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Oracle Process ManufacturingOracle Process Manufacturing--
OverviewOverview
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WHAT ISWHAT IS MANUFACTURING?MANUFACTURING?
PROCESS OF CONVERTING RAW MATERIALS /
COMPONENTS / ANY PARTS INTO A FORM / SHAPE
OF PRODUCT ( FINISHED PRODUCT )
......THAT MEET REQUIRED EXPECTATIONS AND
SPECIFICATIONS
.........USING MAN POWER OR MACHINERIES OR
COMBINATION OF BOTH....................
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Types ofTypes of MANUFACTURING?MANUFACTURING?
DISCRETE MANUFACTURING
FLOW MANUFACTURING
PROCESS MANUFACTURING
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5 Ms of5 Ms ofMANUFACTURING?MANUFACTURING?
MONEY (COST)
MATERIAL (FORMULA)
MAN POWER (RESOURCE)
MACHINE (RESOURCE)
METHOD (OPERATION,ROUTING)
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DISCRETEDISCRETE MANUFACTURINGMANUFACTURING
DESCRIBES MANUFACTURING OF DISTINCT ITEMS ( ITEMS YOU CAN EASILY
COUNT, TOUCH, SEE )
NORMALLY A PRODUCT THAT IS "BUILT UP" FROM COMPONENTS OR SUB-
ASSEMBLIES
EXAMPLES INCLUDEEXAMPLES INCLUDE :
AUTOMOBILE MANUFACTURING , COMPUTER AND ELECTRONIC PRODUCTS, INDUSTRIAL
AND ELECTRICAL EQUIPMENT, MEDICAL EQUIPMENT AND SUPPLIES, FABRICATED METAL,
FURNITURE, RECYCLING, AND MISCELLANEOUS MANUFACTURING.
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PROCESSPROCESS MANUFACTURINGMANUFACTURING
PROCESS MANUFACTURING IS DISTINGUISHED BY A PRODUCTION APPROACH THAT HAS MINIMAL
INTERRUPTIONS IN ACTUAL PROCESSING IN ANY ONE PRODUCTION RUN, OR BETWEEN PRODUCTIONRUNS OF SIMILAR PRODUCTS
THIS APPROACH PRODUCES MULTIPLE UNIQUE PRODUCTS IN RELATIVELY SMALL BATCHES FLOWING
THROUGH DIFFERENT PRODUCTION OPERATIONS THROUGHOUT THE FACTORY.
PROCESS MANUFACTURING WILL TYPICALLY HAVE SEVERAL PROCESSES LINKED TOGETHER IN THE
PRODUCTION SYSTEM
PROCESSES MAY BREAK DOWN RAW MATERIALS, REFINE MATERIALS INTO HIGHER QUALITY GOODS
EXAMPLES INCLUDEEXAMPLES INCLUDE : CHEMICAL MANUFACTURING, DIESEL PRODUCTION,
PHARMACEUTICAL INDUSTRIES, PROCESSED FOODS, GASOLINE
PRODUCTION, BEVERAGE MANUFACTURING
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PROCESS & DISCRETEPROCESS & DISCRETE MANUFACTURINGMANUFACTURING
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ORACLEORACLEPROCESS MANUFACTURING (OPM)PROCESS MANUFACTURING (OPM)
MAIN SUB-MODULES IN OPM:
PRODUCTION BATCHES AND TRANSACTIONS
QUALITY CONTROL
OPM FINANCIALS (COSTING , SLA)
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Describing the Process Flow
Prerequisite setup
Formula setup
Formula creation
Routing setup
Operation classes
Routing classes
Resources
Plant resources
ActivitiesCreate operations
Create routings
Formula classes
Recipe creation
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Process Engineer Setup Generic Resources
Process Engineer Setup Plant Resources
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Entering Operation Details
Packaging
Labor
Setup Mixing
Production equipment
Operation
Activity1.2.3....
Resource
XX Production Operation
+
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Routing Hierarchy
Routing
Activity1.. Activityn
Resource1.. Resourcen
Operation1.. Operationn
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Process Engineer Setup Routings
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Formula
Formula contains details of Ingredients, Products and By-products with
their associated quantities and processing instructions.
Use of formula.
Production Batches are based on Formulas.
Formulas are also used for Planning, Managing costs & Scheduling.
Ingredients -Raw Materials used in manufacturing .
Product - Finished Good produced using Raw Materials.
By-product - Product Produced during manufacturing process ofa product which cost will not be considered.Depending on type By-product can be classified as
Rework,sample,waste or Yield.
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Formula Details
FormulatorFormulas Products
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Recipe Details
FormulatorRecipes
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Recipe Hierarchy
ProcessingInstructions
Formula
Ingredient Product Byproduct
Recipe
Routing
Activity1.. Activityn
Resource1.. Resourcen
Operation1.. Operationn
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PRODUCTION BATCH CREATIONProduction SupervisorBatch Details
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PRODUCTION BATCH CREATIONProduction SupervisorBatch Details
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PRODUCTION BATCH MATERIAL TRANSACTIONSProduction SupervisorBatch Details-->Batch Completion
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OPM Cost Management
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Cost Types
Standard Cost
Actual Cost Lot Cost
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Standard Costing
Under standard costing, predetermined costs are used for valuing
inventory and for charging material, resource, overhead, period close,
and job close and schedule complete transactions. Differences between
standard costs and actual costs are recorded as variances.
Use standard costing for performance measurement and cost control
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Actual Costing
OPM captures the actual costs from business transactions.
Costs of raw materials are captured based on the raw material purchase
order receipts and or invoices.
Costs of products are captured based on the actual quantities of the
raw materials consumed and the resource usage or conversion cost
recorded in the production batch.
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Lot Costing
Lot costing, also known as Specific Identification Type costing lets yo
calculate and store costs at the lot level. That is, each lot has a unique cosassociated with it and it retains this cost until the entire lot is consume
The lot costs are computed on a perpetual basis.
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Period Moving Average Cost (PMAC)
Received
quantity
((Previous
period
inventory
balance)) ++
GL expense
component
amount for
current period
Previous
period
inventory
balance
++
==Component costraw materials
Previous
period
GL expense
component cost
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Cost Types
Define Cost TypesNavigation>Financial>Cost Management>Setup>Cost Methods
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Cost CalendarsDefine Cost Calendars
Navigation>Financial>Cost Management>Setup>Calendars
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Cost Components ClassDefine Component Class
Navigation>Financial>Cost Management>Setup>Components Class
The Cost Components are classified into 5 categories.
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Resource CostDefine Resource Cost
Navigation>Financial>Cost Management>Resource Cost
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Viewing Item Cost List
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Sub-ledger Accounting (SLA)
Subledger accounting is an intermediate step between subledger
Products and the general ledger.
Each Transaction that requires accounting is represented by a
complete and balanced subledger entry, stored in a common data
model
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OPM-SLA Flow
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SLA Hierarchy...
Events are logical groupings of Event Types
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SLA Hierarchy...
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SLA Hierarchy
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Update the Account Derivation Rule conditions.
Ex: Add Item/Item Class/Organizations
Validate the Application Accounting Definition
Run OPM Accounting Pre-Processor
Run Create Accounting in Draft mode
Check Create Accounting report and Journal
Entries report
Run Create Accounting in Final mode to create GL
accounting entries
Run OPM Accounting Pre-Processor
SLA Flow
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Create Accounting
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SLA Report
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SLA Report
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SLA Report
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SLA Report
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