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Overview of Outside Processing

The competitive advantages of outside processing include:

Oracle Manufacturing allow you to include supplier-sourced components and resources in your manufacturing processes. The complete life cycle of outside processing from setup through execution is described below.

Outside Processing Items and Outside Resources

You can define outside processing items that represent supplier-sourced items, resources, and services you include 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 you enter on your purchase order lines and receive in your purchase order shipments.

You also define outside resources and associate them with these outside processing items. The outside resources are included on your routings for scheduling and costing purposes. A job or repetitive schedule in Work in Process is charged for outside processing through these outside resources.

Work in Process automatically requisitions the outside processing items associated with outside resources when you perform move transactions on jobs or repetitive schedules with outside processed assemblies. Purchasing charges outside resources to jobs or repetitive schedules when you receive the outside processing items.

Multiple Outside Resources per Operation

You can assign multiple outside resources to each operation on the routings of your outside processed assemblies.

Supplier-Sourced Components

You can define supplier-sourced components on your bills of material to identify components that are provided by suppliers.

Automatic Requisition Generation

Work in Process automatically generates a purchase requisition when you move into Queue of an operation that contains an outside resource linked to an outside processing item. You then use Autocreate to convert these requisitions to purchase orders or releases against blanket agreements.

Manual Outside Resource Requisitions and Purchase Orders

You can manually requisition and/or purchase outside resources that are not linked to outside processing items by requisitioning and/or purchasing an outside processing item and referencing a particular outside resource on a job or repetitive schedule.

Multiple Jobs or Repetitive Schedules per Purchase Order Line

You can define a purchase order with several lines; each line can be for a different outside processing item, and each outside processing item can refer to several discrete jobs or repetitive schedules.

View Jobs or Repetitive Schedules Included on a Purchase Order

You can view each of the jobs or repetitive schedules referenced on a purchase order. You can also report purchase order information associated with resources on jobs or repetitive schedules.

Outside Processed Assembly Tracking

You can track outside processed assemblies at the supplier using intraoperation move transactions.

Automatic Resource Charging

Purchasing automatically charges jobs or repetitive schedules for outside resources when you receive against the outside processing items linked to outside resources on those jobs or repetitive schedules.

Automatic Move Transactions

Purchasing automatically moves assemblies to Queue of the next operation or to To Move of the final operation (if you are at the final operation) when you receive outside processing items linked to PO Move resources.

Receiving Inspection Options

Oracle Manufacturing gives you several options to handle your receiving inspection flow: Supplier Inspection, Shop Floor Inspection, and Receiving Inspection.

Returns and Corrections

You can return outside processed assemblies to suppliers for rework, and you can reverse receiving transactions to correct over-receipts. Oracle Manufacturing reverses accounting charges and move transactions associated with any correction you make.

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