A bill of materials (BOM) is a centralized source of information used to manufacture a product. It is a list of the items needed to create a product and the instructions on how to assemble that product. The BoM production flowchart illustrates the important steps one must follow when creating a bill of materials. These steps include creating sales quotations, updating BOM, production order planning, issues for production, getting receipts from production, inventory transfer from metal to the showroom, and more. In simpler words, a bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts, and components and the quantities of each needed to manufacture a product.
