Assemble-To-Order (ATO) / Pick-To-Order

(PTO) Basics in Oracle Applications

Arne S. Rosen, CPIM, CIRM

Senior Principal Consultant

Summer 2003 NCOAUG Training Day

Friday, August 15th
Harper College, Palatine, IL

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Agenda

 Definitions
 Setup
 Business Flow
– ATO Configuration
– ATO Item
– PTO Configuration
– PTO Item
– On-Hand ATO Configuration
– Preconfigured Items

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Agenda (cont.)

 Configuration
– Costing
– Pricing
– Description
– Routings
– Weight and Volume
 Parameters
 Profiles
 11.5.9
 References
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Model (Model Item)

An item whose bill of material lists

option classes and options available
when you place an order for the
model item.

APICS definition is a Super Bill of

Material

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Option Class

A group of related option items. An

option class is orderable only within a
model. An option class can also
contain included (standard) items.

An Option Class is a list of choices

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Option

An optional item component in an

option class or model bill of material.

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Assemble–to–Order (ATO)

An environment where you open a

final assembly order to assemble
items that customers order.

Assemble–to–order is also an item

attribute that you can apply to
standard, model, and option class
items.

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Assemble–to–Order (ATO) Model

A configuration you make in response

to a customer order that includes
optional items.

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Assemble–to–Order (ATO) Item

An item you make in response to a

customer order.

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Pick–to–Order (PTO)

 A configure–to–order environment where

the options and included items in a model
appear on pick slips and order pickers
gather the options when they ship the
order.
 Alternative to manufacturing the parent
item on a work order and then shipping it.
 Pick–to–order is also an item attribute that
you can apply to standard, model, and
option class items.

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Pick–to–Order (PTO) Model

 An item with an associated bill of material

with optional and included items.
 At order entry, the configurator is used to
choose the optional items to include for the
order.
 The order picker gets a detailed list of the
chosen options and included items to
gather as separately finished items just
before the order is shipped.

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Pick–to–Order (PTO) Item (Kit)

 A predefined configuration order pickers

gather as separately finished included items
just before they ship the order. Also known
as a kit.
 A kit is an item that has a standard list of
components (or included items) you ship
when you process an order for that item.
 A kit is similar to a pick–to–order model
because it has shippable components, but it
has no options and you order it directly by
its item number, not using the configuration
selection screen.
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Configured, ATO, PTO Items

 Configured items are Assemble to

Order (ATO) items that were created
from a model (have a base model).

ATO items have the Assemble to

Order attribute set to Yes.

Pick to Order (PTO) items have the

Pick Component attribute set to Yes.

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Hybrids

Pick–to–Order models with optional

Assemble–to–Order items

Pick–to–Order model containing

Assemble–to–Order model

Multi–Level Assemble–to–Order
Model (Multi–Level ATO
Configuration)

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BOM Item Type

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Base Model

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Assemble-to-Order

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Pick Components (Pick-to-Order)

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Ship Model Complete

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Seeded Templates

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ATO

Item Type BOM Base Assemble to Pick

Item Type Model Order Components

ATO Model Model Yes No

ATO Option Class Option Class Yes No

ATO Item Standard Yes No

Configured Item Standard Base Model Yes No

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PTO

Item Type BOM Base Assemble to Pick

Item Type Model Order Components

PTO Model Model No Yes

PTO Option Class Option Class No Yes

PTO Item Standard No Yes

Note: There is no configured item in the PTO process.

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Order Management Parameters:
Item Validation Organization

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Order Management Parameters:
Item Validation Organization

 When you enter orders for models, kits, and

assemblies in Oracle Order Management,
you must define all bills of material in your
OM: Item Validation Organization

 Using common bills of material, you can

share bills of material that exist in your
manufacturing organizations with your item
validation organization.

