What is Bill Of Materials Management?

Bill Of Materials Management Definition

Bill of materials (BOM) management is the process of organizing and controlling all information pertaining to the components, parts, assemblies, subassemblies, and other materials necessary to produce a product.

It entails compiling and maintaining a list of all the items required to manufacture a product, including their quantities, costs, and suppliers. This data is essential for production planning, inventory management, and purchasing. BOM management software is commonly used to organize and streamline this process, allowing manufacturers to generate accurate BOMs quickly and efficiently.

Effective BOM management enables manufacturers to reduce errors and waste, ultimately resulting in more cost-effective production processes. In addition, it allows manufacturers to identify and track the availability of all components, enabling them to optimize inventory levels and avoid production delays.

The Cost

Delivering new products to market is challenging. And it is difficult to see the cost impact of one or more mistakes.

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