Item Master Module

Configure and manage product information across TMX Semiconductor's global operations

Centralized vs. Organization-Specific Item Setup

TMX wants to establish a consistent item repository across Santa Clara HQ, Indore, and Kolkata facilities. How should the item master be configured?

Santa Clara
(HQ)

→

Master Org

→

Indore
(Mfg)

↔

Kolkata
(Mfg)

Organization	Role	Item Count	Local Attributes
Santa Clara	Master/HQ	5,000	Design specs
Indore	Manufacturing	3,500	Local suppliers
Kolkata	Manufacturing	3,200	Regional compliance

Select Item Master Configuration:

Item Categories and Attributes for Semiconductor Products

TMX produces various semiconductor components. Design the item category hierarchy and key attributes for effective classification.

Semiconductors

↓

Processors

↓

Memory

↓

Sensors

Category	Key Attributes	Example Values	Validation
Processors	Clock Speed, Cores	2.4GHz, 8-core	Required
Memory	Capacity, Type	8GB, DDR4	Required
Sensors	Range, Accuracy	0-100°C, ±0.5°	Optional

Select Category Structure:

Unit of Measure Consistency Across Organizations

TMX needs to standardize units of measure for inventory transactions between Indore and Kolkata facilities.

Primary UOM
(Each)

→

Conversion
Rules

→

Secondary UOM
(Box/Tray)

Item Type	Primary UOM	Secondary UOM	Conversion
Chip TMX-2000	Each	Tray	1 Tray = 25 Each
Wafer W-300	Each	Cassette	1 Cassette = 50 Each
Component C-100	Each	Box	1 Box = 100 Each

Select UOM Strategy:

Lot & Serial Number Control Configuration

TMX must track semiconductor batches for quality control and customer traceability requirements.

Receipt

→

Lot/Serial
Assignment

→

Track in
Production

→

Ship to
Customer

Product Class	Control Type	Generation	Traceability
High-Value Chips	Serial	At Receipt	Full genealogy
Standard Components	Lot	At Production	Batch level
Raw Materials	Lot	Supplier Lot	Inbound only

Select Control Strategy:

Lifecycle States: Prototype → Production → Obsolete

Define lifecycle management rules for TMX's semiconductor products from development through end-of-life.

Prototype

→

Pilot

→

Production

→

Phase-Out

→

Obsolete

Lifecycle Stage	Duration	Transactions Allowed	Planning
Prototype	6 months	R&D only	Excluded
Production	24 months	All transactions	Full MRP
Obsolete	Permanent	Issues only	No planning

Select Lifecycle Control:

Item Templates and Data Inheritance Rules

Create templates to standardize item creation and ensure consistent attributes across product families.

Master Template

Processor
Template

Memory
Template

Sensor
Template

Template	Inherited Attributes	Override Allowed	Items Using
PROC_TEMPLATE	Planning, Costing	Lead times only	1,200
MEM_TEMPLATE	All attributes	None	800
SENS_TEMPLATE	Basic only	Most attributes	500

Select Template Strategy:

Inventory Transactions Module

Manage inventory movements and controls across TMX's manufacturing locations

Inbound Receipts at Indore Organization

Configure the receiving process for raw materials arriving at the Indore manufacturing facility from various suppliers.

PO Created

→

ASN Received

→

Physical Receipt

→

Inspection

→

Put Away

Receipt Type	Volume/Month	Inspection %	Lead Time
Silicon Wafers	5,000 units	100%	2 days
Chemicals	200 drums	Sample 10%	1 day
Packaging	10,000 units	Visual only	4 hours

Select Receipt Strategy:

Subinventory Configuration and Transfers

Design subinventory structure for the Indore facility to optimize material flow and control.

Main Warehouse

Raw Materials

WIP Store

Finished Goods

Quality Hold

Cleanroom

Shipping

Subinventory	Type	Locator Control	Asset Value
RAW-MAT	Storage	Required	$2.5M
CLEANROOM	Manufacturing	Dynamic	$5.0M
FG-STORE	Storage	Required	$8.0M

Select Transfer Control:

Cycle Counting Setup and Thresholds

Implement cycle counting program to maintain inventory accuracy without disrupting production.

