ATCO Project

(Discrete Job ) Business Flow in Oracle Applications

Prepared by
 Purpose
Purpose – To Method – Expectations Outcome –
Understand Demonstrati – User Business
Standard on of Oracle Interaction Process
Business
Flow
Standard
Process
and
Openness for
new Process
understandin
g of CRP
Agenda
WIP Transaction

BOM

COSTING

UOM

CASE STUDY – LIVE DEMO Discrete Jobs End to End

Cycle
JOURNAL ENTRIES

Month End closing

Reports
ATCO WIP Transactions
Work in process transactions will help ATCO in

 Tracking and report inventory accurately

 Maintaining accurate supply and demand information

 Tracking activity costs

 Value work in process

Material Transaction

 Push- Materials can issued directly to discrete jobs whenever needed during the
Work order Cycle.

 Assembly Pull- Materials are issued to discrete jobs when you complete the related Operation.
 
 Operation pull- Materials are issued to discrete jobs and repetitive schedules when you complete assemblies in Work
in Process.
 
 Bulk-components are not back flushed nor do they default when issuing all components for an assembly. You can,
however, manually issue specific bulk components to a discrete job.
 
 
ATCO will use this functionality to issue /return Components from inventory to Work in process and The best suited Supply
type for ATCO is Push since that the actual quantity might be differ than the bill of material quantity.
 
Note* as per ATCO requirement , the material issuance step has to be carried automatically by reading the data from the
manufacturing machines ; therefore MIS will create a customized interface fully integrated with the manufacturing
machines, this will be discussed during the customization stage.
 Resource Transaction

The Work in Process system allows you to:

 
 Manually enter the manufacturing working hours.
 Automatically by the system according to the routing definition.
 
If the routing definition is reasonably accurate, then you can let the system handle this step otherwise (i.e. the actual
working hours fluctuate than the standard working hours) you should record the manufacturing time manually.
In both cases you have the option to use the standard rates or actual rates a long with their overhead.

ATCO will use this functionality to charge resources cost to work in process, listed below is the best the suggested approach
that should be used by For ATCO:
 Manually enter the manufacturing working hours.
 Standard Rare along with its overhead.
 
Note* as per ATCO requirement , the resource transaction has to be carried automatically by reading the data from the
manufacturing machines ; therefore MIS will create a customized interface fully integrated with the manufacturing
machines, this will be discussed during the customization stage.
Move Transaction
The Work in Process system allows you to move assemblies within an operation (for
example, from Queue to Run) or from one operation to the next, the list below summarizes
the intra operation steps that can be used to move assemblies within an operation.
 
1. Queue - This Intra operation step is the initial step for any of the Job in routing which
means the assemblies are waiting for the operation to be performed.

2. Run – This Intra operation step means the operation specified in the routing is being
performed.

3. To Move – This Intra operation step means the assemblies are ready to be moved to
the next operation in the routing.

4. Reject – This Intra operation step means the quality inspection failed assemblies that
can be salvaged by repairing are moved to this step.

5. Scrap - This Intra operation step means the quality inspection failed assemblies which
are beyond the scope of repair or rework are moved to this step.
 
For ATCO the move transaction is not valid (within the operation or between the
operations), since the routing is only consists of one operation (Mixing) and the job order life
cycle is to short minutes.
Bills of Material Overview

Oracle manufacturing uses Bills of Material Product to do the following:

 Create and maintain Productions Bills of Material: Primary & Alternate.

 Create and maintain production resources, departments, Standard operations.

 Creation and maintain routings: Primary & Alternate.

 Maintain the workday (Working) calendar.

 Perform Cost roll up.

The bills of material Module is part of the Oracle E-Business suite, and directly integrates with
other Oracle Products like (Inventory, Oracle Work in Process, Oracle Purchasing, Oracle Master
Scheduling & Material Planning, Oracle Cost Management, PA and Oracle Order Entry) to take
advantage of single entries, information sharing, and data consistency between oracle modules.
 ATCO Standard Costing

 Unit costs are set up in advance as an expected cost

 Component costs (material costs) are defined using the projected average acquisition costs, plus
any associated indirect costs
 Assembly costs are rolled up using bills of material and routings
 Standards are reset periodically, depending on how quickly your costs change

All manufacturing and distribution activities are measured against

the expected costs
 Typical variances include:
 Purchase Price Variance,
 Invoice Price Variance
 Manufacturing Variances (material usage, resource efficiency, etc.)
ATCO Cost Elements
We have five available cost elements for each cost type

• Material (supplier purchase costs)

• Material Overhead (freight in, material handling, etc.)
• Resource (labor, machines, other factors of production)
• Outside Processing (subcontracting or outsourcing)
• Overhead (Resource and Outside Processing Overhead)

Cost sub-elements

• Material (metal, plastic, etc.)

