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Introduction to Business Processes

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1 Introduction to Business Processes
in Oracle Applications © 2010 Wipro Ltd – Internal & Restricted

2 Objectives Understanding Business Processes
Getting started with Oracle Applications

3 Agenda Supply Chain Management Customer relationship Management
Supply Chain Management - Processes Supply Chain Management - Entities Supply Chain Management - Cycles Overview Oracle Solution for SCM Cycles Customer relationship Management Financials Getting Started with oracle Applications Modelling Enterprise in Oracle Applications The complexity of the course will determine the extend of chunking.

4 Oracle E-Business Suite
Business Intelligence Marketing eBusiness Platform Common Application Architecture & Schema Sales Service Strategic Enterprise Management Supply Chain Internet Procurement Financials Human resources Projects Travel Management

5 Supply Chain Management (SCM)

6 What is Supply Chain Management?
A supply chain is a network of supplier, manufacturing, assembly, distribution, and logistics facilities that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these products to customers. Supply chain management (SCM) is a systematic approach to manage the entire flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer. Supply Chain Management is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer. SCM has three primary goals: Reduce inventory, increase the transaction speed by exchanging data in real-time, and increase sales by implementing customer requirements more efficiently.

7 Supply Chain Management Processes
Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products. Developing new products is the starting point of a supply-chain cycle where Product specifications are created. Supply Chain Management Processes Overview Marketing and Sales generates demand for the Product by publicizing its features and how it would address customer priorities. In the process, Marketing also gets customer feedback and communicates to Product development group. Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments. Develop Service & Maintain Market Fulfill Plan Supply Chain Management Processes Overview Planning is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service. Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery. Manufacture Sell & Manage Orders Procure Develop : Developing new products is the starting point of a supply-chain cycle where Product specifications are created. Market : Marketing and Sales generates demand for the Product by publicizing its features and how it would address customer priorities. In the process, Marketing also gets customer feedback and communicates to Product development group. Plan : Planning is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service. Sell & Manage Orders : Maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit. Procure : Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. Manufacture : Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery. Fulfill : Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments. Services & Maintain : Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products. Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. Maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit.

8 Supply Chain Management - Entities
A supply chain is a network of suppliers, manufacturing, warehouse, distribution, and logistics facilities including the customers. Supplier Supply Chain Management Entities Overview Manufacturer Customer Product flow happens in a supply chain from supplier to manufacturer to distributor to retailer to customer where as cash & information flow happens in the reverse direction. Production Facility Retailer Distributor

9 Oracle Supply Chain Management Solutions
• Oracle Product Lifecycle Management . Oracle Advanced product Catalog • Telesales • Trade Management • Incentive Compensation • Order Capture • Partners Online • Depot Repair • Field Service • Install Base • Service Contracts • Service Fulfillment Manager • Spares Management Supply Chain Management Processes Overview Develop Service & Maintain Market • Release Management • Shipping Execution • Inventory Management WMS • Transportation Execution • Advanced Supply Chain Planning • Global Order Promising Fulfill Plan Oracle Supply Chain Management Solutions Manufacture Sell & Manage Orders • Cost Management • Configure to Order • Process Manufacturing • Project Manufacturing • Quality • Work in Process Procure • Order management Advanced Pricing • Configurator • iStore • Purchasing • iProcurement

10 Order & Product Flow Order Management Channel A Channel B Customer
Products Order Management Orders Channel A Orders Channel B Customer Orders Orders Channel C Manufacturing Products Product Distribution Products Products Production Plans Parts Demand Forecast Part Supply Supply Planning Demand Planning Component Requirement

11 A Typical Supply Chain: IBM Europe PC
Suppliers (International) 1.2 Million PC/Yr. Glasgow U.K. Warehouse Port PC Assembly Plant 13 Transshipment Points (TPs) in Europe Country-wide Distribution Centers (DCs) Retailers

12 Supply Chain Management Cycles Overview
Procure to Pay Supplier sends required material Supplier Manufacturer requests RM and Std parts Customer Places Order Manufacturer Ships Goods Manufacturer Order to Cash Customer Supply Chain Management Cycles Overview Plan to Make Distributor maintains Stock & orders at times Shop floor executes job order Manufacturer ships goods Mfr Plans and releases Job Odrer Retailer Places Order Retailer Distributor replenishes Stock Production Facility Distributor Replenishment

