[Oracle Applications] Using Forecasting in Oracle Applications

Forecasting is predicting the future using some proven methods. There is no single right forecasting method to use. Selection of a method should be based on your objectives and your conditions. To understand how Forecasting functionality works in Oracle, we need to be aware of few terms as below:

In Oracle, Forecasts are defined within a three-level hierarchical structure. It goes from the most specific to most general - forecast entries, forecasts and forecast sets. 

Forecast entry is for a specific item number, quantity and date

Forecast may be defined for a specific customer, customer site, customer type etc. You can have user defined classification using demand class. In summary, related forecast entries are grouped into Forecast

If we group Forecasts that are some way related, its called Forecast set. 

Oracle provides 3 different methods to load the Forecast data. 

1. Forecast entry form

2. Open Forecast interface

3. System generated forecast based on historical data

Forecast entry form and Open Forecast interface are used when forecast data is created externally (not in Oracle). Sufficient history needs to be available in Oracle to use 3rd option of system generating the forecast.

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Posted By OracleOnDemand to Oracle Applications at 3/08/2011 03:23:00 AM

[Oracle Applications] Handling standard wastage (Shrinkage rate) in Oracle

Lets say we have a requirement where in every manufacturing job of 100 quantity ends up producing 80 quantity. You can define a shrinkage rate to describe expected scrap or other loss. Using this factor, the planning process creates additional demand for shrinkage requirements for the item to compensate for the loss and maintain supply.

For example, if you have a demand for 100 quantity and a discrete job of 40 quantity, the planning engine would suggest a planned order of 60 quantity. This would happen when there is no value populated in the "Shrinkage rate" field on Item Master (MPS/MRP planning tab)

Now going back to the business requirement mentioned above where every manufacturing job of 100 quantity ends up producing 80 quantity. If a shrinkage rate of 0.2 is entered in Item master, planning engine assumes that you lose 20% of any current discrete jobs and 20% of any suggested planned orders. 

Demand quantity  = 100

a. Discrete Job = 40

    Shrinkage = 20% of 40 = 8 quantity

    Net supply from Discrete Job = 40 minus 8 = 32 quantity

b. Net requirement balance: Demand qty - Net Supply = 100 minus 32 = 68

    Planning engine suggests a planned order = 68 divided by 0.2 = 85

    

Total Demand = 100 (original demand) + 8 (discrete job shrinkage) + 17 (planned order shrinkage) = 125

Total Supply = 40 (discrete job) + 85 (planned order suggested by planning engine)

Shrinkage is the wastage that happens while manufacturing finished goods.

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Posted By OracleOnDemand to Oracle Applications at 3/01/2011 03:08:00 AM

[Oracle Applications] What is EDI ?

EDI stands for Electronic Data Interchange

To understand the need for EDI, lets take a business flow and transactions involved. Company "C" is a manufacturer and regularly buys raw material from Supplier "S" that would typically involve below transactions for each purchase done. 

1. Buyer at Customer "C" enters a Purchase Order in his computer system
2. Buyer sends the PO through email or fax or mail to Supplier "S"
3. Sales team at Supplier "S" validates the PO to ensure that required information is provided
4. Sales team at Supplier "S" enters a Sales Order in his computer system
5. Sales team at Supplier "S" sends the Sales Order acknowledgment to Customer "C" through email or fax or regular mail

Imagine the cost, cycle time, money and risks of data entry errors involved in the above process. What if computer system at Customer "C" exchanges data with computer system at Supplier "S" using an intermediate communication link ? Yes, that's the idea behind EDI.


Organizations that send or receive documents between each other are referred to as "trading partners" in EDI terminology. Trading partners are free to use any method for the transmission of documents. Few of the transmission mediums used are Value Added Network (VAN), Internet/AS and Web EDI.


EDI translation software, popularly known as Translator, validates the partner and checks if the data received meets the standard formats defined before converting it to a desired file format which can be read and imported by the receiver's computer systems (for e.g. ERP)

EDIFACT & X12 are most widely followed EDI standards. The standards prescribe the formats, character sets, and data elements used in the exchange of business documents and forms. 

Oracle e-Commerce gateway (earlier EDI gateway) module helps organizations meet their EDI requirements with flexibility to use choice of your translator, EDI standard and yet tightly integrates with other modules from Oracle.

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Posted By OracleOnDemand to Oracle Applications at 2/20/2011 12:18:00 PM

[Oracle Applications] Creating warranty contract

When individuals or business buy products or equipments, manufacturers provide free warranty coverage for certain period of time. Oracle Applications provides a functionality to create warranty contracts on each serviceable products shipped from the manufacturer. 

