Oracle Manufacturing

Modules To Be Covered
• Bills Of Material
• Work In Process
• Costing
 Bills Of Materials
Touch Points
• What is Oracle BOM ?
• Why we need Oracle BOM, real world examples ?
• Different components of a BOM.
• BOM creation/commoning.
• Overview of phantom items & reference items
• Supply Types.
• Routing Of BOM
• Components Of routing ( Departments, Resources, Overhead costing)
• Setup Overview of BOM and Routing (Frontend)
 BOM Structure

• The bills of material above shows:

• A planning bill of material for Italian foods containing items pizza and
calzone as components
• Two model bills of material for pizza and calzone (Pizza contains the option
class components sauce and toppings.)
• Two option class bills of material for sauce and toppings (Sauce contains
standard components tomato sauce and pesto sauce.)
• Two standard bills of material for tomato sauce and pesto sauce (Tomato
sauce contains standard components tomato and oil.)
 Phantom Items

• 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.
• 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.
• 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.
• 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.
 Supply types
• Phantom - Use Phantom to instruct Oracle applications to substitute the components of this
item, for the item when working with this item.

• Push - Use when the component should be charged at the beginning of the assembly or
operation. This will lower your inventory at the same time. A component that must be
explicitly issued (pushed) from inventory to the discrete job (or repetitive schedule).

• Operation Pull - Use if you want to decrease component inventory automatically when you
complete the routing step in which you use the component. You must have indicated the
backflush operation in the Operation Sequence field.

• Assembly Pull - Use if you want to decrease component inventory automatically when you
complete a discrete job and repetitive schedule.

• Vendor - Use to indicate that you will not lower the inventory balance because your supplier
will provide the material.

• Bulk - Use to indicate that you will not lower the inventory balance because these are
expense items.
 Routing
• A routing defines the step-by-step operations you perform to manufacture a product.
Each routing can have any number of operations. For each operation you specify a
department that determines the resources you may use for that operation.
• You must create resources and departments before you create routings.
Lead Times Of Routing
 Department & Resource Overview

Department:
 Department & Resource Overview

Resource tagging to department

 Department & Resource Overview
Resource creation and costing