Infosys’ blog on industry solutions, trends, business process transformation and global implementation in Oracle.

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February 5, 2014

Oracle Project Manufacturing - A complete solution for Project Manufacturing based industries (Project Procurement)

Guest Post by 
Srushti Gogate, Senior Associate Consultant, Infosys Limited

Now that we have an introduction to Oracle Project Manufacturing (PJM) in the earlier blog and its salient features, we will look at each feature in detail in the forthcoming blogs. In this one, we shall throw some light on project based procurement using Oracle Purchasing and iProcurement.
Procurement on a very basic level can be of 2 types; either purchase of raw material or services provided. To talk in Oracle terminology it can be of destination type 'inventory' or 'expense'. The behavior or method followed in both cases is completely different in Oracle. Whenever we have an expense Purchase Order (referred to as PO further) raised against a project, Oracle Project Costing modules comes into picture. However this modules does not allow processing of inventory POs against project which is a standard functionality provided by Oracle. This is where PJM has a critical role to play.

PJM enables procurement of raw materials i.e. raising of Inventory POs against a Project and receiving the same at project locator to increase on hand quantity. It not only facilitates receipt but also takes care of the accounting.

The primary important setup which enables user to perform inventory purchases is as mentioned below:
  1. PJM Org Parameters: Here we enable the project reference and state whether the PO should be raised against only project or project-task combination. The GL posting option should be "By Project" and the Account option should be "Send Accounts to PA". This ensures that accounted transactions are incurred as cost against project and then posted to GL from Projects. No accounting takes pace in Projects.
  2. Project Parameters: Assign every project that is created to the organization in which Procurement process is to be done i.e. material is to be received.
Mentioned below are the steps to be followed for project based inventory procurement using PJM
  1. Create a Purchase Requisition against project and task number with destination type: Inventory
  2. The charge account will be derived by customized Requisition account generator based on the project entered
  3. Approve the requisition and Auto-Create PO from it 
  4. Enter supplier details. Please note that the project and task reference given in the requisition along with charge account will flow to the PO. Approve the PO
  5. Create receipt and receive the material against specific project locator (Locator is a combination of Project , Task, Row, Rack and Bin number)
  6. This will increase the on hand for the item against the project in inventory.

Thus this section tells us how PJM enables user to perform project based procurement  for Inventory items and track the material against the project along with the necessary mandatory setups

February 4, 2014

Oracle Fusion Portfolio Management on Cloud

Guest Post by 
Rajan Gupta, Senior Consultant for Manufacturing, Oracle practice, Infosys Limited

Cloud computing model is a new buzz and has huge potential to change the way that IT services are being run and provided in the company. Cloud computing is also a key answer to reduce cost of managing IT operations in the company. There has been tremendous shift from client-server / hosted systems to systems which can be available to all users around the globe at all times and anywhere. Before I talk much about cloud, let me give brief overview of Cloud. 

Basic understanding of Cloud model-
Cloud computing model means that provider will provide a grid of networks, servers, storage, applications, and services to companies who want to use the space to run their IT related business functions. Advantage of Cloud computing is that it can be available to end users using web browsers and therefore the only requirement from end user prospective is that user just needs an internet access and web browser.  In the traditional system, implementing any software or application involves lot of capital investment by the company which over a period of time gets depreciated. However, going to cloud help companies to reduce lot of cost as Cloud is based upon subscription model which means that you pay for what you use. That way that Cloud model not only helps in reducing hardware cost but also reduces IT maintenance cost which is mainly to pay IT professionals maintaining the systems. Another point to highlight is that companies do not have to wait for long time of requisitions, purchasing software/hardware, approvals, managing team of IT professionals and then implementing software which sometimes takes years to make IT operations running. Cloud helps companies to allow users to access the system in weeks instead of waiting for so long and hence the deployment time of application is much reduced.

There are 5 essential characteristics  of Cloud model as provided by NIST(National Institute of Standards) - On-demand self-service, Broad network access, Resource pooling, Rapid elasticity and Measured service. Cloud is built on three service models- Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). There are five deployment models available in cloud-Private Cloud, Community Cloud, Public Cloud, Hybrid Cloud.

Now coming back to Project Portfolio management Cloud services. As per recent independent analysts report, senior executives of the IT enabled companies are finding approaches to improve the PPM business functions in an optimal way. There is a huge demand from companies to provide mainstream PPM software functionality that can reduce budget and take lesser time to implement the application and at the same time provide all PPM stakeholders all the intended functionality. Oracle Fusion Project Portfolio Management Cloud Service offers complete integrated solution to provide deep insight to the Project managers and executives. Exception based transaction system, intelligent dashboards, role based access and integration with other financial modules provides customers a deep advantage in managing projects in an organization by providing the simplified business process. Cloud based application services enable users to manage project without IT involvement. Oracle Fusion Costing, Contracts and Billing, Resource Management and Project Management are all on Cloud and also provide 2 environments - one for production and one for staging purpose. Cloud model coupled with Oracle Fusion Project portfolio provides simplicity in managing and using the application, enabling portability and leading to productivity in managing the projects which thus leads to profitability of the organization. 

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