OPM OSP Solution 12.2.4 Version

ATTENTION – AUDIO Options
Option 1: Option 2:
Voice Streaming Audio Broadcast Teleconference (Dial In)
• No need to dial in on a telephone • Requires telephone to dial in
• Questions can be asked in the WebEx Chat • Questions can be asked over the phone or in the
panel WebEx Chat
• Details • Details
– Conference ID: “Oracle OPM”
– International dial in: +1-706-758-7972
– US Free call: 1-866-627-3315
– List with national toll free numbers is available
in Doc ID: 1148600.1
– View anytime during the conference using
Communicate > Teleconference > Join
Teleconference from your WebEx menu
Upcoming: Outside Processing (OSP) for OPM in 12.2.4
Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 2
Upcoming Advisor Webcast Schedule
 Check out Doc ID : 740966.1
 Select your Product Area

E-Business Suite  Manufacturing
 Scan through the list of Current Topics
 Register for the session(s) of your

interest
Upcoming: Outside Processing (OSP) for OPM in 12.2.4

Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. 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 for Oracle’s products remains at the sole discretion of Oracle.

Oracle Advisor Webcast
Outside Processing (OSP) for OPM in 12.2.4
Nelsedine Ziani, Principal Software Engineer
June 23, 2015

Objectives
• Concepts and Features of OSP for OPM
• Introduced changes and required setup
• Implementation Considerations

Agenda
1 OSP for OPM: Outsourcing at Operation / Step Level

2 Business flow /System Flow
3 Setup and Process
4 Implementation considerations

Agenda

3 Setup and Process

E-Business Suite Outsourced Manufacturing Solutions
Comprehensive Support for Multi-Tiered, Mixed-Mode Outsourcing
• OPM Planned Support: A
• Phase 1: Outsourcing at
Drop Ship
Components
OEM B C MP A
Manufacture Assembly Process
RMS
Operation / Step Level – Process In-

house 10
Ship PFA
Receive PFA
B
Buy Components B C
introduced since 12.2.4+ Process

Outside 20 20
C
B C Ship Components
• Dashboard – Endeca – TBD

Ship PFA
Receive PFA Receive Assembly
Process In- 30
A
house
MP
OEM
• Complete Outsourcing - TBD

• Chargeable Subcontracting Drop Ship Drop Ship
Components Components
A RMS A
• Non-Chargeable RMS
B
Subcontracting B
Buy Components
B C
B
Buy Components C
C
C
• Buy/Sell Subcontracting B C Virtual Sale of Components B C Sell Components (with Markup)
Virtual Buy of Assembly Buy Assembly A

A
MP MP
OEM OEM

Background for OPM OSP
Number One Enhancement request in SIG voting
• Requirements were gathered from customers of various industries

• Metal Industries – Alcoa, Macsteel, Charter Steel, ATI Metals, US Steel
• Food and Beverages –Schreiber Foods, Amy’s Kitchen
• Life Sciences – Colorcon,Beckman Coulter, Thermo-Fisher, Agilent Technologies
– Majority of customers preferred Outside Processing to the Outsource

Manufacturing.

Agenda

3 Setup and Process

Oracle Process Manufacturing Business Flow
Outside Processing (OSP) – Phase 1
Batch Recipe
Process Routing
Formula
Step 10
Step20
Ingredients Product
Step 30
Manufacture Process Outside Process

In-House Process Ship
10
Outside Process 20 20
In-House Process 30
Receive

System Flow Diagram for OSP
Phase One
Create OSP Create

Release Batch Purchase Create and Complete
Item, Resource, Step requiring
Process Requisition Release PO Line Batch Step
& Batch Step OSP
Appl.
OPM OPM Procurement Procurement OPM
• Supports outsourcing of service, where shipment of material is not required.
• Standard costing supported.
• Creation of Purchase Requisition allows cross referencing the Batch Step Number.
• PO Line is Batch Step Number aware at all times, as it is created from the same Purchase Requisition.
• Batch Step can be queried at any time to inquire about receipt of PO Line.
Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

OPM – Outside Processing
Key Features – Phase 1
• Automatic or Manual creation of Purchase Requisitions/Purchase Orders at various batch/step stages.
• To identify the step for outside processing and payment of services according to either number of units/products
or resource usage hours.
• Synchronization of Batch and Purchase Order Changes
•Batch quantity and date changes to be propagated to PO
• Costing of the OSP resources either at Standard Cost or PO price
• OPM Outside Processing Report to view various batches with OSP steps and corresponding PO details.
• Quality inspections for Outside Processing.

