Course contents
Practitioner · Course 5: Tech Packs and Costable Specifications · Lesson 2 of 5

Building a bill of materials for a tech pack

Level: PractitionerTime: 40 minutesOrder used: A (the T-shirt)Tool: Tech pack template pack
This lesson is for anyone who reads or approves a bill of materials: a buyer, a merchandiser, a factory costing team, or a new entrant to the trade. Lesson 5.1 is useful background but not required here.
BuyerNorthline Apparel
FactoryDelta Garments
ProductOrder A's T-shirt, 180 GSM single jersey
Quantity15,000 pieces
FOB priceUSD 3.20 per piece, five components
02Opening

This page explains how to build a bill of materials that a factory or buyer can actually check

This page explains how to build a bill of materials that a factory or buyer can actually check, for anyone who reads or approves a tech pack before an order runs: a buyer, a merchandiser, a factory costing team, or a new entrant to the trade. This lesson mainly teaches money: whether the cost figures written into a tech pack actually add up to the price everyone has agreed to.

Lesson 5.1 already showed what a tech pack is: the document set a factory needs to make a garment. One of its sections is the bill of materials, the list of every material and cost component, each with its own cost, that together build up to the total FOB price. A new entrant can assume that once a bill of materials states a total price, the job is done. It is not. A stated total can be correct-looking while the components listed underneath it secretly fail to add up to it.

Without checking this, a buyer can approve a tech pack whose bill of materials looks complete, and only discover the error later, once someone tries to reconcile the components against the total.

03Before you start

What you need, and what this lesson does not cover

You need: lesson 5.1 (What a tech pack is) is useful background, since this lesson builds one of its sections in detail, but it is not required to follow this lesson.

By the end of this lesson you can:

  • explain what a bill of materials is and why it lists cost components separately, not as one total;
  • name the three shapes a bill of materials can take: complete, lump-sum, and one with a math error;
  • state Order A's own fixed five-component breakdown and add it up correctly;
  • check whether a submitted bill of materials' components actually sum to its stated total;
  • use the sum-and-verify method to find an arithmetic error in a bill of materials;
  • use this course's tech pack template pack to record a bill of materials as complete.

Not covered here: what a tech pack is and why every order needs one (lesson 5.1); construction detail and measurement specs (lesson 5.3); grading rules, labelling and packing (lesson 5.4); assembling a complete tech pack (lesson 5.5).

04Key terms

Words you will meet in this lesson

TermMeaning
Bill of materialsThe list of every material and cost component in a garment, with its cost, used to build up the FOB price.
Cost componentOne part of a garment's total price: fabric, trims, making, overhead, or profit.
FOB priceThe price the factory charges for the garment, delivered on board the ship at its own port.
Lump-sum bill of materialsA bill of materials that states only a total figure, with no separate component costs shown underneath it.
05Teaching
The rule

A complete bill of materials lists every cost component separately, and the components sum to the stated FOB total

A bill of materials lists every material and cost component in a garment, each with its own cost, that together build up to the total FOB price. Order A's own fixed breakdown, already fixed for this academy, is: fabric USD 1.15, trims USD 0.20, making USD 1.10, overhead USD 0.49, and profit USD 0.26, summing to an FOB price of USD 3.20. A complete bill of materials lists each of these five components separately, never as one lump "cost" figure, because a factory or a buyer reviewing it needs to see where the money goes, not just the total it adds up to.

Listing components separately matters for a second reason beyond checking the arithmetic: it lets either side negotiate one component at a time. A buyer who wants a lower FOB price can ask which component to target, fabric, trims, making, overhead, or profit, only if each one has its own visible figure. A bill of materials that hides all five inside one number gives neither side anything to negotiate against, and gives a reviewer nothing to check the total's own arithmetic against either.

Fabric1.15Trims0.20Making1.10Overhead0.49Profit0.26FOBtotal3.20
Order A's five components, listed separately, sum to the stated FOB total of USD 3.20. A complete bill of materials always shows this same five-row shape, whatever the order.
What you meet in real life

The three shapes a submitted bill of materials actually takes

A bill of materials does not always arrive in the same, complete shape. Some versions look finished but hide a problem underneath the total.

