EDU42D9Y.doc

Updating Material Requirements

Updating Material RequirementsOverview

Updating Material RequirementsSystem References

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Updating Material Requirements

Objectives

Agenda

Instructor NoteRefer participants to the Oracle Work in Process Users Guide for detailed information regarding material requirements.Overview of Material Requirements

Overview of Material Requirements

Overview of Material Requirements

For non-standard jobs, bill of material references are used to create material requirements, but references are not required. You can define the job without material requirements, and then customize by adding requirements.

Instructor NoteRefer participants to the Oracle Bills of Material Users Guide for detailed information regarding defining job components.Overview of Material Requirements

Overview of Material Requirements (continued)When you define jobs and schedules you can combine standard, alternate, or common bills of material and routings to create specific material requirements anywhere in the routing. The assembly revision determines which version of the bill of material is used to create the requirements.

Note: You can create material requirements without routings. They are assigned to a default operation sequence of 1.

Backflush transactions are material transactions that automatically issue component items into work in process from inventory when you move or complete the assembly.

Overview of Material Requirements

Overview of Material Requirements (continued)

Push and Pull RequirementsYou can push (issue) and pull (backflush) components items to jobs and schedules. A component's supply type determines how it is supplied.

Component PickingYou can issue components using the Component Pick Release program. You can also use a rules based system to determine a recommended source location for components.

Transaction Processing OptionsProfile options are used to set material transaction processing such as online, concurrent, andbackground processing.

Inventory Transaction Interface

Work in process material transaction information can be loaded from external systems -such as bar code readers and other data collection devices - into the InventoryTransaction Interface.

Aligning ECOs for Work in Process and Planning

Aligning ECOs for Work in Process and Planning

In Oracle Advanced Planning, the ECO Use-up Date is the date when the on-hand quantity is calculated to be 0. It is calculated from inventory supply and requirement demand. A profile option is provided, MSC:Release WIP Details if Order Date Different than BOM Revision Date, to align work in process production with engineering change orders in planning. This enables you to control resource and component schedules calculated by planning, and forwarded to Work in Process when ECOs exist. Production order recommendations from planning can either ignore active ECOs, or assume future ECOs are already active.

Instructor NoteRefer participants to the Oracle Advanced Planning Implementation and Users Guide for detailed information regarding Engineering Change Orders User-Up Effectivity.WIP Parameters - Material

WIP Material Parameters

Include Component Yield

Component yield is factored into component quantities during transactions. The quantity is an entered value on the bill of material. You can disable this function to avoid inflating transaction quantities during execution.

Backflush Default Parameters

Supply Subinventory and Supply Locator determine default values when backflushing components if not defined on bill or inventory item level.

Release Backflush Components is used with the Component Pick Release program to consider both pull and push components.

Lot Control Parameters

Lot Selection Method determines how lot controlled component items are selected during backflush transactions.

Alternate Lot Selection Method is used for Selection Method set to Transaction History.

Lot Verification is used with selection method of Receipt or Expiration Date.

Allow Quantity Changes During Backflush enables changes to the transaction to provide the ability to over or under issue pull components when lot or serial entry is required..

Component Yield and Shrinkage

Component Yield and Shrinkage

Component yield is the amount of a component you require to build, plus the amount of the component you lose or waste while building an assembly:

The aggregate required quantity can be inflated to allow for shrinkage.

A yield factor of 100% indicates no loss in the manufacturing process.

A yield factor of less than 100% indicates that less than 100% of the components you issue survive the build process and component usage quantity increases.

The cost rollup optionally includes the effect of component yield in the assembly costs.

The Include Component Yield parameter lets you disable this calculation.

Simulating a Discrete Job

Refer to Practice Inventory Material Setup [LAB42E7Y]

Agenda

Component Supply Types

Component Supply Types

By synchronizing your bill of material with routings, you can specify when and where materials are to be issued or backflushed to your jobs and schedules You can assign supply types to the items you define in Oracle Inventory, or define them on the bill of material. Supply types can also be changed when you create the job or schedule. If you change the supply type on your work order, you are overriding the supply types for all the components on that job. You can update the supply types of individual material requirements using the Material Requirements window.

Based on Bill

This supply type uses the bill of material information. If there is no bill or routing for the job, the system automatically changes the supply type to Assembly Pull.

Assembly Pull

Components are issued when assemblies are completed. They are pulled from the supply subinventory assigned to the component requirement. You cannot assign this supply type to a non-standard discrete job if you have not specified an assembly or bill of material reference.

