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GBI decide to produce the pedal assembly rather than purchase it, then the
BOM will be modifi ed to indicate that the pedal assembly is a semifi nished
good. In addition, the raw materials needed to make the pedal assembly will
be included as a second level in the BOM.
Figure 6-5 identifi es the data contained in a bill of material. The BOM
consists of a header section and an items section. The header section includes
data that apply to the entire BOM, such as the material number, descrip-
tion, plant, usage, validity, status, and base quantity. The material number in
the header identifi es the fi nished good or semifi nished good described in the
BOM. The BOM is valid from the date specifi ed in the header. A validity date
is appropriate when changes are planned for a future date, for example, due to
changes in the product design. In such cases the current BOM is valid until the
new BOM goes into effect. Because a BOM can be used in several processes,
the usage fi eld in the header identifi es the purpose for which the BOM can be
used. For example, the BOM in Figure 6-5 displays a usage code of 1, meaning
that the BOM is to be used in production. Other purposes for which BOMs are
used are engineering, sales and distribution, and plant maintenance.
Going further, regardless of the specifi c usage, a BOM’s status can be
active or inactive. An active BOM can be used in the production of a material;
an inactive BOM cannot. Finally, the base quantity indicates the quantity of
goods that will be produced by the materials specifi ed in the BOM items sec-
tion. For instance, the BOM illustrated in Figure 6-5 identifi es the materials
needed to make one bike.
The items section of a BOM identifi es all the materials needed to make
the fi nished good or semi-fi nished good identifi ed in the header. Figure 6-5
includes some of the items in the BOM for the off-road bike. Examples of data
for each item are material number, description, quantity, and item category.
Material number and description identify the necessary materials. The quan-
tity specifi es how many of these materials are needed. For example, 2 wheel
assemblies are needed for each bike. A BOM can contain different types of
items, which are distinguished by the item category. The item category iden-
tifi es the type of material and infl uences how the material is to be used in the

Figure 6-5: BOM structure

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