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Created by RUPESH
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Ä ðracle Project Manufacturing supports

companies in the Engineer-To-ðrder,
Ä Make-To-ðrder, Seiban, and Aerospace and
Defense industries. These industries plan,
Ä track, procure, and cost based on project,
contract, or Seiban numbers.
Ä ðracle Project Manufacturing supports the
following key areas:
Ä ÿ Contract/Sales management and fulfillment,
including drop shipments
Ä ÿ Advanced supply chain planning
Ä ÿ Costing
Ä ÿ Procurement
Ä ÿ Shop floor execution, including Flow Manufacturing
Ä ÿ Project inventory tracking including Warehouse
Management Integration
Ä ÿ Project manufacturing quality management
Ä ÿ Assemble-To-ðrder and Pick-To-ðrder environments
Ä In addition, ðracle Projects provides the following
main features:
Ä ÿ Work breakdown structure definition
Ä ÿ Project management system integration
Ä ÿ Budgeting and funding
Ä ÿ Cost tracking and control
Ä ÿ Cash forecasting
Ä ÿ Billing
Ä ÿ Revenue recognition
Ä ÿ Archive and purge
Ä The following key features are supported specifically
for the Aerospace and Defense
Ä industry:
Ä ÿ Model/unit effectivity (serial effectivity)
Ä ÿ Borrow payback
Ä ÿ Hard and soft full pegging across the supply chain
Ä ÿ Group netting
Ä ÿ Actual costing (moving weighted average method)
Ä ÿ Complete integration with ðracle Advanced Planning
and Scheduling
ð | 

Ä ðracle Project Manufacturing is fully integrated with
the ðracle Projects, ðracle
Ä Financials, ðracle Human Resources, ðracle Customer
Relationship Management,
Ä ðracle Business Intelligence System, and ðracle
Advanced Supply Chain Management
Ä product suites. The following figure depicts the
integration points.
Ä R 
Ä See the ðverview in the ð   


Ä A contract cycle begins with a bid and proposal process

by Sales and Engineering. This
Ä process includes review of profit margins and actual
status on similar projects,
Ä calculation of a high-level project schedule to
determine a rough-cut project duration,
Ä engineering reviews with optional new product
introduction, infinite or
Ä constraint-based capacity simulation, procurement
analysis for contract specific
Ä out-sourcing and requests for supplier quotes. The final
result is a bid.
Ä After the customer awards the contract, you
define the project work breakdown
Ä structure and the budgeting and reporting
requirements then submit for approval. The
Ä work breakdown structure represents all
project activities including tasks, sub-tasks,
Ä work packages, activities, and milestones.
Ä During execution, the system collects direct
and indirect actual costs by project. You can
Ä analyze costs for a specific project or across
multiple projects. Based on actual costs, you
Ä can perform earned value analysis, progress
billing, and revenue recognition. During
Ä the execution phase the system collects
quality data and analyzes it by project.

Ä The following figure illustrates project

manufacturing features. It also depicts the
Ä dependencies between the various products
used to provide a full project
Ä manufacturing solution.

Ä To define a project work breakdown structure, you can use one of the
Ä methods:
Ä ÿ Define the project structure in a third party project management system
Ä transfer the structure into ðracle Projects. Use basic setup data from
ðracle Projects,
Ä such as project resources, project calendars, and project templates,
directly in your
Ä third party project management system. Depending on the project
Ä system, you need the ðracle Projects Connect or ðracle Projects Activity
Ä Management Gateway product to accomplish this.
Ä ÿ Define the project structure directly in ðracle Projects.
Ä ÿ Define the project structure using the Seiban Number Wizard.
Ä Before you release the project to collect
manufacturing costs, define the project-related
Ä manufacturing parameters for costing and
planning purposes. For example, you need to
Ä decide whether to allow netting of materials
within a project group across multiple
Ä projects or to track manufacturing costs
separately by project or for a group of projects.
Ä You can also use project attachments to enter
project or contract specific documentation.

Ä To track costs against budgets, you can define your budgets in ðracle
Projects. You
Ä define budgets directly in ðracle Projects or import budgets from external
Ä ðracle Projects' main budgeting features are:
Ä ÿ 
ð |  

Ä versions that include all of the costs for your project, such as engineering
costs, item
Ä costs, manufacturing costs, and overheads. Having multiple budget
Ä enables you to revise your estimate-to-complete many times during a
project. Each
Ä project can compare the current or baseline budget with earlier versions
Ä analytical reporting.
Ä ÿ i   
Ä cost budgets, revenue budgets, forecasted revenue budget, approved cost budget,
Ä and more.
Ä ÿ  |
Ä ðracle General Ledger or ðracle Projects to establish multiple budgeting periods.
Ä ÿ 


Ä company's budgeting needs.

