R12 Business Case Process Manufacturing

R12 Readiness Business Case Process Manufacturing Presented by Anil Srinivas Vaddadi ( [email_address] [email_address] anil.lets.do.it@gmail.com)

Agenda Benefits Business Case Business Scenario Concept Elaboration 1 2 3 4 Centralized Inventory

Concepts Overview Entities in Process Inventory Entities in Discrete Inventory Centralized Oracle Inventory Variable Ingredients, Co-products, Potency, shelf-life Makes “Stuff” UOM are Material Specific grades Components, End Item, ECN’s Makes “THINGS” UOM are Each & Piece Serial Numbers

Change in Process Manufacturing One Inventory Module will support both Process and Discrete manufacturing. OPM Inventory Order Management Procurement ASCP OPM Product Dev. Oracle Inventory Discrete Inventory OPM Production OPM Costing OPM Quality WIP & BOM Quality Costing

Agenda Setup, Migration and Processes Benefits Business Case Business Scenario Concept Elaboration 1 2 3 4

Common Inventory Setups

GMI Profiles

All GMI profiles are obsolete

Replaced by profiles or flags in Oracle Inventory

GMI Profile Replaced by Oracle Inventory GMI: Allow Negative Inventory Flag on inventory organization parameters GMI: Retain Shipped Lot Status Flag on inventory organization parameters GMI: RMA Lot Restriction Receiving Option set up in Purchasing Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP

Common Inventory Setups Inventory Org S.O.B Legal Entity Locator Subinventory O.U. Master Org OPM Warehouse Locator Plant or Lab OPM Organizations OPM Company Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP

Allows you to convert warehouses to sub-inventories Navigation: OPM System Administration Form: Convergence Migration Setup Common Inventory Setups Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP

Common Inventory Setups Track and price items in two units of measure Set Process Manufacturing attributes by Organization Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP Items Lots Picking Rules Lots specific conversion Material Status Child Lots

Common Inventory Setups Establish lot control for an item Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP Items Lots Picking Rules Lots specific conversion Material Status Child Lots

Common Inventory Setups Child lot designation replaces sub-lots Items Lots Picking Rules Lots specific conversion Material Status Child Lots Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP

Common Inventory Setups Other flags control use of inventory Status prevents these transactions Items Lots Picking Rules Lots specific conversion Material Status Child Lots Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP

Common Inventory Setups Additional restrictions for Process Items Lots Picking Rules Lots specific conversion Material Status Child Lots Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP

Common Inventory Setups Define inventory organizations Migrate existing data Verify and enter Oracle Inventory setup Set key profile options SETUP View history of UOM changes Items Lots Picking Rules Lots specific conversion Material Status Child Lots

Process Flow

The stock manipulations are done during a sales order, purchase order or batch creation or during a supply chain planning.

Below are the processes that have incorporated the changes to reflect the centralized inventory concept.

Reserve

Reserve inventory for an order or batch

Transact

Miscellaneous transactions

Move Orders

Grade and status changes

Query

Material Workbench Inquiry

Lot Genealogy

Perform other inventory functions

WMS: Manage your warehouse

MSCA: Implement mobile applications

Automated process Sales orders, Purchase orders Production Batches PROCESS Run Supply Chain Planning Reserve Inventory Transact Inventory Query and manage material Perform other inventory functions Manage warehouse User mobile applications

Process Flow Track and price items in two units of measure Automated process Sales orders, Purchase orders Production Batches PROCESS Run Supply Chain Planning Reserve Inventory Transact Inventory Query and manage material Perform other inventory functions Manage warehouse User mobile applications

Process Flow Status: Statuses can be changed bases on the transaction types and other attributes. Grades : Specific grades of raw materials are ordered from an approved list of vendors and the lots they receive are usually stable Automated process Sales orders, Purchase orders Production Batches PROCESS Run Supply Chain Planning Reserve Inventory Transact Inventory Query and manage material Perform other inventory functions Manage warehouse User mobile applications

Process Flow Automated process Sales orders, Purchase orders Production Batches PROCESS Run Supply Chain Planning Reserve Inventory Transact Inventory Query and manage material Perform other inventory functions Manage warehouse User mobile applications

Process Flow

Perform other inventory functions

Maintain accurate real-time information

Physical inventory

Cycle counting

Manage inventory levels

Automated replenishment

Kanban management

Transfers between facilities

Automated process Sales orders, Purchase orders Production Batches PROCESS Run Supply Chain Planning Reserve Inventory Transact Inventory Query and manage material Perform other inventory functions Manage warehouse User mobile applications

Process Flow RTVs Orders Transfers RMAs Purchases Transfers Tailorable Rules & Workflow Process Global Visibility RF Support Directed Putaway Inspect Receive Ship Pack Directed Pick Cost Assemble WIP Issues Transfer Count Move Label Seamless Integration Replenish Automated process Manage Warehouse Sales orders, Purchase orders Production Batches PROCESS Run Supply Chain Planning Reserve Inventory Transact Inventory Query and manage material Perform other inventory functions Manage warehouse User mobile applications Planning Manufacturing Fulfillment Purchasing

Process Flow Application / Data Base RF Base Station SQL Net Telnet Over TCP/IP RF Device LAN or WAN Built-in RF Middleware Moves, Issues, Returns, Reservations, … Issues, Returns, Backflush, Completions… Misc. Transactions, Transfers, Counts,.. Pick, Confirm, Ship, Confirm, Print, … Direct, Std, Inspect, Cross-Dock, Print,.. Mobile Process Mfg Process Operations Mobile Inventory Mobile Shipping Mobile Receiving Built-in Mobile User Interface Mobile Transaction Server Automated process Sales orders, Purchase orders Production Batches PROCESS Run Supply Chain Planning Reserve Inventory Transact Inventory Query and manage material Perform other inventory functions Manage warehouse User mobile applications

Agenda Business case study Benefits Business Case Business Scenario Concept Elaboration 1 2 3 4

Business Case scenario Hybrid manufacturers can operate with just one item master and inventory system Scenario: Consider an aluminum manufacturer that needs process industry functionality to cast aluminum. However, once the aluminum is produced it becomes a discrete product. Grind Digest Calcinine Process Inventory Iron, Silicon, titanium (Ingredients) equals Aluminum Machined into variety Of products Process Manufacturing Discrete Manufacturing Pipes, Tubes, Panels, Auto equipment Discrete Inventory

Business Case scenario In Release 12 , Discrete and Process attributes are now contained in one item definition, and the inventory system now supports process requirements, on hand balances of inventory can now be managed and viewed centrally. To help support this, the new solution has features like dual units of measure, sub-lot control, hold, and netting logic Grind Digest Calcinine Process Inventory Discrete Inventory Iron, Silicon, titanium (Ingredients) equals Aluminum Machined into variety Of products Pipes, Tubes, Panels, Auto equipment Process Manufacturing Discrete Manufacturing

Agenda Benefits Benefits Business Case Business Scenario Concept Elaboration 1 2 3 4

Benefits

Reduce …

Redundant data and maintenance

Increase …

Inventory visibility

Improve …

Supply chain integration

Process …

Process manufacturers now can engage in Available to Promise (ATP)

Keeping in mind the quality process, as Inventory in this status is on reserve.

The new solution provides for better status attributes surrounding holds, and it prohibits a warehouse location that has been discovered to have erroneous inventory balances (an incorrect net inventory calculation) from being included in the Supply Chain Planning application’s available to promise calculations.

Thank You. Question and Answers