13 Oracle Solutions for Order to Cash Cycle O2C Cycle Oracle Oracle
Check Availability, Schedule Order Enter Order/Line details Review Order Price& Adjustments Pick Release the Order Confirm Ship Book the Oracle Order Management Oracle Advanced pricing Oracle Global ATP Oracle Shipping Execution Oracle Transportation Management Oracle Solutions for Order to Cash Cycle Oracle Mobile Supply Chain Application Oracle Order Management Oracle Shipping Execution Oracle WMS Oracle INV

14 Oracle Solutions for Procure to Pay Cycle P2P Cycle Oracle Oracle
iProcurement Oracle Purchasing Oracle Purchasing Create Quotation (Optional) Create Requisition Create RFQ Create Purchase Order Receive Inspect & Deliver Oracle INV Oracle Purchasing Oracle WMS Oracle Solutions for Procure to Pay Cycle Oracle Mobile Supply Chain Application Oracle INV Oracle Purchasing

15 Oracle Solutions for Plan to Make Cycle P2M Cycle Oracle ASCP Oracle
Issue Components for the Assembly Do Forecast and setup ASCP Plan Parameters Analyze Plan Output and Release Work order Process and Move Assembly thru’ all processing steps Complete and Issue Assy to FGI Launch ASCP Plan Oracle ASCP Oracle ASCP Oracle ASCP Oracle Demand Planner Oracle Solutions for Plan to Make Cycle Oracle WMS Oracle WIP Oracle INV Oracle INV Oracle OSFM Oracle WIP

16 Customer relationship management (CRM)

17 Customer relationship management (CRM)
Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information. Oracle’s CRM Suite of Applications try to cater to the mantra of Information-Driven CRM by addressing various needs of Organizations. It is designed to help organizations. Align marketing, sales and service to overall corporate objectives Drive profit through selling and service effectiveness Maximize collaboration across all customer-facing channels; direct, partner, service and ecommerce The broad module level divisions offered in Oracle CRM Suite are Oracle Marketing and Sales Oracle Customer Service Oracle Channel Management Daily Business Intelligence for CRM

18 Financials

19 Financial Modules Oracle Financial comprises of the following main Finance Modules General Ledger Accounts Payable Accounts Receivables Fixed Assets Cash Management

20 Oracle Financials Suite
Inventory Purchasing Payables Cash Mgt Receivables Assets General Ledger Order

21 Financial Modules-Overview
Oracle General Ledger (GL): The central repository of all financial transactions. At the heart of any accounting system. A tool, for integrating sub-ledger activity, consolidating group-wide accounts and releasing statutory/analytical financial reports. Accounts Payable (AP) Payables, an expenditure management tool, used to streamline the procure-to-pay process Payable used to Manage Suppliers, Manage Disbursements & Manage Payments Saves money by enforcing various payment policies Effective integration with Cash Management, Purchasing, General Ledger, Assets & Projects Accounts Receivables (AR) An invoicing and collections management application, used to streamlines order-to cash process Receivables manages invoicing, tax calculation, receipt application, collections, and revenue recognition, Effective Integration with Cash Management, Order Management, General Ledger & Projects

22 Financial Modules-Overview (Contd.).
Cash Management (CM) CM helps one to effectively manage and control cash cycle of the enterprise in order to ensure liquidity and improve profitability. Tool used to Manage the Cash Forecasting and reconciling the bank transactions from Receivables, Payables and General Ledger with the Bank Statements. Fixed Assets (FA) Asset management encompasses three primary activities: Physical Upkeep: Comprises asset location, asset condition and assignment Asset Tracking: Covers the whole gamut from controlling leased, loaned and consigned items from acquisition to asset maintenance. Financial: Involves asset value, depreciation and taxation. To maintain and calculate the depreciation to the Assets Integrates with Purchasing, Payables , General Ledger & Projects

23 Getting Started with Oracle Applications

24 Enterprise Modeling Business Group: represents the highest level in the organization structure. It secures human resources information, eg. when you request a list of employees, you see all employees assigned to the business group of which your organization is a part.

