EDU42D7Y.doc

Setting Up Work in Process

Overview

Copyright © Oracle, 2008. All rights reserved.

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Objectives

Objectives

After completing this lesson, you will be able to:

• Understand the integration between Oracle Work in Process and other Oracle Applications

• Describe the setup prerequisites

• Define the setup steps for Oracle Work in Process including WIP parameters, profile options, accounting classes, and other settings



Agenda

Agenda

• Setting Up Integrated Oracle Applications

• Work in Process Setup Steps

• Defining WIP Parameters

• Defining WIP Accounting Classes

• Setting Profile Option Values

• Creating Production Lines

• Creating Schedule Groups

• Setting Labor Rates

• Setting Shop Floor Statuses

• Defining Standard Documents

• Summary



Overview of Setting Up

Overview of Setting Up

Oracle Work In Process setup determines how the application functions in your organization. and how WIP communicateswith other applications.



Setting Up Integrated Oracle Applications


Oracle Inventory

Oracle BOM and Engineering

Oracle Order Management

Oracle Planning

Oracle Purchasing

Oracle Quality

Oracle Cost Management


Oracle Work in Process is integrated with other Oracle applications. The following applications play a role in the execution of Work in Process:

• Oracle Inventory–items, subinventories, lot and serial number setup

• Oracle Bills of Material and Oracle Engineering–bills of material, routings, operations, and engineering changes to bills

• Oracle Order Management–sales orders

• Oracle Planning–forecasts and demand schedules

• Oracle Purchasing–requisitions and purchase orders

• Oracle Quality–collection plans

• Oracle Cost Management–transaction costing



Oracle Inventory

Oracle Inventory

Item Subinventory Locator Quantity

93501 Stores1 AA 25

93502 Stores2 BB 10

96717 Stores3 XX 304

Oracle Inventory

In Oracle Inventory you define inventory organizations and the assemblies to be produced. You need to define both finished goods and component item records. In Inventory you set:

• Items Items are defined that are used to create your product. You can choose whether to have centralized or decentralized control of items through a variety of item attributes.

• Assigning Items to OrganizationsOnce defined, assign items to organizations. You can enable items in all organizations under the master organization, or enable an item in specific organizations.

• Parameters Inventory parameters are defined for defaults, costing, lot and serial, ATP, and inter-organization information.

• SubinventoriesSubinventories represent a physical area.

Instructor Note

Refer participants to the Oracle Inventory User’s Guide for detailed information regarding the setup and implementation prerequisites, requirements, steps, and considerations.



Bills of Material and Oracle Engineering

Bills of Material and Oracle Engineering

Assembly

Item 123

Item 345

Item 678

Bulk

Supplier

Subassembly

Oracle Bills of Material and Oracle Engineering

In Oracle Bills of Material and Oracle Engineering you define the following areas:

• Product StructureBills of material are used to store lists of items that are associated with a parent item.

• Routings Routings define the step-by-step operations performed to manufacture a product.

• Standard Operations Each routing can have any number of operations. For each operation you specify a department that determines the resources used.

• Resources A resource is anything you require to perform, schedule, or cost the finished goods assembly. It includes employees, machines, and outside processing services. When departments are defined, you assign the resources available in each department.

Instructor Note

Refer participants to the Oracle Bills of Material User’s Guide for detailed information regarding the setup and implementation prerequisites, requirements, and considerations.



Oracle Engineering

Oracle Engineering

Engineering Change Orders

Oracle Engineering

Engineering change orders (ECO) are a record of revisions to your bills of material. Changes may include adding, changing, or disabling components. This enables you to have the correct revision changes for work as it progresses on the shop floor.

Oracle Advanced Planning provides functionality enabling you to align Work in Process production with engineering changes for planning (Engineering Change Orders Use-Up Effectivity).

Instructor Note

Refer participants to the Oracle Engineering User’s Guide for detailed information regarding the setup and implementation prerequisites, requirements, steps, and considerations.





Customer orders are a source of demand for job creation

Sales Orders


Sales orders are sources of demand used by the planning functions.You can automatically create standard discrete jobs from final assembly orders for specific customer configurations or standard assemble-to-order (ATO)/configure-to-order items.

You can reserve assemblies on a discrete job for a specific sales order line whether or not the assemblies are ATO items. You link jobs to sales orders by selecting one or more sales orders from the Sales Order window when you create the job.

Instructor Note

Refer participants to the Oracle Order Management User’s Guide for detailed information regarding the setup and implementation prerequisites, requirements, steps, and considerations.



