Oracle Process Manufacturing

R12 Inventory Convergence

Copyright 2006, Oracle. All rights reserved.

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.

Copyright 2006, Oracle. All rights reserved.

Convergence at a Glance: Before

Order Management

Procurement

OPM Inventory

OPM

OPM

OPM

ASCP

Discrete Inventory

WIP

Costing Quality

Production Costing Quality

Copyright 2006, Oracle. All rights reserved.

Convergence at a Glance: After

Order Management

Procurement

ASCP

Oracle Inventory

OPM

OPM

OPM

WIP

Costing Quality

Production Costing Quality

Copyright 2006, Oracle. All rights reserved.

Inventory Convergence Benefits

Central View of Inventory
Central Item Master & On-hand
balances in one application.
Inventory transacted by one system

Enhanced Inventory Functionality

Enhanced Lot Tracking for discrete users.
VMI, Consigned, Enhanced Replenishment &
reporting capabilities for process users

Integrated Supply Chain

Seamless integration to other products like
WMS & MSCA available to Process users

Copyright 2006, Oracle. All rights reserved.

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

Copyright 2006, Oracle. All rights reserved.

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

Copyright 2006, Oracle. All rights reserved.

Enhanced Lot Control

Sublot Tracking
Lot Level UOM Conversions
Lot Indivisibility
Additional Lot Attributes
Grade, Origination, Retest Date, Expiration Action Code,
Expiration Action Date, Maturity Date, Hold Release Date

Copyright 2006, Oracle. All rights reserved.

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 notifications
Create maintenance work orders
Quarantine expired inventory

Copyright 2006, Oracle. All rights reserved.

OPM Convergence Caveats

Discrete WIP does not support any of the new OPM
Convergence features
Inventory 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

10

Copyright 2006, Oracle. All rights reserved.

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

11

Copyright 2006, Oracle. All rights reserved.

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 methods
Vendor-Managed and Consigned Inventory
Warehouse Management [Additional License]
Mobile Supply Chain Applications [Additional License]
Labor Management
Additional Lot Management Transactions in MSCA
Lot Merge
Lot Split
Lot Translate
Flexible Attribute Definition / Attribute Inheritance
Leverage move orders and reservations in Batches

12

Copyright 2006, Oracle. All rights reserved.

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

13

Copyright 2006, Oracle. All rights reserved.

Item Master with Process Attributes

Setups
Item Templates
Item Categories
and Category Sets
Item Status
Item Relationships
Restrict
Subinventories
and Locators

14

Copyright 2006, Oracle. All rights reserved.

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.

15

Copyright 2006, Oracle. All rights reserved.

Lot attributes added in item definition

16

Copyright 2006, Oracle. All rights reserved.

Query on Lot Attributes

17

Copyright 2006, Oracle. All rights reserved.

Organization Structure Changes

Parent
Company

Ledger

OPM Company

Legal Entity

Plant or Lab

Inventory Org
OPM
Warehouse
Subinventory

18

Locator

Locator

11.5.10

Release 12

Copyright 2006, Oracle. All rights reserved.

Operating Unit

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

19

Copyright 2006, Oracle. All rights reserved.

Material Workbench

20

Copyright 2006, Oracle. All rights reserved.

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

21

Copyright 2006, Oracle. All rights reserved.

Material Status Usage

Bulk

Subinventory Status:
QC HOLD (Disallows Sales Order Issue)

B1.1.1

Locator Status:
Active (Disallows Sales Order Issue)

L123

Material

22

Lot Status:
Quarantine (Disallows Misc Issue, Sub Transfer)
Effective Status:
Disallows Sales Order Issue,
Misc Issue, Sub Transfer
Copyright 2006, Oracle. All rights reserved.

New Transactions

23

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

Copyright 2006, Oracle. All rights reserved.

Common Inventory
Replaced Processes

24

Former OPM Inventory Function

Oracle Inventory Function

Inventory Adjustments

Miscellaneous Transactions

Transact Process Move Order

Move Order

Physical Inventory

Physical Inventory

Cycle Count

Cycle Counting

Move or Transfer

Move Orders, Interorg

Transfers or Internal Orders

Copyright 2006, Oracle. All rights reserved.

Common Inventory
Replaced Processes
Former OPM Inventory Function

Oracle Inventory Function

Grade or Status
Change

Material Workbench

Inventory Close

Close Inventory Period

Inquiries and Summary

Views

25

Material Workbench and Transactions

Lot Genealogy

Post Journals

Inventory Interface

Purges

Purge Completed Transactions

Copyright 2006, Oracle. All rights reserved.

Thank You
Thank You

Copyright 2006, Oracle. All rights reserved.