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ATO Model Bill of Material

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PTO Model Bill of Material

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Four Implicit Configuration Rules

 Optional

 Mutually Exclusive

 Min / Max

 Quantity Cascade

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Four Implicit Configuration Rules

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Four Implicit Configuration Rules

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Shipping

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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AutoCreate Configuration Items

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Business Flow

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ATO Configuration Pick Pack Ship

Pick Packing Bill of Invoice

Slip Slip Lading
ATO ATO ATO ATO Any Invoice Enabled item
Configuration Item Item Item EXCEPT the ATO Item

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Business Flow

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ATO Item Pick Pack Ship

Pick Packing Bill of Invoice

Slip Slip Lading
ATO ATO ATO Item ATO Item ATO Item
Item Item

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Business Flow

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PTO Configuration Pick Pack Ship

Pick Packing Bill of Invoice

Slip Slip Lading
PTO Standard Standard Standard Any
Configuration Items Items Items Invoice
Enabled
item

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PTO Item Business Flow

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PTO Item Business Flow

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PTO Item Business Flow

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PTO Item Business Flow

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PTO Item Pick Pack Ship

Pick Packing Bill of Invoice

Slip Slip Lading
PTO Item Standard Standard Standard PTO
Items Items Items Item

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Pick Pack Ship Summary

Pick Slip Packing Bill of Invoice

Slip Lading
ATO ATO Item ATO Item ATO Item Any Invoice
Configuration Enabled item
EXCEPT the
ATO Item
ATO Item ATO Item ATO Item ATO Item ATO Item
PTO Standard Standard Standard Any Invoice
Configuration Items Items Items Enabled item
PTO Item Standard Standard Standard PTO Item
Items Items Items

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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On-Hand ATO Configuration Business Flow

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Preconfigured Items

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Configuration Costing

A cost rollup is performed for each

new configuration to establish
accurate standard costs that are
posted to cost of goods sold.

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Configuration Pricing

 Price is rolled up from all the

items that blow back on the
order.

 All items must be on the price

list even if the price is zero

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Configured (Item) Description

A dynamically generated item

description derived from the catalog
descriptive elements of the
configured bill of material
components.

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Configured Description Steps

Create Configured Description Item

Catalog Group for the ATO Model

Assign Item Catalog Group to Option

Class Items

Define Bills Elements for the ATO

Model and Option Class Items

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Create Configured Description Item
Catalog Group

 Decide what descriptive elements to include

in the configured item description
– ATO Model and Option Class Descriptive
Element Names must match
– Prefix and/or Suffix can be hard coded
into the catalog
– Descriptive Element Names must be
unique across Option Classes if they
have different values

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Create Configured Description Item
Catalog Group

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Create Configured Description Item
Catalog Group

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INV: Use item catalog name in the item
description

 No : Use Item Catalog Group Description

 Yes : Use Item Catalog Group Name

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Assign Item Catalog Group to Option
Class Items

This should be the same Item Catalog

Group Assigned to all the standard
items in the Option Class

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Define Bills Elements

This needs to be done for the ATO

Model and the Option Classes

Only Pick the Descriptive Elements

necessary to drive the Configured
Item Description

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Define Bills Elements

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Define Bills Elements - Option Classes

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Define Bills Elements - ATO Model

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Configured Descriptions

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Configured Descriptions

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Configured Descriptions

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Configured Routings

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Configured Routings

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Configured Routings

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Configured Weight and Volume

 AutoCreate Configuration Items calculates

the weight and volume for the configured
item, by rolling up the weight and volume
of the components in the OM validation
organization.

 Multi-level configurations are supported

 If weight and volume units of measure are

not the same unit of measure conversions
are required

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Configured Weight and Volume

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Bills of Materials Parameters
Inactive Status

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Deactivate Configuration Items

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Bills of Materials Parameters
Numbering Method

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Bills of Materials Profile Options
Configuration Item Delimiter

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Bills of Materials Profile Options
Configuration Item Type

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Bills of Materials Profile Options
Inherit option class operation sequence #

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Bills of Materials Profile Options
Match to Existing Configurations

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Bills of Materials Profile Options
Perform Lead time calculations

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Bills of Materials Profile Options
Use Custom Match Function

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Bills of Materials Profile Options
Automatic Reservation

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Bills of Materials Profile Options
Configurator URL of UI Manager

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Work in Process Parameters
Respond to Sales Order Changes

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What’s new in 11.5.9

 Multi Level Auto Create Supply

 Supply to Order Workbench

 Enhanced Costing for Configurations

 Improved Configuration BOM

structure
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References

 Oracle Configure to Order Implementation Manual

 Oracle Bills of Material Users Guide

 Oracle Inventory Users Guide

 Oracle Order Management Users Guide

 Oracle Order Management Suite Implementation Manual

 Oracle Work in Process Users Guide

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QUESTIONS ?

Thank you for attending!

Arne S. Rosen, CPIM, CIRM

DARC Corporation
125 S. Wacker Drive, Suite 2550
Chicago, IL 60606

312-338-6234
arosen@darc.com

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