Oracle Planning

Oracle Planning

Forecast

Master DemandSchedule

Master ProductionSchedule

Actual Production

Customer Orders

Inter-org orders

Oracle Planning

Oracle Planning products are used to automatically create jobs for production. You can import jobs into Work in Process using the Work Order Interface, or Advanced Planning and Scheduling's High Level Scheduling Engine. Demand sources include:

• Forecasts by product family or finished goods

• Customer sales orders

• Inter-organization transfer orders

• Master Demand Schedule (MDS)

• Master Production Schedule (MPS)

• Actual Production

Instructor Note

Refer participants to the Oracle Integration Repository at http://irep.oracle.com, and Oracle Supply Chain Planning manuals for detailed information on planning applications:

Oracle Advanced Planning Implementation and User’s Guide

Oracle Global Order Promising Implementation and User’s Guide

Oracle Demand Planning Implementation and User’s Guide



Oracle Collaborative Planning Implementation and User’s Guide

Oracle Master Scheduling/MRP and Oracle Supply Chain Planning User’s Guide



Oracle Purchasing

Oracle Purchasing

Oracle Purchasing

In Oracle Purchasing you setup suppliers and purchasing functionality. Work in Process uses purchasing functionality such as requisition import, blanket orders, approved suppliers, sourcing rules, and flexible tolerance fences.

Settings for resource requirements and outside processing parameters enable automatic creation of requisitions for material requirements using the Requisition Import process program.

Instructor Note

Refer participants to the Oracle Purchasing User’s Guide for detailed information regarding the setup and implementation prerequisites, requirements, steps, and considerations.



Oracle Quality

Oracle Quality

Quality Results Entered at Moves and Completions

OP 10 OP 20 OP 30

Oracle Quality

You can collect quality results when performing move and completion transactions. Quality collection involves creating context information for reference collection elements to the quality data repository. You must first set up your data collection structure. The basic building block of this structure is the collection element.

Collection elements define the characteristics of the product or process you are collecting, analyzing, and reporting data. For each collection element, you can specify a list of acceptable values or specification limits.

Collection plans specify the elements used, when and how to collect the data, and the actions to take.

• Data collection can be either mandatory or optional.

• The Quality icon is enabled when Oracle Quality is enabled for the organization, and a collection plan exists. This accesses the Quality windows and pages.

• You can specify that quality data is collected automatically or in the background.

Instructor Note

Detailed information on collection plans is available in the Oracle Quality User’s Guide.





You can:

• Track costs through the various stages of production

• Charge and report resource, outside processing, and overhead costs by activity

Cost information

Transaction costs


Oracle Cost Management enables you to track all your production costs to the correct valuation and variance accounts through multiple cost elements.

The system calculates move, issue, resource, overhead, completion, scrap, period close, and job close transaction costs. You can charge overhead automatically based on resource value charges, resource charges, or operation completions.

WIP accounting classes are used to establish your valuation and variance accounts. You can enter different accounts for each cost element within a WIP accounting class for maximum elemental account visibility. The values of these cost elements are summarized before being transferred to General Ledger.

Instructor Note

Refer participants to the Oracle Cost Management User’s Guide for detailed information regarding the setup and implementation prerequisites, requirements, steps, and considerations.

Refer to Practice Defining Finished Goods Assemblies, Components, and Subinventories [LAB42E1Y]

Refer to Practice Creating a Bill of Material [LAB42E2Y]



Agenda

Agenda











• Summary



Work in Process Setup Steps

Define WIP Parameters (Required)

Define WIP Accounting Classes (Required)

Set WIP Profile Options (Required)

Define Production Lines (Optional)


Schedule Groups (Optional)


After performing related application setup steps, you then create Work in Process records. Some steps are required and some are optional. Some steps are repeated for each set of books, set of tasks, inventory organization, HR organization, or other operating unit under multiple organizations.

Instructor Note

Always refer the participants to the Oracle Work in Process User’s Guide for the detailed information regarding the setup and implementation prerequisites, requirements, steps, and considerations.




Define Employees (Optional)

Define Employee Labor Rates (Optional)

Define Shop Floor Statuses (Optional)

Define Documents (Optional)


MES Workstation (Optional)



Agenda

Agenda











• Summary



Defining WIP Parameters


• WIP parameters define modes of operation and default values affecting various Work in Process functions

• Define one set of WIP parameters per organization

ORG 2ORG 1


Defining Work in Process parameters is a required step to set modes of operation and default values affecting functionality.

Instructor Note

WIP parameters are discussed in more detail in the lessons where the specific functionality is described.



