Kitting Support in Warehouse

Management System

An Oracle White Paper

July 2003
 Kitting Support in Warehouse 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 Support in Warehouse Management System Page 2


Postponement capabilities involve
postponing the manufacturing
and/or distribution of finished
goods in order to delay the point
of product differentiation.
Kitting Support in Warehouse Management System
KITTING OVERVIEW
Faced with increasing competition in the market place, companies are
increasingly offering more product varieties to their customers. The trend offers
a new set of challenges for managing the supply chain. The conflicting goals of
high customer service and reduction in inventory and costs become
increasingly hard to manage. In this scenario postponement capabilities are
emerging as critical supply chain competencies.
Postponement involves stocking sub-assemblies or “modules” at distribution
centers and postponing the “kitting” or assembly of finished good to be as
close as possible to the customer demand with reference to time and
distribution. A distribution center may decide to opt for one or more of the
following types of postponement:
Ø Logistics Postponement: The assembly of finished good happens
closer to the customer thereby reducing the delivery lead-time. The
finished product may be built to order or built to stock.
Ø Product Postponement: Inventory is maintained only for standard
“modules” thereby reducing the overall inventory level. The finished
product is built to order as per customer specifications.
In order to do so, distribution centers must be capable of handling kitting and
light assembly requirements. Kitting and other value added services might be
required in a distribution center for other reasons apart from postponement.
There could be a need to kit items based on promotional strategies.
Sometimes items need to be kitted for functional reasons.
This document discusses the possible options for distribution centers to
handle Kitting and Dekitting requirements within the framework of Oracle
Warehouse Management System (WMS) and Oracle Work in Process (WIP).
The functionality described in this document is available in release 11.5.9 of
Oracle eBusiness suite.
In order to avoid confusion with item type “Kit”, items that are ordered as kits,
require kitting in warehouse and shipped as kits are referred as kit assemblies
throughout the document.
Kitting Support in Warehouse Management System Page 3

Kit assembly may be “Build to
Stock” if the lead-time required
for fulfilling the customer demand
is substantially shorter than lead-
time required for kitting.
KITTING REQUIREMENTS
Business requirements for Kitting depend upon the nature of kitting operation.
Kitting operation may vary by degree of value addition during kitting, whether
kit is “build to stock” or “build to order”, complexity of kitting, and outbound
logistics following the kitting process. Some of the business requirements that
influence various architecture options in Oracle are as follows:
Kit Assembly Stocking Policy
The kit assembly may either be “Build to Stock” or “Build to Order” depending
upon the business situation and the product profile. The stocking requirements
for a kit assembly may depend on various parameters such as lead-time
required for fulfillment, setup costs, degree of customization, etc. The
requirement for a “Build to Stock” kit is to assemble and stock the kit in the
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.
Kit Assembly Configurations
The requirements for a kit assembly could range from a simple product to a
complex product with myriad options. Usually a configuration tool would be
needed to handle a highly configurable product.
Kitting Process
The kit assembly process may vary from simple packaging with little or no
value addition to complex manufacturing operation with high degree of value
addition. The requirement for kitting process would depend on the complexity
of assembly operation. For a simple packaging operation the requirement
could be visibility to bill of material and packing instructions. For more
complex assembly operation the requirement could involve visibility to bill of
material and routing, detailed work instructions, monitoring of work order,
component allocation and task dispatching, compliance labeling, costing
support, etc.
Component Profile
Kitting operation in a warehouse also depends on the profile of components
used. The requirement for kitting operation using high value components could
involve rigorous inventory control including control on material movement and
component “push” to assembly area. If kitting requires components with
standard consumption or relatively low value components, tighter inventory
control may not be needed. “Pull” based consumption may be required for
such components.
Kitting Support in Warehouse Management System Page 4

Modeling of kit items in Oracle
applications depend on degree of
value addition during kitting,
traceability requirements and
complexity of the kitting process.
Kit Assembly Picking
The order fulfillment requirements may vary depending upon the business
scenarios. Requirements could be to stock kit assembly in storage and
dispatch warehouse workers to pick and pack. Smaller warehouse where kit
assembly occurs close to an outbound staging lane or warehouse operating in
a Just in Time (JIT) environment may decide to skip the overheads associated
with assembly storage and pick/pack process. In such a scenario warehouse
may decide to directly ship the kit items to customers. Larger warehouses
with multiple kit assembly areas and dock door may wish to eliminate kit
assembly storage by “Cross-Docking” the kit assembly from kitting area to
outbound staging area.
Traceability Requirements
Distribution centers may require the kit assembly to have lot or serial control
based on traceability requirements. Lot or serial genealogy may be needed
when the components in a kit are lot or serial controlled.
PROCESS OPTIONS
The configuration options available in Oracle Applications relate to how the kit
assembly is defined, how the kitting operations is carried out and
subsequently their staging and shipment to the customer.
Modeling of Kit Assembly
There are multiple options available within Oracle to model a kit assembly. The
choice of configuration depends on the business requirement at a particular
warehouse. The kit assembly can be modeled using one of the following item
types in Oracle:
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:
a. Kit assembly can be identified with an LPN
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.

