Setting up Validity rules for Recipe in Oracle Process Manufacturing (OPM)

By using Validity Rules an organization can set the standard quantity and effective dates of a recipe to specify what, where, when, and how formulas, recipes, routings, and operations must be applied.

Prerequisite:

• Recipe

To know how to create a recipe, click the following link.

http://dj-oracleapps.blogspot.in/2014/02/creating-recipe-in-oracle-process_28.html

Navigation: Process Engineer > Recipes

Query the recipe for which the validity rule is going to be set & Click Validity Rules tab.

Enter the Organization that owns this Validity rule.

Validity Rule

Select Recipe Use as,

• Production for use in production of products.

• Planning for use in planning material consumption.

• Costing for use in establishing costs.

• Regulatory for use with hazardous or controlled materials.

• Technical for use in establishing technical classes and subclasses.

Enter a Product in the formula for the validity rule.

Enter the Preference number for the validity rule. When more than one formula can be used to produce the same product, this field indicates the validity rule that must be used first, second and so forth.

Enter the Standard Quantity of product made with the formula. This quantity is only used for product costing. It does not restrict quantities that can be produced with the formula.

Enter the Minimum Quantity of product that can be made using the Formula.

Enter the Maximum Quantity of product that can be made using the formula.

 

Theoretical displays the theoretical process loss based on the Validity Rule Standard Quantity.

Enter Planned Process Loss. This overrides planned process loss entered at the routing level.

Enter Fixed Process Loss. This value is defaulted to the value you entered in the Recipe Details window. If required, we can override this value.

Enter From date as the date the validity rule becomes effective. The date must be within the effective date for any routing associated to the recipe.

Enter To date as the date to stop using the validity rule. If an expiration date is not defined for the validity rule, then this is an optional field and must be left blank.

Step Quantity

The fields are view only.

Operation associated to the step will be displayed.

Step Quantity and its UOM indicate the quantity processed by the routing step and the unit of measure of the step quantity.

 

Now a validity rule is set for this Recipe. The system will not allow us to create a batch with this recipe, even if any one of the condition in the validity rule fails.

Note:

A validity rule cannot be approved for general use until its associated recipe is approved for general use. We can change the status of recipes or validity rules to on-hold or obsolete even if they are used in batches as long as all the batches are closed or canceled.

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APP-JA-460283: Organization location not falling under any category

When saving the organization additional information the note pops up,

This is the intended behavior of India localization functionality. Reason being in case of India localization the organization must be classified as "Manufacturing" or "Trading".

The classification can be done through providing the EC code either at the Tax info tab or Trading tab of Organization additional information. If you give the EC code at Tax info tab then the organization will be classified as "Manufacturing". If you give the EC code at Trading info tab then the organization will be classified as "Trading".

If the user does not provide EC code either at Tax Info Tab or at Trading info Tab then the Message "APP-JA-460283: Organization location not falling under any Category" will appear.

 

If the user has provided the EC code at Tax Info Tab then message "APP-JA-460280: Organization location falling under Manufacturing" will appear.

If the user has provided the EC code at Trading info Tab then message "APP-JA-460281: Organization location falling under Trading" will appear.

 

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Defining Cost Component class in Oracle Process Manufacturing (OPM)

The unit cost of an item is usually broken down into several buckets that can be attributed to the various sources that form the basis of the cost, for detailed tracking and analysis purposes. Cost Component Classes are used to identify the individual buckets or component costs that make up the total cost, for example, direct material costs, freight costs, labor costs and production or conversion costs and so on.

Any number of cost component classes can be defined and used to break down the item costs. The cost component classes are classified into 5 different elements or usages: Material, Resource, Overhead, Expense Allocation and Standard Cost Adjustment types.

Navigation: OPM Financials > Setup > Cost component classes

 

 Enter the code to identify Component class & Description for the class.

The Primary Component Class indicates the primary cost component class with which the component class you are defining now is associated. The default is the class code you specified in the Component Class. You can change the entry by selecting an already defined component class from the list of values.

Component Group is an optional entry that lets you further group the component classes for analysis and reporting purposes.

