Resource-BOM.docx

8/22/2019 Resource-BOM.docx

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Defining a Resource

Use resources to define the time an assembly spends at an operation and the cost youincur at the operation. A resource is anything you require to perform, schedule, or cost,including but not limited to: employees, machines, outside processing services, and

physical space. A resource and usage rate for all scheduled activities is required in arouting. Scheduled resources can include queue, setup, run, and move time.

When you define your departments, you assign the resources available in eachdepartment and the shifts that each resource is available. For each operation youdefine, you specify a department and list of resources and usages. An operation canuse any resource that is available in the department, but you do not need to use allresources assigned to the department.

If you have Oracle Manufacturing installed, you can use Resource batching. Resourcebatching enables you to use resources across multiple jobs. By using a single resource

to process multiple jobs simultaneously, you can prevent a resource from beingunderutilized. Work scheduled using resource batching is characterized by equivalentwork performed with the same manufacturing processes. See:Resource Batching.

Prerequisites

Before you can define resources, set up your units of measure andunit of measure conversion rates. Some resources may representcurrency such as a fixed charge resource, but currency resources cannotbe scheduled since their unit of measure is not time-based.

Set the site level profile option BOM: Hour UOM to hold the unit of

measure that represents an hour. Oracle Work in Process prevents youfrom scheduling resources whose unit of measure is not in the same unitof measure class as the hour unit or measure and has no conversionsdefined to the hour unit or measure.

To define a resource:

1. Navigate to the Resources window.2. Enter a resource name unique to the organization to describe the resource.For example, you could assign AS1 to signify assembler grade 1, or WE forwelder.3. Optionally, enter an inactive date after which you can no longer assign thisresource.4. Select a resource type: Amount, Currency (the set of books currency asdefined in Oracle General Ledger), Machine, Miscellaneous, Person, or physicalSpace.5. Enter a unit of measure (UOM) that describes how you measure the resource.(You can update this if the BOM: Update Resource UOM profile option is set toYes.)
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Note: This field is protected from changes if this resource is used for anyoperation with the Schduled field set to Yes, and if you have previously setit as a time-based UOM. See:Assigning Operation Resources.

6. Select a charge type. When an operation is completed, Oracle Work inProcess records the units applied to the job or repetitive schedule in the resource

unit of measure for all resources you charge manually or automatically. See:Charge Types.7. Select a basis type by which to charge and schedule the resource.Item: Charge and schedule the resource where the resource usage quantity isthe amount required per assembly unit you make.Lot: Charge and schedule the resource where the resource usage quantity is theamount required per job or schedule.8. Select an expenditure type for this resource.If the Project Cost Collection Enabledparameter is set in the OrganizationParameters window, you must associate the resource with an expenditure type.See:Organization Parameters WindowandDefining Project Information.

You can only select expenditure types that belong to the Work in Processexpenditure type class. Expenditure types are defined in Oracle Projects. See:Expenditure Type Classes,Expenditure Types,andDefining Expenditure Types.9. Indicate whether to enable the outside processing resource, and if so, enter itsitem number.

Attention: If you specify PO Move or PO Receipt, Oracle Purchasinguses this item when it creates requisitions for your outside processingresource. See:Overview of Shop Floor Control. See:Outside Processing

10. Enable the Costed check box to collect and assign costs to this resource, andif so, optionally enter an activity for the resource.You cannot view costing information if the Privilege To View Cost Information

function is excluded from the responsibility. You cannot update costinginformation if, in addition, the Privilege To Maintain Cost Information function isexcluded.You can use activities to group resource charges for cost reporting purposes.See:Defining Activities and Activity Costs.11. If the resource is costed, indicate whether to charge jobs and repetitiveschedules based on a standard rate you define.Or, disable Standard Rate to enter a rate to charge the resource in Work inProcess for an internal resource, or derive the rate from the purchase order foran outside processing resource. For outside processing resources, if you chargea job or repetitive schedule at the standard rate, a purchase price variance is

computed and posted to the rate variance account. If you charge for all otherresources, if you charge a job or repetitive schedule at the actual rate, a resourcerate variance is computed and posted to the rate variance account.12. If this resource is costed, enter an absorption account (general ledgeraccount) used to offset resource charges earned in work in process.

