Oracle Applications 11i

Bill of Materials

Introduction• Overview of Bill of Material

– Oracle Manufacturing and Oracle Order Management use bills of material to store lists of items that are associated with a parent item and information about how each item is related to its parent.

– Oracle Manufacturing supports standard, model, option class, and planning bills of material.

– Can create either an engineering or manufacturing bill, copy an existing bill, or reference a common bill.

• When created a bill, it exists only in the current organization.

• To use a bill in another organization, either copy it or reference it as a common

Bill of Material

BOM Item

Sub Assembly1 Phantom Sub Assembly

Component1 Component2

Sub-Component1

Sub-Component …

Sub-Component1

Sub-Component …

Product integration

• Oracle Bills of Material integrates with the following applications– Oracle Inventory – Oracle Engineering – Oracle Work in Process– Oracle Purchasing– Oracle Master Scheduling/MRP and Oracle Supply– Chain Planning– Oracle Order Entry– Oracle Cost Management

Bill of Material Types

• Standard• Model• Option Class• Planning• Engineering• Phantom

Bill of Material Types (Contd.)• Standard : A standard bill of material is the most common type of bill and lists the

mandatory components, the required quantity of each component, and information to control work in process, material planning, and other Oracle Manufacturing functions.

• Model : A model bill of material defines the list of options and option classes you can choose in Oracle Order Management to order a configuration.

• Planning : A planning bill of material is a bill of material structure that includes a percentage distribution for its components. The percentages associated with the components on a planning bill of material do not need to add to 100%.

• A product family is a grouping of products whose similarity in resource usage, design, and manufacturing process facilitates planning at an aggregate level.

• Phantom Bill : A phantom assembly is a non stocked assembly that lets you group together material needed to produce a subassembly. When you create a bill of material for a parent item, you can specify whether a component is a phantom. One bill of material can represent a phantom subassembly for one parent item, and a stocked subassembly for another parent

Navigation Bill of materials

Bill of materials

Bills

Bills

Main pageC

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Various tabs available

Choose buttons to perform related tasks: Substitutes :- Assign substitute components Designators :- Create reference designators Bill Details :- Reference common bills Revision :- Define item revisions

BOM Item

Components

• Bills of Material restricts the types of items you can assign as components based on the type of bill you are defining.

• Valid Parent/Component Relationships

Parent BOM Item Type Component BOM Item Type

Standard Item Standard Item

Model Item Standard Item, Model Item, Option Class Item

Option Class Item Standard Item, Model Item, Option Class Item

Planning ItemStandard Item, Model Item, Option Class, Planning Item

Revisions

• Can define any number of revisions for the item

• Revisions are sorted according to ASCII rules. Therefore, cannot use revision 10 after revision 9 because, according to ASCII sorting, 10 precedes 9.

Revisions (Contd.)

List all the Revisions for BOM Item.

Substitute Component

Substitute Component. E.g. A 40GB HDD can be substituted by a 60 GB HDD

Reference Designators

Reference designators are sequenced comments and instructions that pertain to a component.

The warning indicates that the reference designators cannot exceed the

component quantity. If qty related check box is unchecked then the designators

can exceed component quantity.

Alternate BillsAlternate field is used to create alternate bills

Copying Bill Information• You can save time defining new, similar bills by copying their

information rather than creating them manually.• You can copy a bill from your current organization or from another

organization that shares your same item master organization.• You can then modify your new bill as necessary.• You can copy any revision of a primary or alternate bill.• You can only copy bills between items having the same BOM Item

Type attribute. For example, if the new bill is a model bill, you can only copy existing bills that are model bills.

• When you copy the bill from another organization, the components and Substitute components on the bill you are copying must exist in the target organization.

Copying Bill Information (Contd.)

Tools Copy Bill from. To copy from

existing bill

Copying Bill Information (Contd.)

Organization where bill exists

Select Item whose bill is to be copied

Copying Bill Information (Contd.)

The following message is displayed when copy

button is pressed.

Copying Bill Information (Contd.)

