osp process oracle r11i
DESCRIPTION
osp Process Oracle R11iTRANSCRIPT
Oracle Outside ProcessingOracle Outside Processing
Rob Pierson
DARC Corporation
11-7-2005
AgendaAgenda
• Introductions
• Overview
• Setup
• Execution
• Costing
• Q&A
OverviewOverview
What is Outside Processing?
A means of providing supplier-sourced components and processes as an integral
part of the manufacturing process
OverviewOverview
• Outside processing (OSP)
– Consists of the use of inventory items and resources to model supplier-sourced services
– OSP resources are used to schedule and cost supplier-sourced services within manufacturing routings
– OSP allows for routing operation steps to be converted into purchase requisitions wherein the req line item is the OSP item
– WIP automatically requisitions material and purchase orders are charged directly to work orders
– Close loop, fully integrated solution
OverviewOverview
• OSP Features
– Multiple OSP operations on a work order and multiple OSP resources per operation
– Supplier provided components are included in BOM and referenced as supply type = supplier
– Automatic requisition generation
– Full tracability of work orders on purchase orders, receipts, & receiving transactions
– Automatic resource charging and move transactions
– Automatic work order completions
Overview: OSP Integration Overview: OSP Integration
Oracle Oracle PurchasingPurchasing
Oracle Work Oracle Work in Processin Process
OracleOracleInventoryInventory
OracleOracleBills of Bills of MaterialMaterial
Oracle Oracle Outside Outside
Processing Processing
Oracle Oracle Mobile Mobile Supply Supply ChainChain
Oracle Oracle Cost MgmtCost Mgmt
Setup: InventorySetup: Inventory
• Item Master
– Create OSP item using item template = @Outside Processing
Setup: InventorySetup: Inventory
• Item Attributes
– Item AttributesInventory Item Unchecked
Stockable Unchecked
Transactable Unchecked
Costing Enabled Unchecked
Inventory Asset Value Unchecked
Include in Rollup Unchecked
Purchased Checked
Purchasable Checked
Outside Processing Item Checked
Setup: InventorySetup: Inventory
• Outside Processing Unit Type
– Assembly – OSP resource charges are based on the work order quantity
– Resource – OSP resource charges are based on the work order quantity x the resource run rate
• List Price
– Enter a list price
Setup: ResourcesSetup: Resources
• Outside Processing Resource
Setup: ResourcesSetup: Resources
• Standard Costing Considerations
– Type = Currency
– UOM = Dollars
• Average Costing Considerations
– Type = Amount
– UOM = Each
• Department Locations need to be setup
Setup: RoutingsSetup: Routings
• Operation Resources
Setup: BOMSetup: BOM
• Supply Type Supplier
Setup: WIPSetup: WIP
• Shop Floor Status
– Allow Moves = Unchecked
Setup: WIPSetup: WIP
• WIP Parameters
Setup: WIPSetup: WIP
• WIP Parameters
Setup: Cost Setup: Cost
• Cost Rollup
Execution: WIP Execution: WIP
• Create and Release WIP Job
Execution: WIP Execution: WIP
• Perform Move Operation
– Move material from operation 10, Queue, to operation 10, To Move
– Perform transaction save
– Remember, WIP Parameter
• Requisition Creation Time = @ Operation
Execution: WIP Execution: WIP
• Perform Move Operation
Execution: WIP Execution: WIP
• WIP Components
Execution: WIP Execution: WIP
• WIP Components:Supplier
Execution: PurchasingExecution: Purchasing
• Perform Requisition Import
Execution: PurchasingExecution: Purchasing
• Perform Requisition Import
Execution: PurchasingExecution: Purchasing
• WIP: Enable Outside Processing
– Yes Enable OSP workflows
– No Disable OSP workflows
Execution: PurchasingExecution: Purchasing
• Requisition Summary
Execution: PurchasingExecution: Purchasing
• Requisition Summary
– OSP item list price x work order assembly quantity
Execution: PurchasingExecution: Purchasing
• Requisition Summary
– Approved Status
Execution: PurchasingExecution: Purchasing
• AutoCreate Purchase Order & Approve
Execution: PurchasingExecution: Purchasing
• AutoCreate Purchase Order & Approve
Execution: ReceivingExecution: Receiving
• Receipts
Execution: ReceivingExecution: Receiving
• Receipts: Outside Services Tab
Execution: ReceivingExecution: Receiving
• Receiving Transaction Summary
Costing: WIPCosting: WIP
• Resource Distribution at Standard
– Resource Type: Currency (USD)
– Outside Processing Unit Type: Assembly
– Operation Resource Usage: $ 5 (based on resource UOM)
– Assembly Quantity: 10
Resource Distribution = 10 units x $ 5/unit = $ 50
Costing: WIPCosting: WIP
• Purchase Order Pricing
– List Price: $.60
– Outside Processing Unit Type: Assembly
– Assembly Quantity: 10
PO Extended Price = 10 units x $ .6/unit = $ 6
Costing: WIPCosting: WIP
• Outside Processing Charging & Variances
– Differences between the standard resource charge and the actual OSP purchase price are are charged to the OSP variance account
01-000-1450-0000-000 $50 Debit to OSP inventory valuation01-540-1430-0000-000 $25 Debit to Overhead inventory valuation01-540-1450-0000-000 <$44> Credit to OSP variance account01-540-7405-0000-000 <$25> Credit to Overhead Absorption account01-540-1410-0000-000 <$6> Credit to OSP Absorption account
Costing: WIPCosting: WIP
• WIP Value Summary
Costing: WIPCosting: WIP
• WIP Value Summary: Distributions
Costing: WIPCosting: WIP
• View Resource Transactions
Costing: WIPCosting: WIP
• View Resource Transactions
Costing: WIPCosting: WIP
• View Resource Transactions
Costing: WIPCosting: WIP
• View Resource Transactions: Distributions
Costing: WIPCosting: WIP
• View Resource Transactions: Distributions
Questions & AnswersQuestions & Answers
Oracle Outside ProcessingOracle Outside Processing