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Management System
Kitting
Overview...........................................................................
........ 3
Kitting
Requirements.......................................................................
...... 4
Kit Assembly Stocking
Policy............................................................ 4
Kit Assembly
Configurations............................................................. 4
Kitting
Process ...........................................................................
....... 4
Component
Profile............................................................................
. 4
Kit Assembly
Picking ........................................................................ 5
Traceability
Requirements ................................................................. 5
Process
Options............................................................................
......... 5
Modeling of Kit
Assembly ................................................................. 5
Kit Assembly
Process ........................................................................ 7
Outbound
Process ...........................................................................
10
Process
Flows .............................................................................
......... 12
Serial Triggered Kit
Assembly ............................................................. 12
Dekitting..........................................................................
.................... 13
Appendix-
A .................................................................................
........ 15
Appendix-
B..................................................................................
........ 16
Appendix-
C..................................................................................
........ 17
Appendix-
D .................................................................................
........ 18
Appendix-
E .................................................................................
........ 19
Appendix-
F..................................................................................
........ 20
Appendix-
G .................................................................................
........ 23
KITTING OVERVIEW
Kitting
Support in Warehouse Management System Page 3
KITTING REQUIREMENTS
Kit assembly may be “Build to The kit assembly may either be “Build to
Stock” or “Build to Order” depending
Stock” if the lead-time required upon the business situation and the product
profile. The stocking requirements
for a kit assembly may depend on various
parameters such as lead-time
for fulfilling the customer demand required for fulfillment, setup costs, degree
of customization, etc. The
is substantially shorter than lead- requirement for a “Build to Stock” kit is to
assemble and stock the kit in the
time required for kitting. warehouse in anticipation of an order.
Whereas requirement for a “Build to
Order” kit assembly is to postpone assembly
until a customer sales order with
exact customer specifications is received.
Kitting Process
Component Profile
Kitting
Support in Warehouse Management System Page 4
Kit Assembly Picking
Traceability Requirements
PROCESS OPTIONS
Modeling of kit items in Oracle There are multiple options available within
Oracle to model a kit assembly. The
applications depend on degree of choice of configuration depends on the
business requirement at a particular
value addition during kitting, warehouse. The kit assembly can be modeled
using one of the following item
traceability requirements and types in Oracle:
complexity of the kitting process.
Kit (PTO Item): Kit assemblies that are
defined in Oracle as item type “Kit”
are standard “Pick to Order (PTO)” items that
require no configuration. A PTO
item is loosely tied with its component items.
The kitting process for a PTO
item involves little or no value addition.
Often the requirement is to merely ship
the items together. Kit assemblies with item
type “Kit” are non-transactable
item with a bill of material (BOM). The
components required for PTO item are
picked for the order and subsequently they are
shipped together to form a kit
assembly. Since PTO items cannot be stocked,
they can be effectively used
in “Build to Order” scenarios only. A PTO item
cannot have lot or serial control
and therefore serial/lot genealogy cannot be
maintained for assembly and
component items. However if traceability is
critical, its possible to pack the
component items into LPN to form a logical
kit. This approach offers the
following advantages:
Kitting
Support in Warehouse Management System Page 5
b. Components of a kit assembly can be transacted together as LPN.
There is no need to confirm individual serial components comprising a
kit assembly
Validation for completed kit assemblies is performed only when the item
attribute, “ship model complete” flag is turned on. If the item attribute, “ship
model complete” flag is turned on, validation for missing items in the kit
assembly is performed at the time of ship-confirm.
Pick to Order (PTO) Model: A PTO model is similar to a “kit” item except
that a PTO model can be configured to exact customer specifications. A PTO
model can be configured using Oracle Configurator. If the “ship model
complete” flag is turned on, a validation for missing items in the kit will be
made at the time of ship-confirm.
A new configured item with a BOM and routing is created based on the
customer specifications. It is possible to perform a match to existing
assemblies that have identical options when the profile option “BOM: Match to
Existing Model” is set to yes. If a match is found, new configured item is not
created and the already configured item is used. If the assembly has on-hand
stock, it is possible to create a reservation for the on-hand quantity. If a
reservation is created to on-hand stock, a WIP job or a Flow schedule will be
created for the balance quantity.
The following table summarizes the options available to model Kit items
Required
Appendix-A lists the item configuration for the aforementioned item types.
Assembly of PTO Items: This process if relevant if the kit assembly is defined
as PTO model or a Kit. There is no Oracle transaction that confirms the Kitting
of PTO items. It is assumed that kit assembly is a simple process and
therefore a separate transaction for kit assembly confirmation is not needed.
The kitting process requires component items comprising a PTO item to be
picked and subsequently packed together to form a logical assembly. In a
WMS environment, packing of PTO items is a manual operation. Components
of a PTO items can be packed together into an LPN to constitute a kit
assembly.
Kitting Support in Warehouse Management System
Page 7
Work Orderless Completion (WOLC): Useful for unplanned kitting with
simple assembly process. Kitting using WOLC does not involve creation of a
work document like Flow Schedule or WIP job. WOLC is typically used for
“build to stock” kits requiring pull components. Tasks for component staging to
kitting area is not possible if WOLC is used for kitting. The components can
be replenished to the supply locator using Kanban or Min-Max replenishment.