Component Supply Types

Component Supply Types (continued)

Bulk

Bulk components are used on the shop floor, but are not transacted. Bulk components are not backflushed, you manually issue specific bulk components to a job.

Operation Pull

These components are issued to discrete jobs and schedules when you complete backflush operations. Components are pulled from the supply subinventory assigned to the component. They require a routing.

Push

Push components can be issued directly to jobs and schedules as required.

Supplier

These are the component materials that your suppliers provide, but you do not transact them. Supplier components are not backflushed, nor do they default when issuing all components for an assembly.

Phantom Assemblies

Phantom Assemblies

Phantoms behave normally when they are top level assemblies, such as when master scheduled or manufactured on a discrete job. As subassemblies, they lose their distinct identity and become a collection of their components. Work in Process does not recognize the phantom subassembly itself, and only sees and lists the individual phantom components on the bill of material (although the phantom subassembly is recognized in Oracle Planning products).

You can specify that phantom subassemblies maintain their own operation sequence numbers, and their resource and overhead costs are charged to the parent or higher level assembly, by setting up two parameters in Oracle Bills of Material.

Agenda

Viewing and Updating Material Requirements

Viewing and Updating Material Requirements

You can view and update material and component requirements in a variety of ways:

On the Discrete Jobs window, choose Components. The Material Requirements window appears when you access Components. You can then view detailed information about components in the window's tabbed regions.

The View Material Requirements and Material Requirements window display material requirements across jobs and schedules and for individual records.

On the Discrete Workstation, you can view component requirements on the Component Requirements canvas for a particular job.

On the MES Workstation, you can access the Components section of the Work Content and Job Details pages, and navigate to the Transact Components page.

Updating Material Requirements

Material Requirements and View Material Requirements Windows

Material Requirements and View Material Requirements Windows

These windows enable you to view and update material requirements for individual jobs and schedules, and also across jobs and schedules. When you a select components to update your job, you have the following options:

Adding engineering items as requirements if the WIP:See Engineering Items profile option is set to Yes.

Selecting Operation Sequence number to identify where material is required. You can only add components at existing operations. For a job or schedule without a routing, the system displays 1 as the default operation sequence.

Changing the Date Required field. The default for jobs and schedules with routings is the start date of the operation. Without routings, the system displays the scheduled start date.

Changing the default Basis Type. This value comes from the bill of material and is used for calculating component requirements. It has the following choices:

Item: Usage quantity is the amount required per job and multiplied by the job quantity.

Lot: Usage quantity is taken directly from the bill of material and not multipliedby job quantity. Component usage is fixed per lot.

Material Requirements and View Material Requirements Windows

Material Requirements and View Material Requirements Windows (continued) Changing the Required Quantity for the component. It is calculated based on basis type.If you are adding a component, the per assembly quantity defaults to 1 and therequired quantity is derived from the job or schedule quantity and displayed in thecomponent's primary UOM. You can also enter a required or per assembly quantity of zero.

Updating the Inverse Usage and Yield fields. They are used to enter values in cases where decimal quantities may inflate requirements, or cause variances in rounding calculations.

Updating values in the Supply tabbed region. If the item does not have a supply type, the value defaults to push. If the component's supply type is assembly pull or operation pull, you must select the supply subinventory.

Discrete Workstation

Discrete Workstation

On the Discrete Workstation you can view components in the Component Requirements panel for all components used on a job.

In the Assembly Moves, Component Shortages, Time Charges, and Properties panels you can choose Issue Components to access the Material Transactions window. From here you can choose various transaction types such as issue, transfers, or returns.

MES Workstation

MES Workstation

The MES Workstation for the operator includes one tabbed region that provides Manufacturing Execution System (MES) capabilities on top of Oracle Work in Process. It provides the ability to view the work dispatch list, and then navigate to a number of transaction windows. You can view and create component transactions from the Transact Components page, accessed from the Dispatch List. This page enables you to create a number of component transactions including:

Issuing and returning components

Entering subinventory and locator information

Entering applicable lot and serial number data

This page also has a feature for defaulting the display to supply type push components.

Kanban Replenishment

Kanban Replenishment

In a pull-based system, inventory items are replenished as soon as they are needed. Kanban cards are used as replenishment signals. The term kanban refers to a visual replenishment signal, such as a card or an empty container for material. In a kanban system, each workstation can have several containers, each holding the same quantity of material. These cards generate material requests automatically. Kanban material replenishment is a self-regulating pull system to pull the minimum amount of material possible into production bins to meet demand. Kanban replenishment enables you to:

Minimize inventory investment

Increase inventory turns

Stage material at point of use

Integrate suppliers into the supply chain

Eliminate work order kits

The source type of the kanban card determines how the material is replenished. A supplier kanban may automatically trigger a purchase order to a supplier, while an internal kanban results in an inter-organizational transfer.

