AssembleToOrder ATO PickToOrder PTO Basics in Oracle Applications

1
Assemble-To-Order (ATO) / Pick-To-Order (PTO)
Basics in Oracle Applications

• Arne S. Rosen, CPIM, CIRM
• Senior Principal Consultant
• Summer 2003 NCOAUG Training Day
• Friday, August 15th
• Harper College, Palatine, IL

2
Agenda

• Definitions
• Setup
• Business Flow
• ATO Configuration
• ATO Item
• PTO Configuration
• PTO Item
• On-Hand ATO Configuration
• Preconfigured Items

3
Agenda (cont.)

• Configuration
• Costing
• Pricing
• Description
• Routings
• Weight and Volume
• Parameters
• Profiles
• 11.5.9
• References

4
Model (Model Item)

• An item whose bill of material lists option
  classes and options available when you place an
  order for the model item.
• APICS definition is a Super Bill of Material

5
Option Class

• A group of related option items. An option class
  is orderable only within a model. An option class
  can also contain included (standard) items.
• An Option Class is a list of choices

6
Option

• An optional item component in an option class or
  model bill of material.

7
AssembletoOrder (ATO)

• An environment where you open a final assembly
  order to assemble items that customers order.
• Assembletoorder is also an item attribute that
  you can apply to standard, model, and option
  class items.

8
AssembletoOrder (ATO) Model

• A configuration you make in response to a
  customer order that includes optional items.

9
AssembletoOrder (ATO) Item

• An item you make in response to a customer order.

10
PicktoOrder (PTO)

• A configuretoorder environment where the
  options and included items in a model appear on
  pick slips and order pickers gather the options
  when they ship the order.
• Alternative to manufacturing the parent item on a
  work order and then shipping it.
• Picktoorder is also an item attribute that you
  can apply to standard, model, and option class
  items.

11
PicktoOrder (PTO) Model

• An item with an associated bill of material with
  optional and included items.
• At order entry, the configurator is used to
  choose the optional items to include for the
  order.
• The order picker gets a detailed list of the
  chosen options and included items to gather as
  separately finished items just before the order
  is shipped.

12
PicktoOrder (PTO) Item (Kit)

• A predefined configuration order pickers gather
  as separately finished included items just before
  they ship the order. Also known as a kit.
• A kit is an item that has a standard list of
  components (or included items) you ship when you
  process an order for that item.
• A kit is similar to a picktoorder model because
  it has shippable components, but it has no
  options and you order it directly by its item
  number, not using the configuration selection
  screen.

13
Configured, ATO, PTO Items

• Configured items are Assemble to Order (ATO)
  items that were created from a model (have a base
  model).
• ATO items have the Assemble to Order attribute
  set to Yes.
• Pick to Order (PTO) items have the Pick Component
  attribute set to Yes.

14
Hybrids

• PicktoOrder models with optional
  AssembletoOrder items
• PicktoOrder model containing AssembletoOrder
  model
• MultiLevel AssembletoOrder Model (MultiLevel
  ATO Configuration)

15
BOM Item Type
16
Base Model
17
Assemble-to-Order
18
Pick Components (Pick-to-Order)
19
Ship Model Complete
20
Seeded Templates
21
ATO
22
PTO
23
Order Management Parameters Item Validation
Organization
24
Order Management Parameters Item Validation
Organization

• When you enter orders for models, kits, and
  assemblies in Oracle Order Management, you must
  define all bills of material in your OM Item
  Validation Organization
• Using common bills of material, you can share
  bills of material that exist in your
  manufacturing organizations with your item
  validation organization.

25
ATO Model Bill of Material
26
PTO Model Bill of Material
27
Four Implicit Configuration Rules

• Optional
• Mutually Exclusive
• Min / Max
• Quantity Cascade

28
Four Implicit Configuration Rules
29
Four Implicit Configuration Rules
30
Basis

• If the component is an option class item, you
  must indicate whether you want to override the
  default quantity for the option class when a
  sales order is entered (the default). Option
  class quantities affect the mandatory standard
  components assigned to the option class.
• If you select None for the Basis field, Oracle
  Order Management can override the default
  quantity for the option class. Order Management
  defaults the total quantity to release as the
  component quantity multiplied by the option class
  extended quantity.
• If you select Option class for the Basis field,
  Order Management cannot override the default
  quantity for the option class. Order Management
  calculates the total quantity to release as the
  component quantity multiplied by the option class
  extended quantity.

