Bill of Material

1. BILL OF MATERIAL
Definition
Function
Objective
Usage
BOM types

2. DEFINITION
• It is a series of structures of all
components used to produce
finished goods in accordance with
Master Production Scheduling

3. OTHER DEFINITIONS
• Is a list of ingredients, materials
or components needed to
assemble, mix or make the final
product

4. FUNCTION
• Specifically, the structure of the
Bill of Materials not only contains
the component composition, but
also contains the steps for
completing the finished product

5. OBJECTIVE
• The Bill of Materials is a network
that describes the parent product
relationship down to the
components

6. USE
• Required as input in planning and
controlling production activities
• Without a Bill of Materials, it is
impossible to implement an MRP
system

7. LEVEL OF ACCURACY
• The level of accuracy is very
crucial or can be said to be
very important

8. USES FOR ENGINEERING
• Created as part of the production
process design
• Used to determine which items
should be purchased or made
yourself

9. SYSTEMATIC
ANALYSIS
FOR BUYING

10. USE FOR PPIC
• Combined with Master Production
Scheduling (Master Production
Schedule) it is used to determine
the items in the purchase list and
production orders that must be
implemented

11. USE FOR ACCOUNTING
• Used in calculating product
costs and selling prices

12. COMPONENT NUMBERING
• Each component must have a
unique/special identification that
only identifies one component,
called the Part Number or Item
Number

13. DETERMINING PART NUMBER /
ITEM NUMBER
There are 3 ways to determine it:
1. Random
2. Significant
3. Semi-Significant

14. RANDOM
• The number is used only as an identifier
and not as a descriptor  it does not
explain further about one component
• Example: 897543 (random number) for
motorbike rear view components

15. SIGNIFICANT
• Is a number that can also explain
special information about certain
items/components, such as
material source (source),
ingredients, shape and
description

16. Significant example:
• Part Number: 89-4-2-28-143
• Item type: 89 = Tape Radio Cassette
• Type/kind: 4 = Minicompo
• LCD Type: 2 = Digital
• Color: 28 = Black
• Keys: 142 = 142 pieces

17. Significant Disadvantages
• It must be changed if the
characteristics of the
component are changed or
other variables are added

18. SEMI SIGNIFIKAN
• The first few digits explain the
component, while the following
digits are random numbers

19. • Example of Semi Significant Part Number:
89-43575 Item Type: 89 = Tape Radio
Cassette Five Digits: 43575 = Random
number

20. PARENT COMPONENT
• Also called Parent Product
• Components are objects/parts that are put
together to create a parent product.
• A component will become the parent of the
object that forms it

21. Important Data for the Accuracy of
Parent-Component Relationships
1. Parent Part Number
2. Component Part Number
3. The number / quantity of components
needed to form a parent
4. Scrap factor

22. BOM LEVELS
• Starting with level zero (0) for the final
product
• The components that make up the
final product are placed at level 1 and
so on, thus forming a so-called
hierarchy PRODUCT STRUCTURE

23. TYPES OF BOMB LEVELS
1. Single Level Bill of Material
2. Multi Level Bill of Material

24. SINGLE LEVEL BOM
• Describes the relationship of a
parent with one level of its
constituent components

25. MULTI LEVEL BOM
• Describes the complete product
structure from level zero (0) or
final product to the lowest level
• The same components can be
used at different levels

26. EXAMPLE BILL OF MATERIALS

27. EXPLANATION OF EXAMPLES
• The figure shows that the only item that is
not a component is in independent
demand, namely product A
• Meanwhile, other components are demand
dependent

28. • The quantity shown in
product A's BOM is the
quantity required to
assemble one item at the
higher level

29. Level 1  Product A Requires :
• 1 unit of component B with a lead
time of 3 weeks
• 2 units of 10 components to be
purchased (subcontracted) with a
lead time of 2 weeks
• 2 units of component C with a lead
time of 2 weeks

30. Level 2  Component B requires :
• 2 units of 20 components with a lead
time of 2 weeks
• 2 units of component D with a lead
time of 2 weeks

31. Level 2  Component C requires :
• 3 units of 30 components with a lead
time of 1 week
• 1 unit of 40 components with a lead
time of 1 week
• 2 units of 50 components purchased
from outside with a lead time of 1
week.

32. Level 3  Komponen D membutuhkan :
• 1 unit of 60 components purchased
from outside with a lead time of 1
week
• 3 units of 70 components with a lead
time of 1 week

33. EKSPLOSIAN BILL OF MATERIAL
• It is a BOM in sequence starting from the
parent to the components at the lowest
level
• It is a BOM that shows the components
that make up a parent from the highest
level to the lowest level

34. • Single explosion is the same as
Single level BOM
• Indented BOM Explosion is a multi-
level BOM that is equipped with level
information for each component
• Summarized Explosion is a multi-level
BOM that includes the total number of
each component required.

35. IMPLOSIAN BILL OF MATERIAL
• Is a BOM that shows the sequence
starting from components to the parent/top
level
• To find out which Part Number is a
component of any parent (the opposite of
the Explosion process)
• Used by engineers to see the effect of
changes in component design on their
parents