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Guide to a Perfect BOM Management
A Bill of Materials(BOM) is a document which lists all the raw materials, assemblies, components and subcomponents of a product along with additional details such as cost, manufacturer etc.
Each product has its own unique BOM and several products have mini BOMs; this means that individual parts of the product can have their own BOMs if they are manufactured in-house.
BOMs are extremely crucial for today’s businesses as it is key in maximizing efficiency among different parts of the organization.
It allows different departments to have a free flow of information and to avoid problems such as restocking inventory of retired assets, not being able to find alternatives to different parts, losing valuable data on production costs etc.
All of this leads to a waste of resources on obsolete goods and losing time for the finished product to arrive at stores.
As corporations become more service-based and automated systems continue to reduce time lags in the production line, it has become mandatory for all firms to include a BOM for almost each and every product, whether it be a new product or a brand.