Question

explain production process with bom example

Answer 1

bill of materials (BOM)

A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts and components, as well as the quantities of each, needed to manufacture a product.

In a nutshell, it is the complete list of all the items that are required to build a product. A BOM is sometimes also referred to as a product structure, assembly component list or production recipe (in process manufacturing industries).

Take, for example, a bicycle manufacturer that wants to build 1,000 bicycles. A bill of materials for a bicycle will include all the parts that make up the bicycle such as seats, frames, brakes, handlebars, wheels, tires, chains, pedals and cranksets, including the quantities required of each component and their cost.

A well-defined BOM helps companies:

• Plan purchases of raw materials
• Estimate material costs
• Gain inventory control
• Track and plan material requirements
• Maintain accurate records
• Ensure supply robustness and reduce waste

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