Creating Formula in Oracle Process Manufacturing (OPM)

In this post we will see how to create a formula

Ingredients for a new product are usually assigned to a formula in research and development.But the required quantitiy of ingredients are usually determined for one products.

The quantities of inputs(ingredients) and outputs(products and by-products) of production are determined different.


Select the Recipe Enabled indicator on the Process Manufacturing tab to use organization items in formulas and recipes.

Process Manufacturing attributes are controlled at org level and formula items are organization
specific.So you have to assign items to the organization.

Navigation:Formulator > Formulas

Enter a formula name

Status - The default formula status provided for the organization in 'Product Development Parameters' appears here.

Navigation:Product Development Security Manager > Organization Parameters

Version is the version of the formula.
Formula name and version is used together in database.

Description is a brief explanation of the formula.

Comments are the remarks or notes entered for the formula.

Organization is the formula owning organization.

Owner is a code for the owner of the formula.

Owner Name is the complete name of the formula owner.

Enter a Class for formula to identify how it is categorized.Classes are created in 'Formula Classes' window.

Navigation:Formulator > Setup > Formula Class

Select Scaling Allowed to indicate the formula allows scaling.

Select Packaging when the formula is a packaging formula.To set up a packaging formula, enter the packaged item itself as product. Then enter the bulk item, packaging container, and package label as ingredients. Select the Packaging indicator in the formula header.

Select Calculate Product Quantity to indicate the formula automatically calculates the quantity for products with the Proportional scale type.

The Automatic Calculation of Product Quantity determines single or multiple product quantities based on the ingredients, UOM, Scale Type, Percentage, Contribute to Yield Indicator, and byproduct quantities entered in the formula.

If you select Calculate Product Quantity,you have to set up units of measure conversion between the units of measure of ingredients and the units of measure of products.

Formula Product Quantity = [(Sum of Contributing Ingredients Quantities) – (Sum of Byproduct Quantities)] * [(Percentage Entered for Product) / 100]

In the following example, Ingredient A is mixed with Ingredients B and C to yield Products X and Y and Byproduct Z.Ingredient C is a catalyst and does not contribute to the product yield. With automatic product quantity calculation, the formula product quantities are calculated as follows:

Formula Line	Quantity Entered	Percentage	Contribute To Yield	Quantity Calculated
Ingredient A	40 LB	N/A	Yes	N/A
Ingredient B	60 LB	N/A	Yes	N/A
Ingredient C	20 LB	N/A	No	N/A
Byproduct Z	10 LB	N/A	N/A	N/A
Product X	N/A	60	N/A	54 LB
Product Y	N/A	40	N/A	36 LB

The product quantity for Product X is calculated as (40 LB + 60 LB – 10 LB) * 60/100 = 54LB

The product quantity for Product Y is calculated as (40 LB + 60 LB – 10 LB) * 40/100 = 36LB

Products

The Line number for each product listed displays. These fields cannot be edited.

Enter the Product code for each item produced by this formula. If the formula code entered is the same as an item code, then that item code displays as the default for the first product line. A minimum of one product is required for a formula.Required
If item is segmental(key flexfield),item code may be longer than formula code!!So you may not use product code as a formula code.

Enter the Revision, or leave this blank if there is no revision.

The Description of the product entered displays. This defaults from the Item Master table.

Enter Quantity of the product that this formula yields. The quantity entered in this field is the default standard quantity used for the recipe. Required.

Enter the UOM for the quantity entered. The inventory unit of measure for the item is the default. If you enter a different unit of measure, then set up a unit of measure conversion between the default and the unit of measure you decide to enter. Conversions between units of measure of the same unit of measure type are defined in Oracle Inventory. Required.

Select the Scale Type as:

• Fixed if the product is not scalable.
• Proportional if the product is scalable.Required.

Select the Yield Type to indicate the type of product yield as:
• Automatic when products are yielded automatically when the batch is completed.
• Manual when products are yielded manually.
• Incremental when product is yielded by incremental backflushing.
• Automatic by Step when products are yielded automatically as the step is completed. Required.

Cost Allocation indicates how the cost of this item is allocated for financial rollup purposes

Byproducts

Byproducts differ from products in that you do not plan production to make byproducts, but they must be accounted for in the formula. 

Byproducts are not mandotory to create a formula.Enter byproducts only when the process produces a byproduct.

Oracle Process Manufacturing (OPM) does not calculate the cost of production of byproducts. Any items produced by formulas that you want to calculate costs for must be entered as products. They must not be entered as byproducts.

Line is the line sequence for each byproduct.These fields cannot be edited.

Enter the Byproduct code for each item produced by this formula.

Enter the Revision, or leave this blank if there is no revision.

The Description of the byproduct entered displays. This defaults from the Item Master table.

Enter Quantity of the product that this formula yields.Required.

Enter the UOM for the quantity. Required.

Select the Scale Type as:

• Fixed if the byproduct is not scalable.
• Proportional if the byproduct is scalable.Required.

Select the Yield Type to indicate the type of byproduct yield as:
• Automatic when byproducts are yielded automatically when the batch is completed.
• Manual when byproducts are yielded manually.
• Incremental when byproducts are yielded by incremental backflushing.
• Automatic by Step when byproducts are yielded automatically as the step is completed.Required.

Select the By-product Type as:
• Rework when the byproduct requires rework.
• Waste when the byproduct is a waste material.
• Sample when the byproduct is a sample for quality testing.
• Yield when the byproduct generated is yielded to another process or step.Required.