Kanban Replenishment

Kanban Replenishment (continued)

Kanban planning is used to calculate the kanban container quantity or number of containers, for each item at each point of use. Demand is specified for the finished assemblies and their bills of material are exploded to derive component quantities at consumption points.

Kanban cards, created in Oracle Inventory. In Oracle Flow Manufacturing, you can both plan and execute kanban replenishment. The Graphical Kanban Workbench combines kanban setup, kanban planning, and pull sequence definition in one interface.

Instructor NoteRefer participants to the Oracle Inventory Users Guide for detailed information regarding kanban card setup. And refer participants to the Oracle Flow Manufacturing Users Guide for detailed information on the Graphical Kanban Workbench, and replenishing kanban material in the Flow Execution Workstation.Agenda

Overview of Backflush Transactions

Overview of Backflush Transactions

Backflush transactions occur either during move or completion transactions. These transactions pull components with operation pull and assembly pull supply types from inventory into jobs and schedules. Backflush transactions can be launched by:

Completing assemblies at operations using the Move Transactions window

Moving and completing assemblies into inventory using the Move Transactions window

Completing assemblies into inventory using the Completion Transactions window

Receiving assemblies from an outside processing operation using the Oracle Purchasing, Enter Receipts window

Move transactions imported through the Open Move Transaction Interface

Transactions imported through the Oracle Inventory Open Transactions Interface

Instructor NoteRefer participants to the Oracle Integration Repository at http://irep.oracle.com, for information on the Open Move Transaction Interface and the Open Transactions Interface.Overview of Backflush Transactions

Overview of Backflush Transactions (continued)

You can reverse backflush transactions and automatically return backflushed components back to inventory. For example, pull components that are backflushed as you move assemblies to the next intraoperation step in a routingthey are automatically returned to inventory if you move assemblies to a previous step in the routing.

Backflush transactions are enforced by the following rules:

A default supply subinventory must be defined for the component

Routing references are specified for non-standard jobs

Component item is transactable in the Inventory item master record

Backflush quantities in decimal values must be no more than five decimal places

Yield calculations are based on exact requirements, rather than rounded values

Assembly and operation pull components under lot, serial, or lot and serial number control can be backflushed. The Backflush window provides efficient entry for large numbers of lot and serial controlled items when creating assembly move transactionsincluding scrap, reject, and assembly completion.

Note: Push components that are requirements of work order-less schedules are always backflushed.

Agenda

Overview Lot and Serial Number Control

Overview of Lot and Serial Number Control

Oracle Work in Process supports serial number and lot number control for material transactions. When performing issues, returns, and completions, you can enter serial numbers or lot numbers, or both for items under control:

For serial control, when issuing items to work in process, you can use the predefined or dynamically created serial numbers assigned upon receipt of an item into inventory.

For lot control, you can use the lot number assigned upon receipt of an item into inventory when issuing that item to work in process.

You can perform serialized move transactions through Oracle Mobile Supply Chain Applications using a mobile device.

Instructor NoteRefer participants to the Oracle Inventory Users Guide for information on serial number and lot number control setup.Setting Up Lot and Serial Control

Setting Up Lot and Serial Number Control

Inventory Setup

In the Inventory Item Master window, specify Serial Control type, as Predefined. Work in process serial tracking is only enabled when you use the value of Predefined.

Establish the type of serial number uniqueness in the Oracle Inventory Organization Parameters window. Options are Within inventory items, Within an organization, or Across organizations.

You can generate serial numbers using the Serial Number Generation concurrent program. This program is accessed from a number of serial entry windows.

Work in Process Setup

The Serial tabbed region of the WIP Parameter file is where you set features for this tracking including control beginning at the routing, association of serial numbers to jobs before their production, serial based transaction entry, and label printing:

Default Serialization Start Operationsets the job operation where tracking begins.

Auto Associate Serial Numbers on Job Creation From Interfaceused with WIP Mass Load for automatically generated serial numbers

Default Intraoperation Step for Assemblydefines a default value for the intraoperation step when moving assemblies. Assigning Lot and Serial Numbers

Assigning Serial Numbers

Serial numbers can be assigned, accessing Inventory functionality, in several WIP windows.

The Associate Serial Numbers window is accessed from the Discrete Jobs window. This window enables you to generate and associate new or existing serial numbers for the job.

