Oracle Manufacturing enables you to include supplier-sourced components and resources in your manufacturing processes. You can use specialized supplier skills in your manufacturing process to help lower engineering and manufacturing costs and increase production quality; and supplier capacity to increase your overall production capacity.
Outside processing items are defined for supplier-sourced items, resources, and services included in your build process. These items can be non-stocked items which represent the actual supplier contribution in your build process or you can define the assembly itself as an outside processing item. The outside processing item is the item on your requisition or purchase order and the item you receive in your purchase order receipts. Features of outside processing include the following:
Multiple outside resources can be assigned to each operation on the routings of your outside processed assemblies.
You can define supplier-sourced components by selecting the Supplier supply type on your bills of material to identify components that are provided by suppliers. Supplier components provide information on the component materials that your suppliers provide, but the supplier components need not be transacted. Supplier components are not backflushed.
An outside processing operation is an operation that contains an outside resource for a required item. Work in Process can be automatically set to generate purchase requisitions for outside processing operations. The Autocreate feature in Oracle Purchasing is used to convert these requisitions to purchase orders.
Note: The Requisition Import process automatically runs when using PO Move and PO Receipt resource types. However, only PO Move initiates the Intermediate Shipment workflow.
See: Requisitioning Outside Processing Items
Purchasing automatically charges jobs or repetitive schedules for outside resources when you receive the outside processing items linked to outside resources on those jobs or repetitive schedules.
When you receive outside processing items linked to PO Move resources, Purchasing automatically moves the assemblies to Queue of the next operation or to To Move of the final operation (if you are at the final operation).
If you receive more assemblies than the quantity in the Queue of the outside processing operation, WIP automatically moves a quantity up to the over-completion tolerance limit on the assembly being built. If the quantity received is greater than the acceptable over-move quantity for the job, then the transaction will error and quantity will be included on the Pending Move Transaction window.
Note: If Oracle Shop Floor Management is installed, and you are using lot based jobs with network routings, the PO Receipt transaction moves the items to the last operation-not the next operation. See:
Creating a Network Routing in the Shop Floor Management.
If the outside processing operation is the last operation on the routing, and the resource has a charge type of PO Move, Work in Process automatically completes both full and partial outside processing assembly quantities into Inventory when they are received back from the supplier. When quantities that account for the remaining uncompleted quantity of a work order are received, the status of the work order is updated to "complete-charges allowed."