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OPM vs Discrete Manufacturing Insights

The document discusses the primary differences between Oracle Advanced Supply Chain Planning's (ASCP) support for Oracle Process Manufacturing (OPM) versus Discrete manufacturing. It explains that in OPM, a formula and recipe are used to define a batch manufacturing process, whereas discrete uses a bill of materials (BOM) and routing to define a discrete job. It also describes how ASCP maps OPM formulas and recipes to similar BOM and routing structures for planning purposes. Key differences discussed include how OPM uses formulas, recipes, and validity rules to define product structures and batches instead of BOMs.

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Rohiet Bhanage
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100% found this document useful (1 vote)
1K views5 pages

OPM vs Discrete Manufacturing Insights

The document discusses the primary differences between Oracle Advanced Supply Chain Planning's (ASCP) support for Oracle Process Manufacturing (OPM) versus Discrete manufacturing. It explains that in OPM, a formula and recipe are used to define a batch manufacturing process, whereas discrete uses a bill of materials (BOM) and routing to define a discrete job. It also describes how ASCP maps OPM formulas and recipes to similar BOM and routing structures for planning purposes. Key differences discussed include how OPM uses formulas, recipes, and validity rules to define product structures and batches instead of BOMs.

Uploaded by

Rohiet Bhanage
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Understanding the Primary Differences between OPM and Discrete Processes
  • Explaining Process Manufacturing vs Discrete Manufacturing
  • Oracle Applications: OPM Org Structure
  • Oracle Process Manufacturing User's Guides

Understanding the primary differences

between OPM and Discrete processes






A friend asked me to explain the primary differences in how Oracle Advanced Supply Chain Planning
supports Oracle Process Manufacturing vs Discrete manufacturing. I thought this might be of general
interest, so I am reposting part of my response here.

One of the primary differences between OPM and Discrete Manufacturing applications is the Process that
is used to define a batch. In Discrete, you have a BOM and a Routing that define the manufacturing
process (released as a discrete job). In OPM, you have a Formula and a Recipe that are used to define the
manufacturing process (released as a batch). A key point here is that certain factors (validity rules) like
date and quantity determine which formula and recipe combination is used to make a specific batch.

ASCP maps these formulas and recipes into similar BOM and Routing structures, so that similar planning
functionality can be utilized by both source systems.

The OPM Product structure is characterized by:


Formula: Defines the components required to make the product and can be considered the equivalent of a
BOM structure. If a formula is used in multiple recipes which have different Validity Rules, these formulas
are considered equivalent to alternate BOM structures. ASCP expects only one product to be produced per
BOM structure. In OPM it is common to have co-products produced which are represented in ASCP as
byproducts (negative usage values) on the same BOM.

Recipe – Defines the process for making the product. A Recipe and its associated Validity Rules define the
process of using a specific formula and its equivalent Routing to make a product.

Validity Rules – Associated to the Recipe to provide additional logic such as:

1. Start and End Effective date ranges.


2. Minimum and quantity ranges.
3. Preference to use in ties.

There are many other differences between OPM and Discrete such as how operations are scheduled and
MTQ quantities handled. It would be useful to review the ASCP release notes for release 11.5.10 and
release 12 . Many of the recent ASCP enhancements were designed to handle these specific OPM
scheduling requirements

Oracle OPM Interview Questions


1) What are the different types of manufacturing processes? And what are the primary
differences between them? OR
Explain Process Manufacturing v/s Discrete manufacturing?

Discrete Manufacturing is the production of distinct items that use bills of material and
routings to determine costs and lead times. Eg: Car manufacturing, Computer
Manufacturing etc you get all the parts and assemble them.
OPM on the other hand caters to capabilities to allow for multiple units of measure
because the flexibility in batch production is required in process industries. e.g Chemical
Industries, food processing etc. This involves complex internal processes and need a
high level of control.
Eg: You mix x kgs of sugar and n litres of milk, you get a sweet as the output. This can
be in kilos, litres or smaller units. If you do not allow the water to evaporate the output
will be a liquid, if you heat longer the output will be a burfi.
What is the difference between the two?
1)ODM uses BOM (Bill of Materials), OPM uses formulas and Recipes
2)UOM will vary depending on the material used in OPM but in ODM UOM will be each or
unit
3)ODM assembles or builds things, OPM mixes , blends and transforms or converts.
4)OPM is driven by item attributes and ODM is driven by part number

Oracle Process Manufacturing -

It the entire product lifecycle for recipe-based


manufacturing, from new product development, recipe
management and production, to cost, quality, and regulatory
management. It enables you to formulate products to
individual customer specifications, manage variability,
optimize capacity, and drive continuous process improvement

2) What are the modules that come under oracle’s OPM solution?

Answer: OPM includes OPM Process Planning, Product Development(which includes


Formula,Recipe,Quality), Production, Financials(Costing,MAC), Logistics, Regulatory Management
etc. These are products which come under this umbrella..
· OPM Cost Management
· OPM Formula Management
· OPM Intelligence
· OPM Inventory Management
· OPM Laboratory Management
· OPM Master Production Scheduling
· OPM Material Requirements Planning
· OPM Production Management
· OPM Purchasing Management
· OPM Quality Management
· OPM Capacity
· OPM Sales Management
· Oracle Financial
3) Name and explain frequently used terms in Oracle Process Manufacturing?

