What to consider when using Discrete
Manufacturing in a Process Manufacturing Plant
Disclaimer:
The following information is based on my experience as a consultant using
Oracle Applications in both Discrete...
 Do I have co- or by- product from my
process?
 Do I need to have a separate cost for
each lot?
 Do I need to manage su...
Ingredient
Ingredient

OPM
Ingredient

Batch

Different Terms, almost the same meaning
 Discrete uses components, Bills o...
CoProduct

ByProduct
Main
Product

 Dealing with co- or by-products
 OPM has no problem with getting multiple
products o...
Lot 1 $
Lot 2 $

 Separate cost by lot
 OPM supports this very well
 Discrete does not support this need

If you have t...
Sublot
3

Sublot

Master
Lot

1

 Management of Sub Lots
 OPM supports this need
 Discrete supports Parent/Child lots

...
Recipe 3
Recipe 2
Recipe 1
 Ingredient size varies with batch size
 OPM supports many formula variations
 Discrete can ...
Bottom Line:
This presentation was intended to show you some of the issues to consider. It
is not a complete assessment of...
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Yes, you can use discrete manufacturing

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This presentation shows what to consider when deciding if to use OPM or Discrete. What Discrete can offer you may make you think twice.

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Yes, you can use discrete manufacturing

  1. 1. What to consider when using Discrete Manufacturing in a Process Manufacturing Plant
  2. 2. Disclaimer: The following information is based on my experience as a consultant using Oracle Applications in both Discrete and Process manufacturing environments. If you are in a process environment using OPM, it is not a good idea to convert to discrete. If you are considering the use of OPM or discrete for your organization or a new facility, then the information in the following presentation could be very useful. While the information provided in the presentation may present a stronger case for discrete, it is your decision not mine.
  3. 3.  Do I have co- or by- product from my process?  Do I need to have a separate cost for each lot?  Do I need to manage sub lot records?  Do I need to vary my ingredients based on the output size? If your answer YES to any of these questions, you are in a process environment. You may not be able to use discrete but lets not rule it out until you see all the information.
  4. 4. Ingredient Ingredient OPM Ingredient Batch Different Terms, almost the same meaning  Discrete uses components, Bills of Materials Routings and Work in Process jobs.  Oracle Process Manufacturing uses items, formulas, recipes and batches  Components = Items  BOMs = Formulas  Routings = Recipes Components  Jobs = Batches Bills of Material Keep in mind this is not a presentation on how the two manufacturing systems work. It is just information to help you decide which to consider. Assemblies Finished Good Discrete
  5. 5. CoProduct ByProduct Main Product  Dealing with co- or by-products  OPM has no problem with getting multiple products out of a batch  Discrete has the ability to get multiple products out of a batch by using the WIP negative component issue If co or by-products are an important part of your product and process, OPM offers better functionality but discrete will work.
  6. 6. Lot 1 $ Lot 2 $  Separate cost by lot  OPM supports this very well  Discrete does not support this need If you have to have separate cost by lot, you must use OPM. You could use FIFO costing (layered) costing in Discrete and it would give you close to an actual cost by job but not a separate cost by lot.
  7. 7. Sublot 3 Sublot Master Lot 1  Management of Sub Lots  OPM supports this need  Discrete supports Parent/Child lots Sublot 2 Discrete doesn’t offer sublot functionality but it does offer complete traceability of parent to child lot genealogy. Unless sublots are critical to your business, you can use discrete.
  8. 8. Recipe 3 Recipe 2 Recipe 1  Ingredient size varies with batch size  OPM supports many formula variations  Discrete can support alternate bills This is a critical issue. If you have product where the ingredients required varies with respect to the output (the input is non-linear from the output), then OPM may be a better option. With discrete, you can have a bill for a gallon of product and scale it up to any number of gallons as long as the scale is linear.
  9. 9. Bottom Line: This presentation was intended to show you some of the issues to consider. It is not a complete assessment of OPM versus Discrete capabilities. I have shown the high points which should get you started on the road to your decision. It is now your turn to explore and test. It is a simple matter to model both applications. This is where a Vision test instance comes in quite handy. Since both types of applications exist in the instance, you can load your data and test both. If you have questions, my contact information can be found at www.larrysherrod.com

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