ABC Analysis

→

Count Schedule

→

Execute Count

→

Variance Analysis

Class	Value %	Count Frequency	Tolerance
A Items	80%	Monthly	0.1%
B Items	15%	Quarterly	1%
C Items	5%	Annually	5%

Select Count Strategy:

Inter-Organization Transfers: Indore ↔ Kolkata

Configure transfer processes between Indore and Kolkata facilities to balance production capacity.

Transfer Request

→

Approval

→

Ship from Source

→

In-Transit

→

Receive at Dest

Transfer Type	Frequency	Transit Time	Cost Method
Semi-Finished	Weekly	2 days	Standard + Freight
Raw Materials	As needed	3 days	Average + Freight
Emergency	Daily	1 day	Actual + Premium

Select Transfer Method:

Inventory Valuation Method (Standard vs. FIFO)

Select the appropriate costing method for TMX's semiconductor inventory valuation.

Standard Cost

Fixed for period

FIFO Cost

Actual by receipt

Product Type	Price Volatility	Current Method	Variance %
Raw Silicon	High (±20%)	Standard	15%
Finished Chips	Low (±5%)	Standard	3%
Chemicals	Medium (±10%)	FIFO	8%

Select Valuation Method:

Period-End Close and Costing Roll-Up

Design the month-end closing process to ensure accurate cost reporting across all facilities.

Transaction
Cutoff

→

Cost
Processing

→

Variance
Analysis

→

GL
Transfer

Close Activity	Day	Duration	Critical?
Transaction Freeze	Day 1	2 hours	Yes
Cost Roll-Up	Day 2	4 hours	Yes
Reconciliation	Day 3	8 hours	No

Select Close Process:

Procure-to-Pay Module

Streamline procurement processes from requisition through payment

Creating Purchase Requisitions for Raw Materials

Configure requisition process for TMX's procurement of silicon wafers and specialty chemicals.

Need
Identified

→

Create
Requisition

→

Approval
Workflow

→

Convert
to PO

Requisition Type	Monthly Volume	Avg Value	Lead Time
Silicon Wafers	20 requests	$50,000	30 days
Chemicals	50 requests	$10,000	14 days
MRO Supplies	100 requests	$2,000	7 days

Select Requisition Creation:

Approval Hierarchy Design

Design multi-level approval matrix based on purchase value and category for both facilities.

Requisition

< $10K

Manager

$10K - $100K

Director

> $100K

VP + CFO

Amount Range	Approver Level	SLA (Days)	Escalation
< $10,000	Department Manager	1	Auto-approve
$10K - $50K	Site Director	2	Next level
> $100,000	VP + CFO	3	CEO

Select Approval Model:

Supplier Qualification and Risk Scores

Implement supplier evaluation system to minimize supply chain risks for critical components.

Supplier
Registration

→

Qualification
Assessment

→

Risk
Scoring

→

Approved
Status

Supplier Type	Risk Factors	Score Range	Review Cycle
Wafer Suppliers	Quality, Capacity	85-95	Quarterly
Chemical Vendors	Safety, Compliance	80-90	Semi-Annual
Logistics	Delivery, Cost	75-85	Annual

Select Qualification Approach:

Purchase Order Auto-Approval Configuration

Configure rules for automatic PO approval to expedite routine purchases while maintaining control.

PO Creation

Rule Engine

Auto-Approve

Manual Review

Exception

Criteria	Threshold	Auto-Approve?	% of POs
Catalog Items	< $5,000	Yes	60%
Preferred Vendor	< $25,000	Yes	25%
New Supplier	Any amount	No	15%

Select Auto-Approval Rules:

2-Way vs. 3-Way Invoice Match Rules

Define invoice matching policies to balance payment accuracy with processing efficiency.

2-Way Match

PO ↔ Invoice

3-Way Match

PO ↔ Receipt ↔ Invoice

Purchase Type	Match Rule	Tolerance	Volume/Month
Raw Materials	3-Way	0.5%	200
Services	2-Way	2%	150
Capital Equipment	3-Way	0%	10

Select Matching Strategy:

Payment Processing Setup (Terms, Calendars)

Configure payment terms and processing calendars to optimize cash flow while maintaining supplier relationships.

