Manufacturing and LCM with Oracle R12
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This document discusses Macsteel Service Centers USA's implementation of Oracle applications including Financials, Order Management, Inventory, and Landed Cost Management. Key points include: - Macsteel is a leading metals processor and distributor with over 30 locations in North America. - They implemented Oracle E-Business Suite Release 12 to replace a customized system and address needs like lot costing, landed cost management, and multi-unit of measure inventory. - The implementation included adopting best practices, integrating multiple legal entities and divisions, and future-proofing for international expansion.
Manufacturing and LCM with Oracle R12
- 1. T H E P A S S I O N R U NS D E E P Stuart Patsos, VP of IT Manufacturing and LCM with Oracle R12
- 2. Company Background Macsteel Service Centers USA is one of the leading metals processors and distributors in North America. March 1, Kloeckner Metals US. A division of Kloeckner & Co ¨C the largest mill-independent distributor of steel in the world ¡ñ 30+ locations throughout North America and Puerto Rico ¡ñ processes and distributes ? carbon ? aluminum ? stainless ? specialty metals ¡ñ Products include a full range of ? flat rolled ? pipe ? plate ? bar ? tubing ? structurals ¡ñ The company also supplies a full range of ? Coated ? steel building products ? prepainted metals 2 ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡± 2
- 3. Applications Footprint ? Version of EBS currently Implemented: 12.1.2 ? Oracle products implemented: ¨C Financials (GL, AP, AR, Advanced Collections) ¨C Order Management (including Configurator) ¨C OPM (Process Manufacturing) ¨C Discrete Manufacturing ¨C Inventory ¨C Procurement (including LCM ¨C Landed Cost Management) ¨C OTM (version 6.04) ¨C eBusiness Tax (with Vertex O series) ¨C OBIEE and OBIEA ? On Demand since Sept 20, 2010 ? Future implementation ¨C Warehouse Management ¨C EAM ¨C ASCP 3 ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±
- 4. Application Usage Scope of implementation Multiple legal entities, 8 Divisions, 30 branches US & Mexico Ledgers Hybrid of Process Manufacturing and Discrete Inv. Orgs. Future rollout to South Africa and Israel Service Centers Key Business Challenges Landed Cost Management Transportation Management Multiple units of measure Average Costing RM & FG Lot Costing process to order steel Management Reporting (OBIEE) ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±
- 5. Selection Process and OPM Selection Process Had a heavily customized Steel industry character system Dependent up few resources to support with no upgrades Reviewed Oracle, SAP and other industry specific packages Selected Oracle due to ability to meet MSCUSA needs Adopt a system based on best practices Well supported and easy to find resources Why Oracle OPM Multiple UOM¡¯s Ability to Lot cost products Had no predefined BOM¡¯s for our processes (Recipes and formulas instead) ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±
- 6. Why R12.1.2 Convergence of Inventory (OPM and Discrete) New Modules / Functionality Landed Cost Management Non-Conformance in OPM Sub-ledger Accounting IFRS ¨C for our international siblings ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±
- 7. Landed Cost Management Types of Charges Freight (Inbound and Supplier to Outside Processor) Fuel Vessel Material Surcharges Integration with Advanced Pricing Required to calculate charges in a different unit of measure All items have a dual unit of measure (i.e. Lbs and Pcs) Charges are in a 3rd unit of measure (i.e. Cwt) Example: 20,000 lb coil with material surcharge of $5 per Cwt Advanced Pricing calculates total charge of $1,000 ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±
- 8. Implementation Approach Strong Oracle Project Manager (must know Oracle) Engage an experienced Oracle team (must be business process savvy) Have properly documented requirements and map them to Standard Oracle Process Flows Gap analysis will determine the number and complexity of the extensions that were required Do not under any circumstances change Oracle or do any direct table writes. Only customizations are where Oracle does not have functionality ¨C can develop separate tables Develop fully integrated footprint of the entire solution Rollout by Geography - multiple branches at a time after the initial proofing ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±
- 9. Implementation Approach (cont.) Goal was to get the base system implemented first Phase II and III to do further process reengineering later Identified areas to reduce the number of steps due to the lean workforce e.g. Sales Entry Blanket Agreement and Quotes releases Quick Batch Transact Move Order for Shipping execution (reservations, prints documents, moves material to stages, allocates full lot) Reports development ¨C look to use OBIEE which provides multi use of reports than single use custom development ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±
- 10. Upgrade 12.1.1 to 12.1.2 Why upgrade it 12.1.2? Take advantage of continuing LCM enhancements Apply patches for fixes Regression testing Performed detailed regression testing Identified some OPM issues SR Process and fix Completed upgrade ¡°This presentation is for informational purposes only and may not be incorporated into a contract or agreement.¡±