OAUG Connection Point 2004
An Oracle WMS Implementation in a
Manufacturing Environment
Linda Leslie
Motorola, Inc.
Automotive Communications and Electronics
Systems Group
Learning Objectives
• As a result of this presentation, you will
learn about:
– 11.5.9 WMS functionality in a manufacturing
environment
• Cost implications
• Over picking
• Customizations
– How supplier consigned inventory works in
11.5.9
Speaker’s Qualifications
• Linda Leslie is a Business Systems Analyst
at Motorola, Inc., Automotive
Communications and Electronic Systems
Group.
• Linda Leslie is the Cost Management Sub-
Chair of the OAUG Discrete Manufacturing
SIG
• Linda Leslie has presented at OAUG on
supplier consignment and completing
inventory close in two days
Presentation Agenda
• Overview
• 11i WMS implementation project objectives
• WMS 11.5.9 set up
• Challenges using WMS
• Using Rules and Strategies
• Customizations
• Supplier Consignment
• Q&A
Motorola, Inc. ACES
• Produces electronic engine and body
controls and sensors for automotive
applications
• Global manufacturing facilities
• Utilizes flow through manufacturing lines
• Some facilities produce 24 hours per day, 7
days a week
System Overview
• 300+ worldwide users of Oracle
Manufacturing applications
• Data base
– 80,000+ items
– Indented bills of materials
• Average of 8 levels
– Common components
Current System
• 10.7 SC Implemented January, 1999
• Separate SID’s
• Locally installed
• Manufacturing modules
– Inventory
– Engineering and Bills of Material
– MRP and WIP
– Purchasing
11i Project Objectives
• Replace 10.7 manufacturing
• Re-implementation
• One global instance
• Implement WMS for raw material
• Replace custom supplier consigned solution
WMS Set Up
• Engaged Oracle Consulting
• Changes after enabling WMS
– Cost Groups
– Prespecified locator control
– LPN controlled
Cost Groups
• Associate account information to
subinventories
• Cost Group assignment rules
• Original cost group retained
• Cost Group transfer
• Use of API and open interface
• Inventory reporting
API or MTL Interface
• Three cost group fields are added
– cost_group_id
– org_group_id
– transfer_cost_group_id
• Populate each field with the cost_group_id
of the destination subinventory
Inventory Reporting
• Currently post GL balances to different inventory
accounts
– Raw Material
– Non-nettable inventory
– Work in process
– Finished Goods
• Resulted in co-mingling errors
• Will use only two cost groups with WMS
– Raw Material
– Finished Goods
Over Picking
• Move order requests generate picks
• Only quantity on move order is transacted
• Current business processes result in over
picking requested quantities
• “Over picking lite”
WMS Rule Types
• Five types of rules
– Picking
– Put away
– Cost group
– Label type
– Task type assignment
WMS Rules
• Always use the Find window to query rules
• Do not check Common to all orgs
– Task Type Assignment rules
– Cost Group rules
• Used for both raw materials and finished
goods
• Can run simulation
Rules Setup
• Warehouse Manager:Setup:Warehouse
Configuration:Rules:Warehouse Execution:
Rules
Rules Setup
Strategy Setup
• Warehouse Manager:Setup:Warehouse
Configuration:Rules:Warehouse Execution:
Strategies
Rules Workbench
• Add, update or delete strategies and rules
• Strategy Assignments
– Org specific
– Defaults to current org
• Sequence controls
– Order in which strategy assignments will be
evaluated by Rules Engine
Rules Workbench
• Warehouse Manager:Setup:Warehouse
Configuration:Rules:Warehouse Execution:
Rules Workbench
Receiving Process Customization
• Receipt routing
• Skip lot functionality
• Use of Sourcing Rule descriptive flexfields
• Inspection Required
Handheld Configuration
• Prompt changes
• Receive by Item
– Parse PO number modification
Current Supplier Consignment
Overview
• Utilizing custom supplier consigned solution
in 10.7
• Miscellaneous receipt on physical receipt of
goods
– Inventory is costed
• PO Receipt on change in ownership
• Miscellaneous issue
• 24% of raw material inventory value is on
supplier consignment
Converting Consigned Quantities
• Received solution from Oracle Consulting
– Create purchase orders
– Create Approved Supplier Lists
– Convert on hand quantities through Receiving
Interface table
Consignment Setup
• Create Blanket Purchase Agreement
– Operating unit shared across inventory orgs
• Create Approved Supplier List
– Add blanket purchase agreement number
– Check Consigned from Supplier
• Create Standard Purchase Order
• Define Consigned/VMI Consumption
Consigned/VMI Consumption Setup
• Inventory:Setup:Transactions:
Consigned/VMI Consumption
Supplier Consigned Process
• Supplier ships against standard purchase
order
– PO Receipt transaction
• Put away
– Owning party on Material Workbench
• Consume material
– Transfer to Regular transaction type
– Ownership Transfer Transaction Action
– PO Release against blanket agreement
Supplier Communication
• Motorola Schedule
Sharing™ System
Supplier Communication
Supplier Communication
Payment to Supplier
• Evaluated Receipt Settlement (ERS)
– Requires packing slip number from standard
purchase order receipt
• Payment generated from blanket release
– Price on both blanket agreement and standard
PO
Summary
• WMS should meet business needs
– Some customizations
• Supplier consigned inventory has been
tested
– May need some reporting customizations
• Positioned for future process improvements
– Min/max planning
Q&A
Thank You!
