This article explains how a well-designed Bill of Materials (BOM) is critical to efficient manufacturing, accurate costing, and successful ERP adoption. It recommends best practices such as defining clear multi-level BOM structures, using standardized part naming and meaningful numbering schemes, centralizing BOM data in ERP/PLM systems, and enforcing formal change management with version control. Ongoing governance—through audits, cost and lead-time monitoring, role-based access, and cross-functional collaboration—keeps BOMs accurate and resilient. It also highlights common beginner mistakes, including inconsistent naming, skipping change control, siloed setup, overloading BOMs with minor items, and ignoring part obsolescence. Treating the BOM as a living, governed asset helps reduce erro

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