Oracle Manufacturing Lead Time Guide -2

Subject:  Oracle Manufacturing Lead Time Guide
  Doc ID:  Note:100127.1 Type:  WHITE PAPER
  Last Revision Date:  02-NOV-2007 Status:  PUBLISHED

3.  MANUFACTURING LEADTIME CALCULATIONS.

      a.  For items that you plan and cost with the same lot size, you specify
      a value only for the standard lot size.

      b.  For items that you plan with one lot size and cost with a different lot
      size, you can specify a value for the leadtime lot size.  BOM then
      calculates the manufacturing leadtime for the item using this value as
      opposed to the standard lot size. 

      c.  If one item's routing references a common routing, set either the lead-
      time lot size or standard lot size to the same value.

      d.  Primary routings are automatically updated with the leadtimes.

      e.  Offset percent is calculated for each resource on a routing operation
      as the percent of processing leadtime required from previous operations. 
      This is calculated from the start of the job to the start time of a resource
      at an operation. 

      f.  A value of zero is assigned to the fixed, variable and processing lead-
      time of a manufactured item that does not have a routing and is not
      assigned to a repetitive line.

      g.  Detailed scheduling is used to compute the fixed and variable lead-
      times.  BOM does not consider pre-processing when computing manufacturing
      leadtime.

4.  CUMULATIVE MANUFACTURING LEADTIME CALCULATIONS.

      a.  BOM computes cumulative manufacturing leadtimes and cumulative lead-
      time by stepping through the indented bill structure. 

      b.  BOM sets an item's cumulative manufacturing leadtime using the
      following:

              1)  Manufacturing leadtime for the item.
                                        +
              2)  Maximum [(cumulative mfg leadtime - offset days) for any
                      component in bill]

5.  CUMULATIVE TOTAL LEADTIME CALCULATIONS.

      a.  BOM computes cumulative manufacturing leadtimes and cumulative lead-
      time by stepping through the indented bill structure. 

      b.  BOM sets an item's cumulative total leadtime using the following:

              1)  Total leadtime for the item.
                              +
              2)  Maximum [(cumulative total leadtime - offset days) for any
                      component in bill]

6.  ASSIGNING LEADTIMES.

      Item                                              Manufactured      Purchased
      Attribute                                    Item                      Item
      ------------------------      ------------      ---------
      Pre-processing Leadtime        You enter            You enter
      Processing Leadtime                BOM/ENG                You enter
      Post-processing Leadtime      N/A                        You enter
      Cumulative Mfg Leadtime        BOM/ENG                N/A
      Cumulative Total Leadtime    BOM/ENG                N/A
      Leadtime Lot Size                    You enter            N/A

7.  HOW TO ...?

      a.  In order to set up a fixed leadtime for a resource that takes one
      hour to complete:

              1)  Navigate to Bill of Materials/Routings/Routings.
              2)  Query up a routing.
              3)  Put your cursor on the desired operation.
              4)  Click on the operation resources button. 
              5)  Enter the resource sequence and the name of the resource that will
                      do the work.
              6)  Make sure the Unit of Measure (UOM) that defaults is correct.  In
                      almost all cases, it should be hour (HR). 
              7)  Select Lot from the drop down menu for Basis.
              8)  Enter one (1) in the Inverse column under rate or amount.  You
                      have now told the system that you can do one lot per hour.

      b.  In the Operation Resource form, in the Scheduling alternate region,
      is a column called Offset Percent.  This is the calculated percent of the
      total manufacturing leadtime that is completed by all of the previous
      operations.  For example, if all of the operations in the routing takes a
      total of ten hours to complete, and the offset percent of a resource is 40%,
      then this resource is started 4 hours after the start of the first
      operation.
                 
      c.  It should be noted that when the calculate leadtime program is run, it
      will use the BOM revision that you have entered for the routing you have
      selected to calculate the leadtime.  Leadtimes are connected to the
      routing and not to the bill of materials.  When you run the leadtime roll
      up, it will use the revision of the bill of material that you have selected.
      This is because the leadtime roll up program uses the leadtimes of
      subassemblies for which the leadtime has been previously calculated.

8.  GLOSSARY OF LEADTIME DEFINITIONS.

      a.  FIXED LEADTIME is the portion of leadtime that is independent of
      order quantity.  This could be setups, teardown, batch processes or
      anything else that requires time to do a lot.  Fixed leadtimes for an item
      can be entered manually.
     
              1)  Navigation path: Inventory/Items/Organization Items.
              2)  Select the Leadtime alternate region for the item.
              3)  Enter the desired Fixed Leadtime and save the form. 
   
      Please note that a manually entered leadtime will be replaced by the
      leadtimes generated by the Manufacturing Leadtime rollup.

      b.  VARIABLE LEADTIME is the portion of leadtime that is dependent upon
      order quantity.  It is the required time to produce one additional unit of
      an assembly.  The formula the system uses is:

              [(End date - system date) - fixed leadtime] + leadtime lot size.

      Variable leadtimes for an item can be entered manually.

              1)  Navigation path: Inventory/Items/Organization Items.
              2)  Select the Leadtime alternate region for the item.
              3)  Enter the desired Variable Leadtime and save the form. 
 
      Please note that a manually entered leadtime will be replaced by the lead-
      times generated by the Manufacturing Leadtime rollup.  The variable lead-
      time is used in dynamic leadtime offsets.

      c.  PRE-PROCESSING LEADTIME is the time required to release a purchase
      order. It is used for Purchase orders, discrete jobs and repetitive lines.
      It can include the requisition processing and any approval cycles
      required.  It can also be used for the time necessary to create internal
      paperwork for a discrete job or repetitive line from the time you learn of
      the requirement.

      d.  PROCESSING LEADTIME is the time required to purchase or manufacture
      an item.  It is computed as the time required to complete 1 leadtime lot
      size of an item.  The formula for this includes the fixed and variable
      portions of leadtimes. 

              end date (for job 2) - system date                                 

      BOM determines an item's leadtime lot size from two item master fields:
      Standard Lot Size and Leadtime Lot Size.
   
      e.  POST-PROCESSING LEADTIME is the time it takes to receive, inspect
      and move a buy part to inventory.  You must physically enter
      post-processing leadtime for each purchased item.

      f.  CUMULATIVE MANUFACTURING LEADTIME is the time required to make an
      assembly if all raw materials are in stock.  This assumes that you must
      manufacture every assembly, level by level.  BOM automatically calculates
      this value. 

      g.  CUMULATIVE TOTAL LEADTIME is the time required to make an assembly if
      no raw materials are in stock.  This assumes that every raw material would
      either have to be ordered or manufactured.  BOM automatically calculates
      this value. 

      h.  TOTAL LEADTIME is the Fixed Leadtime + (Variable Leadtime * Order 
      Quantity).