Modular BOMs are typically used in TWO-Level Master Production Schedule. To solve the problems of Modular BOM generation and efficient DB construction, we proposed Value Clustering Method. Based upon Where-Used matrix of products and components, VCM is the method to find out module by generating product family group value, product value, and component value. We also proposed method to find out information about Modules, algorithms to find out Modules that show Alternative Usage Pattern, and method to find out Modules used in a given product. We also compared the DB creation method by Value Clustering Method and by conventional method. We compared the size of DB in both methods. We mathematically proved that the proposed method is doing better as the size and complexity of product family gets larger and more complicated.