Modular BOM

Modular Bill of Material (BOM) is a critical element in defining the product structure of an end-item.

Modular BOMs define the component materials, documents, parts and engineering drawings needed to complete a sub-assembly. While the term BOM and Modular BOM are most commonly used in association with physical products, the concept can be used in a variety of industries (software, medical records, etc.) Modular BOMs are used by modern information systems to serve a variety of purporses, they define the components needed to produce a subassembly, they provide cost information for each component and "rolled-up" cost for the overall subassembly,

For option-based, configurable products (think automobiles, PC's, etc.) companies needed to plan every combination and permutation of options to ensure they could fulfill customer demands. With a modular BOM structure, companies can plan the demand for each module independent of the end-item demand by estimating the popularity of the module sub-assembly.