Upgrade to R12 Now –Manufacturing and Order Management

Presented by:Bob Bullman, BizTech

Upgrade to R12 Now – OAUG eLearning Sessions

Presentation Date Presenter CompanyUpgrade to R12 Now – A

Financials Overview Jul 19, 2012 Lee Briggs

Upgrade to R12 Now – A Deep Dive into General

LedgerJul 26, 2012 Mohan Iyer

Upgrade to R12 Now – The International and Multi-

National ArenaAug 2, 2012

Marsha Edgell/Thomas

SimkissUpgrade to R12 Now – Improvements in Cost

ManagementAug 9, 2012 Douglas Volz

Upgrade to R12 Now –Manufacturing and Order

ProcessingAug 15, 2012 Bob Bullman

Upgrade to R12 Now – Realizing Enterprise Value

with Projects R12Aug 23, 2012 Mike Lennon

Upgrade to R12 Now – Round Table Discussion Aug 30, 2012 Thomas Simkiss

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Bob BullmanOracle Applications Practice Director

Professional Summary:– Professional Supply Chain Consultant (15+ years implementing Oracle Applications)– Held multiple management positions at Oracle within the Application’s group – Advanced Planning and Distribution optimization expert– R12 Solution Architect ( Manufacturing, Order Management, and Service )– Techno-Functional consultantQualification Summary:– APICS Certified at the Fellow level – Prior certification in Oracle Manufacturing and Supply Chain modules– Bachelors Degree in FinanceProject Experience:– Full suite R12 Financials, Order Management, and Manufacturing, including VAT taxation – Implemented many other R12 and 11i installs, as well as prior version of Oracle including CRM (E-Bus only)– Presented at many different types user groups and professional organizations (APICS, OAUG) – Designed and coded many extensions to the E-Business suite, as well as performed numerous data

conversions.

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Objective• Emphasize the changes in R12 that are improvements /

advancements from prior 11i versions based on my experiences.• Discuss the benefit or business requirements that can be

satisfied.– Manufacturing modules (BOM, WIP, INV, PO/MRP)– Order Management – Service Contracts and Installed Base– PIM (Product Information Management

Data Hub)– Quality Module– New reporting tools available– Module trivia

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Why upgrade now?

Why Not?• More features and

functions• Much Improved

reporting capability• Improved Tech Stack• Tables remain the same• OPM using more

common functions

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Services Order Management

Purchasing

Inventory

WIP

Checked each version for this one.

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RM WIP FG

Balance Sheet by FG Product type

• Needed separate finished goods accounts so the balance sheet has values in different accounts.– Modems – Detergents – Antennas – Household cleaners– Routers – Candles

• Also the received items might be finished goods. – Distributors– Spare Parts

No more logical sub inventories for account numbers!

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SLA = Centralized Accounting Model, Rules, Engine and Repository

SLA = Centralized Accounting Model, Rules, Engine and Repository

Dr Cr

ProjectsProjectsReceivablesReceivables

PayablesPayables

InventoryInventory

General Ledger General Ledger

Work in ProcessWork in Process PurchasingPurchasing

You can change the accounting without using triggers.

Modules that have remained the same:

• Engineering (same approvals)• Capacity• Work-In-Process• PO Receiving• Bills and Routings

“This makes upgrading a No-Brainer”

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BizTech Vision Instance

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Bill of Material

• Fixed component usage support• Inverse component usage support• Update Material Control in Common Bills

(caused not using common Bills)• Phantom Labor can be included in cost rollup!

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Lot basis just like in Routings

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Only two boxes needed - even if you make 100!

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Quantity per of 1 (lot)

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Always wanted to define on a BOM that they just need one or two with each Discrete Job.

Some Examples of Use

• Tooling• Track pallets• Setup kit, drawingInverse component usage

– .002 or 500

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500 per Box

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Update Material Control in Common Bills

• While retaining a common BOM relationship, users can update the following attributes at the org level:– Operation Sequence– WIP Supply Type– Sub-Inventory– Locator– Include in cost roll-up

• Benefits:Facilitates standardization by deploying common bills while enabling typical organization overrides

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Common BOM process is the same

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Locks all but the new fields

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Material Control different in E1

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Phantom Labor included in cost rollup option

• Phantoms have many uses• One is to define parts being made and the

labor time, but no need to transact them• Problem was that the labor cost were not

included in the cost rollup

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Work In Process

• Component Usage EnhancementsReport Fixed Component Usage

• Scheduling Workbench New FeaturesPrint Gantt Charts

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Making 100, but need 2 boxes for each Job

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Inventory

• Material Status– Used for Lot control before QA Approval is

complete you can not reserve a lot.• Defining Picking Rules

– Used to be only one for shipping and Discrete Job picking.