At period end, you normally compare this account to the resource charges in thegeneral ledger.
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For outside processing resources, the default is the receiving valuation accountfrom Oracle Purchasing, as defined in the receiving options.

Attention: For outside processing resources, do not change the defaultreceiving valuation account. When you receive an outside processingpurchase order, Oracle Purchasing credits the inventory AP accrual

account, and debits the receiving valuation account. Bills of Material thendebits the work in process outside processing account and credits thereceiving valuation account. If you change the above default account, yourreceiving valuation account will have an incorrect balance.

13. If this resource is costed, enter a variance account (general ledger account)to accumulate resource rate variances for a job or repetitive schedule. Foroutside processing resources, this is the purchase price variance account.14. If you have Oracle Manufacturing installed, you can use Resource batching.To enable resource batching, select the Batchable check box in the Batchableregion. This enables the other batch fields. See:Resource Batching.15. Enter the maximum number units to be batched in the Maximum Batch

Capacity field.16. Enter the minimum number of units to be batched in the Minimum BatchCapacity field17. Select the unit of measure for the batch capacity from the list of valuesavailable in the Batch UOM window field.18. Enter the time value for the batching process in the Batching window field.19. Select the time unit of measure available in the Batching Window UOM field.

To define cost type and resource rate associations:

1. Navigate to the Resource Costs window. Do this by choosing the Rates button

from the Resources window.Note: You cannot view costing information if the Privilege To View CostInformation function is excluded. You cannot update costing information if,in addition, the Privilege To Maintain Cost Information function isexcluded.

2. Enter or select a cost type to associate with each resource overhead rate.3. Enter the Resource Unit Cost, that is, the resource's current standard cost perUOM.

To associate overheads with resources:

1. Navigate to the Resource Overhead Associations window. Do this by choosingthe Overheads button from the Resources window.

Note: You cannot view costing information if the Privilege To View CostInformation function is excluded from the responsibility. You cannotupdate costing information if, in addition, the Privilege To Maintain CostInformation function is excluded.

2. Enter or select the cost type for the resource.
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The Allow Updates check box indicates whether the cost type is defined asupdatable.3. Enter or select the overhead to associate with the resource.For example, you could assign resource cost as dollars per hour. If you enter anew resource, you can directly enter a frozen unit cost. However, you cannot

directly update the frozen unit cost for a previously entered resource.

To group similar types of equipment by resource:

You can define Equipment Types to group similar types of resources. Forexample, you can define an Equipment Type of Forklift.1. Navigate to the Equipment Types window. Do this by choosing the Equipmentbutton from the Resources window. You can choose the Epuipment button if theResource is a Machine type.2. Enter an Item Number in the Equipment field.3. Save your work.

Note: If you have Warehouse Management installed, you can use theResources form to define a class of manual or machine resources. Forexample, a forklift machine resource is indicated by entering the resourcename and description, as well as which equipment items are capable ofperforming pallet picking. See:Set Up Equipment Resources.

To group employees by resource:

You can define the roles which represent what an employee can do for arequired task. For example, a role could be defined as Cycle Counter, or a CasePicker.

1. Navigate to the Employees window. Do this by choosing the Employees buttonfrom the Resources window. You can choose the Employees button if theResource is a Person type.2. Enter an Employee to associate with the resource.3. Save your work.

Note: If you have Warehouse Management installed, you can use theResources form to define employees qualified for each resource. Forexample, a hazardous materials manual resource is indicated by enteringthe resource name and description, as well as which employees arecapable of performing hazardous material tasks. See:Set Up WarehouseEmployee Resources.
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Resource-BOM.docx