Whether you’re building a new product or managing an existing one, you need to keep track of the materials that go into it. Using a tree diagram can help you do this.
While there is software that manages BOMs, Excel provides accessibility and flexibility for a small to mid-size business without the monthly costs of specialized solutions.
Create a Parts List
The Bill of Materials (BOM) is more than a list of ingredients. It is a tool that helps add efficiency to the procurement process and keeps production lines moving without delays or extra warehousing costs. A well-made BOM is an essential tool for businesses that design or assemble products and should be available to everyone involved in the project.
A good BOM template is highly customizable to fit any project. It provides a guide to what should be included and makes it easier for all stakeholders to follow the same communication protocol for requesting materials, parts or sub-assemblies. This leads to more consistency in part selection, which can result in better inventory management and project planning.
For each part or material, the BOM template should include all attributes needed for a particular project. This includes the part name, quantity and unique part number for reference, as well as the correct metric or unit of measurement. It should also contain a list of all vendors or suppliers for the project and include their contact details.
Ideally, the BOM template will be organized in a modular format to describe all components or sub-assemblies that are needed for the completed product. This means that the components are listed hierarchically, with each level indented to show the parent-child relationship. A single-level BOM is simple and easy to use, while a multi-level or indented BOM can be more complex.
Create a Materials List
A materials list is a document that lists the raw materials, components and sub-assemblies required in a product’s creation or manufacture. It also provides important information about the products, like their cost, a description of each item, its unit of measurement and the amount needed. This template is a useful tool for both the production and project management departments, as it helps ensure that all necessary parts and materials are available before starting the work on a particular product. It also allows the team to keep track of the material inventory, which in turn can help reduce any unforeseen expenditures.
It also serves as a useful tool to communicate with other parties involved in the project, especially with suppliers. This is because it shows them the specific raw materials that are needed and helps in better communication regarding the project. It is like an ingredient list for a recipe, which means that it is important to be as accurate and clear as possible so that everyone involved in the process can understand the requirements and be able to create the desired product.
Besides, this template is also a good way to keep track of costs, since it includes pricing information for each of the items on the list. This can prove to be extremely helpful, particularly for companies that are working on multiple projects at the same time, as it helps them compare costs and determine whether any discounts should be sought out from their vendors or suppliers.
Create a Sub-Assembly List
A bill of materials template, also known as a BOM, is a comprehensive list of all components, parts and raw material required to manufacture a particular product. Normally, the list includes part numbers, descriptions and quantities. It may also include units of measurement and sometimes other specs. BOMs typically use a tree-diagram layout to illustrate the structure of a product’s assembly.
A multi-level bill of materials, which is also referred to as an indented BOM, uses the parent-child relationship to display all components, sub-assemblies and raw materials. This arrangement allows you to easily troubleshoot problems that might occur during the production process by identifying which subassembly is affected.
The benefits of a well-designed bill of materials are not limited to preventing production delays and waste. It can help control inventory and make the most of the available warehouse space, and inform other critical business processes such as resource planning and enterprise resource management. Additionally, a BOM is an important tool for determining production costs and identifying cost-effective ways of outsourcing material requirements. All these advantages make a well-designed BOM essential for the manufacturing industry.
Create a Bill of Materials
Just like a chef has a recipe and list of ingredients to guide her in creating a dish, product manufacturers need something similar for the products they are assembling or manufacturing. That’s where the bill of materials (BOM) comes in. This list of required parts and components serves as the assembly instructions for a particular project or product, helping to reduce production delays and waste.
Often used by engineering or design teams, project or product managers and external suppliers or vendors, the BOM is a crucial piece of information for everyone involved in producing the final result. It can also be used as a tool to estimate the total cost of the finished product or to track project and material costs.
To make sure that everyone working on a BOM has the latest version of the document, it is important to use a system for managing changes and revisions. While there are software systems available to help manage bills of materials, most companies will continue to rely on spreadsheets that can be easily modified by multiple individuals.
Excel is a popular choice for storing and tracking BOM documents because it is flexible and easy to use. While it may not be the best option for managing all of your product data, it can be a good starting point until you decide to move on to more advanced inventory control or MRP software.