Copy Inventory Organization

Copy Inventory Organization in Oracle Apps is used to create a new inventory organization from exiting model organization. You can create multiple Inventory organizations with very little effort which is otherwise very tedious process during implementation.

You can optionally copy Organization Definition, Shipping network, Item and its attributes, Department, Resources, Routings, BOM.

Please note Subinventories, Locators, WIP Parameters, WIP accounting classes, Planning Parameters, and Shipping Parameters data from your model organization are always copied.

Copy Inventory Organization works only within same operating unit and new org created under same Business group, Operating unit, Legal entity and Ledger as that of model organization.

Pre-requisites 

1) Please define at least one inventory organization and all its steps. Please note you cannot use master organization as Model organization.
2) It is recommended to complete BOM setups if you want to copy that also
3) Location for new inventory organization. We will use "Test Location" in our demonstration.

Steps
1) Maintain Interface
2) Launch Organization Copy Program


Step 1) Maintain Interface step is used to put the data in Copy Inventory Organization interface tables.

Navigate to Inventory>Setup>Organization>Organization Copy>Maintain Interface

# Group Code: This is used to identify new org code and is one of the mandatory parameter Copy Organization Program. You can define multiple records under this Group Code.
# Organization Name: Please enter a name for new organization which will be created after running Copy Organization Program
# Organization Code: This is used to identify new org
# Location Name: Location for the new org. As mentioned before, we will use "Test Location" in our demonstration.

Now click on Populate Interface Table. A Confirmation Message will be displayed.

After Clicking ok, you can enter another inventory org which you want to create and use this form as many times as you want. You can also use this form to find previous records entered e.g,

The Status field here shows the status after running the program (Whether it is successful or failed). Blank mean the records are yet to be processed.

Step 2) Launch Organization Copy Program

Next step is to populate base tables by running Launch Organization Copy Program.

#Take model Organization as M1
#Group Code: use "Copy Test"
#Assign to Exiting Organization:  If yes, then new org will be assigned to same hierarchy as model org.
#Copy Shipping Networks: If yes the model org shipping network setup copied to new org.
#Copy Item: If yes, all item assigned to model org copied to new org
# Validate Item: Used to check inconsistencies before copied to new org.
# Copy BOM: BOM and its parameters will get copied to new org
# Copy Routings: If defined in model org, all departments, Resources and Routings will be copied to new org
# Purge: If yes then group code will be purged after running this program.

Click OK and Submit

Thanks
Mandeep

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Key Tables in Oracle Inventory

