ATO PTO Basics in Oracle Applications

DARC Consulting

Assemble-To-Order (ATO) / Pick-To-Order (PTO) Basics in Oracle Applications

Arne S. Rosen, CPIM, CIRMSenior Principal Consultant

Summer 2003 NCOAUG Training Day

Friday, August 15th

Harper College, Palatine, IL

DARC Consulting

Agenda

Definitions Setup Business Flow

– ATO Configuration– ATO Item – PTO Configuration– PTO Item– On-Hand ATO Configuration– Preconfigured Items

DARC Consulting

Agenda (cont.)

Configuration– Costing– Pricing– Description– Routings– Weight and Volume

Parameters Profiles 11.5.9 References

DARC Consulting

Model (Model Item)

An item whose bill of material lists option classes and options available when you place an order for the model item.

APICS definition is a Super Bill of Material

DARC Consulting

Option Class

A group of related option items. An option class is orderable only within a model. An option class can also contain included (standard) items.

An Option Class is a list of choices

DARC Consulting

Option

An optional item component in an option class or model bill of material.

DARC Consulting

Assemble–to–Order (ATO)

An environment where you open a final assembly order to assemble items that customers order.

Assemble–to–order is also an item attribute that you can apply to standard, model, and option class items.

DARC Consulting

Assemble–to–Order (ATO) Model

A configuration you make in response to a customer order that includes optional items.

DARC Consulting

Assemble–to–Order (ATO) Item

An item you make in response to a customer order.

DARC Consulting

Pick–to–Order (PTO)

A configure–to–order environment where the options and included items in a model appear on pick slips and order pickers gather the options when they ship the order.

Alternative to manufacturing the parent item on a work order and then shipping it.

Pick–to–order is also an item attribute that you can apply to standard, model, and option class items.

DARC Consulting

Pick–to–Order (PTO) Model

An item with an associated bill of material with optional and included items.

At order entry, the configurator is used to choose the optional items to include for the order.

The order picker gets a detailed list of the chosen options and included items to gather as separately finished items just before the order is shipped.

DARC Consulting

Pick–to–Order (PTO) Item (Kit)

A predefined configuration order pickers gather as separately finished included items just before they ship the order. Also known as a kit.

A kit is an item that has a standard list of components (or included items) you ship when you process an order for that item.

A kit is similar to a pick–to–order model because it has shippable components, but it has no options and you order it directly by its item number, not using the configuration selection screen.

DARC Consulting

Configured, ATO, PTO Items

Configured items are Assemble to Order (ATO) items that were created from a model (have a base model).

ATO items have the Assemble to Order attribute set to Yes.

Pick to Order (PTO) items have the Pick Component attribute set to Yes.

DARC Consulting

Hybrids

Pick–to–Order models with optional Assemble–to–Order items

Pick–to–Order model containing Assemble–to–Order model

Multi–Level Assemble–to–Order Model (Multi–Level ATO Configuration)

DARC Consulting

BOM Item Type

DARC Consulting

Base Model

DARC Consulting

Assemble-to-Order

DARC Consulting

Pick Components (Pick-to-Order)

DARC Consulting

Ship Model Complete

DARC Consulting

Seeded Templates

DARC Consulting

ATO

Item Type BOMItem Type

Base Model

Assemble to Order

Pick Components

ATO Model Model Yes No

ATO Option Class

Option Class

Yes No

ATO Item Standard Yes No

Configured Item

Standard Base Model

Yes No

DARC Consulting

PTO

Item Type BOMItem Type

Base Model

Assemble to Order

Pick Components

PTO Model Model No Yes

PTO Option Class

Option Class

No Yes

PTO Item Standard No Yes

Note: There is no configured item in the PTO process.

DARC Consulting

Order Management Parameters: Item Validation Organization

DARC Consulting

Order Management Parameters: Item Validation Organization

When you enter orders for models, kits, and assemblies in Oracle Order Management, you must define all bills of material in your OM: Item Validation Organization

Using common bills of material, you

can share bills of material that exist in your manufacturing organizations with your item validation organization.

