Building BOMs for Stronger Asset Management Foundations

A Bill of Materials (BOM) isn’t just a list of components, it’s the critical foundation of effective maintenance and asset management. Research indicates that ordering parts beyond actual service needs can contribute to 27 to 42 percent of excess and obsolete inventory, which emphasizes how poor BOM control directly hurts operational and financial performance.

BOM is the comprehensive blueprint that details every component required to keep an asset running. Without a complete BOM, even the simplest repairs can stall. Teams may waste valuable hours searching for part information or validating suppliers, which turns what should be routine maintenance into an operational bottleneck.

How BOM Gaps Impact Performance

When BOM data is missing or inaccurate, the effects cascade across the organization. Delays in sourcing the correct parts lead to prolonged downtime and inflated costs. Studies show that preventive maintenance avoids costly emergency repairs, but this is only possible when the underlying BOM data is complete. Poorly maintained BOMs also distort inventory strategies, often leading to overstocking used parts while understocking critical spares. This forces maintenance teams into a reactive mode, where issues are addressed after failure rather than prevented.

Turning Static Lists into Intelligent Asset Data

Forward-thinking organizations are transforming BOMs from static records into dynamic data systems. Integrating BOMs with visual equipment models or digital platforms allows technicians to identify components quickly and verify details without manual cross-checking. In recent years, many large corporations have started linking BOM data with digital twins. This integration enables maintenance teams to interact with equipment models in an intuitive visual environment, allowing them to quickly locate components and verify part specifications.

Measurable Benefits of Accurate BOMs

Organizations that invest in precise BOM management see clear operational gains. Industry findings indicate that strong maintenance data practices can deliver a 30 to 40 percent reduction in unexpected downtime, which boosts asset reliability and productivity in turn. Similarly, research in U.S. manufacturing environments has shown that predictive maintenance initiatives, supported by accurate parts data, can lead to a productivity increase of 23.4 percent and 27.5 percent less downtime.

Conclusion

An accurate BOM is more than a maintenance tool, it’s a strategic asset. By maintaining reliable and accessible BOM data, organizations position themselves to take full advantage of emerging technologies and improve decision-making across procurement and inventory. With measurable benefits from downtime reduction to cost savings, BOM accuracy is one of the most impactful investments an asset-intensive organization can make.