ORACLE

BOM

Creating Resource in Oracle BOM

The first proper step in Oracle BOM will be of creating resource.. I. Resources Resources are anythingexcept component materialrequired 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. d. 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. Dont 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.

Substitute Components
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.

Bill Of Material Creation in Oracle

A bill of material contains information on the parent item, components, attachments, and descriptive elements. Each standard component on a bill can have multiple reference designators and substitute components. You can create either an engineering or manufacturing bill, copy an existing bill, or reference a common bill. When you create a bill, it exists only in the current organization. To use a bill in another organization, you must either copy it or reference it as a common. The procedure below describes how to create a bill. Prerequisites ------------Define the parent item and all components as inventory items and set the BOM Allowed attribute to Yes and BOM Item Type to Model, Option Class, Planning or Standard.

To create a bill of material -----------------------------------1. Navigate to the Bills of Material window. Note: If your current responsibility does not include the Privilege to Maintain security function, you can only view bill information. If so, enter selection criteria in the Find Bills window and choose the Find button. The Bills Summary folder window appears. 2. Enter the parent item for which you are creating a bill, and if you are creating an alternate bill, enter the alternate. Note: Bills and routings can share alternate labels. If you create an alternate bill with the same label as an alternate routing, components are assigned to operations on the alternate routing. If there is no routing with the same alternate label, components are assigned to operations on the primary routing. 3. Enter or select the revision and the revision date. 4. If you are updating or viewing a bill, use the Display pop list to display all, current, or future and current components effective as of the revision date you specify. Check the Implemented Only field to further restrict the components to display. The Bills of Material window contains the following alternative regions: Main, Effectivity, Component Details, Material Control, Order Entry, Shipping, and Comments. 5. Enter the item sequence, operation sequence, and the component item. 6. In the Main tabbed region, enter the quantity used to make one unit of this assembly item at the current operation. This can include negative or decimal values, subject to the following rules: Pick-to-order bills cannot have fractional component quantities if Oracle Order Management is installed. Pick-to-order option class components cannot have negative values. Components with Check ATP turned on cannot have negative or zero quantities. If the component has Quantity Related turned on, then the component quantity cannot be fractional or negative. If an implemented component has Quantity Related turned on, then the component quantity must be equal to the number of reference designators. Attention: The planning process in Oracle Master Scheduling/MRP ignores negative requirements on standard discrete jobs and components with a negative usage on a bill of material when netting supply and demand. Note: If you enter a negative quantity for a component, you should enter either Assembly pull or Operation pull for the supply type to ensure that you transact the material when you build the bill. The Revision field displays the current revision of the component as of the revision date of the parent item.

7. Open the Effectivity tabbed region and enter the effective date range for each component. 8. Open the Unit Effectivity tabbed region and verify the following: The Implemented check box indicates whether the component is implemented. Checked: Component is on a pending Engineering Change Order (ECO) Unchecked: Component is on implemented ECO or was added directly to the bill 9. Open the Component Details alternative region and enter the planning percent. Enter the yield. Enter the Enforce Integer Requirement, or select a value from the list of values. Acceptable values are up, down and none. Indicate whether the component should be included in cost rollups If enabled, the material cost of this component, but not the routing cost, is included in the cost of the parent item. 10. Optionally, open the Material Control tabbed region and enter the supply type. Enter the supply subinventory and the locator. If you have set the BOM: Default WIP Supply Values for Components profile option to Yes, these values default from the item master. If any of these values are left blank, Work in Process will read the values contained in the item master. 11. For model, option class, and kit bills, open the Order Entry alternative region and enter the minimum and maximum sales order quantities. Indicate whether to check ATP. Indicate whether the component is optional and mutually exclusive. Enter the basis. 12. Open the Shipping tabbed region, and choose whether the component should be listed on shipping documents, required to ship, or required for revenue. 13. Choose buttons to perform related tasks