Table	Description
MTL_PARAMETERS	It maintains a set of default options like general ledger accounts; locator, lot, and serial controls, inter-organization options, costing method, etc. for each organization defined in Oracle Inventory. Each organization’s item master organization (MASTER_ORGANIZATION_ID) and costing organization (COST_ORGANIZATION_ID) are maintained here.
MTL_SYSTEM_ITEMS_B	This is the definition table for items. This table holds the definitions for inventory items, engineering items, and purchasing items. The primary key for an item is the INVENTORY_ITEM_ID and ORGANIZATION_ID. Therefore, the same item can be defined in more than one organization. Items now support multilingual description. MLS is implemented with a pair of tables: MTL_SYSTEM_ITEMS_B and MTL_SYSTEM_ITEMS_TL. Translations table (MTL_SYSTEM_ITEMS_TL) holds item Description and Long Description in multiple languages.
MTL_ITEM_STATUS	This is the definition table for material status codes. Status code is a required item attribute. It indicates the status of an item, i.e., Active, Pending, Obsolete.
MTL_UNITS_OF_MEASURE_TL	This is the definition table for both the 25-character and the 3-character units of measure. The base_uom_flag indicates if the unit of measure is the primary unit of measure for the uom_class. Oracle Inventory uses this table to keep track of the units of measure used to transact an item.
MTL_ITEM_LOCATIONS	This is the definition table for stock locators. The associated attributes describe which subinventory this locator belongs to, what the locator physical capacity is, etc.
MTL_ITEM_CATEGORIES	This table stores inventory item assignments to categories within a category set. For each category assignment, this table stores the item, the category set, and the category. Items always may be assigned to multiple category sets. However, depending on the Multiple Assignments Allowed attribute value in a given category set definition, an item can be assigned to either many or only one category in that category set.
MTL_CATEGORIES_B	This is the code combinations table for item categories. Items are grouped into categories within the context of a category set to provide flexible grouping schemes. Item categories now support multilingual category description. MLS is implemented with a pair of tables: MTL_CATEGORIES_B and MTL_CATEGORIES_TL. MTL_CATEGORIES_TL table holds translated Description for Categories.
MTL_CATEGORY_SETS_B	It contains the entity definition for category sets. A category set is a categorization scheme for a group of items. Items may be assigned to different categories in different category sets to represent the different groupings of items used for different purposes. An item may be assigned to only one category within a category set, however. STRUCTURE_ID identifies the flexfield structure associated with the category set. Category Sets now support multilingual category set name and description. MLS is implemented with a pair of tables: MTL_CATEGORY_SETS_B and MTL_CATEGORY_SETS_TL. MTL_CATEGORY_SETS_TL table holds translated Name and Description for Category Sets.
MTL_DEMAND	This table stores demand and reservation information used in Available To Promise, Planning and other Manufacturing functions. There are three major row types stored in the table: Summary Demand rows, Open Demand Rows, and Reservation Rows.
MTL_SECONDARY_INVENTORIES	This is the definition table for the subinventory. A subinventory is a section of inventory, i.e., raw material, finished goods, etc. Subinventories are assigned to items (in a many to one relationship), indicating a list of valid places where this item will physically exist in inventory.
MTL_ONHAND_QUANTITIES	It stores quantity on hand information by control level and location. It is maintained as a stack of receipt records, which are consumed by issue transactions in FIFO order. The quantity on hand of an item at any particular control level and location can be found by summing TRANSACTION_QUANTITY for all records that match the criteria.
MTL_TRANSACTION_TYPES	It contains seeded transaction types and the user defined ones. USER_DEFINED_FLAG will distinguish the two. The table also stores the TRANSACTION_ACTION_ID and TRANSACTION_SOURCE_TYPE_ID that is associated with each transaction type.
MTL_MATERIAL_TRANSACTIONS	This table stores a record of every material transaction or cost update performed in Inventory. Records are inserted into this table either through the transaction processor or by the standard cost update program. The columns TRANSACTION_TYPE_ID, TRANSACTION_ACTION_ID, TRANSACTION_SOURCE_TYPE_ID, TRANSACTION_SOURCE_ID and TRANSACTION_SOURCE_NAME describe what the transaction is and against what entity it was performed.
MTL_ITEM_ATTRIBUTES	This table stores information on item attributes. Each row in the table corresponds to an attribute. The table stores the attribute name, the corresponding user-friendly name seen by the users, and the kind of validation enforced on the attribute.
MTL_ITEM_CATALOG_GROUPS_B	This is the code combinations table for item catalog groups. An item catalog group consists of items that can be described by the same set of descriptive elements or item properties. When an item is associated with an item catalog group, the item inherits the descriptive elements for that group which then behave like additional item attributes.
MTL_ITEM_REVISIONS_B	It stores revision levels for an inventory item. When an item is defined a starting revision record is written out to this table, so every item will at least have one starting revision.
MTL_ITEM_TEMPLATES_B	This is the definition table for item templates. It contains the user-defined name (TEMPLATE_NAME) and description (DESCRIPTION) ONLY for backward compatibility. You can use a template to set certain item attributes.
MTL_DESCRIPTIVE_ELEMENTS	It stores the descriptive element definitions for an item catalog group. Descriptive elements are defining properties used to describe in the catalog group.
MTL_DESCR_ELEMENT_VALUES	It stores the descriptive element values for a specific item. When an item is associated with a particular item catalog group, one row per descriptive element (for that catalog group) is inserted into this table.
ORG_ACCT_PERIODS	It holds the open and closed financial periods for organizations.
MTL_CUSTOMER_ITEMS	It stores customer item information for a specific customer. Each record can be defined at one of the following levels: Customer, Address Category, and Address. The customer item definition is organization independent.
MTL_SYSTEM_ITEMS_INTERFACE	It temporarily stores the definitions for inventory items, engineering items and purchasing items before loading this information into Oracle Inventory.
MTL_TRANSACTIONS_INTERFACE	It allows calling applications to post material transactions (movements, issues, receipts etc. to Oracle Inventory  transaction module.
MTL_ITEM_REVISIONS_INTERFACE	It temporarily stores revision levels for an inventory item before loading this information into Oracle Inventory.
MTL_ITEM_CATEGORIES_INTERFACE	This table temporarily stores data about inventory item assignments to category sets and categories before loading this information into Oracle Inventory.
MTL_DESC_ELEM_VAL_INTERFACE	This table temporarily stores descriptive element values for an item that is associated with an item catalog group before loading this information into Oracle Inventory.
MTL_DEMAND_INTERFACE	It is the interface point between non-Inventory applications and the Inventory demand module. Records inserted into this table are processed by the Demand Manager concurrent program.
MTL_INTERFACE_ERRORS	It stores errors that occur during the item interface process reporting where the errors occurred along with the error messages.

