Know your Business Problem First

Whenever I see some scenarios in my Profession I remember an old story. One guy goes to jungle and prays the God for years. Once he fulfills the God's satisfaction, the God appears and gives him a boon. The guy asks the God to grow some hair in the ears of his maternal uncle. There is a logic, even if stupid. The guy having such maternal uncle with hair in the ear, gets lot of wealth. The wish is still with no logic because when the god offered a boon, the guy could directly ask for wealth instead of sounding ridiculous. 

Many of my stakeholders also do the same. Instead of stating the business problem they directly ask you to do what they perceive as a solution. Consultants many times also accept to do with a directive that the Customer is right. The Consultants however forget that they are the experts and the customer looks for their advice and not to follow the advice. In this process the business requirement may or may not be met. And even if met, the important parameters like Total Cost of ownership could be impacted.

The Customers who have some technical knowledge are prone to be trapped into arriving at (perceived) solution without even defining the Problem. That is when the Consultants need to ask more questions to understand the Business Problem first and than arriving at solution.

Now there is also a challenge of doing this without hurting the Techno savvy customer. The consultant hence needs to come back with his understanding of Business Problem and many alternative solutions including what Customer has already suggested. The Consultant needs to provide the PROS and CONS for each of the alternative so that the customer him/herself will come back and narrow down to the right solution.

We also have a question on what is the right solution. Right here can be wrong somewhere else. Once again the customer needs to get more information on what is the Customer environment  the future business plans, technical capabilities, maturity of users, readiness to deploy to the solution in consideration. While I gave this many parameters, I would say, TCO (Total Cost of Ownership) is the major parameter before arriving at the Solution.

You can always give a solution and provide your attractive quote. But what is the end cost incurred by the Customer? Does he need to buy additional licenses? Does he need new hardware? Should he install a new Operating System? Should he hire a new administrator? What are such additional costs and how many of them are fixed costs and how many  are recurring? If you as a consultant do not ask these questions, the Customer will be in trouble even if you wash your hands with your service  and getting paid the service charges. And don't think you can run away. The project will be deferred or halted if the Customer budget doesn't support the other investment apart from your service charges. And you may not get the deal and you may need to leave in the middle of engagement with partial payment. At the end, you need to understand that you need t meet Customer's goals and objectives. Not just yours and your company's goals. When you go with a thought process of being in customer shoes, you will get another call from the same customer for another deal.

While this is on the outbound side, the serious challenge is from the inbound system. You as a sales or Pre-sales guy can go and confidently make a proposal when you know you have a resource pool of high quality and readiness to join the project in the timelines expected by Customer. Similarly you need to be confident that your operations team will give the needed software and setup to your offshore team to start from Day one. When your guys need to travel to abroad, your immigration and travel desk need to feel the same urgency and support you to meet the promised dates of deployment at Onshore. If any of such operations and support teams fail or feel indifferent to your priorities you will be quite defensive. The organization needs to work in such a way that all units work towards the same business objective and metrics.

This is the structure which ensures the success by all means for any service provider. And it is your organization which should drive for such togetherness and awareness of priorities.

 

Raja Ivaturi - Oracle Expert: Track configuration details of PTO models when shi...

Raja Ivaturi - Oracle Expert: Track configuration details of PTO models when shi...: Business Scenario The configuration relations are not created for PTO Configurations when a shipment occurred through partial shipmen...

Track configuration details of PTO models when shipped Partially

Business Scenario

The configuration relations are not created for PTO Configurations when a shipment occurred through partial shipments When the PTO model and options (all tracked in Installbase) are delivered with partial shipments, the instances of tracked components and PTO model are reflected in Installbase; the relationship between PTO model and components is not created.

Why it behaves

When a PTO order is partially shipped, the backordered lines are identified as remnants in Order Management and the system ignores the relationship between the lines and treats each individual item as separate shipment. After the model becomes remnant, IB cannot create component relationships.

Solution /Workarounds:

WorkAround 1. It is recommended to deliver with the Ship Model Complete checkmark selected for the tracked PTO Models; execute the pick and confirm only after the last shipment is made.

