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Project Manufacturing Overview

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.

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Project Manufacturing Agenda

• Project Manufacturing Overview • JD Edwards EnterpriseOne Implementation • Project Manufacturing Details • Engineer to Order verses Project Manufacturing • Closing – Key Points

A manufacturing methodology in which orders and inventory

associated to a demand order is tracked through a unique

Production Number

5 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.

Why Project Manufacturing?

Industry Initiatives: • Enable visibility and tracking of the customer order throughout the manufacturing process

• Ability to respond quickly to customer changes

•Separation of inventory by customer demand

Business Goals: • Improves visibility to the shop floor

• Improve customer satisfaction

•Simple allocation for critical customers

6 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.

Why Project Manufacturing?

Types of Industries: • Fabrication Manufacturers

• Government/Military Suppliers

•Customer Centric Distributors

Business Processes: • Repetitive Projects

• Ability to move orders/projects around on the shop floor

• Ability to separate inventory based on customer

Enables companies to define and track customer demand from sales order entry through material management through shop floor activities and final shipment

Project Manufacturing Solution:

Integrated Solution

Project Manufacturing references supported in all manufacturing activities

Mfg

Suppliers

Subcontractors

Work Order Processing

Configure to Order

Planning Shop Floor

Mixed Mode Manufacturing

Sales Orders

Forecasts

Purchase Orders

Ownership Tracking Via Project Manufacturing Inventory

Operations Transfers

Adjustments Issues

Work Orders

Material Issues Completions

MRP

Purchase Orders

PO Distributions Receipts

Requisitions

Demand Orders

Sales Order Line Transfer Orders ATO/PTO/MTO

Forecasts

Project Manufacturing Workbench

Work Orders (WIP)

Procurement Planning

Sales Orders

Forecasts Inventory

Project Manufacturing - Based Supply Chain Hard Pegging

Project1

Project3

Project2

Customers All activities tied to a PRODUCTION NUMBER Improves overall visibility in the supply chain

Suppliers / Subcontractors

Project Manufacturing - Based Supply Chain Soft Pegging

Project1

Project3

Project2

Customers All activities tied to a PRODUCTION NUMBER Improves overall visibility in the supply chain

Suppliers / Subcontractors

Production Number Controlled Item 3

Production Number Controlled Item 2

You can decide at which level activities are tied to a PRODUCTION NUMBER – common components can be shared to improve efficiencies

Suppliers / Subcontractors

Customer 3

Customer 1

Customer 2

Production Number Controlled Item 1

New Applications for Project Manufacturing

P34401 – Production Number Master

P34403 – Production Number Workbench

P34402 – Production Number Structure Definition

P34404 – Production Number Reassignment

Used to generate Production Numbers for use with

production controlled items

Used to review all supply and demand for a specific Production Number

Used to define the structure of Production Numbers when

creating/generating new Production Numbers

Used to reassign work orders, purchase orders, and inventory for production controlled items

that do not have associated demand

Project Manufacturing Implementation

Requirements Planning

(System 34)

Production Controlled Items Create Demand

Production Controlled Items MRP Processing

Production Controlled Items Work Order and Purchase Order Processing

Purchase Order Processing

18 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.

Sample of Project Mfg Number Structure

2 0

Company 1 Example

Last 2 digit of Year

Production Key Next Number

1 1 2 3 4 5 3 7 8 6

Company 2 Example

Last 2 digits of the Year

2 Digit Month

Sales Region

Project Number Structure: • User Defined by Company • Multiple Types per Company • Alpha Numeric • 30 Characters • Separator Optional 2 - 1 3 - 0 A - N 1 1 1 1

Production Key Next Number

2 Digit Month

Company 3 Example

4 Digit Year Customer Number

0 2 2 4 / 0 / 0 2 1 2 1 2

Production Key Next Number

1 4 2 / 2 1 0 2 0

Item Number

Item Definition – Item Master & Item Branch Setup of Production Number Control

Check box to allow Production Numbers to be assigned to this Item’s Demand Orders

Item Master record must be checked in order to check the box in the Item Branch.

