Oracle Process Manufacturing

Suite

 OPM Inventory Module

Plan
Plan
Model
Model Define
Define and
and Transact
Transact
Enterprise
Enterprise Items
Items Control
Control Items
Items

 OPM Inventory Modulecontinued

Module Configuration

Facility to create organizations, locations, and warehouses

depending on your company structure.

Classify inventories to suit your business requirements.

Item Types -- Normal and Experimental

Item Controls ( Location / Warehouse /Lot / Grade / Sub lot /
Status )

Definition of Production, Purchase and Transfer Rules for the

purpose of consideration in MRP.

 OPM Inventory Modulecontinued

Picking rules feature,i.e.. Allocation method for the purpose

of Production and Sales Orders.

Facility to enter customer item crossreferences.

Facility to define default accounting and costing information.

Material shortage alerts and shortage notifications when a

material shortage occurs in an organization.

 Modelling Inventories

Plant

Component WIP FG Rejection

Stores Stores Stores Stores

 OPM Inventory Modulecontinued

Lot
Control

Lotcontrolhelpsintraceabilityandshelflifemonitoring
Specifylevelatwhichlotcontrolisapplied(org/subinventory/item)
Lotnumberscanbealphanumeric
Lotnumberscanbecreatedbysystemormanually
Lotnumberuniquenesscanbeenforcedatitemlevel
Transactinfulllotsorpartiallotsasrequired

 OPM Inventory Modulecontinued

Track It...
Lots, sub-lots, grades, status, shelf life
Detailed user-defined quality attributes
Track multiple units of measure simultaneously
Defect tracking with reason codes
Co-products & by-products, recycles & waste,
hazardous materials

Only Oracle has simultaneous units of measure

 OPM Inventory Modulecontinued

Inventory
Data Model
ITEM

WAREHOUSE

LOCATION

LOT NUMBER

SUBLOT

STATUS GOOD

GRADE A

 OPM Inventory Modulecontinued

Flexible UOM Conversions

1 DECILITER 1 DECALITER
= 0.1 LITER = 10 LITERS 1 PALLET

UOM TYPES: MASS VOLUME UNITS PKG

 OPM Inventory Modulecontinued

Unit of Measure Control

PURCHASING UNIT OF MEASURES

STOCKING UNIT OF MEASURES
WIP UNIT OF MEASURES
SELLING UNIT OF MEASURES

 OPM Inventory Modulecontinued

Lot Tractability

INTERMEDIATES- FG
LOT NO -C/10/01/2000 LOT NO : A/14/01/2000

RAW MATERIAL- WHOLESALER- ABC

#123 RETAILER- 123
#124

 OPM Inventory Modulecontinued

Transactions

Handles various types of transactions:

Issue from stores & Receipt into stores

Warehouse transfer
Direct organization transfer
Physical inventory adjustment
Cost update

 OPM Inventory Modulecontinued

Inventory Accounting

Oracle Inventory provides the features you need to

summarize costs related to inventory and manufacturing
activities for a given accounting period and distribute those
costs.

Supports both standard costing or average costing

System generated entries for costs and variances

Physical Inventory

Oracle Inventory provides a fully automated physical

inventory feature that you can use to reconcile system
maintained item onhand balances with actual counts of
inventory.

 Oracle Inventory Modulecontinued

Inventory Accuracy: Cycle Counting

Count items in entire organization or specific warehouse

Automatically schedule cycle count for valid work days

Multiple approval options for adjustments

Serialized cycle counting

Cycle counting open interface for using bar codes Approve

Approvecycle
cycle
Define
Definecycle
cycle counts
countsand
and
Schedule
Scheduleitems
items Enter
Entercycle
cycle
count frequency
count frequency perform
perform
totocount
count counts
counts
and
andtolerances
tolerances adjustments
adjustments

OPM is a tightly integrated ERP product of its own
kind, developed for the business needs of a
manufacturing environment in a process industry on a
global basis. The product works on the underlying

Oracle RDBMS.

 Formula Module
The Formula Management module facilitates entering
information about how products are manufactured.

This helps in laying down pre-defined mixes of ingredients, as

per different formulations specified, to manufacture a product.

This information is then used by other modules, primarily

Production Management (PM),Material Requirements Planning
(MRP) and Costing (CM).

Formula Management has three primary parts:

Setting up formulas
Setting up routings
Setting up effectivity records

 Formula Module.continued

Formulas: Every production batch in the Production Management

module is based on a formula set up in the Formula Management module.

Routings :Formulas contain routings which define the steps performed in

manufacturing the goods.

Routings are used by the Costing module to calculate noninventory

costs associated with the manufacturing process.

Process Capacity Requirements Planning (P/CRP) and Process

Operations Control (POC) also use routings.

