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Introduction

This paper describes the work steps required to satisfy customer orders using Oracle ATO functionality. It will support policy decisions with regard to cost accounting and written procedures for the tasks involved.

The step descriptions map to Diagram 1, attached. All steps are identified by a two or three character subsystem identifier and a number. Because the work processes do not occur in strict order, the step numbers only roughly indicate the time sequence of the job steps.

Work Flow Steps

Step PLN

Name Forecast

Description Enter a sales forecast by product

Oracle Menu Processes Enter Forecast

Key data items Inventory Item Customer Number

-1 OE Sales Order -1 OE -2 OE -3 OE -4 OE -5 Sales Order Lines

Create a sales order header

Sales Order Sales order number entry Customer PO Number Sales Order Sales Order line entry number Item description (does not tie out to anything)

Create a sales order line

OE -6

OE -7

Does not require an item number. May be a servicesNon-BOM Sales Order type item, such as training or Item[1] entry engineering, or a manufactured item. Manufactured item for which Sales Order BOM Item[2] there is a standard Bill of entry Materials. Choose from among the options specified for the BOM Sales Order Pick Options in step BOM entry -4. Confirm that the order is real and must be satisfied. Booking the order allows the Sales Order Book Order consumption of the line item entry quantities from the inventory item forecasts. Build the item Pick a shippable item from the Pick Release completion subinventory to be shipped

Inventory Item Number Inventory Item Number BOM Option IDs

Sales Order number

Sales Order number, Sales Order line Sales Order number,

OE -8 OE -9 OE -10 OE -11 OE -12

Ship Confirm

Confirm that the item has been shipped.[3]

Sales Order number, Sales Order line Customer Number Sales Order Sales Order Line Inventory Item ID Sales Order Sales Order Line Sales Order Assembly ID (= Inventory Item ID) Operation Sequence Operation Operation Sequence Operation Resources

Initiate the concurrent process Receivables to send billing data to Interface Accounts Receivable. Inventory Interface Complete Sales Order Line Complete Order The inventory interface sends a transaction to relieve inventory of the shipped item. Indicate that the requirement has been satisfied.

Confirm that the sales order has been completed. Create a base bill of materials, BOM Model BOMS the assemblies that are -1 always present in an item.[4] Specify the manufacturing routings to assemble the BOM Routing component items in the BOM -2 into the completed assembly or product. Queues BOM Standard -3 Times Establish standards to budget the time and resources required in each routing step.

Create option bills of materials, indicating options BOM Assembly ID (= Option BOMS that either may or must be -4 Inventory Item ID) specified with each order for the orderable item. Expand the options to create a fully configured order item. Oracle creates a unique Autocreate BOM Autocreate Inventory Item just for the ATO ATO Sales Order Number -5 BOM Options line item, with a top level Bill Configuration of Materials specific to the ordered, configured item. It is identified by an asterisk infix. Demand interface carries order demand over to Demand conc manufacturing as unfilled Interface requirements. Also allow forecast consumption to occur. Allows creation of unique Manufacturing ATO configuration in step conc Releases BOM -5. Load Master Load demand into a named MRP Demand Master Demand Schedule. Schedule name -1 Schedule .[5] Demand does not necessarily equate to production. The Load Master

Load Master user may choose to use a MRP Production Master Production Schedule -2 Schedule that does not include plans to (optional) produce all items for which there is demand. The Material Requirements Planning process explodes the bills of materials for all items included in the demand or production schedule to determine a gross requirement. It then subtracts out materials on hand, on order and in production to determine net material requirements.

Schedule name

Launch MRP processing includes a MRP Material time dimension, using -3 Requirements procurement and Planning manufacturing lead times to determine how to schedule activities to meet the delivery dates given on sales orders.

