Bill of Material Glossary

The manufacturing software industry has many industry-specific terms. We've compiled a short list of key manufacturing terms used with Bill of Materials in Manufacturing module. Here it is:

Backflush The deduction from inventory records of the component parts used in an assembly or subassembly by exploding the bill of materials by the production count of assemblies produced.

Bill of material (BOM)A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly. It is used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released. The bill of material may also be called the formula, recipe, or ingredients list in certain process industries.

Bill-of-material explosion – The process of determining component identities, quantities per assembly, and other parent/component relationship data for a parent item. Explosion may be single level, indented, or summarized.

BOM Regeneration - used to regenerate the bill of material standard cost for the selected routings. This function is used when a large number of routings or versions have been updated, material standard costs have changed, or work center labor and burden costs have changed.

Component – Raw material, part, or subassembly that goes into a higher level assembly, compound, or other item. This term may also include packaging materials, for finished items.

Cost bill of material A form of bill of material that extends the quantity-per of every component in the bill by the cost of the components.

Cost of goods sold An accounting classification useful for determining the amount of direct materials, direct labor, and allocated overhead associated with the products sold during a given period of time.

Discrete manufacturing Production of distinct items such as automobiles, appliances, or computers.

Indented bill of material A form of multilevel bill of material. It exhibits the highest level parents closets to the left margin, and all the components going into these parents are shown indented toward the right. All subsequent levels of components are indented farther to the right. If a component is used in more than one parent within a given product structure, it will appear more than once, under every subassembly in which it is used.

Intermediate part : subassembly that goes into higher level assembly or compound.

Labor cost the dollar amount of labor performed during manufacturing. This amount is added to direct material cost and overhead cost to obtain total manufacturing cost.

Parent item The item produced from one or more components.

Pegging – the capability to identify for a given item the sources of its gross requirements and/or allocations. Pegging can be thought of as active where used information.

Phantom bill of material A bill-of-material coding and structuring technique used primarily for transient item. A phantom bill of material represents an item that is physically built, but rarely stocked, before being used in the next step or level of manufacturing. This permits MRP logic to drive requirements straight through the phantom item to its ability to net against any occasional inventories of the item. This technique also facilitates the use of common bills of material for engineering and manufacturing. Syn: blow through, transient bill of material.

Raw material Purchased items or extracted materials that are converted via the manufacturing process into components and products.

RawInt: This field displays the raw int for the bill of materials. R=Raw material, I=Intermediate, or T= Top Level Record.

Routing Information detailing the method of manufacture of a particular item. It includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run. In some companies, the routing also includes information on tooling, operator skill levels, inspection operations, and testing requirements, etc. Syn: bill of operations, instruction sheet, manufacturing data sheet, operation chart, operation list, operation sheet, route sheet, and routing sheet.

Run time Time required to process a piece or lot at a specific operation. Run time does not include setup time. Syn; run standards.

Scrap Material outside of specifications and possessing characteristics that make rework impractical.

Setup 1) The work required to change a specific machine, resource, work center, or line from making the last good piece of unit A to the first food piece of unit B. 2) The refitting of equipment to neutralize the effects of the last lot produced; e.g., teardown of the just completed production and preparation of the equipment for reproduction of the next scheduled item. Syn: changeover, turnaround, and turnaround time.

Setup costs Costs such as scrap costs, calibration costs, downtime costs, and lost sales associated with preparing the resource for the next product. Syn; changeover costs, turnaround cost.

Single-level bill of material A display of components that are directly used in a parent item. It shows only the relationships one level down.

Standard costs - The target costs of an operation, process, or product including direct material, direct labor, and overhead charges.

Subassembly – An assembly that is used at a higher level to build another assembly.

Tree View: The tree structure shows an indented BOM and relationships between the different items used in the manufacture of this part.

Where-used list - A listing of every parent item that calls for a given component, and the respective quantity required, from a bill-of material file. 

Yield the ratio of usable output from a process to its input.