Understanding Process Terminology

You should be familiar with the process manufacturing terms before using process manufacturing:

Process Term	Description
Co-Products	Many process steps create multiple outputs. A co-product is produced by process steps that are defined for specific ingredients. Co-products are usually the main products that companies sell to customers. For example, a graphite lubricant process creates two co-products: household and graphite lubricants. Material Requirements Planning plans for co-product demand.
By-Products	A by-product is produced as a residual or incidental item that results from the process steps. Companies can recycle, sell, or use by-products for other purposes. For example, a graphite lubricant process creates one by-product: sludge. Material Requirements Planning does not plan for by-product demand.
Ingredients	An ingredient is the raw material or item that is combined during process manufacturing to produce the end item. Typically, raw materials are purchased.
Intermediates	Intermediates enable you to track the quantity of output of any operation in a work center at a specific time. You can define intermediates in different units of measure, by item, or by quantity. You can set up one intermediate per operation, but you cannot define an intermediate for the last operation in a routing. You can manually attach intermediates. Intermediates are not stocked in inventory, sold to customers, or planned by Material Requirements Planning (MRP). Fermented liquid is an example of an intermediate. The liquid ferments for an extended period of time before being distilled. The resulting liquid is not a finished product, but it proceeds to the next operation.
Process Routing Instructions	A process routing instruction details the method of manufacture for a specific process item. It includes operations and operation sequence, work centers, and standards for setup and run. You can also define operator skill levels, inspection operations, and testing requirements.
Substitutes	A substitute item is an alternate item that the system uses in production when the primary item is not available. You can define substitutes for a single ingredient within the process. You might need to do so for several reasons, such as quality concerns, inventory shortages, or supplier delivery problems.
Alternate Operations	An alternate operation is a replacement for a normal operation for an item in the manufacturing process. You can define an alternate operation to be performed only as required, such as using oven B if oven A is unavailable. This information assists shop floor personnel, but it is not used by the JD Edwards EnterpriseOne Product Costing or the JD Edwards EnterpriseOne planning and execution systems.
Batch Processes	In batch processing, items are produced in fixed quantities, or batches. Food, petroleum, and pharmaceutical industries use batch processing. The batch process feature enables you to define different processes for items based on quantity or batch size, since processes vary by quantity.
Percent Bills of Material	Percent bills of material enable you to define processes with ingredient quantities that are expressed as a percent of the process batch quantity. The system processes percent information as: Multiplies the ingredient percentage times the batch quantity to obtain ingredient quantities expressed in the batch quantity unit of measure. Converts the ingredient quantities from the batch unit of measure to the ingredient unit of measure. The system stores quantities for ingredients by: Calculating a percentage for the ingredient in relation to the batch size. Converting the batch unit of measure to the ingredient unit of measure and stores the quantity for the ingredient. Note: Percent bills of material are not supported in JD Edwards EnterpriseOne Demand Flow® Manufacturing from Oracle.