OAUG Connection Point 2004
An Oracle WMS Implementation in a Manufacturing Environment
Linda LeslieMotorola, Inc.
Automotive Communications and Electronics Systems Group
Learning ObjectivesLearning Objectives
• As a result of this presentation, you will learn about:– 11.5.9 WMS functionality in a manufacturing
environment• Cost implications• Over picking • Customizations
– How supplier consigned inventory works in 11.5.9
Speaker’s QualificationsSpeaker’s Qualifications
• Linda Leslie is a Business Systems Analyst at Motorola, Inc., Automotive Communications and Electronic Systems Group.
• Linda Leslie is the Cost Management Sub-Chair of the OAUG Discrete Manufacturing SIG
• Linda Leslie has presented at OAUG on supplier consignment and completing inventory close in two days
Presentation Agenda Presentation Agenda
• Overview • 11i WMS implementation project objectives• WMS 11.5.9 set up • Challenges using WMS• Using Rules and Strategies• Customizations• Supplier Consignment • Q&A
Motorola, Inc. ACESMotorola, Inc. ACES
• Produces electronic engine and body controls and sensors for automotive applications
• Global manufacturing facilities• Utilizes flow through manufacturing lines• Some facilities produce 24 hours per day, 7
days a week
System OverviewSystem Overview
• 300+ worldwide users of Oracle Manufacturing applications
• Data base– 80,000+ items– Indented bills of materials
• Average of 8 levels– Common components
Current SystemCurrent System
• 10.7 SC Implemented January, 1999• Separate SID’s• Locally installed• Manufacturing modules
– Inventory– Engineering and Bills of Material– MRP and WIP– Purchasing
11i Project Objectives11i Project Objectives
• Replace 10.7 manufacturing• Re-implementation• One global instance• Implement WMS for raw material • Replace custom supplier consigned solution
WMS Set UpWMS Set Up
• Engaged Oracle Consulting• Changes after enabling WMS
– Cost Groups– Prespecified locator control – LPN controlled
Cost GroupsCost Groups
• Associate account information to subinventories
• Cost Group assignment rules• Original cost group retained• Cost Group transfer• Use of API and open interface• Inventory reporting
API or MTL InterfaceAPI or MTL Interface
• Three cost group fields are added – cost_group_id– org_group_id– transfer_cost_group_id
• Populate each field with the cost_group_idof the destination subinventory
Inventory ReportingInventory Reporting
• Currently post GL balances to different inventory accounts– Raw Material– Non-nettable inventory– Work in process– Finished Goods
• Resulted in co-mingling errors• Will use only two cost groups with WMS
– Raw Material– Finished Goods
Over PickingOver Picking
• Move order requests generate picks• Only quantity on move order is transacted• Current business processes result in over
picking requested quantities• “Over picking lite”
WMS Rule TypesWMS Rule Types
• Five types of rules– Picking– Put away– Cost group– Label type– Task type assignment
WMS RulesWMS Rules
• Always use the Find window to query rules• Do not check Common to all orgs
– Task Type Assignment rules– Cost Group rules
• Used for both raw materials and finished goods
• Can run simulation
Rules SetupRules Setup
• Warehouse Manager:Setup:Warehouse Configuration:Rules:Warehouse Execution: Rules
Rules SetupRules Setup
Strategy SetupStrategy Setup
• Warehouse Manager:Setup:Warehouse Configuration:Rules:Warehouse Execution: Strategies
Rules WorkbenchRules Workbench
• Add, update or delete strategies and rules• Strategy Assignments
– Org specific– Defaults to current org
• Sequence controls– Order in which strategy assignments will be
evaluated by Rules Engine
Rules WorkbenchRules Workbench
• Warehouse Manager:Setup:Warehouse Configuration:Rules:Warehouse Execution: Rules Workbench
Receiving Process CustomizationReceiving Process Customization
• Receipt routing• Skip lot functionality• Use of Sourcing Rule descriptive flexfields• Inspection Required
Handheld ConfigurationHandheld Configuration
• Prompt changes• Receive by Item
– Parse PO number modification
Current Supplier Consignment OverviewCurrent Supplier Consignment Overview
• Utilizing custom supplier consigned solution in 10.7
• Miscellaneous receipt on physical receipt of goods– Inventory is costed
• PO Receipt on change in ownership• Miscellaneous issue • 24% of raw material inventory value is on
supplier consignment
Converting Consigned QuantitiesConverting Consigned Quantities
• Received solution from Oracle Consulting– Create purchase orders– Create Approved Supplier Lists– Convert on hand quantities through Receiving
Interface table
Consignment SetupConsignment Setup
• Create Blanket Purchase Agreement– Operating unit shared across inventory orgs
• Create Approved Supplier List– Add blanket purchase agreement number– Check Consigned from Supplier
• Create Standard Purchase Order• Define Consigned/VMI Consumption
Consigned/VMI Consumption SetupConsigned/VMI Consumption Setup
• Inventory:Setup:Transactions: Consigned/VMI Consumption
Supplier Consigned ProcessSupplier Consigned Process
• Supplier ships against standard purchase order– PO Receipt transaction
• Put away– Owning party on Material Workbench
• Consume material– Transfer to Regular transaction type– Ownership Transfer Transaction Action– PO Release against blanket agreement
Supplier CommunicationSupplier Communication
• Motorola Schedule Sharing™ System
Supplier CommunicationSupplier Communication
Supplier CommunicationSupplier Communication
Payment to SupplierPayment to Supplier
• Evaluated Receipt Settlement (ERS)– Requires packing slip number from standard
purchase order receipt• Payment generated from blanket release
– Price on both blanket agreement and standard PO
SummarySummary
• WMS should meet business needs– Some customizations
• Supplier consigned inventory has been tested– May need some reporting customizations
• Positioned for future process improvements– Min/max planning
Q & A
Thank You!