External Repair Exceution Business Flow

An Oracle White Paper
Sep-2015
External Repair Execution Integration With WRP
Author: Sumit Deshpande

Oracle White Paper – External Repair Execution
Disclaimer
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code,
or functionality, and should not be relied upon in making purchasing decisions. The
development, release,
and timing of any features or functionality described for Oracle’s products remains at
the sole discretion
of Oracle.
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Table of Contents
1.0 Overview..........................................................................................................................................4
2.0 Test Data .........................................................................................................................................8
3.0 Setups..............................................................................................................................................8
4.0 Business Case ..............................................................................................................................17
External Repair Order Creation.......................................................................................................17
Purchase Requisition Creation........................................................................................................19
Purchase Requisition Approval.......................................................................................................20
Repair Purhase Order Creation.......................................................................................................21
Internal Order Creation....................................................................................................................22
Internal Order Processing...............................................................................................................24
Internal Order Receipt ....................................................................................................................26
WIP Process....................................................................................................................................27
Scrap and Adjustment Transactions................................................................................................28
Purchase Order Receipt..................................................................................................................30
Inventory Transactions Postings.....................................................................................................32
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1.0 Overview
This section provides an overview of External Repair Execution.

External Repair Execution is a key part of the field service supply chain. The repair
execution process includes recovery and consolidation of defective parts, as well as the
repair, and replenishment of these parts to the field service warehouse inventory.
Internal repair activities are charged to an internal work order. With external repair, a
repair purchase order authorizes a supplier to complete repairs. Spares Management
provides functionality for both internal and external repair.
External Repair Business Needs
 Consolidated view of process documents and transaction details.

 Integration with the Warehouse Replenishment Planning application.
 Integration with the Purchasing application.
 Integration with Financial applications.
 Asset tracking.
Benefits of External Repair Execution
• Better customer service at a lower cost.

• Better managed external repair.
• Better tracking of parts.
• Lower field service costs.
• Lower total inventory.
• Improved utilization of total inventory.
Process Documents Involved in ERE flow
• Purchase Requisition.
• Purchase Order.
• Internal Order.
• WIP Order.
Material Flow Diagram in Field Service Supply chain

The field Service supply chain is shown below in Chart. The field service supply chain
includes parts suppliers, repair suppliers, customers, warehouses, and technicians.
External Repair Execution is part of Reverse Logistics section of the supply chain. The
segment of the supply chain managed by ERE is depicted in the below chart.
Defective parts are consolidated from multiple technicians into a defective warehouse
(1).This consolidation is necessary so that these defectives can be included in the
planning process. Based on need from the planning system, defective parts are sent
from the defective warehouse to the repair supplier, in this case an external repair
supplier, for repair. The repair supplier (2) repairs the parts and sends them to the
field service warehouse as replenished (3).
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Material Flow Diagram –External Repair Execution
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Warehouse Replenishment Planning

