BOM
Bill of Materials
A structured list of all materials, parts and sub-assemblies required to manufacture one finished product — the foundation for MRP and cost calculations.
What is a BOM?
BOM (Bill of Materials) is a structured list of all raw materials, sub-assemblies, parts and consumables required to manufacture one unit of a finished product. The bill of materials is multi-level — the finished product is made up of sub-assemblies, which are composed of further sub-assemblies, down to the purchased materials at the lowest level.
Example from a metal fabrication company: the BOM for a sofa set contains the frame (3 kg of steel tube, 12 M8 screws, 1 welding labour unit), upholstery (2.4 m of fabric, 1.2 kg of foam) and packaging. MRP derives precise purchasing and capacity requirements from the BOM and sales orders; a cost estimator uses it to calculate the manufacturing cost; and an engineer uses it during change management processes.
Types of bills of materials you will encounter in practice:
- Engineering BOM (eBOM) — from the designer’s perspective
- Manufacturing BOM (mBOM) — from the production perspective, including the routing
- Sales BOM — configuration visible to sales
When it is used
Without a bill of materials, serious production planning, price calculation, or inventory management is not possible. A BOM is essential when creating quotes, calculating margins and during engineering change orders (ECO).
See the Production module, the Warehouse module, and the manufacturing industry page.
Related terms
- MRP — consumes the BOM as an input dataset. See /en/glossary/mrp.
- MES — uses the BOM when dispatching operations to the shop floor. See /en/glossary/mes.
- SKU — each item in the BOM has its own unique SKU. See /en/glossary/sku.
In Modulario
In Modulario the bill of materials is a first-class object in the Production module — it supports multi-level structures, alternative components, versions, and change history. The BOM feeds directly into Warehouse (automatic stock deduction) and Quotes (cost recalculation when material prices change).
When a component in the BOM changes (e.g. new price, alternative supplier, engineering change), versioning preserves the history — the system can show which parts were used to build the unit with serial number XY six months ago. This traceability is required by automotive customers and the pharmaceutical industry.
Related terms
MRP
Material requirements planning — calculating what to order or manufacture, when and in what quantity to cover planned orders.
MES
A system for real-time management and monitoring of production at shop floor level — who, what, on which machine and with what result is happening right now.
ERP
A comprehensive information system for managing company resources — finance, inventory, production, people and sales in one integrated platform.
OEE
An indicator of total equipment effectiveness — the product of availability, performance and quality. The Industry 4.0 standard for measuring manufacturing productivity.
SKU
A unique internal code for a warehouse item — identifies a specific product variant combination (size, colour, packaging) for stock management purposes.
Related Modulario modules
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