ORACLE WORK IN PROCESS SETUP DOCUMENT IN R12.2

Table of Contents

STEP 1: Setup Prerequisites

Oracle Inventory

Oracle Bills of Material

Oracle Engineering

Oracle Cost Management

Oracle Project Manufacturing

Oracle MRP/Master Scheduling and Supply Chain Planning

STEP 2: Profile Options in Work In Process

STEP 3: Define WIP Parameters

Discrete:

REPETITIVE:

COSTING:

Move Transaction:

Material:

Intra Operation:

Outside Processing:

scheduling, mobile, other:

serial:

STEP 4: Define WIP Accounting Classes

Standard Discrete:

Expense Non-Standard for Expense:

Expense Non-Standard for Rework:

STEP 5: Shop Floor Status

create Shop Floor Statuses:

Assign Shop Floor Statuses TO discrete Jobs:

Assign Shop Floor Statuses in WIP Parameters:

STEP 6: Define Employee Labour Rates

STEP 7: Production Lines

STEP 8: Defining Job and Schedule Documents 0

STEP 1: Setup Prerequisites

Before you set up Work in Process, you must complete the setup for the following: products

Oracle Inventory

Make sure you set up Inventory as described in Overview of Setting Up Inventory. Ensure that all the following steps have been completed:

   Create your organizations

   Define your organization parameters

   Define your items and item costs

   Launch your transaction managers

   Define your account aliases (Optional)

   Define your transaction reason codes (Optional)

   Define your units of measure (UOMs)

   Define your transaction types (Optional)

   Define your subinventories

   Define your stock locators

Oracle Bills of Material

Make sure you set up Bills of Material as described in Overview of Setting Up Bills of Material. In addition to the set up, ensure that all the following steps have been completed:

   Create your bills of material

  Define your resources

   Define your departments

   Define your standard operations

   Create your routings (Optional)

   Calculate your manufacturing lead times (Optional)

   Create your workday calendar

Oracle Engineering

Make sure you set up Engineering as described in Overview of Setting Up Engineering.

   Define your engineering change orders(Optional)

   Define your engineering bills of material and routings(Optional)

Oracle Cost Management

Make sure you set up Cost Management as described in Overview of Setting Up Cost Management.

   Define your cost types

   Define your resource activities and activity costs

   Define your default WIP accounting classes for categories (Optional)

Oracle Project Manufacturing

Make sure you set up Project Manufacturing

Oracle MRP/Master Scheduling and Supply Chain Planning

Make sure you set up MRP/Master Scheduling and Supply Chain Planning as described in Overview of Setting Up MRP/Master Scheduling and Oracle Supply Chain Planning Overview of Setting Up MRP/Master Scheduling and Oracle Supply Chain Planning, Oracle MRP/Master Scheduling and Oracle Supply Chain Planning User's Guide.

   Define your demand classes (Optional)

STEP 2: Profile Options in Work In Process

Key
	You can update the profile option.
D, R, P	The profile is applicable to discrete, repetitive, and project manufacturing.
WO	The profile is applicable to flow manufacturing (work order-less) manufacturing.

Profile Option	User	System Administrator				Requirements
	User	User	Resp	App	Site	Required?	Default Value	Applies To
TP:WIP:Background Shop Floor Material Processing						Required	On-line processing	All
TP:WIP:Completion Material Processing						Required	On-line processing	D, R, P
TP:WIP:Completion Transaction Form						Required	On-line processing	D, R, P
TP:WIP:Completion Transactions First Field						Required	Job	D, R, P
TP:WIP:Concurrent Message Level						Required	Message level 0	D, R, P
TP:WIP:Material Transaction Form						Required	On-line processing	D, R, P
TP:WIP:Material Transactions First Field						Required	Job	D, R, P
TP:WIP:Move Transaction						Required	On-line processing	D, R, P
TP:WIP:Move Transaction First Field						Required	Job	D, R, P
TP:WIP:Move Transaction Quantity Default						Required	None	D, R, P
TP:WIP:Operation Backflush Setup						Required	On-line processing	D, R, P
TP:WIP:Resource Transactions First Field						Required	Job	All
TP:WIP:Shop Floor Material Processing						Required	On-line processing	All
TP:WIP:Work Order-less Default Completion						Required	Unscheduled	WO
WIP:Default Job Start Date						Required	No	D, P
WIP:Define Discrete Job Form						Required	Interactive definition	D, P
WIP:Discrete Job Prefix						Required	None	D, P, WO
WIP:Exclude Open ECOs						Required	Yes	D, R, P, WO
WIP:Job Name Updatable						Required	Yes	D, P
WIP:Move Completion Default						Required	No	D, R, P
WIP:Requirement Nettable Option						Required	View all subinventories	D, R, P, WO
WIP:See Engineering Items						Required	Yes	D, R, P, WO

