Planning With Kits

[Former Member]

We are in an R & D environment ie manufacturing is sourced we will only be assembling the subs and rolling the subs up to the main assy. The end product is solar industry capital equipment. When the BOM was released to SAP Friday I noticed there are kits on the main assy BOM. I've worked in 3 other similiar planning positions using SAP and kits were not used like this. Can someone in very simple terms give me reasons why using kits in a production bom is not a good business practice?

[Former Member]

Hi,

What does the customer order from you and what do you deliver, a single items or a loose collection of items? How do you sell the items, as a single price for a collection of materials or individual prices for each item.

A production order kit is useful if the customer orders a single items that you assembly or "box" into a single material item, particularly in advance of the customer requirement (i.e. kits are stocked in the warehouse). The customer will only see a single item on the delivery you send them.

Alternatively you can use a kit in the sales order where you enter a single material that explodes the components in the sales order. On the sales order the assembly material contains the price and the exploded materials contain the materials shipped.

James

[Former Member]

Hi James,

The customer orders a complex piece of capital equipment. There are usually 6 or so 1100 module assemblies that report up to the 1000 main assembly. The 1000 main level number is what is called out on the sales order.

Billie

Hi,

What does the customer order from you and what do you deliver, a single items or a loose collection of items? How do you sell the items, as a single price for a collection of materials or individual prices for each item.

A production order kit is useful if the customer orders a single items that you assembly or "box" into a single material item, particularly in advance of the customer requirement (i.e. kits are stocked in the warehouse). The customer will only see a single item on the delivery you send them.

Alternatively you can use a kit in the sales order where you enter a single material that explodes the components in the sales order. On the sales order the assembly material contains the price and the exploded materials contain the materials shipped.

James