Please refer to Oracle Configure to Order (CTO) implementation guide for

additional details on PTO model.

Assemble to Order (ATO) Item: An ATO item is usually a standard “Build to

Order” kit assembly. An ATO item has standard specifications and hence
does not require configuration. An ATO item can be kitted using a WIP job in a
discrete manufacturing environment and using flow schedule in a flow-
manufacturing environment.

In a discrete manufacturing environment, WIP job is created using final

assembly schedule (FAS) functionality in WIP or progress order functionality
in the sales order pad. It is also possible to create a WIP job manually and
link it to a sales order. The WIP job created is reserved to the sales order.

In a flow-manufacturing environment, final assembly flow schedule can be

created using line scheduling workbench functionality or using progress order
feature at the time of order entry.

Assemble to Order (ATO) Model: An ATO model is similar to an ATO item

except that an ATO model is “build to order” as per exact customer
specifications.

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.

Please refer to Oracle Configure to Order (CTO) implementation guide for

additional details on ATO models.

Kitting Support in Warehouse Management System Page 6

Finished Good: This is a standard kit assembly without any configuration
options. A finished good item is usually “Build to Stock”. The finished good
can be kitted using a WIP job, a Flow Schedule or Work order less
completion. Using planning functionality, manufacturing work orders can be
created if there is a deficit in supply.

The following table summarizes the options available to model Kit items

Assembly BOM Routing Degree Configurable Traceability

of Value /Assembly
Addition Confirm
Required

Kit Item Yes No None-Low No No

PTO Model Yes No None-Low Yes No

ATO Item Yes Yes Low- No Yes

Medium

ATO Model Yes Yes Low- Yes Yes

Medium

Finished Yes Yes Low- No Yes

Good Medium

Appendix-A lists the item configuration for the aforementioned item types.

Kit Assembly Process

Depending upon the business requirements and assembly complexity, the
kitting process can be modeled in multiple ways in Oracle Applications. The
following table summarizes the options available for modeling the kitting
process:

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.

Refer to Flow Manufacturing implementation guide for additional details about

WOLC.

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.

A flow-manufacturing environment uses “pull” based component consumption.

Component serial numbers used for building a parent assembly is entered at
the point of use i.e. when operation or assembly completion is confirmed. On
completion one or more kit assemblies can be directly packed into LPNs.

Components required for flow-schedule can be moved to the assembly area

using one of the following options:
a. Kanban replenishment: A pull sequence is defined for the component
at the supply locator entered in the BOM.
b. Min-Max replenishment: Min-Max quantity can be specified for the
sub-inventory and item. Replenishment tasks can be created in WMS
for execution on mobile interface.
c. WMS Tasks: Component pick release creates tasks for component
picking. These tasks, to be executed on mobile, move the
components from warehouse storage to supply locator indicated in the
BOM

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

Kitting Support in Warehouse Management System Page 8

directly packed into LPNs. Refer to Oracle Work-in-Process implementation
guide for additional details on manufacturing using WIP job.

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 move components

required for a WIP job from warehouse storage to assembly area:

Component Components with Pull Components with

Movement Supply Type Push Supply Type
Kanban Pull Sequence for Not Applicable
Supply Locator
Min-Max Min-Max Level specified Not Applicable
for Item
WMS Tasks to Component Pick release to create WMS tasks if
replenish Supply supply locator is specified in BOM.
Locators
Tasks for Pull components are created only when
WIP organization parameter “Release Pull
Components” is checked. WMS tasks are not
created for components with “Bulk” supply type.
WMS Tasks for Direct Not Applicable Component Pick release
Issue to WIP Job to create WMS tasks for
component issue
directly to a WIP Job

The following table summarizes the options available to model Kitting Process:

Assembly Confirmation Component Visibility Serial Costing

Process Required Allocation to Triggered of Value
and Pick Assembly Move Addition
Tasks Moves

PTO No Yes No No No
Assembly

WOLC Yes No No No Yes

Flow Yes Yes No No Yes

Schedule

WIP Job Yes Yes Yes Yes Yes

Kitting Support in Warehouse Management System Page 9

Outbound Process

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.

