Industry Focus - Manufacturing
Business Background - Difference between Discrete and Process Manufacturing
The basic difference in Process and Discrete Manufacturing is that in Process Mfg. the final product cannot be broken down into the
ingredients that have been used to make the product whereas in Discrete Mfg. the final product can be broken down into subassemblies and further into parts
Process Manufacturing (OPM)
Oracle EBS R12 Manufacturing - TIPS
Guide Lines, Instructions, Information, Advices
Saturday, March 07, 2015 3:16 PM
○ Pharmaceutical Industry - Medicine, Tablets ○ Bio Technology
○ Food Processing Industry ○ Beverages
○ Paints
○ Petro Chemical Industries ○ Chemical Industries
Steel Industries ○
Process manufacturing is distinguished by a production approach that has minimal interruptions in actual processing in any one production run, or between production runs of similar products. This approach produces multiple unique products in relatively small batches flowing through different production operations throughout the factory.
They typically follows a Process Layout.
They are normally producing a Product that is "Homogeneous" and equally divided for the convenience of packaging. Typical examples are Food, pharmaceutical and other batched-based manufacturers such as refineries, wineries, etc. .
OPM - Business Case Study Example
-Steel Industry
Raw materials : Sponge iron, pig iron and scrap ferrous material, various alloys. Intermediate product : Billets, blooms and ingots
Product : Different grades of various dimension,shape,lenght,heat treatment.
Raw material is melted and alloys added to achieve the aim chemistry to produce 'Heats' and then continuous casting is done to form blooms/billets. Blooms/billets are converted to rolled and turned products
Discrete Manufacturing (ODM)
Discrete manufacturing is distinguished by the production of distinct items that use bills of material and routings to determine costs and lead times.
Examples: Automobile manufacturing, computer manufacturing, dishwasher and washing machine manufacturing, etc . Product Layout - Processes come to the product . typical example are Ship Building, Car Assembly Line, PC's, etc. ○
Process Layout - Products go to Process areas Typical Example are Cabinets and Casings, Sub-assemblies, Rubber Mixing, etc. ○
Typically they follows either a Product, Process or a Combination Layout these layouts can be understood like:
Technology Focus - Oracle EBS , R12
Oracle EBS R12 Product Features (Release Content Document)
Modules Business Process Cycle Scope
Concept to Release Plan
Demand Planning, Order Management, ASCP Planning
Forecast to Plan Plan
Purchasing, Inventory, Payables, Cash Management, General ledger, Fixed Assets
Procure to Pay Source
Plan to Replenish Plan
Demand to Build Make
Inventory to Fulfillment Make / Source
Campaign to Order Market /Sell
Click to Order Sell
Order Management, Inventory, Receivables, Cash Management, General Ledger
Order to Cash Sell
Contract to Renewal Support
Request to Resolution Support
Process Manufacturing in Oracle OPM Functional - Topic for Discussions
Understand the process flowUnderstand the inventory organization structure
Set up other applications for Process Execution
Set up parameters and profile options in Process Execution
Set up responsibilities and security profiles
Describe firm planned orders (FPOs) and batches Differentiate between FPOs and batches
Release and un-release a batch
Cancel, reschedule, and reroute a batch and firm planned order Complete a batch and revert a batch to WIP
Close and reopen a batch
Explain how Process Execution and MES are integrated Create high and detailed level reservations
Understand the process of material movement on the shop floor Understand move orders and pending product lots
View inventory shortages Scale a batch or FPO
Explain item step associations and batch step dependencies
Explain charges, activity factors, and process parameters
Pick release a batch
Explain consumption and yield type
Explain process loss and scrap
Explain the setup process for process loss and scrap percentages
Understand the process loss and scrap factor calculations Identify Process Execution reports and inquiries
List the Process Execution e-record and e-signature events
Project Deliverables - Business Documentations (Clients) using Application Implementation
Methodology (AIM)
AIM Structure Framework
A task is a unit of work, which results in a single deliverable. That deliverable may take many different forms like reports, schedu les, code, or test results for example.
•
• A process is a closely related group of dependent tasks, which meets a major objective. A process is usually based on a common discipline.
A phase is a chronological grouping of tasks. It enables a flexible way to organize tasks, schedule major deliverables, and deliver projects.
•
AIM is a framework of related elements. It involves phases, processes, tasks and dependencies:
Processes and phases are explained in more detail below.