• Material overhead (inter-co profit, in-bound freight, etc.)
• Resources (labor, machine groups, etc.)
• Outside Processing (subcontract vendor service1, service2, etc.)
• Production Overheads (Factory Burdens, etc.)
ATCO Cost Structure
ATCO Unit of Measure Classes
Unit Base Unit of Measure Other Units Measure

Quantity each dozen, box

Weight gram pound, kilogram

Time second minute, hour

Volume cubic inches cubic feat, cubic centimeters

Unit of Measure Class Unit of Measure Unit of Measure Code Base Unit of Measure?

Quantity each EA Yes

Quantity dozen DZ No
Weight gram GR Yes
Weight kilogram KG No

Unit of Measure Class Unit of Measure Unit of Measure Code Base Unit of Measure? Standard Conversion

Quantity each EA Yes -

Quantity dozen DZ No 1 DZ = 12 EA

Weight gram GR Yes -

Weight pound LB No 1LB = 454 GR

Time second SE Yes -

Time minute MI No 1 MI = 60 SE
Discrete Jobs End to End Cycle
with Cost Roll-up in Standard
Cost Organization
 CREATE ITEMS

•Responsibility: Inventory Navigation: Items > Master Items

•Select the Organization as “ATCO ATEW OU

Item Item Template (Type)

Cabinet
Finished Goods
Isolators
Purchased Item
Relay
Purchased Item
Fuses
Purchased Item
Circuit
Purchased Item
Cables
Purchased Item
Power Supply
Purchased Item
 DEFINE ITEM COST
Responsibility: Inventory Navigation: Costs > Item Costs

Item: DYS_ENGINE Cost Type: Pending

Item Item Template (Type) Item Cost (USD)

Cabinet Purchased Item 100

Isolators Purchased Item 50
Relay Purchased Item 150
Fuses Purchased Item 80
Circuit Purchased Item 200
Cables Purchased Item 100
Power Supply Purchased Item 250
ATCO_Control_Panle Finished Goods  
  DEFINE RESOURCES

Responsibility: Bills Of Material Navigation: Routing > Resources

Select the Organization as “ATCO ATEW OU"
Resources Name Resource Type Rate UOM
Machine 1 Machin 500 HR
Machine 2 Machin 600 HR
Machine 3 Machin 400 HR
Mech_Punching Person 100 HR
Mech_Cutting Person 100 HR
Mech_Bending Person 100 HR
Mech_Welding Person 100 HR
Painting_Cleaning Person 50 HR
Painting_Painting. Person 50 HR
Electrical_Busbar Fabrication Person 70 HR
Electrical_Assemble Person 45 HR
Electrical_Wiring Person 90 HR
Quality_Raw Material. Person 60 HR
Quality_Finished Goods. Person 60 HR
Quality_Mechanical assembly
check: Person 60 HR
Quality_Shearing Person 60 HR
Quality_Punching Person 60 HR
Quality_Bending Person 60 HR
Quality_Welding Person 60 HR
Quality_Drilling Person 60 HR
Quality_Painting check. Person 60 HR
Quality_Busbar preparation
check: Person 60 HR
Quality_Cutting Person 60 HR
Quality_Punching Person 60 HR
Quality_Bending Person 60 HR
Quality_Drilling Person 60 HR
Quality_Assembly in Panel Person 60 HR
Quality_Electrical Assembly
check: Person 60 HR
Quality_Component Assembly Person 60 HR
Quality_Base Plate Wiring Person 60 HR
Quality_Door wiring Person 60 HR
Quality_Labels and Dressing Person 60 HR
Quality_Final Assembly. Person 60 HR
Quality_Quality Inspection
check Person 60 HR
Quality_Shortages Person 60 HR
Quality_Testing check Person 60 HR
Over Head 1 OH 70  
Over Head 2 OH 80  
  DEFINE DEPARTMENTS

Responsibility: Bills Of Material Navigation: Routing > Departments

Select the Organization as ATCO ATEW OU
Department
Resources
Name

Mech_Punching
ATCO_ Mech_Cutting
Mechanical
Mech_Bending
Mech_Welding
ATCO_ Painting_Cleaning
Painting Painting_Painting.
Electrical_Busbar Fabrication
ATCO_
Electrical_Assemble
Electrical
Electrical_Wiring
Quality_Finished Goods.

Quality_Mechanical assembly check:

Quality_Shearing
Quality_Punching
Quality_Bending
Quality_Welding
Quality_Drilling
Quality_Painting check.

Quality_Busbar preparation check:

Quality_Cutting
Quality_Punching
ATCO_Quali
Quality_Bending
ty
Quality_Drilling
Quality_Assembly in Panel

Quality_Electrical Assembly check:

Quality_Component Assembly
Quality_Base Plate Wiring
Quality_Door wiring
Quality_Labels and Dressing
Quality_Final Assembly.

