OPM Setup in R12

Monday, October 29, 2012 by Ajay Atre



OPM Setup in R12

OPM Example
Taking an example of chocolate process manufacturing where
A Finished good comprised with two ingredients as below
Finished Good- Chocolate FG
Ingredients- Chocolate Syrup and Chocolate-Water

Step#1 – Inventory Organization Parameters
Inventory - Navigation: Setup/Organizations/Parameters
Inventory Organization is a plant where the batches are produced or an organization that holds the inventory at specified locations.
Inventory organization as process manufacturing enabled



Step#2 – Inventory Item Attributes
Inventory - Navigation: Items /Master Items
Product, all the ingredients and by-products to be used for the production are defined as inventory items, process manufacturing enabled and must be assigned to the process manufacturing enabled inventory organization (ORA in this example)



Ingredients





Step#3 – Define Resources
OPM ALL- Navigation: Process Engineer /Setup/Generic Resource

OPM setups can be explained as below diagram.

      Routing composed of a series of Operations organized in Steps.
      Operations composed of Activities containing Resources.
      Formula composed of Ingredient, Product, and possibly Byproduct.
      Recipe linking the Routing and Formula together with Processing Instructions

Define and maintain resources on the Operation Activity window. Resources are the assets to produce batches, including production equipment, and employee labor. You can define each resource generally, for example, OVENS, or specifically OVEN 1, OVEN2 . . . OVEN n. For each resource, assign a classification code for cost management purposes. You can group resources into resource classifications, for example, group OVENS and STOVES into COOKING UNITS.



Step#4– Define Operations  
OPM ALL- Navigation: Process Engineer/ Process Operations
Operations are nothing but combinations of activities that are required to perform production.



Under activity you can assign related activity
And you can then tie up the resource which we created above to this activity.
So Operations consists of activities and activities consist of resources.


Change the status of the operations as approved for general use.





One can define multiple operations consisting of different activities like mixing rectification etc.


Step#5 – Define Routing
OPM ALL- Navigation: Process Engineer /Process Routings
A routing is a sequenced set of operations to perform to complete a production batch.
In this step we are creating Routing and assigning the above created operation.



Change the status for approving it by Actions and Change Status.
Once changed from new to approved for general use you will see status changed as below.



Step#6 – Define organization as plant and/laboratory
Product Development Security Manager- Navigation: Organization Parameters  



In the Yield UOM field. This is UOM of final output product.

Step#7 – Define Formula
OPM ALL- Navigation: Formulator/Formulas
In formula you can decide things like Finished Good would need what kind of ingredient and what will be by product.
In this example
I am making Chocolate as Finished Good and ingredients will be Chocolate Syrup and Chocolate Water (all are process manufacturing enabled Inventory items)
And no By-Product



Change the status for approving it by Actions and Change Status.
Once changed from new to approved for general use you will see status changed as below



Step#7 – Define Recipe
OPM ALL- Navigation: Formulator/Recipe
Recipes standardize the structure of all information that describes production of one or more products. Recipes have:
• Formulas that define the relationship of material resources, including products, ingredients, and byproducts.
• Routings that define the relationships of nonmaterial resources, including labor and equipment operations with activities and their associated resource. Routings are optional.
• Processing instructions that encompass the work instructions needed to produce the products.

Formulas and routings are built independently. They are linked using a Recipe that has validity rules. Different formulas can use the same routing, or one formula can be associated to several different routings.


Click on Validity Rules and enter organization name



Make it approved for general use(from actions – change status)


Also click on validity rule and then make it also approved for general use (from actions – change status)


Step#8 – Batch Numbering
OPM ALL- Navigation: Production Supervisor/Setup/Parameter
This will put the batch creation sequence to automatic.



Step#9 – Batch Creation
OPM ALL- Navigation: Production Supervisor/Create Document
Enter the recipe name

Under product output tab enter the product and product qty for the batch needs to created.


Click ok and note the batch number



Step#10 – Viewing the Batch
OPM ALL- Navigation: Production Supervisor/Batch details
Use the above created batch and click find


Batch would be visible as
We created batch for 10 qty and per formula it will take two ingredients and according to formula plan qty it will show the wip plan qty
Note – as an when we transact material the actual qty will get updated.





