Kitting in SAP

Compiling individual parts or components to a kit directly in the storage

Your requirements

  • Compiling of kits in the storage
  • Order based kit building
  • Production/storing of kits on reserve
  • Planning of procurement and manufacturing of kits

Our solution

  • Kit-to-stock (kit creation on stock)
  • Kit-to-order (order based kit creation)
  • Reverse kitting (disassembling of kit)

Your benefits

  • Displacement of the kitting process from production to storage
  • Acceleration of production
  • Cost reduction in procurement logistics

The SERKEM solution in detail

Kitting, a term from procurement and production logistics, refers to the assembly of individual components or parts into a kit or assembly according to customer specifications. Kitting processes enable the assembly of these kits within a warehouse.

Kits are created through a component list. They were combined from the components in the storage and delivered only completely to the costumer – whether as kit or mounted.

Through the displacement of the process from the production in storage and therefore in direction to the final consumer you can react more flexible to demand fluctuations and customize the creation of kits needs-based to the demand situation.

At a glance

Kit-to-stock

Kits were produced on stock and stored. After creation they were transferred in stock. The kits aren´t combined for a customer order but for storing.

  • Customer-independent kits
  • Lean and easy kitting process
  • Execution and documentation take place in the storage

Order-based combination of goods individually for customer orders. If there is no stock of kits in the storage which the customer orders, the kit can be created with the help of the kit-to-order processes during extradition process.

Kits can be created whether at the workplace or directly during picking of the components in a picking HU.

  • Order-based kits
  • Combination during extradition process
  • Possibility of changing the kit structure in the customer order during the customer order-creation from the bill of materials

Disassembling of existing kits in their original components. The process can only be started in the EWM system by creating manually a VAS order for reverse Kitting.

  • Disassembling of not used kits or kits from customer returns
  • Working with/without parts list
  • Availability check for the kit is possible
  • Automatic amount reduction by not completed confirmation of the kit

With the solution of SERKEM the kitting processes can be mapped with SAP WM in combination with the module PP.

Process

Customer order with defined order reason releases the kitting process: the plan-order will be automatically created and is the basis for the production order.

In the production order are all relevant data listed like material, events and clients. The material number is at the same time the order number. For changing the production order is a process- or component-overview available.

With release of the order, the WM provision is automatically executed; transport needs for the production order are created and transferred in transport orders. The transport order can be printed after the creation.

During the redistribution the transport order is receipted so the stock in inventory structure is changing.

Responses to the production order can be collected in the system, the order is responded, the component stocks are booked out and the assembly is booked to the storage type. The customer order can be supplied and the goods issue can be booked.

  • Order-based response of kits in the storage
  • Combination of positions in buffer stock incl. packaging and shipping process
  • Support of different procurement processes: e.g. pre-assembly process, component production in line
  • Kit combination through picking
  • Material replacement in kitting order
  • Priorisation in kitting orders
  • Determination of target achievement through responded orders
  • Kitting without order reference: Storing over strategy stored with automatically availability check
  • Creation of transport orders in dependence of transport needs

EWM supports the order based kit building as well as an anonym for the stock and the resolution of existing kits in their components. Thereby the kit building can be executed integrated with other SAP systems (SAP ERP and SAP CRM) or EWM internal.

For kitting processes, EWM uses orders for Value Added Services (VAS). The combination of kits takes place at the workplaces in the storage.

The kits in SAP EWM are composed of the following levels:

  • kit head: head material, which was ordered by the customer, delivered and invoiced
  • kit components: materials, which are used for combining the kit
  • replaced kit component (optional)

The kit-to-stock process is started whether in the SAP ERP system over a production order or as an alternative directly in the EWM system through a special order for value added services.

  • Kit-to-stock based on a SAP ERP production order
  • Kit-to-stock manually in SAP EWM with a VAS order

Kits can be created whether on a workplace (with or without usage of VAS orders) or directly during picking of components in a picking-HU.

EWM supports kit-to-order processes, which are started from the SAP ERP system (SD customer order) as well as processes with customer orders from CRM.

  • Kit-to-order with SD customer orders
  • Kit-to-order at workplaces with VAS orders
  • Kit-to-order at workplaces without VAS orders
  • Kit-to-order during picking
  • Kit-to-order in combination with SAP CRM

EWM doesn´t save the kits as an own master date. EWM gets the information about the kit-structure only as a part of deliveries from the SAP ERP system.

EWM supports no interlaced kits, which contain another kit as a component.

  • A kit is always delivered fully completed to the customer
  • Kit and kit-component has to be terminated at the same date
  • All components of the kit are from the same storage
  • Prices for kits are always calculated at kit-head-level by the system
  • Kit-head and kit-component have a defined amount-relation to each other through the kit structure. If there are quantitative changings at head- or component-level the amount-relation has to be recalculated.
  • Displacement of the process from production to storage
  • Flexible reaction to demand fluctuations
  • Needs-based kit creation depending on demand situation
  • Acceleration of production
  • Cost reductions in procurement logistics
  • Reduction of  number of suppliers and supplier stocks

Extract from our References

RUAG Gruppe

  • Industry: Technology group
  • Turnover: 1.71 billion CHF
  • Employees: 7,739

Success Story RUAG

Logo AGCO

AGCO

  • Agricultural machinery
  • Turnover: $ 9.96 billion (2012)
  • Employees: 20,320 (2012)

Further informationen

Downloads

SERKEM Success Story RUAG