In this paper we analyse the components of the bone marrow and the bone marrow analysis data. Eighteen thousand bone marrow records are collected from a reputed Clinical Pathological Laboratory and this raw data is transformed into a pre-processed and flattened data using the pre-processing phases of the Knowledge Discovery in Databases. The transformed bone marrow data is used to create clusters of the database using various fields of the bone marrow. The K-Means clustering algorithm is slightly modified and is applied on the Bone Marrow Database to form various clusters.