Bills of Materials Overview

Understanding costs and efficiency

In business we need to know our costs, be able to effectively plan and report on our performance and profitability. To do this we consciously have to know, what is called a bill of materials for each product or service provided to customers.

We consume an amount of raw materials and consumables, labour, energy, fixed and variable overheads, equipment and tooling wear and tear etc to deliver the product or service, so we know what the standard cost is?

Bills of materials are like a family tree, like mother to child relationships. Items A, B or C may be used in several services or products, with the advent of many products and services our complexity increases and so does our need for “Bills of Materials and standard costs.”

This training is available online or face to face

We offer training for your staff in building effective bills of materials, so they can be integrated into costing and finance systems. We have experience in creating bills of materials and their use in various management software including MRP, MRPII, ERP, Data bases and simple spreadsheets.

We also offer a contracted service in creating or correcting your bills of materials for you.

Contact us for more information or register to be part of the next training.