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Configure-To-Order

Posted on November 28th, 2010 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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Capital goods are expensive machines which are used for many years before being disposed of.

Examples like advanced medical systems, electronic microscopes and lithography systems are highly complex and customer-specific. Instead of selling off-the-shelf, these products are configured in consultation with the customer. The end product is in most cases unique and fulfills the exact needs of the customer. It is created through the careful combination of different hardware modules and software. The hardware modules are standardized, designed for flexible use in many customer-specific configurations.

Therefore , Configure-to-Order (CTO) represents the ability for a user to define the component make-up (configuration) of a product at the very moment of ordering that product, and a vendor to subsequently build that configuration dynamically upon receipt of the order.

Do you know , Dell has operated as a pioneer in the "configure to order" approach to manufacturing, whereby delivering individual PCs configured to customer specifications.

Configure-To-Order

Oracle Manufacturing enables you to define options available for products and to process orders for unique product configurations while maintaining control of inventory, planning, and cost accounting.

A Configure to Order environment is one where the product or service is assembled or kitted on receipt of the sales order.

Do you know, Oracle Applications supports the Configure to Order environment with a range of features in order entry, demand forecasting, master scheduling, production, shipping, and financial accounting.

Key points for Configure to Order are:

  • includes Pick-to-Order (PTO) and Assemble-to-Order (ATO) items, models, and hybrids.
  • supports building configurations using other configurations as sub-assemblies (multi-level configure-to-order)
  • supports internal and external sourcing of ATO models at any level in the BOM
  • supports multi-level PTO/ATO hybrids

Some standard Definitions

1Assemble - to - Order Model (ATO Configuration)

  • Model bill of material with optional items and option selection rules
  • Configuration manufactured from mandatory components and selected options, or purchased from a supplier

1Assemble-to-Order Item

  • Standard bill of material with mandatory standard components
  • Item manufactured from mandatory standard components, or purchased from a supplier

1Pick-to-Order Model (PTO Configuration)

  • Model bill of material with optional items and option selection rules
  • Pick slip used to kit included items and selected options

1Pick-to-Order Item (Kit)

  • Standard bill of material with mandatory included items
  • Pick slip used to kit included items

1Hybrid

  • Pick-to-Order models with optional Assemble-to-Order items
  • Pick-to-Order model containing Assemble-to-Order model

1Multi-Level Assemble-to-Order Model (Multi-Level ATO Configuration):

  • A model bill of material with a non-phantom model as a component
  • Configuration manufactured from mandatory components selected options, configured sub-assemblies, or purchased from a supplier.

1Multi-Level Assemble-to-Order Items:

  • Standard bill of material with standard components and configured components
  • Item manufactured from standard components and configured components

Integration

The following Oracle Application products are integrated to provide Configure to Order features:

  • Bills of Material
  • MRP/MPS, SCP
  • APS
  • Order Management products
  • Configurator products
  • Work in Process
  • Inventory
  • Flow Manufacturing
  • Cost Management
  • Purchasing
  • iSupplier Portal

Therefore , Configure to Order enables configure to order and discrete manufacturing processes to be integrated directly into your operational processes.

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