What is BOM (Bill of Materials)?
A bill of materials is the list of raw materials and quantities needed to make one unit of a product, used to plan production and work out its cost.
Updated
Meaning
English
A bill of materials is the list of raw materials and quantities needed to make one unit of a product, used to plan production and work out its cost.
Roman Urdu
BOM ek product banane ke liye zaroori kacha maal aur us ki miqdar ki list hai, jis se production plan aur cost nikali jati hai.
Also called bill of materials, recipe, formula, material list.
Example
A bakery's BOM for one kg of sponge cake: 400 g flour, 350 g sugar, 6 eggs, 100 g butter and a baking pan liner. At today's rates the materials cost 610 rupees, before gas and labour.
How it works
Restaurants call it a recipe, factories call it a BOM, but the idea is the same. With it, a business can cost a product accurately, see how much raw material a production plan needs, and check whether actual usage matches what should have been used. Any gap is wastage, theft or a recipe that staff are not following.
Keep BOMs up to date when recipes or pack sizes change, and update costs as raw material prices rise. When a finished item is made or sold, its materials should leave stock.
In Nafaa
Nafaa bakeries keep raw materials with recipe costing at today's rates, and restaurant recipes show plate cost, food cost percentage and how many plates the stock still covers. Raw materials used are compared with purchases and stock.
Related terms
- Recipe Costing
Recipe costing works out the cost of one portion or batch of a dish by adding up the cost of every ingredient in the quantity the recipe uses.
- Work Order
A work order is an instruction to carry out a specific job, such as a repair, an installation or a production run, with the work, parts and person responsible.
- Food Cost Percentage
Food cost percentage is the cost of the ingredients in a dish or in all food sold, divided by the selling price or food sales.