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A structure tree of the components in a product, with a description and the quantity required to make each product is called

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A bill of material is a formally structured list for an object (semi-finished or finished product) which lists all the component parts of the object with the name, reference number, quantity, and unit of measure of each component. A bill of material can only refer to a quantity greater than or equal to one of an object. It is a product data structure, which captures the end products, its assemblies, their quantities and relationships.

There are usually two kinds of bills of materials needed for a product: engineering and manufacturing BOM. The engineering BOM normally lists items according to their relationships with parent product as represented on assembly drawings. But this may not be sufficient to show the grouping of parts at each stage of the production process nor include all of the data needed to support manufacturing or procurement. These requirements may force the arrangement of the product structure to be different in order to assure manufacturability. Thus, engineering and manufacturing will usually have different valid views for the same product.

Manufacturing Requirements Planning (MRP) systems typically rely on a Bill of Materials (BOM) and the product structure for their information. In theory, the BOM can and should be produced automatically by the CAD system but in practice there is usually human intervention or even re-entry. The main reasons are:

The difficulty of tracking changes to the BOM (product structure) and effectivity dates and transferring this data back to the design system. Many changes, such as different suppliers for fasteners, do not affect the design form, fit and function and are therefore only made and stored in the manufacturing systems.

The need in manufacturing to view the product structure differently. It is often necessary to batch similar components from different products together for mass production or efficient purchasing.

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