6 Tips For Creating A Successful Bill Of Materials (BOM)

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By Jacob Maslow

A Bill of Materials (BOM) is a critical document used in manufacturing and production. It lists all the components, parts, and raw materials required to make a product. A BOM is essential for accurate costing, purchasing, and production planning. However, creating a BOM can take time and effort, particularly for SMBs with limited resources.

So, how can businesses ensure that their BOM is accurate and effective without dedicating significant time and resources to the task? The following sections will provide tips to help businesses create a successful BOM that streamlines their production process, reduces costs, and ensures high-quality products.

  1. Organize the BOM

Organizing the BOM logically and hierarchically is crucial to ensure it’s clear and understandable. First and foremost, the BOM should prioritize the main components of the product and, subsequently, the sub-components and parts.

It should include relevant information about each component and raw material, such as its name, description, quantity, supplier, and special instructions or notes. The notes may include storage requirements, handling instructions, and quality standards.

Suppose you’re running a mug-making business and must keep track of the components and materials required for each mug. In this case, you must create a BOM containing all the necessary parts and quantities to produce it. Here’s an example of what such a BOM might look like:

Main Component Sub-Component Part Name Description Quantity Supplier Special Instructions
Mug Body N/A Ceramic Mug Ceramic mug for mug making 1 XYZ Ceramics Microwave and dishwasher safe
Mug Handle N/A Ceramic Handle Ceramic handle for mug making 1 XYZ Ceramics Microwave and dishwasher safe
Glaze Base Glaze Glaze 1 White glaze for mug body 1 L ABC Glaze Co. Apply with a spray gun
Glaze Accent Glaze Glaze 2 Blue accent glaze for mug handle 500 mL ABC Glaze Co. Apply with a brush
Decal N/A Custom Decal Custom logo decal for mug body 1 XYZ Decal Co. Apply by heat transfer
Packing N/A Cardboard Box Standard cardboard box for shipping 1 XYZ Packaging Co.
Packing N/A Bubble Wrap Bubble wrap for additional protection during shipping 2 ft XYZ Packaging Co.


  1. Utilize Technology

Utilizing technology in creating and managing BOMs should be emphasized more. BOM management software for SMB is one example of available software that can automate the BOM process, from creating the initial list to tracking real-time changes and updates. This software saves time and reduces the likelihood of human errors.

Moreover, utilizing a cloud-based platform allows for easy access and collaboration among team members from different locations, making working together easier and ensuring a successful product development process.

  1. Ensure Accuracy and Timely Updates

Ensuring accuracy and updating the BOM is critical to creating it successfully. Any errors or omissions can lead to costly mistakes in production, such as using the wrong components or running out of critical materials.

A dedicated team member or department responsible for BOM management can help ensure that changes are documented and reflected in the BOM promptly. Regular reviews and audits can also help identify any inaccuracies or omissions that need to be corrected, ensuring that the BOM accurately reflects the current state of the production process.

  1. Use Consistent Terminology

Consistent terminology is essential to ensure precision and avoid confusion when creating a BOM. For example, if one team member refers to a component as ‘screw A’ while another refers to the same component as’ fastener B,’ it can lead to confusion and mistakes in the production process. The BOM should use a consistent naming convention for all components and raw materials to prevent this.

One way to achieve consistency is to use industry-standard part numbers or descriptions. Another way is to create a glossary or dictionary of terms used in the BOM to ensure that all team members use the same terminology.

Using consistent terminology helps avoid errors and improves communication among team members and suppliers. When everyone is using the same language, it becomes easier to communicate about the components and raw materials, which can lead to more efficient and effective production processes.

  1. Maintain Version Control

Maintaining version control is crucial to avoid confusion and costly mistakes during product development. It involves tracking changes to the BOM and providing a clear record of its evolution over time. This process helps ensure that all team members work from the same version and that changes are appropriately documented.

Creating a new version for each change, including clear notes on the modifications, who made them, and when they were made, is an effective way to maintain version control. Tracking and documenting data changes ensures up-to-date accuracy and proper documentation.

  1. Ensure Compatibility with Other Systems

Ensuring seamless integration with other manufacturing systems is paramount in creating a successful BOM.

Compatibility with widely used systems such as Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) is required to guarantee the information’s accuracy, timeliness, and uniformity. It also promotes streamlined processes and enhances team communication and collaboration, as everyone can access the same reliable data at any given time.


Creating a successful BOM is vital for manufacturing and production, yet it can be daunting. However, with the right approach, you can simplify the process and create a BOM that meets your production needs. By following these tips, you can improve the accuracy and effectiveness of your BOM, streamline the production process, and achieve high-quality products.


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