Phantom Assembly

What exactly is a Phantom item or Assembly means?

Can anyone plese tell me what exactly is a phantom item or assembly means?
How does it affect the MRP process?

Phantom Supply Type (what Oracle says)

• Phantom components can be assigned to bill of material component subassemblies and

subassembly items in Oracle Bills of Material and Oracle Engineering. Components of phantom
subassemblies are used as if they were tied directly to the parent assembly. Phantom supply
types cannot be assigned to jobs and repetitive lines/assembly associations in Work in Process.
See: Phantoms.

• Phantoms behave normally when they are top level assemblies, such as when master
scheduled or manufactured on a discrete job. As subassemblies, they lose their distinct identity
and become a collection of their components. Phantom components (not the phantom itself) are
included on discrete jobs and repetitive schedules and are listed on the Discrete Job and
Repetitive Schedule Pick List Reports

.• Oracle Master Scheduling/MRP and Supply Chain Planning plans phantom subassemblies
with lot- for-lot lot sizing. Otherwise, phantoms are planned like other assemblies. You must set
the lead time of a phantom to zero to avoid lead time offset during the planning process. Oracle
Master Scheduling/MRP and Supply Chain Planning ignores demand time fences, planning time
fences, and order modifiers when planning phantom subassemblies

.• When assembly costs are rolled up in Oracle Cost Management, the material costs, but not
the routing costs, of phantom assemblies are included in the cost of the higher level assemblies
that include those phantoms.
A phantom assembly is used when you want to be able to structure a BOM so it is easy to
understand, but don't want to create too many production orders.

Phantom assemblies are assemblies that have their own product structure, but whose assembly
does not actually physically exist. The components of the phantom assembly are incorporated
directly in the superordinate product. The product structure of the superordinate product
contains a reference to the phantom assembly.
A phantom assembly can be referenced more than once in the same product structure. Changes
are visible and effective immediately at all usage locations.

A Phantom Assembly is an grouping of child parts and or sub-assemblies for some convenience,
and usually only within the context of a large, complicated product. Generally phantom
assemblies are not made or sold (that is done using a higher-level, or parent, part number).
Concepts

Phantom assembly items, also known as make-on-assembly, are parts that have a bill of
materials, but are not usually produced with a work order. Rather, they are produced as part of a
parent assembly. The material requirements for a work order would not include the phantom
item, but would include all of its components. This allows a more structured organization of the
bill of materials, without adding more work orders or stocked assemblies.

Assume an auto Engine. There are hundreds of components. You might structure them as:
Engine block and parts, camshaft and parts, and 8 piston assemblies. But you don't want to
create 3 production orders, too much hassle. So you want to issue the components for the
piston assembly in the same production order as the Engine block. So you create a new
material number for the Piston assembly, but you mark it as a phantom assembly. That means
that when you create the bom for the Engine assembly, you only have two assemblies, the
Engine block and the Camshaft. You add the phantom assembly for the Piston Assembly to the
Engine block BOM, saying it requires 8 of the phantom assembly. When the production order is
created for the Engine block, the picklist will also include all of the components of the 8 piston
assemblies.
1) When to use, or not use a phantom assembly?
If you need to do cost accounting on how many hours it takes to assemble a piston assembly, it
cannot be a phantom assembly, because as a part of the Engine block assembly, the labor costs
are included in the Engine block production order, and therefore in the standard cost.
2) Can the assembly people pick out the parts for the phantom assembly from the all of
the components in the Kit?
If the guy assembling the Engine Block gets confused because of all of the components for the
Piston assemblies are there, then it cannot be a phantom assembly. But if they can seperate
them easily, go for it. A printed circuit board assembly should never be a phantom assembly,
because all of those little parts for each type of PC board must be kept separate.
3) Do you usually build 100 piston assemblies, put them into stock, then issue 8 at a time
to build an Engine Assembly?
If so, it is not a phantom assembly. If the Piston assembly is a phantom, you only build the 8 you
need while you are building the Engine Block assembly. You normally do NOT store a piston
assembly (phantom assembly) in stock.
4) However, sometimes a customer calls and wants you to send them all of the
components for One Piston Assembly.
By having it set as a phantom assembly, even though you don't usually create separate
production orders, in this case you CAN create a production order for one, pull the components,
close the PO, and send the parts off to your customer.
5) You complete an Engine Assembly.
As you are walking it back to the stockroom, you drop it on the floor, and it breaks! Damn, but
you can still save the piston assemblies. Since they do have a SAP material number, you CAN
put those back into stock. Most MRP systems WILL recognize that you happen to have 8 piston
assemblies in stock, and will issue those whole assemblies to the next order for a Engine Block.
http://oracleebslearning.blogspot.in/2014/04/phantom-assembly.html

http://functionalguy.blogspot.in/2008/05/how-to-create-configurable-bom.html#axzz4erzTV57M

http://oracleapplicationsfunctional.blogspot.in/2011/09/bills-of-material-types-in-oracle-apps.html

http://ebiztechnics.blogspot.in/2016/09/oracle-applications-work-in-process-phantom-items.html

http://ebiztechnics.blogspot.in/2016/09/oracle-applications-work-in-process-phantom-items.html