The components, substitutes, designators etc are copied for this bill.

Common Bills of Material• If two or more organizations manufacture the same item

using the same bill of material, you can define the bill in one organization and reference it from the other organizations.

• You cannot reference another bill or routing as a common if that bill or routing also references a common. In other words, you cannot create a chain of common references.

• You can only reference another bill or routing as a common if it has the same alternate name assigned to it.

• If the current bill you are creating is a manufacturing bill, the common bill must also be a manufacturing bill.

• Sharing bills across multiple organizations minimizes the maintenance of your bills of material.

Common Bills of Material (Contd.)Tools Create

common bills

Common Bills of Material (Contd.)Single Organization: Enter the organization and item names where the common bill needs to be created. Organization Hierarchy: Enter the required name of the organization hierarchy. In this case, the processing is done for all organizations below the current organization in the chosen organization hierarchy. All Organizations: Then processing is done for all organizations that have the same item master organization as the current organization.

Common Bills of Material (Contd.)

When clicked on OK a request is submitted.

The status of common BOM creation can be seen from view log of concurrent request.

Practice

• Create a BOM. Add components and other necessary details for BOM. Create Substitute components and Reference Designators.

• Create a new BOM by copying an existing BOM

• Create an alternate BOM for an item in an organization.

• Enable an item in a second organization and copy a BOM from the first organization.

Routings

Introduction

• A routing defines the step–by–step operations you perform to manufacture a product.

• Each routing can have any number of operations.

• For each operation specify a department that determines the resources you may use for that operation.

• Routings are used to specify the processes that are used to manufacture discrete and repetitive assembly items.

Primary and Alternate Routings

• A primary routing is the list of operations most frequently performed to build a product.

• When you define a new primary routing, you specify only the item (no alternate name) and you can assign a routing revision.

• You can define one primary routing and many alternate routings for an item.

• You can define an alternate routing to describe a different manufacturing process used to produce the same product.

Dynamic Routing

• Paths that jobs take are not always known at creation. Depending on initial operations and their results, operation flexibility is frequently required.

• There can be numerous possibilities defined as part of a routing network, any one of them being selectable based on the outcome of the last operation,

• E.g. A Chemical product that undergoes some chemical reaction.

Creating a Routing

• For each routing, define the operations, the sequence to perform them, and the resources required at each operation. You can define either a primary or an alternate routing

• You must define at least one department before you can create a routing

• BOM Allowed must be set to Yes for the item you are creating a routing

• You assign department resources to an operation.

Overview (Contd.)

• Resources are anything— except component material used to manufacture, cost, or schedule products.

• A department is a collection of resources designed to perform certain tasks.

• A department class is a collection of departments.

Overview (Contd.)Department Class - Production

Department: Machining Department: Welding

Shift 1Machinist

Drill PressWelding Torch

WelderShift 2

Shift 1

Shift 2

Shift 1

Shift 1

Resources

Department

Department Class

Creating a Department Class

Department classes are used to group departments for shop floor schedulingand control, and to identify manufacturing cells and flexible machine

centers. Department classes are used for reporting purposes.

Navigation

Setup

Department Classes

Departments button display the departmentsassigned to this department class and the dates when thesedepartments can no longer be assigned to routing operations.

Defining a Department• A department is an area within your

organization that consists of one or more people, machines, or suppliers, where you want to collect costs, apply overhead, and compare load to capacity.

• You assign a department to each operation in a routing, and assign resources that are available for that department.

• Navigation– Bills of Material Routings Define Departments

Defining a Department (Contd.)

Defining a Department (Contd.)

Click Resources button on the Departments page

Each resource can be assigned to any number of departments;multiple resources can be assigned to each department.

For owned resources, indicate whether this department can sharethe resource and capacity with other departments.

Enter the number of capacity units (resource units) available forthis department, for example, the number of machines for amachine resource.

Defining a Resource• Use resources to define the time an assembly spends at an

operation and the cost you incur at the operation.• A resource is anything you require to perform, schedule, or cost,

including but not limited to employees, machines, outside processing services, and physical space.

