In the Bill of Material (BOM) module, there is a "Used in Kit" box, where users have the option to mark each item loaded to the BOM as Y, N, or F (see image below).
Y = Yes
"Y" indicates the part is used in the Kit and will be considered for MRP demands and will appear within the Kitting module Qty Pick screen. Once the parts have been issued to the kit the system will automatically decrement it from inventory upon WO completion.
N = No
"N" indicates the part is not used in the kit, but it will be considered by MRP for demands, and it will not appear in the Kit module Qty Pick screen. This item will still be displayed on the Kit Pick Worksheet but it will have the “N” next to the item so users will know that it is not used in the kit. For example, you would use this option for documentation. Keep in mind that this item will be picked by the users on the floor, but it will not be relieved from inventory in any way through the Kitting module. Users have to go make and manually adjust the inventory quantity for this type of item.
Note: MRP also designates items as "N" when in "used in kit" for purchase order actions. The "N" does not mean "don't buy this part," but instead, it means "don't kit this part." The part is still needed, or it wouldn't be on the BOM. Or the quantity would be zero. This feature is usually used when having bulk stock on the floor, and the assemblers pull the parts out of floor stock. But there still remains the requirement to get the parts in-house so they can be put into floor stock.
F = Floor
"F" indicates the part would be used for an item that is not kept in the stock room but is physically stored out on the production floor. Parts marked "F" will also be considered by MRP for demands, but will not be displayed on the Kit Module Qty Pick Screen or the Shortage report. Moreover, parts marked "F" will still be displayed on the Kit Pick Worksheet but it will have the “F” next to the item to indicate to users that it is located on the Floor. Keep in mind that this item will be picked by the users on the floor, but it will not be relieved from inventory in any way through the Kitting module. Users have to go make and manually adjust the inventory quantity for this type of item.