The Bill of Materials
Since starting Dragon Innovation we’ve talked with thousands of hardware companies and factories about how to start manufacturing and scale from a prototype to high volume production. There is a surprising lack of consistency amongst BOMs and a lot of confusion and insecurity, and friction because of it. A critical starting point for this conversation is reviewing a Bill of Materials(BOM), which serves as the foundation for building the product. It’s a fundamental set of data, used throughout the process. A well constructed BOM clearly communicates all of the technical ingredients required to build the product.
From this information, it’s possible to determine:
- Lead-time to procure the materials
- Cost of Goods Sold(COGS)
- Manufacturing processes
- Quality of the Design for Assembly
- Supply chain robustness
- Cash flow requirements