Question

1、 Explain the function of a bill of material in the production process

Answer 1

Bill of Materials (BOM) is a detailed list of all the items required for a job, process or production. It gives a detail of all the materials as well as quantities of each item which are being in used in the manufacturing process.

Functions:-

(1) It gives an indication to all the persons about the orders to be executed.

(2) It gives an indication to the purchase department to purchase the required material if the same is not available with the stores.

(3) On the basis of bills of materials the production department places the material requisition slips.

(4) Preparation of Bill of Materials in advance serves as a base for the computation of the material cost in respect of a job or production order and for quoting the price for the production order.