Implementing Oracle Configure to Order

This chapter covers the following topics:

Overview of Oracle Configure to Order

The Oracle Configure to Order Process Guide describes how Oracle ERP products support configure-to-order capability and requirements. This guide provides detailed implementation considerations for each step of the process.

A configure-to-order environment allows the product or service to be assembled (kitted) on receipt of the sales order. Oracle applications support the configure-to-order environment with a range of features that include order entry, demand forecasting, master scheduling, production, shipping, and financial accounting.

Oracle Configure to Order:

Definitions

Assemble-to-Order Model (ATO Configuration)

The Assemble-to-Order (ATO) model consists of:

Assemble-to-Order Item

Assemble-to-Order items consist of:

The three types of ATO items are:

Configurations

Hybrid models or multilevel ATO models can have multiple child models. Multiple instantiation is the ability to create and individually configure multiple occurrences of a model or model component, while configuring the model. A configuration model that contains models or model components that can occur multiple times is referred to as a solution model.

While configuring using the Oracle Configurator with setup completed for multiple instantiation, you can access a configuration model instance, as well as an instance of each component model that is contained within the model. You can also configure component model instances separately by selecting available options. For example, a computer system is represented by a solution model. A computer may contain a number of different servers, printers, and personal computer (PC) workstations. Each PC workstation in the system represents one instance of a configuration model, and you can configure each instance of the PC workstation differently. You can configure one instance of the PC workstation with a twenty-one inch flat screen monitor, 10 GB of disk space, and 512 KB of RAM. Another instance of the PC workstation may have a seventeen inch monitor, an ergonomic keyboard, 256 KB of RAM, and 4 GB of disk space. These two workstations are both part of the computer system solution model.

Additional Information: For additional information for setting up and using Oracle Configurator for multiple instantiated models, refer to the Oracle Configurator Developer User's Guide.

Pick-to-Order Model (PTO Configuration)

A Pick-to-Order model consists of:

Pick-to-Order Item (Kit)

A Kit consists of:

Hybrid

A Hybrid consists of:

Multilevel Assemble-to-Order Model (Multilevel ATO Configuration)

A Multilevel Assemble-to-Order model consists of:

Multilevel Assemble-to-Order Items

A Multilevel Assemble-to-Order item consists of:

Multi-Organization Assemble-to-Order Model (Multi-Organization ATO)

A Multi-Organization Assemble-to-Order model consists of an ATO model manufactured by and transferred from another organization.

Process Flows

The following illustrates three process flows:

  1. Single Level, Single Organization ATO, and PTO

  2. Multilevel, Multi-Organization ATO, and PTO

  3. Purchase-to-Order Configurations

Example 1: Process Flow for Single Level, Single Organization ATO, and PTO

The following diagram illustrates the flow of a single level, single organization assemble-to-order sales order. Each numbered step is explained in the table following the diagram and is described in subsequent chapters.

Process Flow for Single Level, Single Organization ATO, and PTO

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Single Level, Single Organization Process Flow Steps
Step ATO PTO Name Description
1 Yes Yes Define Model and Option Class Bills of Material and Routings Define model and option class bills and optional routings to control order management, master scheduling and MRP, work in process, and costing.
2 Yes No Forecast Model/Option Demand Forecast demand for model, options, or both. Expand forecasts through planning bills to models, and/or options.
3 Yes No Master Schedule Models and Options Master schedule ATO models, options, or both.
4 Yes Yes Enter Sales Order Enter sales orders for models with options.
5 Yes Yes Check ATP Perform group ATP check for all supply-constrained components to establish the earliest possible ship date for the configuration.
  Yes Yes Book and Schedule the Order  
6 Yes - AutoCreate Configuration Items Automatically create a new item number, bill, and routing for each new sales order and assign new items to sales orders.

Note: You can also "Progress the Order" through the Create Config Item function in the workflow. This creates the new item, bill and routing for that sales order's required configuration.

7 Yes - Create Production Supply Discrete: AutoCreate Final Assembly Orders automatically opens a discrete job for each new ATO configuration order. Work-in-process jobs are assigned (reserved) to the sales orders.
Flow: Use the line scheduling workbench to schedule your line based on sales orders. The sales order number is referenced on the flow schedule.

Note: You can also “Progress the Order” through the Create Production Supply function which automatically opens a discrete job or creates a flow schedule for the active configuration order line.

8 Yes - Complete Production Complete configuration item to inventory. The application automatically converts the work-in-process reservation or flow schedule reference into an inventory reservation.
9 Yes Yes Pick Release and Ship Configuration Orders Pick release all configuration sales orders.
10 Yes   Deactivate Configuration Items This function deactivates auto-generated configuration item numbers with order completion dates earlier than x days from the current date.

Example 2: Process Flow for Multilevel, Multi-Organization ATO, and PTO

Note: Oracle Advance Planning and Scheduling (APS) must be installed to support multilevel and multi-organization ATO models and ATO items.

The following diagram illustrates the flow of a multilevel, multi-organization ATO sales order. Each numbered step is explained in the table following the diagram and is described in subsequent chapters.

