Bill of materials (BOM) management

A bill of materials (BOM) is a comprehensive list of all the materials and components required to manufacture a specific product. It serves as a blueprint for production, providing detailed information on the quantities, specifications, and suppliers of each item needed to complete the product.

BOM management is the process of creating, maintaining, and updating this list of materials and components. It is an essential tool for manufacturers, as it allows them to track the cost of materials and components, plan production schedules, and ensure that all necessary components are available when needed.

For example, a BOM for a car would include all the components needed to build it, such as the engine, transmission, tires, and body panels. The BOM would also include information on the suppliers of these components, the quantities needed, and the cost of each item.

Another example would be a BOM for a computer, which would include the processor, memory, storage, and display. The BOM would also include information on the suppliers of these components, the quantities needed, and the cost of each item.

BOM management can also be used to track the progress of production, as well as to identify and resolve any issues that may arise. For example, if a component is out of stock or is delayed, the BOM management system can be used to identify an alternative supplier or to adjust the production schedule accordingly.

Components of BOM

BOM management allows manufacturers to create and manage detailed lists of the materials and components needed to produce a particular product by providing a comprehensive and centralized view of all the materials and components required for production. This information is typically stored in a BOM management software, which can be accessed by different departments within a manufacturing company, such as engineering, purchasing, and production.

One of the key benefits of BOM management is that it allows manufacturers to track the cost of materials and components. This is achieved by linking the BOM to the company's financial systems, such as accounting and enterprise resource planning (ERP) software. The BOM management software can then automatically update the cost of materials and components as prices change, providing an up-to-date view of the total cost of production. This information can be used to make informed decisions about purchasing, budgeting, and pricing.

BOM management also allows manufacturers to plan production schedules. By providing detailed information on the quantities, specifications, and suppliers of each item needed to complete the product, the BOM management software can be used to create production schedules that take into account the availability of materials and components. This can help manufacturers to avoid delays in production caused by stockouts or late deliveries.

Additionally, BOM management allows manufacturers to track the progress of production, as well as to identify and resolve any issues that may arise. For example, if a component is out of stock or is delayed, the BOM management system can be used to identify an alternative supplier or to adjust the production schedule accordingly.

How to Calculate BOM

Calculating the bill of materials (BOM) for a product involves determining the total cost of all the materials and components required to produce that product. This can typically be done by using the information stored in the BOM management software, which includes the quantities, specifications, and suppliers of each item needed to complete the product.

To calculate the BOM for a product, the following steps can be taken:

1. Gather the information from the BOM management software: This includes the quantities, specifications, and suppliers of each item needed to complete the product.
2. Determine the cost of each item: This can be done by using the information provided by the suppliers, or by looking up the cost of the items in a database or online.
3. Multiply the cost of each item by the quantity required: This will give the total cost of each item.
4. Add up the total cost of all the items: This will give the total cost of all the materials and components required to produce the product.
5. Add any additional costs: This includes any other costs associated with the production process such as labor, overhead, and shipping costs.
6. The final BOM cost is the sum of the total cost of materials, components, and other costs.

It's important to note that the process of calculating the BOM cost can vary depending on the complexity of the product and the system used to manage the BOM. Also, the BOM cost can be calculated per unit or in total, it can be calculated in different currencies, and it can be broken down into different levels of detail, such as by component, by assembly, or by product.

Examples, 

Example 1: Calculating the BOM for a simple product, such as a wooden chair.

• The chair requires 4 wooden legs at a cost of $5 each, for a total cost of $20.
• The chair requires 1 wooden seat at a cost of $8, for a total cost of $8.
• The chair requires 1 wooden backrest at a cost of $10, for a total cost of $10.
• The chair requires screws and glue at a cost of $2.
• The total cost of materials and components required to produce one chair is $40.

Example 2: Calculating the BOM for a more complex product, such as a smartphone.

• The smartphone requires 1 processor at a cost of $50.
• The smartphone requires 2GB of memory at a cost of $20.
• The smartphone requires 32GB of storage at a cost of $25.
• The smartphone requires a 5.5-inch display at a cost of $30.
• The smartphone requires various other components such as a battery, camera, and speaker at a total cost of $30.
• The total cost of materials and components required to produce one smartphone is $155.

In these examples, we can see how the BOM cost is calculated by gathering the information from the BOM management software, determining the cost of each item, multiplying the cost of each item by the quantity required, adding up the total cost of all the items, adding any additional costs and finally, the BOM cost is the sum of the total cost of materials, components, and other costs.

It's important to note that these examples are simplified, in practice, the BOM calculation can be more complex due to the many components and sub-assemblies involved in the products, and the different costs associated with each component.

EMASUITE BOM Management 

EMASUITE is a manufacturing software that includes BOM management as one of its key features. BOM management within EMASUITE allows manufacturers to create and manage detailed lists of the materials and components needed to produce a particular product, and provides a centralized view of all the materials and components required for production.

With EMASUITE, manufacturers can create and maintain a bill of materials (BOM) for each product they manufacture. The BOM is linked to the company's financial systems, such as accounting and enterprise resource planning (ERP) software, which allows the BOM management software to automatically update the cost of materials and components as prices change. This provides an up-to-date view of the total cost of production, which can be used to make informed decisions about purchasing, budgeting, and pricing.

EMASUITE also allows manufacturers to plan production schedules by providing detailed information on the quantities, specifications, and suppliers of each item needed to complete the product. This feature can help manufacturers to avoid delays in production caused by stockouts or late deliveries.

Additionally, EMASUITE allows manufacturers to track the progress of production, as well as to identify and resolve any issues that may arise. For example, if a component is out of stock or is delayed, the BOM management system can be used to identify an alternative supplier or to adjust the production schedule accordingly.