Copyright © 2006, Oracle. All rights reserved. BuySell Subcontracting Overview Frederic Dubois Group Manager Supply Chain Globalizations Oracle Corporation

Copyright © 2006, Oracle. All rights reserved.

BuySell Subcontracting Overview

Frederic Dubois Group Manager

Supply Chain GlobalizationsOracle Corporation

Copyright © 2006, Oracle. All rights reserved.2

Purpose:This document provides an overview of features and enhancements included in Release xx. It is intended solely to help you assess the business benefits of upgrading to Release xx.

This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. 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 in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

Disclaimer:


Place Order fo

r Outsourced Assembly A

MP added value = $5

RMS: Raw Material Supplier

OEM : Original Equipment Manufacturer

MP: Manufacturing Partner

1 Ea

B

A

C

2 Ea

Ship Components @ B-$4, C

-$6

B C

Place

Order

for

B&C

OEM Pays $19 to MP for assembly A

BuySell SubcontractingBusiness Process

OEM

RMSMP

Bu

y @

B -

$2, C

-$3

B C

Buy Ass

embly

A @

$ 1

9 (in

cludin

g $14

)

A

MP Pays $14 to OEM for Components B&C


BuySell SubcontractingGlossary Of Terms 1

Original Equipment Manufacturer(OEM): Equipment Manufacturer , who outsource the production of assembly to third party.

Manufacturing Partner(MP): Third party, manufacturing the Assembly using the components supplied by OEM

Outsourced Assembly(OSA): Assembly Item, designed by OEM and Manufactured by MP at MP’s site using OEM supplied Components

Subcontracting Components: Components sent by OEM to MP for the Manufacturing of Outsourced assembly

Synchronized : Components are sent by the OEM at the placement of the Subcontract Order and are dedicated to the assembly of the OSA Item in the Subcontract order



Pre-Positioned : Components are sent ahead of time by the OEM to the MP using normal planning functionality. Allocation of the components to the Subcontract orders are automatically made

Subcontracting Order: Purchase order (Standard or Release) created by OEM to procure Outsourced assemblies from MP

Replenishment PO: Purchase Order created by MP in the Chargeable Subcontracting Process to procure Subcontracting Components from OEM. Replenishment PO is closed for invoicing

Replenishment SO: Sales Order created in the Chargeable Subcontracting Process to ship Subcontracting Components to MP



Allocations: Hard pegging of Replenishment SO’s created in the OEM organizations with the Component requirements for the Manufacturing of outsourced assemblies at MP Site

Interlock: one of the background processes used to automatically create the Demand at the MP (PO) and Supply at the OEM (Sales Orders) for the components to be sent by the OEM to the MP. This process also creates the component allocation to the Subcontract orders

Auto Receive Components: Background process that automatically receives components at the MP based on in transit lead times

Process Subcontracting Order Receipts: Background process that, at OSA receipt in the OEM, completes the simulated WIP job at the MP and issues out assembly to adjust for on hand quantity


Component Receipts and Assembly Completions are done by automatic processes

B

A

C

1 Ea2 Ea

BuySell SubcontractingSolution Overview

OEM Ship Components by Replenishment SO

B

C

OEM Procure Assembly by Subcontract Order

A

OEM

A

Manufacturing

MP

Manufacturing is simulated by Discrete job

Inventory Organizations


OEM Organization MP Organization

B

A

C

1 Ea2 Ea

B

A

C

1 Ea2 Ea

Organization Roles

Organization Customer Supplier

MP √ √

OEM √

Item Make/ Buy

Outsourced Assembly

Supply Source

A Buy Yes Buy From MP

B Buy No Buy from RMS

C Buy No Buy from RMS

Shipping Networks

From Org To Org

OEM MP

MP OEM

Transfer to GL : NO

Transfer to GL : Yes

BuySell SubcontractingSetup – Overview

Item Make/ Buy

Outsourced Assembly

Supply Source

A Buy Yes Make at MP

B Buy No Buy from OEM

C Buy No Buy from OEM


BuySell SubcontractingProcess – Planning Synchronized Components

OEM Organization MP OrganizationForecast

Planned Orders

Descrete Job / Purchase Order

Planning run

Net requirement of A as a demand to MP

Net requirement of B as a demand to OEM

Net requirement of C as a demand to OEM

A Buy

B Buy

C Buy

A Make

B Buy

C Buy

NoneA A A

2 Ea

A is a Buy Item, No BOM Explosion

A is a Make Item, BOM is exploded

B

A

C

B

A

C

1 Ea

B&C are Synchronized Components

A Buy from TP

BBuy from RMS

C Buy from RMS

× ××In Organization Items , Release Time fence = “Don’t release Auto or Manual” for Items A,B & C, Planned orders can’t be released


OEM (Standard Cost Org)

MP (Zero Cost Organization)

