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Oracle Advisor Webcast
Understanding Lead Times
in Oracle Work In Process
Kranthi Vajrala, Senior Software Engineer
March 25, 2015
Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Objectives
Defining Lead Times
Set Up Required for Lead Times
Test Case to Show Lead Time
Impact of Lead Time in WIP
Lead Time parameters
Calculation of Lead Time

Agenda
1 Defining Lead Time in terms of Oracle Applications
2 Various Types of Lead Times
3 Demonstration and Test Cases
4 Parameters effecting Lead Times
5 References
6 Questions and Answers

Definition
Raw Work in Finished
Materials Progress Goods
Machine
Group
Transport Stores Inspect
•Operating Times
•Non-operating Times

Types of Lead Times
 Preprocessing Lead Time: A component of total lead time that represents the time
required to release a purchase order or create a job from the time you learn of the
requirement. You can manually enter preprocessing lead time for both manufactured
and purchased items.
 Processing Lead Time: The time required to procure or manufacture an item. You can
compute processing lead time for a manufactured item, or manually assign a value.
Processing lead time is computed as the time as total integer days required to
manufacture 1 lead time lot size of an item. You must manually assign a processing lead
time for purchased items. Processing lead time does not include preprocessing and
postprocessing lead times.

Types of Lead Times
 Planned order lead time (Lead Time Offset)= Fixed Lead Time + (order quantity *
Variable Lead Time) It is the time that the shop floor needs to produce the order.
 Postprocessing Lead Time: A component of total lead time that represents the time
to make a purchased item available in inventory from the time you receive it. Manually
enter postprocessing lead time for each purchased item. Postprocessing lead time for
manufactured items is not recognized.

Types of Lead Time

Types of Lead Times
• Lead Time Lot Size: The quantity you use to calculate manufacturing lead
times. You can specify an item's lead time lot size to be different from the
standard lot size.
• Cumulative Manufacturing Lead Time: The total time required to make an
item if you had all raw materials in stock but had to make all subassemblies
level by level. Oracle Bills of Material automatically calculates this value, or
you can manually assign a value.

Types of Lead Times
Cumulative Total Lead Time: is the total time required to make an item if no inventory
exists and you have to order all the raw materials and make all subassemblies level by
level. This value is then populated into the Processing lead time field in
the item definition form.
For buy items:

Cumulative Total Lead Time = Preprocessing Lead time + Processing Lead Time +
Postprocessing Lead Time
For make items:

Cumulative Total Lead Time = Cumulative Manufacturing Lead Time
+ the maximum of the Cumulative Total Lead Time of the
previous (lower) level components

Types of Lead Time
Cumulative Total Lead Time

Navigation Steps
There are 2 programs to calculate the lead times
Program 1
Cumulative Lead Times for Report Set GUI ( Bills -> Routings -> Query any routing -> Tools -> Rollup Lead Times)
Short Name :: BMCCLTSG
Rollup Cumulative Lead Times GUI ( Bills -> Routings -> Lead Times )
Short Name :: BMCCLTG
Program 2
Calculate Manufacturing Lead Times GUI ( Bills -> Routings -> Lead Times )
Short Name :: BMCRLTG
Manufacturing Lead Time GUI ( Bills -> Routings -> Query any routing -> Tools -> Compute Lead Times)
Short Name :: BMCRLTSG

Demonstration

CREATING A SETUP
To recreate a scenario, we need to establish a basic setup on which we build our
foundation for the test cases. The foundation include:
Creating Items
Creating Bills of Material
Creating Resources
Creating Departments
Creating Routings

Creating Items

Creating Items

Creating Items

Creating Items

Creating Bills of Material: Bills of Materials>Bills>Bills

Creating Resources
Res1
Bills Of Materials: Routings > Resources
Machine HR
WIP Move
Res1: Type = Machine, UOM = HR,

Charge Type = WIP Move, Basis = Lot
Charge Type = WIP Move, Basis = Item
Charge Type = WIP Move, Basis = Lot
Charge Type = WIP Move, Basis = Item

Creating Departments
Bills Of Materials: Routings > Departments
Define two departments Dep1 and Dep2.
Dep1

Creating Routings : Bills Of Materials: Routings > Routings
56.86274

Creating Routings

Creating Routings

Creating Routings

Creating Routings

Lead Time Concurrent Request : BMCCLTSG
56.86274

Lead Time Concurrent Request: BMCCLTSG

Lead Time Concurrent Request: BMCCLTG



Lead Time Result
The lead time related columns that are
updated are:
MTL_SYSTEM_ITEMS_B.FULL_LEAD_TIME
MTL_SYSTEM_ITEMS_B.FIXED_LEAD_TIME
MTL_SYSTEM_ITEMS_B.VARIABLE_LEAD_TIME

