A list of components and quantities needed to make one unit of a product.

What is a production order?

An instruction to make a quantity of a product using a BOM.

What is yield variance?

The difference between expected and actual output from the same inputs.

Does it include finite scheduling?

No. It has a production schedule view but not finite capacity scheduling.

BOM and Production Inventory: How Manufacturers Control Materials

A bill of materials tells you what goes into a product. Linked to stock and production orders it tells you what to buy, what to issue and what the real cost was.

The chain

Define the BOM: components, quantities and expected scrap.
Raise a production order for a quantity.
Check material availability and shortages.
Issue components; record output and scrap.
Compare actual to standard cost and yield.

What a good BOM includes

Component, quantity and unit
Scrap or wastage percentage
Alternatives or substitutes where used
Work centres and time if you cost labour
Version control so old orders keep old recipes

Common mistakes

Updating a BOM without versioning
Ignoring scrap, so cost is always understated
Not reserving materials for confirmed orders
Counting finished goods but not work in progress

Honest scope

Basic BOM, production orders, planning and variance suit small and mid-size makers. Finite scheduling and rework orders are advanced needs; check these before buying.

In NexoraIMS

You get BOMs, work centres, production orders, material planning and yield and cost variance. See manufacturing inventory software and for manufacturers.