• A resource and usage rate for all scheduled activities is required in a routing.

• When you define your departments, you assign the resources available in each department and the shifts that each resource is available. For each operation you define, you specify a department and list of resources and usages. An operation can use any resource that is available in the department, but you do not need to use all resources assigned to the department.

Defining a Resource (Contd.)

Bills of Material Routings Define Resources

Defining a Resource (Contd.)

Click on the Employees Button in Resources window

You can define the roles which represent what an employee can dofor a required task.

Creating a Routing

Bills of material

Routings

Routings

Creating a Routing (Contd.)Item for which routing is to

be created

Organization code

Populate for alternate routing

Department name

Operation sequence number

Assigning Operation Resources

Resource name

Item: When charges fluctuate with quantity change.

Lot : When resource usage quantity is the amount required per job or

schedule

Assigning Operation Resources (Contd.)

Two or more resources can be scheduled to be working concurrently within the same job operation

Assigning Operation Resources (Contd.)

Determine how each resource is charged in Work in Process.

You can charge resources manually or automatically

Assigning Operation Resources - Alternate

Optionally, you can define substitute resources for each primary resource group defined. This enables you to specify resource sequences that can replace the primary resource group

Creating Routing Revision

The implementation date, which is either the date the revision was added or the date the routing was transferred from Oracle Engineering, is displayed. If the routing is transferred from Engineering, the ECO text is displayed

Routing Details

Completion Subinventory and Locator can be entered here.

Creating Custom Deletion Constraints

Use custom deletion constraints to enforce specific business rules.Custom deletion constraints prevent the deletion of bills or routings if

your data meets the conditions set forth in the constraint.

NavigationBill of Materials

Setup

Delete Constraint

Lead Time

Lead Time Definitions

• Fixed LeadTime– Fixed Leadtime is the portion of leadtime that is independent of order

quantity. This could be setups, teardown, batch processes or anything else that requires time to do a lot. Fixed leadtimes for an item can be entered manually.

– A manually entered leadtime will be replaced by the leadtimes generated by the Manufacturing Leadtime rollup

• Variable LeadTime– VARIABLE LEADTIME is the portion of leadtime that is dependent upon

order quantity. It is the required time to produce one additional unit of an assembly.

– The formula the system uses is: [(End date - system date) - fixed leadtime] + leadtime lot size

Lead Time Definitions (Contd.)• PRE-PROCESSING LEADTIME

– Pre-Processing Leadtime is the time required to release a purchase order. – It is used for Purchase orders, discrete jobs and repetitive lines. – It can include the requisition processing and any approval cycles required. – It can also be used for the time necessary to create internal paperwork for a

discrete job or repetitive line from the time you learn of the requirement.

• PROCESSING LEADTIME – Processing Leadtime is the time required to purchase or manufacture an item. – It is computed as the time required to complete 1 leadtime lot size of an item. – The formula for this includes the fixed and variable portions of leadtimes.

• POST-PROCESSING LEADTIME – Post-processing Leadtime is the time it takes to receive, inspect and move a

buy part to inventory.

Lead Time Definitions (Contd.)• CUMULATIVE MANUFACTURING LEADTIME

– Cumulative Manufacturing Leadtime is the time required to make an assembly if all raw materials are in stock.

– This assumes that you must manufacture every assembly, level by level. BOM automatically calculates this value.

• CUMULATIVE TOTAL LEADTIME – CUMULATIVE TOTAL LEADTIME is the time required to make an assembly

if no raw materials are in stock. – This assumes that every raw material would either have to be ordered or

manufactured. BOM automatically calculates this value.

• TOTAL LEADTIME – TOTAL LEADTIME is the Fixed Leadtime + (Variable Leadtime * Order Quantity).

LeadTime Definitions (Contd.)

Inventory

Item

Organization Item

Cost Rollup

This-Level and Previous-Level Costing

Oracle Cost Management (OCM) uses this-level and previous-level costing concepts.

• This-level costs are the routing costs of the assembly.

