Oracle EBS Outside Processing and Production Scheduling

How to set up outside processing

1. 1Create the outside processing item in the Master Item form with the Outside Processing Item attribute on, a purchasable flag and a unit of measure matching how the supplier prices (for example each or pound).
2. 2Define a resource in Bills of Material > Routings > Resources with the Outside Processing check box on and a charge type of PO Receipt or PO Move. Link the OSP item to the resource and set the unit of measure.
3. 3Create a department (Bills of Material > Routings > Departments) and assign the OSP resource to it.
4. 4Add an operation to the routing for the department and include the resource, with the usage rate and basis (item or lot).
5. 5Create the job in WIP > Discrete > Discrete Jobs with the routing. Release it.
6. 6On release, WIP populates the requisition interface; run Requisition Import in Purchasing to create the approved requisition.
7. 7Use Autocreate to turn the requisition into a PO, send it to the supplier, and receive against it. With PO Receipt charge type, receipt charges the resource and can move quantity.
8. 8Check the job in the Operations and Resources views and in the OSP cost reports.

How production scheduling works in EBS

-- Jobs with outside processing resources, quick check
SELECT wo.wip_entity_id, wo.operation_seq_num, wor.resource_id
FROM   wip_operations wo
JOIN   wip_operation_resources wor
       ON wor.wip_entity_id = wo.wip_entity_id
      AND wor.operation_seq_num = wo.operation_seq_num
      AND wor.organization_id = wo.organization_id
WHERE  wo.organization_id = :org_id

Common pitfalls

• !Forgetting to link the OSP item to the resource, so release creates no requisition.
• !Choosing PO Receipt when you need the job to move automatically, or the reverse.
• !Mismatched units of measure between the OSP item and the resource usage rate.
• !Assuming WIP scheduling is finite; it ignores resource load.
• !Closing a job before the supplier invoice is matched, locking in estimated cost.