Bills of Material or BOM

Product is the individual most significant identity in an organization. A product might be made from one or more components, assemblies, and subassemblies. The components are made from some form of component and raw materials. Though, the categories of subassemblies, raw material, components, and last assemblies vary from product to product. For manufacture the product hence it is significant to know the product structure and have correct information on the assemblies, subassemblies, and components. A bill of materials is an engineering text that offers information on the product structure via listing the subassemblies and component parts required to make all end item. The structure of an assembled product can be demonstrated by a simple illustration represented in following figure.                                       

                                                                           Figure: Product Structure of Product P₁

Now, product P is composed of two subassemblies, S₁ and S₂, all of that is made up of components as C₁, C₂, and C₃, and C₄, C₅, C₆, respectively. At last, at the bottom level are the raw materials which go into all components.