WIP Parameter Categories


• Discrete

• Repetitive

• Costing

• Move

• Material

• Intraoperation Steps

• Outside Processing

• Scheduling

• Mobile

• Serial

• Other

Parameters set defaults and operation modes, they are in the following categories:


Discrete Parameters set discrete manufacturing defaults:

• Default Discrete Class determines which accounting class is used as the default.

• Default Lot Number Type Parameter determines how lot numbers are assigned.

• Respond to Sales Order Changes determines the status of a work order reserved and linked to a sales order.

Repetitive Parameters are used for repetitive manufacturing for recognizing period variances and automatically released schedules.

Costing Parameters are only visible if the organization is defined as an average cost organization in the Inventory Organization Parameters window. They include defaults for completion cost source for resource costing.

Move Transaction Parameters effect move transactions:

• Require Scrap Account determines whether a scrap account is required when you move assemblies in and out of the Scrap step, and how these transactions are costed.

• Allow Creation of New Operations for new operations.



• Allow Moves Over No Move Shop Floor Statuses determines whether moves are disallowed on certain intraoperation step settings.





• Discrete

• Repetitive

• Average Costing

• Move

• Material



• Scheduling

• Mobile

• Serial

• Other

WIP Parameter Categories (continued)

Material Parameters are used for material transactions:

• Include Component Yield controls if component yield is factored into quantities.

• Supply Subinventory, Supply Locator, and Lot Selection Method defines defaults for backflushing.

• Release Backflush Components is used with the Component Pick Release program.

• Allow Quantity Changes During Backflush enables changes to the transaction for lot or serial items.

Intraoperation Steps Parameter determines the steps are enabled in routings.

Outside Processing Parameters effect outside processing functionality including assigning shop floor status values, setting requisition creation, associating job roles with workflow notifications, and tolerance values for requirement dates.

Scheduling Parameters are used to include resource factors in scheduling calculations, and ifOracle Manufacturing Scheduling is installed, to use constraint-based scheduling. The parameters set resource efficiency, resource utilization, simulation set capability. You can also set a scheduling objective, horizon days, penalties, and due date tolerance. For constraint- based scheduling you can set constraints, and resource and material availability.





• Discrete

• Repetitive

• Average Costing

• Move

• Material



• Scheduling

• Mobile

• Serial

• Other

WIP Parameter Categories (continued)

Mobile Parameters are used if Oracle Mobile Supply Chain Applications is installed. It sets Default Scrap Account and Transaction Processing Mode.

Serial Parameters set features for serial number control tracking. This includes serial control beginning at the routing, association of serial numbers to jobs before their production, serial based transaction entry, generation of serial numbers, and serial label printing.

Other Parameters set features for material availability checking, overcompletions, and component pick release.

Refer to Practice Setting Work in Process Parameters [LAB42E3Y]



Agenda

Agenda











• Summary



Defining WIP Accounting Classes


• WIP accounting classes are sets of accounts used to charge the production of an assembly.

• You can define any number of accounting classes.

• Valuation and variance accounts associated with your accounting classes determine the accounts charged.


Accounting classes are used to group job costs. For example, if you build subassemblies and finished goods, you can define your accounting classes to separately value and report the costs associated with subassembly and finished goods production

You define an accounting class, and assign valuation and variance accounts to it. When you issue materials to a job that uses this accounting class, the appropriate valuation accounts are charged. When the job is closed, final costs and variances are calculated and posted to the variance and valuation accounts. When the accounting period is closed, these journal entries are automatically posted to the general ledger.

WIP Accounting Class Defaults

You can set up default WIP accounting classes at several levels:

• Category account level for discrete jobs, and repetitive line and assembly associations

• Default Discrete Class parameter class level for standard discrete jobs

• Project cost group level for project jobs

Instructor Note

Accounting classes are discussed again in the Work in Process Cost Transactions lesson.





Categories of WIP Accounting Classes:

• Discrete

• Repetitive

• Lot Based

• Maintenance



Discrete Accounting Classes


You can define accounting classes for each type of discrete production you use:

• Standard Discrete

• Non-Standard Discrete

• Expense Non-Standard Discrete

• Asset Non-Standard Discrete


Standard Discrete

Used to group job costs for standard jobs. This enables you to separately value and report the costs associated with subassembly and finished goods production.

Non-Standard Discrete

Used to group and report various types of non-standard production costs, such as field service repair or engineering projects.

Non-Standard Expense

For tracking recurring expenses such as machine maintenance - with non-standard jobs. The valuation accounts carry the costs incurred on these expense jobs as an asset during the period, and automatically writes them off to the variance accounts at period close.

