A bill of materials template can impact several aspects of a business management plan. From the number of raw materials used to the number of external vendors, having control of that information can be a game changer for making your business grow and generate more revenue.

There are several types of bill of materials templates, each with its own characteristics. This article will show you the main differences between these types, so you can decide which one will be the best for your business when creating your own BOM.

Be sure to check each type to understand which bill of materials is the best for your business. This way, you will be able to make BOM templates that positively impact every aspect of the production process, all the way to the final product.

The bill of materials is a document that works as a tool to help a company and industry experts to keep track of different items necessary for manufacturing. This document normally contains items like raw materials, required assemblies, and components to build the finished product.

Additionally, BOM templates feature all the physical parts necessary for the product, contact details from suppliers, and average unit cost. This way, the BOM template is indispensable for a business to create solid production planning with standardized communication and up-to-date product information.

Bill of materials template is vital for a business, not just because it helps in managing all the necessary materials but for numerous other reasons.

The bill of materials template is also responsible for gathering basic information from suppliers, allowing you to contact them more quickly in an emergency. Moreover, the BOM template can also help identify problems with the supply chain and guarantee that the total cost of each piece is the same.

This impacts not only the sub-assemblies of a project but also the sum of unit costs. Most organizations, manufacturing industries, or technology companies also create their own Bill of materials to help with inventory planning and the production cycle.

There are several types of bill of materials documents, each one with its own focus and set of tools. Be sure to analyze each one carefully to choose the BOM template that better fits your needs.

All types will feature the same basic information, with slight differences along the material template. Here are the most commonly used types of bill of materials templates:

Modular BOM

This is the most straightforward type of BOM template. It can be done by listing all the necessary components and part combinations in a hierarchical order.

If you have the same materials on different products, the order will also change, prioritizing the essential parts on each one. It also lets you order the sub-assemblies of a project, giving the team members a clear list of what has to be done first.

This bill of materials template is perfect for any size of business, whether you are a small company or a large organization. This is one of the most used managing BOMs you can find.

Manufacturing BOM

The main focus of this kind of bill of materials template is to list all the physical and tangible parts needed to manufacture a specific product. Filling the document hierarchy of the components is not an obligatory requirement but can help with work optimization.

Adding a short description of the relation between the pieces and how they connect is also important. This way, you fully know the parts needed to build the product and its cost.

Engineering BOM

This type of bill of materials template will not list the components and their connections, but it describes the process in more detail. This bill of materials is directly made with the help of the product engineers of your company.

The Engineering BOM is thought out based on the design of the product. The most important detail for this kind of template is the engineering needs related to manufacturing.

Although you will not list the components, you must describe them from a design perspective. For this bill of materials to work, every process must be precisely described with the help of the product’s engineer.

This type of template is commonly used in technology and mechanical engineering companies, for example. This makes it the perfect type for businesses that need detailed instructions on the product's functionality and its pieces.

Equipment BOM

As the name suggests, this bill of materials focuses on listing all the necessary equipment for a product to be manufactured. It uses the same template as the modular BOM, with the difference that you will not list the components of the product.

It is an excellent template for companies that use a lot of machines during the production process. Moreover, it is crucial for businesses that rent this equipment instead of buying their own.

If that’s the case, it is also good to take note of pricing information about the rent and the expected price for the product. You can also make comparisons with the price of this same product without having to rent the equipment.

Configurable BOM

This template is indicated when dealing with products that can have more than one configuration. It is common in products with various colors or materials.

In this bill of materials, you must organize all the possible combinations of materials for the same product. It is vital that you create color codes and other tools to help on navigating through this kind of BOM.

The bigger the number of possibilities regarding a product, the more extensive this document will be. There is no hierarchy for this kind of BOM, but it is indispensable that you sort it by product and list all the possible combinations for the same one together.

Now that you know what a bill of materials is and the main types, it is time to learn how to build your own template. Be sure to follow each step carefully to guarantee the best results out of your document.

Here are the main steps:

Determine the Categories and Data to Include

The first step in creating your template is to choose which information to feature and how. You must include all the details that can directly impact the manufacturing process of your product.

This is important because it will ensure that all the necessary materials will be available when starting to manufacture your product. Choosing the correct data will avoid problems with supplies and equipment.

Keep All Teams on the Same Page

When building this kind of document, it is really important to instruct everyone about what to write and report. The BOM is a document made with the help of almost every part of the business.

Be sure to instruct all the team members on what and when to put in the document. This way, you will have all the essential information in the same Excel spreadsheet.

Decide Who Will be Responsible for the Revisions

It is highly recommended that you choose an employee to keep the document accurate and control what needs to be changed. Most BOMs are revised daily to provide the correct values and keep reflecting the current stage of the production process.

Keeping the document updated and the information connected to its owner is indispensable for the template to work. It is also recommended that you keep the number of responsible employees manageable. This will minimize the chances of mistakes and wrong updates.

Start Listing

Now it is time to start listing everything you need. Everything must be precisely listed and described, from materials to components and equipment.

The more complete your spreadsheet gets, the easier and more optimized it will be for your team to manage the inventory levels.

When it comes to the creation of a BOM, there are tons of tools available online for managing supplies and equipment. Each has its own set of tools, from Google Sheets to specialized spreadsheets.

For this task, we highly recommend using Microsoft Excel. The software has the best tools and features for creating the perfect BOM for your business, regardless of your needs.

With Excel, you can edit even the smallest details of your document. Moreover, the software is an industry-standard, dismissing the need for specialized software for each task of your company.

If you don’t have a Microsoft Office 2021 activation key, you can find one at RoyalCDKeys for a considerably lower price. This way, you can save money and still have access to all the tools you need.

If you don’t want to create your template from scratch, there is no problem. Here are some free bill of materials templates you can download and edit using Excel to fit your expectations better:

Template #1

Complete bill of materials template. Indicated for products with long lists of materials and sub-assemblies needed.

Get this template

Template #2

Blank bill of materials spreadsheet. It can be transformed into any kind of BOM template, from modular BOM to Equipment BOM.

Get this template

Template #3

Green and white BOM. Indicated for products that don’t need detailed descriptions of parts and processes.

Get this template

There is no doubt that a BOM can be a powerful tool to help with business management, especially when dealing with inventory and suppliers. Your template must get constantly updated to guarantee the best results.

Now that you know everything about BOMs, it is time for you to start creating your own template. Be sure to download Excel and edit all the important details of your spreadsheet to guarantee an optimized document that will truly impact your company.