EBOM vs MBOM

By: bees April 8, 2025

🏗️ EBOM vs MBOM: Why OEMs Need Both to Build Great Products

In the world of manufacturing, especially within Original Equipment Manufacturing (OEM), the journey from product design to final assembly involves many moving parts—literally and figuratively. Two critical tools that guide this journey are the Engineering Bill of Materials (EBOM) and the Manufacturing Bill of Materials (MBOM).

Though they may sound similar, EBOM and MBOM serve very different purposes. Understanding the distinction is essential for ensuring smooth collaboration between engineering and production teams.


🔧 What is an Engineering Bill of Materials (EBOM)?

The EBOM is created by the design and engineering team. It represents the product as it is conceived and designed.

Key Features:

  • Reflects the functional design of the product.
  • Structured based on CAD models or design documentation.
  • Includes all components, subassemblies, and materials from a design perspective.
  • May list non-physical items like software or reference documents.

Example:

For a vehicle, the EBOM might include:

  • Engine
  • Transmission
  • Wiring harness
  • Control software
  • Chassis frame

🏭 What is a Manufacturing Bill of Materials (MBOM)?

The MBOM is developed by the manufacturing and production teams. It represents the product as it will be built on the shop floor.

Key Features:

  • Structured to reflect the assembly process.
  • Includes all parts, fasteners, consumables, and packaging materials.
  • May include routing information, tools, and labor instructions.
  • Optimized for production efficiency and cost control.

Example:

For the same vehicle, the MBOM might include:

  • Pre-assembled engine module
  • Mounting brackets and fasteners
  • Adhesives and sealants
  • Packaging materials
  • Assembly instructions

🧩 Why Both Matter

FeatureEBOMMBOM
Created byEngineeringManufacturing
FocusDesign intentProduction process
StructureFunctionalProcess-oriented
IncludesAll design elementsAll buildable elements
Used forProduct developmentProduction planning

🧠 A Simple Analogy

Think of the EBOM as the architect’s blueprint—it shows what the product should look like.
The MBOM is like the contractor’s shopping list—it details what’s needed to actually build it.


🔄 Managing Design Revisions and Continuous Improvement

In a dynamic manufacturing environment, design changes and product improvements are inevitable. Whether it’s to enhance performance, reduce cost, or address customer feedback, these changes must be carefully managed across both the EBOM and MBOM.


📐 EBOM Revisions

When the engineering team updates the design—say, replacing a component with a more efficient one—the EBOM is the first to reflect this change. These revisions are typically version-controlled and documented through Engineering Change Orders (ECOs).


🏭 MBOM Updates

Once a design change is approved, the MBOM must be updated accordingly to ensure the shop floor builds the correct version of the product. This may involve:

  • Updating part numbers
  • Changing assembly instructions
  • Adjusting tooling or routing
  • Notifying suppliers or procurement teams

📦 Handling Existing Inventory and Finished Goods

When a design change is introduced, it’s not just about updating documents—it’s also about managing what’s already in the system.

Actions on Existing Raw Materials:

  • Use-Up Strategy: If the old parts are still usable and safe, they may be consumed until stock is exhausted.
  • Rework or Retrofit: In some cases, existing parts can be modified to meet the new design.
  • Scrap or Return: If parts are obsolete or incompatible, they may be scrapped or returned to suppliers, depending on agreements.

Actions on Finished Goods:

  • Sell-Off Existing Stock: Finished goods built to the old design may be sold as-is if they meet quality and compliance standards.
  • Rework: If feasible, finished goods may be reworked to align with the new design.
  • Segregation and Labeling: Clear labeling and segregation of old vs. new design stock is critical to avoid mix-ups.

🚀 Implementing the New Design in Production

To ensure a smooth transition, companies typically define a cutover point—the exact moment when the new design becomes active in the system.

Key Steps:

  • Effective Date or Serial Number Control: The new design is linked to a specific date, batch, or serial number range.
  • System Updates: ERP and PLM systems are updated to reflect the new EBOM and MBOM versions.
  • Training and Communication: Production teams are trained on the new process, and clear instructions are issued.
  • Trial Runs and Validation: Pilot builds or first-article inspections may be conducted to validate the new design before full-scale rollout.

✅ Best Practices for Managing Change

  • Use a Product Lifecycle Management (PLM) system to manage BOM versions and changes.
  • Establish a Change Control Board (CCB) to review and approve revisions.
  • Ensure cross-functional collaboration between engineering, manufacturing, quality, and supply chain teams.
  • Maintain traceability of changes for compliance and quality assurance.

🧭 Final Thoughts

In a well-run OEM environment, both EBOM and MBOM are essential. They ensure that what is designed can be built efficiently, cost-effectively, and to the highest quality standards. But just as important is the ability to manage change—from design revisions to inventory handling and production cutovers.

By aligning engineering intent with manufacturing execution—and by carefully managing transitions—OEMs can deliver better products, faster, and with fewer disruptions.