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Setting Up Work in Process

Copyright © 2007, Oracle. All rights reserved.


Objectives

After completing this lesson, you will be able to:


• Understand the integration between Oracle Work in
Process and other Oracle Applications
• Describe the setup prerequisites
• Define the setup steps for Oracle Work in Process
including WIP parameters, profile options, accounting
classes, and other settings

2-2 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Work in Process Setup Steps
• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2-3 Copyright © 2007, Oracle. All rights reserved.


Overview of Setting Up

Oracle Work In Process setup


determines how the application
functions in your organization.
and how WIP communicates
with other applications.

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Setting Up Integrated Oracle Applications

Oracle Inventory

Oracle BOM and Engineering

Oracle Order Management

Oracle Planning

Oracle Purchasing

Oracle Quality

Oracle Cost Management

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Oracle Inventory

Item Subinventory Locator Quantity


93501 Stores1 AA 25
93502 Stores2 BB 10
96717 Stores3 XX 304

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Bills of Material and Oracle Engineering

Item 123

Item 345

Subassembly
Assembly
Item 678

Supplier

Bulk

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Oracle Engineering

Engineering Change Orders

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Oracle Order Management

Customer orders are a source of demand


for job creation

Sales Orders

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Oracle Planning

Forecast
Customer Orders

Master Demand
Schedule

Inter-org orders
Master Production
Schedule

Actual Production

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Oracle Purchasing

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Oracle Quality

OP 10 OP 20 OP 30

Quality Results Entered at Moves and


Completions

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Oracle Cost Management

You can:
• Track costs through the various stages of production
• Charge and report resource, outside processing, and
overhead costs by activity

Cost information

Transaction costs

2 - 13 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Work in Process Setup Steps
• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 14 Copyright © 2007, Oracle. All rights reserved.


Work in Process Setup Steps

Define WIP Parameters (Required)

Define WIP Accounting Classes


(Required)

Set WIP Profile Options (Required)

Define Production Lines (Optional)

Schedule Groups (Optional)

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Work in Process Setup Steps

Define Employees (Optional)

Define Employee Labor Rates


(Optional)

Define Shop Floor Statuses


(Optional)

Define Documents (Optional)

MES Workstation (Optional)

2 - 16 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Work in Process Setup Steps
• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 17 Copyright © 2007, Oracle. All rights reserved.


Defining WIP Parameters

• WIP parameters define modes of operation and


default values affecting various Work in Process
functions
• Define one set of WIP parameters per organization

ORG 1 ORG 2

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WIP Parameter Categories

Parameters set defaults and operation modes,


they are in the following categories:

• Discrete • Outside Processing


• Repetitive • Scheduling
• Costing • Mobile
• Move • Serial
• Material • Other
• Intraoperation Steps

2 - 19 Copyright © 2007, Oracle. All rights reserved.


WIP Parameter Categories

• Discrete • Outside Processing


• Repetitive • Scheduling
• Average Costing • Mobile
• Move • Serial
• Material • Other
• Intraoperation Steps

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WIP Parameter Categories

• Discrete • Outside Processing


• Repetitive • Scheduling
• Average Costing • Mobile
• Move • Serial
• Material • Other
• Intraoperation Steps

2 - 21 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Work in Process Setup Steps
• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 22 Copyright © 2007, Oracle. All rights reserved.


Defining WIP Accounting Classes

• WIP accounting classes are sets of accounts used to


charge the production of an assembly.
• You can define any number of accounting classes.
• Valuation and variance accounts associated with your
accounting classes determine the accounts charged.

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Defining WIP Accounting Classes

Categories of WIP Accounting Classes:


• Discrete
• Repetitive
• Lot Based
• Maintenance

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Discrete Accounting Classes

You can define accounting classes for each type of


discrete production you use:
• Standard Discrete
• Non-Standard Discrete
• Expense Non-Standard Discrete
• Asset Non-Standard Discrete

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Repetitive Accounting Classes

Repetitive Accounting Classes are used to group


production costs for each repetitive line/assembly
association.

