Outside Processing Setup Checklist

Outside processing in Oracle Work in Process allows users to substitute vendor l

abor for in-house labor on a routing. The setup is long and complex. This paper
provides a checklist of how to define OSP resources in Oracle to help users avoi
d some of the more common problems.
Overview
The Outside Processing process comes into play in Oracle Work in Process wheneve
r all or part of the labor on a routing is performed by a third party vendor. Mo
re than one step on a routing can be performed by third parties. In Oracle, a li
nk has been defined between Oracle Work in Process and Oracle Purchasing to auto
mate the process of creating a purchase order to the vendor who will perform the
OSP labor.
Because what is being purchased is LABOR, one requirement to using this process
is to define a resource for each type of labor to be purchased. An item in the I
tem Master must also be defined for each type of labor to be purchased, and link
ed to the resource when it is defined. The item must be classified as an outside
processing item.
Although this resource item is purchasable and transactable, it will never be rece
ived into or issued from a subinventory. Instead, receiving this item from the p
urchase order will cause a move transaction to occur on the WIP routing so that
the outside operation step is completed when the items are received back from th
e vendor. It is important to note that the item must not only be received, but m
ust also be delivered before the outside operation is deemed complete by the sys
tem.