Effectivity Records: Formulas are also associated with effectivity

records.These records specify when and under what circumstances
formulas can be used. Effectivity records also link routings with formulas.

 Formula Module.continued

Effective Quality Control

Identify Items that require re-testing

Monitor Expiry Dates, Production Dates
Monitor Shelf Lives

 Formula Module.continued
Key features:

Unlimited routing versions

Standard and theoretical yields

Fixed and scaleable ingredients

Planning/production & costing formulas

Instructions by ingredient & item

Formula manipulation

Rule-driven formula based manufacturing

Only Oracle has rule-driven formulas,routings,and

effectivities for maximum flexibility and
control
 Formula Module.continued

Formula Flexibility
Laboratory Customer
Costing Historical
Production Packaging
Planning Multi-Purpose

yarn GRADE:
OPC-33
OPC-43
OPC-53
PPC

 Laboratory Management Module

The Laboratory Management module calculates

properties of products of formulas based on the
properties and quantities of the ingredients in the
formulas.

 Laboratory Management Module..continued

Formula Management Module is used to down load a

formula , or enter a formula directly in the Laboratory
Management Module. Information about properties of the
ingredients (item technical data) can be entered.

This Module calculates the properties of the products. It

also facilitates "what-if" analysis by changing the formulas
or changing the properties of the ingredients and seeing
the effect that these changes have on the properties of the
products.

When a lab formula is finally frozen and it can be used for

production, a user can upload it to the Formula
Management Module.

 Quality Management Module
The OPM QC module facilitates setting up of specifications
(QC Grades, Action Codes, Hold Reasons, Test Specifications,
Item/ Customer/ Vendor/ Product Specifications etc.), for
items/lots on which routine quality tests are performed.

 Quality Management Module..continued

Quality test results can be for raw materials, intermediates, or

finished goods, at any stage during the purchasing, production, or
sales cycle, entered directly from within the corresponding module.

QC module is integrated into other OPM modules such as

Purchasing, Production, and Order Processing.

Facility of user defined test result validation

After the QC tests, the test results are entered into the system.
The results are then used to decide what action to take for results
are not within the expected range.

 Quality Management Module..continued

Multiple QC Tests
Product strength check

Customer Specific Tests

Monitor Test Equipment

Performance

 Quality Management Module..continued

Raw Materials
Intermediates
Finished Goods

INVENTORY

QC LABORATORY PRODUCTION

PURCHASING SALES ORDERS

 Quality Management Module..continued

Inventory Effects

User defined action codes

Rejected items are not available for

production or sales

Unsafe
Do Not
Use

 Forecasts Module
OPM provides the option of allowing P/MRP to include sales
order forecast quantities as anticipated item demand.

The objective of this module is to facilitate defining sales

forecasts, and capturing appropriate forecast details (such as
the item quantities and warehouses for which the forecasts
are being defined).

The forecast quantities appear as demand on inquiries in the

MPS and P/MRP modules.

The Forecasts module allows one or more sales forecasts can

then be linked to each schedule.

Master Production Scheduling Module

Warehouse

Master Production Scheduling Module..continued

Production Plan

Item Jan Feb Mar

5321 40 50 45

Plan by Required Periods- Daily, Monthly, Weekly,..

By Product Code
By Plant

Master
Master Master Sched.
Sched. Sched. C
A B

 Master Production Scheduling Module..continued

The objective of this module is to plan the production

batches forecasts.

MPS can give the users and planners a view (weekly, daily,
or even hourly) of the production that is scheduled to meet
immediate requirements.

The inputs for Production Scheduling is usually dependent

upon the pending Production batches considering the Made
to Order or Stock options as required.

 Process / MRP

This module is used to display material demand s and

projected supply actions

Organization structure supports:

Multi-plant planning
Multiple simulations

User-defined, variable length buckets

 Process / MRP..continued

MONTHLY
PRODUCTION
PLAN

WEEKLY
SCHEDULES

FORMULAS PROCESS MRP ON-HAND INV.

DAILY SCHEDULES
PRODUCTION &
EXCEPTIONS

 Process / MRP..continued

P/MRP Suggestion Messages / exception messages

MOVE/RESIZE BATCH RELEASE PRODUCTION

BATCH

CANCEL POs

INVENTORY
SHORTAGES
INITIATE WAREHOUSE EXIST
TRANSFER

CANCEL
OPEN PURCHASE PRODUCTION EXPEDITE
ORDERS POs

 Process / MRP..continued

Multi-Plant Scheduling
PLANTS PRODUCE
WAREHOUSES OWN INVENTORY
MRP SUGGESTS TRANSFERS
CORPORATE
ATTACH SCHEDULES TO ONE/MORE PLANTS
PLANNING
CALENDARS BY PLANT

Warehouse A Warehouse B Warehouse C

 Production Management Module
Oracle OPM Production Management module records
information about production batches.