The Warehouse Replenishment Planning (WRP) module of the Oracle Field Servicesuite
plans inventories for central, regional, theater, or metropolitan warehouses in a field
service supply chain. WRP is not designed to plan Technician trunk
stockinventories.Trunk Stock is planned using core Planner's Desktop functionality.
Planning Field Service Warehouse Inventories
Planning warehouse inventories in a field service supply chain experience requires a
different approach, as compared to warehouses that support a manufacturing
supplychain.Some of the more significant differences are noted below:
• Higher volume of defective returns
• Higher volume of repair operation activities
• Redeployment of excess inventory
• Inventory plans driven by product component failure rate forecasts,in contrast to
supporting manufacture of end products.
• Supersession of parts impacts usage forecasts, safety stock, reorder point and order
quantity.
Warehouse Inventory Planning Process
• Create a warehouse replenishment plan
• Find and select a specific plan to analyze
• Review generated plan recommendations
• Change and regenerate the plan, if required
• Process recommendations to execute the plan
Supply Types
Supply Types are key to the warehouse planning process. A cost-effective approach is
required to utilize excess and repair before ordering additional parts that could grow
the inventory unnecessarily. The Supply Types as defined in Spares Management are
Excess, Repair, and New-Buy.
Excess
Changes in field service activity can cause the level of inventory in certain locations to
exceed the quantity needed to support planned service activities.Excess inventory is a
low cost supply source type,since it only needs to be redeployed and should be utilized
wherever possible at other warehouse locations when needed.
Repair
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Some parts recovered during field service operations are repairable.Repairable returns
are a medium cost supply source. Costs include repair, either internally or by sending
them to an external provider of repair services, and redeployment. Defective parts,
when consolidated, can be incorporated into the warehouse planning process, and
should be repaired as needed to replenish the warehouse being planned.
New-buy
New parts to fulfill Purchase Orders or Internal orders from other warehouses are the
third supply source type. The new-buy source of supply is usually more costly than
either excess or repair sources.
Tip: To achieve low inventory investment and reduce risk ofobsolescence, the
replenishment should be planned by consuming inventories of excess parts, and then
repair parts, before new-buy parts.
Creating Warehouse Replenishment Plans
The process for creating warehouse replenishment plans consists of running three
concurrent programs. The first program updates usage history so forecasts
calculationsare based on the latest usage information.The second program collects the
latest supersession information.The third program is the planning engine that creates
orregenerates plans for one or all warehouses
External Repair Execution Integration with WRP
Oracle Spares Management integrates Warehouse Replenishment Planning with Repair
Execution to manage the execution of internal and external repair. Repair is one of the
Supply Types in Warehouse Replenishment Planning.The process begins in Warehouse
Replenishment Planning:
• The current On-hand Balance shows a positive On-hand balance of repairable
inventory in one or more of the defective warehouses.
• WRP, based on need for the repair, produce Planned Repair Orders.
• The planner reviews and executes a Planned Repair Order to create either a Repair
Order in Oracle Depot Repair for internal repair, or a purchase requisition forexternal
repair. For internal repair, the internal orders required to ship into and out of the depot
repair operation are also produced.
• Integrated Repair Execution functionality manages the repair process for service
parts in a field service supply chain. External Repair Execution provides a consolidated
view of all documents and repair process details. The repair program is defined in the
Repair region of the MPS/MRP Planning tab ofthe Inventory Organization Item
window.
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• As plans change, Warehouse Replenishment Planning can generate recommendations

to reschedule or cancel the repair order.
• View Repair Purchase Requisition after execution
2.0 Test Data

1) Destination Organization: Dallas Manufacturing M3
2) Defective Organization: DWH
3) Repair Supplier: Advantage Corp.
4) Item: S19
5) Repair Org: Seattle Distribution Center.
3.0 Prerequisites Setups
1) Item Set up
Navigation: Inventory: Items: Master Items
Item used for testing should have Repair parameters like Repair Lead time and Repair
Yield updated in Item Master Form.
Repair Lead-time
The number of days required by the repair supplier to receive the defectives,repair and
ship to the Field Service Warehouse.it is Used by Warehouse Replenishment Planning.
Repair Program
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Repair programs vary from company to company, but can be grouped into three
general strategies:
Repair and Return
The defective parts are sent to the repair supplier for repair. The repaired parts are
shipped from the repair supplier and received as replenishment by the field service
warehouse.
Exchange
When the defective parts are received by the repair supplier, serviceable parts are
shipped from the repair supplier's stock to the field service warehouse for
replenishment.The defective part can be repaired by the repair supplier and used to
replenish the buffer inventory used by the repair supplier to support the Exchange
program.This strategy eliminates lead time associated with repairing the item.
Advance Exchange
When the purchase order is received by the repair supplier, serviceable parts are
shipped to the field service warehouse against the purchase order.The defective
partcan be repaired by the repair supplier and used to replenish the buffer inventory
usedby the repair supplier to support the Advance Exchange program. This strategy
eliminates lead times associated with shipping the defective parts to the repair
supplierand repairing the parts.
Note: The choice of repair program influences lead time. Lead times are used in
Warehouse Replenishment planning for calculating safety stock and reorder point.
Repair Yield
The overall percent of defective parts that result in repaired parts.
This field is for information purpose only.
Pre-position point
Indicates whether the part is being pre-positioned at the repair supplier
This field is for information only.
2) Organization Setup
Repair Supplier should be assigned to the Organization.This is required to record the
transactions like sending material out of organisation to the External Repair Supplier
for Repairing purpose and receiving the repaired material back the Destination
organization.
Navigation:
Inventory: Setup: Organizations: Organizations:
Search for Seattle Distribution Center
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Update Inventory Organization information under Organization classifications