DARC Consulting

ATO Model Bill of Material

DARC Consulting

PTO Model Bill of Material

DARC Consulting

Four Implicit Configuration Rules

Optional

Mutually Exclusive

Min / Max

Quantity Cascade

DARC Consulting

Four Implicit Configuration Rules

DARC Consulting

Shipping

DARC Consulting

ATO Configuration Business Flow

DARC Consulting

AutoCreate Configuration Items

DARC Consulting

ATO Configuration Business Flow

DARC Consulting

ATO Configuration Pick Pack Ship

Pick Slip

Packing Slip

Bill of Lading

Invoice

ATO Configuration

ATO Item

ATO Item

ATO Item

Any Invoice Enabled item EXCEPT the ATO Item

DARC Consulting

ATO Item Business Flow

DARC Consulting

ATO Item Pick Pack Ship

DARC Consulting

PTO Configuration Business Flow

DARC Consulting

PTO Configuration Pick Pack Ship

DARC Consulting

PTO Item Business Flow

DARC Consulting

PTO Item Pick Pack Ship

DARC Consulting

Pick Pack Ship Summary

DARC Consulting

On-Hand ATO Configuration Business Flow

DARC Consulting

Preconfigured Items

DARC Consulting

Configuration Costing

A cost rollup is performed for each new configuration to establish accurate standard costs that are posted to cost of goods sold.

DARC Consulting

Configuration Pricing

Price is rolled up from all the items that blow back on the order.

All items must be on the price list even if the price is zero

DARC Consulting

Configured (Item) Description

A dynamically generated item description derived from the catalog descriptive elements of the configured bill of material components.

DARC Consulting

Configured Description Steps

Create Configured Description Item Catalog Group for the ATO Model

Assign Item Catalog Group to Option Class Items

Define Bills Elements for the ATO Model and Option Class Items

DARC Consulting

Create Configured Description Item Catalog Group

Decide what descriptive elements to include in the configured item description– ATO Model and Option Class

Descriptive Element Names must match

– Prefix and/or Suffix can be hard coded into the catalog

– Descriptive Element Names must be unique across Option Classes if they have different values

DARC Consulting

Create Configured Description Item Catalog Group

DARC Consulting

INV: Use item catalog name in the item description

No : Use Item Catalog Group Description

Yes : Use Item Catalog Group Name

DARC Consulting

Assign Item Catalog Group to Option Class Items

This should be the same Item Catalog Group Assigned to all the standard items in the Option Class

DARC Consulting

Define Bills Elements

This needs to be done for the ATO Model and the Option Classes

Only Pick the Descriptive Elements necessary to drive the Configured Item Description

DARC Consulting

Define Bills Elements

DARC Consulting

Define Bills Elements - Option Classes

DARC Consulting

Define Bills Elements - ATO Model

DARC Consulting

Configured Descriptions

DARC Consulting

Configured Routings

DARC Consulting

Configured Weight and Volume

AutoCreate Configuration Items calculates the weight and volume for the configured item, by rolling up the weight and volume of the components in the OM validation organization.

Multi-level configurations are supported

If weight and volume units of measure are not the same unit of measure conversions are required

DARC Consulting

Configured Weight and Volume

DARC Consulting

Bills of Materials ParametersInactive Status

DARC Consulting

Deactivate Configuration Items

DARC Consulting

Bills of Materials Parameters Numbering Method

DARC Consulting

Bills of Materials Profile OptionsConfiguration Item Delimiter

DARC Consulting

Bills of Materials Profile OptionsConfiguration Item Type

DARC Consulting

Bills of Materials Profile OptionsInherit option class operation sequence #

DARC Consulting

Bills of Materials Profile OptionsMatch to Existing Configurations

DARC Consulting

Bills of Materials Profile OptionsPerform Lead time calculations

DARC Consulting

Bills of Materials Profile OptionsUse Custom Match Function

DARC Consulting

Bills of Materials Profile OptionsAutomatic Reservation

DARC Consulting

Bills of Materials Profile OptionsConfigurator URL of UI Manager

DARC Consulting

Work in Process ParametersRespond to Sales Order Changes

DARC Consulting

What’s new in 11.5.9

Multi Level Auto Create Supply

Supply to Order Workbench

Enhanced Costing for Configurations

Improved Configuration BOM structure

DARC Consulting

References

Oracle Configure to Order Implementation Manual

Oracle Bills of Material Users Guide

Oracle Inventory Users Guide

Oracle Order Management Users Guide

Oracle Order Management Suite Implementation Manual

Oracle Work in Process Users Guide

DARC Consulting

QUESTIONS ?

Thank you for attending!

Arne S. Rosen, CPIM, CIRMDARC Corporation125 S. Wacker Drive, Suite 2550Chicago, IL 60606

[email protected]

ATO PTO Basics in Oracle Applications

Documents

Transcript of ATO PTO Basics in Oracle Applications