Ingredients

The Line number for each ingredient listed displays. These fields cannot be edited.

Enter the Ingredient code for each item required by this formula. A minimum of one ingredient is required for a formula. Required.

Enter the Revision, or leave this blank if there is no revision.

The Description of the ingredient entered displays. This defaults from the Item Master table.

Enter Quantity of the ingredient that this formula requires. The quantity entered in this field is the default standard quantity used for the recipe. It can be changed at the recipe level. Required.

Enter the UOM for the Quantity entered. The inventory unit of measure for the Item is the default. Conversions between units of measure of the same unit of measure type are defined in Oracle Inventory. Required.

Select the Scale Type as:

Fixed if the ingredient is not scalable.
Proportional if the ingredient is scalable.
Integer if the ingredient is scalable by multiples.

Enter the Scale Multiple as the scaling increment for the ingredient.Scale Multiple, to specify the multiple in which the ingredient is used in a formula. For example, a Scale Multiple of 30 indicates the ingredient is used in quantities of 30, 60, or 90, and so forth.

Enter the optional Scale Rounding Variance if the integer scale type is selected.

Enter the optional Rounding Direction if the integer scale type is selected as:

Down if the acceptable rounding direction is down to the nearest multiple.
Either if the acceptable rounding direction is up or down to the nearest multiple.
Up if the acceptable rounding direction is up to the nearest multiple.

For example: Formula Product Quantity		y	Formula Ingredient                 Quantity	x
Quantitiy after scaling		3y	Quantitiy after scaling	3x
Scale Multiple	a
Scale Rounding Variance	null
Rounding Direction	Either			Down			Up
3x<a/2	3x		3x<a/2	3x		3x<a	a
a+a/2>3x>=a/2	a		3x=a/2	3x		3x>=a	2a
3x>=a+a/2	2a		a>3x>a/2	3x		all quantities between a and 2a 2a
			2a>3x>=a	a		all quantities between 2a and 3a 3a
			2a=3x	2a
			3a>3x>2a                     all quantities between a and 2a a	2a
			all quantities between 2a and 3a 2a

Select the Consumption Type to indicate the type of ingredient consumption as:

Automatic when ingredients are consumed automatically when the batch is completed.
Manual when ingredients are consumed manually.
Incremental when ingredient consumption is calculated by incremental backflushing.
Automatic by Step when ingredients are consumed automatically as the step is completed.Required.

Select Contribute to Yield as Yes or No to indicate whether the material contributes to the yield. Required.

Select Contribute to Step Qty as Yes or No to indicate whether the material contributes to the to the step quantity. Required.

Select the Phantom Type
Not a Phantom indicates the ingredient is not a phantom item.
Automatic Generation indicates the ingredient is a phantom item that is exploded automatically.
Manual Generation indicates that the ingredient is a phantom item that requires manual explosion.Required.

Buffer specifies those ingredients that are used to maintain the target quantity while working with a formula or batch on the Simulator. The Calculate indicator on the Optimizer window is the default for all the ingredients selected as buffer in the formula.

Enter Scrap Factor as the anticipated amount of ingredient lost in the manufacturing process as a percentage. For example, if the scrap factor is 10 percent, then an additional 10 percent of material is added to accommodate for this loss. Required.

Required Qty displays the result of multiplying the formula quantity by the quantity one plus the scrap factor expressed as a percent. For example, if the scrap factor is 10 percent and the formula quantity is 100 pounds, then the required quantity is 110 pounds. It represents the planned quantity plus the scrap.

As you see,scrap factor 20% for ingredient 1 and 30% for ingredient 2
Required quantities;

(100+(100*0.2))=120
(100+(100*0.3))=130

Save the window.

Requirements for a new product are usually assigned to a formula in research and development.

A formula can be created in one inventory organization, and then copied, modified, and maintained by another inventory organization.

Some Scaling examples

Item                                                         Formula Quantity                  Quantity After Scaling
Product A                                                  10000 kg                                      20000 kg
Ingredient A, Proportional Scaling                  5000 kg                                      10000 kg
Ingredient B, Proportional Scaling                  5000 kg                                      10000 kg


Item                                                         Formula Quantity                  Quantity After Scaling

Product A                                                   10000 kg                                      20000kg

Ingredient A, Proportional Scaling                    5000kg                                      10000kg
Ingredient B, Proportional Scaling                    5000kg                                      10000kg
Ingredient C, Fixed and Noncontributing          2000kg                                        2000kg


Item                                                         Formula Quantity                  Quantity After Scaling

Product A                                                    11500 kg                                     23000kg

Ingredient A, Proportional Scaling                    5000kg                                      11000kg
Ingredient B, Proportional Scaling                    5000kg                                      11000kg
Ingredient C, Fixed and Contributing                2000kg                                        2000kg

11500 kg:12000kg
23000 kg:24000kg


Item                                                         Formula Quantity                  Quantity After Scaling

Product A                                                      3000 kg                                      6000kg

Ingredient A, Proportional Scaling                    1000kg                                       1000kg
Ingredient B, Fixed and Contributing                 2000kg                                       5000kg

3000 kg:3000kg
6000kg:6000kg


Item                                                         Formula Quantity                  Quantity After Scaling

Product A                                                      3000 kg                                       6000kg

Ingredient A, Proportional Scaling                    2000kg                                        4000kg
Ingredient B, Fixed and Noncontributing           1000kg                                        1000kg