KITTING

Kitting Support in Warehouse Management System

An Oracle White Paper July 2003

Kitting Support in Warehouse Management System Page 2


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

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.

Postponement capabilities involve postponing the manufacturing and/or distribution of finished goods in order to delay the point of product differentiation.


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.

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.


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

Modeling of kit items in Oracle applications depend on degree of value addition during kitting, traceability requirements and complexity of the kitting process.


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.


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 of Value Addition

Configurable Traceability/Assembly Confirm Required

Kit Item Yes No None-Low

No No

PTO Model Yes No None-Low Yes No

ATO Item Yes Yes Low-Medium

No Yes

ATO Model Yes Yes Low-Medium

Yes Yes

Finished Good

Yes Yes Low-Medium

No Yes

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.


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


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 Movement

Components with Pull Supply Type

Components with Push Supply Type

Kanban Pull Sequence for Supply Locator

Not Applicable

Min-Max Min-Max Level specified for Item

Not Applicable

WMS Tasks to replenish Supply Locators

Component Pick release to create WMS tasks if supply locator is specified in BOM. 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 Issue to WIP Job

Not Applicable Component Pick release to create WMS tasks for component issue directly to a WIP Job

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

Assembly Process

Confirmation Required

Component Allocation and Pick Tasks

Visibility to Assembly Moves

Serial Triggered Move

Costing of Value Addition

PTO Assembly

No Yes No No No

WOLC Yes No No No Yes

Flow Schedule

Yes Yes No No Yes

WIP Job Yes Yes Yes Yes Yes


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.


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 Process

Directed Pick Load and Drop

Overship Allowed

Pick Methods / Consolidation Supported

Allocation to Sales Orders

Direct Ship No Yes No No (*)

Cross-Dock Yes No No Yes (**)

Pick release and pick execution

Yes No Yes Yes


(*) 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


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

Component “Pull” is recommended when kitting involves scanning the kit serial number followed by scanning the serial numbers of component


• 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.


APPENDIX-A

Item Configuration for Kits Attributes Pick to

Order Item

Pick to Order Model

Assemble to Order Item(*)

Assemble to Order Model

Assemble to Stock Item

Item Template

Kit PTO Model

ATO Item ATO Model

Finished Good

Assemble to Order

No No Yes Yes No

Configurable No Yes No Yes No BOM Allowed Yes Yes Yes Yes Yes Build in WIP No No Yes Yes Yes Costing Enabled

Yes Yes Yes Yes Yes

Reservation Control

No No Yes Yes Yes

Ship Model Complete

Yes Yes No No No

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 ordered item

Yes Yes Yes Yes Yes

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


APPENDIX-B

Process flows involving kitting of a PTO Item

Component Pick Release followed

by PTO Kitting and Ship Confirm

PTO Kitting followed by Direct

Ship

Cross-Docking of Components

followed by PTO Kitting and Ship

Confirm

Order Entry

ê

Pick Release

ê

Execute Component Pick Tasks

ê

Pack Components to form kits

ê

Ship Confirm (LPN Ship/Quick Ship/Dock

Door Ship)

Order Entry

ê

Pack Components into LPNs

ê

Direct Ship

Order Entry

ê

Pick Release

ê

Receipt of Components

ê

Component Putaway (Cross Docking)

ê

Re-Pack Components into LPN

ê

Ship Confirm (LPN Ship/Quick Ship/Dock

Door Ship)


APPENDIX-C

Process flows for Kitting using a WIP Job

Kitting of ATO Kit followed by Pick Release

Kitting of ATO Kit and Cross docking

Direct Ship of ATO Kit

Stocking of Finished Good Kit followed by pick release

Order Entry

ê

Create Final Assembly Schedule

ê

Release WIP Job

ê

Component Pick Release*

ê

Execute Component Pick

Tasks

ê

WIP Completion with Drop**

ê

Pick Release

ê

Assembly Pick

ê

Ship Confirm

Order Entry

ê

Pick Release Sales Order

ê


ê

Release WIP Job

ê


ê


Tasks

ê

WIP Completion without Drop

ê

LPN Putaway (Cross Docking)