STEP 3: Define WIP Parameters

Try to open the Discrete Jobs form to create the Standard Discrete Jobs

Responsibility: Work In Process Navigation: Discrete > Discrete Jobs

Select the Organization as "DYN" (Newly created manufacturing organization)

Will get the below error message while opening the Discrete Jobs form

To rectify this error, first we should define the WIP Parameters.

WIP Parameters:

WIP Parameter form have multiple TAB regions

1. Discrete
2. Repetitive
3. Costing
4. Move Transaction
5. Material
6. Intraoperation
7. Outside Processing
8. Scheduling
9. Mobile
10. Serial
11. Other

We must define modes of operation that affect other functions in Oracle Work in Process and assign default values before we can perform any transactions in our organization. We must also enable the intra-operation steps we want to use in our routings to allow detailed tracking within operations on the shop floor. Oracle Work in Process always enables queue for each operation and To Move for the final operation in a routing.

Responsibility: Work In Process Navigation: Setup > Parameters

Discrete:

• Default Discrete Class: Determines the default Account codes for Discrete job transactions.
• Default Lot Number Type: Determines how lot numbers are assigned to discrete jobs.

Available Lot Number Types

1. Job Name  - Lot Numbers are based on the Discrete Jobs Name
2. Based on Inventory Rules - Based on the Inventory Rules which we have defined in Inventory
3. No Default - No Defaults

• Respond to Sales Order Changes: Determines if and how the system responds to changes to assemble-to-order (ATO) sales orders and their related discrete jobs. Determines the status of a work order reserved and linked to a sales order: if a configured item is de-linked from a sales order or sales order line placed on hold.

Available Values

1. Never: The work order will not be placed on hold if you de-link the configured item from the sales order, or if the sales order is placed on hold.
2. Always: The work order will be placed on hold if you de-link the configured item from the sales order, or if the sales order is placed on hold.
3. When Linked 1 to 1: The work order will be placed on hold if it is the only work order reserved to that sales order.

Important: When cancelling sales order lines with ATO items, this parameter, is ignored by the system.

REPETITIVE:

• Recognize Period Variances

Determines which repetitive schedule variances are posted to the general ledger when an accounting period is closed. The options are as follows:

All Schedules Post variances for all repetitive schedules. Cancelled and Complete- No Charges Only Post variances for repetitive schedules with statuses of Cancelled or Complete-No Charges.

• Autorelease Days

Determines the time period within which the system automatically releases the next Unreleased schedule.

When you complete a repetitive schedule, the system searches within the autorelease time frame for an Unreleased schedule, or for a schedule with a status of Released, Complete, or On Hold. If one exists, the status of the newly completed schedule changes to Complete-No Charges and the future schedule is automatically released. If no such schedule exists, the status of the schedule changes to Complete. If more than one schedule exists within the autorelease time frame, only one schedule is released.

COSTING:

For Standard Costing Organizations, this Costing TAB will be greyed out.

These parameters are for Average Costing organizations.

• Default Completion Cost Source

Two Cost Sources:

• System Calculated
• User Defined

This parameter determines how resource costs are determined as assemblies are completed from jobs into inventory.

	If this option is set, resources can be costed at either the actual resource costs or at the resource predefined cost depending on how the System Option parameter is subsequently set.
	When completing assemblies from a non-standard job with no routing, the resource rate associated with the Average Rates cost type is used.
	If the option is set, you must choose a user-defined cost type using the Cost Type Parameter. This cost type is then used to determine the resource cost for the assemblies being completed.

• Additional Information: If there are uncleared costs left in the job, they are posted to the job variance accounts when the job is closed. Residual costs could be left in the job if: 1) the Auto Compute Final Completion option is set, but not all assemblies are completed or scrapped or 2) the job earns costs between the last final completion and the close transaction.

• System Option

If you select the System Calculated completion cost source, you must select a System Option.