Item Definition Inventory Adjustments

Tank, Wine, 8'H X 4'D, SS

120000

Tank, Top Assembly, 4'

Diameter (SA) 120010

Man-Way, 24" Non-Pressure,

SS (P) 120001

Lifting Lug, 800Gal, SS (P)

120002

Man-Way, 18" Pressurized,

SS (P) 120020

Bottom Man-Way Assembly,

4' Diameter (SA) 120030

Man-Way, 18" Non-Pressure,

SS (P) 120040

Bottom Drain, 4" SS (P) 120003

Racking Port, 2" SS (P) 120004

Stand, 4' Diameter, SS (P)

120005

Example – BOM Structure Definition

Non-Production Number Controlled Items

Production Number

Controlled Items

Production Number Controlled Item

Non-Production Number Controlled Item

P34401 – Production Number Master

Used to generate Production Numbers for use with

production controlled items

P34402 – Production Number Structure Definition

Used to define the structure of Production Numbers when

creating/generating new Production Numbers

Production Structure Definition Define a New Production Number Type

Production Structure Definition Define a New Production Number Type

Define the Segments

Select Company

Select Production Number Type – User Defined Value

Define the Separator Value

30 Character Maximum

Production Structure Definition Define a New Production Number Type

Define the segments

Production Number Master Manual Production Number Creation

Add a Production Number

Production Number Master Manual Production Number Creation - Required Fields

Enter Company

Enter Production Number Type

Enter Item Number

Defaults to System Date

Creates based on Definition

Can also be generated

Production Number Master Manual Production Number Creation - Required Fields

Required Field due to Definition

Required Field due to Definition

Production Number Master Manual Production Number Creation – Error Handling

Customer Number is Required

Because of the Production Number Type Definition

Production Number Master Manual Production Number Creation

New Production Number created Based on Definition

P4210

Sales Order Entry New Processing Options

Note: P42101 calls a version of P4210 so no additional processing option in

P42101 is needed.

Sales Order Entry New Grid Column

Sales Order Entry How to enter a Production Number

1) Select from Production Number Visual Assist

Sales Order Entry How to enter a Production Number

2) Select Row Exit to Generate a new Production Number based on Production Number Type value in Processing Options

Sales Order Entry How to enter a Production Number

3) Manually Enter a Production Number

4) Automatically generated on Row is Exited and Changed processing if Production Number Generation Processing Option is set to ‘1’

R3460

Forecast Entry New Processing Options

New Processing Option Tab

Forecast Entry New Grid Column

Forecast Entry How to enter a Production Number

1) Select from Production Number Visual Assist

Forecast Entry How to enter a Production Number

2) Select Row Exit to Generate a new Production Number based on Production Number Type value in Processing Options

Forecast Entry How to enter a Production Number

3) Manually Enter a Production Number

4) Automatically generated on Row is Exited and Changed processing if Production Number Generation Processing Option is set to ‘1’

R3482/R3483

Material Requirements Planning Processing Options

New Option for Existing Processing Option. Note:

Option 1 (ETO) and Option 2 (Project Mfg) are mutually

exclusive

Planning Messages New Field

Pegging Inquiry Soft/Hard Pegging Example

Component 120010 for end item 120000 has the following orders associated to a particular Production Number

Pegging Inquiry Soft/Hard Pegging Example

Component 120030 for end item 120000 has no orders associated to a particular Production Number

Tank, Wine, 8'H X 4'D, SS

120000

Tank, Top Assembly, 4'

Diameter (SA) 120010

Man-Way, 24" Non-Pressure,

SS (P) 120001

Lifting Lug, 800Gal, SS (P)

120002

Man-Way, 18" Pressurized,

SS (P) 120020

Bottom Man-Way Assembly,

4' Diameter (SA) 120030

Man-Way, 18" Non-Pressure,

SS (P) 120040

Bottom Drain, 4" SS (P) 120003

Racking Port, 2" SS (P) 120004

Stand, 4' Diameter, SS (P)

120005

Example – BOM Structure Definition

Production Number Controlled Item

Non-Production Number Controlled Item

Non-Production Number Controlled

Therefore Production Numbers are Not Associated

Production Number Controlled Therefore Production Numbers

are Associated

Pegging Inquiry Soft/Hard Pegging Example

Production Number Controlled

Non-Production Number Controlled

Tank, Wine, 8'H X 4'D, SS

120000

Tank, Top Assembly, 4'

Diameter (SA) 120010

Man-Way, 24" Non-Pressure,

SS (P) 120001

Lifting Lug, 800Gal, SS (P)

120002

Man-Way, 18" Pressurized,

SS (P) 120020

Bottom Man-Way Assembly,

4' Diameter (SA) 120030

Man-Way, 18" Non-Pressure,

SS (P) 120040

Bottom Drain, 4" SS (P) 120003

Racking Port, 2" SS (P) 120004

Stand, 4' Diameter, SS (P)

120005

Example – BOM Structure Definition

Production Number Controlled Item

Non-Production Number Controlled Item

Non-Production Number Controlled

Production Number Controlled

but item is a lower level of a non-Production Controlled Item

Work Order Entry New Field

Work Order Entry New Field

1) Propagated from Planning Messages 2) Manually Entered

Work Order Entry New Field

3) Select from visual assist

Work Order Entry New Field

No Generation of Production Number. Production Numbers are only generated for Demand Orders not Supply Orders.