If the kit assembly is modeled as a PTO Item or PTO model, components

comprising the kit are pick released and pick tasks are created for them. Once
the components are picked, they can be directly shipped against a delivery
without a confirmation for assembly process.

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

Cross-Dock: Cross-docking involves an “opportunistic” transfer of kit

assemblies from kitting area directly to an outbound staging lane.
Opportunistic cross docking requires an outbound delivery in backordered
state.

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.

Kitting Support in Warehouse Management System Page 10

For all other kit types, kit assembly can be cross-docked on manufacturing
completion directly to outbound staging lane.
Typically this process should be used when one or more of the following
conditions are satisfied:
Ø Warehouse requires directed putaway of LPNs to a staging lane
Ø Backordered deliveries exist
Ø Assembly completion using WIP, Flow Schedule or WOLC takes
place in “without drop” mode.

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.

If the kit item is modeled as a PTO Item or PTO model, components

comprising the kit can be packed into LPNs and “direct shipped” without the
need for an explicit assembly confirmation.

For all other item types, an assembly completion transaction needs to be

posted using a WIP job, flow schedule or WOLC. Once the kit assembly is
complete, it can be shipped using direct ship functionality.

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

Direct Ship No Yes No No (*)

Cross-Dock Yes No No Yes (**)

Pick release Yes No Yes Yes

and pick
execution

Kitting Support in Warehouse Management System Page 11

(*) Manual reservation to sales order can be created to ensure certainty of fulfillment. WIP
completion of ATO items to LPN automatically reserves the LPN for the sales order.
(**) Cross-docking honors prior reservation of supply source or demand source.

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.

SERIAL TRIGGERED KIT ASSEMBLY

Serialization of kit assembly is an important requirement in many industries.

Often it’s required to assign a serial number to a kit while its assembly is in
progress. The assignment of a serial number to a kit prior to its completion is
done for the following reasons:
• Main components are serial controlled and a component serial-
assembly serial genealogy is required for traceability and servicing the
kit assembly. Serialization of kit prior to its completion helps in linking
component serials to kit serial number while the kitting is in progress.
• Progress monitoring of an individual kit assembly is required while its
being kitted
• Serial number labels are required prior to kitting
• Kit assembly moves and completion with minimum data entry/scans
is required

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:

• The kit assembly must have “predefined” serial control.

• Serial triggered assembly completion is carried out by scanning the
assembly serial. If two or more kit assemblies with identical serial
numbers are being assembled, the user will need to confirm the
individual WIP job for each serial. This may impact the usefulness of
serial triggered assembly completion and moves. In such a case, it is
recommended to have unique serial numbers across all items. This
could be done in one of the following ways:
1. Set serial uniqueness control in the organization to “within
organization” or “across all orgs”.
2. If serial uniqueness is set to “within items” ensure that serial
generation parameters such as serial prefix and starting
number are maintained in such a way that auto-generation of
serial numbers result in unique serial numbers across all

Kitting Support in Warehouse Management System Page 12


Component “Pull” is
recommended when kitting
involves scanning the kit serial
number followed by scanning the
serial numbers of component
items. If the kit is a configured item, a new feature in Oracle
Inventory generates unique serial numbers for all configured
items belonging to the same ATO model.
3. Use “user defined” serial generation logic and ensure that user
defined logic generates unique serials across all items.
• A routing is not necessarily required for serial triggered kitting
operation. However if assembly requires multiple operations, a
serialization start operation can be specified in the routing.
The functionality has the following components:
Kit Assembly Serial Number: Serial numbers for the kit assembly can be
generated from the WIP job form or using the serial generation concurrent
request in Oracle Inventory. The serial numbers can be assigned to the WIP
job from the WIP Serial form. Optionally labels for assembly serial with
information of WIP job can be printed.
Serial Numbers can also be generated and associated with WIP during
concurrent request for WIP mass load and auto-create final assembly
schedule. In order to achieve this, WIP organization parameter for auto-
associate serial numbers on job creation must be set.
Serial Triggered Movement and Completion: New mobile forms in Oracle
WIP allow movement and completion by scanning the serial number. If
required, the completed serial number can be packed directly to an LPN.
Component Serials: Consumption of serialized components against a kit
serial number is recorded using one of the following methods:
• Components Pull: Component serial numbers are entered when
assembly serial triggered movement or completion is carried out. This
method is recommended in those situations where scanning the kit
serial numbers followed by scanning the component serials completes
the kit assembly.
• Component Push: Assembly serial information is entered when
component serial is issued using component issue form on desktop or
mobile.
In order to maintain correct assembly serial – component serial genealogy,
component serials must not be issued directly to a WIP job using WMS
tasks. Instead pick tasks for serialized components must be created to
replenish the supply locator. Serialized components can be issued from the
supply locator to the WIP job using either component Backflush or component
issue. Therefore kit assembly BOM must have the supply locator populated for
“Push” as well as “Pull” components. The supply sub-inventory must be non-
LPN controlled and non-reservable.
DEKITTING
Dekitting or Kit break down is often required in the warehouse for one of the
following reasons:
• Kitting was carried out with wrong specifications
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

