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.

2 Copyright © 2006, Oracle. All rights reserved.

 Convergence at a Glance: Before

Order Management Procurement ASCP

OPM Inventory Discrete Inventory

OPM OPM OPM

WIP Costing Quality
Production Costing Quality

3 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

4 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

5 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

6 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

7 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

8 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

9 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
Ledger
Company

OPM Company Legal Entity Operating Unit

Plant or Lab

Inventory Org
OPM
Warehouse
Subinventory

Locator Locator

11.5.10 Release 12

18 Copyright © 2006, Oracle. All rights reserved.

 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

Subinventory Status:
Bulk
QC HOLD (Disallows Sales Order Issue)

B1.1.1
Locator Status:
Active (Disallows Sales Order Issue)

Lot Status:
L123 Quarantine (Disallows Misc Issue, Sub Transfer)

Effective Status:
Material
Disallows Sales Order Issue,
Misc Issue, Sub Transfer

22 Copyright © 2006, Oracle. All rights reserved.

 New Transactions

• 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

23 Copyright © 2006, Oracle. All rights reserved.

 Common Inventory
Replaced Processes

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 Orders, Interorg

Move or Transfer
Transfers or Internal Orders

24 Copyright © 2006, Oracle. All rights reserved.

 Common Inventory
Replaced Processes

Former OPM Inventory Function Oracle Inventory Function

Grade or Status
Material Workbench
Change

Inventory Close Close Inventory Period

Inquiries and Summary Material Workbench and Transactions

Views Lot Genealogy

Post Journals Inventory Interface

Purges Purge Completed Transactions

25 Copyright © 2006, Oracle. All rights reserved.

 Thank You

Thank You

Copyright © 2006, Oracle. All rights reserved.