Step#11 –Release the Batch
OPM ALL- Navigation: Production Supervisor/Batch details
Use the above created batch and click find

Batch goes through below different status
Description
Status
Notes
Initial creation
Pending

Cancel the batch
Cancelled

Release the batch
WIP
Can revert back to Pending
Complete the batch
Completed
Can revert back to WIP- Caution- can lose the material transactions
Close the batch
Closed
Final Close can't revert back

From Actions – release the batch


It will show you actual start date to release the batch click ok and click proceed, once released note the status of the batch it will be WIP.


Once released then only you can assign the material transactions against the ingredients and finished good.


Step#12 –Process the Batch
OPM ALL- Navigation: Production Supervisor/Batch details
Use the above created batch and click find, make sure it’s in WIP
Click on transact material
Please note – when you do the transact material you will have below transaction types depending upon ingredient or finished good.
Transaction type
Item type
Wip issue
Ingredient
Wip Completion
Finished Good

As we are processing the batch I have created inventory available for ingredients by Inventory – transactions- miscellaneous transactions- miscellaneous receipt.

Click on the ingredient and select the transaction type, enter subinventory, locator and Lot information and click transact
As soon as you transact the material you can see the actual quantity reflected.



To view the material transacted you can look by Inventory – view Material transactions





Transacting the Finished Good
Follow same steps and complete the transaction for Finished Good. The transaction will be Wip Completion.


If you look by Inventory –Material transactions, it will show the same transactions which we were looking from above window.


Step#12 –Complete the Batch
OPM ALL- Navigation: Production Supervisor/Batch details
Make sure all ingredients are transacted and finished good is recorded, you can complete the batch using actions- complete the batch.


It will ask you the actual completion date click ok and complete the batch




Step#13 –Close the Batch
OPM ALL- Navigation: Production Supervisor/Batch details
Make sure batch is completed. Click on actions- close



It will prompt you batch close date



This explains the full flow from start to end towards process manufacturing production.

Thanks,
Ajay

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Inventory Organization Creation in R12

Saturday, October 27, 2012 by Ajay Atre



Inventory Organization Creation in R12

Step#1 - Creating Location
Inventory - Navigation: Setup/Organizations/Locations
Define location with address
Check the shipping tab 






Step#2 - Creating Inventory Organization
Inventory - Navigation: Setup/Organizations
Create new organization
Enter name, Type, from date, Location – assign above created location
Save
Select name field under organization classification as Inventory organization
Select enabled check box
Save


Step#3 – Operating Unit Assignment

Click on others
In the additional organization information select Accounting Information


Click ok and then click in the accounting information field
Enter below values, This mean we are assigning the inventory organization to vision operations

Click ok and save the changes.

Step#4 – Master Organization Assignment

Now click others and select Inventory Information



This will open the inventory parameter window (same screen can be accessible from Setup/Organizations/parameters)



Step#5 – Costing Information
Enter account number as shown




Step#6 – Other Accounts
Enter account number as shown




Save the information.

Step#7 – Receiving information
Close the inventory parameters window and come back on organization screen

Click on others and select receiving information


In this window you can enter various receiving parameters


Step#8 – Cross check
You can check form the backend the master organization is rightly assigned.




Also if you change the organization you can see the newly created organization is available





Step#9 – Shipping parameters
Inventory - Navigation: Setup/Organizations/Shipping parameters
Enter the shipping parameters







 Step#10 – WHS and Freight association
Order Management super user - Navigation: Setup/Shipping/Freight Carrier and cost type
I am assigning the shipping method to the newly created whs. For example DHL


Click on organization assignments and query the warehouse you created above, click the checkbox assigned and and done and save the work.

Step#11– Order creation
Order Management super user - Navigation: orders returns/Sales order
Assign the item you to the organization you have created.



Add the item in the pricelist

Create order


Assign the whs you created with the order

Also on order lines and finally book the order.




This explains the creation of an Inventory Organization.

Thanks,
Ajay



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