Dekitting can be done using assembly return functionality. Assembly return

can be performed using one of the following ways:
• Assembly Return for WIP job: This dekitting method requires WIP job
information before the Kit assembly can be de-kitted. This dekitting
method is usually used when dekitting or Kit assembly re-work is
required immediately after kitting completion and WIP job information
is known for the assembly
• Work order less Assembly return: Work order less assembly return is
an unplanned assembly breakdown into its constituents. This dekitting
method does not require work order information for dekitting. The
“assembly return” process requires sub-inventory and locator where
the components will be stored after de-kitting is complete.

It should be remembered that assembly return is not possible for kit

assemblies packed into LPN. It is necessary to unpack the kit assembly from
LPNs before dekitting.

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.

Kitting Support in Warehouse Management System Page 14

 APPENDIX-A

Item Configuration for Kits

Attributes Pick to Pick to Assemble Assemble Assemble

Order Order to Order to Order to Stock
Item Model Item(*) Model Item
Item Kit PTO ATO Item ATO Finished
Template Model Model Good
Assemble to No No Yes Yes No
Order
Configurable No Yes No Yes No
BOM Allowed Yes Yes Yes Yes Yes
Build in WIP No No Yes Yes Yes
Costing Yes Yes Yes Yes Yes
Enabled
Reservation No No Yes Yes Yes
Control
Ship Model Yes Yes No No No
Complete
Stockable No No Yes Yes Yes
Transactable No No Yes Yes Yes
Shippable No No Yes Yes Yes
Purchased Yes Yes Yes Yes Yes
Purchasable No No No No No
Customer Yes Yes Yes Yes Yes
ordered item

(*) The attributes refer to the configured item created for the ATO model.

Kitting Support in Warehouse Management System Page 15

 APPENDIX-B

Process flows involving kitting of a PTO Item

Component Pick PTO Kitting Cross-Docking of

Release followed followed by Direct Components
by PTO Kitting and Ship followed by PTO
Ship Confirm Kitting and Ship
Confirm
Order Entry Order Entry Order Entry

ê ê ê

Pick Release Pack Components Pick Release

into LPNs
ê ê
ê
Execute Component Receipt of
Pick Tasks Direct Ship Components

ê ê

Pack Components to Component Putaway

form kits (Cross Docking)

ê ê

Ship Confirm (LPN Re-Pack Components

Ship/Quick Ship/Dock into LPN
Door Ship)
ê
Ship Confirm (LPN
Ship/Quick Ship/Dock
Door Ship)

Kitting Support in Warehouse Management System Page 16

 APPENDIX-C
Process flows for Kitting using a WIP Job
Kitting of ATO Kitting of ATO Direct Ship of Stocking of
Kit followed by Kit and Cross ATO Kit Finished Good
Pick Release docking Kit followed by
pick release
Order Entry Order Entry Order Entry Create WIP Job

ê ê ê ê

Create Final Pick Release Create Final Release WIP

Assembly Sales Order Assembly Job
Schedule Schedule
ê ê
ê ê
Create Final Component Pick
Release WIP Assembly Release WIP Release*
Job Schedule Job
ê
ê ê ê
Execute
Component Pick Release WIP Component Pick Component Pick
Release* Job Release* Tasks

ê ê ê ê

Execute Component Pick Execute WIP Completion

Component Pick Release* Component Pick with Drop**
Tasks Tasks
ê ê
ê ê
Execute Order Entry
WIP Completion Component Pick WIP Completion
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