Production batches are scheduled, firmed planned orders

(FPOs) created, and FPOs converted into single or multiple
production batches.

Allocate ingredients, record actual ingredient usage, certify

and complete production batches and record actual product
production quantities among other production processes.

 Production Management Modulecontinued

Steps involved in the Production Cycle

Firm Planned Orders (Optional)

Creating a Batch
Allocating Ingredients
Releasing a Batch
Allocating Products
Certifying a Batch
Closing a Batch

Process Operations Control Module

Process Operations Control is an extension to the

existing OPM Production Management module that
allows recording of more complete and detailed
manufacturing data.

OPM Production Management records the actual

material quantities consumed and yielded during
manufacturing. POC provides the ability to record the
actual consumption of non-material resources, such as
Labor, Machine time and Utilities, associated with a
production batch.

All manufacturing data can now be collected by

operation (routing step).

 Process Operations Control Module..continued

Process Definition

Fiber Sliver Even Sheets Yarn Pack yarn

Twist the Twist the

Cleaning & To perfect sliver input as Packing
Mixing Fiber with required
required to
Length Resource: get yarn
Resource:
Blow Room Resource: Sliver lap Resource:
Carding Combers Packing
Draw frame Speed Resource:
frame Ring
frame
Winding

 Cost Management Module

OPM Cost Management was designed for use in the

process manufacturing environment.

Defining Costs:OPM Cost Management allows a user to

define costs by:

Item
Warehouse
Cost Calendar/Period
Multiple Cost Methods
Cost Component
Analysis Code

 Cost Management Modulecontinued

It provides the tools necessary to do the following:

Calculate inventory valuations in WIP and inventory

transactions

Revalue inventory for appreciation

Identify precise costs of formulas & routings

Value the cost of goods sold

Detailed margin analysis & product profitability

Analyze & compare cost differences for same

products at different plants

 Cost Management Modulecontinued

Simultaneously track and perform variance analysis for

several different cost methods-Standard, Actual, ABC
style allocations

Multilevel component visibility

Cost roll ups - selected or all

Co product and By product costing

Unlimited user-definable views of costs

Eliminates month end close effort

Automatic Data flow - reduces effort

 Cost Management Modulecontinued

Cost Management provides capabilities to do the following:

Cost Monitoring/Simulations

Develop and Maintain Multiple Cost Models

Standard Costs
Weighted Average Actual Costs
"Composite" Costs

Freezing Costs for the General Ledger

 Cost Management Modulecontinued

Standard Costing

Standard costing allows a user to define the costs for

items, formulas, formula ingredients, and resources
used during the production process. OPM then
calculates the cost of an item based on:

Using different ingredients stored at different

locations

Using different formula versions

Using different facilities where overhead and

associated costs vary

 Cost Management Modulecontinued

Actual Costing

This is a more dynamic method of calculating production costs, in

which OPM will capture the actual costs from business transactions
throughout OPM. The actual data considered includes the
following:

Purchasing receipts
Price changes on receipts
Invoices paid
Batch ingredient consumption
Resource usage data
Direct/indirect expense allocations
Prior inventory balances
Cost burdens
Cost adjustments
General ledger expense allocations

 Cost Management Modulecontinued

Integration :Through integration with Oracle Accounts

Payable, the actual invoiced costs of purchased raw
material can also be obtained and used in the
calculation. OPM calculates the following actual costs:

Weighted average actual cost of purchased raw

materials, intermediate goods, and finished goods

Actual purchased raw material unit cost

Actual resource usage (data obtained from the

Process Operations Control [POC] module for
each operation in batch production)

 Cost Management Modulecontinued

Calculation of Cost

RAW MATERIAL
ACTUAL
COSTS
COSTS ARE
AUTOMATICALLY
CAPTURED FROM
Oracle Process
Manufacturing

FREIGHT/DUT
MANUFACTURING Y
COSTS

 Cost Management Modulecontinued

Costing Objectives
ITEM: Yarn

MATERIAL COST: Rs. 10.00

PACKAGING COST: RS 3.00
DIRECT LABOR: Rs. .50
INDIRECT LABOR: Rs .50
FREIGHT: Rs 5.00
ENERGY/UTILITIES: Rs 5.00
MAINTENANCE: Rs 6.00
TOTAL COST ................... Rs 30.00

LOT 103094

 Manufacturing Account Controller

The Oracle OPM Manufacturing Accounting Controller

module is used to define the data needed to derive the
financial implications of several Oracle OPM modules.

These Oracle OPM modules are Production Management

(PM), Inventory Control (IC), and Cost Management
(CM).

Once this financial information in the form of Journal

Vouchers is reviewed and approved, it can be passed to
the Oracle General Ledger.
If necessary take parallel runs.