LUX-Or LAM2 Kickoff_OPM Overview

8/12/2019 LUX-Or LAM2 Kickoff_OPM Overview

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1 CONFIDENTIAL INFORMATION 2009 M-I L.L.C. 4/1/2014

LUX-OR LAM2Oracle Process Manufacturing / Inventory (OPM)


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2 4/1/2014CONFIDENTIAL INFORMATION 2009 M-I L.L.C.

Agenda

OPM (Oracle Process Manufacturing) Overview

Process Flow

OPM @ M-I SWACO

Key System Features

Item Master

OPM Inventory

Manufacturing

Costing

Month End Close

ReportingQuestions

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What is OPM?

Oracle Process Manufacturing Combines Inventory,

Manufacturing & Costing

Inventory Provides Visibility And Control Of Your Supply Across Locations

Manufacturing Produces New ProductsBy Applying A Process To A Mix OfIngredients

Costing Calculates Item Costs UsingStandard Or Actual Costing Methods

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OPM / Inventory Benefits

Oracle Process Manufacturing (OPM)/Inventory (INV):

Provides Real - Time On-Hand Inventory Balances (Quantity & Value)

Ability To Capture And Review The Manufacturing Costs Incurred InProcess Manufacturing Businesses.

Track Materials Purchased, Consumed During, And Created As A ResultOf Manufacturing

Allows M-I SWACO To Track Production Batches From IncomingMaterials Through Finished Goods.

Ability To Respond Rapidly To Inventory Levels

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OPM Process Flow

Oracle Process Management (OPM)/Inventory (INV) is Closely Aligned To

Financial Applications

Operations

Finance

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OPM @ M-I SWACO

Oracle Environment

OPM Production Management, OPM Inventory Control, OPM Financials

Used To Add Item Numbers And Maintain Formulas For Manufactured Fluid &Production Technology Products

Used to Cost Products (Standard used in US/CanadaActual Used In OtherLocations)

Used To Create all GL Entries From OPM Transactions, Via Mfg Acct Controller

New Concepts/Process Changes from Non Oracle Environments

Global Instance and Implications on Items, Warehouses, Inventory, Etc.

Standardized Chart of Accounts

Global Connectivity

Inventory Transactions Entered & Owned By Field Operations

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Key System Features

Item Master

Perform Item Inquiry

OPM Inventory

Track Quantities Located In The Warehouses

Transfer Goods From Warehouse To Warehouse

Adjust Inventory Outside Of Normal Processes

ManufacturingCreate Production Batches

Convert Items To New UOM

Cost Management

Generate Item Costs Via Actual Costing

Automatically Translates Operational Transactions Into Accounting Entries

Month End Close

Financial Reconciliation Between OPM Inventory And Oracle General Ledger

Reporting

Inventory Balances & Turn Reports

Margin & Sales Reports

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Item Master

Items Include Raw Materials, Intermediate And Finished Goods, Packaging

and Services.Item Creation Process Owned Centrally By Supply Chain In Houston

Items Are Requested Using The Intranet Global Item Master Request Form(As It Is Performed Today)

Item Master Defines UOM Conversion (Ex. Volume to Mass By Item)

Finished Goods

Intermediate Packaging

Raw Material 1 Raw Material 2

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Adjust

Inventory

Ship

Inventory

Inventory Transactions

Receive

Inventory

Manufacture

Inventory

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Manufacturing Overview

Process Manufacturing Creates Products By Processing Raw Materials With

Blending, Mixing and Reconditioning Process Manufacturing Will Also Convert Items From One UOM To A New

UOM (Ex. Cutting Big Bags To Bulk Truck)

Determine EndProduct

Determine RawMaterials

DetermineProcessing

Needed

ProduceGoods

Oracle

Set Up tasks Batch

ProcessingCreate Batch

Release Batch

CompleteBatch

Close Batch

Recipe

Formula Routing

Operation

Resource Activity

Operation

Activity Resource


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PO Receipt TransactionsPO Price plus any Acquisition Costs areused to value the item

Generate Oracle

Item Costs

Production BatchesMaterial and resource costs for product are

captured when a batch is completed.

Actual Costing

Inventory MovementsCosts are calculated by warehouse

Actual Cost AdjustmentsCost Adjustments are made in order to

capture other cost components

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In Oracle, Item Costs Are Generated At The Item, Warehouse, Period Level

Actual Cost Will Capture The Actual Costs From Business TransactionsThroughout OPM - Purchase (PO) Receipts, Warehouse Transfers (OM),Actual Cost Adjustments And Production Batch (PM) Transactions.

Cost Details Are Processed and Displayed in OPM
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Daily Warehouse Mgmt Reports

Suite Of Cognos Reports Will Provide Daily Snapshot Of

Pending And Existing Inventory Transactions

OpenPODisplays Warehouse Open Purchase Order Lines, byDelivery Date and Purchase Order Number.

OM Open OrdersDisplays Open Sales Orders

Transfers Not ReceivedDisplays Warehouse Transfers NotReceived

WhseBalInvWarehouse Balance ReportPrompted To ReturnNegative Inventory Only

Inventory StatusOne Warehouse: Displays Quantities ForInventory Items In A WarehouseOn-hand, Committed Sales, In-

Transit, Open POs, And Projected Inventory Are Included in Summary

Unposted Inventory Journals: Displays Any Unposted InventoryQuantities Adjust & Move Journal Transactions That Have Not HadThe Post Journal Step Performed

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OPM Month End Close Overview

Month End Close

OPM Month End Close Is A Requirement For Financial ReconciliationBetween the OPM Inventory Sub System And Oracle General Ledger

This Process Will Be Completed Once Per Accounting Period Defined Asa Calendar Month Further Defined By Oracle OPM As InventoryCalendars

M-I SWACO UsuallyPerforms This Process OnThe Last Day Of The Month

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Prepare For Requirements Gathering

Examples Of Questions To Be Discussed

Do You Have Any Statutory Requirements To Value Inventory In AMethod Other Than Actual Costing?

What Reports Do You Require (Turn Rates, Inventory UOM ConversionsReport, Government Required Reporting)?

Do You Perform Manufacturing Processes At Any Warehouse Locations?

What UOM is displayed on your customer facing documents?

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Enhancements

Enhancements and Optional Features Delivered Over Time

Country-Specific Requirements

Statutory and Customer/Supplier Contracts

Requirements Approach

Global Footprint

Funct io nal i ty Used Global ly


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Documents

LUX-Or LAM2 Kickoff_OPM Overview