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What is a Bill of Materials?
Why is it important?
Steve Hess
Director of User Experience, OpenBOM
stevehess@openbom.com
Wednesday December 4th, 2019
© OpenBOM, 2019 (Newman Cloud Inc.)
This webinar is NOT a deep dive BOM or
Manufacturing theory. We will be discussing thoughtful
answers to the questions above.
This is a “Marketing Free” event!
This webinar is 30 minute or less discussion asking and
answering a few basic questions; What is a Bill of Materials
and Why is it important?
We will do a live demo….. With Q&A
© OpenBOM, 2019 (Newman Cloud Inc.)
Definitions: (typical)
A Bill of Materials is a list of the raw materials, sub-assemblies, intermediate assemblies,
sub-components, parts, and the quantities of each needed to manufacture an end product.
A Part Number is an unambiguous identifier of a particular part design. Its purpose is to
simplify reference to that part.
A Part (Often called an Item) is generally defined as a thing in your BOM.
A Property is the piece of data you wish to store for a particular Item, the column header (ex. Cost or
Description)
© OpenBOM, 2018 (Newman Cloud Inc.)
What are we going to do today..?
Ask and Answer
1) What is a Bill of Materials. Not necessarily the wikipedia or academic
answer……. What does a Bill of Materials means to you or your company?
→ It’s a list
2) Why is it important to you, your company and your product?
→ So we can make our product
© OpenBOM, 2019 (Newman Cloud Inc.)
I. What is a Bill of Materials? Classic Definition
Wikipedia - A bill of materials or product structure is a list
of the raw materials, sub-assemblies, intermediate assemblies,
sub-components, parts, and the quantities of each needed to
manufacture an end product. A BOM may be used for
communication between manufacturing partners or confined to a
single manufacturing plant. Wikipedia
© OpenBOM, 2019 (Newman Cloud Inc.)
Upchain - A bill of materials
(BOM) is a centralized source of
information that lists all assemblies,
sub-assemblies, parts, and raw materials
needed to produce one unit of a finished
product. Simply put, each finished product
has its own bill of materials. A BOM
usually contains a hierarchy, with the
finished product displayed at the top level,
and the components and materials at the
bottom level. The quantity of each item
needed to complete one unit of the
next-highest level of assembly is also
listed.
SAP - List of all materials required in
a process together with the quantities
required
What is a Bill of Materials? Useful Definition
© OpenBOM, 2019 (Newman Cloud Inc.)
What are the requirements of your process?
● How many of which items are needed to build my product?
● What order are they assembled or in what structure(s) (sub-assemblies)?
● What do the parts look like?
● Is there any raw material needed (CNC or 2nd operations)
● How long does it take to get material or parts?
● Are specific details needed - size, length, weight, volume, screw head type, etc
● Is there a specific Supplier or Vendor or Manufacturer, or maybe not.
● Are specific instructions needed for downstream processes like assembly or test?
● How much do I pay for or sell something for?
● Are electronic files or data involved in building my product?
● The location of all these items, including electronic files and images
● …….. On and on….
What is a Bill of Materials? Our definition
A list of all materials, information and
quantities required in a process.
© OpenBOM, 2019 (Newman Cloud Inc.)
Part Number
Color
Size
Manufacturer
Cost
Material
Description
Vendor ?
Thumbnail image?
© OpenBOM, 2019 (Newman Cloud Inc.)
Color
Size Width
Cost
Cost
Cost
LengthMaterial
Width
Manufacturer
Manufacturer
Manufacturer
Bill of Materials
Part Number
Part Number
Part Number
Description
Description
Description
Our Bill of Materials?
© OpenBOM, 2019 (Newman Cloud Inc.)
From Webinar #12
II. Why is an accurate and complete BOM important?
1. Simply put, so you build the correct product!
2. What determines the accurate outcome?
1. Thoughtful & complete definition of the BOM (Item Master) properties (Webinars #2 & #12)
2. Proper Part Number and Quantity and remaining property values are Essential!!!
3. The availability of the BOM to everyone involved at all phases of the business
© OpenBOM, 2019 (Newman Cloud Inc.)
© OpenBOM, 2019 (Newman Cloud Inc.)
Secret of success → Share Your BOM
Part
Number
Quantity Description Cost Extended
Cost
PN10 4 Part1 $10 $40
PN20 5 Part2 $20 $100
L15 .2 Labor $15 $3
Part
Number
Description Cost Bin Location Quantity
On Hand
PN10 Part1 $10 B1 10
PN20 Part2 $20 B2 20
PN30 Part3 $30 B3 30
L15 Labor $15 ---- ---
Part
Number
Quantity Description Cost Extended
Cost
PN10 4 Part1 $10 $40
PN30 5 Part3 $30 $150
L15 .25 Labor $15 $3.75
Ex. BOM2 @S100-TH
Ex. BOM1 @S100
Skateboard Item
Master/Catalog/Inventory
© OpenBOM, 2018 (Newman Cloud Inc.)
