Challenge: A customer was buying six specific parts that we used together in the assembly of a larger product. Six purchase orders were issued and the parts were purchased independently. Coordination and inventory of the parts became unnecessarily tricky, and shortage of one part prevented the larger assembly from being completed.
Solution: Design a kit such that each kit contains one each of the six parts. The kit was given a new part number and the customer would order the kit (not the individual parts).
Result: The recommendation permitted the customer to flat their bill of materials; control only one kit number and ensure that the parts were combined to make the larger assembly. The customer had only one inventory item (the kit) and it made pulling stock for the assembly department much easier. Additionally the kit provided organization and orientation to ease of assembly.