Process Flow for Multilevel, Multi-Organization ATO, and PTO

the picture is described in the document text

Multilevel, Multi-Organization Process Flow Steps
Step ATO PTO Name Description
1 Yes Yes Define Model and Option Class Bills of Material and Optional Routings Define multilevel model and option class bills, and optional routings to control order management, master scheduling and MRP, work in process, and costing.
2 Yes Yes Set Up Sourcing Rules, Shipping Networks, Assignment Sets, and APS Plans Define sourcing rules, shipping networks, assignment sets, ATP rules, and APS plans to control multi-organizational sourcing.
3 Yes No Set Up Global Forecast Set up global forecast for the model, options, or both using demand planning.
4 Yes No Master Schedule Models and Options Create the master schedule for ATO models, options, or both in the manufacturing organizations using the forecast set.
5 Yes Yes Enter Sales Order Enter sales orders for models with options.
6 Yes Yes Check ATP (optional) Process group ATP based on planning output to check for all supply-constrained components to establish the earliest possible ship date for the configuration. If you are using ASCP, then you can also run a global availability check to determine the shipping warehouse on the order.
  Yes Yes Book and Schedule the Order  
7 Yes - AutoCreate Configuration Items Automatically create a new item number, bill, and routing for all non-phantom models in the configuration structure in all potential sourcing organizations. The final configured assembly item is linked to the sales order.

Note: Advanced Planning does not recognize demand for an ATO model order until this step. You can create a configuration for a scheduled order before it is booked. See: AutoCreate Configuration Items.

8 Yes - Create Top-Level Production Supply
In a multilevel organization, you can create production supply in the shipping organization only if the final assembly is manufactured entirely within that organization.
If the shipping organization does not manufacture the final assembly, and sources it entirely from another internal organization, then you can create an internal requisition to transfer it from the source organization.
If the shipping organization has more than one source (any combination of Make, Buy or Transfer), then use Advanced Planning to recommend supply.
If the final assembly is being shipped from the manufacturing organization:
Discrete: AutoCreate Final Assembly Orders automatically opens a discrete job for the top-level item on each new ATO configuration order. The work in process jobs are reserved to the sales order. This process can also create supply for lower level configurations if they are being built or purchased from the same organization.
Flow: Use the Line Scheduling Workbench to schedule your line based on sales orders. The sales order number is referenced on the flow schedule.
Internal Transfer: If the final assembly is entirely transferred from another manufacturing organization, then the AutoCreate Requisitions process automatically creates an internal requisition for this assembly and reserves it to the sales order.

Note: You can also “Progress the Order” through the Create Production Supply function which automatically opens a discrete job, creates a flow schedule, or creates an internal requisition for the final assembly item of the active configuration order line. For items that are manufactured in the shipping organization, this process can optionally create supply for lower level configurations if they are built or transferred within the same organization.

9 Yes - Plan Lower Level Configuration Supply In a multi-organization environment, use advanced planning to create and implement planned orders across your supply chain.
10 Yes - Process the Supply Chain Plan Complete all required manufacturing in the respective source organizations and transfer to the shipping organization.
If the shipping organization is the same as the manufacturing organization of the top-level configuration item, then the work-in-process reservation or flow schedule reference is automatically converted into an inventory reservation when you complete the top-level configuration item to inventory.
If the final assembly is transferred from a different organization, then the reservation to an internal requisition is automatically transferred to inventory upon receipt of the assembly in the shipping organization.
11 Yes Yes Pick Release and Ship Configuration Orders Pick release all configuration sales orders.
12 Yes - Deactivate Configuration Items This function deactivates auto-generated configuration item numbers with order completion dates earlier than x days from the current date. A configuration item is deactivated if there is no sales order demand, open supply, or transactions within that organization.

Example 3: Process Flow for Purchase-to-Order Configurations

The following diagram illustrates the flow of a purchase-to-order sales order. Each step is explained in the table following the diagram and is described in subsequent chapters.

Note: In this example, the top-level configuration is being purchased. If the top-level configuration is manufactured and the lower level configuration is purchased, then the flow is similar to the multilevel multi-organization example with the lower level manufactured supply replaced with a purchased supply.