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Kanban

Definition : Kanban literally means signboard or billboard in Japanese. It is first implemented at Toyota in 1953 and as per Wikipedia "Kanban maintain inventory levels; a signal is sent to produce and deliver a new shipment as material is consumed. These signals are tracked through the replenishment cycle and bring extraordinary visibility to suppliers and buyers"

As per Oracle White Paper on Kanban, "Kanban Cards are used in a Pull based System. A pull based system is one where inventory items for a particular part or assembly area are replenished as soon as they are needed. When the items are needed, Kanban cards in Oracle Inventory change their Supply Status to Empty, and Inventory generates the Kanban replenishment request automatically."

Kanban Source Type

• Inter Org:  This triggers an internal organization and item is sourced from other organization. 

• Supplier :  This triggers a Purchase requisition and insert records into PO_REQUISITIONS_INTERFACE_ALL

• Intra Org : This triggers a Replenishment Move order for Subinventory Transfer within an Organization. Value of REFERENCE_ID in MTL_TXN_REQUEST_LINES gives the KANBAN_CARD_ID in MTL_KANBAN_CARDS

• Production : This triggers creation of a WIP Job for make item and records are inserted into WIP_JOB_SCHEDULE_INTERFACE

Cycle of a Kanban Card

New > Empty>Wait>In Process> Full

Setups and Test Cycle

Step1) Create a item "Kanban Item" using Purchased Item template

Step2) Navigate to Inventory > Kanban> Pull Sequences >New

Source Tab
# Specify the item
# Take source type as Supplier

Kanban Tab
# Take Calculate as Kanban Size
# Specify a Kanban size
# Take Number of cards as 2

Click on Open will show you all the information

Save your work and click on Generate Cards

Click on Yes when Prompted for printing. Now click on Cards button

You can see the Card Status is Active and Supply Status is "New". Click on "Replenish" button.

That will change the Supply Status as Empty and also inserts the records in PO_REQUISITIONS_INTERFACE_ALL table.

Step 3) To Import this record, run Requisition import from Purchasing responsibility

You can check the output of this request so see number of records created

Now navigate to Requisition summary form and find the requisition with item number

Card status here still be empty

Step 4) Now AutoCreate Requisition in PO and approve the PO

Check the card status now. It will be In Process

Step 5) Now create a receipt and deliver products in Stores subinventory

Now check Kanban Cards

Supply Status is Full Now

Thanks
Mandeep

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Lead time Flashcards

Lead times

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Move Order Flash Cards

Move Order

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ABC Analysis

ABC Analysis

As per Oracle Inventory user guide "ABC analysis is a method of determining the value of items in your inventory, ranking your items according to a criterion and then grouping items into classes. "ABC" refers to the rankings you assign your items as a result of this analysis, where "A" items are more valuable than "B" items and so on."

To perform ABC analysis, the setups Steps are

1. Define ABC compile
2. Define ABC Classes
3. Define ABC Group
4. Define ABC Assignments
5. Update ABC assignments
6. Run ABC assignments report

Detailed Setup Steps are as follow. Use "V1"Inventory Org

Step 1) Define ABC Compile. Navigate to Inventory>ABC Codes>ABC Compile>Click New

#Give a unique ABC Compile name like "Mandeep Compile"

#In Content scope select organization if you want to do ABC ranking for all items assigned to this inv org V1. If you select Subinventory, then you need to provide a subinventory name and ranking will be done for the items define in item/subinventory window. In our case, lets take content scope as Organization.

