Understanding Manufacturing Integration
This appendix provides an overview of manufacturing integration and discusses how to:
Set up models for manufacturing.
Run the Routing Information engine.
Understanding Manufacturing Integration
Activity-Based Management enables you to use routing information from PeopleSoft Manufacturing to set up activity driver information within the system. Activity-Based Management can determine which activity is performed on which cost object as well as determine the quantifiable measures for that relationship. It uses Bill of Materials (BOM) information from Manufacturing and transforms the components within the BOM hierarchy into cost objects. In addition, Activity-Based Management is able to maintain the BOM structure. This is important because once you have run the Activity-Based Management engine, each component contains cost information. The roll-up of these costs using the BOM hierarchy results in a total indirect cost of the resources, activities, and cost objects. This total indirect cost is then directed back to the Cost Management environment.
Setting Up Models for Manufacturing
To set up models for PeopleSoft Manufacturing purposes, create a model and run the Routing Information engine to set up your activity drivers. You must then build the rest of the model by setting up resources and ledger-to-resource mapping and building resource drivers.
In many manufacturing environments, you use combination models that enable you to choose capacity or fixed rates for your resource drivers. You can have a capacity rate for one resource driver and a fixed rate for another resource driver in the same model.
See Also
Running the Routing Information Engine
The Routing Information engine establishes a relationship between the activity and its associated cost objects and thus creates activity driver information. It establishes drivers between activities and cost objects. These drivers are similar to the drivers established from resources to activities when you run the Employee Profile engine. Once data is received automatically from PeopleSoft Manufacturing, you run the Routing Information engine to populate the Routing Options table (RTG_OPS_F00).
Routing Information is an optional engine that you run prior to running the Activity-Based Management engine. As with all Activity-Based Management engines, you can run the Routing Information engine in a job stream. You can also run it separately by accessing the Routing Information page.
The Routing Information engine populates temporary tables. After running this engine, you must run the Merge engine to transfer the data from the temporary tables to the final tables. You can do this by creating a job stream for both engines, or you can run both engines separately. You can also create a job stream that includes the Activity-Based Management engine.
Note. The routing engine does not create common activities or dimensions, which may be necessary to create certain objects, such as activities and cost objects. Those required elements must exist in the database before running the Routing Information engine.
Inquiring on Engine Messages
To review messages generated by these jobs, open the Application Engine message log for the specific process instance and engine ID.