Bill Of Material Creation in Oracle

Creating a Bill of Material
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A bill of material contains information on the parent item, components,
attachments, and descriptive elements. Each standard component on a bill
can have multiple reference designators and substitute components.

You can create either an engineering or manufacturing bill, copy an
existing bill, or reference a common bill. When you create a bill, it
exists only in the current organization. To use a bill in another
organization, you must either copy it or reference it as a common.

The procedure below describes how to create a bill.


Prerequisites
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Define the parent item and all components as inventory items and set
the BOM Allowed attribute to Yes and BOM Item Type to Model, Option
Class, Planning or Standard.


To create a bill of material
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1. Navigate to the Bills of Material window.

Note: If your current responsibility does not include the
Privilege to Maintain security function, you can only view
bill information. If so, enter selection criteria in the
Find Bills window and choose the Find button. The Bills
Summary folder window appears.

2. Enter the parent item for which you are creating a bill, and if
you are creating an alternate bill, enter the alternate.

Note: Bills and routings can share alternate labels. If you
create an alternate bill with the same label as an alternate
routing, components are assigned to operations on the
alternate routing. If there is no routing with the same
alternate label, components are assigned to operations on
the primary routing.

3. Enter or select the revision and the revision date.

4. If you are updating or viewing a bill, use the Display pop list to
display all, current, or future and current components effective
as of the revision date you specify. Check the Implemented Only
field to further restrict the components to display.

The Bills of Material window contains the following alternative
regions: Main, Effectivity, Component Details, Material Control,
Order Entry, Shipping, and Comments.

5. Enter the item sequence, operation sequence, and the component
item.

6. In the Main tabbed region, enter the quantity used to make one
unit of this assembly item at the current operation.

This can include negative or decimal values, subject to the
following rules:

Pick-to-order bills cannot have fractional component
quantities if Oracle Order Management is installed.

Pick-to-order option class components cannot have negative
values.

Components with Check ATP turned on cannot have negative or
zero quantities.

If the component has Quantity Related turned on, then the
component quantity cannot be fractional or negative.

If an implemented component has Quantity Related turned on,
then the component quantity must be equal to the number of
reference designators.

Attention: The planning process in Oracle Master
Scheduling/MRP ignores negative requirements on
standard discrete jobs and components with a
negative usage on a bill of material when netting
supply and demand.

Note: If you enter a negative quantity for a component, you
should enter either Assembly pull or Operation pull for
the supply type to ensure that you transact the material
when you build the bill.

The Revision field displays the current revision of the component
as of the revision date of the parent item.

7. Open the Effectivity tabbed region and enter the effective date
range for each component.

8. Open the Unit Effectivity tabbed region and verify the following:

The Implemented check box indicates whether the component is
implemented.

Checked: Component is on a pending Engineering Change Order
(ECO)

Unchecked: Component is on implemented ECO or was added
directly to the bill

9. Open the Component Details alternative region and enter the
planning percent.

Enter the yield.

Enter the Enforce Integer Requirement, or select a value from the
list of values. Acceptable values are up, down and none.

Indicate whether the component should be included in cost rollups.
If enabled, the material cost of this component, but not the
routing cost, is included in the cost of the parent item.

10. Optionally, open the Material Control tabbed region and enter the
supply type.

Enter the supply subinventory and the locator.

If you have set the BOM: Default WIP Supply Values for Components
profile option to Yes, these values default from the item master.
If any of these values are left blank, Work in Process will read
the values contained in the item master.

11. For model, option class, and kit bills, open the Order Entry
alternative region and enter the minimum and maximum sales order
quantities.

Indicate whether to check ATP.

Indicate whether the component is optional and mutually
exclusive.

Enter the basis.

12. Open the Shipping tabbed region, and choose whether the component
should be listed on shipping documents, required to ship, or
required for revenue.

