Glossary · Supply chain & plants

Bill of materials (BOM) meaning

BOM stands for bill of materials: the parts, raw materials and packaging, with quantities, needed to make one unit of a product. See types and a worked example.

What does BOM stand for in manufacturing?

BOM stands for bill of materials. It is the recipe of a product written for the store and the purchase desk: each line names an item, its unit of measure and the quantity used per unit or per batch of the parent product. In Indian plants the same idea goes by many local names, such as the formula sheet in food and chemicals, the cutting list in garments and furniture, or the part list in engineering shops.

How is a BOM used in production planning?

The BOM is the bridge between what the plant will make and what it must buy. Once the production plan says how many units of each SKU will be made on which day, the BOM converts that into material need. Stock on hand and stock already in transit are then netted off, and the supplier lead time decides the order-by date. This is the core of material requirements planning, and it is why a wrong BOM line quietly corrupts every purchase that follows. Our guide to raw material planning from the production plan walks through that chain step by step.

Many FMCG and food plants keep a separate packaging BOM because wrappers, pouches and cartons change more often than the product itself. In production planning software such as Autowhat's planner, the packaging BOM turns projected production into bag, pouch and carton need per SKU alongside the raw-material plan.

What does a simple BOM look like? A worked example

Illustrative figures only. A biscuit SKU is packed 24 packs to a carton, and each pack holds 100 g of biscuits.

ItemUnitQty per cartonNeed for 500 cartons
Biscuit dough (finished weight)kg2.41,200 kg
Printed wrapperpiece2412,000
Shipper cartonpiece1500
BOPP tapemetre1.5750 m

If the plan calls for 500 cartons next week and the store already holds 4,000 wrappers, the buy for wrappers is 8,000 plus whatever allowance the plant keeps for print rejects and machine wastage.

What are the common types of BOM?

What mistakes do plants make with BOMs?

Related terms

Read next

Where this shows up in our work. Production & Procurement: Forecasts, capacity plans and purchase orders from one digital twin of the plant. Book a 30-minute working session with an engineer.

Questions

What is the full form of BOM?

BOM stands for bill of materials. It lists every raw material, component and packaging item, with quantities, needed to make one unit or batch of a product.

What is the difference between BOM and MRP?

A BOM is the static list of inputs per product. MRP is the planning process that multiplies the BOM by the production plan, subtracts stock and in-transit material, and tells you what to order and by when.

Is a BOM the same as a recipe?

In food, pharma and chemical plants the recipe or formula usually is the BOM for the product, though the recipe may also hold process steps and temperatures that a pure BOM leaves out.

General guidance, current as of the date above. Figures in examples are illustrative. Rules change: confirm with your adviser or the official portal before acting. More terms in the glossary.