OPERATIONS MANAGEMENT
EMBA Batch 17, Singapore
BILL OF MATERIALS
STANDARD FORMAT OF BOM
SECTION PART NO.
& LEVEL
PART
DESCRIPTION
NO. OF
UNITS
UNIT COST
($)
TOTAL COST
($)
EXAMPLE: BILL OF MATERIALS FOR EXTERNAL MODEM MODEL 157845
(Presented in ascending order of levels)
Assembly Level
3
2
1
Component
Microchip
Wiring harness
Mother board
On-off switch
Indicator lights set
Plug sockets set
Plastic casing
Fastening screws
No. of units
1
1
1
Estimated cost ($)
15.00
4.50
7.50
1
1
1
1
4
Total
0.35
0.10
0.40
1.75
0.20
29.80
1
EXERCISE ON BILL OF MATERIALS
The Parts List for assembling an electric golf cart is shown below.
PARTS LIST: ONE UNIT OF ELECTRIC GOLF CART
ASSEMBLY/
SUB-ASSEMBLY/
UNITS
UNIT COST
SUB-ASSEMBLY
COMPONENT
($)
Electric golf cart
a) Top assembly
1
b) Base assembly
1
Top assembly
a) Supports
b) Cover
4
1
14
36
Base assembly
a) Motor
b) Body
c) Seats
1
1
2
140
a) Frame
b) Controls
c) Wheels
1
1
4
65
28
8
Body
18
REQUIRED OF YOU:
1 Construct a level-wise product structure tree showing the assembly sequence of the
electric golf cart. Include unique reference codes for each block in the tree.
2 Prepare the Bill of Materials with a cost attached to each entry.
3 What is the Bill of Materials cost?
2