ê

Ship Confirm

Order Entry

ê


ê

Release WIP Job

ê


ê


Tasks

ê


ê

Direct Ship

Create WIP Job

ê

Release WIP Job

ê


ê


Tasks

ê


ê

Order Entry

ê

Pick Release

ê

Assembly Pick

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


APPENDIX-D

Process flows for Kitting using a Flow Schedule

Kitting of ATO Kit followed by Pick Release

Kitting of ATO Kit and Cross docking

Direct Ship of ATO Kit

Stocking of Finished Good Kit followed by pick release

Order Entry

ê

Create Final Assembly Flow Schedule with SO reference

ê


ê


Tasks

ê

Flow Completion with Drop

ê

Pick Release

ê

Assembly Pick

ê

Ship Confirm

Order Entry

ê

Pick Release Sales Order

ê


ê


ê


Tasks

ê

Flow Completion without Drop

ê

LPN Putaway (Cross Docking)

ê

Ship Confirm

Order Entry

ê


ê


ê


Tasks

ê


ê

Direct Ship

Create Final Assembly Flow

Schedule

ê


ê


Tasks

ê


ê

Order Entry

ê

Pick Release

ê

Assembly Pick

ê

Ship Confirm

(*) – Component pick release can be used to replenish Pull components in the supply locators


APPENDIX-E

Process flows for Kitting using Work Order Less Completion

Build to Order Kit Using

WOLC


WOLC and Direct Ship


WOLC and Direct Ship

Build to Stock Kit Using WOLC

Order Entry

ê

Component Replenishment using Min/Max

/Kanban

ê

WOLC with Drop

ê

Pick Release

ê

Assembly Pick

ê

Ship Confirm

Order Entry

ê


/Kanban

ê

WOLC with Drop

ê

Direct Ship

Order Entry

ê

Pick Release

ê


/Kanban

ê

WOLC with Drop

ê

Cross Docking

ê

Ship Confirm


/Kanban

ê

WOLC with Drop

ê

Order Entry

ê

Pick Release

ê

Assembly Pick

ê

Ship Confirm


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.


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

Process Step

Environment Process Description

Create Sales Order

Desktop This step involves order entry and using Oracle configurator to configure cell phone options.


Desktop WIP job for final assembly schedule can be created using one of the following 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 Component Pick Release

Desktop Component pick release creates WMS tasks to pick material from warehouse 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 Component

Desktop This step involves executing the component pick tasks on a mobile device.


Process Step


pick tasks The tasks are dispatched to the picker on the mobile device along with suggested pick locations and quantity.

Perform Kitting movement and packing

Mobile This step involves serial triggered completion of assembly into an LPN. The user scans the LPN and the serial number 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 to Staging Lane*

Mobile The LPN with cell phone assembly can be dropped to a staging lane on completion. 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 LPN

Mobile Direct ship allows shipping an LPN with 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


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.


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

Process Step


Create Final Assembly WIP Job

Desktop WIP job for final assembly is created based on anticipated demand. 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. The serial labels for cell phones can be given to the kitting operator for kitting assembly.

Perform Component Pick Release

Desktop Component pick release creates WMS tasks to pick material from warehouse 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 Component pick tasks

Desktop This step involves executing the component pick tasks on a mobile device. The tasks are dispatched to the picker on the mobile device along with suggested pick locations and quantity.

Perform Kitting movement and packing

Mobile This step involves serial triggered completion of assembly into an LPN. The user scans the LPN and the serial number 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,


Process 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 Putaway

Mobile The LPN containing cell phone assembly kits can be putaway to warehouse storage.

Create Sales Order

Desktop This step involves order entry of the standard cell phone assembly. Optionally the cell phone stock can be reserved to the sales order.

Pick Release Desktop /Concurrent

Pick release involves allocating the cell phone stock to sales order and creation of WMS tasks to pick finished goods for outbound shipment

Pick Execution

Mobile Execution of picking tasks involves picking 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 /Desktop

Ship confirm of LPN can be carried out by 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


July 2003

Author: Aditya Agarkar

Contributing Author: Barry Kuhl, David Wertheimer, Jennifer Sherman

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