Enter Customer/Supplier Association
3) Sourcing Rules Setup

Sourcing rules determine the movement of materials between organizations in a global
enterprise; these organizations include the suppliers and the materials include those
items made at the manufacturing organizations. Sourcing rule can be global (available
to all organizations) or local (available to the only organization in which it is defined)
Replenishment source can be:
1) An inter-organization transfer (Transfer From)
2) The replenished organization that manufactures the item (Make At)
3) An external supplier (Buy From)
Make at
This option specifies that you will make any items associated with the rule at the
receiving organization.
Buy From
This option specifies that you will buy any items associated with the rule from
supplier.You must enter appropriate supplier and site (optional).
Transfer from
This option specifies a diff organization within the enterprise as the source of the
items. Using this option you will identify the source organization. You must have
already defined the shipping network between source and receiving organization.
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Ship method
Ship Method determines the Intransit time and shipping cost which planning will use
in its calculations.
Allocation and Rank in Sourcing rule
You can rank the sources of supply named in the rules and bills, giving one priority
over another when the planning process generates recommendations. You can also
assign sourcing percentages to these sources, allowing you to allocate a portion of the
total orders to each source. You cannot apply sourcing rules and bills of distribution
(make them Planning Active) until the sum of the allocation percentages equals
100.Once you have defined your sourcing rules and bills of distribution, you must
assign them to particular items and/or organizations.
Each Sourcing rule can be assigned to
A single item (across all organizations)
An item in a specific organization
All items in a specific organization
A category of items
A category of items in an organization
All items in all organizations (globally)
This set up is used in Warehouse Replenishment Planning.
I) Defining Sourcing Rule.

Navigation:
Purchasing: Supply Base: Sourcing Rules
Set the Organization to M3.
Sourcing Rule for defective defines the defective warehouses to be used for supplying
defective parts to repair suppliers. The defective Warehouse is where all defective
material is consolidated. All the defective material will be sent to the External Repair
Supplier for repairing purpose.
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Sourcing Rule for External Repair Suppliers defines the repair supplier organizations
to be used for external repair of the defective parts.
II) Sourcing Rule Assignment.

Navigation:
Purchasing: Supply Base: Assign Sourcing Rules
Assigning Sourcing Rules to Organization and Item
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4) Planners Desktop Setup

Sourcing rule assignment to be updated in Planners Desktop for the replenishment of
the warehouse being planned
Navigation:
Field Service Dispatcher: Spares Management: Planner’s Desktop
Add M3 as Warehouse node under Field Service Warehouses with parameters as
shown in below figure.
Update the Sourcing rules assignments for the warehouse.
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5) Shipping Network Set up

Shipping Network has to be defined between Defective Org and External Repair
Supplier Org for transfer of Defective material from Defective Warehouse to External
Repair Supplier.
Navigation:
Inventory: Setup: Organizations: Shipping Network
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6) WIP Setup
This set up is required for processing of WIP order which is created for repair of
defective parts in repair supplier org.
Change the Organization to D2.
Navigation:
WIP: Setup: Parameters
Supply Subinventory to be updated as DEFECTIVE_SUB
Navigation:
WIP: Setup: WIP Accounting Class
New WIP accounting class to be created. The Account class type should be Expense
Non-Standard.
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7) Profile Setup
Navigation:
Field Service Dispatcher: Service Requests: Others: Profile System Values
I) CSP: WIP Accounting Class should be set up as Expense which is newly created
Account Class.
II) Repair Supplier Sub-inventories
DEFECT_SUB
Used to receive defective parts at the repair supplier
USABLE_SUB
Used to receive completed WIP transactions
This needs to be set up for repair supplier orgs
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Business Flow
1) Repair Planned Order Creation.
Navigation:
Field Service Dispatcher: Spares Management: Warehouse Replenishment Planning
In WRP Planner can select Plans by following options:
1) Organization
2) Item
3) Recommendation Type
4) Inventory Class
In below screen shot item and Destination Organization are entered in search criteria
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Update icon is used to access WRP details for specific item warehouse combination.
In Warehouse Replenishment Planning Details Page Current on hand is shown for
Dallas Manufacturing and Defective warehouse. Current and Planned Orders are
shown under the Plan option.
Currently for our testing to generate new planned orders we can use Manual forecast
option. We can give some Manual forecast quantity to the item so that system will
create some planned orders for fulfilling the forecasted demand based on available
sourcing option.
Manual Forecast of 1000 units provided on current system date.
For the item S19 only defective parts available in Defective warehouse to cater the
existing demand, so system has suggested plan order with source type as repair. The
supplier is defective warehouse. Executing planned orders by Entering quantity and
clicking on Create order Button. After clicking Create order button below message will
be displayed.
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When a planner approves a planned repair order in the Warehouse Replenishment

