Selecting the Component Issue Method for Each Item

When defining production areas, determine how you want to issue components to production for each item. PeopleSoft Manufacturing provides you with these component issue methods:

• Issue

• Kit

• Replenish

• Use component's

Issue Method

With this method, use picking plans to translate requested stock into material picking instructions for stockroom processing. Once the material has been pulled and the picking plan is confirmed, the system decrements the picked quantities from the quantity available at the stockroom location and issues it to the WIP location. PeopleSoft Manufacturing supports PUSH and PULL picking methods:

Term	Definition
PUSH picking plan	The system determines the locations from which to pick each item and creates a hard reservation for this item when you generate the pick list. A hard reservation reserves the item in a specific location. Once a hard reservation exists, the item is unavailable for other inventory transactions.
PULL picking plan	The system suggests locations from which the stockroom personnel can pull the items. The stockroom personnel then enters the actual location information. When using the PULL method, PeopleSoft Manufacturing does not make a hard reservation at the time the picking plan is generated. Also, the system does not block items from inclusion in other inventory pick lists until after the picking plan is reviewed and confirmed.

Kit Method

Use this method to issue material directly to a production ID rather than to the WIP location, thus preventing other orders from using the material. The kitted material is charged to the production order upon material release, rather than backflushed when an operation or order is completed. The Kit method is the default method for issuing end items for rework and teardown production. The system issues any additional components required for rework or teardown production using the issue method set for each item on the production area and item level. The Kit method is generated by default from the Define Business Unit Item - Manufacturing: General page; you can override it on the Production Area - Item Detail page.

Note:

The Kit method is valid with production IDs only.

The Kit method relies on PUSH and PULL pick plans, as does the Issue method. If a completed end item is used on a higher-level end item and the component is issued using the Kit method, you can route the completed end item directly to the production ID.

Replenish Method

In some cases, you may want only a fixed quantity to sit on the shop floor, especially when space is a constraint. Additionally, there may be some items that don't need to be allocated to specific orders or to a production run. In these cases, use the Replenish method. This method assumes that you are stocking components in the WIP storage areas associated with the work center where you use the components. These components are typically stocked to a defined on-hand quantity that you establish. When the quantity on hand for an item falls below its minimum stocking quantity in that location, a Kanban request (if using PeopleSoft Flow Production) or workflow notification is sent indicating that the location must be replenished.

Before you move components into the replenishment locations in the production area:

• Specify the replenishment point for each component that you manage using the Replenish method.

• Specify the issue multiple used to replenish the WIP location.

• Define both of these parameters for each WIP location using the Prdn Replenish Locations - Prdn Replenish Detail page in PeopleSoft Inventory.

If you are using PeopleSoft Flow Production:

• Define other replenishment defaults using the Prdn Replenish Locations - Prdn Replenish Detail page to define how the replenishment is triggered for each WIP location using the WIP Replenishment Mode: Backflush, Kanban Card, or Manual.

• Specify how the replenishment request is communicated with the WIP Replenishment Method: Pull List, Pull Ticket, or Workflow.

• Determine if the material comes from an inventory location, feeder line, or supplier using the WIP Replenishment Source.

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

Use Component's Method

To issue some components using one method and others using another method, select Use Component's Method option when defining the component issue method for each production area and item.

To issue the components using any or all of the issue methods for a single end item, select Use Component's Method. When using this method, the system looks at the component's issue method defined at the business unit and item level to determine how to issue the component to the shop floor. Define the default by indicating the issue method for the item using the Item Attributes by Unit - Manufacturing Attributes page.