Bill of Materials
A bill of materials is the structured list of all components and quantities required to manufacture a product. It defines which items are needed and in what quantity for a finished product, and forms an important basis for production orders. A bill of materials makes it possible to plan material requirements, consumption, and production costs in a transparent and consistent way. Changes to components or quantities directly affect the preparation and execution of manufacturing, so that when a production order is created, companies can immediately see which material must be available in which quantity to allow production to start without avoidable interruptions.