What can differThe shapes you meetWhy it matters
Complete bill of materialsEvery component listed separately: fabric, trims, making, overhead, profit, summing to the correct FOB total.This is the standard a bill of materials is checked against before it is used for quoting or approval.
Lump-sum bill of materials (incomplete)Only a total FOB figure given, with no component breakdown underneath it.Cannot be checked or adjusted component by component, since the breakdown that would allow that is not there.
Bill of materials with a math errorComponents listed separately, but they do not sum to the stated total.A red flag requiring correction before the document is used, even though it looks complete at a glance.
Order A's own caseIts own fixed five-component breakdown, fabric 1.15, trims 0.20, making 1.10, overhead 0.49, profit 0.26, summing correctly to 3.20.The real, complete worked example this lesson builds from, and the standard the other two shapes are compared against.
The case we follow

Northline Apparel's buyer checks Order A's bill of materials before approving its tech pack for bulk production

Northline Apparel's buyer is reviewing Order A's tech pack ahead of a bulk production approval. Before signing off, the buyer checks that the bill of materials' component figures actually sum to the stated FOB total, rather than approving the tech pack on the strength of the total alone. This is an export order, Make to Order, run for Northline Apparel by Delta Garments: nothing moves into bulk production until the buyer has approved the complete tech pack, and the bill of materials is one of the sections that approval depends on.

Delta Garmentssubmits the tech packNorthline Apparelchecks the bill of materialsBulkproduction approved
Delta Garments submits the tech pack, but bulk production is not approved until Northline Apparel's buyer has checked the bill of materials against its stated total. The check happens before approval, not after.
The worked number

Order A's own fixed five components sum, step by step, to the stated FOB total of USD 3.20

Order A's own fixed figures, already fixed for this academy, are fabric 1.15, trims 0.20, making 1.10, overhead 0.49, and profit 0.26. Adding them one component at a time shows they sum correctly to the stated FOB total.

1.15 + 0.20 = 1.35 (fabric plus trims)
1.35 + 1.10 = 2.45 (plus making)
2.45 + 0.49 = 2.94 (plus overhead)
2.94 + 0.26 = 3.20 (plus profit — the stated FOB total)

Every step above uses one component at a time, so a reviewer can see exactly where the running total comes from, rather than trusting a single stated figure of USD 3.20 without seeing how it was built.

The method

A one-step sum-and-verify check for any bill of materials

  1. List each cost component separately, reading it directly off the bill of materials, not from memory of what a similar order usually costs.
  2. Add the components together, one at a time, the way Order A's own worked number does above, so the running total is visible at every step.
  3. Compare the running total against the bill of materials' own stated FOB total.
  4. Treat any difference as an error to find and correct, never as a rounding matter to ignore, however small the difference looks.
  5. Trace a difference to its likely source by checking each component against a fixed reference, such as Order A's own breakdown, one component at a time.
  6. Only approve the bill of materials once the components sum exactly to the stated total.
The trap

Accepting a bill of materials because the final FOB figure looks right, without actually adding up the components

A common mistake is accepting a bill of materials because its final FOB figure "looks right," without actually adding up the component figures underneath it. A bill of materials can state a correct-looking total while its listed components secretly do not sum to it, an error that only shows up once someone actually checks the arithmetic. A reviewer who glances only at the bottom line, and never runs the sum-and-verify check, can approve a document that already contains a hidden mistake.

This trap is easy to fall into precisely because the stated total is usually the number everyone already recognizes. A reviewer who has seen Order A's FOB price of 3.20 many times before can see it stated again on a new bill of materials and treat that alone as confirmation, without noticing that the five figures listed above it no longer add up to that same number. The stated total looking familiar is not the same as the stated total being correct for this particular document.

06In plain words

A bill of materials lists every material and cost component in a garment, each with its own cost, adding up to the total FOB price. It should never show just one total figure with no breakdown; that is a lump-sum bill of materials, and it cannot be checked or adjusted component by component. Order A's own fixed breakdown is fabric 1.15, trims 0.20, making 1.10, overhead 0.49 and profit 0.26, which sum correctly to an FOB price of 3.20. The check anyone can run is simple: list each component, add them together, and compare the running total against the bill of materials' own stated total. If the two do not match, the bill of materials contains an error that has to be found and corrected before it is used for quoting or approval. A total that "looks right" is not proof the components underneath it actually add up to it; only running the sum proves that.

07Quick check
  • A bill of materials lists every material and cost component separately, each with its own cost, summing to the FOB total.
  • Order A's own fixed breakdown is fabric 1.15, trims 0.20, making 1.10, overhead 0.49, profit 0.26, summing to FOB 3.20.
  • A lump-sum bill of materials states only a total, with no component breakdown, and cannot be checked component by component.
  • A bill of materials with a math error lists components separately, but they do not sum to the stated total.
  • The sum-and-verify check is one step: add the listed components and compare the running total against the stated total.
  • A stated total that "looks right" is not proof its components actually sum to it; only adding them up proves that.
08Workplace scenario

Northline Apparel's buyer receives a submitted bill of materials for Order A ahead of bulk approval

Northline Apparel's buyer is checking a submitted bill of materials for Order A's T-shirt, ahead of approving Delta Garments for bulk production. The facts in front of the buyer:

  • The document lists five components, in the same order Order A's tech pack always uses.
  • The document also states a total FOB figure at the bottom.
  • The buyer has not yet added up the five listed components by hand.