– Now you can have many!• OPM Inventory Convergence

– Uses common inventory (lot status and more)– Shipping and reserving

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• Material Status control restricts the movement and usage of portions of on-hand inventory.

• Using material status control enables you to control whether you can pick or ship an internal order or sales order, or issue material for a work order. You can also specify whether material needs to be quarantined until you inspect it.

• In addition, you can determine whether products with a particular status can be reserved, included in available to promise calculations, or netted in production planning.

• You assign material statuses at four levels: subinventory, locator, lot, and serial.

• Used to have a creative way of doing this one (first locator had security turned on) RW- I-1-A-1 move to RW A-1-1FDA approved

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Material Status

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Here is one example

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Examples

• Control transactions without having to move inventory to a non-reserve-able sub-inventory.

• Hold lots until they are approved or expired• QC must approved or test before production can use the

material (or ship it).

• You can create picking rules that enable you to sort picks based on criteria that you define for sales orders, process manufacturing batches, or work in process jobs.

• Oracle Inventory reviews the picking criteria order and the options for each criterion.

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Enhanced Picking Rules

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There was only one rule shared w/Shipping and WIP in 11i

Serial / Lot Genealogy and TrackingAlways Know the Source and Placement of Each Part

Boards R’ UsDenver, CO

Acme ChipFab 12

E. StorageAustin, TX

SKD Co.S. Korea

Nippon FabJapan

IrelandManufacturingPartner

Co

mp

osi

tio

n

Wh

ere

Use

d

Suppliers

• Trace a customer shipment back to the original source• Trace a lot or individually serialized product through supply base

Server(S.No. 512)

Disk B(S.No. 339)

Disk A(S.No. 676)

Disk Array(S.No. 892)

Memory(Lot No. 115)

CPU(S.No. 232)

Storage(S.No. 929)

PCI Board(S.No. 717)

Purchasing/MRP

• Auto-Approval Tolerances for Change Orders• This one is long overdue, still creates new revision.• Changing dates when not using iSupplier can be very time

consuming and most often didn’t require approval.• Buyer Work Center

• HTML PO Summary and change without so many levels.• Easier user interface with all a buyer needs in one html form –

Auto-create PO, create and query PO’s and blankets • Rescheduling of PO from ASCP ******

– Works well for Planner/Buyer role (i.e. the planner for an item is the buyer too)

– Could always do this with unreleased Discrete Jobs.• BI/XML Publisher used for PO layout.

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Within Tolerances?

Change PO

Bypass Approval

Route for

Approval

Tolerances

HTML Maintenance

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Single level change, just click on tab

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Order Management

• Adaptable User Interface• Item Order-ability• Enhanced Inventory Reservations

(Reservations against WIP and Purchasing)

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Adaptable User Interface

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Quick Organizer Configurability

• Study order entry flow and streamline (Mass change was missing and more in the past)

• Map to improve user experience– Many other tools are available– Defaulting rules– Forms personalization

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Item Order-ability• Businesses need to be able to order specific products depending on specific

customers. Instead of being able to view and select all items for all customers in the sales orders window, you can now restrict the item list based on customer and other related criteria.

• If the value of the profile option OM: Use Materialized View for Items LOV (Honours Item Orderability Rules) is set to No, then the Ordered Items LOV lists all the items of the item validation organization of the current operating unit. This doesn't consider the defined item orderability rules, however if there is a defined rule that prevents the item from being ordered, then an error message is displayed during the saving of the order. You will not be able to save the order.

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Item Order-ability

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Link Item and Customer Category

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Reservations Improvements

• Reserve inbound supply including PO’s• New screen for improved manual allocations

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Improved Reservation Screen

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New Tools option

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Default Qty. makes selecting easy.

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Enter and book Sales Order

Progress the line and a Discrete Job will be created.

View the Job number by going to the following action results screen.

Reserving Discrete Jobs

Here are the reservations that you can view.

Reservation is to Discrete Job until the product is reported as made.

Did a WIP Move complete transaction and the inventory is now reserved.

Reservation changes to be linked to inventory after the product is made, but the tables still track the original discrete job link. Here is the shipped order status after the shipping process is completed.