Non-Standard Asset

For non-standard discrete jobs used to track production costs as assets. Asset non-standard discrete jobs are costed the same as standard discrete jobs.



Repetitive Accounting Classes

Repetitive Accounting Classes

Repetitive Accounting Classes are used to group production costs for each repetitive line/assembly association.



Lot Based Accounting Classes


Used when Oracle Shop Floor Management is installed using network routings. The categories include:

• Standard Lot Based

• Expense Non-Standard Lot Based

A B

C

D

E F


Oracle Shop Floor Management extends work in process functionality using network routings, lot based transactions, and yield based operational costing.

Standard Lot Based

The standard lot based accounting class is used to separately value and report costs associated with yielded production at each individual operation on the routing. If Estimated Scrap Accounting is enabled, both Estimated Scrap accounts are required.

Expense Non-Standard Lot Based

Non-standard jobs control material and collects costs for miscellaneous activity. These jobs are used for expense work orders for testing, prototypes, and rework where operation yield costing is not considered.



Maintenance Accounting Classes


Used when Oracle Enterprise Asset Management is installed for work orders related to plant maintenance activities.


You can define your accounting classes to separately value and report the costs related to assets. Maintenance accounting classes are automatically defaulted when you create eAM work orders.



Valuation and Variance Accounts


Valuation and variance accounts associated with your accounting classes determine the accounts charged:

• Valuation accounts are charged when you perform transactions

• Variance accounts are charged when jobs are closed, or the accounting period is closed


When you define an accounting class, you must assign valuation and variance accounts to it. Valuation and variance accounts associated with your accounting classes determine the accounts charged.

Valuation accounts are charged when you issue components, move and complete assemblies, and charge resources. Variance accounts, depending on the accounting class, are charged when jobs are closed, or when the accounting period is closed.

When the accounting period is closed, these journal entries are automatically posted to the general ledger.



Agenda

Agenda











• Summary



Setting Profile Option Values


• A value is set for each profile option to specify how Work in Process controls access and processes data.

• The system administrator sets and updates values for profile options.


Oracle Applications has an extensive list of profile options, and profile options are defined in category types. The categories are used to control how the profile options are viewed in the interface, enabling you to view only those profile options pertaining to specific products or functions you are maintaining. Oracle Work in Process has 22 profile options.

Instructor Note

Only a few of the profile options are described in this lesson. More detail is discussed in the lesson where specific functions are described. Refer participants to the Oracle Work in Process User’s Guide for the detailed information regarding profile options.





TP:WIP:Completion Material Processing

• Controls material processing of assembly completions, returns, and backflush transactions

TP:WIP:Completion Transaction Form

• Determines whether completions are processed online or in the background

Setting Profile Option Values (continued)

TP:WIP:Completion Material Processing

Controls material processing of assembly completion, assembly return, and assembly completion backflush transactions in the Completion Transactions window. When you save a completion transaction, the available values are:

• Background Processing: Control is returned to you immediately and transactions are processed on a periodic basis.

• Concurrent Processing: A concurrent process is spawned and control is returned to you immediately.

• Online processing: The transaction is processed while you wait and control is returned once transaction processing is completed.

TP:WIP:Completion Transaction Form

Determines whether completions are processed online or in the background in the Completion Transactions window. Available values are Background Processing or Online Processing.





TP:WIP:Move Transaction

• Determines if move transactions are processed online or in the background

TP:WIP:Move Transaction Quantity Default

• Indicates how move transactions are defaulted


TP:WIP:Move Transaction

Determines if move transactions using the Move Transactions window are processed online or in the background. If you have this option set to Online processing, you cannot move more assemblies than are waiting at an operation step„Ÿunless you have defined an Overcompletion Tolerance in WIP Parameters, or for the job or assembly item.

TP:WIP:Move Transaction Quantity Default

Indicates if and how move transaction quantities are defaulted. Available values are:

• None: No transaction quantity is defaulted.

• Minimum Transfer Quantity: Quantity defaults to the minimum transfer quantity. You can define minimum transfer quantities for your operations in the Operations window.

• Available Quantity: Defaults to the available quantity if this value is not zero.





TP:WIP:Shop Floor Material Processing

• Controls processing of operation and assembly pull backflush, assembly scrap, move completion, and move return transactions

WIP:Define Discrete Job Form

• Controls processing of operation and assembly pull backflush, assembly scrap, move completion, and move return transactions


TP:WIP:Shop Floor Material Processing

Controls processing of operation and assembly pull backflush, assembly scrap, move completion, and move return transactions from the Move Transactions window. Available values are Background, Concurrent, and Online processing.