• Previous-level costs are the component costs of the assembly, including the routing costs of those components

Previous-level costs =Previous-level costs = Component costsComponent costs

This-level costs =This-level costs = Routing costsRouting costs

This-Level and Previous-Level Costing (Contd.)

• This-Level Costs– The outside processing, resource, and overhead

costs at the current level of an assembly– Any material overheads earned upon completion of

an assembly

• Previous-Level Costs– The material, material overhead, outside

processing, resource, and overhead costs of the components used in the manufacture of an assembly

Single-Level Versus Full Cost Rollup

Item: BicycleItem: BicycleSingle-level rollup: 110.00Single-level rollup: 110.00Full cost rollup: 120.00Full cost rollup: 120.00

Item: Frame assemblyItem: Frame assemblyQPA: 1QPA: 1Cost: 80.00Cost: 80.00Full cost rollup: 90.00Full cost rollup: 90.00

Item: WheelItem: WheelQPA: 2QPA: 2Cost: 10.00 (old)Cost: 10.00 (old)Cost: 15.00 (new)Cost: 15.00 (new)

Item: HandlebarItem: HandlebarQPA: 1QPA: 1Cost: 20.00 (old)Cost: 20.00 (old)Cost: 30.00 (new)Cost: 30.00 (new)

Item: FrameItem: FrameQPA: 1QPA: 1Cost: 50.00Cost: 50.00

Item: SeatItem: SeatQPA: 1QPA: 1Cost: 10.00Cost: 10.00

Single-Level Versus Full Cost Rollup (Contd.)

• Full Cost Rollup– A full cost rollup first performs a bill of material explosion

for the assemblies to determine the structure to the lowest level. It then builds the cost of the assemblies starting with the lowest level and works up the structure to the top-level assembly.

– This method gives you the most current costs for your assemblies because it reflects the most current bill of material structure and component costs for your assemblies.

– You cannot rollup costs in the frozen or average cost types.

Single-Level Versus Full Cost Rollup (Contd.)

• Single-Level Cost Rollup– Use a single-level rollup to avoid rolling up costs at lower

levels. A single-level rollup looks only at the first level of the bill structure of each assembly being rolled and then rolls the cost for the items at this-level into the parent.

– This method does not reflect structure or cost changes that have occurred at levels below the first level of your assemblies.

– Use single-level rollups to assign costs to new assemblies when you do not want to roll up the lower levels and potentially revalue the lower levels when you perform a cost update.

BOM and Routing Open Interface

- Bill of Materials

Interface Tables

• BOM_BILL_OF_MTLS_INTERFACE • BOM_INVENTORY_COMPS_INTERFACE • BOM_ASSY_COMMENTS_INTERFACE • BOM_REF_DESGS_INTERFACE • BOM_SUB_COMPS_INTERFACE• MTL_ITEM_REVISIONS_INTERFACE

Interface Tables (Contd.)• In order to import a BOM with components, you need to populate:

– BOM_BILL_OF_MTLS_INTERFACE – BOM_INVENTORY_COMPS_INTERFACE

• If you want to assign standard comments, reference designators, and substitute components to your BOM, you need to populate: – BOM_ASSY_COMMENTS_INTERFACE – BOM_REF_DESGS_INTERFACE – BOM_SUB_COMPS_INTERFACE

• If you enter a value in the REVISION column of the BOM_BILL_OF_MTLS_INTERFACE table, the Bill and Routing Interface program inserts a row into the MTL_ITEM_REVISIONS_INTERFACE table.

• To assign multiple item revisions, it is better to insert data directly into the MTL_ITEM_REVISIONS_INTERFACE table.

BOM_BILL_OF_MTLS_INTERFACE table

• REQUIRED COLUMNS FOR BOM_BILL_OF_MTLS_INTERFACE. – ASSEMBLY_ITEM_ID – ORGANIZATION_ID – ASSEMBLY_TYPE

BOM_BILL_OF_MTLS_INTERFACE table (Contd.)