Linking Sales Order lines to Discrete Jobs

Service Contracts• Improved Approvals

– AME and Portal Approval– Renewals can skip approval

• Launchpad Improved, well as HTML available (New Search and Inquiry using HTML)

• Enhanced Installed Base Integration– Easy add screen Forms or HTML– Easy select of current records

• New Search and Inquiry using HTML• Deferred Revenue options available

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Launchpad is still nice, IB improved

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Installed Base records show below

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Quick add of Installed Base records from Contract

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For Signing / Approval use respond for portal access

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Portal Approval

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Installed-Base

• Entirely new HTML user interface...dramatically improved functionality“11.5.10 to be virtually unusable in it’s former state”

• Increased integration across Service Contracts, OM and Field Service allowing easy instance creation, update and transfer.

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PIM Functionality (Introduction only)

• Product Information ManagementData Hub

• PIM Functionality can satisfy the following:– Upload new Items– Assign new Items to categories – Assign new Items to orgs

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Sample

• Scenario: Need to setup 10+ new items– Create Master Items in Master Org (V1)– Assign Items to Inventory Org (M1)– Update Category Assignments for all Items (in M1

org)

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Excel import options

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Excel import template w/data

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Upload Parameters

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Upload Parameters

Conc. Request & Log File w/results

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‘View Log’ & Query Item Master

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Manual Item Creation

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Inventory Setup Functions

• Can perform the following functions in PIM, same as in Inventory responsibility– Define item templates– Define item catalog categories– Define item attachment categories– Define item statuses– Define cross-reference types

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Quality Module

• Sample Plans• Skip Plans• HTML entry (single and multiple line entry)

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Quality Module

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Supplier Input Production Field Failures

Quality Collection Plans

DataRepository

Quality Analysis Tools

Reports Online Inquiries Charts

ActionsandNotifications

ElectronicDocuments

Specifications

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Item: 2601Item Name: Automotive Pinion

Process ProcedurePinion stock is cut with spines and the shaft is turned tospecifications to fit sleeve.

Characteristics

Shaft DiameterSpine Cut DepthShaft Cut Length

UOM

InchesInchesInches

Target Value

3.140.622.5

LowerSpec.Limit

3.1350.59522.494

UpperSpec.Limit

3.1450.60522.505

Data Collection Options

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Directly

Transactions

CollectionImport

Quality DataRepository

Query, Report, and Export Data

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Quality DataRepository

Query

Reports

Export

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Skip lot example

Sample Plan Example

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Sample Plan Example continued…

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Oracle Reports

• Seeded report discussion– Mainly RDF’s for Years– Some C reports (MRP Outputs)

• Spawned reports layouts - Receipt traveler - Pick Slip- Statements - Packing Slip

• PL/SQL Packages with delimiters• BI Publisher (better)

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Install the sample - steps

• Create Concurrent Program• Create Data Definition

– Update XML• Create Template

– Upload RTF• Add to Request Group• Test Report (PDF or Excel)

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Process Overview

Creating customized reports using XML Publisher can be divided into two phases:Design Time and Runtime.Design Time1. Register the E-Business Suite report as a Data Definition in the Template Manager.Create a Data Definition in the Template Manager for E-Business Suite reports thatyou wish to customize using XML Publisher.2. Design your template.Your template files can be either in Rich Text Format (RTF) or Portable DocumentFormat (PDF).3. Register your Template in the Template Manager.When you create the template in the Template Manager, you register and uploadyour RTF or PDF template files. The Template must be assigned to the DataDefinition Code of the E-Business Suite report with which it will be merged.Runtime1. Set the concurrent program to generate XML.2. Run the concurrent program using standard request submission.• If you are using the Submit Request form, the Layout field of the UponCompletion region displays the currently selected template. To change thetemplate, template language, or output format select the Options button.

Here is what you get!

• Reports output right into Excel• Layout changes done using MS Word• PL/SQL can be loaded from within the Apps• Etc…

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Old Standard Reports

What I didn’t cover

• Discrete Manufacturing with MES• ASCP• OPM• Additional improvements across the Supply

Chain modules• Edge products integration • Configurator (very good in R12) • Etc…

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Why upgrade now?

• Why Not?• More features and

functions• Much Improved

reporting capability• Improved Tech. Stack• Tables remain the same• OPM using more

common functions

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Services Order Management

Purchasing

Inventory

WIP

Any Questions?

Bob BullmanDirector, Oracle Applications PracticeBBullman@BizTech.com