Answer:

4) Name some important tables used in OPM? ORWhich tables stores the formula information?
Answer:
1) select
a.FORMULA_ID,a.formula_no,a.FORMULA_DESC1,b.INVENTORY_ITEM_ID,[Link],[Link]
n_id,decode(b.line_type,-1,’Ingredient’,'Product’) Type
from FM_FORM_MST a,FM_MATL_DTL b,mtl_system_items c
2) Select
b.RECIPE_DESCRIPTION,a.RECIPE_VALIDITY_RULE_ID,c.INVENTORY_ITEM_ID,[Link],decode(c.
line_type,-1,’Ingredient’,'Product’) Type,
sum(e.TRANSACTION_QUANTITY) quantity
from apps.GME_BATCH_HEADER a,GMD_RECEIPIES b,GMD_RECEIPE_VALIDITY_RULES grr,
GME_MATERIAL_DETAILSs c,apps.mtl_system_items d,apps.mtl_material_transactions e

5) Explain what do you mean by Formula and Recipe?


Formula is Ingredients and their proportions
Receipe is Formula + Routing.

6) What are different kinds of losses?


Fixed loss and Variable loss.

[Link]

Oracle Applications :OPM Org Structure


1/27/2016 [Link] PM

Discrete Org Structure is

Set of Books > Legal Entity >Operating Unit>Inventory Org>Sub Inventory > Stock Locators

In OPM Org Structure is

Set Of Books > Legal Entity > Operating Unit > Process Enabled Inventory Org(Also Known as
Warehouse) >Locations.

Practically We set up an company in OPM and attach to Operating Unit of Discrete for the
standard functionalities of Base Oracle Applications

That's how we not exactly start with company but only make an association Between the
Company of OPM to the OA

GMA - Oracle Process Manufacturing Systems


GMD - Oracle Process Manufacturing Product Development
GME - Oracle Process Manufacturing Process Execution
GMF - Oracle Process Manufacturing Financials
GMI - Oracle Process Manufacturing Inventory
GML - Oracle Process Manufacturing Logistics
GMP - Oracle Process Manufacturing Process Planning
Oracle Process Manufacturing Cost Management User's Guide

The Oracle Process Manufacturing Cost Management application is used by cost accountants to
capture and review the manufacturing costs incurred in their process manufacturing businesses. The
guide describes how to set up and use this application.

Oracle Process Manufacturing Process Execution User's Guide

The Oracle Process Manufacturing Process Execution application lets you track firm planned orders
and production batches from incoming materials through finished goods. Seamlessly integrated to
the Product Development application, Process Execution lets you convert firm planned orders to
single or multiple production xv batches, allocate ingredients, record actual ingredient usage, and
then complete and close production batches. Production inquiries and preformatted reports help
you optimize inventory costs while maintaining a high level of customer satisfaction with on-time
delivery of high quality products. The Oracle Process Manufacturing Process Execution User's Guide
presents overviews of the tasks and responsibilities for the Production Supervisor and the
Production Operator. It provides prerequisite setup in other applications, and details the windows,
features, and functionality of the application.

Oracle Process Manufacturing Product Development User's Guide

The Oracle Process Manufacturing Product Development application provides features to manage
formula, routing, recipe, and validity rule development within process manufacturing operations.
Use it to manage multiple laboratory organizations and support varying product lines throughout the
enterprise. Characterize and simulate the technical properties of ingredients and their effects on
formula performance and cost. Simulate and optimize formulations before beginning expensive
laboratory test batches. Product Development coordinates each development function to provide a
rapid, enterprise-wide implementation of new products in your plants. The guide describes how to
set up and use this application.

Oracle Process Manufacturing Quality Management User's Guide

The Oracle Process Manufacturing Quality Management application provides features to test
material sampled from inventory, production, or receipts from external suppliers. The application
lets you enter specifications and control their use throughout the enterprise. Customized workflows
and electronic recordkeeping automate plans for sampling, testing, and result processing. Compare
specifications to assist in regrading items, and match customer specifications. Aggregate test results
and print statistical assessments on quality certificates. Run stability testing with unrivaled ease.
Several preformatted reports and inquiries help manage quality testing and reporting. The guide
describes how to set up and use this application.

Regulatory Management User's Guide

Oracle Process Manufacturing Regulatory Management provides solutions for document


management that help meet the FDA 21 CFR Part 11 and other international regulatory compliance
requirements. Regulatory information management is facilitated by use of electronic signatures.
Manage hazard communications by collaborating with Oracle partners to dispatch safety documents,
attached printed documentation sets such as the MSDS to shipments, and set up workflows to
manage documentation revisions, approvals, and transmittals. The Oracle Process Manufacturing
Regulatory Management xvi User's Guide provides the information to set up and use the application.

