Oracle Work in Process Resources

A Resource can be a person, a machine, tools or services used in the production process. In Oracle EBS, Resources are defined not in Work in Process but in in Oracle Bills of Material (BOM).

Of Resources and Departments

Dwight has learned that in Oracle WIP, a plant or inventory organization is divided into Departments. Each Department houses its Resources. So, Resources are defined and then assigned to their respective Departments. A Resource may be shared by two or more Departments.

Dwight Begins Listing his Resources

Dwight is working on his whiteboard, trying to group his resources by Department. The Naperville Plant manufactures the Executive Office Chair using the following eight Resources:

  • UT-GRINDER or Universal Tool Grinder
  • CP-SAW or Computerized Panel Saw
  • PHS-ROUTER or Pneumatic High Speed Router
  • LBR-FAB or Labor for Fabrication
  • S-MOULDER or Spindle Moulder
  • HOC-PRESS or Hydraulically Operated Cold Press
  • LBR-ASSY or Labor for Assembly

At the Naperville Plant, these Resources are housed by two Departments – Fabrication and Assembly, as Dwight’s diagram above suggests.

Dwight Sets Up Resources

The man now proceeds to wet his hands with some real configuration in Oracle WIP. Let us see what he does in the demo below.

Demo: Setting Up Resources

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A new window opens to run the Demo.

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There's a green button that says Start Demo,
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Some Notes from the Demo

The Basis field determines the Resource Usage calculations. If the Resource incurs a cost based on the number of items produced, then it needs to be assigned a Basis type of Item. If however, a Resource incurs a cost that is independent of the number of items produced then the Resource is to be charged with Basis type of Lot. A Resource used to set up a machine would typically have a Basis type of Lot.

EBS WIP lingo: Charging a Resource implies that use of the Resource is incurring a cost (which will be charged to the job and will become part of the assembly cost upon final assembly completion).

Ways to Charge a Resource

There are four options in the Charge Type field.

  • WIP Move
  • Manual
  • PO Move
  • PO Receipt

WIP Move is used to charge a Resource automatically as it processes the job and moves it to the next operation.

Manual charging indicates that the Resource will be charged manually using the Resource Transactions screen.

PO Move and PO Receipt are used to charge Resources in an outside processing operation. We will deal with in the pages to come.

An Example of Resource Charging:
Calculation Time

A Universal Lathe machine performs turning operation on a job. A standard turning operation takes 12 minutes to complete a job on this machine. This is the Usage for the Resource. So, the Resource Usage is 0.2 HR (UOM for hours). The Resource Rate for the Lathe is $18/HR. If the Resource is run for a batch of 50 jobs (50 Each or 50 EA), the cost incurred will be the Resource Charge computed as follows
Resource Charge = Rate X Usage X Quantity
= $18/HR X (0.2 HR/EA) X 50 EA
= $180

For Resources with Basis type as Item and Charge Type of WIP Move, the Resource gets charged as and when each assembly/subassembly or unit completes that operation.

For Resources with Basis type as Lot and Charge Type of WIP Move, the Resource gets charged upon completion of the first assembly at the operation.

We will delve into these calculations shortly.

Next: Oracle Work in Process Departments

Previous: Office Smart Decides on Oracle Work in Process

Return to Oracle Work in Process (WIP) from Oracle Work in Process Resources

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