How to Set Up Your First BOM in Manufacturing ERP

Creating your first bill of materials can feel overwhelming, especially when you're transitioning from spreadsheets to dedicated BOM software. The good news? Once you understand the fundamentals, setting up accurate BOMs becomes second nature—and the efficiency gains transform how you manage production.

This guide walks you through creating your first BOM in InFlow Manufacturing, from gathering component data to linking your materials with work orders. Whether you're running a small workshop or scaling a growing operation, these steps will help you build a solid foundation for production management.

Understanding Bill of Materials Basics#

A bill of materials is essentially a recipe for your finished product. It lists every component, raw material, and sub-assembly needed to manufacture one unit. But a well-structured BOM does more than list parts—it captures quantities, specifications, and relationships between components.

Before opening your BOM management system, gather the following information for each product:

• Component list: Every part, material, and sub-assembly required
• Quantities: Exact amounts needed per finished unit
• Unit of measure: Pieces, meters, kilograms, liters, etc.
• Supplier information: Where each component comes from
• Lead times: How long each component takes to procure

Having this data ready before you start entering information into your manufacturing ERP saves significant time and reduces errors during setup.

Step-by-Step: Creating Your First BOM#

With your component data gathered, follow these steps to build your first bill of materials in InFlow Manufacturing:

Step 1: Define Your Finished Product#

Start by creating a master record for your finished good. Enter the product name, SKU, description, and default unit of measure. This becomes the parent item that your BOM components will roll up into.

Step 2: Add Components and Raw Materials#

Navigate to the BOM section and begin adding each component. For each item, specify:

• Component name and part number
• Quantity required per unit of finished product
• Whether it's a raw material, purchased part, or sub-assembly
• Any notes about specifications or acceptable substitutes

The best MRP software 2025 offerings, including InFlow Manufacturing, allow you to create multi-level BOMs. This means sub-assemblies can have their own BOMs, which automatically calculate total material requirements when you schedule production.

Step 3: Set Up Operations and Routing#

Beyond materials, your BOM should include manufacturing operations. Define each step in your production process:

• Operation sequence and description
• Work center or machine assignment
• Standard time estimates for setup and run time
• Any special instructions for operators

This routing information powers your production planning software capabilities, enabling accurate scheduling and capacity planning.

Step 4: Validate and Test#

Before using your BOM for actual production, run a test. Create a sample work order for one unit and verify that all components pull correctly and quantities match your expectations. Check that operation sequences make sense and time estimates seem reasonable.

Connecting BOMs to Production Planning#

Your BOM becomes truly powerful when integrated with broader production management functions. Here's how to leverage your new BOM data:

Material Requirements Planning: When you enter a production schedule, your manufacturing ERP small business solution calculates exactly what materials you need and when. If you're planning to produce 50 units next week, the system multiplies your BOM quantities by 50 and checks current inventory levels.

Work Order Generation: Create work orders directly from your BOM. Each work order inherits the component list and operation routing, giving shop floor workers clear instructions while automatically tracking material consumption.

Capacity Planning: Using the time estimates from your BOM operations, production planning software calculates workload across your machines and work centers. This visibility helps you identify bottlenecks before they delay orders.

Common BOM Setup Mistakes to Avoid#

Even experienced manufacturers make these errors when setting up BOM software. Avoid these pitfalls:

Inconsistent units of measure: If your supplier sells wire by the meter but your BOM lists it in feet, you'll constantly face conversion headaches. Standardize units across purchasing and production.

Missing scrap allowances: Real-world manufacturing has waste. If your process typically loses 5% of material to scrap, build that into your BOM quantities. Otherwise, you'll consistently run short.

Outdated component costs: BOMs often include cost data for estimating. Review and update component costs quarterly, or your production cost estimates will drift from reality.

Ignoring version control: Products evolve. When you change a BOM, maintain version history so you can trace what components went into products manufactured on specific dates. This matters for quality control and potential recalls.

Taking Your Production Management Further#

Once your basic BOMs are running smoothly, explore advanced capabilities in your BOM management system:

• Phantom assemblies: Sub-assemblies that exist in your BOM for planning but aren't stocked as separate inventory items
• Engineering change orders: Formal processes for updating BOMs while maintaining audit trails
• Where-used reports: Quickly find every finished product that uses a specific component—invaluable when suppliers announce discontinuations
• Cost rollups: Automatically calculate finished product costs based on current component prices and labor rates

These features transform your manufacturing ERP from a simple tracking tool into a strategic planning system that drives profitability.

Start Building Better Products Today#

Setting up your first BOM is the foundation of professional production management. With accurate bills of materials, you gain visibility into true product costs, confidence in material planning, and the ability to scale production without chaos.

InFlow Manufacturing makes BOM setup intuitive while providing the depth that growing manufacturers need. From shop floor tracking to quality control integration, every feature works together to streamline your operations.

Try Manufacturing Module and experience how proper BOM management transforms production planning for small and mid-sized manufacturers.