WIP:Define Discrete Job Form

Indicates how to load the bill of material and routing information when defining jobs in the Discrete Jobs window. Available values are:

• Concurrent definition: When you save a job, a concurrent process is spawned and control is returned to you immediately. Concurrent definition produces an output report.

• Interactive definition: When you save a job, job definition occurs immediately, and control is returned when the definition process is completed.





WIP:Enable Outside Processing Workflows

• Determines if outside processing workflows are enabled

WIP:Job Name Updateable

• Determines whether you can update the names of existing jobs in the Discrete Jobs window

WIP:Requirement Nettable Option

• Determines which subinventories to display when displaying on–hand quantities


WIP:Requirement Nettable Option

Determines which subinventories to include when displaying on–hand quantities in the Material Requirements windows and pages. Choices are View only nettable subinventories and View all subinventories.



Agenda

Agenda











• Summary



Creating Production Lines


A production line describes a set of operations, departments, or manufacturing areas that produce your products.


A production line describes a unique set of operations, departments, and or manufacturing areas that produce your products.

The Production lines window is used to define your lines. You can also define tolerance fences in this window. Tolerance fences provide temporary increases to capacity above the standard operating rate to handle increases in orders. Oracle Flow Manufacturing uses flexible tolerance fences during line scheduling to temporarily alter the line rate, that is the capacity of the line.



Agenda

Agenda











• Summary



Creating Schedule Groups


Jobs and schedules within a given schedule group can be sequenced and prioritized.


You can create schedule groups for both discrete jobs and flow schedules. This enables sequencing and prioritizing by schedule group for a specific customer.



Agenda

Agenda










• Summary



Setting Labor Rates

Setting Labor Rates

Labor rates are for person-type resources (employees).

Setting Labor Rates

You can enter an employee number when performing a resource transaction. If you use actual costing, the hourly labor rate, rather than the standard rate, is used to compute the actual cost of person-type resources charged to jobs and schedules.

Note: Oracle Human Resources Management Systems (HRMS) is the source for the employee names and numbers. If Oracle HRMS has not been installed, then you must manually enter employee names and employee rates.



Agenda

Agenda










• Summary



Setting Shop Floor Statuses

Setting Shop Floor Statuses

You can control move transactions by assigning Shop Floor Statuses to intraoperation steps on the routing.

Queue Run To Move RejectOP 10

OP 20

OP 30

Scrap

Defining Shop Floor Statuses

You can assign shop floor statuses to any intraoperation step associated with a job or assembly, and assign multiple statuses to an intraoperation step. Statuses are used to record more detailed information regarding assemblies at a particular step within an operation.

Shop floor statuses can be used to control shop floor movement transactions.You have the option to prevent move transactions from steps within an operation by defining shop floor statuses that prevent moves, and assigning them to an intraoperation step. For example, you may want to create a Hold for Quality status that can be assigned to an intraoperation step before moving to the next assembly step. You can also enable the Uncheck Allow Moves flag to use this status to control move transactions.



Agenda

Agenda










• Summary



Defining Standard Documents


You can define standard documents and attach them to jobs, schedules, and job/schedule operations.

A B C D E


Use the Job and Schedule Documents window to create a catalog of standard job and schedule documents The Operation Documents window is used to create a catalog of operation documents and attach these documents to your work in process routing operations, Your documents can be text, files, or web pages.

Note: If you are using the MES Workstation, this functionality is setup in the Manufacturing Execution Systems Parameters region.



Agenda

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• Summary



Summary - Work in Process Setup Steps

WIP Parameters

AccountingClasses

Profile Options

EmployeesScheduleGroups

ProductionLines

LaborRates

DocumentsMES

Workstation

Summary - Work in Process Setup Steps

Summary – Work in Process Setup Steps

Oracle Manufacturing Execution System (MES) for Discrete Manufacturing

The MES Workstation provides shop floor operators and supervisors a single interface to perform multiple work in process functions, without navigating to a number of transaction windows. The MES Workstation setup includes configuration for actions, display, security, and transactions. This information is discussed in the Manufacturing Execution System (MES) Workstation lesson.

Refer to Practice Defining an Accounting Class, Shop Floor Status, and Employee Labor Rate [LAB42E4Y]



Summary

Summary

You should now be able to do the following:

• Understand Oracle Work in Process integration with other Oracle Applications

• Describe the setup prerequisites

• Define the setup steps for Oracle Work in Process including integrated applications, WIP parameters, profile options, accounting classes, and other settings



EDU42D7Y.doc

Documents

oracle inventoryitems

oracle inventory users

oracle bills of material

oracle advanced pl

items items

inventory organizations

engineering changes

execution of work