Configure Bills of Material, Work Centers, and Routings for Oracle Manufacturing.
The Bill of Materials (BOM) and Routing form the foundation of manufacturing in Oracle. The BOM defines WHAT materials are needed to build a product (like a recipe\'s ingredients). The Routing defines HOW to build it (the step-by-step instructions, machines, and labor required).
The finished assembly and all raw material components must exist in the Item Master with the "BOM Allowed" flag checked.
The Inventory Organization must have WIP parameters configured to allow manufacturing transactions.
Manufacturing Engineer
Manufacturing Engineer
Manufacturing Engineer
Manufacturing Engineer
Cost Accountant
Actor: Manufacturing Engineer | Module: Bills of Material (BOM)
Resources are the labor, machine time, or outside services used during manufacturing. You must define these along with their standard cost rates.
Example: Define a Resource "Assembly_Tech". Set the type to "Person" and the standard cost rate to $25/hour.
Navigation Path:
Manufacturing > Manage Resources
Key Actions:
Define the resource and assign it to a resource class.
Actor: Manufacturing Engineer | Module: Bills of Material (BOM)
A Department is a specific area or work center on the shop floor where operations are performed. Resources are assigned to Departments.
Example: Create a Department called "Final Assembly". Assign the "Assembly_Tech" resource to this department.
Navigation Path:
Manufacturing > Manage Work Centers
Key Actions:
Work Centers in Fusion act similarly to Departments in R12.
Actor: Manufacturing Engineer | Module: Bills of Material (BOM)
A Routing defines the step-by-step sequence of operations required to manufacture the item. Each operation points to a Department and consumes specific Resources.
Example: Create Routing for "Laptop-X1". Op 10: Assembly (in Final Assembly Dept, uses 1 hr Tech labor). Op 20: Testing (in QA Dept, uses 0.5 hr Machine time).
Navigation Path:
Manufacturing > Manage Work Definitions
Key Actions:
In Fusion, BOM and Routing are combined into a single entity called a "Work Definition".
Actor: Manufacturing Engineer | Module: Bills of Material (BOM)
The BOM lists all the component items required to build the finished assembly. You must specify the exact quantity of each component needed to build exactly ONE unit of the assembly.
Example: Create BOM for "Laptop-X1". Components: 1x Motherboard, 1x Screen, 8x Screws, 1x Battery.
Navigation Path:
Product Management > Manage Item Structures
Key Actions:
In Fusion, this is called an Item Structure, but you link components to operations inside the Work Definition.
Actor: Cost Accountant | Module: Cost Management
Once the BOM and Routing are created, the system must calculate the "Standard Cost" of the finished good. It does this by rolling up the costs of all components on the BOM, plus the labor/machine costs on the Routing.
Example: Run the "Cost Rollup" program. The system calculates: (Material Cost: $300) + (Labor Cost: $50) = Total Standard Cost: $350 for the Laptop.
Navigation Path:
Costing > Manage Cost Scenarios > Roll up Costs
Key Actions:
Publish the cost scenario to update the standard cost.
See how the BOM and Routing are actually executed on the shop floor.
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