Planning user interface, or creates a planned repair order manually, the system
automatically creates a repair purchase requisition when the repair supplier is an
external supplier. Execution of the planned repair order in Warehouse Replenishment
Planning creates the requisition in the initial status: 'Requisition Incomplete'.
The requisition can be viewed in Repair Purchase Order Details, but is not visible to
the buyer until the 'Requisition Import' concurrent program completes and the
requisition is updated to 'Approved ' status.
Field Service Dispatcher: Spares Management: Spares Logistics: Repair Purchase
Order Details
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The newly created Purchase Requisition can be seen in External Repair Purchase
Order Details page as Requisition Incomplete
2) Purchase Requisition Creation
Switch the responsibility to Purchasing, Vision Operations (USA)
Execute the concurrent request Requsition Import with default parameters to Import
the Newly created Purchase Requisition
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3) Purchase Requisition Approval

Switch back to Field Service Manager, Vision Operations Responsibility
Execute concurrent program Generate repair purchase order execution details to
update the Requisition status. There are no parameters for this program.
Note: The 'Generate Repair Purchase Order Execution Details ‘concurrent program
needs to be executed each time after the Repair Purchase Order Details user interface
is updated.
Re-query the Purchase Requisitions in Repair Purchase Order Details page to verify
the Requisition status is changed to Approved
The Transaction column updates from 'Requisition Incomplete' to 'Requisition

Approved' in the Transaction Details section of the user interface.
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4) Buyer assignment
Navigation:
Purchasing: Management: Manage Buy Workload
Assign buyer Taylor, Mr. Phillip Charles to Purchase Requisition.
5) Repair PO Creation
The repair purchase order is used to purchase the repair service from the repair
supplier for the defective parts. The repair purchase order is also used to receive the
repaired parts back into the field service warehouse being replenished and pay the
repair supplier for the repair service. Using standard Oracle Purchasing, you can
either automatically create or manually create the repair purchase order.
Standard Oracle Purchasing functionality is used to create a Repair Purchase Order
from the Repair Requisition and approve the purchase order.
Navigation
Purchasing: Autocreate
Once Buyer is assigned to Requisitions then we need to create Purchase Order using
Automatic option. Autocreate the Purchase order for the Purchase Requisition and
approve the same.
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6) Internal order creation

Execute concurrent request Generate repair purchase order execution details, after
running the concurrent program Repair Purchase Order the Status is internal order
created. The Spares concurrent program will automatically trigger creating of internal
order for transfer of Defective goods from Consolidated Defective warehouse to Repair
Supplier.Re-query the Purchase Requisitions in Repair Purchase Order Details page to
verify that Internal Order is created.
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Order Management: Orders, Returns: Sales Order

Verify the Order status is Awaiting Shipping confirmation. You can query the Internal
order created from sales order form.
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7) Internal Order Processing

Order Management: Shipping: Transactions
Launch the Pick Release for the Internal Order
Do Ship confirm for the order
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that Internal Order is shipped.
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8) Receiving the Internal order in Repair Supplier Org.