13. Choose buttons to perform related tasks

Bill Of Material

The statement of components that you need for manufacturing a Product (Finished Good) will be defined in a structured manner with the step wise sequence of operation. What has to be manufactured first and what next, the number of components, Resource (Machine and Technical Labour ) that we require to manufacture a Product will be defined in Oracle Bill Of Material .
For Example:
If you want to manufacture a pen the Bill Of Materials for Pen will be...
1.Cap - 1 Each
2.Top Cover - 1 Each
3.Bottom Cover - 1 Each
4.Nib - 1 Each
5.Ink - 4 Dps
6.Refil - 1 Each
Operation Sequence:
1 - Assebble Nib
2 - Assemble Top & Bottom Cover
3 - Fix the Cap - Final Operation to manufacture pen.
Resource Required:
1.Nib Fixing Machine - 2-Each
2.Technical Labour - 2-Each will work on 8-hours shift one person at a time
Oracle Bill Of Material can be used to capture all the above data as per business requirement and still has lot more functionality to help the business.

Thanks & Regards,
S.Grace Paul Regan.

Creating Resource in Oracle BOM

The first proor step in Oracle BOM will be of creating resource..
I. Resources
Resources are anything—except component material—required to manufacture, cost, and schedule products. Each costed resource can have any number of associated costs, including overhead cost.
Resource Creation
In Oracle Bills of Material: Routings > Resources is the navigation to create or view a resource.
i. Provide the resource name in the resource field
ii. Inactive On field to be left null
iii. Provide the description about the resource in the description field
iv. Type :
a. Machine
b. Miscellaneous
c. Person
d. Amount
e. Currency
Depending upon the type of resource select the type from the list of values.
v. UOM :Select the unit of measure from the list of values for the resource. If the resource to be included in calculating the lead time for the assembly, the unit of measure should be in time based like hour, min.
vi. Charge Type
a. WIP Move
b. PO Move
c. PO Receipt
d. Manual
The amount of time , resource is used should be applied , this is called applying or charging resource.
There are four methods of charging resource.
a. Manual : By manual method, resource used will be entered.
b. WIP Move : In WIP, Once the transactions completed, resource will automatically get applied.
c. PO Move, PO Receipt : These two charge types are only for Outside Processing Resources.
a. For other type of resources, this is not applicable.
vii. Basis
Total Resource Cost will be calculated from the resource rate entered for this resource.
If the basis is Item, resource cost will be calculated by multiplying the item qty with resource rate and usage rate.
If the basis is lot, resource cost will be calculated by usage rate * resource rate, here item quantity will not be taken into consideration.
viii. Outside Processing
If the resource is outside processing resource, enable the check box and the enter the outside processing item otherwise do not enable the check box.
ix. Costed
Check the costed check box.
Activity : This is to apply the cost according to the activity. Leave this field as null.
Standard Rate : To apply standard rate for the resource. Don’t check this field.
x. Resource Rates:
To provide the resource cost per UOM , click Rates button in the resource form.
New window will open.
Select Cost type as Avg Rates and provide the resource unit cost .
save and close the window.
xi. Resource Overhead Association
To provide the overheads associated with this resource, click overhead button in the resource form. New window will open, select cost type as Avg Rates .
In the second block of that screen, Resource Overhead Associations, select the overhead associated with this resource.
Example : Admin Cost, Consumable, Ind Depr, M/C Repair, P&M Ins
It is not required to fill the data in Employees, Equipment and Setups menu in the resource form.
Thanks & Regards,
S.Grace Paul Regan.

Substitute Components

Dear All,

A simple explaination to help you understand Assigning Substitute Components to a BOM.

Assigning Substitute Components
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You can assign any number of substitute items to each bill component and
you can assign the same substitute item to more than one component. The
substitute item quantity is the quantity needed to replace the full
component quantity. The quantity can differ from the component usage
quantity. Oracle Master Scheduling/MRP reports these substitutes on some
planning reports, such as the MRP Detail Report. Oracle Work in Process
does not consider substitute items in its pick lists.

Planning bills and model, option class, and planning components cannot
have substitute components.


To assign substitute components
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1. Navigate to the Substitute Components window. Do this by choosing
the Substitutes button from the Bills of Material window.

2. Enter a substitute item for the component. If you are using Bills
of Material, use a manufacturing item; if you are using Oracle
Engineering, use an engineering or a manufacturing item.

3. Enter the quantity of the substitute item needed to replace the
full component quantity. This quantity can differ from the bill
usage quantity of the component.

Thanks & Regards,
S.Grace Paul Regan