Implementing Outside Processing Setup in Oracle Manufacturing Cloud

By Arun Polkampalli

Oracle Manufacturing Cloud delivers core discrete manufacturing capabilities in the cloud that allows to efficiently set up, manage, execute, and cost the production operations. It supports in-house and contract manufacturing of standard and configured products executed to plan or to order. It also supports scenarios where one or more operations of a work order are outsourced to a supplier who provides specialized manufacturing services. It complements other Oracle Supply Chain Management Cloud applications in providing a complete supply chain solution for discrete manufacturing.

Creation, Association, and Attribute selection for the OSP Item

OSP Service: Yes

Built-in WIP: No

Transaction Enabled: No

Setup for Plant Parameters –

Work Order Release: If the Purchase Requisition Trigger plant parameter is set to Work order release, then purchase requisitions are created for the work order quantity for all the supplier operations of the work order.

Prior Operation Completion: If the Purchase Requisition Trigger plant parameter is set to Prior operation completion, then a request is automatically sent to Supply Chain Orchestration to create a purchase requisition only when the previous operation completed.

Please refer below the plant parameter screen:

Note: – Here we are selected at ‘Prior operation completion’ Level.

Work definition Creation: –

Create Work Definition with 3 operations: –

10 In-house, 20 supplier, and 30 In-house

(N): Work definition-> Manage Work definitions

Give the Items and Resource details for operation10 and 30

Operation 20 Indicates that it is Supplier Operation.
Refer below screen for Reference.

Now create work order against work definition: –

(N): – Work Execution->Manage Work orders

By default, a work order will create Unreleased status.

A work order is allowed to be updated to Unreleased status from Released status or On Hold status (when Released date is populated).

Create an Outside Processing Purchase Order in Oracle Fusion Purchasing Service using the details maintained in the Outside Processing Blanket Agreement. (If you select Prior operation completion setup at plant parameter level)

Otherwise, once a work order is released, a request is sent to Oracle Fusion Orchestration Service to create a Purchase Requisition. Oracle Fusion Orchestration Service, in turn, creates a Supply Order and triggers the creation of a Purchase Requisition in Self-Service Procurement.

Create Agreement:

(N): Procurement->PURCHASE AGREEMENT-> Create Agreement.

The agreement is created successfully

Now go to manufacturing Review Dispatch List UI and complete operation 10

Check the Operation 20 status, By MSOD(Manage Supplier Operation details)

Here we can find PO Requested Quantity and Approved Quantity.

Search the PO number by giving work order details

Please refer below the screen for the same.

PO, Shipment and Receiving process completed.

The receipt, delivery and operation transactions result in receipt and cost accounting in Oracle Cost Management Cloud.

Operation 10 and operation 20 completed.

and complete the Operation 30 by Review Dispatch List UI.

And check the transaction details in Review production transaction History UI.


About the Author

Arun Polkampalli is working with Trinamix Inc as Functional Consultant with rich experience in SCM Functional Modules.
and area of expertise are Purchasing, Inventory, Order Management. and Exposure on oracle cloud manfacturing.


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