31
Shipping
32
ATO Configuration Business Flow
33
ATO Configuration Business Flow
34
ATO Configuration Business Flow
35
ATO Configuration Business Flow
36
ATO Configuration Business Flow
37
ATO Configuration Business Flow
38
ATO Configuration Business Flow
39
ATO Configuration Business Flow
40
ATO Configuration Business Flow
41
ATO Configuration Business Flow
42
ATO Configuration Business Flow
43
ATO Configuration Business Flow
44
ATO Configuration Business Flow
45
ATO Configuration Business Flow
46
AutoCreate Configuration Items
47
ATO Configuration Business Flow
48
ATO Configuration Business Flow
49
ATO Configuration Business Flow
50
ATO Configuration Business Flow
51
ATO Configuration Business Flow
52
ATO Configuration Business Flow
53
ATO Configuration Business Flow
54
ATO Configuration Business Flow
55
ATO Configuration Business Flow
56
ATO Configuration Business Flow
57
ATO Configuration Business Flow
58
ATO Configuration Business Flow
59
ATO Configuration Business Flow
60
ATO Configuration Business Flow
61
ATO Configuration Business Flow
62
ATO Configuration Business Flow
63
ATO Configuration Business Flow
64
ATO Configuration Business Flow
65
ATO Configuration Business Flow
66
ATO Configuration Pick Pack Ship
67
ATO Item Business Flow
68
ATO Item Business Flow
69
ATO Item Business Flow
70
ATO Item Business Flow
71
ATO Item Business Flow
72
ATO Item Business Flow
73
ATO Item Business Flow
74
ATO Item Business Flow
75
ATO Item Business Flow
76
ATO Item Pick Pack Ship
77
PTO Configuration Business Flow
78
PTO Configuration Business Flow
79
PTO Configuration Business Flow
80
PTO Configuration Business Flow
81
PTO Configuration Business Flow
82
PTO Configuration Business Flow
83
PTO Configuration Business Flow
84
PTO Configuration Business Flow
85
PTO Configuration Business Flow
86
PTO Configuration Business Flow
87
PTO Configuration Business Flow
88
PTO Configuration Business Flow
89
PTO Configuration Pick Pack Ship
90
PTO Item Business Flow
91
PTO Item Business Flow
92
PTO Item Business Flow
93
PTO Item Business Flow
94
PTO Item Pick Pack Ship
95
Pick Pack Ship Summary
96
On-Hand ATO Configuration Business Flow
97
On-Hand ATO Configuration Business Flow
98
On-Hand ATO Configuration Business Flow
99
On-Hand ATO Configuration Business Flow
100
On-Hand ATO Configuration Business Flow
101
On-Hand ATO Configuration Business Flow
102
On-Hand ATO Configuration Business Flow
103
On-Hand ATO Configuration Business Flow
104
On-Hand ATO Configuration Business Flow
105
On-Hand ATO Configuration Business Flow
106
Preconfigured Items
107
Preconfigured Items
108
Preconfigured Items
109
Preconfigured Items
110
Preconfigured Items
111
Preconfigured Items
112
Preconfigured Items
113
Preconfigured Items
114
Preconfigured Items
115
Preconfigured Items
116
Preconfigured Items
117
Preconfigured Items
118
Preconfigured Items
119
Preconfigured Items
120
Configuration Costing

• A cost rollup is performed for each new
  configuration to establish accurate standard
  costs that are posted to cost of goods sold.

121
Configuration Pricing

• Price is rolled up from all the items that blow
  back on the order.
• All items must be on the price list even if the
  price is zero

122
Configured (Item) Description

• A dynamically generated item description derived
  from the catalog descriptive elements of the
  configured bill of material components.

123
Configured Description Steps

• Create Configured Description Item Catalog Group
  for the ATO Model
• Assign Item Catalog Group to Option Class Items
• Define Bills Elements for the ATO Model and
  Option Class Items

124
Create Configured Description Item Catalog Group

• Decide what descriptive elements to include in
  the configured item description
• ATO Model and Option Class Descriptive Element
  Names must match
• Prefix and/or Suffix can be hard coded into the
  catalog
• Descriptive Element Names must be unique across
  Option Classes if they have different values

125
Create Configured Description Item Catalog Group
126
Create Configured Description Item Catalog Group
127
INV Use item catalog name in the item description

• No Use Item Catalog Group Description
• Yes Use Item Catalog Group Name

128
Assign Item Catalog Group to Option Class Items

• This should be the same Item Catalog Group
  Assigned to all the standard items in the Option
  Class

129
Define Bills Elements

• This needs to be done for the ATO Model and the
  Option Classes
• Only Pick the Descriptive Elements necessary to
  drive the Configured Item Description

130
Define Bills Elements
131
Define Bills Elements - Option Classes
132
Define Bills Elements - ATO Model
133
Configured Descriptions
134
Configured Descriptions
135
Configured Descriptions
136
Configured Routings
137
Configured Routings
138
Configured Routings
139
Configured Weight and Volume

• AutoCreate Configuration Items calculates the
  weight and volume for the configured item, by
  rolling up the weight and volume of the
  components in the OM validation organization.
• Multi-level configurations are supported
• If weight and volume units of measure are not the
  same unit of measure conversions are required

140
Configured Weight and Volume
141
Bills of Materials ParametersInactive Status
142
Deactivate Configuration Items
143
Bills of Materials Parameters Numbering Method
144
Bills of Materials Profile OptionsConfiguration
Item Delimiter
145
Bills of Materials Profile OptionsConfiguration
Item Type
146
Bills of Materials Profile OptionsInherit option
class operation sequence
147
Bills of Materials Profile OptionsMatch to
Existing Configurations
148
Bills of Materials Profile OptionsPerform Lead
time calculations
149
Bills of Materials Profile OptionsUse Custom
Match Function
150
Bills of Materials Profile OptionsAutomatic
Reservation
151
Bills of Materials Profile OptionsConfigurator
URL of UI Manager
152
Work in Process ParametersRespond to Sales Order
Changes
153
Whats new in 11.5.9

• Multi Level Auto Create Supply
• Supply to Order Workbench
• Enhanced Costing for Configurations
• Improved Configuration BOM structure

154
References

• Oracle Configure to Order Implementation Manual
• Oracle Bills of Material Users Guide
• Oracle Inventory Users Guide
• Oracle Order Management Users Guide
• Oracle Order Management Suite Implementation
  Manual
• Oracle Work in Process Users Guide

155
QUESTIONS ?

• Thank you for attending!
• Arne S. Rosen, CPIM, CIRM
• DARC Corporation
• 125 S. Wacker Drive, Suite 2550
• Chicago, IL 60606
• 312-338-6234
• arosen_at_darc.com