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Lot Based Accounting Classes

Used when Oracle Shop Floor Management is installed


using network routings. The categories include:
• Standard Lot Based
• Expense Non-Standard Lot Based

A B E F

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Maintenance Accounting Classes

Used when Oracle Enterprise Asset Management is


installed for work orders related to plant maintenance
activities.

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Valuation and Variance Accounts

Valuation and variance accounts associated with your


accounting classes determine the accounts charged:
• Valuation accounts are charged when you perform
transactions
• Variance accounts are charged when jobs are closed,
or the accounting period is closed

2 - 29 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Work in Process Setup Steps
• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 30 Copyright © 2007, Oracle. All rights reserved.


Setting Profile Option Values

• A value is set for each profile option to specify how


Work in Process controls access and processes data.
• The system administrator sets and updates values for
profile options.

2 - 31 Copyright © 2007, Oracle. All rights reserved.


Setting Profile Option Values

TP:WIP:Completion Material Processing


• Controls material processing of assembly completions,
returns, and backflush transactions

TP:WIP:Completion Transaction Form


• Determines whether completions are processed online
or in the background

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Setting Profile Option Values

TP:WIP:Move Transaction
• Determines if move transactions are processed online
or in the background

TP:WIP:Move Transaction Quantity Default


• Indicates how move transactions are defaulted

2 - 33 Copyright © 2007, Oracle. All rights reserved.


Setting Profile Option Values

TP:WIP:Shop Floor Material Processing


• Controls processing of operation and assembly pull
backflush, assembly scrap, move completion, and
move return transactions

WIP:Define Discrete Job Form


• Controls processing of operation and assembly pull
backflush, assembly scrap, move completion, and
move return transactions

2 - 34 Copyright © 2007, Oracle. All rights reserved.


Setting Profile Option Values

WIP:Enable Outside Processing Workflows


• Determines if outside processing workflows are
enabled
WIP:Job Name Updateable
• Determines whether you can update the names of
existing jobs in the Discrete Jobs window
WIP:Requirement Nettable Option
• Determines which subinventories to display when
displaying on–hand quantities

2 - 35 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Work in Process Setup Steps
• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 36 Copyright © 2007, Oracle. All rights reserved.


Creating Production Lines

A production line describes a set of operations,


departments, or manufacturing areas that produce your
products.

2 - 37 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Work in Process Setup Steps
• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 38 Copyright © 2007, Oracle. All rights reserved.


Creating Schedule Groups

Jobs and schedules within a given schedule group can be


sequenced and prioritized.

2 - 39 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 40 Copyright © 2007, Oracle. All rights reserved.


Setting Labor Rates

Labor rates are for person-type resources (employees).

2 - 41 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 42 Copyright © 2007, Oracle. All rights reserved.


Setting Shop Floor Statuses

You can control move transactions by assigning Shop


Floor Statuses to intraoperation steps on the routing.

OP 10 Queue Run To Move Reject Scrap

OP 20

OP 30

2 - 43 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 44 Copyright © 2007, Oracle. All rights reserved.


Defining Standard Documents

You can define standard documents and attach them to


jobs, schedules, and job/schedule operations.

A B C D E

2 - 45 Copyright © 2007, Oracle. All rights reserved.


Agenda

• Setting Up Integrated Oracle Applications


• Defining WIP Parameters
• Defining WIP Accounting Classes
• Setting Profile Option Values
• Creating Production Lines
• Creating Schedule Groups
• Setting Labor Rates
• Setting Shop Floor Statuses
• Defining Standard Documents
• Summary

2 - 46 Copyright © 2007, Oracle. All rights reserved.


Summary - Work in Process Setup Steps

WIP Accounting Profile


Parameters Classes Options

Production Schedule
Employees
Lines Groups

Labor MES
Documents Workstation
Rates

2 - 47 Copyright © 2007, Oracle. All rights reserved.


Summary

You should now be able to do the following:


• Understand Oracle Work in Process integration with
other Oracle Applications
• Describe the setup prerequisites
• Define the setup steps for Oracle Work in Process
including integrated applications, WIP parameters,
profile options, accounting classes, and other settings

2 - 48 Copyright © 2007, Oracle. All rights reserved.

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