The available options are as follows:

User Actual Resources Resources costs are determined based on the actual costs that have been charged to the job. Use Predefined Resources Resources costs are determined using the predefined resource cost.

• Cost Type

Determines which cost type to use as the default when the Default Completion Cost Source is User-Defined. You can only select a Cost Type if the Default Completion Cost Source parameter is set to User Defined. See: Defining a Cost Type.

• Auto Compute Final Completion

Determines whether the Final Completion in the Completion Transaction window defaults to checked (Yes).

Move Transaction:

• Require Scrap Account: If you require to account the Scraps then enable this checkbox.
• Allow Creation of New Operations: If this checkbox has enabled then system will allow us to create a new Operations for that particular Discrete Jobs
• Allow Moves Over No Move Shop Floor Statuses If this checkbox has enabled then system will allow us to move the materials even though there is a restrictions in Shop Floor Statues form ("Allow Moves" check box will be unchecked in Shop Floor Statues form for a particular status. If we enable "Allow Moves Over No Move Shop Floor Statuses" this checkbox then system will override the Shop Floor Statuses settings.)

Material:

Intra Operation:

Enable the check boxes for the required statuses. If you don't want to move the materials in any of the statuses then uncheck those things.

Outside Processing:

• Shop Floor Status for PO Move Resources: You can define the statuses in "Shop Floor Status" form and then you can assign that status in this field.
• Requisition Creation Time: When you would like to create the Purchase Requisition?
• At Operation: When we move the moterials to Outside Processing Operation then that time the Requisition Import program will be submitted and Purchase Requisition will be created
• At Job/Schedule Release: As soon as we release the Job/Schedule, the Requisition will be created
• Manual: Manually we need to create the Purchase Requisitions by running the "Requisition Import" Program.
• Job Roles for Notifications: If you want to notify Production Scheduler and Shipping Manager about the Jobs then you can enter their names
• Propagate Job Change to Purchasing: If you would like to propagate the changes that are made in Jobs to Purchase Order then enable "Automatic". Else make it as Manual and do changes in Purchase Orders manually.
• Need-By Date Tolerance: System will allow us Plus or Minus the entered date for Need by date.

scheduling, mobile, other:

Leave the defaults in Scheduling, Mobile and Other TABs

serial:

STEP 4: Define WIP Accounting Classes

We must define separate accounting classes for Standard Discrete Jobs, Non-Standard Expense Jobs, Non-Standard Asset Jobs, and Repetitive Assemblies. Accounting classes include the elemental valuation and variance accounts you use to cost discrete and repetitive production.

Responsibility: Work In Process Navigation: Setup  > WIP Accounting Classes

Create one Accounting Class for Standard Discrete Jobs

Standard Discrete:

Class: Enter the WIP Accounting Class Code

Type: Select "Standard Discrete" for Standard Discrete Jobs

Enter the Below Accounts

• WIP Material Account and it's Variance Account
• WIP Material Overhead Account
• WIP Resource Account and it's Variance Account
• WIP Outside Processing Account and it's Variance Account
• Standard Cost Variance Account

After defining the WIP Accounting Class for Standard Discrete Jobs, attach this Accounting Class in WIP Parameters

Responsibility: Work In Process Navigation: Setup > Parameters

Expense Non-Standard for Expense:

Expense Non-Standard for Rework:

Likewise you can create the WIP Accounting Classes for RMA Rework, Asset Non-Standard Jobs etc.,

STEP 5: Shop Floor Status

If you want to optionally prevent move transactions from steps within an operation, you can define shop floor statuses which prevent moves and assign them to operations and intraoperation steps within discrete jobs or repetitive schedules. You can also use these statuses to record more detailed information regarding assemblies at a particular step within an operation.

create Shop Floor Statuses:

Responsibility: Work In Process

Navigation: Move Transactions > Shop Floor Statuses > Shop Floor Statuses

After creating the Shop Floor Statuses, you can assign these statuses against the Discrete Jobs Operations whenever it's required

Assign Shop Floor Statuses TO discrete Jobs:

Navigation: Move Transactions > Shop Floor Statuses > Assign Shop Floor Statuses

Query by Job number and assign the Shop Floor Status for a particular Operation, Department and Step.