Agenda

3 Setup and Process

Changes in forms as part of Outside Process
Generic Resource form
New flag “Outside Processing”:

• Govern the definition of
Resource as OSP when used as
plant Resource
• No more editable if resource is
used in any operation

Plant Resource form
Association of Resource with
the OSP item is done in this
form:
• Flag Outside processing
dependent on OSP setup
as Generic resource level
• Can associate different
OSP items to same
resource in different
plants
• Selecting Cost Source:
« Resource Cost » or
« PO price », drives
which cost is included in
batch product cost.

Process Execution Parameters form
New Tab “Outside Processing”:
• Requisition can be created:
- upon batch event (create
batch, release batch or
release batch step).
- or manually by user.
• Batch changes are reflected
to Requisition/PO
automatically or manually.
• Need by Date Tolerance
controls the ability to change
the PO need by date .

Setup example: from OSP item (Assembly) to Recipe
Create Outside Processing Item
(Inventory > Items >

Master/Organization item) :
Tab Main
• If Item is assembly, the item's
UOM must be same as the
primary item's UOM in batch.
• If Item is Resource, the item's
UOM must be same as the
OSP resource in batch.


Tab Inventory
• Item C3000001 is setup as
non inventory item.
• Item must be assigned to all
the Organizations that will
own/use this outside service
item.


Tab Purchasing
• Existing functionality: Flag
«Outside Processing Item»
• Two possible Unit Types:
Assembly or Resource

Create Generic Resource
Process Engineer > Setup>

Generic Resources :
• Flag as« Outside Processing»

Create Plant Resource

Plant Resources :
• Flag as« Outside Processing»
• Resource is associated to
service Item C3000001
• Resource Cost will be used to
compute cost

Create Activities and Operations

Activities
Process Engineer > Operations
• Create Activity
OSP-CIPRO_INT »
• Create the Outside Operation
C4000001_10 and set it to
use the Outside processing
Resource C-BLENDER1

Create Process Routing
Process Engineer > Process

Routings
• Step 10 is the Outside step

OSP operation

Create Formula and then Recipe
Formulator > Formula

Formulator > Recipe
• OSP item UOM (KGM) is

same as the UOM of
primary product C4000001
• Step 10 is the outside
processing step.

Demonstration

Agenda

3 Setup and Process

Execution
Batch Step
Create Batch Create/Approve Req
OSP -
Process Create /Approve PO
Release Batch
Receive OSP Item
Create Resource Trx

Release Step
Complete Complete Step
Update Actual Step Qty

Close

Costing
• Costing Methods
– Standard, Actual and Lot Costing
• Resource Costing
– OSP Resources will be valued in all costing methods at standard resource cost or actual PO price, based on the cost source
setup
• Batch Completion
• Products in Standard Costing organizations will have OSP cost as the standard cost defined for the OSP Resource
• Products in Actual and Lot costing organizations will acquire their OSP cost on batch completion, as either the resource cost or
PO price depending on the Cost Source setup.
• Batch Close
– On batch close in Standard Costing, the difference between standard resource cost and PO price will be relieved as batch close
variance, if cost source is defined as PO price.

Reporting – OPM Outside Processing report
Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Features deferred to future releases
• Material Shipment and Shipment Document
• Ability to open PO from Batch Detail Window

• Partial Material Shipment
• Ability to track the delay in procuring/receiving the OSP
• Automate the manual creation of PO through Concurrent Program
• Workflow Notifications
• Multiple Outside Processing Steps per Batch
• Endeca Extension

References
• Patch 20784036:R12.GMA.C : on top of 12.24 -This patch provides OPM
the capability to enable step level outside processing feature
• Readme/Release Notes: Oracle Process Manufacturing Batch-Step Outside

Processing Release 12.2.4 Readme (Doc ID 1990427.1)
• White Paper: Oracle Process Manufacturing Outside Processing -

Operation/Batch (Doc ID 1986184.1)
• OPM Process Execution User's Guide – Release 12.2 - Part No. E49068-04
See Chapter 10: Outside Processing in Oracle Process Manufacturing

• To ask a question on the phone
line, select *1 on your phone.
• To ask a question online, use the
Chat area at the top.
Q&A
• Your question will be read aloud in
the order received.
• Question can also be asked on the
My Oracle Support Communities

Top Articles and Community Links
 Process Manufacturing Information Center [ID
1393312.2].
 Process Manufacturing (OPM) Advisor Webcast
Calendar/Archive [ID 1064676.1].
 Oracle Advisor Webcast Schedule [ID
740966.1].
 Continue the Discussion on the Process
Manufacturing My Oracle Support Community.
 What advisor webcast topics do YOU want to
see presented?
 Webcast Survey After Today’s Session.

• To ask a question on the phone
line, select *1 on your phone.
• To ask a question online, use the
Chat area at the top.
Q&A
• Your question will be read aloud in
the order received.
• Question can also be asked on the
My Oracle Support Communities

THANK YOU

My Oracle Support Accreditation: E-Business Suite
Accreditation Program Pages Fully leverage support capabilities Stay Informed | Analyzer Scripts |
delivered via My Oracle Support | Workflow Analyzer | Period Close|
• Program Index – 1583898.1 high-value best practices | efficiency Patching | Certifications | Upgrade
• E-Business Suite – 1580100.1 with Oracle tools = more time spent Advisor | Comparison Reports.
on primary role.

