Plan Outside Processing Operations

For constrained and unconstrained supply planning, you can plan one or more operations that are outsourced to suppliers. These operations are part of routings of items that are manufactured in-house.

The outsourced supplier operations are part of manufacturing a product, where the rest of the operations are processed in-house.

Outside Processing Calculations for Constrained and Unconstrained Supply Planning

The planning process for constrained supply planning calculates duration of outside processing operations based on fixed and variable lead times:

Fixed Lead Time + (Variable Lead Time multiplied by Lead Time Lot Size)

The planning process for unconstrained supply planning calculates duration of outside processing operations a little differently:

Fixed Lead Time + (Variable Lead Time multiplied by Operation Quantity)

Here's some additional information about outside processing calculations in Supply Planning:

• The fixed and variable lead times are the operation level attribute values.

• The lead time lot size is the item level attribute value. If there are no operation yields on the subsequent operations in the work definition, the lead time lot size is the same as the supply quantity.

• The operation duration is equal to the fixed lead time when the lead time lot size is zero or null.

• The supplier operation duration is based on the organization manufacturing calendar.

  For example, the duration of an operation is 7.5 hours and the organization manufacturing calendar has Saturday and Sunday on nonworking days. A supplier operation that starts on Friday at 23:00 will complete on Monday at 6:30. A supplier operation that starts on Monday at 23:00 will complete on Tuesday at 6:30.

Planning Work Orders with Outside Processing Operations

The following describes the supply planning behavior for firm and non-firm work orders.

• Firm work orders: The collected values for operation start date and operation end date of the outside processing operation within the work order is treated as firm.

• Non-firm work orders: If the supply planning process must reschedule a non-firm work order, it reschedules the operation based on the following:

  • For a constrained plan, the planning process reschedules the operation based on the fixed and variable lead times at the operation level and the lead time lot size.

  • For an unconstrained plan, the planning process reschedules the operation based on the fixed and variable lead times at the operation level and the operation quantity.

Planning Data Collections for Outside Processing Operations

Planning Data Collections collects these outside processing operation attributes for work orders and work definitions.

• Operation type: Either in-house or supplier

• Supplier

• Supplier site

• Fixed lead time

• Variable lead time

• Operation cost: Operation cost must be collected as the standard cost of the outside processing item that's associated with the outside processing operation.

If the operation type is In-House, then the Supplier, Supplier Site, Fixed Lead Time, and Variable Lead Time attributes aren't collected.

It's important to collect the operation attributes at the work order level. A nonstandard work order in Oracle Fusion Manufacturing Cloud can include an outside processing operation that's been previously defined as a standard operation. Such operations can exist only in the context of specific nonstandard work orders and can't be part of any item work definition.