Part Number
BOM properties
Catalog properties
Live demo...
Open Solidworks Butterfly Valve assembly
Settings - Cloud to google drive
Create a Catalog
Add properties Cost, Lead TIme, Link to Spec, Process Type
Add Item - Paint, add spec
Add values for Costs, Process Type, etc
Add value for Link to Paint Spec, upload from desktop to Google Drive
Get others from Google drive
Catalog complete
Create a BOM
Link to Catalog
Organize it a bit
View an Engineer or Planner
Share with a vendor Subcontractor@newmancloud.com
Sign in as subscontrctor
© OpenBOM, 2019 (Newman Cloud Inc.)
© OpenBOM, 2019 (Newman Cloud Inc.)
Closing thoughts of What and Why your BOM is important
● Ask yourself and your team what is important to your products quality
● Turn those requirements into items and properties
● Define them as part of an Item Master (Catalog)
● Create your usage BOM and assign Item Master Catalog
● Enter or get from CAD Part Number and Quantity into your BOM
● Share your BOM ← Absolutely the secret to success!!
● Control access as needed.
● Watch Webinars #2 and #12
References
OpenBOM blog http://www.openbom.com/blog
A deep dive into properties https://www.youtube.com/watch?v=LQOlHTLzBSo
OpenBOM Key Concepts https://www.youtube.com/watch?v=TQqjjM0x70E
Business.com - Importance of a BOM https://www.business.com/articles/bill-of-materials/
My Webinar Playlist: https://www.youtube.com/playlist?list=PL6nXtFuNki7nSNXmw_fWGTFeKo8Y3EPJ3
Parts and Item Master:
https://www.youtube.com/watch?v=6ip-0CLsi7A&list=PL6nXtFuNki7nSNXmw_fWGTFeKo8Y3EPJ3&index=10&t=0s
Business data in BOM:
https://www.youtube.com/watch?v=UnqvulIPxMQ&list=PL6nXtFuNki7nSNXmw_fWGTFeKo8Y3EPJ3&index=5&t=0s
© OpenBOM, 2019 (Newman Cloud Inc.)
Questions?
Please type into the webinar panel or send to support@openbom.com
More information at www.openbom.com
© OpenBOM, 2019 (Newman Cloud Inc.)
© OpenBOM, 2019 (Newman Cloud Inc.)
This webinar can be viewed here:

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Bill of Materials Back to Basics: What does it contain and why to share it?

  • 1. What is a Bill of Materials? Why is it important? Steve Hess Director of User Experience, OpenBOM stevehess@openbom.com Wednesday December 4th, 2019 © OpenBOM, 2019 (Newman Cloud Inc.)
  • 2. This webinar is NOT a deep dive BOM or Manufacturing theory. We will be discussing thoughtful answers to the questions above. This is a “Marketing Free” event! This webinar is 30 minute or less discussion asking and answering a few basic questions; What is a Bill of Materials and Why is it important? We will do a live demo….. With Q&A © OpenBOM, 2019 (Newman Cloud Inc.)
  • 3. Definitions: (typical) A Bill of Materials is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end product. A Part Number is an unambiguous identifier of a particular part design. Its purpose is to simplify reference to that part. A Part (Often called an Item) is generally defined as a thing in your BOM. A Property is the piece of data you wish to store for a particular Item, the column header (ex. Cost or Description) © OpenBOM, 2018 (Newman Cloud Inc.)
  • 4. What are we going to do today..? Ask and Answer 1) What is a Bill of Materials. Not necessarily the wikipedia or academic answer……. What does a Bill of Materials means to you or your company? → It’s a list 2) Why is it important to you, your company and your product? → So we can make our product © OpenBOM, 2019 (Newman Cloud Inc.)
  • 5. I. What is a Bill of Materials? Classic Definition Wikipedia - A bill of materials or product structure is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end product. A BOM may be used for communication between manufacturing partners or confined to a single manufacturing plant. Wikipedia © OpenBOM, 2019 (Newman Cloud Inc.) Upchain - A bill of materials (BOM) is a centralized source of information that lists all assemblies, sub-assemblies, parts, and raw materials needed to produce one unit of a finished product. Simply put, each finished product has its own bill of materials. A BOM usually contains a hierarchy, with the finished product displayed at the top level, and the components and materials at the bottom level. The quantity of each item needed to complete one unit of the next-highest level of assembly is also listed. SAP - List of all materials required in a process together with the quantities required
  • 6. What is a Bill of Materials? Useful Definition © OpenBOM, 2019 (Newman Cloud Inc.) What are the requirements of your process? ● How many of which items are needed to build my product? ● What order are they assembled or in what structure(s) (sub-assemblies)? ● What do the parts look like? ● Is there any raw material needed (CNC or 2nd operations) ● How long does it take to get material or parts? ● Are specific details needed - size, length, weight, volume, screw head type, etc ● Is there a specific Supplier or Vendor or Manufacturer, or maybe not. ● Are specific instructions needed for downstream processes like assembly or test? ● How much do I pay for or sell something for? ● Are electronic files or data involved in building my product? ● The location of all these items, including electronic files and images ● …….. On and on….