Receiving at the repair supplier can either be automated (direct) or manual (not direct)
depending on how the Shipping Network between the defective warehouse and the
repair supplier has been setup in Oracle Inventory. 'Direct' receiving results in the
shipment showing as having been received at the repair supplier as soon as the 'Ship
Confirm' transaction has executed at the defective warehouse. Manual receiving is
transacted when the shipment is physically received at the repair supplier.
Change the organization to D2
Navigation
Inventory: Transactions: Receiving: Receipts
that Internal Order is fully received in Repair Supplier Org.
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9) WIP Process in Repair Org.

Execute concurrent request Generate repair purchase order execution details which
will automatically trigger WIP Mass Load Program for Creation of WIP order to repair
the defective parts in Repair Supplier org.
that WIP order is automatically created to repair the defective parts in Repair Supplier
org and status of Repair order is changed to WIP Order Created.
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10) Reporting Scrap and Adjustment Transactions against WIP order.

Adjustments transactions are used for receiving discrepancies and other
reconciliations that are required to account for miscellaneous losses and gains while
the parts are at the repair supplier. Scrap transactions are used to account for repair
scrap during the repair process when it is determined that a defective part cannot be
repaired. Adjustment and Scrap transactions show in summary in the header and
update the balance due. The Adjustment and Scrap transactions are also shown in the
Transaction Details section of the user interface.
Update External Repair Purchase Order to Report Scrap and adjustment Transactions
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that Scrap and adjustment transactions are correctly posted. After Reporting Scrap
and Adjustments transactions you can see that Balance Due is updated to new value by
subtracting Scarp and Adjustment quantity from Repair PO quantity.
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11) Repair Purchase Order Receipt in Dallas Manufacturing

The repaired parts are shipped by the repair supplier and received at the field service
warehouse that is being replenished. Oracle Purchasing is used to process receipt at
the field service warehouse.
Change the organization to M3.
Navigation:
Inventory: Transactions: Receiving: Receipts
Entering the Receiving Sub Inventory
Out of 15 units, 10 units are repaired so the PO received for 10 units in M3 Dallas
Manufacturing.Re-query the Purchase Requisitions in Repair Purchase Order Details
page to verify that Purchase order receipt in Dallas Manufacturing
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Execute concurrent request Generate repair purchase order execution details to close
the Purchase order After the concurrent request is completed.Re-query the Purchase
Requisitions in Repair Purchase Order Details page to verify that Purchase order is
closed do not check active only check box as when Purchase order is closed it becomes
inactive
External Repair Order details page will show status as Purchase order Closed.
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12) Inventory Transactions Posting

Inventory: Transactions: Material Transactions
We can check in Inventory in Material Transaction form PO Receipt of 10 units is
shown for Item S19 in M3 Dallas Manufacturing.
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External Repair Execution Integration With Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
WRP
[September] 2015 This document is provided for information purposes only, and the contents hereof are subject to change without notice. This
Author: [Sumit Deshpande] document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in
law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any
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External Repair Exceution Business Flow

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An Oracle White Paper

External Repair Execution Integration With WRP

Author: Sumit Deshpande

This section provides an overview of External Repair Execution.

External Repair Business Needs

 Consolidated view of process documents and transaction details.

Benefits of External Repair Execution

• Better customer service at a lower cost.

Process Documents Involved in ERE flow

Material Flow Diagram in Field Service Supply chain

Material Flow Diagram –External Repair Execution

Warehouse Replenishment Planning

• As plans change, Warehouse Replenishment Planning can generate recommendations

2.0 Test Data

Update Inventory Organization information under Organization classifications

3) Sourcing Rules Setup

I) Defining Sourcing Rule.

II) Sourcing Rule Assignment.

4) Planners Desktop Setup

5) Shipping Network Set up

When a planner approves a planned repair order in the Warehouse Replenishment

3) Purchase Requisition Approval

The Transaction column updates from 'Requisition Incomplete' to 'Requisition

6) Internal order creation

Order Management: Orders, Returns: Sales Order

7) Internal Order Processing

Do Ship confirm for the order

8) Receiving the Internal order in Repair Supplier Org.

9) WIP Process in Repair Org.

10) Reporting Scrap and Adjustment Transactions against WIP order.

11) Repair Purchase Order Receipt in Dallas Manufacturing

Entering the Receiving Sub Inventory

12) Inventory Transactions Posting

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