Quality_Quality Inspection check

Quality_Shortages
Quality_Testing check
  CREATE STANDARD OPERATIONS

Responsibility: Bills Of Material Navigation: Routing > Standard Operations

Operation Code: DYSA Department: DYS_ASMLY
Standard Operations Department Resources Usage

ATCO_Mechinical_STD_OP ATCO_ Mechanical_Dept Check Resource List 10

ATCO_Painting_STD_OP ATCO_ Painting_Dept Check Resource List 15

ATCO_Electriacl_STD_OP ATCO_ Electical_Dept Check Resource List 5

ATCO_Quality_STD_OP ATCO_ Quality_Dept Check Resource List 10

 DEFINE OVERHEADS

Responsibility: Inventory Navigation: Setup > Costs > Sub-Elements > Overheads
Overhead Name: DYS_OVRHED Cost Element: Overhead
 DEFINE ROUTING

Responsibility: Bills of Materials Navigation: Routings > Routings

Seq Operation Code Department Resources Usage Inverse

ATCO_ Check Resource

10 ATCO_Mechinical_STD_OP 10  
Mechanical_Dept List

ATCO_ Check Resource

20 ATCO_Painting_STD_OP 15  
Painting_Dept List

ATCO_ Check Resource

30 ATCO_Electriacl_STD_OP 5  
Electical_Dept List

ATCO_ Check Resource

40 ATCO_Quality_STD_OP 10
Quality_Dept List
 
  DEFINE BILLS

Responsibility: Bills Of Materials Navigation: Bills > Bills

Bills Components Required Qty

Cabinet
ATCO_Control_Panle 3
Isolators
ATCO_Control_Panle 15
Relay
ATCO_Control_Panle 60
Fuses
ATCO_Control_Panle 45
Circuit
ATCO_Control_Panle 3
Cables
ATCO_Control_Panle 15
Power Supply
ATCO_Control_Panle 3
  UPDATE COST

Responsibility: Inventory Navigation: Costs > Standard Cost Update > Update Cost
 COST ROLL-UP

Responsibility: Cost Management

Navigation: Supply Chain Costing > Supply Chain Cost Rollup
Select the Organization as “ATCO ATEW OU"
 Output of "Supply Chain Cost Rollup - Print Report"
  INCREASE ONHAND QTY FOR COMPONENTS

 CREATE and RELEASE DISCRETE JOBS

Responsibility: Work In Process Navigation: Discrete > Discrete Jobs
 WIP ISSUE

 MOVE TRANSACTIONS

Responsibility: Work In Process Navigation: Move Transactions > Move Transactions

 WIP COMPLETION
 CLOSE DISCRETE JOBS

Responsibility: Work In Process

Navigation: Discrete > Close Discrete Jobs > Close Discrete Jobs (Forms)

 Discrete Job Value Report - Standard Costing

Journal Entries
oTransaction :Purchase Delivery to inventory

- Resulted accounting Entry:

 
DR. Inventory @ PO Price + Material
Overhead if there
CR. A/P Accrual @ PO Price
CR. Material OH Absorption @ Calculated Overhead
 
oTransaction: Receipt of Vendor Invoice
- Resulted accounting Entry:
 
DR. A/P Accrual @ PO Price
CR. Accounts Payable Invoice @ invoice Price
DR/CR invoice price variance
 
 
oTransaction :Issue Material from inventory to Job order
- Resulted accounting Entry:
 
DR. Work in process Inventory @ current average
CR. Inventory Valuation @ current average
 
 
oTransaction :Charge Labor Resource to Job order
- Resulted accounting Entry:
 
DR. Work in process Inventory @ Standard or actual employee rate
CR. Resource absorption @ Standard or actual employee rate
 
 
 
oTransaction :Charge Non Labor Resource (i.e. Machine )to Job order
- Resulted accounting Entry:
 
DR. Work in process Inventory @ pre-defend rate or actual employee rate
CR. Resource absorption @ pre-defend rate or actual employee rate
 
oTransaction :Charge Overhead to Job order
- Resulted accounting Entry:
 
DR. Work in process Inventory
CR. Overhead absorption
 
 
oTransaction :Finished Good Receipt /Complete Assemblies (Close Job Order)
- Resulted accounting Entry:
 
DR. Inventory @ calculated average cost + material overhead

CR. Work in Process Inventory @ calculated average cost

CR. Material overhead absorption @ calculated overhead
 
oTransaction :Sales Order Shipment
- Resulted accounting Entry:
 
DR. Cost of Goods Sold @ current average
CR. Inventory Valuation @ calculated average cost
 
 Cost Update Journal Entries
Inventory Std cost update

Sub Inventory A/c 100 Sub-inventory Material A/c Setup

Cost Adjustment A/c 100 At the Standard Cost update request level

Intransit material Std Cost Update

Intransit Inventory A/c 100 Shipping Network

Cost Adjustment A/c 100 At the Standard Cost update request level

WIP Material Std Cost Update

WIP Material A/c 100 WIP Accounting Class

WIP Material Variance A/c   100   WIP Accounting Class
Month-End Accounting Close
Close by Inventory Organization
Month-End Inventory, Receiving, WIP Value Reports
Closing Inventory closes Receiving and WIP
Purchasing has its own close (and also closes off Receiving)
Month-End Inventory Value Reports
• Inventory Value Report
• Intransit Value Report
• All Inventories Value Report
• Receiving Value Report
• WIP Value Report
• Period Close Value Summary Report
• Period Close Reconciliation Report
QA