  • 7. What is a Bill of Materials? Our definition A list of all materials, information and quantities required in a process. © OpenBOM, 2019 (Newman Cloud Inc.)
  • 8. Part Number Color Size Manufacturer Cost Material Description Vendor ? Thumbnail image? © OpenBOM, 2019 (Newman Cloud Inc.) Color Size Width Cost Cost Cost LengthMaterial Width Manufacturer Manufacturer Manufacturer Bill of Materials Part Number Part Number Part Number Description Description Description
  • 9. Our Bill of Materials? © OpenBOM, 2019 (Newman Cloud Inc.) From Webinar #12
  • 10. II. Why is an accurate and complete BOM important? 1. Simply put, so you build the correct product! 2. What determines the accurate outcome? 1. Thoughtful & complete definition of the BOM (Item Master) properties (Webinars #2 & #12) 2. Proper Part Number and Quantity and remaining property values are Essential!!! 3. The availability of the BOM to everyone involved at all phases of the business © OpenBOM, 2019 (Newman Cloud Inc.)
  • 11. © OpenBOM, 2019 (Newman Cloud Inc.) Secret of success → Share Your BOM
  • 12. Part Number Quantity Description Cost Extended Cost PN10 4 Part1 $10 $40 PN20 5 Part2 $20 $100 L15 .2 Labor $15 $3 Part Number Description Cost Bin Location Quantity On Hand PN10 Part1 $10 B1 10 PN20 Part2 $20 B2 20 PN30 Part3 $30 B3 30 L15 Labor $15 ---- --- Part Number Quantity Description Cost Extended Cost PN10 4 Part1 $10 $40 PN30 5 Part3 $30 $150 L15 .25 Labor $15 $3.75 Ex. BOM2 @S100-TH Ex. BOM1 @S100 Skateboard Item Master/Catalog/Inventory © OpenBOM, 2018 (Newman Cloud Inc.) Part Number BOM properties Catalog properties
  • 13. Live demo... Open Solidworks Butterfly Valve assembly Settings - Cloud to google drive Create a Catalog Add properties Cost, Lead TIme, Link to Spec, Process Type Add Item - Paint, add spec Add values for Costs, Process Type, etc Add value for Link to Paint Spec, upload from desktop to Google Drive Get others from Google drive Catalog complete Create a BOM Link to Catalog Organize it a bit View an Engineer or Planner Share with a vendor Subcontractor@newmancloud.com Sign in as subscontrctor © OpenBOM, 2019 (Newman Cloud Inc.)
  • 14. © OpenBOM, 2019 (Newman Cloud Inc.) Closing thoughts of What and Why your BOM is important ● Ask yourself and your team what is important to your products quality ● Turn those requirements into items and properties ● Define them as part of an Item Master (Catalog) ● Create your usage BOM and assign Item Master Catalog ● Enter or get from CAD Part Number and Quantity into your BOM ● Share your BOM ← Absolutely the secret to success!! ● Control access as needed. ● Watch Webinars #2 and #12
  • 15. References OpenBOM blog http://www.openbom.com/blog A deep dive into properties https://www.youtube.com/watch?v=LQOlHTLzBSo OpenBOM Key Concepts https://www.youtube.com/watch?v=TQqjjM0x70E Business.com - Importance of a BOM https://www.business.com/articles/bill-of-materials/ My Webinar Playlist: https://www.youtube.com/playlist?list=PL6nXtFuNki7nSNXmw_fWGTFeKo8Y3EPJ3 Parts and Item Master: https://www.youtube.com/watch?v=6ip-0CLsi7A&list=PL6nXtFuNki7nSNXmw_fWGTFeKo8Y3EPJ3&index=10&t=0s Business data in BOM: https://www.youtube.com/watch?v=UnqvulIPxMQ&list=PL6nXtFuNki7nSNXmw_fWGTFeKo8Y3EPJ3&index=5&t=0s © OpenBOM, 2019 (Newman Cloud Inc.)
  • 16. Questions? Please type into the webinar panel or send to support@openbom.com More information at www.openbom.com © OpenBOM, 2019 (Newman Cloud Inc.)
  • 17. © OpenBOM, 2019 (Newman Cloud Inc.) This webinar can be viewed here: