Overview on Oracle Process Manufacturing and Setup steps to create a batch

Oracle Process Manufacturing:

Oracle Process Manufacturing enables firms to better manage batch production involving variable ingredients, scalable recipes and flexible routings to satisfy unique specifications typically found in chemicals, food and beverage, life sciences, pharma and natural resources. Oracle Process Manufacturing (OPM) allows full end-to-end lot trace-ability with embedded quality and multiple cost methods that provide complete visibility of plant operations

Setup Steps to create a batch:

S.No.	Action	Responsibility
1	Define OPM Inventory Org	Inventory
2	Define OPM Item	Inventory
3	Org Parameters	Product Develop Security Manager
4	Define Activities	Process Engineer
5	Define Generic Resources	Process Engineer
6	Define Process Operation	Process Engineer
7	Define Process Routing	Process Engineer
8	Define Formula	Formulator
9	Assign Product, By-Product, Ingredients to Formula	Formulator
10	Define Receipe	Formulator
11	Define Validity Rules	Formulator
12	Assign Product, Formula & Routing to Receipe	Formulator
13	Process Execution – Setup Parameter	Production Supervisor
14	Document Numbering, Inventory Transaction, Batch Creation	Production Supervisor
15	Batch Creation (Document) - (Select the Receipe for the batch)	Production Supervisor
16	Release the Batch	Production Supervisor
17	Transact the Batch (WIP issue the Ingredient)	Production Supervisor
18	Complete the Batch	Production Supervisor
19	On Hand Availability for Product & By-Products	Inventory

Short notes on Oracle Supply Chain Management

Oracle Supply Chain Management (SCM) basically integrates and automates all key supply chain activities which starts from design, planning and procurement to manufacturing and fulfilment. 

It depends upon how the company planning to use these application module in their business line. 

For better understanding from Oracle Product line, the below figure illustrates the eight process flow.

1. Design: 
SCM start with designing & developing new products where Product specifications are created. 
Few Important applications play major role in this phase.
• Oracle Product Life cycle Management
• Oracle Advanced product Catalog
• Engineering & Bills of Materials

2. Market:
Marketing and Sales generates demand for the Product by publicizing its features. Marketing also gets customer feedback and communicates to Product development group. 
These are application potentially can be used.
• Telesales
• Trade Management
• Incentive Compensation
• Order Capture
• Oracle sales

3. Plan: 
Planning is the strategic portion of SCM. Always planning needs a strategy for managing all the resources that go towards the customer’s demand of any product or service.
• Advanced Supply Chain Planning
• Global Order Promising

4. Sell & Manage Order: 
To maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit.
• Order management
• Advanced Pricing
• Configurator
• iStore

5. Procure:
To choose the suppliers that will deliver the goods and services that needed to create a Finished product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.
• Purchasing
• iProcurement

6. Manufacture:
To Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery.
• Cost Management
• Process Manufacturing
• Project Manufacturing
• Quality
• Work in Process

7. Fulfill & Release Management :
To Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
• Shipping Execution
• Inventory Management
• Warehouse Management System
• Transportation Execution

8. Service & Maintain: 
To Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.
• Depot Repair
• Field Service
• Install Base
• Service Contracts

Overview on Oracle Warehouse Management (WMS)

Oracle Warehouse Management System (WMS) is advanced inventory module with lot of unique features that improves productivity of distribution centers, manufacturing or inventory handling facilities. Oracle WMS supports manual data entry, bar code readers scanning for data entry as well as Radio Frequency Identification (RFID) scanning. Oracle WMS can be enabled at Inventory organization level.

Key business processes supported by Oracle WMS:

1. Inbound Logistics
2. Outbound Logistics
3. Manufacturing & Value added services
4. Storage & Facility Management
5. Reverse Logistics

Key terms used in Oracle WMS:

• License Plate Numbers (LPN):

LPN is an object carries the location where it is residing and items that are holding. LPN need not be a physical object, it could be logical grouping. LPN simpley a group of items represented systematically. The major advantage of LPN is less number of transactions. Entire LPN can be transacted at once instead of by each line that LPN holds.

• Material Status:

This is one of the beautiful features of WMS, you can assign status to an item, lot or serial number. Each status is defined with a list of permissble transactions. Eg. if you have status called ‘No Sale’ and set the rules such that shipping is not allowed but all other internal inventory movements are allowed. Material status can enforce this kind of business rules.

• Label printing:

WMS partially supports this functionality. Label formats and fields (data)needed can be defined and can be associated with WMS rules to print the label automatically. WMS can generate xml output, but 3rd party label printing/formatting tool is required to print.

• Cost groups:

This is another major functionality offered by WMS module. In standard Inventory module Inventory valuation accounts are derived by subinventory setups. In WMS based on cost group rules different valuations independent of subinventories can be created.

• Putaway Rules:

When a matrial is received you need to receive into stock. In a major distribution center it is often complex to know where to store the material. WMS offers putaway rules that can be setup based on business criteria. Eg. If all hazard material category must be received into hazardous area then putaway rulescan be setup.

• WMS Rules engine:

WMS rules engine enforces the rules defined for putaway, cost group or label printing.

P2P Cycle Flow (India Localization) with Accounting Entries

P2P Cycle Flow (India Localization)
Step	Activity	Navigation	Responsibility
1	PO Creation	India Localization>Purchase Orders>Purchase Orders	India Local Purchasing
2	Attach Tax for the PO	India Localization>Purchase Orders>Purchase Orders	India Local Purchasing
3	Approve the PO	India Localization>Purchase Orders>Purchase Orders	India Local Purchasing
4	Take Receipt against the PO	India Localization > Receipts >Receipts (Localized)	India Local Purchasing
5	Check Completion of Report "Receiving Transaction Summary"	View (Alt + V) > Requests > Find	India Local Purchasing
6	Claim Vat for the PO	India Localization > Receipts >Receipts (Localized)	India Local Purchasing
7	Claim Excise for the PO	India Localization > Receipts >Claim Modvat on Receipts	India Local Purchasing
8	Trigger "Pay on Receipt Auto Invoice" Concurrent (For Importing the Transaction from Purchasing to Payables)	View (Alt + V) > Requests > Submit New Request	India Local Purchasing
9	Trigger “India - To insert taxes for Pay On Receipt” (To insert Taxes to Payables)	View (Alt + V) > Requests > Submit New Request	India Local Payables

Accounting Entries P2P Cycle
S no	Activity	Debit	Credit
1	PO Receipt	Inventory Receiving A/c	AP Accural A/c
		Vat Interim Recovered
2	Claim Excise	RG 23A Basic
		RG 23A CESS
		RG 23A SH CESS
			Inventory Receiving A/c
3	Claim VAT	Vat Recovered
			Vat Interim Recovered
4	Delivery	Material Value A/c	Inventory Receiving A/c
5	Invoice	AP Accural A/c	Liability A/c
		Misc. Excise
		Misc. CESS
		Misc. SH Cess
		Misc. Vat
6	Payment	Liability A/c	Cash / Clearing A/c

Short Notes on Oracle Documentation - BR & MD Documents

Documentation is a very important process during in oracle apps implementation projects. Oracle as part of the AIM Methodology has provided certain technical language for various kinds of documents at different stages of the project

·       BR Documents

Business Requirement Documents, which is mostly done by the Functional Persons of the Implementation Team like Functional Project Leads / Managers. These documents are the Set up Documents, which is 100% based on the BR 120 – Business Requirement Gatherings as provided by the business.

·       MD Documents:

Modular Designing Documents, which are is mostly done by the Technical Persons of the Implementation Team like Technical Project Leads / Project Manager. These documents are the Design Documents, which is again based on the BR 120 – Business Requirement Gathering as provided by the business.

These MD’s are of basically discussed on any customization needs or any special behavior oracle system should work which is not the Standard Oracle Functionality. These MD’s are basically made after you all Functional Design and if there is no work around Oracle System provides for a particular Test Scenario and there is no other way other than to go for the Customization.

Herewith furnishing below some of the documents involved in every stage of Implementation Cycle:

Setup steps to create Business group to Inventory Organization

S no	Setup steps
1	Enable Flex-field
2	Create Responsibility for INV, PO,OM, GL, AP and AR
3	Create User Name
4	Assign the Responsibility to User
5	Create Location for BG,OU and INV ORG
6	Create BG in Inventory Responsibility (Define Type as Business Group)
7	Assign Location to BG
8	Assign Business group info
9	Assign HR security Profile to Responsibility in system Admin --> Profile option
10	Assign MO security Profile to Responsibility in System Admin --> Profile option
11	Create General Ledger and Legal Entity
12	Create OU in inventory Organization (Define Type as Operating Unit)
13	Assign Location to Operation unit
14	Org classification as Operation unit
15	Click Other tab & provide the Operating unit information
16	Assign MO default operating Unit & operating unit in System Admin --> Profile option
17	Assign GL ledger Name to responsibilities created (INV, Pur, OM....)
18	Run “ Replicate Seed data ” concurrent program in system admin responsibility
19	Create a Inventory Org in Inventory responsibility -->Setup --> Organization --> Organization
20	Assign Location to Inventory organization
21	Assign org classification as Inventory Organization & save the details
22	Click Other tab & provide the Accounting Information , Inventory information and Receiving information for inventory Organization
23	Assign Inventory Organization in Inventory Location

Supply Chain Management (SCM) - An Introduction

Supply Chain Management (SCM) - An Introduction

Supply Chain Management (SCM) is a systematic approach to manage the seamless flow of information, materials and services from raw material suppliers through factories and warehouses to the end customer.

Moreover, SCM involves seamless flow of material, information & finance in a network consisting of customers, suppliers, manufacturers, retailers and distributors.

Supply chain is product specific, not company specific.
Supply Chain Management is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer.

SCM has three primary goals:

• Reduce inventory.
• Increase the transaction speed by exchanging data in real-time.
• Increase sales by implementing customer requirements more efficiently.