To achieve the above functionality, you need to setup on the below:

1. Define Coverage (Service Contracts)

2. Mark the finished product as Install base trackeable & Enabled contract coverage (Inventory)

3. Define warranty item with warranty period (Inventory)

4. Include warranty item in the Finished Product Bill of Material (BOM)

Once you ship the finished product, it would create an item instance and subsequently create a warranty contract

Related Profile Options

OKS: Consolidate Warranty for Multiple Orders

Determines if an order for products with warranties, sold in Order Management, should be consolidated when the service contract is created. Similar warranties are grouped on a single contract rather than creating separate contracts

OKS: Contracts Validation Source

Allows the user to define the organization information that should be referenced when automatically creating a contract

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Posted By OracleOnDemand to Oracle Applications at 2/02/2011 08:19:00 AM

[Oracle Applications] Move Order Transaction

Move Orders allow transaction of material transfer from one subinventory to another in the same inventory organization. 

At a high level, Move Order process have two basic steps: 

a) Creation of the Move Order 

b) Move Order transfer transaction

Move Order can be manually created or it can be automatically created from various replenishment and material demand processes. 

Move Order can be created through multiple sources:

a) Manual creation

b) Min-Max replenishment

c) Kanban replenishment

d) Sale Order Pick Release

e) WIP Job Component Pick Release

f)  Move Order API

Steps in the Move Order Process:

1. Move Order creation through various sources (mentioned above)

2. Move Order approval

3. Move Order allocation

4. Move Order transfer

Move Order Time Out
Use if you want to require approvals for the move orders in your organization. If this is left blank, the Move Order will be approved automatically

Profile option "INV: Fill & Kill Move Order" can be used to gives capability to cancel replenishment move order lines that have partially allocated and transacted

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Posted By OracleOnDemand to Oracle Applications at 11/11/2010 02:30:00 AM

[Oracle Applications] Critical Success Factors for Implementation projects

Leaned out process 

Ownership by business process owners

Effort estimation - Schedule, Resources




Clear ownership on requirements & in detailed description of each requirement

Understand the impact of Customizations
 
No change requests after requirement gathering freeze; unless absolute show stoppers

Data migration - Start very early in the game - Volume, data cleansing, Minimum 4 loads

Infrastructure support - Software, Hardware, Network


List down any parallel projects that need to be scheduled / worked-out with

Imagine, Plan, Discuss, Think, Brainstorm, Fine tune the go-live strategy to the operational level on the what, when, how, who, where and why of each small data creation & update


Don't change your business process owners in the midst. Have long term visibility before you enroll them on board


Have a good mix of Old timers, Medium experienced and recently joined process owners from each process. Inducting new hires with good experience in processes and best practices  into the business at least one year before the planned start of the implementation project is a good option to consider

Consider training as an important task to connect to users and plan it ahead of time. Process owners need to drive this supported by project team


Don't overkill; don't try to achieve something from a business application that can be easily done in a different application. For example, BI is good for graphical reporting 


Have a good mix in Project team - Business application experts with insight in Business processes & well informed of trends, best practices and innovation


Look at the broader plan where the implementation projects fits into. Implementation project should look seamless and clearly as a part of the long term initiative

Don't overwork, overstress your project team. Work hard, party harder !

Make your team understand that Internal selling is fatal

Right job to right person. Camel delivers best in desert !

No city council work. Two working, Twelve monitoring !


Lead the team from front. Catch the bull by the horns.






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Posted By OracleOnDemand to Oracle Applications at 6/29/2010 07:16:00 PM

[Oracle Applications] How to automatically populate unique ship set on Sales ...

If the profile option "OM: Assign new set for each line" is set as "Yes", then

1. Enter value as "Ship" for the field "Line Set" in Sales Order form (Tab: Others)
2. Enter Sales Order line information (ordered item, quantity)
3. Unique Ship set numbers would be auto-populated in the "Ship set" field at SO line level

Use the above if,
a. Multiple shipments are allowed per order
b. Each SO line needs to be shipped completely


If the profile option "OM: Assign new set for each line" is set as "No", then


1. Enter value as "Ship" for the field "Line Set" in Sales Order form (Tab: Others)
2. Enter Sales Order line information (ordered item, quantity)
3. One Ship set number would be auto-populated in the "Ship set" field for all the SO lines

Use the above if,

a. Multiple shipments are NOT allowed per order

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Posted By OracleOnDemand to Oracle Applications at 6/26/2010 02:07:00 AM