Oracle Manufacturing Execution System for Process Manufacturing

Oracle Manufacturing Execution System (MES) for Process Manufacturing provides a seamless
integration to product development and process execution applications for rapid deployment and
tracking of procedures, work instruction tasks, and batch records. Set up and manage material
dispensing operations and produce electronic batch records interactively with full electronic
signature control, nonconformance management, and label printing routines. The Oracle
Manufacturing Execution System for Process Manufacturing User's Guide delivers the information to
set up and use the application.

Common questions

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OPM uses a Formula and Recipe to define the manufacturing process, releasing it as a batch, which allows for flexibility in units of measure and managing multiple products like co-products and byproducts. A Formula is equivalent to a BOM structure, where a Recipe defines the process and Validity Rules apply additional logic such as effective dates and quantity ranges. Discrete Manufacturing, in contrast, relies on BOM and Routing structures to define distinct items, assembling products like cars or computing devices. It involves more fixed UOM and handling of each item separately .

Oracle Process Manufacturing's multi-product batch production uses Formulas and Recipes with Validity Rules to manage multiple outputs from a single batch process. These elements allow for dynamic adjustments in input proportions based on changes in product specifications or demand fluctuations. Recipes can incorporate co-products or byproducts, ensuring flexibility and responsiveness in meeting diverse manufacturing requirements. This approach supports efficient resource utilization and rapid adaptation to shifts in demand or product customization needs, ensuring continual alignment with market and customer demands .

Oracle Process Manufacturing incorporates recipe management into its entire product lifecycle, from product development and recipe creation to cost and quality management, ensuring comprehensive control and optimization. This integration allows for product formulation to be tailored to customer specifications, manages variability in batch production, and facilitates continuous process improvement. The benefits include enhanced capacity optimization and variability management, delivering products that meet specific quality and regulatory standards efficiently .

Integrating Oracle MES with other process manufacturing applications like product development and process execution enhances operations by providing seamless coordination and rapid deployment of production activities. This integration facilitates tracking procedures, work instruction tasks, and batch records with full electronic signature control. It leads to improved management of material dispensing, interactive electronic batch records, and robust control over nonconformance and label printing. Consequently, it enhances operational efficiency, traceability, and compliance within production operations .

OPM Intelligence aggregates data across various modules such as Inventory, Quality, and Cost Management to provide actionable insights and real-time analytics. It contributes to decision-making by enabling managers to perform in-depth analyses of production trends, quality metrics, financial performance, and operational inefficiencies. By providing a holistic view of production and management data, it supports strategic planning, enhances operational efficiency, and allows for data-driven decisions that align with business objectives and industry demands .

Oracle's Quality Management application offers features such as material sampling from various sources like inventory and supplier receipts, entering and controlling enterprise-wide specifications, conducting stability testing, and generating quality certificates through statistical reports. Automated workflows enable efficient sampling, testing, and result processing. This enhances quality assurance by ensuring that products conform to specifications, enabling quick regrading, and matching customer needs, ultimately supporting consistent product excellence .

Oracle's Laboratory Management function supports product innovation by allowing for the development and testing of new formulas within controlled lab environments. It integrates with Product Development to manage the creation and simulation of formulas, ensuring that technical properties and cost implications are tested before large-scale production. Key elements include coordinating with Inventory Management for material usage and Quality Management for setting testing specifications, which combined facilitate efficient scaling from prototypes to full production .

Validity Rules in OPM are associated with Recipes and provide logical constraints that determine how and when particular formulas are used to produce batches. They define parameters such as the effective date ranges, minimum and maximum quantities, and preferences during ties. These rules are critical as they ensure that the correct formula is used under the right conditions, managing variability and optimizing resource usage efficiently, which is essential in process industries dealing with fluctuating inputs and outputs .

Oracle Process Manufacturing's Cost Management application allows cost accountants to capture, review, and manage the costs associated with their manufacturing processes. The significance lies in its ability to ensure accurate costing data to drive decision-making regarding production efficiency, resource allocation, and pricing strategies. This is achieved through tracking costs from raw materials to finished goods, optimizing inventory costs, and ultimately aiming at achieving customer satisfaction through consistent product quality and reliable delivery .

Electronic signatures in Oracle's Regulatory Management application facilitate compliance with regulatory standards like FDA 21 CFR Part 11 by ensuring that documentation processes are secure and verifiable. They are used in managing electronic records, emphasizing hazard communication, and collaborating with partners for safety document dispatch. By integrating electronic signatures, the application provides a robust framework for managing documentation revisions, approvals, and transmittals, thereby ensuring that all actions and changes are auditable and compliant with international standards .

Understanding the primary differences 
between OPM and Discrete processes





A friend asked me to explain the primary
Explain Process Manufacturing v/s Discrete manufacturing?
Discrete Manufacturing is the production of distinct items that use
2)      Select 
b.RECIPE_DESCRIPTION,a.RECIPE_VALIDITY_RULE_ID,c.INVENTORY_ITEM_ID,d.description,decode(c.
line_type,-1,’Ingr
Oracle Process Manufacturing Cost Management User's Guide 
The Oracle Process Manufacturing Cost Management application is us
manage documentation revisions, approvals, and transmittals. The Oracle Process Manufacturing 
Regulatory Management xvi User

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