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Finally "Make-to-Order" Solution from Oracle for Process Manufacturer !!!

With much awaited R12.1.1, which was released in early May 2009, Oracle has finally introduced full fledged “Make-to-Order” solution for process manufacturer as part of their OPM suite enhancement.

Let’s go bit in history before we discuss about the solution. We all know, In Discrete Manufacturing “Make-to-Order (MTO)” is available for long time, but in Process Manufacturing, things are different. Process manufactures who had implemented OPM or the ones, who were impressed with other features of OPM and were looking for implementation, were surprised at non-availability of MTO solution. This was a long awaited pain point which was finally addressed, though partially, with release of 11.5.10. With this release, it was possible to reserve production against sales order, but still demand was not driving the production, the core philosophy of MTO. Same functionality continued with R12 flavors, until R12.1.1 released with significant improvement in this area.

 R12.1.1 provides the ability to create a Batch or an FPO in response to a Sales Order Line. The Batch / FPO supply can then be reserved against the driving sales order lines. It also provides the ability to send notifications to the Customer Service Representative regarding Batch Creation and its linkage with Sales Order, and hence facilitates them to relay information to the customer such as Planned / Actual start dates, Planned Completion dates, Yield lot numbers etc.

Setup to enable MTO functionality is easy. All you have to do is define “Make-to-Order” Rules for process items & Enable workflow for notification, and you are done!!

How it works? Simple.. If you are creating sales order for MTO Process item, you will have to run one Concurrent request, which will create corresponding Production Batch & link it to Sales Order Line. System will also send the notification to CSR, depending on the setup. Item reservation can also be viewed through “Item Reservation window” where Sales Order & Production Batch detail can be queried.

Oracle is also planning to introduce “Attribute Based Manufacturing”, which will allow process manufacturer to use “Oracle Configurator”, and hence provide more options to customer at the time of ordering. But, till that time, they can enjoy immediate benefit of MTO functionality.

Comments

Hi Ashish,

Nice article you have. Btw, have any idea what is “Attribute Based Manufacturing”?

Thanks

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