Oracle Process Manufacturing-

Overview
 WHAT IS MANUFACTURING?

Process of Converting Raw Materials / Components / any Parts into a

form / shape of product ( Finished Product )
......that meet required expectations and specifications
.........using Man Power or Machineries or combination of
both....................
 Types of MANUFACTURING?

Discrete manufacturing

Flow manufacturing

Process manufacturing
 5 Ms of MANUFACTURING?

Money (cost)
Material (formula)
Man power (resource)
Machine (resource)
Method (operation,routing)
 DISCRETE MANUFACTURING

Describes manufacturing of distinct items ( items you can easily count, touch, see )
normally a Product that is "Built Up" from components or sub-assemblies

Examples include :
Automobile manufacturing , Computer and electronic products, Industrial and electrical equipment, Medical equipment and
supplies, Fabricated metal, furniture, recycling, and miscellaneous manufacturing.
 PROCESS MANUFACTURING

Process manufacturing is distinguished by a production approach that has minimal interruptions in actual processing in any one production run,
or between production runs of similar products
This approach produces multiple unique products in relatively small batches flowing through different production operations throughout the
factory.
process manufacturing will typically have several processes linked together in the production system
Processes may break down raw materials, refine materials into higher quality goods

Examples include : cHEMICAL MANUFACTURING, DIESEL PRODUCTION,

PHARMACEUTICAL INDUSTRIES, PROCESSED FOODS, GASOLINE
PRODUCTION, BEVERAGE MANUFACTURING
PROCESS & DISCRETE MANUFACTURING
ORACLE PROCESS MANUFACTURING (OPM)

MAIN SUB-MODULES IN OPM:


PRODUCTION BATCHES AND TRANSACTIONS


QUALITY CONTROL


OPM FINANCIALS (COSTING , SLA)
 Describing the Process Flow
Prerequisite setup

Formula setup Routing setup

Operation classes
Formula classes Routing classes

Resources
Formula creation
Plant resources

Activities

Create operations

Create routings
Recipe creation

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Process Engineer  Setup  Generic Resources

Process Engineer  Setup  Plant Resources

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 Entering Operation Details
Operation XX Production Operation

Activity
1.2.3....

Setup Mixing Packaging

Resource

Production equipment Labor

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 Routing Hierarchy
Routing

Operation1.. Operationn

Activity1.. Activityn

Resource1.. Resourcen

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Process Engineer  Setup  Routings

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 Formula
Formula contains details of Ingredients, Products and By-products with
their associated quantities and processing instructions.

Use of formula.

Production Batches are based on Formulas.

Formulas are also used for Planning, Managing costs & Scheduling.
Ingredients -Raw Materials used in manufacturing .
Product - Finished Good produced using Raw Materials.
By-product - Product Produced during manufacturing process of
a product which cost will not be considered.
Depending on type By-product can be classified as
Rework,sample,waste or Yield.

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 Formula Details

FormulatorFormulas Products

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 Recipe Details
FormulatorRecipes

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 Recipe Hierarchy
Routing

Operation1.. Operationn

Processing
Recipe Activity1.. Activityn Instructions

Resource1.. Resourcen

Formula

Ingredient Product Byproduct

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 PRODUCTION BATCH CREATION
Production SupervisorBatch Details

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 PRODUCTION BATCH CREATION
Production SupervisorBatch Details

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 PRODUCTION BATCH MATERIAL TRANSACTIONS
Production SupervisorBatch Details-->Batch Completion

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 OPM Cost Management

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 Cost Types


Standard Cost
 Actual Cost
 Lot Cost

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 Standard Costing

Under standard costing, predetermined costs are used for valuing

inventory and for charging material, resource, overhead, period close,
and job close and schedule complete transactions. Differences between
standard costs and actual costs are recorded as variances.
Use standard costing for performance measurement and cost control

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 Actual Costing
OPM captures the actual costs from business transactions.

 Costs of raw materials are captured based on the raw material purchase
order receipts and or invoices.

 Costs of products are captured based on the actual quantities of the

raw materials consumed and the resource usage or conversion cost
recorded in the production batch.

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 Lot Costing

Lot costing, also known as Specific Identification Type costing lets you
calculate and store costs at the lot level. That is, each lot has a unique cos
associated with it and it retains this cost until the entire lot is consumed
The lot costs are computed on a perpetual basis.

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 Period Moving Average Cost (PMAC)

Component cost
raw materials =

Previous Previous GL expense

( period
inventory
balance
×
period
GL expense
component cost
)+ component
amount for
current period

Previous
period Received
inventory + quantity
balance

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 Cost Types
D e fin e C o s t T y p e s
N a v ig a tio n > F in a n c ia l> C o s t M a n a g e m e n t> S e tu p > C o s t M e th o d s

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 Cost Calendars
D e f in e C o s t C a le n d a r s
N a v ig a tio n > F in a n c ia l> C o s t M a n a g e m e n t> S e tu p > C a le n d a r s

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 Cost Components Class
D e fin e C o m p o n e n t C la s s
N a v ig a tio n > F in a n c ia l> C o s t M a n a g e m e n t> S e tu p > C o m p o n e n ts C la s s
T h e C o s t C o m p o n e n ts a r e c la s s if ie d in to 5 c a t e g o r ie s .

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 Resource Cost
D e fin e R e s o u rc e C o s t
N a v ig a tio n > F in a n c ia l> C o s t M a n a g e m e n t> R e s o u r c e C o s t

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 Viewing Item Cost List

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 Sub-ledger Accounting (SLA)

 Subledger accounting is an intermediate step between subledger

Products and the general ledger.

 Each Transaction that requires accounting is represented by a

complete and balanced subledger entry, stored in a common data
model

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 OPM-SLA Flow

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 SLA Hierarchy...
Events are logical groupings of Event Types

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 SLA Hierarchy...

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 SLA Hierarchy…

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 SLA Flow
Update the Account Derivation Rule conditions.
Ex: Add Item/Item Class/Organizations

Validate the Application Accounting Definition

Run OPM Accounting Pre-Processor

Run OPM Accounting Pre-Processor

Run Create Accounting in Draft mode

Check Create Accounting report and Journal

Entries report

Run Create Accounting in Final mode to create GL

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 Create Accounting

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 SLA Report

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 SLA Report

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 SLA Report

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 SLA Report

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