25 Enterprise Modeling Ledger: A financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calendar. Oracle General Ledger secures transaction information (such as journal entries and balances) by set of books. Legal Entity: is a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization. Balancing Entity: This is a segment in the Accounting Flexfield structure (usually Company segment) at which all accounting entries must balance. Each legal entity can have one or more balancing entities. You can use Flexfield Value Security rules to restrict data entry of balancing segment values by legal entity or operating unit

26 Enterprise Modeling (Contd.).
Operating Unit: is associated with a legal entity. Information is secured by operating unit for applications viz: Order Management, Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle Receivables and Oracle Cash Management. To run any of these applications, you choose a responsibility associated with an operating unit. Inventory Organization: is an organization for which you track inventory transactions and balances, manufactures or distributes products viz: manufacturing plants, warehouses, distribution centers, and sales offices. The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, MRP and receiving functions.

27 Enterprise Modeling (Contd.).
Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods or defective material. All material within an organization is held in Subinventories. A stock locator can be of Storage locator, Dock door or Staging lane type. Staging lane is used for staging after pick releasing, Storage locators store material. During load process material is transferred from staging lane to Dock door.

28 Maintain Organizations
All types of organizations can be defined using the Define Organization Choose a location where this organization exists. Enter what type(s) of organization is this, in organization classification viz. GRE/Legal Entity: Enter Legal Entity Accounting info like Ledger, Location. Operating Unit: Enter Operating Unit Information like Legal context, Ledger. Inventory Organization: Enter its Accounting Information like Ledger, Legal context & Operating Unit.

29 Organizations Technical Architecture
All organizations are maintained in HR_ALL_ORGANIZATION_UNITS table and organization classifications like Legal entity or operating unit information are stored in HR_ORGANIZATION_INFORMATION table. There are 3 views provided based on these 2 tables to easily find out the Legal entity, Operating unit and Inventory organization viz: HR_LEGAL_ENTITIES, HR_OPERATING_UNITS, ORG_ORGANIZATION_DEFINITIONS. ORGANIZATION_ID NAME BUSINESS_GROUP_ID LOCATION_ID DATE_FROM INTERNAL_EXTERNAL_FLAG INTERNAL_ADDRESS_LINE TYPE HR_ALL_ORGANIZATION_UNITS ORG_INFORMATION_ID ORG_INFORMATION_CONTEXT ORGANIZATION_ID ORG_INFORMATION1 ~ 20 HR_ORGANIZATION_INFORMATION Organization_id in HR_LEGAL_ENTITIES is referred as legal_entity_id in HR_OPERATING_UNITS legal_entity in ORG_ORGANIZATION_DEFINITIONS Organization_id in HR_OPERATING_UNITS is referred as operating_unit in ORG_ORGANIZATION_DEFINITIONS HR_LEGAL_ENTITIES BUSINESS_GROUP_ID ORGANIZATION_ID NAME DATE_FROM DATE_TO SET_OF_BOOKS_ID VAT_REGISTRATION_NUMBER ORGANIZATION_ID BUSINESS_GROUP_ID USER_DEFINITION_ENABLE_DATE DISABLE_DATE ORGANIZATION_CODE ORGANIZATION_NAME SET_OF_BOOKS_ID CHART_OF_ACCOUNTS_ID INVENTORY_ENABLED_FLAG OPERATING_UNIT LEGAL_ENTITY ORG_ORGANIZATION_DEFINITIONS HR_OPERATING_UNITS BUSINESS_GROUP_ID ORGANIZATION_ID NAME DATE_FROM DATE_TO LEGAL_ENTITY_ID SET_OF_BOOKS_ID

30 Location Addresses Define Location name(code) and addresses for the locations you use within your enterprise. These are used for a variety of functions viz: receiving, shipping and billing Enter address style and address for the location. Enter ship to location code and other site use info. Associate the location code with an inv organization. HR_LOCATIONS_ALL LOCATION_ID ENTERED_BY LOCATION_CODE ADDRESS_LINE_1 ADDRESS_LINE_2 ADDRESS_LINE_3 BILL_TO_SITE_FLAG COUNTRY DESCRIPTION DESIGNATED_RECEIVER_ID IN_ORGANIZATION_FLAG INACTIVE_DATE INVENTORY_ORGANIZATION_ID OFFICE_SITE_FLAG POSTAL_CODE