Kitting Support in Warehouse Management System Page 17

 APPENDIX-D
Process flows for Kitting using a Flow Schedule
Kitting of ATO Kitting of ATO Direct Ship of Stocking of
Kit followed by Kit and Cross ATO Kit Finished Good
Pick Release docking Kit followed by
pick release
Order Entry Order Entry Order Entry Create Final
Assembly Flow
ê ê ê
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

Kitting Support in Warehouse Management System Page 18

 APPENDIX-E
Process flows for Kitting using Work Order Less Completion
Build to Order Build to Order Build to Order Build to Stock
Kit Using Kit Using Kit Using Kit Using
WOLC WOLC and WOLC and WOLC
Direct Ship Direct Ship

Order Entry Order Entry Order Entry Component

Replenishment
ê ê ê
using Min/Max
Component Component Pick Release /Kanban
Replenishment Replenishment
ê ê
using Min/Max using Min/Max
/Kanban /Kanban Component WOLC with
Replenishment Drop
ê ê
using Min/Max
ê
WOLC with WOLC with /Kanban
Drop Drop Order Entry
ê
ê ê ê
WOLC with
Pick Release Direct Ship Drop Pick Release

ê ê ê

Assembly Pick Cross Docking Assembly Pick

ê ê ê

Ship Confirm Ship Confirm Ship Confirm

Kitting Support in Warehouse Management System Page 19

 APPENDIX-F

“Build to Order” Kitting of a Serial Assembly

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

Modeling of Cell phone Assembly: ATO Model

The cell phone assembly needs to be modeled as ATO Model because it
requires order specific configuration. The kit assembly (Cell Phone) requires
traceability and therefore cannot be modeled as PTO model. Configuration
options possible for cell phone need to be modeled as ATO option class.

Attribute such as Phone number can be defined as mandatory serial attributes

if they need to be entered on receipt.
Kit Assembly Process: WIP Job
Kit assembly is “Build to Order” and requires a manufacturing work order. Serial
triggered WIP completion and movement will provide the necessary visibility and
execution efficiency. In order to use serial triggered WIP movement and
completion functionality, the ATO model should have “predefined” serial control.
Check WIP serial parameter “auto-associate serials numbers on job creation”.
Checking this parameter will auto-create and auto-associate serial numbers
when WIP job is created through job creation interface.

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.

Kitting Support in Warehouse Management System Page 20

Process Flow

The following table summarizes the steps in the process from order entry to
ship confirm.

Process Environment Process Description

Step
Create Sales Desktop This step involves order entry and using
Order Oracle configurator to configure cell phone
options.
Create Final Desktop WIP job for final assembly schedule can
Assembly be created using one of the following
Schedule options:

a. Progress order functionality from

sales order pad
b. “Auto-Create final assembly
schedule” concurrent request.

Either of these methods will submit a

concurrent request for WIP job creation
from the interface. Serial numbers for
assembly are generated and auto-
associated on WIP job creation.

Serial labels are also generated when

serial number is associated with a WIP
job. If required, WIP job can be directly
created in “Released” status. The serial
labels for cell phones can be given to the
kitting operator for kitting assembly.
Perform Desktop Component pick release creates WMS
Component tasks to pick material from warehouse
Pick Release storage to supply locator specified in the
BOM. The pick from location is
determined using pick rules in WMS. The
drop locator for components is the supply
sub-inventory and locator specified on the
BOM.

Component pick tasks can be grouped

using user defined pick-slip grouping rules.
This allows user to define pick
methodologies such as order picking,
zone picking, etc. Component pick tasks
are queued for task dispatching if task
planning is performed during component
pick release.
Perform Desktop This step involves executing the
Component component pick tasks on a mobile device.

Kitting Support in Warehouse Management System Page 21

 Process Environment Process Description
Step
pick tasks The tasks are dispatched to the picker on
the mobile device along with suggested
pick locations and quantity.
Perform Mobile This step involves serial triggered
Kitting completion of assembly into an LPN. The
movement user scans the LPN and the serial number
and packing of the cell phone, followed by serial
number of the components. More than one
cell phone assembly can be packed by
using the <Next Assembly> button.

If serial attributes such as cell phone

number, number of minutes on SIM card
are enabled for the cell phone assembly,
user will also be promoted to enter these
serial attributes.

