Laura L. MillerMay 2002

Using Oracle Project Manufacturing Without Oracle Projects

Project Manufacturing supports Seiban manufacturing. Seiban manufacturing is amethod of manufacturing developed by the Japanese. The word Seiban comesfrom the Japanese words “Sei” which means manufacturing and “ban” which meansnumber. A Seiban number is assigned to all items, materials, and purchase ordersassociated with a particular project. This can be utilized when using ProjectManufacturing without Oracle Projects being installed.

The Seiban Number Wizard defines Project Numbers used by ProjectManufacturing when Oracle Projects is not installed. With this option, task levelcontrol is not supported and neither is cost collection to Oracle Projects. This optioncan be used in organizations that utilize standard or weighted average costing. Ifusing Weighted Average Costing, the cost of the item is tracked by item and by costgroup for all manufacturing costs associated with the Project (Seiban) Number.

The features in Project Manufacturing that can be used without Oracle Projectsinstalled include the following:

Project DefinitionProject numbers are defined in Project Manufacturing not in Projects. Since

no Work Breakdown Structure (WBS) can be established without Projects installed,no tasks can be associated with the Project Numbers. Also, if the organization isusing Weighted Average Costing, the Project Number needs to be associated to acost group and also a WIP Accounting class.

Project DemandProject Manufacturing allows demand to be entered into the system using a

Project Number. This demand comes from a forecast, sales order or MasterDemand/Master Production Schedule. This will cause the system to perform theplanning, execution and costing for the demand.

Project PlanningProject Manufacturing can execute the planning cycle for one organization or

an entire supply chain. Project and common items are planned together in a cycle.In planning, the features of hard and soft pegging, group netting, online supply anddemand simulations and Project exceptions can be used. The Project exceptions, horizontal plan, supply and demand, and releasedplanned orders can all be viewed using the Planner’s Workbench

Project Supply/ExecutionProject Manufacturing supports all planned orders that are a result of the

planning cycle. These include WIP jobs, Flow schedules, purchaserequisitions/blanket releases and internal orders.

Project ProcurementThe project references (no task references allowed) are supported in all

procurement entities except for Expense destinations. Also, commitments for aproject cannot be viewed, as this feature is functional only within the Oracle Projectsmodule.

Project Work in ProcessWIP jobs, both standard and non-standard, are supported in Project

Manufacturing. Outside Processing functionality can use the Project Number as thereference. The Project Number can also be linked to a flow schedule (workorder-less).

Project InventoryProject Number can track inventory. Miscellaneous transactions can also be

performed using the Project Number in Project Manufacturing.

Project QualityQuality information can be tracked in Project Manufacturing using the Project

Number. The Data Collection can be analyzed. Quality specifications can beestablished. These specifications are also based on the Project Number.

Project CostingIf the organization is using Weighted Average Costing, then cost groups

must be associated to each project. These cost groups will hold the costdistributions that occur during the manufacturing process. The costs are tracked byitem in each cost group.

If the organization is using standard costing, the manufacturing cost will betracked at the item level. No cost groups are associated and used for costs. Thisfunctionality changes in Oracle Applications Release 11.5.7 as standard costing inProject Manufacturing environments will utilize cost groups.

Project Analyst and ControlThe Project Manufacturing Web Workbench can be used to analyze

manufacturing information. Other reports that can be used for analysis are theInventory Valuation and WIP Valuation reports.

The Project Expenditure Inquiry and the Project Status Inquiry are notavailable for analysis, as they are part of Oracle Projects.

Project BillingFor Project Manufacturing without Projects involved, the billing activities are

pushed into Receivables through the Order Management module. The ReceivableInterface process is used to pass the sales order line information to Receivables.The billing process then is completed in Receivables using standard procedures.

Project Revenue RecognitionRevenue is recognized in the Receivable module. Information is transferred

from Order Management into Receivables using the AutoInvoice Import process.Invoices, debit memos and credit memos are also transferred into Receivables forrecognition. The Revenue Recognition is then run to generate the records inReceivables.

Basic Setup Steps:

1. Setup the organization (in the Human Resources module)2. Setup the organization hierarchy (in the Human Resources module)3. Setup Inventory organization parameters (in Inventory module)4. Setup Departments in manufacturing (in Bill of Material module)5. Setup Project Parameters (in Project Manufacturing module)6. Verify Project Control level in Organization Parameters is set to Project7. Verify Project Cost Collection in organization parameters is DISABLED.

This is because no costs can be transferred to Projects (since it is notinstalled and/or being used)

8. Verify Project Numbers are defined in the Define Seiban Number form (inProject Manufacturing module)

Reference Material and more information:Oracle Project Manufacturing Implementation Manual Release 11i