Easy-to-Understand Explanation with a Real-Life Analogy
1. BOM (Bill of Materials) — “The Recipe”
- What is it?
Like a cooking recipe, a BOM lists all the raw materials needed to make a finished product, including quantities, hierarchy (main vs. auxiliary materials), versions, and possible substitutes. - Why is it important?
It ensures that purchasing buys the right materials, the warehouse delivers the correct items, costing is accurate, and tracking is possible. - Example:
To cook braised pork, the BOM would specify 5 pounds of pork belly, 2 ounces of rock sugar, 1 stalk of scallion, etc. It may also mention that brown sugar can be substituted for rock sugar.
2. Routing — “The Step Card”
- What is it?
Like a step-by-step cooking guide, routing lays out the manufacturing process in order—such as stamping → welding → painting → assembly—and details the equipment, methods, and time required for each step. - How does it work with BOM?
Each material from the BOM is tied to a process step. Routing defines the sequence and dependencies that help determine when to begin each process and when materials need to arrive. - Example:
For braised pork, the routing might say: marinate for 2 hours → stir-fry for 30 minutes → simmer for 20 minutes. This ensures the dish is cooked properly and on time.
3. Production Plan — “The Schedule”
- What is it?
Based on sales orders or forecasts, the production plan determines what will be made, when, and how much—essentially, “how many dishes to cook today.” - What does it do?
It turns demand into actionable schedules. Together with the BOM and routing, MRP (Material Requirements Planning) calculates material needs and task timelines, coordinating purchasing, material picking, and work orders. - Example:
Imagine the kitchen gets an order for 200 servings for dinner. The production plan would say: “Start cooking 10 dishes at 6 PM, then cook the rest in batches by 6:30 PM,” and make sure ingredients arrive by 5 PM.
Quick Comparison Table
| Concept | Real-Life Analogy | Main Purpose |
| BOM | Recipe | Defines materials, quantities, structure, substitutes |
| Routing | Step Card | Defines process sequence, time, equipment |
| Production Plan | Schedule | Sets “what, when, how much” to produce |
Full Example in a Kitchen Analogy
Imagine you’re running a restaurant kitchen:
- BOM (Recipe):
Tells you what ingredients you need, their quantities, and possible substitutes. For example, use brown sugar if rock sugar is unavailable. - Routing (Step Card):
Describes the cooking steps, how long to marinate, cook, or simmer, and which tools or appliances to use. - Production Plan (Schedule):
Tells you how many dishes are needed for dinner service, what time to start cooking, and when everything must be ready.