BOM with stakeholders using communication tools integrated within BOM systems.
  7. Continuously manage: Monitor BOMs for changes using checklists and work automation platforms like Lumiform, and enterprise resource tools like SAP One to ensure ongoing accuracy.

Following these steps and utilizing appropriate tools enhances production efficiency, reduces errors, and keeps processes aligned.

Managing BOM for smooth production

Effectively managing BOM revisions ensures that your production process remains smooth and that everyone is aligned. Changes should be tracked using a BOM management system, which helps maintain a history of all revisions. To avoid confusion, each BOM version must be clearly labeled, ensuring that teams are working with the correct, up-to-date version. It’s also crucial to communicate any updates to relevant stakeholders so that they remain informed of changes as they occur. Additionally, regular reviews of the BOM help verify its accuracy and relevance, making certain that it consistently supports efficient production.

BOM and your production culture

Mastering the bill of materials (BOM) is essential for ensuring smooth, efficient, and cost-effective production. Whether you’re working in engineering, procurement, or manufacturing, understanding how to create and manage a BOM is crucial for your success. By implementing these practices, avoiding common mistakes, and using a BOM management system, you can create a BOM that supports your production process and helps you achieve your goals.

Collaborate and transform: Optimize your bill of materials with Lumiform

Your bill of materials is a collaborative tool. Invite your team to review and refine it together, ensuring everyone is aligned and contributing to a more efficient workflow.

Explore and implement your BOM using Lumiform’s platform. Discover rich template creation tools, extensive template libraries, automation features, and compelling audits. Empower your team to elevate standards and audit your business in other areas needing improvement and compliance.

Click here to start today and transform your processes with Lumiform.

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Choose from our 10,000+ free, customizable templates.
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Frequently asked questions

How can a BOM enhance product lifecycle management (PLM)?

A BOM plays a crucial role in Product Lifecycle Management by tracking changes across a product’s lifecycle. It ensures alignment across departments, reducing errors and improving quality. Integrating BOMs with PLM systems provides insights into product performance and cost, enabling efficient resource use and strategic planning, thus driving innovation and competitive advantage.

How do I ensure my bill of materials is always up-to-date?

To ensure your bill of materials is always up-to-date, you need to implement a system for tracking changes and managing revisions. Regularly review the BOM to reflect any changes in design, materials, or production processes. Using a BOM management system can help automate this process, making it easier to track updates and ensure that everyone is working with the latest version.

What happens if my bill of materials is incomplete or inaccurate?

An incomplete or inaccurate bill of materials can lead to significant production issues, including delays, cost overruns, and quality problems. If critical components are missing or incorrect, your production team may not have the materials they need to complete the product. This can result in wasted time, increased costs, and dissatisfied customers. Ensuring that your BOM is accurate and complete is essential for smooth production.

Author
Oti Francis
Oti Francis is a versatile Content Writer specializing in B2B and B2C content. Passionate about using content to drive audience engagement, brand ROI, and business success, Oti excels in creating impactful, SEO-optimized materials. At Lumiform, they contribute to enhancing workflow automation and operational excellence, bringing creativity and strategic insight to every project.
Lumiform offers innovative software to streamline frontline workflows. With over 12,000 ready-to-use templates or custom digital forms, organizations can increase efficiency and automate key business processes. The platform is particularly user-friendly, offering advanced reporting capabilities and powerful logic functions that enable automated solutions for standardized workflows. Discover the transformative potential of Lumiform to optimize your frontline workflows. Learn more about the product

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