#In Compile specification has a field called Criterion and there are 15 Choices in the list. Compile criterion used to rank all the item based on the selected value and assign ABC classes based on this.

Some of the lovs are defined below.

Ref:  http://docs.oracle.com/cd/A60725_05/html/comnls/us/inv/abcdef01.htm#r_critfld

In our case we will take 3rd choice: Historical Usage Value

# Take cost type as Frozen
# Forecast field will only get enabled if you have selected  " Forecasted usage quantity or Forecasted usage value". In that case you also need to enter Plan name.
# Enter a start and end date for the criterion

# Valuation scope used to determine the ranking of items. You must select organization if you have selected the organization in content.

After doing this setups, click on "Compile button" to run compile. This will fire a request to determine the values of each item assigned to this org and then use this to generate ABC Descending Value Report and then you can use this to assign item to ABC classes.

After this run "ABC Descending Value Report"

Step 2) Now define ABC Classes. Navigate as per screenshot below

ABC classes used to group item based on the valuation we determined in step 1

Step 3) Now define ABC Assignment groups

Assignment group assign the ABC classes with ABC compiles. you can also assign item to ABC Classes.

navigate as shown in below screenshot. Enter a  unique name in Group Name and assign Compile.

Now click on Group Classes and assign the classes which we have defined in step 2

Step 4) Click on Assign item Button to assign item to ABC classes and ABC Group

Here specify the cut of points for each ABC class. each ABC class should have at least one item assigned to it . You can mention sequence from descending value report or use inventory value or % of items or Value.

Here as it is vision instance values does't look similar but in real scenarios its really different.

Save your work. A request "Define ABC assignments" will be fired

Optionally you can use update assignments

Step 5) Now you can run "ABC assignments report"

Sample output is below

Thanks
Mandeep

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Oracle Min Max Planning

Min Max Planning


Min Max planning is one of the inventory planning method where when quantity reaches min level, system auto create purchase requisition to order material from supplier or can create a move order to transfer material from other Sub-inventory based on our setups. Min Max planning can be done both at sub inventory level or Inv org level. In org level the item quantity is checked in all subinventories

Lets see how to do Min Max Planning at Subinventory level

Setups
1) Create a Min Max Item. take template of purchase item.
2) Set planning method as Min Max in General Planning tab.
3) Navigate to Setup>Organization>Subinventories. Here in Item/subinventory specify Min and Max Quantities and Min /Max order Quantities.
4) Specify a Source in General Planning tab. We will take source as Subinventory to create a move order when demand arises.

Here system see on hand balances, Supply like PO and demand like Sales order at subinventory level

Step 1) Create a "MIN MAX" item and apply Purchase Item template

Item Setup Min Max Planning

Step 2) Navigate to General Planning tab, Here specify the planning method as Min Max Planning. you can specify the Min Max quantities and Min Max Order Quantities but when planning at subinventory level this will get overridden by the values at subinventory level.

Item Setup Min Max Planning

Step 3) Now go to Subinventory Window and Query for "Stores" subinventory.

Min Max Planning Setups

Click on Item/Subinventory Button

Step 4) Here First in Planning tab enter Item and specify min max quantities. Also Tick Min max planning check Box.

Min Max Planning Setups

Step 5) Now go to next tab "Order Modifiers". Specify a Minimum and Maximum order Quantities.

Min Max Planning Setups

Step 6) Now navigate to next Tab  "Sourcing". Here mention sourcing subinventory

Min Max Planning Setups

Note: Other methods of Sourcing are Suppliers and Inventory. If you choose "Supplier" system will create a Purchase requisition and if you choose "Inventory" system will create an internal requisition.

After that if you want you can optionally specify the lead times.

Test case

Step 1) After doing setups please perform miscellaneous transaction to receive some quantities in subinventory FGI for MIN MAX item

Step 2) Now run "Min-max planning report". You can choose the parameters as shown in below screenshots. Restock Option should be Yes.

Min-max planning report

Min-max planning report

Step 3) View report Output

Min Max Planning Report

You can see the values shown in report are from subinventory level and not from master item level.

Reorder quantity is 1000.

If something fails, you can run "Requisition Import Exception Report" to find out the errors.

Step 4) Now Navigate to Transact Move order  transact move order

Thanks
Mandeep
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