The document the buyer reads, the submitted bill of materials, exactly as quoted:

Submitted bill of materials, Order A's T-shirt. Fabric: 1.15. Trims: 0.20. Making: 1.10. Overhead: 0.55. Profit: 0.26. Stated total FOB: 3.20.

Is this bill of materials correct? Decide before you open the answer.

Adding the five listed components, one at a time, the same way the worked number above did:

1.15 + 0.20 = 1.35 (fabric plus trims)
1.35 + 1.10 = 2.45 (plus making)
2.45 + 0.55 = 3.00 (plus the submitted overhead figure)
3.00 + 0.26 = 3.26 (plus profit — the actual sum of the listed components)
Show decision

No. The listed components sum to 3.26, not the stated 3.20.

Two facts, together, decide this. First, Order A's own fixed breakdown fixes overhead at 0.49, not 0.55, so the submitted overhead figure disagrees with the academy's own fixed number. Second, this lesson's own trap: the stated total of 3.20 "looks right," because it matches what everyone already expects Order A's FOB price to be, but it does not match what the five listed components in this document actually add up to.

Either the overhead figure or the stated total contains an error, and the buyer should not approve this bill of materials for quoting or bulk production until the discrepancy is found and corrected. The most likely correction, given Order A's own fixed breakdown, is that the overhead figure should read 0.49, not 0.55.

09What it costs

The cost of an unchecked 0.06 overhead discrepancy across Order A's full 15,000-piece order

This lesson's cost is framed against the concrete discrepancy found in block 08: the submitted overhead figure of 0.55 against Order A's own fixed overhead of 0.49, a difference of USD 0.06 per piece.

0.06 × 15,000 = USD 900

Multiplied across Order A's full order of 15,000 pieces, an unchecked 0.06 discrepancy on a single component becomes USD 900 across the whole order. This is framed qualitatively rather than as a fixed academy figure, since the size of any real discrepancy varies by order; the point this lesson's sum-and-verify method is designed to prevent is exactly this kind of unchecked arithmetic error, which can under-quote or over-quote an entire order by a meaningful amount before anyone notices.

Per-piece error0.55 − 0.49= 0.06 per pieceWhole order0.06 × 15,000= USD 900
A discrepancy of USD 0.06 on one component, on one piece, becomes USD 900 once multiplied across Order A's full 15,000-piece order. Checking the arithmetic costs a few minutes; missing it costs real money.
10Working template

Tech pack template pack: recording a complete bill of materials

Copy this table into the tech pack template pack's Tech Pack Sections sheet, using Order A's own fixed breakdown as the reference row. Fill the "Complete" column only once the components have actually been summed and checked against the stated total.

Cost componentFigure (USD)SourceChecked against stated total
Fabric1.15Order A's own fixed breakdown
Trims0.20Order A's own fixed breakdown
Making1.10Order A's own fixed breakdown
Overhead0.49Order A's own fixed breakdown
Profit0.26Order A's own fixed breakdown
Stated FOB total3.20Sum of the five rows above

Download the full working sheet, with the example row already filled in, from the link on this course's page.

Download the Tech pack template pack (Excel)

11Check yourself

1. What five components make up Order A's own fixed FOB breakdown?

2. Why is a lump-sum bill of materials, just a total FOB figure with no components, incomplete?

3. A submitted bill of materials lists fabric 1.15, trims 0.20, making 1.10, overhead 0.55, profit 0.26, with a stated total of 3.20. The components actually sum to 3.26. What should happen?

12Glossary
ENARFRTRMeaning
Bill of materialsقائمة الموادNomenclatureMalzeme listesiThe list of every material and cost component in a garment, with its cost, used to build up the FOB price.
Cost componentعنصر التكلفةÉlément de coûtMaliyet bileşeniOne part of a garment's total price: fabric, trims, making, overhead, or profit.
FOB priceسعر التسليم على ظهر السفينةPrix FOBFOB fiyatıThe price the factory charges for the garment, delivered on board the ship at its own port.
Lump-sum bill of materialsقائمة مواد بمبلغ إجمالي واحدNomenclature forfaitaireToplam tutarlı malzeme listesiA bill of materials that states only a total figure, with no separate component costs shown underneath it.
13Next

Lesson 5.3: Adding construction detail and measurement specs to a tech pack

You now know how to build and check a bill of materials against a stated FOB total. The next lesson adds two more tech pack sections to Order A's own file: construction detail and the measurement spec, so a factory can also cut and sew the garment correctly, not only cost it correctly. Back to the course map

14Ladder

RecognizeName Order A's own fixed five cost components and their figures.
ConnectSee why a bill of materials lists components separately instead of as one lump total.
CompareTell a complete bill of materials apart from a lump-sum one and one with a math error.
DecideCheck whether a submitted bill of materials' components actually sum to its stated total.