OAUG Connection Point 2004

An Oracle WMS Implementation in a Manufacturing Environment

Linda LeslieMotorola, Inc.

Automotive Communications and Electronics Systems Group

Learning ObjectivesLearning Objectives

• As a result of this presentation, you will learn about:– 11.5.9 WMS functionality in a manufacturing

environment• Cost implications• Over picking • Customizations

– How supplier consigned inventory works in 11.5.9

Speaker’s QualificationsSpeaker’s Qualifications

• Linda Leslie is a Business Systems Analyst at Motorola, Inc., Automotive Communications and Electronic Systems Group.

• Linda Leslie is the Cost Management Sub-Chair of the OAUG Discrete Manufacturing SIG

• Linda Leslie has presented at OAUG on supplier consignment and completing inventory close in two days

Presentation Agenda Presentation Agenda

• Overview • 11i WMS implementation project objectives• WMS 11.5.9 set up • Challenges using WMS• Using Rules and Strategies• Customizations• Supplier Consignment • Q&A

Motorola, Inc. ACESMotorola, Inc. ACES

• Produces electronic engine and body controls and sensors for automotive applications

• Global manufacturing facilities• Utilizes flow through manufacturing lines• Some facilities produce 24 hours per day, 7

days a week

System OverviewSystem Overview

• 300+ worldwide users of Oracle Manufacturing applications

• Data base– 80,000+ items– Indented bills of materials

• Average of 8 levels– Common components

Current SystemCurrent System

• 10.7 SC Implemented January, 1999• Separate SID’s• Locally installed• Manufacturing modules

– Inventory– Engineering and Bills of Material– MRP and WIP– Purchasing

11i Project Objectives11i Project Objectives

• Replace 10.7 manufacturing• Re-implementation• One global instance• Implement WMS for raw material • Replace custom supplier consigned solution

WMS Set UpWMS Set Up

• Engaged Oracle Consulting• Changes after enabling WMS

– Cost Groups– Prespecified locator control – LPN controlled

Cost GroupsCost Groups

• Associate account information to subinventories

• Cost Group assignment rules• Original cost group retained• Cost Group transfer• Use of API and open interface• Inventory reporting

API or MTL InterfaceAPI or MTL Interface

• Three cost group fields are added – cost_group_id– org_group_id– transfer_cost_group_id

• Populate each field with the cost_group_idof the destination subinventory

Inventory ReportingInventory Reporting

• Currently post GL balances to different inventory accounts– Raw Material– Non-nettable inventory– Work in process– Finished Goods

• Resulted in co-mingling errors• Will use only two cost groups with WMS

– Raw Material– Finished Goods

Over PickingOver Picking

• Move order requests generate picks• Only quantity on move order is transacted• Current business processes result in over

picking requested quantities• “Over picking lite”

WMS Rule TypesWMS Rule Types

• Five types of rules– Picking– Put away– Cost group– Label type– Task type assignment

WMS RulesWMS Rules

• Always use the Find window to query rules• Do not check Common to all orgs

– Task Type Assignment rules– Cost Group rules

• Used for both raw materials and finished goods

• Can run simulation

Rules SetupRules Setup

• Warehouse Manager:Setup:Warehouse Configuration:Rules:Warehouse Execution: Rules

Rules SetupRules Setup

Strategy SetupStrategy Setup

• Warehouse Manager:Setup:Warehouse Configuration:Rules:Warehouse Execution: Strategies

Rules WorkbenchRules Workbench

• Add, update or delete strategies and rules• Strategy Assignments

– Org specific– Defaults to current org

• Sequence controls– Order in which strategy assignments will be

evaluated by Rules Engine

Rules WorkbenchRules Workbench

• Warehouse Manager:Setup:Warehouse Configuration:Rules:Warehouse Execution: Rules Workbench

Receiving Process CustomizationReceiving Process Customization

• Receipt routing• Skip lot functionality• Use of Sourcing Rule descriptive flexfields• Inspection Required

Handheld ConfigurationHandheld Configuration

• Prompt changes• Receive by Item

– Parse PO number modification

Current Supplier Consignment OverviewCurrent Supplier Consignment Overview

• Utilizing custom supplier consigned solution in 10.7

• Miscellaneous receipt on physical receipt of goods– Inventory is costed

• PO Receipt on change in ownership• Miscellaneous issue • 24% of raw material inventory value is on

supplier consignment

Converting Consigned QuantitiesConverting Consigned Quantities

• Received solution from Oracle Consulting– Create purchase orders– Create Approved Supplier Lists– Convert on hand quantities through Receiving

Interface table

Consignment SetupConsignment Setup

• Create Blanket Purchase Agreement– Operating unit shared across inventory orgs

• Create Approved Supplier List– Add blanket purchase agreement number– Check Consigned from Supplier

• Create Standard Purchase Order• Define Consigned/VMI Consumption

Consigned/VMI Consumption SetupConsigned/VMI Consumption Setup

• Inventory:Setup:Transactions: Consigned/VMI Consumption

Supplier Consigned ProcessSupplier Consigned Process

• Supplier ships against standard purchase order– PO Receipt transaction

• Put away– Owning party on Material Workbench

• Consume material– Transfer to Regular transaction type– Ownership Transfer Transaction Action– PO Release against blanket agreement

Supplier CommunicationSupplier Communication

• Motorola Schedule Sharing™ System

Supplier CommunicationSupplier Communication

Supplier CommunicationSupplier Communication

Payment to SupplierPayment to Supplier

• Evaluated Receipt Settlement (ERS)– Requires packing slip number from standard

purchase order receipt• Payment generated from blanket release

– Price on both blanket agreement and standard PO

SummarySummary

• WMS should meet business needs– Some customizations

• Supplier consigned inventory has been tested– May need some reporting customizations

• Positioned for future process improvements– Min/max planning

Q & A

Thank You!