A bill of materials (BOM) is a complete listing of parts, assemblies, and other materials required to build a product. A BOM can be thought of as the recipe used to create a product. The bill of materials explains what, how, and where to buy required materials, and includes instructions for how to assemble the product from the various parts ordered.
A single-level BOM represents one level of an assembly and does not include any lower-level subassemblies.
A multilevel BOM contains several subassemblies, each of which can also be a single-level BOMs.
Bill of materials (BOM) computations use data from a variety of sources to determine a manufactured item’s typical costs. Information regarding items, bill routings, indirect cost calculation algorithms, and the costing version are among the sources.
*Source: https://docs.microsoft.com
Single-level BOMs are typically used for products that are simple in design and do not require any subassemblies.
The two main types of BOMs are engineering BOMs and manufacturing BOMs.
*Source: https://www.investopedia.com
Delivering new products to market is challenging. And it is difficult to see the cost impact of one or more mistakes.
Try our calculator to estimate the impact on your business. Input your business details, select a challenge, and see the real-world cost impact as validated by our customers.