Serial components can be linked to assembly serial during WOLC to maintain
serial-serial genealogy. On completion one or more kit assemblies can be
directly packed into LPNs.
Flow Schedule: Useful when the kitting process has medium complexity.
Flow schedule job can be used for “build to stock” as well as “build to order” kit
assembly scenarios. A flow schedule for a “build to order” kit assembly is
created with sales order as a reference. The kit assembly is reserved to the
sales order on completion. Refer to Flow Manufacturing implementation guide
for additional details about assembly completion in a flow-manufacturing
environment.
The supply locator in the BOM must belong to a sub-inventory that is non-
reservable and non-LPN controlled. Refer to the section on WIP picking in
WMS implementation guide for additional details.
WIP Job: Useful when the kitting process has higher degree of complexity.
WIP job can be used for “build to stock” as well as “build to order” kit
assembly scenarios. Serial triggered WIP movement and completion can be
used if kit assembly is serial controlled. Refer to the section on serial triggered
kitting in this document for additional details on serial triggered kitting
transactions. Serial components can be issued to assembly serial to maintain
serial-serial genealogy. On completion one or more kit assemblies can be
For a WIP job, component supply type can be either “Push” or “Pull”. The
supply locator in the BOM must belong to a sub-inventory that is non-
reservable and non-LPN controlled. Refer to the section on WIP picking in
WMS implementation guide for additional details.
The following table summarizes the options available to model Kitting Process:
PTO No Yes No No
No
Assembly
WOLC Yes No No No
Yes
The Outbound process refers to the order fulfillment flow once the kitting is
complete. A number of factors affect the choice of process e.g. size of the
warehouse, warehouse layout, complexity of picking, etc. The options
available for outbound process are as follows:
Pick Release and Pick Execution: This process requires pick release of the
sales order and creation of picking tasks for directed picking in the warehouse.
For all other kit assembly types, an explicit assembly confirmation is required
using either a WIP job, WOLC or flow schedule. Once the kit assembly is
complete, it can be putaway to warehouse for subsequent outbound picking. If
the kit assembly is modeled as ATO, the kit assembly stock remains reserved
to the sales order. In order to pick and ship the kit assembly, the sales order
is pick released and kit assemblies are picked into LPNs by executing pick
tasks. Optionally the picked kit assemblies can be further packed into LPNs.
The LPNs can be shipped using any of the ship confirm options available in
WMS i.e. LPN ship, quick ship or direct ship. Please refer to WMS
implementation guide for additional details on ship confirm options.
Typically this process should be used when one or more of the following
conditions are satisfied:
Ø Warehouse has a large area and a high number of locators and
outbound staging lanes. In such a scenario warehouse workers need
to be directed to locators where the kit assembly is stored and needs
to be staged.
Ø Pick methodology such as Order Picking, Cluster Picking, Pick by
Label, etc are required in the warehouse to manage picking
complexity
Ø Warehouse requires LPN and/or locator based consolidation of
deliveries prior to ship confirm
Ø Warehouse requires assemblies to be “Build to Stock”. The kit
assembly is stored in the warehouse in anticipation of sales order
If the kit assembly is modeled as a PTO Item or PTO model, the delivery lines
corresponding to the components items must be in backordered state. The
component items can be cross-docked on receipt directly to the staging lane.
Cross docking of kit assembly is not possible if the kit assembly is modeled
as a PTO Item or a PTO model.
Direct Ship: This process can be used in those scenarios where the ability to
pick release, allocation of stock to a sales order and directed picking is not
required.
Typically direct ship is useful when one or more of the following conditions are
satisfied in a warehouse:
Ø Warehouse has relatively few locators and outbound staging lanes.
Alternatively the Warehouse layout is such that completion of kit
assembly takes place in an outbound staging lane. In such a scenario
directed pick tasks may not be required
Ø Warehouse operates in a Just in Time (JIT) environment. In such a
scenario storage of kit assembly is not desired.
Ø Warehouse requires a “Build to Order” kitting operation. The sales
order information is defaulted when LPN is scanned on the dock door.
Ø Consolidation of orders in staging is not required. Either such
consolidation is manually carried out or warehouse ships each LPN
individually through LTL or small parcel carrier.
Ø Over-shipment within tolerance is required at the time of ship confirm.
The following table compares the three options available for outbound process
across various parameters:
Outbound Directed Overship Pick Methods /
Allocation
Process Pick Load Allowed Consolidation
to Sales
and Drop Supported
Orders
Cross-Dock Yes No No
Yes (**)
PROCESS FLOWS
Many of the configuration options discussed earlier can be mixed and matched
giving rise to a number of process flow options to handle kitting in a
warehouse. Process chart in Appendix B-E are some of the feasible process
flows. The eventual selection of the process flow depends to a large extent on
the business situation at a particular warehouse. Appendix F describes the
business case of a “Build to Order” kit assembly and presents a sample
process flow. Appendix-G presents a similar case for a “Build to Stock” Kit
assembly.
