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Sunday, February 14, 2016

Interface Trip Stop – SRS Program

Tuesday, February 9, 2016

Inventory Cost Accounting Method selection for a Manufacturing Organization: Average Vs Standard Costing


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Download White Paper: Inventory Cost Accounting Method selection for a Manufacturing Organization: Average Vs Standard Costing

 

 

 

Oracle Process Manufacturing - Implementation Questionnaire

Inventory
--How many different products within the product line?
--Total how many ingredients and byproduct items present within the product line?
--Are there any intermediate items which are stocked in inventory?
--What are the main inventory keeping locations within the manufacturing plant
--Are Finished Goods Lot and Grade controlled?
--Are Raw Materials Lot and Grade controlled?
--What are the main unit of measures used?
--Is the stock tracking done in multiple units for the same item?
--Are different pack-sized Finish Products treated as different Items / SKUs?
--Is the shelf life maintained for different ingredients / products ?
--FG Storage happens in same warehouse or different?
--Reusable waste Storage locations?
--Are the Co-products produced during batch processing?
--Whether Items have Version control?
--Lot numbering/sequencing?
--How are packaging materials defined in inventory - Diff. item codes for diff type of containers / packaging?
--On what basis the material is moved from main storage to production floor?

Product Development
--Do multiple formulas / recipes exist for one product?
--Version control for formulas, recipes and routings?
--Codification logic for formulas, recipes ?
--How frequently does the formula / recipe change ?
--Process loss information available in formulas?
--Are scrap / waste items defined and used in formulas?
--Creation and Approval process of Recipe/Formula?
--How packaging waste is handled?
--Is there any tracking of technical parameters / process parameters like moisture content etc.in formulas / recipes?
--Are formula / recipes maintained in baan system ? Availability of data?
--Is the resource (equipment/man-power etc.) tracked in the system ; data availability?
--Are routings (operation steps) maintained in the system; availability of data?
--Are the packing materials defined as a part of formula?


Process Execution
--What % of production is MTO?
--What is the basis for daily production - Manual / System generated production schedule ?
--How many batches are processed within a day?
--Finished Good is produced through a single batch or a series of batches for different intermediates?
--What arte the intermediates which are stocked in inventory?
--Is there any sub-contracting process involved?
--How is production data captured presently? -- Through system driven batch execution or manually in excel sheets?
--How frequently production data is captured?
--What all information is captured for production?
--What is the general range of batch size?
--How is scrap generation and rejection process handled?
--How is rework process handled?
--How many shifts of production? Is there 24 Hr operation?
--Are the production batches linked to sales orders in "Make To Order" scenario
--Automatic numbering of batches?
--How is process loss tracked?
--Any inventory keeping locations within the production line or continuous process?
--How is variance tracking (between planned and actual usage - material / resources) done for production batches?
--What are the interaction points of production department with other departments?
--What all PLC / equipments linked to prouction system?
--What is the WIP reconciliation process followed at period ends?

Quality Control

--What are the different stages of quality inspection?
--How is the quality inspection data recorded - Manual or system ?
--Is the material tagged with quality grades after quality inspection?
--How is rejected item treated, what is the process followed for the same?
--Item / Vendor / Customer quality specifications maintained in the system ?
--Is quality inspection done on the basis of sampling plans?
--Criteria for defining inspection samples and conducting quality checks?
--Material expiry and shelf life tracking ?
--Quality department structure?
--How is communication managed between quality and other departments?
--Any approval methodology followed within QC ?

Costing
--Costing method for raw materials?
--Costing method for Finished goods?
--How is resource cost (equipment, man-power) tracked? Is it a part of FG direct cost?
--How is overhead cost managed ? Tracked at an aggregate level or product level?
--Present accounting process for production related transactions?

Oracle Process Manufacturing (OPM) – Setup Quickie!!



Oracle Process Manufacturing (OPM) – Setup Quickie!!

This post is first in a series of Quick reference guides which I term as “Quickie”. This quickie has been created with an objective of providing an easy step-by-step reference guide for OPM Setup steps across different OPM modules (Oracle Applications – e Business suite Release 12). Details for each step are widely available in User guides and installation guides published by Oracle. The Quickie can also act as a good tracking tool for OPM setup activities. If you find this helpful, please do leave a comment.