Learn More
Available References and Resources to Get Proactive
 My Oracle Support Essentials Webcast Series

https://support. oracle.com | Doc ID: 553747.1
 My Oracle Support Blog

https://blogs.oracle.com/supportportal/
 Get Proactive in My Oracle Support

https://support. oracle.com | Doc ID: 432.1
 Ask the Get Proactive Team

get-proactive_ww@oracle.com

Accessing My Oracle Support Community
1. Via My Oracle Support -> Community Tab 2. Directly – https://communities.oracle.com

Where Can I Get The Slides From This Session?
1. PDF link from Doc ID 740966.1 (within 48 hours)
2. RAC/Scalability Community >Content Tab > Documents (within 24 hours)

Session Related Community Links
 “The following thread will have a copy

of the presentation and can be used
for additional questions or discussions
on this topic.”
 https://community.oracle.com/thread/
3570481

Oracle Advisor Webcast Program
Locating Current Schedule & Archived Recordings
From Note ID : 740966.1 drill

down to your area of interest
Select your Product Area

Oracle Advisor Webcast Program
Locating Current Schedule & Archived Recordings For DB
Note:
 Click column headings to sort
 Hover on Webcast Title for more
information
 Recordings available within 48
hours
 Advisor Webcast Questions on a
webcast or ask questions via the
Questions? link

THANK YOU

Oracle Color Palette
Lights/Darks Accents and default chart color order
R 255 R 95 R 220 R 127 R 255 R 138 R 255 R 70 R 141 R 176

G 255 G 95 G 227 G 127 G0 G 19 G 119 G 87 G 166 G 195
B 255 B 95 B 228 B 127 B 0 B 59 B 0 B 94 B 177 B 200

Additional Resources
Oracle Corporate Photography Oracle Corporate Hardware Photography

my.oracle.com\site\mktg\creative\graphics\photography my.oracle.com/site/mktg/creative/Graphics/Photography/cnt1375391.htm
Academic Airline Analytics Application ATM
Oracle Corporate Icons Oracle Corporate Logos

my.oracle.com/site/mktg/creative/Graphics/Icons/index.html my.oracle.com/site/mktg/creative/Logos/index.html

AUDIO INFO – Join Teleconference

Question and Answer Instructions
Q&A panel
3
Send your question
2
Ask: ALL PANELLIST leave default!
1
type your question here

Question and Answer Instructions (cont)
your question pop-up here

OPM OSP Solution 12.2.4 Version

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

OPM OSP Solution 12.2.4 Version

Uploaded by

Copyright:

Available Formats

ATTENTION – AUDIO Options

 Check out Doc ID : 740966.1

 Select your Product Area

 Scan through the list of Current Topics

 Register for the session(s) of your

Upcoming: Outside Processing (OSP) for OPM in 12.2.4

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 4

June 23, 2015

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 5

• Concepts and Features of OSP for OPM

• Introduced changes and required setup

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 6

1 OSP for OPM: Outsourcing at Operation / Step Level

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 7

1 OSP for OPM: Outsourcing at Operation / Step Level

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 8

• OPM Planned Support: A

Operation / Step Level – Process In-

introduced since 12.2.4+ Process

• Dashboard – Endeca – TBD

• Complete Outsourcing - TBD

• Buy/Sell Subcontracting B C Virtual Sale of Components B C Sell Components (with Markup)

Virtual Buy of Assembly Buy Assembly A

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 9

• Requirements were gathered from customers of various industries

– Majority of customers preferred Outside Processing to the Outsource

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 10

1 OSP for OPM: Outsourcing at Operation / Step Level

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 11

Manufacture Process Outside Process

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 12

Create OSP Create

• Supports outsourcing of service, where shipment of material is not required.

• Standard costing supported.

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

• Automatic or Manual creation of Purchase Requisitions/Purchase Orders at various batch/step stages.

• Quality inspections for Outside Processing.

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 14

1 OSP for OPM: Outsourcing at Operation / Step Level

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 15

New flag “Outside Processing”:

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 16

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 17

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 18

(Inventory > Items >

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 19

(Inventory > Items >

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 20

(Inventory > Items >

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 21

Process Engineer > Setup>

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 22

Process Engineer > Setup>

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 23

Process Engineer > Setup>

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 24

Process Engineer > Process

• Step 10 is the Outside step

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 25

Formulator > Formula

• OSP item UOM (KGM) is

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 26

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 27

1 OSP for OPM: Outsourcing at Operation / Step Level