Replenishment SO Item : C, QTY:10Ea Customer : MP

Replenishment SO Item : B , QTY:20Ea Customer: MP

Discrete Job Assembly : A QTY :10Ea

Interlock

Receive

Subcontracting Order Assembly : A , 10Ea Supplier : MP

ASCP

AP Invoice AR Invoice

SHIP

SHIP

Auto receive Components

Receive

Receive

No Manual Transactions in MP Org

Replenishment PO Item : C, QTY:10Ea Supplier : OEM

Replenishment PO Item : B, QTY:20Ea Supplier : OEM

B

A

C

1 Ea2 Ea

BuySell SubcontractingProcess – Execution Synchronized Components

B&C are Synchronized Components

Process Subcontracting Order Receipts

Complete

Misc Issue A

Receive from MP

Payment to MP


BuySell SubcontractingKey Features 1

• Supports All Costing Methods

• Supports Pre-positioned and Sync ship Components

• Fully Integrated with Planning

• Interlock triggers sales orders for selling components to MP

• Peg Component shipments in OEM with Assembly requirements in MP

• Workbench to track the components sales and allocation to the subcontracting order


BuySell SubcontractingKey Features 2

• Workbench to track estimated component consumption by outsource assembly and adjust for over / under consumption at the MP

• Full automation / simulation of the MP actives ( receiving, WIP job start and completion, …..) through batch programs run in the OEM

• Drop ship Components to MP

• Reconcile Subcontracting Order changes


BuySell SubcontractingSetup – MP Organizations

Select Check box for Manufacturing Partner Organization

MP organization is simulation organization, Accounting transactions in this organization should not be transferred to GL


OEM Organization

OEM supply components to MP and acts as supplier

BuySell SubcontractingSetup – Customer/Supplier Association

MP Organization

MP supply Assemblies, Procure Components from OEM and acts as both supplier and Customer

• ASCP use this definition along with sourcing rules to plan outsourced assemblies and components in OEM and MP Organizations


BuySell SubcontractingSetup – Outsourced Assemblies in OEM

Check this for outsourced assembly, allowed only if the Profile JMF:Enable Chargeable Subcontracting is Yes

OEM Organization

Outsourced Assembly should be defined as Buy item for planning.

Release Time Fence should be left blank. ASCP releases buy planned orders of outsourced assembly to Purchasing as Purchase orders/ Releases

• Routing can be defined for outsourced assembly in OEM


MP Organization Check this for outsourced assembly, allowed only if the Profile JMF:Enable Chargeable Subcontracting is Yes

Outsourced assemblies should be defined as Make items for planning

BuySell SubcontractingSetup – Outsourced Assemblies in MP

Release Time Fence should be “Do not Release Auto Or Manual”. ASCP should not release make planned orders in MP.

• Routing should not be defined for outsourced assembly in MP


BuySell SubcontractingSetup – Subcontracting Components in OEM

Subcontracting Component should be defined as either “Synchronized” or “Pre positioned”

OEM Organization

Release Time Fence can be left blank. Planning releases buy planned orders to Purchasing as Purchase orders/ Releases


BuySell SubcontractingSetup – Subcontracting Components in MP

Subcontracting Component should be defined as either “Synchronized” or “Pre positioned”

MP Organization

Release Time Fence should be set as ,

“Do not Release Auto or Manual” for Synchronized components and Blank for Pre-positioned Components:


BuySell SubcontractingSetup – Shipping Networks

Select BuySell to establish Buysell Relationship between OEM and MP


On the Workbench User can search subcontracting Orders and verify the receipts

BuySell SubcontractingProcess – Workbench-Subcontracting Orders

Subcontracting Order headers of Outsourced Assembly

Subcontracting order line shipment or releases

Details of the Components to be shipped to MP


BuySell SubcontractingProcess – Workbench_-Components

Components to be shipped to MP for making assembly of a specific subcontracting order .

• You can see the components requirement quantity and date for manufacturing the assembly at MP site

To drilldown to the BOM components of the assembly


BuySell SubcontractingProcess – Workbench-Replenishment Orders

View Component Pegging information

On the Workbench User can search Replenishment SO

Replenishment Sales Order Headers

Replenishment Sales Order Lines


BuySell SubcontractingProcess – Workbench-Allocations

Allocation details of a specific Replenishment SO

Details of the Subcontracting Orders hard pegged

Existing Allocations tab

• Allocations is hard pegging of replenishment Sales order quantity in OEM with discrete job component requirements in MP

• Allocations indicates components shipments to MP organization for Manufacturing specific subcontracting Order


BuySell SubcontractingProcess – Workbench_Allocations

Replenishment SO component pegging summary

Available Subcontracting Orders tab

List of Subcontracting Orders needing component allocations

Enter the quantity and create Manual allocations


Thank You

Thank You

Documents

Copyright © 2006, Oracle. All rights reserved. BuySell Subcontracting Overview Frederic Dubois Group Manager Supply Chain Globalizations Oracle Corporation