• REQUIRED COLUMNS FOR BOM_BILL_OF_MTLS_INTERFACE – ASSEMBLY_ITEM_ID – ORGANIZATION_ID – ASSEMBLY_TYPE – PROCESS_FLAG

• If you create an alternate BOM, you must also enter a value in the ALTERNATE_BOM_DESIGNATOR column.

• If the BOM you import references a common BOM, you must enter a value in the COMMON_ORGANIZATION_ID and COMMON_ASSEMBLY_ITEM_ID columns, or you can enter a value in the COMMON_BILL_SEQUENCE_ID column.

• To create an engineering bill, you must enter a value of 2 (engineering) for the ASSEMBLY_TYPE column. If Null, import program defaults to 1 (manufacturing)

BOM_INVENTORY_COMPS_INTERFACE table

• REQUIRED COLUMNS FOR BOM_INVENTORY_COMPS_INTERFACE TABLE – PROCESS_FLAG – COMPONENT_ITEM_ID – COMPONENT_SEQUENCE_ID – OPERATION_SEQ_NUM – EFFECTIVITY_DATE – BILL_SEQUENCE_ID

• You must also specify a value in the ALTERNATE_BOM_DESIGNATOR column if you assign components to an alternate BOM and have not entered a value for the BILL_SEQUENCE_ID column.

BOM_ASSY_COMMENTS_INTERFACE table

• REQUIRED COLUMNS FOR THE BOM_ASSY_COMMENTS_INTERFACE TABLE. – STANDARD_REMARKS_DESIGNATOR – BILL_SEQUENCE_ID – PROCESS_FLAG

BOM_REF_DESGS_INTERFACE table

• REQUIRED COLUMNS FOR BOM_REF_DESGS_INTERFACE TABLE. – COMPONENT_REFERENCE_DESIGNATOR – COMPONENT_SEQUENCE_ID – PROCESS_FLAG

• You can only import data into the BOM_REF_DESGS_INTERFACE table for standard components assigned to standard, model and option class BOMs.

BOM_SUBS_COMPS_INTERFACE table

• REQUIRED COLUMNS FOR BOM_SUBS_COMPS_INTERFACE TABLE. – SUBSTITUTE_COMPONENT_ID – SUBSTITUTE_ITEM_QUANTITY – COMPONENT_SEQUENCE_ID – PROCESS_FLAG

• You can only import data into the BOM_SUBS_COMPS_INTERFACE table for standard components assigned to standard, model and option class BOMs.

Import Rules• Different values of PROCESS_FLAG are

– All inserted rows must have the PROCESS_FLAG set to 1 (Pending)– Import program validates records with PROCESS_FLAG 1. If the assign or validate

procedure fails for a row, the program sets the PROCESS_FLAG to 3 (Assign/Validation Failed)

– If a row fails on import, the program assigns a value of 4 (Import Failed) to the PROCESS_FLAG

– Successfully imported rows have a PROCESS_FLAG value of 7 (Import Succeeded).

• Even though you can import bills and routings simultaneously, all routing operations must exist before you can assign a component to an operation. If a routing does not exist, you cannot assign an operation sequence to a component on a BOM

• You should import primary BOMs before importing alternate BOMs. If the program tries to validate an alternate bill before validating the primary bill, the record fails

Tracking error record• To identify the error message for a failed row, the program

automatically populates MTL_INTERFACE_ERRORS table with the same value as the TRANSACTION_ID value.

• Each error has a value for the MESSAGE_NAME and REQUEST_ID columns in the error interface table.– MESSAGE_NAME column corresponds to messages stored in the Oracle

Application Message Dictionary.– The REQUEST_ID column stores the concurrent request id.

• If you import a BOM with multiple components and one of the components fails validation, then the bill will be created without the failed component. If, however, the row in the BOM_BILL_OF_MTLS_INTERFACE table fails, the BOM and and all of its details are not imported.