31 Subinventories Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods or defective material. All material within an organization is held in Subinventories. MTL_SECONDARY_INVENTORIES SECONDARY_INVENTORY_NAME ORGANIZATION_ID DESCRIPTION DISABLE_DATE INVENTORY_ATP_CODE AVAILABILITY_TYPE RESERVABLE_TYPE LOCATOR_TYPE PICKING_ORDER MATERIAL_ACCOUNT MATERIAL_OVERHEAD_ACCOUNT RESOURCE_ACCOUNT OVERHEAD_ACCOUNT OUTSIDE_PROCESSING_ACCOUNT QUANTITY_TRACKED ASSET_INVENTORY SOURCE_TYPE SOURCE_SUBINVENTORY PREPROCESSING_LEAD_TIME PROCESSING_LEAD_TIME STATUS_ID

32 Item Locators MTL_ITEM_LOCATIONS A stock locator can be of Storage locator, Dock door or Staging lane type. Staging lane is used for staging after pick releasing, Storage locators store material. During load process material is transferred from staging lane to Dock door. INVENTORY_LOCATION_ID ORGANIZATION_ID DESCRIPTION DISABLE_DATE INVENTORY_LOCATION_TYPE PICKING_ORDER PHYSICAL_LOCATION_CODE LOCATION_MAXIMUM_UNITS SUBINVENTORY_CODE LOCATION_WEIGHT_UOM_CODE MAX_WEIGHT VOLUME_UOM_CODE MAX_CUBIC_AREA X_COORDINATE Y_COORDINATE Z_COORDINATE INVENTORY_ACCOUNT_ID SUMMARY_FLAG ENABLED_FLAG START_DATE_ACTIVE END_DATE_ACTIVE PHYSICAL_LOCATION_ID PICK_UOM_CODE DIMENSION_UOM_CODE LENGTH WIDTH HEIGHT LOCATOR_STATUS STATUS_ID CURRENT_CUBIC_AREA AVAILABLE_CUBIC_AREA CURRENT_WEIGHT AVAILABLE_WEIGHT

33 Item Subinventories You can assign items to a given subinventory such that the items are restricted to that subinventory. Thus, you can always issue and receive unrestricted items to any subinventory, but you can only issue and receive restricted items to their list of subinventories. You activate the list of subinventories for a restricted item by setting the Restrict Subinventories attribute when defining or updating item. MTL_ITEM_SUB_INVENTORIES INVENTORY_ITEM_ID ORGANIZATION_ID SECONDARY_INVENTORY PRIMARY_SUBINVENTORY_FLAG PICKING_ORDER MIN_MINMAX_QUANTITY MAX_MINMAX_QUANTITY INVENTORY_PLANNING_CODE FIXED_LOT_MULTIPLE MINIMUM_ORDER_QUANTITY MAXIMUM_ORDER_QUANTITY SOURCE_TYPE

34 MOAC (Multi org access control)
Multiple Organizations provide security profiles which enable users to access, process, and report data in multiple operating units from a single responsibility. • In Security Profile form, assign multiple operating units to a security profile.

35 MOAC (Multi org access control)
You must set either the MO: Operating Unit or MO: Security Profile option for each application responsibility to use Multiple Organizations context sensitive applications. When you connect to the Oracle Applications, you sign on by entering your user name and password. Then, you choose a responsibility that is available to your user. After you choose your responsibility, there is an initialization routine that reads the values for only the information for those operating units that are assigned to your responsibility. If you set the MO: Security Profile profile option, you can also set an operating unit as the default operating unit using the MO: Default Operating Unit profile option. This is useful when you transact in multiple operating unit but frequently transact in one operating unit.

36 Set your SQL session context for multiple OU‟s with the following:
You can set your SQL session context for a single OU with the following: BEGIN Mo_global.set_policy_context('S',103); END; •The „S‟ means Single Org Context •2 is the ORG_ID Set your SQL session context for multiple OU‟s with the following: execute mo_global.set_org_access(NULL,64,‘ONT'); •64 is the Security Profile you want to use •ONT is the application associated with the responsibility you will be using The following SQL will dump out the Security Profiles and Operating Unit Names assigned to them select psp.SECURITY_PROFILE_NAME, psp.SECURITY_PROFILE_ID, hou.NAME, hou.ORGANIZATION_ID from PER_SECURITY_PROFILES psp, PER_SECURITY_ORGANIZATIONS pso, HR_OPERATING_UNITS hou where pso.SECURITY_PROFILE_ID = psp.SECURITY_PROFILE_ID and pso.ORGANIZATION_ID = hou.ORGANIZATION_ID;

37 References Supply chain Management - Strategy, Design and Operations by Sunil Chopra , Peter Meindl

38 Thank You


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