Each completion operation also builds a

serial genealogy involving cell phone serial
number and all its serial components.
LPN Putaway Mobile The LPN with cell phone assembly can be
to Staging dropped to a staging lane on completion.
Lane* This step involves scanning the LPN and
using either the system directed drop or
user directed drop option. Putaway rules
are needed is system directed drop of
LPN to a staging area is required. An LPN
label can be generated on drop to the
staging area.
Direct Ship Mobile Direct ship allows shipping an LPN with
LPN out the need for pick release and picking
execution. Since the LPN is reserved to
the sales order, the order information is
not required in direct ship form. Freight
and trip information can be optionally
entered prior the ship-confirm.
(*)-This step is not needed if WIP Completion with drop option is used in the previous step

Kitting Support in Warehouse Management System Page 22

 APPENDIX-G

“Build to Stock” Kitting of a Serial Assembly

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

Modeling of Cell phone Assembly: Finished Good

The cell phone assembly needs to be modeled as finished good as it’s a
standard configuration that is stocked. The kit assembly (Cell Phone) requires
traceability and therefore cannot be modeled as PTO model.
Kit Assembly Process: WIP Job
Kit assembly is “Build to Stock” and requires a manufacturing work order. The
manufacturing work order can be created using one of the following methods:

a. Release of a planned order from Oracle APS. The cell phone

assembly requires “make” sourcing type.
b. Kanban replenishment of Cell Phone assembly. A pull sequence
with “production” supply source is needed for the cell phone
assembly.
c. Manual creation of WIP job.

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

Outbound Process: Pick Release and Pick Execution

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.

Kitting Support in Warehouse Management System Page 23

Process Flow

The following table summarizes the steps in the process from order entry to
ship confirm.

Process Environment Process Description

Step
Create Final Desktop WIP job for final assembly is created
Assembly based on anticipated demand. Serial
WIP Job numbers for assembly are generated and
auto-associated on WIP job creation.

Serial labels are also generated when

serial number is associated with a WIP
job. The serial labels for cell phones can
be given to the kitting operator for kitting
assembly.
Perform Desktop Component pick release creates WMS
Component tasks to pick material from warehouse
Pick Release storage to supply locator specified in the
BOM. The pick from location is
determined using pick rules in WMS. The
drop locator for components is the supply
sub-inventory and locator specified on the
BOM.

Component pick tasks can be grouped

using user defined pick-slip grouping rules.
This allows user to define pick
methodologies such as order picking,
zone picking, etc. Component pick tasks
are queued for task dispatching if task
planning is performed during component
pick release.
Perform Desktop This step involves executing the
Component component pick tasks on a mobile device.
pick tasks The tasks are dispatched to the picker on
the mobile device along with suggested
pick locations and quantity.
Perform Mobile This step involves serial triggered
Kitting completion of assembly into an LPN. The
movement user scans the LPN and the serial number
and packing of the cell phone, followed by serial
number of the components. More than one
cell phone assembly can be packed by
using the <Next Assembly> button.

If serial attributes such as cell phone

number, number of minutes on SIM card
are enabled for the cell phone assembly,

Kitting Support in Warehouse Management System Page 24

Process Environment Process Description
Step
user will also be promoted to enter these
serial attributes.

Each completion operation also builds a

serial genealogy involving cell phone serial
number and all its serial components.
Perform Mobile The LPN containing cell phone assembly
Putaway kits can be putaway to warehouse
storage.
Create Sales Desktop This step involves order entry of the
Order standard cell phone assembly. Optionally
the cell phone stock can be reserved to
the sales order.
Pick Release Desktop Pick release involves allocating the cell
/Concurrent phone stock to sales order and creation of
WMS tasks to pick finished goods for
outbound shipment
Pick Mobile Execution of picking tasks involves picking
Execution finished goods into LPN and dropping the
LPN to a drop locator or consolidation
area. Optionally the picked material can
be repacked into LPNs.
Load to Dock Mobile This step involves loading of picked LPNs
into dock door. This step is performed just
prior to ship confirm.
Ship Confirm Mobile Ship confirm of LPN can be carried out by
/Desktop using one of the three alternatives in WMS
a. LPN Ship: Does not require
delivery or trip planning
b. Load Dock: Requires Delivery and
Trip Planning
c. Quick Ship: Requires Delivery
Planning
d. Ship Confirm from Desktop
shipping transactions form

Kitting Support in Warehouse Management System Page 25

Kitting Support in Warehouse Management System
July 2003
Author: Adit ya Agarkar
Contributing Author: Barry Kuhl, David Wertheimer, Jennifer Sherman

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