Interface Tables for Routings

• BOM_OP_ROUTINGS_INTERFACE • BOM_OP_SEQUENCES_INTERFACE • BOM_OP_RESOURCES_INTERFACE • BOM_OP_INSTRUCTIONS_INTERFACE • MTL_RTG_ITEM_INTERFACE

Interface Tables (Contd.)• To import a routing with operations and resources, you need to

populate the following tables: – BOM_OP_ROUTINGS_INTERFACE – BOM_OP_SEQUENCES_INTERFACE – BOM_OP_RESOURCES_INTERFACE

• If you want to assign standard instructions to your routings, then you populate the BOM_OP_INSTRUCTIONS_INTERFACE table

• If you enter a value in the PROCESS_REVISION column of the BOM_OP_ROUTINGS_INTERFACE table, the Bill and Routing Interface program inserts a row in the MTL_RTG_ITEM_REVISIONS table.

• To insert multiple routing revisions, you can insert data directly into the BOM_RTG_REVS_INTERFACE table

BOM_OP_ROUTINGS_INTERFACE table

• REQUIRED COLUMNS FOR THE BOM_OP_ROUTINGS_INTERFACE TABLE. – PROCESS_FLAG – ASSEMBLY_ITEM_ID – ORGANIZATION_ID – ROUTING_TYPE

• If you are creating an alternate routing, you must also enter a value in the ALTERNATE_ROUTING_DESIGNATOR column.

• You must enter a value in the COMMON_ASSEMBLY_ITEM_ID or the COMMON_ROUTING_SEQUENCE_ID columns to import common Routing.

BOM_OP_SEQUENCES_INTERFACE table

• REQUIRED COLUMNS FOR THE BOM_OP_SEQUENCES_INTERFACE TABLE – PROCESS_FLAG – ROUTING_SEQUENCE_ID – OPERATION_SEQ_NUM – DEPARTMENT_ID – EFFECTIVITY_DATE

• You must also specify a value in the ALTERNATE_ROUTING_DESIGNATOR column if you assign an operation to an alternate routing and have not entered a value for the ROUTING_SEQUENCE_ID column.

BOM_OP_RESOURCES_INTERFACE table

• REQUIRED COLUMNS FOR THE BOM_OP_RESOURCES_INTERFACE TABLE. – PROCESS_FLAG – RESOURCE_SEQ_NUM – RESOURCE_ID – OPERATION_SEQUENCE_ID

• You must specify a value in the ALTERNATE_ROUTING_DESIGNATOR column if you assign resources to an alternate routing and have not entered a value for the ROUTING_SEQUENCE_ID or the OPERATION_SEQUENCE_ID column.

BOM_OP_INSTRUCTIONS_INTERFACE table

• REQUIRED COLUMNS FOR THE BOM_OP_INSTRUCTIONS_INTERFACE TABLE. – OPERATION_SEQUENCE_ID – OPERATION_DESCRIPTION_CODE – PROCESS_FLAG

MTL_RTG_ITEM_REVS_INTERFACE table

• REQUIRED COLUMNS FOR THE MTL_RTG_ITEM_REVS_INTERFACE TABLE. – PROCESS_REVISION – ORGANIZATION_ID – INVENTORY_ITEM_ID – PROCESS_FLAG

Import Rules

• Different values of PROCESS_FLAG are– All inserted rows must have the PROCESS_FLAG set to 1

(Pending)– Import program validates records with PROCESS_FLAG

1. If the assign or validate procedure fails for a row, the program sets the PROCESS_FLAG to 3 (Assign/Validation Failed)

– If a row fails on import, the program assigns a value of 4 (Import Failed) to the PROCESS_FLAG

– Successfully imported rows have a PROCESS_FLAG value of 7 (Import Succeeded).

Tracking error record

• To identify the error message for a failed row, the program automatically populates MTL_INTERFACE_ERRORS table with the same value as the TRANSACTION_ID value.

• Each error has a value for the MESSAGE_NAME and REQUEST_ID columns in the error interface table.– MESSAGE_NAME column corresponds to messages stored

in the Oracle Application Message Dictionary.– The REQUEST_ID column stores the concurrent request id.