Quality Presentation 1l2t2w

Oracle QUALITY module Compiled By Naveen Mauwala

Oracle Quality (Overview)  Oracle Quality is one of the most flexible module in Oracle ERP Applications. It can be used in multiple ways across organizations.  Quality module is integrated with the Oracle Manufacturing and Distribution applications to provide consistent quality data definition, data collection and data management across the enterprise and throughout the supply chain.  Data collected and input into Oracle Quality may come from functions such as Inventory, Receiving, Purchasing, Service, Shop-floor inspection or even directly from the Customer. Quality data can also be collected in a standalone direct data entry mode or may be linked to third party systems.  Oracle Quality helps in documenting and tracking product and process defects, non-conformances problems, and general quality issues. We can determine what quality data can be collected, tracked, and reported using -definable collection plans 2 7/28/2014

Key Benefits Oracle Quality module can help to do the following: • Establish quality standards for products and processes throughout the

enterprise. • Monitor performance relative to established quality standards. Identify and track process factors that are affecting product quality. • Collect information about product defects, their causes, and their related dispositions. • Ensure that test and inspection instructions are available at the appropriate steps throughout the supply chain for a given product • Ensure that the proper tests are performed at the right time and document all test results • Alert the appropriate personnel when products do not conform to standards. Provide flexible reporting on all aspects of quality management. • Most important, maintain a shared enterprise-wide repository of quality results. 3 7/28/2014

Other Benefits  Oracle Quality collection plans & elements can be used to capture & store Non Quality Data also.  Oracle standard enter, update & view Quality results screens are available to capture & review the data.  Ability to capture unlimited number of data points.  Flexibility to add, remove or update a data point (collection element) at any time.  Input control using the standard pop list restrictions for collection elements, if necessary.

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Oracle Quality (Data Flow)

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Business Purpose/Example Company XYZ purchases various parts from its suppliers. There is one part which is very critical to internal product and Company XYZ wants to monitor and control the procurement of this parts from various suppliers. When this part arrives at the receiving bay at XYZ company, it undergoes inspection process. Each part needs to be measured against pre defined dimensions like height, diameter and finish. If the parts doesn’t match the defined criteria, it will be returned back to supplier. Also company XYZ want to capture each receipt/inspection transaction so it can identified the “preferred” supplier for this critical part.

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Oracle Quality Solution Oracle Quality module can help Company XYZ to implement this receipt inspection process. Oracle quality module provide the tools to define a mechanism to capture data (collection plan) with the pre defined data point (collection elements). Each of these data points (collection elements) needs to have some measurable values within certain tolerance limits. These acceptable values are defined as Specifications in Oracle Quality Module. If the item is not within Specifications, it will be rejected and send back to supplier.

After the collection plan is setup, it is possible to auto trigger this plan for a transaction (for this example Supplier receipt ). Once the data capture process is complete, there are pre defined reports/graphs in Oracle Quality module to measure the supplier Quality and flag/reward the supplier, if necessary.

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Process Flow

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Step 1- Define Collection Elements Company XYZ wants to capture these data points for the critical parts. • Length • Weight • Appearance Each of these data points will be defined as Collection Elements.

Other then these defined collection elements, there are following seeded collection elements, which are Mandatory for all inspection plans. • Quantity • Transaction Date • UOM Name

• Inspection Result

Also there are some seeded context elements, which can be included in the collection plan. • Item • Supplier • Sub inventory

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Collection Element

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Step 2 – Define Specifications (if necessary) For each part, Company XYZ received from a supplier should have the following tolerance limit for each data points • Length • Weight • Appearance

-- 17.00 +/- 0.05 in. -- 24.00 +/- 0.01 lb. -- Scratch Free

For each date points (collection element), these limits will be defined as specification. Through “Specification”, the Company XYZ can ensure that Items received from suppliers conform to supplier requirements.

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Specification

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Step 3 – Define Collection Plan Collection Plan is a data structure needed to hold the Collection elements and the Specifications. This structure tells us which collection elements are relevant, when to collect the data and what actions to take based on data collected in specific collection elements. For Company XYZ, the Collection Plan for inspecting receipts will include all the defined data points (collection elements) with their specifications along with Mandatory & context seeded collection elements.

