August 8, 2023

Basic Oracle EBS Manufacturing Setups

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Setting up Oracle Apps Manufacturing involves a series of configurations and setups to enable various manufacturing processes and functionalities.

  1. Organization Structure Setup:
    • Define Legal Entities, Operating Units, and Inventory Organizations:
      • Specify legal entities that represent distinct legal entities within your enterprise.
      • Set up operating units to manage financial transactions and business processes.
      • Define inventory organizations to manage inventory and manufacturing processes.
  2. Item Master Setup:
    • Define Items:
      • Specify item attributes like item type (standard, model, kit, etc.), description, and category.
      • Set up item relationships, such as substitutes, co-products, and by-products.
    • Item Costs:
      • Configure cost information, such as item cost organizations, cost methods (average, standard, etc.), and cost updates.
  3. Bill of Materials (BOM) Setup:
    • BOM Components:
      • Create BOMs with details of components and their quantities needed to produce finished goods.
      • Define alternate BOMs for different manufacturing scenarios.
    • Effectivity and Revision Control:
      • Set up effective dates and revision levels for BOMs.
      • Manage changes to BOMs through approvals and version control.
  4. Routing or Work Definition Setup:
    • Define Routings:
      • Create routings or work definitions that outline the sequence of operations required for manufacturing.
      • Specify resource requirements, work centers, operation sequences, and setup times.
    • Resource and Capacity Planning:
      • Set up work centers with capacity details, calendars, and scheduling rules.
      • Define resources like machines, labor, and tools required for operations.
  5. Work in Process (WIP) Setup:
    • WIP Parameters:
      • Configure WIP parameters like job and schedule classes, discrete job settings, and batch control.
    • WIP Accounting:
      • Define WIP accounting classes and categories for cost tracking and work order completion accounting.
  6. Quality Management Setup:
    • Quality Codes and Plans:
      • Create quality codes to categorize defects and issues.
      • Set up quality plans with inspection requirements, tests, and tolerances.
    • Quality Results:
      • Configure quality result types and result categories to track inspection results.
  7. Inventory Setup:
    • Inventory Organizations:
      • Create inventory organizations and define their parameters, such as valuation and costing information.
    • Subinventories and Locators:
      • Set up subinventories and locators for organizing and tracking inventory within inventory organizations.
  8. Purchasing Setup:
    • Supplier Setup:
      • Define suppliers and supplier sites for procuring raw materials or components.
    • Sourcing Rules and Purchase Agreements:
      • Configure sourcing rules to determine the supply sources for items.
      • Set up purchase agreements for volume discounts or long-term supplier contracts.
  9. Order Management Setup:
    • Order Types and Processing Rules:
      • Create order types for different sales scenarios (standard, drop ship, etc.).
      • Configure order processing rules for order fulfillment and shipping methods.
  10. Master Scheduling/MRP Setup:
    • Planning Parameters:
      • Set up planning parameters like planning method (MRP, Min-Max, etc.), netting method, and planning horizon.
    • Safety Stock and Demand Forecasts:
      • Define safety stock levels and establish demand forecasts for items.
  11. Costing Setup:
    • Cost Organizations:
      • Define cost organizations and their relationships to inventory organizations.
    • Cost Components and Roll-up:
      • Set up cost components to categorize costs (material, labor, overhead, etc.).
      • Configure cost roll-up processes to calculate and update costs.
  12. Shop Floor Control Setup:
    • Work Center Schedules:
      • Define work center schedules and operating hours.
    • Labor and Resource Reporting:
      • Configure labor and resource reporting for tracking work order progress.
  13. System Integration and Interfaces:
    • Data Import/Export:
      • Set up interfaces for data import/export between Oracle E-Business Suite and external systems.
    • Integration with Other Modules:
      • Configure integrations with other Oracle E-Business Suite modules like Financials, Procurement, and Order Management.
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