MRP creates suggested Shop Work Orders (SWOs, or WOs) to create the assembly items needed to satisfy demand. It creates suggested requisitions for purchased items. Review the discrete jobs Planner's created by MRP to satisfy MRP Workbench Planner's requirements for -4 RecommendaWorkbench manufactured assemblies and tions purchased parts. Release requisitions to MRP Release Purchasing. Requisitions are -5 Requisitions for net amounts of materials required. [6] Release recommended work Implement orders to production. Oracle MRP Unreleased functionality allows the user to -6 Work Orders add a WIP accounting class.[7] Define Non- Put the group of GL accounts Define WIP Std WIP to be used on a non-standard Accounting -1 Accounting job into its own accounting Class Class class. Create a work order. This WIP Create NonDefine does not require an item -2 Standard WO Discrete Job

Inventory Item ID

Inventory Item ID Requisition Number Inventory Item ID Discrete Job Name WIP Accounting Class WIP Accounting Class GL Account Discrete Job Name WIP Accounting Class

-2

Standard WO

WIP -3

number. Set the budget for a nonstandard job using a sort of standard-cost mechanism. The Op Code brings up standard resource usage defined for the Standard Copy Operation. In this case the Routings and Standard Operation names all Create non-touch resources, each Budgets with a quantity of zero. Establish the budget by putting resource usage to something other than zero for the types of personnel to be used. Transact the Work Order. Specifically: Transact to last Step Push any materials required by the work order Put the job in the last specified Operation Sequence.

Discrete Job

WIP Accounting Class

Define Discrete Job Name Discrete Job - Operations Op Code & Resources Resource Name Zones

WIP Material Transaction

WIP -4

Discrete Job Name Op Seq

Shop Floor Transactions

WIP -5 WIP -6

Complete Put the job into completion Non-Std WO status. Close Work Order Close the job. A custom job that 1. Takes the project (product line) segment from the Sales Order Account attribute within the Material System Items record for the item being assembled on a discrete work order, and 2. Uses the project (product line) as an argument to search for a matching WIP Accounting Class name, then 3. Inserts the ten GL accounts from the matching WIP Accounting Class into the discrete job record.

WIP Completion Discrete Job Name Transaction Close Discrete Job Name Discrete Jobs

Discrete Job Name Inventory Item WIP Accounting Class GL Account

WIP -7

Update Accounting Class & Status

WIP -8

Transact Push any materials required Material and by the work order Kit to SWO

WIP Material Transaction

Discrete Job Name Inventory Item ID

WIP -9

WIP -10

WIP -11 WIP -12 WIP -13

Transact Show the progression of the Discrete Job Name through Shop Floor job through the various Manufacturing Transactions Op Seq manufacturing steps.[8] Department Indicate that some quantity of a work order is complete. WIP Complete Std WIP moves it to the appropriate WO to Completion Discrete Job Name subinventory, available for Subinventory Transaction use in the next level of assembly. Create FAS (Final Assembly Autocreate Sales Order Number Autocreate Schedule) to assemble the FAS Orders FAS WO WIP Accounting Class ATO configuration. (WIP) Complete FAS Work The manufactured product of WIP Order to ATO jobs goes to Finished Completion Discrete Job Name Finished Goods subinventory. Transaction Goods Close FAS Close Close the work order. Discrete Job Name Work Order Discrete Jobs Discrete Job Name Import Labor Distribution Import labor distribution data Data Labor Category custom batch (resource) job Hours Extended cost

LD -1

[1] Non-BOM really means non-inventory. [2] That is, an inventory item. See Footnote 1 above. [3] This process confirms that a shippable item has been sent. It is used to trigger invoicing for non-manufactured lines (i.e., training).

[4] This step must first create bills of material for any new subassemblies specified in higher level BOMs. [5] It is possible to use named demand schedules to track the workload and material requirements attributable to a single order or group of orders. The schedules must, however, be combined in order to get a complete view of manufacturing and materials requirements. [6] Requisitions may be for time-phased delivery, using a form of just-in-time concept against the recommended manufacturing schedule. [7] WIP accounting classes are defined in WIP setup. A WIP accounting class defines ten general ledger accounts, to be used for: Material Material Overhead Resource Outside Processing Overhead Resource Variance Outside Processing Variance Overhead Variance Standard Cost All accounting flexfield segments are fixed for each of the ten; they are applied unchanged as they are needed in WIP processing. [8] Each step can record an action and the number of items involved. This permits items on the work order to be scrapped and rejected, and permits items to move through the manufacturing process at different paces. Oracle permits the job to move through the defined steps in any sequence, and to repeat steps. There are different status codes for each step. Each transaction requires a status, but Oracle does not require the status's to be entered in any sequence. Oracle provides the facility to record resource utilization at each step. Material Variance