Process Flow for Purchase-to-Order Configurations

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Purchase- to-Order Process Flow Steps
Step ATO Name Description
1 Yes Define Model and Option Class Bills of Material and optional routings Define single or multilevel model and option class bills of material and optional routings to control order management, master scheduling/MRP, work in process, and costing. The entire BOM for a purchased configuration should be created in the validation organizations and receiving organization. Routings for all models and option classes should be created in the receiving organization.
2 Yes Set up Sourcing Rules Define a buy type sourcing rule for the models you plan to procure and assign it the assignment set specified in the MRP: Default Sourcing Assignment Set profile option.
3 Yes Forecast Model Demand Forecast demand for the ATO model. If you intend to buy the model configuration, then all components and option classes should have forecast control set to Null.
4. Yes Master Schedule the Top Model Master schedule the top ATO model.
5 Yes Enter Sales Orders Enter sales orders for models with options.
6 Yes Check ATP, Book and Schedule the Order Perform group ATP based on planning output to reduce the promise date lead time of the model.
7 Yes AutoCreate Configuration Items Automatically create a new item number, bill, and routing for all non-phantom models in the configuration structure. The BOM and routing are created in the receiving organization if they do not exist in any other organization. The final configured assembly item is linked to the sales order.
8 Yes Create Top-Level Purchase Requisitions
In multiorganization scenarios, you can create requisition supply only if the final assembly can only be purchased from that organization.
If the shipping organization can partially make or transfer the assembly from another organization, use Advanced Planning to recommend planned orders.
If the final assembly is being purchased directly from the shipping organization, then:
AutoCreate Purchase Requisitions automatically places a row in the requisitions import tables for the top-level purchased configuration or ATO item. Run requisitions import to create the requisitions. The created requisitions are reserved to the sales order.

Note: You can also “Progress the Order” through the Create Supply Order Eligible function which also places a line in the requisition import tables for the order line.

9 Yes Create Purchase Orders Create purchase orders or purchase order releases.
10 Yes Plan Configuration Supply Use advanced planning to create and implement planned orders if you are purchasing lower level configurations, or if you are purchasing lower level configurations from an organization other than your shipping organization.
11 Yes Process the Supply Chain Plan Create a requisition and purchase order for the configuration item. Receive into stock.
12 Yes Pick Release and Ship Configuration Orders Pick release all configuration sales orders.
13 Yes Deactivate Configuration Items This function deactivates auto-generated configuration item numbers with order completion dates earlier than x days from the current date. A configuration item is deactivated if there is no sales order demand, open supply, or transactions within that organization.

Note: Oracle Advance Planning and Scheduling must be installed to support purchasing of ATO items.

Feature Highlights

The following are key configure-to-order features supported by Oracle applications:

Product Definition

Planning Configurations

Ordering Configurations

Manufacturing Configurations

Procuring Configurations

Integration

The following Oracle application products are integrated to provide configure-to-order features:

Examples Used in This Guide

Two examples are used in this guide that illustrate the difference between single level / single organization, and multilevel / multi-organization configure to order. Follow the example that best suits your manufacturing environment.

Example 1: A hybrid (PTO/ATO) in a single level, single organization environment

The following is an example of a hybrid (PTO/ATO) in the single level, single organization environment. It is for a PTO model Promotional Laptop that has three pickable items: diskettes, a battery pack, and the laptop computer ATO model. The laptop computer model is comprised of a phantom model for a monitor, option classes for CPUs, VGAs, and EGAs, and the actual options. The example is first shown as a diagram, then in a tabular format. This example is used throughout the entire book for illustration.

A Hybrid (PTO/ATO) in the Single Level, Single Organization Environment

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A Hybrid (PTO/ATO) in a Single Level, Single Organization Environment
Level Item Item Type Optional Supply Type Planning % Qty Mutually Exclusive
1 Promotional Laptop PTO Model - - - - -
.2 . Battery Pack Kit No Assembly Pull 110% - -
.2 . Accessories PTO Option Class Yes Assembly Pull 40% - No
.2 . Diskettes Purchased Item Yes Assembly Pull 95% - -
. 2 . Laptop Computer ATO Model No Assembly Pull 100% - -
. . 3 . . CPU ATO Option Class No Phantom 100% - Yes
. . . 4 . . . Pentium I Purchased Yes Assembly Pull 65% - -
. . . 4 . . . Pentium II Purchased Yes Assembly Pull 35% - -
. . 3 . . Monitor ATO Model No Phantom 100% - No
. . . 4 . . . VGA ATO Option Class Yes Phantom 70% - No
. . . . 5 . . . . VGA Manual Purchased Item No Assembly Pull 100% - -
. . . . 5 . . . . VGA1 Purchased Item Yes Assembly Pull 50% - -
. . . . 5 . . . . VGA2 Purchased Item Yes Assembly Pull 50% - -
. . . 4 . . . EGA ATO Option Class Yes Phantom 30% - No
. . . . 5 . . . . EGA1 Product Yes Assembly Pull 55% - -
. . . . 5 . . . . EGA2 Product Yes Assembly Pull 45% - -
. . . 4 . . . Monitor Manual Purchased Item No Assembly Pull 100% - -

Example 2: A multilevel ATO in a multi-organization environment

The following is an example of a hybrid (PTO/ATO) in a multilevel, multi-organization environment. It uses the same PTO model Promotional Laptop that has the three following pickable items:

Note: The laptop computer model is sourced from another organization, and the monitor model has been made non-phantom and is sourced from a third organization.

The original structure is changed as follows:

The following illustration is of the BOM in the three organizations W1, M1, and M2. The BOM in the OM validation organization contains all models and options. This example is used throughout the entire guide.

A Multilevel ATO in a Multi-Organization Environment

the picture is described in the document text

Note: If the monitor model was bought instead of manufactured, then the entire monitor model BOM should reside in the receiving organization (M1).