What is Bill of Materials (BOM)?

Term: Bill of Materials

A Bill of Materials (BOM) is a detailed list of raw materials, parts, quantities, and instructions on how to build, manufacture, and procure materials for an end product. Presented in a hierarchical format, it’s a blueprint that’s used to help in-house or contract manufacturers understand what’s needed and how to build net-new products and make product revisions. It’s an important part of the manufacturing process that allows designers, engineers, manufacturers, and salespeople to see and understand all components that go into a product.

Key benefits of bill of materials

Simplifies manufacturing process

The Bill of Materials breaks down complete products by individual components and allows information to be shared between different departments on the different parts, materials, and assembly. Think of it like a blueprint for a house that includes information about the floorplan, dimensions, and where electrical and plumbing go.

Reduces revision time

BOMs simplify the revision process by following a change control process that governs how revisions are made. This process ensures that the changes are documented and communicated across teams before entering production.

Reduces time between engineering and manufacturing

When the design and engineering team passes off a BOM to the manufacturer say, for example, for external computer speakers, they can review the BOM and immediately know how much plastic they will need to order for the housing or how to assemble the different parts.