This is not a good work around when most of the times your business doesnt work with ship model complete scenarios, but it avoids a lot of overhead, in terms of manually updating the configuration details in Installbase if partially shipped. You need to remember and record the shipment after last shipment is made and it puts lot of manual tracking. But this alternative can be handy when the PTO model has huge number of components.

Other issues with this workaround is that the business intelligence reflects poor delivery as you execute Pick and confirm only when the last shipment is made.

WorkAround 2. Manually maintain the relationship in the Installbase, after the last shipment of the partial deliveries is complete.

For manual updating the instance configuration, you may refine the process by defining a new transaction sub–type, which indicates that the parent configuration of these instances needs to be updated.

An example setup is as follows:

a. Create a new instance status 'Update Parent Config' with the same attributes as the instance status 'Created' and change the status description to 'Update Parent Config.' This status indicates the user that you need to update the parent configuration in Installbase.

b. Create a Service transaction Billing type similar to the seeded type Sell but rename it to 'Sell with Partial'. This indicates you are making partial delivery and need additional action.

c. Create the transaction sub-type, with the seeded service transaction type ‘Sell Partial’ included from the LOV, of name. Assign the new status created in step a, ‘Update Parent Config’ to the transaction Sub-type.

d. When you ship the components of PTO model, go to the installation details from the actions menu of the sales order line and change the transaction sub-type to the new transaction subtype (Sell with Partial.) In the external reference mention the parent PTO model name which needs to be updated with the shipped item as component.

e. After completing the last shipments, periodically qurey for instances with status as 'Sell With Partial' and identify the parent PTO to update from the external reference.

f. Update the Parent PTO model with the instances shipped later.

g. Update the component instances with status Created (which is the original status description for the shipped item for the first item)

This is a cumbersome process but can be opted when the configuration does not have too many components

Note: You may use the Open Interface to execute the configuration updating, when there are too many shipments.

How can we configure item in Selling Organization, without BOM in the Organization

Business Scenario:

The Multi-Company Organization has a selling organization S1 which sells the configured items made in the organization M1. The Sales Rep doesnt keep BOM and Routing of the Configured items in the Sales organization as they dont make the items in S1. But they want to Configure to choose the options and arrive at the configuration before asking the Manufacturing organization to make and supply to S1 to subsequently deliver to the customer.

Solution:

In R12, this scenario can be dealt with the below setup.

1. Define all the ATO Models in the organizations M1 and S1

2. Define the BOM in M1 and in the OM Validation Organization. (Assume O1)

3. Set the item attribute Create Configured Item, BOM as "Item Based on Model, BOM Based on Soucring"

4. Define Item-Org Sourcing rule for each ATO Model in S4, for Transfer from M1

5. Define the Internal Sales order set up for transactions between M1 and S1

6. Define the transfer from sourcing rule in S1

7. Go to the System Profiles and check the default Assignment set that is mentioned in the Profilt MRP:Default Assignment Set.

8. assign the transfer from sourcing rule to S1 and to the item of your purview.

The transaction works as follows:

1. Sales Rep receives the order for a ATO Model

2. Make the order entry with S1 as the Ship from Org

3. Launch the configurator, even though BOM doesnt exist in S1, the configurator picks the the OPtions from the BOM defined in the OM Validation Org

4. Choose the options and return to order management

5. Book the sales order

6. Create configured items (through Progress order)

7. Autocreate Supply eligible (through Progress Order)

8. An internal Sales order is created with source as M1

9. Make the Configured item in M1

10. Complete the Internal Sales order process

11. Ship the item from S1

Return Material Authorization (RMA)

After the goods are delivered there is a possibility that the customer may return the items partially or fully for various reasons such as item not acceptable, wrong delivery or others.

The Cycle is used to take the Materials returned by the Customer.