Assign Shop Floor Statuses in WIP Parameters:

Responsibility: Work In Process Navigation: Setup > Parameters

STEP 6: Define Employee Labour Rates

If you want to charge employee labor for employees that you defined, you must define the hourly labor rate of your employees. Oracle Work in Process uses employee rates when you manually charge person-type resources to jobs or repetitive schedules that do not charge at the standard rate, and when you associate an employee number with the resource you are charging.

You can add, delete, and update the effective date of the hourly labor rates for person-type resources (employees). You can define multiple hourly labor rates for the same employee, as long as each rate has a different effective date. If you use actual costing, the hourly labor rate rather than the standard rate is used to compute the actual cost of person-type resources charged to discrete jobs and repetitive schedules. You can enter an employee number when performing a person-type resource transaction in the Resource Transactions window or the Resource Transaction Open Interface Process. The employee's most current hourly labor rate is used to compute the actual cost of the transaction.

Responsibility: Work In Process Navigation: Setup > Employees > Labour Rates

Query the Employee that you would to define the Labour Rate

You can define multiple rates for one employee with different dates.

STEP 7: Production Lines

You can define and update, but not delete, production lines. A production line describes a unique set of operations, departments, and/or manufacturing cells that produce one or more of your products. You can associate production lines with repetitive assemblies, discrete jobs, and work order-less completions.

Responsibility: Work In Process Navigation: Setup > Production Lines

   To define a production line:

1. Navigate to the Production Lines window.

2. Enter the production line Name.

For example, enter LINE1 to signify production line number 1, or BOARD to signify the PC board assembly line.

3. Enter the production line Description.

4. Enter the Minimum Hourly Rate.

This represents the minimum number of assemblies the line can produce per hour. The minimum hourly rate must be greater than 0 and less than or equal to the maximum rate.

Note: It's not a hourly Amount. It's a hourly output number

5. Enter the Maximum Hourly Rate.

This represents the maximum number of assemblies the line can produce per hour. The maximum hourly rate must be greater than or equal to the minimum rate.

Note: It's not a hourly Amount. It's a hourly output number

6. Enter the production line Start time.

This is the time at which your production line starts running every day. You can update this field at any time.

7. Enter the production line Stop time.

This is the time at which your production line stops running every day. You can update this field at any time.

Note: The difference between the Start and Stop times represents the amount of time per day a line is available. If the Start and Stop times are the same, the production line is considered to be available 24 hours per day.

8. Select the Lead Time Basis.

If the lead time varies by assembly, you can schedule the repetitive production time based on the routing of the assembly the line is building. You can set a fixed lead time if the lead time is determined by the production line and does not vary by assembly. You can update this field at any time.

Fixed: The system schedules the first unit completion date and the operations of all repetitive schedules on this production line based on the fixed lead time hours you enter for the production line. Scheduling is done regardless of actual capacity or the lead time of the routing of the repetitive assembly.

Routing-Based: The system schedules the first unit completion date and the operations of all repetitive schedules on this production line using the detailed shop floor scheduling algorithm, the routing of the assembly, and a quantity of 1.

9. If the lead time basis is fixed, you must enter the Fixed Lead Time, in hours per assembly, for the production line. This is the amount of time it takes to produce the first assembly, from start to finish on the production line. The daily quantity from that point on is set when you define individual repetitive schedules and must be less than or equal to the maximum hourly rate. The fixed lead time entered here is used to schedule repetitive schedules produced on this production line. You can update this field at any time. You cannot enter a value in this field for a routing-based production line.

Attention: For lines with a lead time basis of Routing-based, the lead time is calculated by applying the detailed shop floor scheduling algorithm to the routing of the assembly.

10. Enter the Inactive On date.

The Inactive On date can be greater than or equal to the current date. If you do not enter an Inactive On date, the production line is active indefinitely. You cannot update any repetitive schedule that uses this production line, nor can you assign this production line to a new repetitive schedule as of this date.

STEP 8: Defining Job and Schedule Documents

You can define standard job and schedule documents and then attach them to jobs and repetitive schedules.

You can use this window to create a catalog of standard job and schedule documents. You can then attach these documents to your jobs and repetitive schedules.

   To define standard job and schedule documents:

• Navigate to the Job and Schedule Documents window.

Responsibility: Work In Process Navigation: Setup > Job and Schedule Documents

Category: WIP Job/Schedule Attachments

Data Type: Short Text / Long Text / File / Web Page

Security: Organization / Set Of Books / None

Owner: Organization

----- RAJU DEVARAJ
drajudevaraj@gmail.com