Full Kitting: Meaning, Benefits and Process

The door to business expansion is opened when you utilize services like full kitting which is an additional service offered by eCommerce fulfillment.  On the other hand, full kitting is a service that can increase sales, cut the lead time for customer orders, increase fulfillment accuracy, and lower storage expenses. So what does Full Kitting mean and how to Intergrate it to your Business? This article will help you answer this question!

What does "full kitting" mean?

The definition of "full kitting" is a tried-and-true manufacturing technique with a lot of potential to solve the issue of job transitions and enhance both production and service operations. 

 Because of the quicker reaction time, lower prices, and greater quality, it can be used to acquire a strategic competitive edge. It ensures that once work has begun, it may be completed quickly. This prevents the waste that results from tasks having to halt and begin repeatedly because requirements are not accessible when needed to finish the task. It drastically reduces the number of additional steps needed to finish one level.

What Causes Full Kitting to Occur?

First, there is no consistency in the accurate data that a product from earlier process steps must have. The second reason is the efficiency mindset—the desire to use your resources most. Following the false idea that a worker should be busy all the time leads managers to have their employees work with incomplete supplies just so they won't be idle. 

More significantly, it also entails a decrease in throughput, an increase in work-in-process (WIP), and an increase in operational costs. The third reason is that the customer puts pressure on the business to begin working on their duties even when the kit is not complete. This is undertaken with the misguided notion that it will reduce lead time, but in reality, it actually extends the lead time. 

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Full Kitting and Limited Resources

When a resource is limited and the task must be completed, full kitting is very crucial. 

Imagine, for instance, if you underwent surgery, and when the surgeon arrives, she discovers that the surgical tools aren't ready, the nurses are running late, the anesthetist doesn't have the proper dose, etc. Not only are you left on the operating table while everyone gets their act together, but the surgeon's time is also being wasted greatly. Full kitting in this situation would entail:

• All necessary tools, supplies, and medications are checked, calibrated, tested, and kept on hand.
• Getting the patient psychologically and physically ready for the operation.
• Obtaining and examining the patient's medical reports.
• Ensure the presence of all relevant personnel, such as the surgeon, anesthetist, nurses, etc., before the procedure starts.

The Benefits of Full Kitting

• Less work is still in progress. Using a kit that isn't full results in more work being done while it waits for missing parts to be delivered. More unfinished kits result in more WIP and longer lead times.
• Minimal lead time. Using inadequate kits results in more setups, and the double handling increases the amount of time needed to perform each activity.
• Reduced rework and better quality. Poor performance results from having a lot of work in progress. Complete kits frequently wait too long in insufficient storage facilities.

When the missing components show up, they are added haphazardly, which could lead to quality issues. The process and the product are unquestionably damaged by the multiple handlings, which typically necessitate extra rework.

👉 Read More: What Is Finished Goods Inventory? Example And Formula 

• Better throughput. Throughput does not include a processed item that is not sold. Other tasks that could increase throughput must wait while resources are used on goods that cannot be dispatched.
• An improvement in employee motivation. It is improper to use an unfinished kit. This method of manufacturing is known as "hurry up and wait."

When the "red hot" incomplete kit shows up, it is given great priority. It then waits for the remaining things to arrive. When individuals are made to perform more, seemingly unneeded work, it undermines their drive and faith in the system (double setups and more handling).

• Optimal warehousing and storage. A lean production model is used by manufacturing companies with the goal of eliminating waste to the greatest extent possible.

When kitting is carried out by third-party logistics partners, firms can cut down on the amount of space needed to store their inventory, which reduces waste. Additionally, producers can free up space by bundling parts instead of using as much packaging, which saves money on storage.

• Increased business profitability. Increased production costs reduce a manufacturer's profit margin. However, reducing production costs and raising the profitability of the manufacturing industry can be accomplished in large part through improved storage and production techniques.
• Effective production method. Production operations can be accomplished much more quickly and effectively thanks to kitting, which gives the operator in charge of the assembly of all necessary parts.

How To Integrate Full Kitting Into Business Procedures

• Determine the standards under which a process step's deliverable is deemed complete.
• Make sure that no process step can be finished unless the deliverable satisfies the set requirements. Business rules or checklists may be used to achieve this.
• Determine the prerequisites that must be met in order for a process step to be initiated. With the assurance that the system will enforce them at runtime, you can express these requirements during planning.
• Make sure the process step can continue to completion at full speed once it has begun.

This prevents the waste that results from having to repeatedly stop and begin an activity or project because necessary requirements are not accessible to finish it. It greatly lowers the number of subsequent actions needed to finish a single stage.

👉 Read More: What Is Hedge Inventory? Example And Types

👉 Read More: What Is The Inventory Master File? Example File

Conclusion

Full kitting plays an important role in warehouse operation because it may be possible for you to reduce costs by using component kitting. The materials required to make your goods as well as the inventory can both be optimized. You should examine this more closely since everyone is interested in reducing costs and enhancing operational effectiveness and check Efex to read helpful article.