You can assign lot and serial numbers at completion transactions in the Work Order-less Completions window. After accessing the Components window, select your items and choose Lot/Serial to access the Lot Entry or Serial Number Entry windows for data entry.

During move transactions, the Backflush window appears if you are backflushing lot or serial controlled pull components. This window provides efficient entry for large numbers of lot and serial controlled items.

On the Discrete Workstation you can backflush lot and serial number controlled items during completion transactions. The Components dialog window is accessed where you can navigate to the Lot Entry or Serial Entry windows directly from the workstation. A visual indication of the required data entry is displayed.

On the MES Workstation, the Transact Components page enables you to enter lot and serial numbers. For individual components, select values in the Serial region. If serial numbers have not been generated, select Enter Multiple Lot and Serial to access the Add Lot and Serial page in Oracle Inventory.

Serial Number Tracking Throughout Manufacturing

Serial Number Tracking Throughout Manufacturing

You can track your jobs using serial control throughout the manufacturing process. Serial tracking is only supported in the online mode using Work in Process in Oracle Mobile Supply Chain Applications. This feature enables you to assign and associate serial numbers to a job, and track the assembly by serial number as it progresses on the shop floor. This includes:

Serial control beginning at a specific point in the routing

Association of serial numbers to jobs before build

Serial based transaction entry

Import and auto-generation of serial numbers

You can view the genealogy of the serialized assembly including component issues and returns, and assembly completions and returns.Agenda

Using the Component Pick Release Program

Using the Component Pick Release Program

Component picking, obtaining requirements for specific jobs and schedules, is the process of moving items from source locations and issuing them to work orders. The Component Pick Release program features include:

The Component Pick Release window is used to select requirements and create move orders for discrete jobs, lot based jobs, repetitive schedules, and flow schedules.

There is a distinct and individual window for the manufacturing mode selected.

Move orders, requests for the movement of material within an organization, are created for picked items. They enable the replenishment of material within a warehouse or manufacturing shop floor.

The source for material picked is based on Oracle Inventory allocation rules entered on the Picking Rules window. If Oracle Warehouse Management is installed, you can use rules based picking recommendations. This employs user defined rules to recommend locations to pick from, specific items to pick, and item revisions. Pick methodologies, or grouping rules, control how pick tasks are grouped to individual picking. Grouping rules include order pick, bulk pick, cluster pick, and user defined grouping rules.

The destination for picked material depends on the supply type.

Using the Component Pick Release Program

Using the Component Pick Release Program (continued)

If you are using the Component Pick Release program, you can run the pick release multiple times until the requirement is filled.

Setup

The Component Pick Release program only considers supply type push components in processing, unless the Release Backflush Components parameter is enabled. This parameter enables both operation pull and assembly pull supply type components in the pick release process.

Refer to Guided Demonstration Using the Component Pick Release Program [LAB4370Y]

Agenda

Overview of Outside Processing

Overview of Outside Processing

Outside processing provides a closed loop system using Oracle Inventory, Oracle Purchasing, and Oracle Work in Process to:

Define outside resource requirements for routings, and automatically charge outside processing resource costs.

Automatically generate purchase requisitions.

Receive assembly items from outside processing suppliers.

Outside Processing Items

You can define outside processing items that represent supplier-sourced items, resources, and services that you include in your build process. These items can be non-stocked items which represent the actual supplier contribution in your build process, or you can define the assembly itself as an outside processing item. The outside processing item on your requisition or purchase order, is received in your purchase order receipts. You can define supplier-sourced components by selecting the Supplier supply type on your bills of material. Supplier components are not transacted or backflushed.

Outside Processing Resources

Automatic Requisition Generation

Automatic Requisition Generation

Work in Process automatically generates a purchase requisition for outside processing operations, unless you specify that they are created manually. An outside processing operation is an operation that contains an outside resource linked to an outside processing item. The timing of the creation of the purchase requisition is based on the setting of the WIP parameter Requisition Creation Time:

At Job/Schedule Releasea purchase requisition is created for all outside processing operations on a job or schedule when you release the job or schedule.

At Operationa purchase requisition is created when you move into the queue intraoperation step of an outside processing operation. You then use Purchasing's Autocreate feature to convert these requisitions to purchase orders.

The Requisition Import process automatically runs when using PO Move and PO Receipt resource types, but only PO Move initiates the workflow.

Instructor NoteRefer participants to the Oracle Purchasing Users Guide for information on requisitions, purchase orders, and the Requisition Import process. A detailed description of Outside Processing is discussed in the Special Topics lesson.Refer to Practice Viewing and Creating Material Transactions [LAB4315Y]

Agenda

Summary

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Updating Material Requirements

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