Understanding Component Issue Methods

After releasing production, you need the proper components to manufacture the item on the shop floor. There are several ways to make sure that the materials are there. You can stock components in the WIP locations, you can issue material directly to a production ID, or you can move the components to the shop floor when material is needed at a work center. You can also move material to production using electronic data collection.

You can issue material to production in the same manner that you control component items. In some instances, you may want only a fixed quantity located on the shop floor, especially when space is limited. In addition, there may be some items that do not need to be allocated to specific orders or a production run. In this case, you'll want to keep components on hand in the WIP locations to fulfill this need. PeopleSoft Manufacturing supports three methods of issuing components to the shop floor: Issue, Kit, and Replenish.

You define the issue method for each component of an end item at the production area and end item level. Define the issue method by selecting one of these options:

Term

Definition

Issue

Use this method to generate a picking plan and issue material directly from inventory to the operation's work center for all components. When you select this option, all the components for the end item are issued using this method.

Kit

Use this method to generate a picking plan and issue material from inventory directly to a production ID. During the picking process, the components are assembled into batches or kits. When you select this option for regular production, all the components for the end item are issued using this method. For rework and teardown production, the end item to be reworked or torn down is issued using the kit method. The system issues any additional components required for rework or teardown production using the issue method set for each item at the production area and item level. This issue method appears automatically from the Define Business Unit Item - Manufacturing page, and it can be overridden on the Production Area - Item Detail page.

Replenish

Use this method to stock all of the components for the end item in the WIP locations. The system doesn't generate pick plans for component requirements. However, the system uses the Replenishment Notification workflow to notify a defined role when the quantity on hand in the WIP location falls below a minimum stocking quantity. When you select this option, all components for the end item are managed using replenishment.

If you're using PeopleSoft Flow Production, and the issue method is replenish, you can also replenish the WIP locations directly from an inventory location, feeder line, or supplier using Kanban cards or online replenishment requests.

Component's Method

Use this method when you want to mix the method of issuing components. With this option, you can issue some of the components using the issue method, some using the kit method, and others using the replenishment method. In this case, you'll use the component's method that is defined on the Define Business Unit Item pages.

Note: Quantities of an item that are stored in a nettable, available WIP location and that are reserved for production use are not available for other purposes.