The collection plan also includes a action (Accept / Reject) that Company XYZ want to initiate in response to quality. Collection Transaction: For each collection, it is necessary to attach it to a transaction in the system. For Company XYZ the collection plan need to initiate for Receipt inspection transaction. Collection Trigger: Collection triggers are events or conditions that a transaction must satisfy before quality data collection is invoked.

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Collection Plan

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Collection Transaction & Trigger

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Step 5 – Capture Data Collection plans that have been associated with collection transaction (Receipt inspection for Company XYZ) can be used to collect quality data, when end perform the transaction in other oracle module. As the end of Company XYZ tries to perform the receipt inspection transaction on critical part, the “Enter Quality Results” window appears automatically and the end is forced to enter the quality Data. Alternatively it is possible to enter the quality data manually by invoking the “Enter Quality Results” window and by searching the applicable collection plan.

If the receive/inspection process is happening outside oracle for Company XYZ, it is possible to load quality results data from external systems into the quality data repository using the Collection Import Interface

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Capture Data – Receiving Inspection Screen

Once you click on “Inspect” button, “Enter Quality Result” screen will open

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Capture Data – Enter Quality Result

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Step 6 – Analyze Quality Data Once a representative sample of data is collected, Company XYZ can analyze the data using the following tool with Oracle Quality module to determine which suppliers are lowering their overall product quality. Trend Chart: Trend charts with in Oracle Quality can be used to analyze data collected over a period of time. For this you can create a trend chart using the length or width as the Y-axis element (element to be analyzed). It is possible to create charts showing all the following: • trends over time of the dimension specifications for all suppliers • trends over time of the dimension specifications for specific suppliers For different suppliers who supplies the same item, this Oracle Quality analysis can reveal if one supplier can maintain closer tolerances than the other. Pareto Charts: Pareto Charts can be used to summarize and chart product defects using Pareto's law to focus on the most often occurring defects 19 7/28/2014

Step 6 – Analyze Quality Data Pareto Charts: Pareto Charts can be used to summarize and chart product defects using Pareto's law to focus on the most often occurring defects. Once Quality results are collected, Company XYZ can create a Pareto chart showing the quantity of failed inspections by collection element, supplier etc.

Custom Reports: Using the Quality Results ReportWriter within Oracle Quality module, Company XYZ can create a variety of custom reports to list and summarize results. For example, a collection plan that contains collection elements like item, Supplier, quantity scrapped, and inspection results, Company XYZ can create a report that summarizes the inspection results as well as a report that uses these same results to show supplier performance.

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Manufacturing Business Transaction Other then the transaction explained above, the collection plans can be invoked for the following transactions. Manufacturing Quality Collection Points: • Move Transactions (Oracle Work in Process) • Completion Transactions (Oracle Work in Process) • Move Lot Based Job (Shop Floor Management)

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Usage across GE (Digital Energy) Bravo Instance (Somersworth Operating Unit – NRPS_ES) There are 2 broad usages of Quality module in Somersworth implementation:  Quality Management  Custom Form to capture additional standalone information against customers and items. Business Process Map (BP 80) for Quality Module (Digital Energy)

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Usage across GE (Digital Energy)  Use for Quality Management

 Receiving Inspection  Non Conformance (NCR) disposition Process

 Manufacturing Inspection  Out-of-box Audit (Finished goods inspection)  Repair Inspection (Used for customer returned material)

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Usage across GE (Digital Energy)  Use as a Custom Form to capture additional information:  Additional information against Customers like: • ORLOC number - Old Customer number from Legacy system • GE for Customer – GE Sales representative who is first for the customer • Order Service Specialist – GE Product expert associated with the customer • Invoice Handling – Whether through EDI / Email / Hard Copy  Additional attributes against Items (“Meters” ) like: • Form • Class • Voltage

 Mapping of Items, Customer and End Customer 24 7/28/2014

Usage across GE (GE-Nuclear)  Quality Management at GE premise (internal)  Inspection Process  NCR Process  Quality Analysis

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Appendix