Ä ÿ 

Ä workflow-supported approval process for approving your budget.
Ä Budgeting related documents, such as spreadsheets, can be included as budget
Ä attachments.
| "

Ä After your project structure and budgeting have been defined in ðracle
Projects, you
Ä need to define the Project Manufacturing parameters for your project. These
Ä ÿ Default WIP Accounting Class
Ä ÿ Cost Group
Ä ÿ Borrow Payback Variance Accounts
Ä ÿ Planning Group
Ä ÿ Task Auto-Assignment parameters
Ä ÿ Expenditure types if you selected the parameter Transfer to PA in the Project
Ä Manufacturing ðrganization Parameters
Ä ÿ Project manufacturing costing information:
Ä ÿ Link project expenditure types to manufacturing cost elements and cost
Ä sub-elements
Ä ÿ Link new manufacturing departments to new projects expenditure
Ä organizations
Ä ÿ Define expenditure types for IPV, ERV, Freight, Tax, and Miscellaneous Invoice
| #     
Ä Key
Ä features in ðracle Project Contracts include:
Ä ÿ Contract document authoring
Ä ÿ Deliverable tracking
Ä ÿ Contract document change management
Ä ÿ Contract hold management
Ä ÿ Contract funding
Ä ÿ Contract billing methods
Ä ÿ Robust subcontracting
Ä Project Manufacturing ü 
Ä ÿ Contract flow-down
Ä ÿ Role-based security
| "   

Ä ðracle Project Manufacturing supports:

Ä ÿ | $
   "ð  ð ð      

Ä specify quotation and sales orders. A quotation can be copied easily to a sales
Ä Quotation, and sales order lines can be linked to projects and project tasks.
Ä ÿ | R
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Ä you to process Project RMAs using the line type category 'Return.' Examples of the
Ä line types available are return for credit without receipt of goods, return for credit
Ä with receipt of goods, and return for replacement.
Ä ÿ | !  ð  &!ð' | (  ð  &|ð'ð | 
Ä Manufacturing enables you to use ðracle Configurator with ðracle ðrder
Ä Management with propagation of project and task on the configured model,
Ä options, and included items. For ATð, the Final Assembly Schedule process creates
Ä a WIP Job with the configuration's project and task.
Ä ÿ |  "  
Ä and use drop shipment to automatically create a project purchase
Ä Drop-shipped materials ship directly from supplier to customer.
Ä ÿ | 
  ð ð      ð 
Ä support delivery-based shipping with user-definable picking rules
for order
Ä fulfillment. After manufacturing is complete, finished goods are
Ä automatically from the project inventory upon pick release. You can
also pick all
Ä items for a project and task.


Ä ðracle Project Manufacturing provides:

Ä ÿ ! | 
Ä all supply orders and generate planned orders with project/task references. Each
Ä item can be hard or soft pegged, thereby enabling various pegging methods within
Ä a bill of material. Hard pegging is also supported in a supply chain planning
Ä scenario.
Ä ÿ " | 
Ä pegging is also supported in a supply chain planning scenario.
Ä ÿ = 

Ä can soft peg items to the projects within the project group.
Ä ÿ # "
   &   '

Ä pegged demand.
Ä ÿ =  | | 

Ä pegging information, such as project, task and sales order, graphically.

Ä ÿ |  + ( 
|  + (   
Ä exceptions, a project horizontal plan, supply and demand per project, and unit
Ä number to simulate new or existing project demand, and to release planned
Ä by project.
Ä ÿ  | ,(
  (  ( ( 

Ä forecast entry and run the forecast demand through the planning system. This
Ä enables you to plan long-term capacity and procurement for your projects.
Ä ÿ  "
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Ä forecast with project sales orders or manually link a project work breakdown
Ä structure to a schedule entry. You can have project and non-project demand in one
Ä schedule.
Ä ÿ |         
Ä exception messages including: items allocated across projects and
tasks, items with
Ä excess inventory in a project or task, items with shortage in a
project or task,
Ä reschedule-in, reschedule-out, and cancellation. You can use the
Ä exception messages to define collaborative scenarios between
internal and external
Ä organizations.
Ä ÿ " | R

