opm overview presentation 22jan12

8/3/2019 OPM Overview Presentation 22Jan12

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Oracle Process ManufacturingOracle Process Manufacturing--

OverviewOverview


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WHAT ISWHAT IS MANUFACTURING?MANUFACTURING?

PROCESS OF CONVERTING RAW MATERIALS /

COMPONENTS / ANY PARTS INTO A FORM / SHAPE

OF PRODUCT ( FINISHED PRODUCT )

......THAT MEET REQUIRED EXPECTATIONS AND

SPECIFICATIONS

.........USING MAN POWER OR MACHINERIES OR

COMBINATION OF BOTH....................


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Types ofTypes of MANUFACTURING?MANUFACTURING?

DISCRETE MANUFACTURING

FLOW MANUFACTURING

PROCESS MANUFACTURING


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5 Ms of5 Ms ofMANUFACTURING?MANUFACTURING?

MONEY (COST)

MATERIAL (FORMULA)

MAN POWER (RESOURCE)

MACHINE (RESOURCE)

METHOD (OPERATION,ROUTING)


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DISCRETEDISCRETE MANUFACTURINGMANUFACTURING

DESCRIBES MANUFACTURING OF DISTINCT ITEMS ( ITEMS YOU CAN EASILY

COUNT, TOUCH, SEE )

NORMALLY A PRODUCT THAT IS "BUILT UP" FROM COMPONENTS OR SUB-

ASSEMBLIES

EXAMPLES INCLUDEEXAMPLES INCLUDE :

AUTOMOBILE MANUFACTURING , COMPUTER AND ELECTRONIC PRODUCTS, INDUSTRIAL

AND ELECTRICAL EQUIPMENT, MEDICAL EQUIPMENT AND SUPPLIES, FABRICATED METAL,

FURNITURE, RECYCLING, AND MISCELLANEOUS MANUFACTURING.

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PROCESSPROCESS MANUFACTURINGMANUFACTURING

PROCESS MANUFACTURING IS DISTINGUISHED BY A PRODUCTION APPROACH THAT HAS MINIMAL

INTERRUPTIONS IN ACTUAL PROCESSING IN ANY ONE PRODUCTION RUN, OR BETWEEN PRODUCTIONRUNS OF SIMILAR PRODUCTS

THIS APPROACH PRODUCES MULTIPLE UNIQUE PRODUCTS IN RELATIVELY SMALL BATCHES FLOWING

THROUGH DIFFERENT PRODUCTION OPERATIONS THROUGHOUT THE FACTORY.

PROCESS MANUFACTURING WILL TYPICALLY HAVE SEVERAL PROCESSES LINKED TOGETHER IN THE

PRODUCTION SYSTEM

PROCESSES MAY BREAK DOWN RAW MATERIALS, REFINE MATERIALS INTO HIGHER QUALITY GOODS

EXAMPLES INCLUDEEXAMPLES INCLUDE : CHEMICAL MANUFACTURING, DIESEL PRODUCTION,

PHARMACEUTICAL INDUSTRIES, PROCESSED FOODS, GASOLINE

PRODUCTION, BEVERAGE MANUFACTURING

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PROCESS & DISCRETEPROCESS & DISCRETE MANUFACTURINGMANUFACTURING

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ORACLEORACLEPROCESS MANUFACTURING (OPM)PROCESS MANUFACTURING (OPM)

MAIN SUB-MODULES IN OPM:

PRODUCTION BATCHES AND TRANSACTIONS

QUALITY CONTROL

OPM FINANCIALS (COSTING , SLA)


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Describing the Process Flow

Prerequisite setup

Formula setup

Formula creation

Routing setup

Operation classes

Routing classes

Resources

Plant resources

ActivitiesCreate operations

Create routings

Formula classes

Recipe creation


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Process Engineer Setup Generic Resources

Process Engineer Setup Plant Resources


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Entering Operation Details

Packaging

Labor

Setup Mixing

Production equipment

Operation

Activity1.2.3....

Resource

XX Production Operation

+


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Routing Hierarchy

Routing

Activity1.. Activityn

Resource1.. Resourcen

Operation1.. Operationn


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Process Engineer Setup Routings


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Formula

Formula contains details of Ingredients, Products and By-products with

their associated quantities and processing instructions.

Use of formula.

Production Batches are based on Formulas.

Formulas are also used for Planning, Managing costs & Scheduling.

Ingredients -Raw Materials used in manufacturing .

Product - Finished Good produced using Raw Materials.

By-product - Product Produced during manufacturing process ofa product which cost will not be considered.Depending on type By-product can be classified as

Rework,sample,waste or Yield.


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Formula Details

FormulatorFormulas Products


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Recipe Details

FormulatorRecipes


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Recipe Hierarchy

ProcessingInstructions

Formula

Ingredient Product Byproduct

Recipe

Routing

Activity1.. Activityn

Resource1.. Resourcen

Operation1.. Operationn


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PRODUCTION BATCH CREATIONProduction SupervisorBatch Details


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PRODUCTION BATCH CREATIONProduction SupervisorBatch Details


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PRODUCTION BATCH MATERIAL TRANSACTIONSProduction SupervisorBatch Details-->Batch Completion


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OPM Cost Management


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Cost Types

Standard Cost

Actual Cost Lot Cost


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Standard Costing

Under standard costing, predetermined costs are used for valuing

inventory and for charging material, resource, overhead, period close,

and job close and schedule complete transactions. Differences between

standard costs and actual costs are recorded as variances.

Use standard costing for performance measurement and cost control


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Actual Costing

OPM captures the actual costs from business transactions.

Costs of raw materials are captured based on the raw material purchase

order receipts and or invoices.

Costs of products are captured based on the actual quantities of the

raw materials consumed and the resource usage or conversion cost

recorded in the production batch.


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Lot Costing

Lot costing, also known as Specific Identification Type costing lets yo

calculate and store costs at the lot level. That is, each lot has a unique cosassociated with it and it retains this cost until the entire lot is consume

The lot costs are computed on a perpetual basis.


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Period Moving Average Cost (PMAC)

Received

quantity

((Previous

period

inventory

balance)) ++

GL expense

component

amount for

current period

Previous

period

inventory

balance

++

==Component costraw materials

Previous

period

GL expense

component cost


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Cost Types

Define Cost TypesNavigation>Financial>Cost Management>Setup>Cost Methods


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Cost CalendarsDefine Cost Calendars

Navigation>Financial>Cost Management>Setup>Calendars


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Cost Components ClassDefine Component Class

Navigation>Financial>Cost Management>Setup>Components Class

The Cost Components are classified into 5 categories.


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Resource CostDefine Resource Cost

Navigation>Financial>Cost Management>Resource Cost


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Viewing Item Cost List


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Sub-ledger Accounting (SLA)

Subledger accounting is an intermediate step between subledger

Products and the general ledger.

Each Transaction that requires accounting is represented by a

complete and balanced subledger entry, stored in a common data

model


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OPM-SLA Flow


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SLA Hierarchy...

Events are logical groupings of Event Types


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SLA Hierarchy...


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SLA Hierarchy


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Update the Account Derivation Rule conditions.

Ex: Add Item/Item Class/Organizations

Validate the Application Accounting Definition

Run OPM Accounting Pre-Processor

Run Create Accounting in Draft mode

Check Create Accounting report and Journal

Entries report

Run Create Accounting in Final mode to create GL

accounting entries

Run OPM Accounting Pre-Processor

SLA Flow

opm overview presentation 22jan12

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