How You Manage Work Orders for Contract Manufacturing
Contract Manufacturing refers to scenarios where an Original Equipment Manufacturer (OEM) outsource their manufacturing process to another organization commonly known as a Contract Manufacturer (CM).
A contract manufacturing flow can be initiated either to fulfill a sales order, or as a result of implementation of supply chain planning recommendations. In either case, supply orders are created in Oracle Supply Chain Orchestration, after which Supply Chain Orchestration initiates the creation of a work order in Oracle Manufacturing, to track the progress of manufacturing at the contract manufacturer's facility. Supply Chain Orchestration sends a request to Purchasing to create a purchase order on the contract manufacturer, for the contract manufacturing service item.
In a contract manufacturing plant:
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You can search for work orders based on purchase order header and line.
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You can't create a standard work order.
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You can't create a nonstandard order.
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You can't update the work order. However, for serialized assemblies, you can edit the serial numbers.
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You can't perform work order mass actions.
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You can't create a rework or a transform work order.
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You should ensure that there is a one-to-one correlation between a contract manufacturing work order and the corresponding purchase order line.
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You should not group multiple requisition lines into a single purchase order line.
- Although you can specify the job profile and equipment profile for a resource in the work order, it won’t be enforced for contract manufacturing work order transactions.
In a contract manufacturing plant, you can preassign output lot numbers and the work order number can be defaulted as the preassigned lot number during the work order creation based on the plant parameter setting. When Supply Chain Orchestration creates a work order in manufacturing, the preassigned lot is automatically written to an .xml file.
In a contract manufacturing plant, it's recommended to set the attribute Autogenerate of Serials at Creation of Work Order at Plant Level to Yes for serialized manufacturing. When Supply Chain Orchestration creates a work order in manufacturing, the serials are automatically generated, and the generated serials are automatically written to an .xml file.
This .xml file is automatically attached to the work order with attachment type To Supplier. You can view the same attachment containing the lot / serials in the Purchase Order line.