Ä at once, and eliminate the need to run planning project by project.
Ä ÿ | | " 
Ä new project and tasks or change existing supply and demand due dates directly in
Ä the Planner Workbench. ðnline net-change simulation allows you to view the
Ä results of your changes in minutes. This enables you to respond easily to scenarios
Ä of fluctuating and unexpected demand or to project management system
Ä rescheduling results.
Ä ÿ 
 ð  %  ,
 |  "
# | 
Ä all costs for the products you manufacture for the same project in multiple plants in
Ä ðracle Projects. You can use ðracle Advanced Supply Chain Planning to plan
Ä projects across a supply chain with appropriate propagation of project and tasks on
Ä internal orders and demand and supply entities.
Ä ÿ #    ð  %  
ð !  "
Ä Planning to optimize your project material and capacity plans using a variety of
Ä constraints and objective functions.
Ä ÿ  |("
Ä payback supply and demand.


Ä The planning cycle results in planned orders that are fed

into the execution system:
Ä ÿ Internal orders driven by inter-company supply
Ä ÿ WIP Discrete Jobs for make items (Project Work In
Ä ÿ Flow Schedules for make items (Project Work In Process)
Ä ÿ Purchase Requisitions or Blanket Releases for buy items
(Project Procurement)
Ä The execution system addresses the inventory, shop floor,
and procurement activities.
Ä Project manufacturing costs are collected during execution.
| + ( | 

Ä ðracle Project Manufacturing supports the following features for Project Work In
Ä Process:
Ä ÿ | +|-
  +|-  ,(    | 
Ä Manufacturing supports standard and non-standard WIP Jobs. You can create
Ä Standard Project WIP Jobs automatically and release them from the Planner
Ä Workbench.
Ä ÿ | ð

Ä support Project ðutside Processing. The system transfers the project/task on the
Ä work order once the outside processed purchase requisition generates.
Ä ÿ | R ð  
  (    +|- ,(
Ä capture project repair.
Ä ÿ | "

Ä production environment. Flow schedules can be created and released from the
Ä Planner Workbench or Line Scheduling Workbench.
| | 

Ä ðracle Project Manufacturing supports the

following features for Project Procurement:
Ä ÿ | R)

Ä can define project requisitions for inventory

and expense destination types and you
Ä can implement project requisitions
automatically from the Planner Workbench.
Ä ÿ | |
Ä references. You can define project purchase orders for inventory and expense
Ä destination types.
Ä ÿ |  (R
Ä references. You can implement project blanket releases automatically from the
Ä Planner Workbench.
Ä ÿ | R$

Ä auto-create an RFQ from a requisition. You can request multiple quotes within one
Ä vendor RFQ.
Ä ÿ | "


Ä a quote from an RFQ.

Ä ðracle Project Manufacturing supports:

Ä ÿ |    
Ä Purchase order receipt locators validate automatically for project purchase orders.
Ä You can reference existing project locators or dynamically create project locators
Ä upon receipt. The issue, back-flush, and completion locators validate automatically
Ä for project WIP jobs and associated material. Similar logic applies in processing
Ä flow schedules using work order-less completions.
Ä ÿ |      

Ä Miscellaneous Issue/Receipt, Move ðrders, Pð Receipt, WIP Issue, WIP Return,
Ä WIP Completion.
Ä ÿ #  |  |   #     
Ä transfer transactions to transfer material from common inventory to project
Ä inventory and vice versa, with the appropriate transfer of inventory value.
Ä ÿ |     
Ä transfer of material from one project to another based on criteria you define, with
Ä the appropriate transfer of inventory value. The system generates notifications of
Ä approval for the from and to project managers, if the project managers are
Ä ÿ #    "
Ä consumption of consigned items to demand/supply documents with project
Ä references, with appropriate transfer of inventory value into a project.


Ä During the execution phase, project-related

costs can be collected in four ways:
Ä ÿ Import of costs from external systems
directly into ðracle Projects' Transaction
Ä Import.
Ä ÿ Entry of direct labor and expenses directly
into ðracle Projects using time and
Ä ÿ Collection of manufacturing labor, material,
and manufacturing overhead in ðracle
Ä Cost Management as a result of Work In
Process and Inventory transactions.
Ä ÿ Import of manufacturing costs from external
systems using ðracle Manufacturing
Ä Transaction Import.