Processes
A process in AIM represents a related set of objectives, resource skill requirements, inputs, and deliverable outputs. A task can belong to only one process. Project team members are usually assigned to a process according to their specialization and background. A brief description of the AIM processes are given below:
1. Business Requirements Definition: Business Requirements Definition defines the business needs that must be met by the implementation
project. You document business processes by identifying business events and describing the steps that respond to these events.
2. Business Requirements Mapping: Business Requirements Mapping compares the business requirements to standard application software
functionality and identifies gaps that must be addressed to fully meet business needs. As gaps between requirements and functionality emerge, they are resolved by documenting workarounds, alternative solutions, application extensions, or by changing the underlying business process.
3. Application and Technical Architecture: During the Application and Technical Architecture you design an information systems architecture
that reflects your business vision. Using the business and information systems requirements, this process facilitates development of a plan for deploying and configuring the hardware required for a successful implementation.
4. Module Design and Build: Module Design and Build produces custom software solutions to gaps in functionality identified during Business
Requirements Mapping. Custom software solutions include program modules that must be designed, built, and tested before they can be incorporated into the system.
5. Data Conversion : Data Conversion defines the tasks and deliverables required to convert legacy data to the Oracle Applications tables.
The first step of this process explicitly defines the business objects that are required for conversion and the legacy source systems that store these objects. The converted data may be needed for system testing, training, and acceptance testing as well as for production.
6. Documentation :Documentation begins with materials created early in the project. Using detailed documents from the project, the writing
staff develops user and technical material that are tailored to the implementation.
7. Business System Testing: Business System Testing focuses on linking test requirements back to business requirements and securing
project resources needed for testing. It supports utilizing common test information including data profiles to promote testing co-ordination and to minimize duplication of test preparation and execution effort.
and to minimize duplication of test preparation and execution effort.
8. Performance Testing: Performance Testing enables you to define, build, and execute a performance test. Use the results to make
decisions on whether the performance is acceptable for the business and to help propose tactical or strategic changes to address the performance quality shortfall. Performance Testing is closely related to Application and Technical Architecture; they are interdependent.
9. User Training: Training prepares both users and administrators to assume on the tasks of running the new application system. It includes
development of materials and methods as well as administration. Instructors and courseware developers orient their material toward roles and jobs, and not toward application modules.
10.Production Migration : Production Migration moves the company, system, and people to the new enterprise system. Following
production cutover, it monitors and refines the production system and plans for the future. The Production Migration process encompasses transition to production readiness, production cutover, and post-production support
The Process can easily understood by this diagram against Phases discussed below.
Phases
An AIM project is conducted in phases that provide quality and control checkpoints to co-ordinate project activities that have a common goal. During a project phase, your project team will be executing tasks from several processes. A brief description of the AIM processes are given below:
1. Definition: This consist of review the organization's business objectives, evaluate the feasibility of meeting those objectives under time,
resource, and budget constraints. Moreover this can be best consider as SOW(statement of work) preparation phase.
2. Operations Analysis: During Operations Analysis, the project team develops Business Requirements Scenarios based on deliverables from
Definition that are used to assess the level of fit between the business requirements and standard application functionality. Gaps are identified and corresponding solutions developed. The analysis results in a proposal for conducting business operations under the envisioned application technical architecture. Solutions for gaps evolve into detailed designs during Solution Design.
3. Solution Design: The purpose of Solution Design is to develop the detailed designs for the optimal solutions to meet the future business
requirements. During this phase, project team members create detailed narratives of process solutions developed during Operations Analysis. Supporting business requirements may require building application extensions to standard features; several alternative solutions may have been defined during Operations Analysis. The project team carefully scrutinizes these solutions and chooses the most cost effective alternatives.
4. Build: The coding and testing of all customizations and other custom software including enhancements, data conversions, and interfaces is
done during Build. Policy and procedure changes relating to business process modifications are developed. Business system testing is performed to validate that the developed solutions meet business requirements. If customizations, extensions, or conversions are not required, Build is still important because it includes the business system test, which is commonly conducted as a formal conference room pilot. The business system test validates the solutions and is performed in an environment that closely resembles production.
5. Transition: During Transition, the project team deploys the finished solution into the organization. All the elements of the implementation
must come together to transition successfully to actual production. The project team trains the end users while the technical team
configures the production environment and converts data. Transition ends with the cutover to production, when end users start performing their job duties using the new system.
