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

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

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Agenda (cont.)
Configuration Costing Pricing Description Routings Weight and Volume Parameters Profiles 11.5.9 References

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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

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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

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

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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.

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AssembletoOrder (ATO) Model

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

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AssembletoOrder (ATO) Item

An item you make in response to a customer order.

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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.

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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.

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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.

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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.

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

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BOM Item Type

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Base Model

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Assemble-to-Order

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Pick Components (Pick-to-Order)

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Ship Model Complete

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Seeded Templates

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ATO
Item Type BOM Item Type
Model

Base Model

Assemble to Order
Yes

Pick Components
No

ATO Model

ATO Option Class

Option Class

Yes

No

ATO Item

Standard

Yes

No

Configured Item

Standard

Base Model

Yes

No

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PTO
Item Type BOM Item Type
Model

Base Model

Assemble to Order
No

Pick Components
Yes

PTO Model

PTO Option Class

Option Class

No

Yes

PTO Item

Standard

No

Yes

Note: There is no configured item in the PTO process.

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Order Management Parameters: Item Validation Organization

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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.

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ATO Model Bill of Material

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PTO Model Bill of Material

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Four Implicit Configuration Rules

Optional
Mutually Exclusive Min / Max

Quantity Cascade

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Four Implicit Configuration Rules

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Four Implicit Configuration Rules

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Shipping

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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AutoCreate Configuration Items

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Pick Pack Ship

Pick Slip ATO ATO Configuration Item

Packing Slip ATO Item

Bill of Invoice Lading ATO Any Invoice Enabled item Item EXCEPT the ATO Item

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Pick Pack Ship

ATO Item

Pick Slip ATO Item

Packing Bill of Invoice Slip Lading ATO Item ATO Item ATO Item

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Pick Pack Ship

Pick Slip PTO Standard Configuration Items

Packing Slip Standard Items

Bill of Invoice Lading Standard Any Items Invoice Enabled item

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PTO Item Business Flow

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PTO Item Business Flow

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PTO Item Business Flow

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PTO Item Business Flow

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PTO Item Pick Pack Ship

PTO Item

Pick Slip Standard Items

Packing Slip Standard Items

Bill of Invoice Lading Standard PTO Items Item

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Pick Pack Ship Summary

Pick Slip ATO Configuration ATO Item PTO Configuration PTO Item ATO Item

Packing Slip ATO Item

Bill of Lading ATO Item

Invoice Any Invoice Enabled item EXCEPT the ATO Item ATO Item Any Invoice Enabled item PTO Item

ATO Item Standard Items Standard Items

ATO Item Standard Items Standard Items

ATO Item Standard Items Standard Items

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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

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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
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Configured (Item) Description

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

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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

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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

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Create Configured Description Item Catalog Group

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Create Configured Description Item Catalog Group

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INV: Use item catalog name in the item description

No : Use Item Catalog Group Description

Yes : Use Item Catalog Group Name

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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

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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

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Define Bills Elements

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Define Bills Elements - Option Classes

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Define Bills Elements - ATO Model

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Configured Descriptions

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Configured Descriptions

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Configured Descriptions

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Configured Routings

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Configured Routings

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Configured Routings

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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

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Configured Weight and Volume

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Bills of Materials Parameters Inactive Status

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Deactivate Configuration Items

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Bills of Materials Parameters Numbering Method

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Bills of Materials Profile Options Configuration Item Delimiter

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Bills of Materials Profile Options Configuration Item Type

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Bills of Materials Profile Options Inherit option class operation sequence #

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Bills of Materials Profile Options Match to Existing Configurations

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Bills of Materials Profile Options Perform Lead time calculations

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Bills of Materials Profile Options Use Custom Match Function

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Bills of Materials Profile Options Automatic Reservation

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Bills of Materials Profile Options Configurator URL of UI Manager

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Work in Process Parameters Respond to Sales Order Changes

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Whats new in 11.5.9

Multi Level Auto Create Supply
Supply to Order Workbench Enhanced Costing for Configurations

Improved Configuration BOM structure

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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

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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@darc.com

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