The serial triggered WIP movement and completion functionality in Oracle WIP
allows the creation and assignment of kit assembly serial to a WIP job and
subsequently movement and completion by scanning the kit assembly serial
number. The following pre-conditions are recommended to fully utilize this
functionality:
DEKITTING
Kitting Support
in Warehouse Management System Page 13
• Need to salvage useful components from an obsolete kit assembly
• Component parts are urgently needed from a kit assembly
Dektting is not required if kit assembly is modeled as a PTO Model or Kit item
since there is no explicit Oracle transaction for kitting confirmation in this
case.
(*) The attributes refer to the configured item created for the ATO model.
ê ê ê
ê ê
ê ê
ê ê ê
ê
ê
ê ê ê
Execute
Component Pick Release WIP Component Pick Component
Pick
Release* Job Release* Tasks
ê ê ê
ê
ê
with Drop** Tasks with Drop**
Pick
Release
ê ê ê
ê
Pick Release WIP Completion Direct Ship
without Drop Assembly
Pick
ê
ê
ê
Assembly Pick
LPN Putaway Ship
Confirm
ê
(Cross Docking)
Ship Confirm
ê
Ship Confirm
(*) – Component pick release can be used to replenish Pull components in the supply
locators
(**) – Alternatively WIP completion without drop followed by putaway can be used
Schedule
Create Final Pick Release Create Final
ê
Assembly Flow Sales Order Assembly Flow
Schedule with Schedule with Component
Pick
ê
SO reference SO reference
Release*
Create Final
ê ê
ê
Assembly Flow
Component Pick Schedule with Component Pick
Execute
Release* SO reference Release* Component
Pick
Tasks
ê ê ê
ê
Execute Component Pick Execute
Component Pick Release* Component Pick Flow
Completion
Tasks Tasks with
Drop
ê
ê ê
ê
Execute
Flow Completion Component Pick Flow Completion Order
Entry
with Drop Tasks with Drop
ê
ê ê ê
Pick
Release
Pick Release Flow Completion Direct Ship
ê
without Drop
ê
Assembly
Pick
ê
Assembly Pick
ê
LPN Putaway
ê
(Cross Docking) Ship
Confirm
Ship Confirm
ê
Ship Confirm
(*) – Component pick release can be used to replenish Pull components in the supply
locators
ê ê ê
ê ê ê
Business Case
The scenario refers to a company that accepts orders for a cell phone,
performs kitting of cell phones at its distribution center and fulfills the order
from the DC. The cell phone is configured to customer specifications at the
time of order entry. The cell phone is “build to order” and serial controlled.
Serial genealogy between cell-phone serial and component serial is required.
Recording of execution details such as serial number and LPN must be
efficient to carryout high order volume. The cell phones are packed into LPNs
after assembly and subsequently the LPN is moved to staging lane for final
shipment. The LPN is shipped to the customer using small-parcel shipment
Process Options
In order to maintain serial genealogy between the cell phone assembly and
components, components are defined as “Pull” supply type. In order to generate
WMS tasks for components, the following setup needs to be done:
a. WIP organization parameter “Release Pull Components” must be
turned on to create tasks for components with “Pull” supply type.
b. To generate tasks with correct drop locator, the sub-inventory and
locator must be entered in the material control tab of the BOM. The
entered sub-inventory must be non-LPN controlled and non-reservable.
WMS Pick, Putaway and Task Type rules are configured for the components
Outbound Process: Direct Ship
Direct ship is a good match for the business scenario since the assembly is
being manufactured for a particular order. Since each LPN is shipped
individually, order consolidation is not a requirement. The LPN is either moved
to the staging area using Putaway rules in WMS or manually transferred using
sub-transfer.
The following table summarizes the steps in the process from order entry to
ship confirm.
Business Case
The scenario refers to a company that accepts orders for standard cell
phones. The cell phones are kitted prior to receiving the order based on
anticipated demand. Serial genealogy between cell-phone serial and
component serial is required. The cell phones are packed into LPNs and
moved from storage area to staging lane for final shipment. The LPN is shipped
to the customer using small-parcel shipment
Process Options
A BOM and optionally a routing is needed for the cell phone assembly. Serial
triggered WIP completion and movement will provide the necessary visibility and
execution efficiency. In order to maintain serial genealogy between the cell
phone assembly and components, components are defined as “Pull” supply
type. In order to generate WMS tasks for components, the following setup
needs to be done:
1. WIP organization parameter “Release Pull Components” must be
turned on to create tasks for components with “Pull” supply type.
2. To generate tasks with correct drop locator, the sub-inventory and
locator must be entered in the material control tab of the BOM. The
entered sub-inventory must be non-LPN controlled and non-
reservable.
WMS Pick, Putaway and Task Type rules are configured for the components
This process involves pick release of the sales order to perform a pick of the
finished good available in warehouse storage. The finished goods can be
consolidated prior to shipment.
The following table summarizes the steps in the process from order entry to
ship confirm.
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