6.Production: Production begins immediately with the production cutover. It marks the last phase of the implementation, and the beginning
of the system support cycle. Included in this final phase is a series of refinements and performance measurement steps. The in houes MIS/IT Department personnel work quickly to stabilize the system and begin regular maintenance. They will provide the ongoing support to the organization for the remaining life of the system. During Production, you compare actual results to project objectives.
Online References
http://www.oracleappshub.com/beginner/discrete-process-manufacturing-in-erp/> 1. 2. http://oracle.ittoolbox.com/groups/technical-functional/oracle-apps-l/r12-opm-implementationsteel-industry-1798136 3. http://www.oracleappshub.com/ebs-suite/technical/functional/supply-chain-management-scm-techno-functional-guide 4. https://oracleebspakistan.wordpress.com/2008/11/06/oracle-key-business-flows/ 5. www.trutek.com http://www.oracleappshub.com/methodology/oracles-application-implementation-methodology-aim-part 6.Abbreviations
Abbreviation Description Remarks
EBS E-Business Suite Used in Oracle Applications
RCD Release Content Document Oracle Documentation Repository, Showing Product Features in this Version OPM Oracle Process Manufacturing Oracle Licensed Product with Product Group Codes as GM Series
ODM Oracle Discrete Manufacturing Oracle Licensed Product with product Group codes as WIP
GMD OPM Product Development Formulation, Recipe includes Plant and Laboratory (Research and Development) Formulas GME OPM Process Execution Process Execution involves creation of Batches (Production Orders, Documents) where Final
Product is created from the Raw Material Ingredients
GMP OPM Process Planning Process Planning involves Planning and Scheduling of Production Resources before Execution
QM Quality Management Oracle Quality includes Incoming Inspection, In-process Inspection and Final Inspection BYP Byproducts Used in Formulations in GMD basically are Wastes. Inventory it is one of the Item Types INT Intermediates Used in Formulations in GMD basically are Semi Finished Components still Saleable and
further manufacturable . Inventory it is one of the Item Types
ING Ingredients Used in Formulations in GMD basically are Raw Materials. Inventory it is one of the Item Types
FG Finished Goods Used in Formulations in GMD basically are Saleable Finished Goods. Inventory it is one of the Item Types
OM Order Management Sales Order Processing module
PO Purchasing Purchasing Module includes Quotations, Purchase Orders and Receipts
INV Inventory Inventory Management Module in Oracle
ASCP Advanced supply Chain Planning Planning Module as a Part of Value chain Planning MRP Material Requirement Planning Single Organization Material Planning
MES Manufacturing Execution System Shop Floor Execution of production Orders workbench
BUSINESS
AIM Application Implementation Methodology
Adopted for Project Management in Oracle EBS during different Phases of the project
ATO Assemble To Order Stocking Strategy, Manufacturing Business
PTO Pick To Order Configure to Order , a Type of Manufacturing Strategy
MTO Make to Order Stocking Strategy, Manufacturing Business
MTS Make to Stock Ship From Stock Model, Stocking Strategy, Manufacturing Business
Back to Back Back to Back Back to Back Order Fulfillment
Drop Ship Drop Shipment Drop Shipment Order fulfillment , No Shipping, Direct Material Deliver from Vendor
INDUSTRIAL
MSDS Material Safety Data Sheet Industrial Safety Standard for Materials especially Hazardous Environment OSHAS Occupational Safety and Health
Association
Safety Certification for the Most of the Process Manufacturing Industries TPM Total Productive Maintenance Equipment Maintenance Management Certificate
TQM Total Quality Management Quality Certifications for Products and Services offered to the Customer QMS Quality Management Systems Quality Management Processes adhering to the Quality Systems
Your Questions
What is the Difference between Discrete Manufacturing (ODM) and Process Manufacturing (OPM) ? 1.
Few Important Features that Oracle EBS R12 supports for OPM ? 2.
3. What Oracle Modules are Integrated with Oracle Process Manufacturing (OPM) to meet the Business Needs? What is the Basic Business flow (End to End ) of Oracle Process Manufacturing as per Oracle Standard Functionality ? 4.
What basic things should I be knowing before joining a Project assignment as an Oracle Apps Functional Consultant , getting into any of the Industries?
5.
6. Certainly documentations are deliverables for my Oracle EBS Implementations, how do I maintain my Confidentiality , Accessibi lity and Integrity with the Clients?
