Kit definitions

A component line has a base quantity, planned scrap percentage and instruction. The bill carries effective dates and an activation state, so an existing build can retain the version it was released against. The route adds ordered work instructions, terminal operation markers and the labour and overhead basis. Standard cost belongs to the output item and organization at an effective version.

A kit of dealer display packs might require cartons, inserts and a finished pack label. The team should express the bill against a clear output basis, such as one completed pack, before it multiplies quantities for an order. A planned loss allowance belongs on the component line. It should not be hidden by changing the finished quantity after release.

• Product identity. The output stock item and unit determine the common quantity basis for demand, component calculations and completed stock.
• Component recipe. The active bill and its lines retain component identity, required quantity, planned loss and instructions.
• Work instructions. The routing orders the operations and records how labour and overhead will be represented during execution.

Agree which organization owns each kit and where its finished stock will be held. Confirm the base unit for each component and how buy and sell packs convert to it. Warehouse Manager and Purchasing Manager should reconcile a test bill against an actual supplier pack before the first build. Finance Manager should review the effective standard cost, because the completed output uses it to explain the variance from actual work in process.

Agree when a changed recipe becomes active. A new bill version can serve later builds while an already released build keeps its frozen source. This preserves the reason a completed kit used a particular component quantity. Product master activation should use an independent review.

Take one accepted dealer order for the finished pack. Check that the ordered product unit converts to the kit’s base unit. Compare the active bill’s output basis with the planned build quantity. Walk each component line to an active stock item and a warehouse location. Then compare the route’s operations with what the team will actually report on the floor. If a substitute component is needed, create a reviewed version before releasing the build rather than changing the component after issue.

• Kit definitions — Active bills with their output item, version and output basis.
• Build status board — Released work that carries the selected definition into execution.

Continue with plan and release and the data model.