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You are Here: Fabrikator » Production Management » What is Bill of Material and why is it important?

What is Bill of Material and why is it important?

20 May 2018 · Fabrikatör Leave a Comment

What is Bill of Material and why is it important?

Businesses of all types and sizes that sell a product or service to their customers must first produce the product or service itself. It brings together the necessary raw materials, manpower, materials and other elements. It then starts the production process by completing the preparations for processing the product.

Bill of Material (BOM) in English is the name given to documents listing the materials required for the emergence of a product or service. The bill generation process, which is one of the most important steps in production management, is designed as a simple chart showing how much of a raw material the manufacturer should use to complete a production.

Bills can be used to list raw materials or components, as well as listing multiple products that have already been produced, for example in stores selling packaged products. For example, a retailer who sells a Christmas package may list the names of products already in production and included in the New Year’s package instead of writing raw materials or components in the bill for the Christmas package.

Why is it important to use BOM?

The biggest benefit of the product bills is to show the operators which raw material will be spent for production and how much. At the end of a production process, operators using a bill can observe the amount of raw material to be spent in their stocks and the amount of products that will enter their stocks, and accordingly manage stock management more effectively and effectively. For example, a peddler who sells only lemonade in his shop, after determining how much lemonade he has to produce during the day, knows how many lemons, how many liters of water and how many cubes of sugar he should have in his shop by using the lemonade bill. In this way, the most efficient way to complete the most efficient way to complete the sale of the store.

What Are the Role of Bill of Material in the Fabrikator?

The bills in the interface of the Fabricator are the first step of the ease of inventory management provided by the Fabricator to the operators. Operators who use the parachute pre-accounting program and manage the production processes through this program can manage their stocks and production processes in Parachute accounts very easily thanks to the product bills they will create through the Interface of the Factory. The bill of materials included in the Fabricator recognizes the products and raw materials in your Parachute account and helps you to easily create the product receipt for your production. After you create your product recipe, you can complete the process of dropping the raw materials in your Parachute account and transferring the product to your Parachute account by entering a production instruction through the Fabricator.

For more detailed insight into the Fabricator that will simplify your production planning and management processes, see the Fabricator User Manual.

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