Calculations
Fixed Lead Time = 0.3 days
Fixed Lead Time = Sum(Lot Based Resource Usage) = Res1 + Res3
= 4.8HR/Lot + 2.4HR/Lot
= (4.8HR/Lot)/(24HR/day) + (2.4HR/Lot)/(24HR/day)
= 0.2 day/Lot + 0.1 day/Lot
= 0.3 days
Variable Lead Time = 0.125 days
Variable Lead Time = Sum(Item Based Resource Usage) = Res2 + Res4
= 1HR/Item + 2HR/Item
= (1HR/Item)/(24HR/day) + (2HR/Item)/(24HR/day)
= 0.125 days
Therefore, Cumulative Manufacturing Lead Time (FinG) = 0.3 + 0.125 = 0.425 days = 10.2 hours

Creating Discrete Jobs




Rollup Cumulative Lead Times



Rollup Cumulative Lead Times - Result

Rollup Cumulative Lead Times – Calculation
For Pur1, Cumulative Total = 43 (= 1+ 30 + 12)
For Pur2, Cumulative Total = 32 (= 2+ 20 + 10)
For FinG, Cumulative Total = 44

= Cumulative Manufacturing Lead Time + 43
= 1 + 43
This means that if Pur1 and Pur2 were not available in Inventory, then it would take a period
of 44 days to make the assembly item FinG.

Parameters effecting Lead times
Basis : Lot Or item
Usage Rate : Number of Hours the resource is required
Availability : Available 24 hours or Shifts
Schedule Sequence Number : In case of Simultaneous resources.

You need to give same number to the resources that are supposed to run Simultaneously.
Assigned Units : Number of Resource units assigned
Scheduled : Yes Or No

Parameters Effecting Lead Times

Parameters Effecting Lead Times

Lead Time Percentage – Categories
Lead Time Percent:
Oracle Manufacturing stores the lead time percent for each routing
operation as the percent of manufacturing (processing) lead time required
for previous operations, calculated from the start of a job to the start of an
operation.
Offset Percent:
Oracle Manufacturing stores the offset percent for each resource on a

routing operation as the percent of manufacturing (processing) lead time
required for previous operations, calculated from the start of the job to the
start time of a resource at an operation.

Calculations
Operations Resources Lead Times Offset Percentage
0:00 – 4:48 =
Resource 1 (0/612)X100 = 0%
Operation 10 288 minutes
4:48 – 5:48 = (288/612)X100
Resource 2
60 minutes = 47.0588%
5:48 – 8:12 = (348/612)X100

Resource 3
144 minutes = 56.86%
Operation 20
8:12 – 10:12 = (492/612)X100
Resource 4
120 minutes = 80.392%

Things to do….
Before logging an SR in lead times
1) The indented bill of material screenshot showing lead time tab.

If more levels of bills are present then export in excel and upload.
Navigation : Bills of Material Responsibility -> Indented Bills ->
Give Item as xxxx

Check the check box - Lead Time
Click Find.
Upload the screenshot of Lead Time
2) Also the screenshot of item details tab or export in excel and upload

Things to do….
3) Run the routing report for every assembly which has routing.
Navigation : Bills of Material Responsibility -> Reports -> Routings -> Routing Report GUI.
Give Details as
Item selection - specific
Item - xxxx (should match with screenshot uploaded in step 2)
Alternate Selection - ALL
Display Option - Current
Operation Detail - Yes
If you upload the above three files then we can calculate and let you know the correct value.
4) Also take the lead time program - concurrent log file with MRP : Debug Mode - YES

Summary
What we covered today
Defined Lead Times

Set Up for Lead Times completed
Completed a Test Case
Understood Lead Time parameters
Calculated Lead Time using Oracle App

Reference Information
Oracle Bills of Material User's Guide

Section:Manufacturing Lead Times
https://docs.oracle.com/cd/E18727_01/doc.121/e13688/T272930T272934.html
Doc ID 100127.1 - LEAD-ROLLUP: Calculate/Rollup Leadtime
Doc ID 140151.1 - Oracle Manufacturing Leadtime Guide - How to Setup Leadtimes

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ATTENTION – AUDIO Options

Option 1: Voice Streaming Audio Broadcast Option 2: Teleconference (Dial In)

Upcoming: Understanding Lead Times in Oracle Work In Process

 Check out Note ID : 740966.1

 Select your Product Area

 Scan through the list of Current Topics

 Register for the session(s) of your interest

Upcoming: Understanding Lead Times in Oracle Work In Process

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 4

March 25, 2015

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Set Up Required for Lead Times

Test Case to Show Lead Time

Impact of Lead Time in WIP

Lead Time parameters

Calculation of Lead Time

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 6

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 7

Transport Stores Inspect

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Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 11

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

For buy items:

For make items:

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Res1: Type = Machine, UOM = HR,

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For Pur2, Cumulative Total = 32 (= 2+ 20 + 10)

For FinG, Cumulative Total = 44

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Usage Rate : Number of Hours the resource is required

Availability : Available 24 hours or Shifts