Definitions

1. Generic inventory: Items that are not production number controlled and, therefore, are not

associated with a production number

2. Inactive production numbers These are production numbers that have the Production Number Status

set to Inactive in the Production Number Master program

3. Orphaned production numbers These are production number that are no longer associated with a

demand order

4. Production number with the farthest end item demand date The demand date of a production controlled item that is farthest in the

future.

Work Order Inventory Issues New Processing Option

Processing Option used for interactive Backflush processing only.

If Blank is selected and there is insufficient inventory for the Production Number the program will use the following order for Inventory Issue Blind Processing: 1. Generic inventory 2. Inactive production numbers 3. Orphaned production numbers 4. Production number with the farthest end

item demand date

Work Order Inventory Issues New Grid Field

Work Order Inventory Issues New Header Field

Work Order Inventory Issues Inventory Consumption

Generic Inventory

Orphaned Production Number Inventory

Work Order Inventory Issues New Row Exit to Production Number Specific Location

Work Order Inventory Issues New Production Number On Hand Form – P42054

Work Order Completion New Processing Option

Work Order Completion New Processing Option for Reversals

If Blank is selected and there is insufficient inventory for the Production Number the program will use the following order for REVERSING THE COMPLETION: 1. Generic inventory 2. Inactive production numbers 3. Orphaned production numbers 4. Production number with the farthest end

item demand date

Processing Option used for Completions reversal only.

Work Order Completions New Grid Field

Work Order Completions New Grid Field

Work Order Completions New Grid Field

Work Order Completions New Form Exit

Work Order Completions New Form Exit

Work Order Completions Production Number as Lot Number

Work Order Completions Production Number as Lot Number

Purchase Order Entry New Field

Can be selected from visual assist or typed in but no Generate Production Number row exit

PO Receipt Entry P4312 New Grid Field

P34403 – Production Number Workbench

Used to review all supply and demand for a specific Production Number

P34404 – Production Number Reassignment

Used to reassign work orders, purchase orders, and inventory for production controlled items

that do not have associated demand

Production Number Workbench Overview

Create Work Orders

Create Purchase Orders

Reassign Production Numbers

Inquire on Supply & Demand

Production Number Workbench Sub-Forms

Review Purchase Orders

Review Work Orders

Review Sales Orders

Review Forecasts

Review Inventory

Production Number Workbench Forecast Sub-Form

Only one demand record per production number

Production Number Workbench Sales Order Sub-Form

Production Number Workbench Work Order Sub-Form

Production Number Workbench Purchase Order Sub-Form

Production Number Workbench Purchase Order and Inventory Sub-Forms

Received against Production Number

Inventory based on Production Number

Production Number Reassignment

Production Number Reassignment

Canceled Forecast – inventory will be relieved from this

production number

Production Number that will receive the

inventory

Production Number Reassignment

Production Number Reassignment

Production Number Reassignment

How to Position: ETO verses Project Mfg

Leverage Projects created in ETO Create Lightweight Projects in SCM

Cost by Project Cost as Usual

Comparison ITEMS JDE E1 ETO Project Manufacturing

1 Purpose of functionality Engineering. WBS. Plan/Actual cost management

Process visibility through Production Number

2 Target industry Custom made Fabrication/Mass-Produced

3 Scope of production method ETO MTO, ATO, MTS

4 Frequency of sales order Almost one time only Repetitive

5 Production volume Low High

6 Total throughput time Few months to 1year One day to one month

7 Which number to peg all orders? Project Number Production Number

8 Which order can be pegged? SO, WO, PO Forecast, SO, WO, PO

9 How to peg the number to all orders?

Auto-assign Project number through PRP

Auto-assign Production Number to orders through

MRP

10

Can Inventory be reserved for project?

Only through Financial Commitments Production Number

11 Order progress is visible? N/A Project Mfg Workbench

How to Position: Differences between ETO and Project Mfg

Closing - Key Points

What is Project Manufacturing? A manufacturing methodology in which orders and inventory

associated to a customer order is tracked through a unique Production Number

What is the Goal for Project Manufacturing? Improve customer satisfaction by providing visibility to the

customer’s demand throughout the manufacturing process to ensure on-time, high quality delivery of product

What Business Process does Project Manufacturing Solve? Enables companies to define and track customer demand

from sales order entry through material management through shop floor activities and final shipment

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