1.1 Setup:-

Item Master Attribute / Column Value
Define Item Type Finished Good
Inventory item Enabled
Stockable Enabled
Transactable Enabled
Customer Order Enabled
Customer ordered Enabled Enabled
Shippable Enabled
OE Transactable Enabled


1.2 Brief Steps

Step1:- Creation of the Item
Step2:- Creation of the Transaction Type
Step3:- Document Sequencing
Step4:- Creation of Pick List
Step5:- Creation of Customer
Step6:- Creation of Sales Order
Step7:- Receipt of Returned Items





1.2.1 Creation of the Item

Go to InventoryItemsMaster Items

Enter Item name and description of the item.





Go to ToolsCopy From

Attach template @finished Good to the Item



Save the Item

Go to Inventory Tab

Item should be Inventory Item, Stockable, Transactable and Reservable checked.


Go to Order Management Tab

Item should be Customer Ordered, Customer Orders Enabled, Shippable, OE Transact able checked.




Go to ToolsOrganization Assignment

Assign Inventory Organization for that Item.



1.2.2 Creation of Transaction Type

Go to Set up Transaction TypesDefine

Create a new Transaction Type Line. Select Order category as Return and Transaction Type code as Line.
Save it.




Create a new Transaction Type Order.
Select Order category as Mixed or Return and Transaction Type code as Order along with Fulfillment Flow as Order Flow-Generic.



Click Assign Line Flows and select the Order type and Line Type you have created.
Select the process name as Return for credit with Receipt.
Enter the start date and save it.



1.2.3 Document Sequencing

Go to Setup Documents Define

Enter the Name, select the application as Order Management, Select the Type as Automatic and give the initial value to start the document sequencing with.





Go to Set up Documents Assign

Select the Application, Category i.e. Transaction type created and Set of Books from LOV (List of Values).



1.2.4 Creation of Price List

Go to Pricing Price Lists Price List Setup

Enter Name for your price list and save it.
Now go to Line Lines Tab and select the Item you have created in the product value. Enter the price for that item and save it.










1.2.5 Creation of Customer

Go to Customers Standard

Enter the Name and Address of the Customer.





1.2.6 Creation of Sales Order

Refer Order Fulfillment Cycle Process for creation of Sales Order.

Order Fulfillment Cycle Process is as under

EnteredBooked Pick Release Ship and Close
Status of the Line will be closed.

1.3 RMA Process
As per the sequence of steps explained above, any sales order is delivered as ordered by the customer. While there are many variants to the this flow, only standard sales order delivery process was explained as the context of this document is about managing returns.

Whenever the goods are returned, the sales rep or the service engineer enters the return of the items as below.

Go to Order Returns Sales Order




Enter Item and quantity to be returned with Line type as Return type.




Select the Return Reason in the Returns Tab from LOV and Save it.





Line status will be Awaiting Return.




1.3.1 Receipt of the Returned Items

Go to Purchasing Receiving Receipts.

Go to Customer tab and enter the RMA Num and click find.






Receipt Header window will open.





Go to Receipts window and tick the line to be received.
Enter the Location to whom quantity has to be returned and save it.
From Receipt Header get the Receipt no.




Go to Purchasing Receiving Receiving Transactions

Click Customer Tab and enter the Receipt no and click find.

Enter the Subinventory and save it.



Go to Sales Order and line status will be Returned.




Go to Inventory On-hand, Availability On-hand Quantity

Enter the Item returned in the Item/ Revision field and click find to check the quantity on hand.




You will get the on hand quantity of the Item.


Go to View Requests Submit a new Request OK

Enter the Name as Workflow Background Process from LOV.
Go to parameters, enter the Item type as OM Order Line and insert yes in Process defined and Process time out and click OK.
Submit the request.



Work flow background process will run and close the sales order line.





Go to Sales order, the line status will be closed.

Solution- Sensing devices with flexible discounting and Unique configured item identity

Contributor: Raja Mohan Ivaturi

I came across a customer assembling and selling the sensing devises and had the following business scenario to be supported by Oracle E-Business Suite. Your feedback is requested.

The Business Scenario:

The Customer makes the end items in Assemble / Configure to Order scenario with many optional sub-assemblies and options components.

1. Customer sells various combinations of the optional items and assembiles under the generic Bill of the end items based on the choice made by the customers at the time of order entry

2. Customer quite often offers discounts to the customers based on certain options of sub-assemblies / components. For example out of options A,B and C of certain part, customer offers 10% discount whenever the customer opts for the optional item A. In the similar manner the customer offers discounts and special prices on many such combinations.

