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 Option Class Yes No

Class

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 ClassOption 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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Basis

 If the component is an option class item, you must

indicate whether you want to override the default
quantity for the option class when a sales order is entered
(the default). Option class quantities affect the mandatory
standard components assigned to the option class.

 If you select None for the Basis field, Oracle Order

Management can override the default quantity for the
option class. Order Management defaults the total
quantity to release as the component quantity multiplied
by the option class extended quantity.

 If you select Option class for the Basis field, Order

Management cannot override the default quantity for the
option class. Order Management calculates the total
quantity to release as the component quantity multiplied
by the option class extended quantity.

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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 I nvoice

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

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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

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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

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Pick Pack Ship Summary

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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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