Inventory   
0 Define and build Inventory Calendar
1 Define Inventory Organization
2 Org Parameters
3 Subinventories
4 Locators
5 UOM Classes
6 UOMs
7 Define Items
8 Picking Rules
9 Pick Slip Grouping Rules
10 Org Access Setup (After full   configuration is done)
   
OPM  Costing  
1 Define Cost type
2 Define Cost Calendar
3 Define Component Group
4 Define Cost Analysis
5 Costing Org Association
6 Fiscal Policy
7 Assign Ledger
8 Percentage overhead
9 Defining resource cost
10 Fixed overhead (resource   overhead)
11 Rollup Source e Organization
Sub-Ledger Accounting (SLA)   
1 Create account derivation rule along with conditions
2 Journal line definition
3 Applications Accounting   Definition (AAD)
4 Associate the AAD with the Sub   ledger Accounting Method
5 Assign this SLAM to the Ledger.
   
System Administrator  
  Profiles
1 TCF:Host
2 TCF:Port
   
OPM Product Development Security Manager  
1 Organization Parameters
2 Profile Options
3 Security Control
4 Setup Laboratory Organization
   
OPM Product Development Security Profile Manager  
1 Security Profiles
   
OPM Product Development  
1 Technical Parameters
2 Density Technical Parameter   (Must – Ratio between base mass uom and base volume uom)
3 GMD: Density Profile
4 GMD: Technical Parameter   Category Set
5 Technical Parameters Sequence
6 Item Technical Data
7 Technical classes and   sub-classes
8 Master Creation (Formulas,   activities, recipes etc.)
9 Simulator can be run to update   the user defined parameters
   
OPM  System Administrator  
1 Paragraph setup
2 Session Parameters
3 Reason codes, document types,   nos. can be viewed
4 Tokens
5 Workflow Process Activation and   configuration
   
Bill of Materials  
1 Setup Workday Calendar
   
OPM Process Execution  
1 Setup Parameters
2 Make to Order Rules
3 Profile Options
   
OPM Process Quality  
Process Quality enabled items
2  Lot, Status and Grade control   item attributes
3 Setup Action Codes (user actions   to be performed for out of specification results)
4 Setup Grades
5 Review / edit material status   closed (lots can be assigned different statuses based on quality results and   inspection)
6 Reason code access
7 Setup specifications (at   customer order level, item level etc.)
8 Setup Tests
9 Test Classes
10 Test Groups

Saturday, February 6, 2016

Oracle OPM product Strengths

For those who are very new or not aware to Oracle OPM product, here are some of high points of Operational Functionality that product offered.Moreover there is significant changes has been seen in age of internet that has re-defined the operation of the supply chain(SCM) thus Oracle OPM Products too.
Please Check with Oracle OPM Page, to see what are the recent changes has been incorporated. based out of my exposure very long time back, these are the functionlity that product had.
  • Lot Traceability :In this some features like Lot/Sub lot,Forward/Backward Genealogy,Status Control
    ,Grade Control,Lot Expiration,Allocation for Shelf Days
  • Multiple Formulas (Bills) :These are typically used for formulas for production, costing planning, MSDS,Effectivities By Date for Seasonality,Effectivities by Quantity,Scaling,Alternate Routings,
    Scrap factors and theoretical yield
  • Support for A and V type Formulas : All three kind of formula like well suited here:
    • V Bills are constructive- Multiple ingredients one product
    • A Bills are destructive- One ingredient, multiple products
    • A Bills support co-products and- by-products
  • Ingredient Substitutions
    • The features like mass ingredient substitutions for formulas
    • Designed for ingredient substitutions in manufacturing orders (batches)
    • Manufacturing variances for substitutions tracked and reported.
  • Dual UOMs functionlity
    • Item specific UOMs
      • Count to Mass
      • Count to Volume
      • Mass to Volume
      • User defined UOM types
    • Lot specific UOMs
    • Dual UOM Types
      • Fixed
      • Defaulted with tolerance
      • No relation
    • Uses
      • Sell by count, invoice by weight
      • Dry pounds, wet pounds
      • % solids, % moisture
  • Specification Matching Functionlity
  • Some of the great features like
    • QC Specs and Results : This may be based out of vendor,customer,plant or by lot
    • There was yet another feature for customer spec matching.
  • Regulatory Compliance
    • Material Safety Data Sheets (MSDS) are configurable, also formulas for MSDS
  • Other features are flexible Costing, which can be either processIf Costing (Standard,Actual) or Organization Level basis (Warehouse,Item)

What you should know about Oracle OPM products

Oracle OPM designed exclusively for catering the business need for process manufacturers industry like:
  • Consumer Packaged Goods
    • Food, Beverage, Health and Beauty, Household Products
  • Industrial Products
    • Chemical, Pharmaceutical, Petroleum, Metals, Mining, Paper and Glass

Is there any difference from Oracle Discrete Manufacturing?

Yes, there is ..If you came from Discrete manufacturing background, these are one -to-one mapping between modules.
difference OPM and Discrete

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