3. The customer identified some popular combinations of these configure to order items, that are frequently ordered, and defined such combinations as Pre-configured items. Through this the customer wanted to have special focus while planning on the popular end items as well s avoid the cumbersome configuration process from hundreds of options

4. The customer also wants to track the sales and performance of each combination from the configure to order items and hence wanted to have unique identity of each item with specific combination of optional items.

Original solution: the customer did the below setup to address the requirements of above scenario:

A. Defined the Configure to order ATO models

B. Defined the discounts in Advanced pricing with optional items as qualifiers

C. Defined Pre-defined items for some of the popular combinations from the ATO models.

However the customer faced the following setbacks.

* Problem 1:

1. Sales Rep enters the Popular item when the configuration selected by his customer is one of the pre-defined configured items to avoid cumbersome selection of large number of optional items through Configurator

2. By Oracle Functionality, the Price of the item is however picked up from the item master as calculated at the time of pre-configured item creation

3. The discounts to be applied on the optional items were bypassed when the pre-defined items were directly entered in the sales order. The price of the predefined item is directly taken and no pricing calculation was taken place as it happens only while new configured item was created. So the customer decided not to use the Pre-configured items and always go through the Cumbersome configuration Process

a. This made the order entry cumbersome (Problem 1: Lengthy Order Entry)

b. Customer lost the visibility on tracking the sales of most popular items as fresh configuration every time even for the same combination. For example if you choose options 1,2,3 in one order an unique configured item A is created and next time when you choose the same items another configured item id B is created and there is no way you can understand that these items A and B are same and ordered more number of times. (Problem 2: No Visibility on the popular configurations)

4. The customer hence decided to bypass the pricing and redeveloped all the pricing definition in Configurator rules with heavy customizations

5. The Prices are calculated in the Configurator while choosing the optional items

6. However the Configurator performance was drastically reduced and selecting the large number of options every time reduced the Order entry and configuration process very long time (Problem 3: Performance Issue)

In summary there are three major issues due to which the customer was not happy even with the Oracle Application offerings:

1. Problem 1: Cumbersome Order entry Process as Pre-configured items could not be used. In case we want to use the Pre-configured items and reduce the Order entry, than the Pricing definition would be bypassed

2. Problem 2: Switching OFF the Match feature and relying on the Order entry plus Configuration Customizations, removed the visibility on the Popular Configurations and doesn’t give Business Intelligence and decision making opportunities

3. Problem 3: Heavy logic included in the Configurator to redo the entire Pricing logic created serious Performance issues

Solution

I provided the below solution with very minimum Customization and meet all the requirements.

1. Set the Configure to Order models as it is.

2. Set the Standard Match ON. The Existing configured items including the Pre-configured items will be picked up whenever the same combination is selected by the customers.

3. Set the predefined items as they are

4. Write the configurator rules to default the option selections based on a value equal to the predefined items. You need to create some non-BOM options referring to which the Configurator rule will make selection of optional items that should go for the pre-defined item

1. While doing the order entry, if Sales Rep knows the item is known popular item, he/she still launches the configurator but enters the first non-bom option (Feature) as the predefined item code.

2. The configurator rules based on this input defaults the optional items. The user need not make the cumbersome selection.

3. Submit the configuration

4. All selected options are loaded as Order Line items under the ATO Model

5. When configured item creation is triggered, the pricing engine looks at the selected lines and apply all the pricing rules defined

6. However the Configuration match function picks up the same predefined item but with the price calculated as per the pricing rules for selected options.

7. Because the match is ON the customer was able to track the sales by unique combination of options (configured item codes) that help the business intelligence and decision making

Finally ensured that all the issues have a portion of solution addressing them by preparing the matrix below:

Highlights

1. The solution has very basic configuration effort in setting up the configurator rules to pre-select the options for Pre-defined items

2. There was almost ZERO Customization

3. All great features of Configure to Order were effectively used

4. All Business Requirements were met to the full extent.