In product development and manufacturing, the bill of materials (BOM) is the backbone of a product’s lifecycle, detailing every component, subassembly, and raw material required for production.
While there are several types of BOMs, the indented BOM stands out as a structured, hierarchical format that captures the complex relationships between components, subassemblies, and the final product.
Unlike a single-level BOM, which lists all components flatly without reflecting parent-child dependencies, an indented bill of material organizes parts in a tree-like hierarchy. This structure is essential for managing multi-level BOMs, allowing manufacturers to optimize material requirements (MRP), control lead times, and efficiently navigate engineering change processes.
The Structure of an Indented BOM
An indented BOM is designed to visually represent the nested relationships within a product, with components grouped under their respective subassemblies. This hierarchical structure is crucial for:
- Managing complex product structures: Breaking down a product into logical sections streamlines BOM management and ensures accuracy in tracking dependencies.
- Engineering and design collaboration: Engineering teams working in SolidWorks, ERP, and Microsoft-based environments can trace how changes impact lower-level components.
- Manufacturing and procurement planning: Helps determine precise qty (quantity) for ordering, scheduling routings, and processing purchase orders.
Example of an Indented BOM:
This format provides a clear visualization of dependencies, allowing manufacturers to plan production workflows, manage effectivities, and allocate budgets efficiently.
Why Choosing the Right System is Crucial for BOM Management
Effectively managing an indented BOM requires more than just structuring data—it demands a system that ensures accuracy, traceability, and real-time collaboration. A poorly managed BOM can lead to production delays, costly errors, and misaligned procurement. The right platform should not only organize the product structure but also integrate seamlessly with manufacturing processes, engineering change management, and supply chain operations. With modern product complexities increasing, relying on outdated or fragmented systems can put companies at a competitive disadvantage.
Why Outdated Systems Struggle with Indented BOMs
Many manufacturers still rely on ERP systems or even Excel spreadsheets to manage BOM templates, but these tools come with significant limitations. One of the biggest challenges with using Excel for BOM management is the lack of version control. Without a structured engineering change management process, inconsistencies can arise across item numbers, revisions, and effectivities, leading to production errors and supply chain inefficiencies. Additionally, spreadsheets are prone to human error, making it difficult to maintain data accuracy across multiple workstreams.
ERP systems, while more robust than Excel, often lack the flexibility needed to handle dynamic multi-level BOMs effectively. Many ERP platforms are rigid and struggle to process evolving product structures in real time. This limitation becomes especially problematic when manufacturers need to quickly implement design changes or update material requirements (MRP) without disrupting existing workflows. Furthermore, these legacy systems typically offer limited collaboration capabilities, forcing teams to work in silos, which increases the risk of duplicated parts and errors in purchase orders and production schedules.
Another major drawback of older systems is their inability to integrate seamlessly with other critical business functions, such as regulatory compliance and quality management. Without direct connectivity to ISO-compliant processes, organizations may find it challenging to maintain accurate and up-to-date BOM management aligned with industry standards. These inefficiencies can lead to increased costs, delays in production, and difficulties in ensuring product compliance.
Modern Cloud-Native PLM Solutions Are the Future of BOM Management
Managing an indented BOM requires an intelligent, connected, and collaborative system—this is where modern cloud-native PLM solutions, like Propel Software, provide a significant advantage. Unlike legacy systems, cloud-based PLM platforms offer real-time collaboration across departments, ensuring that engineering (ENG), manufacturing (MFG), and procurement teams have access to the most up-to-date product data.
With Propel PLM, companies can efficiently manage multi-level BOMs by allowing users to compare revisions, visualize redlines, and track changes across multiple BOM versions. This dynamic approach eliminates versioning conflicts and reduces the risk of errors in the production process. Additionally, Propel’s user-friendly interface supports both hierarchical and tabled BOM structures, making it easy for teams to navigate complex assemblies without unnecessary complications.
A key advantage of cloud-native PLM solutions is their ability to integrate seamlessly with ERP, MRP, and CAD systems like SolidWorks. This ensures that product data remains synchronized across all business functions, enabling better decision-making related to lead times, budgets, and supply chain constraints. Unlike traditional ERP tools, Propel’s PLM solution provides visibility into every level of the product structure, allowing teams to track dependencies and optimize assembly BOMs in real time.
Another critical benefit of Propel’s PLM is its advanced workflow automation, which streamlines engineering change processes and ensures compliance with ISO and industry regulations. By automating approvals and change tracking, Propel reduces the administrative burden on engineering teams, allowing them to focus on innovation rather than paperwork.
Conclusion: Propel PLM—The Future of BOM Management
As products become more complex and multi-level BOM structures become the norm, manufacturers need a system that can adapt to real-time design changes, optimize the manufacturing process, and enable true cross-functional collaboration.
Propel PLM provides a next-generation approach to BOM management, ensuring that engineering (ENG), manufacturing (MFG), and procurement teams work in sync. By leveraging dynamic, collaborative, and cloud-native capabilities, Propel enables organizations to move beyond the limitations of traditional tools and take full control of their assembly BOMs.
For manufacturers looking to future-proof their product structure and streamline engineering change processes, Propel PLM is the clear choice.