Defining Component Group:

Navigation: OPM Financials > Setup > Component Groups

Define the Component group and enter detailed description regarding the same.

 

Usage indicates if this cost component classification is being entered for use as a material, overhead, resource, or expense detail from routings. Select the suitable value,

 

Note: Once you set the usage indicator for a component class, it cannot be changed after costs have been defined using this component class.

Enter the Sort Sequence for the component class. It indicates the order in which component classes displays on forms and reports.

Product cost calculation indicator let’s you to flag whether the component class to be included or excluded from the cost rollup process. The options are,

• Include in Product Cost Calculation

• Exclude From Product Cost Calculation

Valuation Option indicator let’s you identify whether the component class must be used for valuing inventory or not. The options are,

• Will be used for inventory valuation

• Will not be used for inventory valuation

Purchase price variance calculation indicator let’s you to flag whether the cost for the component class is used in calculating the inventory valuation for purchase price variance (PPV). The options are,

• Include in Purchase Price Variance Calculation

• Exclude from Purchase Price Variance Calculation

 

This Component class will be used in Resource creation form.

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Defining Operations in Oracle Process Manufacturing (OPM)

Operations are a combination of activities performed in a production batch and the resources used to perform those activities. The Process Operation Details Activities window links operations to activities.

Navigation: Process Engineer > Process Operations

 

Enter the Operation code, version & description detailing about the operation.

Enter a Class for this operation to identify how it is categorized. Class is created in Process operation classes form.

Navigation: Process Engineer > Setup > Process operation classes

Enter the class code and description.

 

After entering the Process operation class, enter a Validate from & to date. By default the valid from date is system date. If there is no expiration date for this operation, leave the Valid to field blank.

Enter Owner organization for this operation.

Minimum Transfer Qty displays the minimum amount of material that must be produced in a step at a specific production operation and resource before the next operation can begin. It is used by planning to reduce bottlenecks by letting processes transfer an interim quantity of completed material to the next step without the requirement to complete the entire step.

Enter a Process Qty UOM for this operation

 

Activities:

To know how to define an Activity, click below link

http://dj-oracleapps.blogspot.in/2014/02/defining-activity-in-oracle-process.html

Enter an Activity required for this operation.

Enter the Activity Factor to specify the number of times the activity is performed in this operation.

 

Sequence Dependency is selected when the activity has a sequence dependent setup.

Enter the Offset Interval as the time delay from the start of the activity to the point where the resource is actually required.

Breakable indicates whether the activity can be broken.

Max Break indicates the maximum duration of the break if the activity is breakable.

Material Scheduled is used in conjunction with the planning and scheduling application to show the activity consumes material.

 

Now we have to assign the resource to activity (Resource used to perform the activity), Click Resources.

To know how to Create resource, click the following link

http://dj-oracleapps.blogspot.in/2014/02/creating-resources-in-oracle-process.html 

Enter the resource.

Throughput:

Enter the planned Process Quantity for the resource.

Enter the Planned resource usage

 

Cost Information:

The Component class field will be defaulted from Resource.

Cost Analysis code will be defaulted from Activity.

 

Scheduling Information:

Select the Plan type as per the need,

• Primary - Select Primary to indicate the rate determining resource. It limits or determines throughput. There can only be one primary resource.

• Secondary - Select Secondary for resources that work as companions with the primary resource.  Secondary resources affect the rate if the duration of the secondary resource is longer than the primary resource.

• Auxiliary - Select Auxiliary for resources that work as companions with the primary resources to perform an activity in the operation. Auxiliary resources affect the rate if the duration of the auxiliary resource is longer than the primary resource.

Enter the Count as the number of resources needed for the activity entered. For example, if two blenders are used for mixing, enter a 2 in the count

Enter the Offset Interval as the time delay from the start of the activity to the point where the resource is actually required.

Select the Scale type accordingly,

• Proportional - if the resources change in a ratio to the quantity of material being processed.

• Fixed - if the resources do not change, regardless of the quantity of material being processed.

• By Charge - if the resources change as a result of the number of charges specified.

 

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