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.
Wednesday, May 28, 2008
Saturday, May 24, 2008
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.
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
---------------------------------------
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
---------------------------------------
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
A simple explaination to help you understand Assigning Substitute Components to a BOM.
Assigning Substitute Components
---------------------------------------
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
---------------------------------------
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
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