Inventory Convergence 1207719805

Copyright © 2006, Oracle. All rights reserved.

Oracle Process Manufacturing

R12 – Inventory Convergence

Copyright © 2006, Oracle. All rights reserved.2

Purpose:This document provides an overview of features and enhancements included in Release 12. It is intended solely to help you assess the business benefits of upgrading to Release 12.

Disclaimer:This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.


Convergence at a Glance: Before

Order Management Procurement

OPM Inventory

ASCP

OPM

Quality

OPM

Costing

OPM

Production

Discrete Inventory

QualityCostingWIP


Convergence at a Glance: After

Order Management Procurement ASCP

OPM

Quality

OPM

Costing

OPM

Production

Oracle Inventory

QualityCostingWIP


Enhanced Inventory FunctionalityEnhanced Lot Tracking for discrete users.

VMI, Consigned, Enhanced Replenishment & reporting capabilities for process users

Enhanced Inventory FunctionalityEnhanced Lot Tracking for discrete users.

VMI, Consigned, Enhanced Replenishment & reporting capabilities for process users

Inventory Convergence Benefits

Central View of InventoryCentral Item Master & On-hand

balances in one application. Inventory transacted by one system

Central View of InventoryCentral Item Master & On-hand

balances in one application. Inventory transacted by one system

Integrated Supply ChainSeamless integration to other products likeWMS & MSCA available to Process users

Integrated Supply ChainSeamless integration to other products likeWMS & MSCA available to Process users


Material Status Control

• Determine disallowed transactions by lot, serial, subinventory or locator

• ATP-able, net-able and reservable attributes will move to the material status level– Not available to serial statuses

• Planning & Reservations will honour status

• This functionality no longer requires WMS

Products


Dual Unit of Measure Control

• Track on hand balances in two separate units of measure where there is no constant conversion– Eg – number of chickens and weight

– Eg – rods of rebar and actual length or weight

• Transact, reserve, view on hand and availability by multiple units of measure

• Planning and Costing will still be done based on the primary quantity


Enhanced Lot Control

Sublot TrackingLot Level UOM ConversionsLot IndivisibilityAdditional Lot Attributes• Grade, Origination, Retest Date, Expiration Action Code,

Expiration Action Date, Maturity Date, Hold Release Date


Material Aging Workflows

Initiated when any selected date attribute of a lot or serial is within X days of the current date• Trigger from expiration date, best by date, retest date or

any of the 20 other date fields & flexfields on lots or serials

Send expiration notificationsCreate maintenance work ordersQuarantine expired inventory


OPM Convergence Caveats

Discrete WIP does not support any of the new OPM Convergence featuresInventory transactions will not fail• Dual Units of Measure – Inventory will default the

secondary quantity based on the default conversion• Material Status – at receipt, the default status will be

assigned. At issue, the transaction will succeed whether or not the status allows it

• Indivisible lots – the lots will be transacted in whatever quantity is suggested by WIP (this could be part of the lot)

• Sublot Control – The parent will not be assigned• Lot Attributes – default value will be assigned


Inventory Enhancements

Reserve Purchase Orders & Work Orders

Reserve Serial Numbers

Genealogy Enhancements

• Lot to Lot, Lot to Serial, Serial to Lot

• View Quality Results, Material Status Changes, Grade Changes in Genealogy Form

View Inbound Balances in Material Workbench


New Features for Process Industry Users

Central item master• Organization specific item attributes• Leverage Product Data Hub (PDH) [Additional License]

Improved Physical and Cycle Counting methodsVendor-Managed and Consigned InventoryWarehouse Management [Additional License]Mobile Supply Chain Applications [Additional License]

• Labor ManagementAdditional Lot Management Transactions in MSCA

• Lot Merge• Lot Split• Lot Translate• Flexible Attribute Definition / Attribute Inheritance

Leverage move orders and reservations in Batches


Central Item Master

Items defined by organization

Attributes added to Item Master in Oracle Inventory

• Dual unit of measure control

• Grade-control

• Indivisible lots

• Support for “child lots” (replace “sublots” in OPM)

• Process Manufacturing flags


Item Master with Process Attributes

• Setups– Item Templates

– Item Categories and Category Sets

– Item Status

– Item Relationships

– Restrict Subinventoriesand Locators


Item Organization Assignment

If the DUOM fields are controlled at child level then DUOM fields can be changed while assigning the item to a organization.


Lot attributes added in item definition


Query on Lot Attributes


Organization Structure Changes

Inventory Org

Ledger

Legal Entity

Locator

Subinventory

Operating Unit

Release 12

OPMWarehouse

Locator

Plant or Lab

OPM Company

11.5.10

Parent Company


Material Workbench

• Material Workbench is primary tool for querying and viewing inventory balances

• Tree Structure to facilitate browsing on-hand inventory

• Detail Pane to view details of on-hand information

• Summary view shows quantity across organizations

• Supports material On-hand, in Receiving, Intransit, Yard, Outbound Intransit


Material Workbench


Material Status

• Material Status is used to selectively restrict the use of certain material

• Material Status is defined to disallow certain transactions and specify whether material is ATP-able, Nettable, and Reservable

• Material Status can be assigned at Subinventory, Locator, Lot, and Serial levels


Material Status Usage

BulkSubinventory Status:QC HOLD (Disallows Sales Order Issue)

B1.1.1Locator Status:Active (Disallows Sales Order Issue)

L123

Effective Status:Disallows Sales Order Issue,

Misc Issue, Sub Transfer

Material

Lot Status:Quarantine (Disallows Misc Issue, Sub Transfer)


New Transactions

• Deferred Cost of Goods Sold support

• Shared Services in Purchasing (Global Procurement)

• Advanced Drop Shipments

• Miscellaneous Receipts and Issues

• Sub-Inventory Transfers

• Transfer materials from Discrete to Process organizations


Former OPM Inventory Function Oracle Inventory Function

Common InventoryReplaced Processes

Inventory Adjustments Miscellaneous Transactions

Transact Process Move Order Move Order

Physical Inventory Physical Inventory

Cycle Count Cycle Counting

Move or TransferMove Orders, Interorg

Transfers or Internal Orders


Former OPM Inventory Function Oracle Inventory Function

Common InventoryReplaced Processes

Grade or StatusChange

Material Workbench

Inventory Close Close Inventory Period

Inquiries and SummaryViews

Material Workbench and TransactionsLot Genealogy

Post Journals Inventory Interface

Purges Purge Completed Transactions

Inventory Convergence 1207719805

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