Invoice
Approved

→

Payment
Terms

→

Schedule
Payment

→

Process
Payment

Supplier Category	Payment Terms	Discount	Payment Method
Strategic	Net 30	2/10 Net 30	ACH
Standard	Net 45	None	Check/ACH
International	Net 60	1/15 Net 60	Wire

Select Payment Strategy:

Order Management Module

Configure order-to-cash processes for TMX's global customer base

Capture Customer Orders from Global Clients

Configure order capture channels for TMX's diverse customer base across regions.

Order Sources

EDI

Portal

Email

Manual

Channel	Volume %	Customer Type	Processing Time
EDI	60%	Large OEMs	Automatic
Web Portal	25%	Mid-size	15 minutes
Email/Fax	15%	Small buyers	2 hours

Select Order Capture Strategy:

Configure Available-to-Promise (ATP) Rules

Set up ATP rules to provide accurate delivery promises while optimizing inventory allocation.

Order
Request

→

ATP
Check

→

Promise
Date

→

Reserve
Inventory

Product Type	ATP Horizon	Safety Stock	Allocation Rule
Standard Chips	90 days	15%	FIFO
Custom Products	180 days	5%	Priority-based
EOL Items	Current only	0%	Manual

Select ATP Configuration:

Order Holds, Exceptions, and Approvals

Design hold and exception management processes to handle credit, compliance, and quality issues.

Order Placed

Credit Hold

Compliance Hold

Manual Hold

Hold Type	Trigger	Release Authority	Avg Duration
Credit	Over limit	Finance Manager	4 hours
Export License	Restricted country	Compliance	48 hours
Quality Review	New product	Quality Manager	24 hours

Select Hold Management:

Shipping Setup by Organization and Region

Configure shipping methods and carrier integration for Indore and Kolkata to global destinations.

Pick
Release

→

Pack
Confirm

→

Ship
Confirm

→

Track
Delivery

Ship From	Region	Carrier	Transit Time
Indore	Asia-Pacific	DHL Express	2-3 days
Kolkata	Europe	FedEx Priority	3-5 days
Both	Americas	UPS/FedEx	4-7 days

Select Shipping Strategy:

Invoice Format and Print Rules

Design invoice formats to meet diverse customer requirements and regional regulations.

Ship Confirm

Commercial
Invoice

Tax
Invoice

Proforma
Invoice

Customer Region	Invoice Type	Format	Delivery
North America	Commercial	PDF	Email
Europe	VAT Invoice	XML/PDF	EDI
Asia	Tax Invoice	Paper/PDF	With shipment

Select Invoice Configuration:

Credit Check and Limit Configuration

Establish credit management policies to minimize risk while supporting sales growth.

Customer
Profile

→

Credit
Assessment

→

Limit
Assignment

→

Periodic
Review

Customer Tier	Credit Limit	Payment Terms	Review Frequency
Strategic	$5M+	Net 60	Annual
Standard	$500K-$5M	Net 30	Semi-Annual
New/Small	<$500K	Prepay/Net 15	Quarterly

Select Credit Policy:

Manufacturing Module

Configure production processes for TMX's semiconductor manufacturing operations

Work Definitions for Assembly Lines

Define work order types and templates for TMX's semiconductor assembly operations.

Work Definition

Standard
Assembly

Custom
Build

Rework

Work Type	Duration	Resources	Output/Day
Chip Assembly	8 hours	5 operators	1,000 units
Testing	4 hours	3 operators	2,000 units
Packaging	2 hours	2 operators	5,000 units

Select Work Definition Strategy:

Routing and Resource Scheduling

Configure production routing and resource allocation for optimal throughput.

Wafer
Prep

→

Photo
Lithography

→

Etching

→

Assembly

→

Test

Operation	Resource	Capacity	Utilization
Lithography	Scanner-01	100 wafers/hr	85%
Etching	Etcher-A/B	150 wafers/hr	75%
Testing	Tester-1/2/3	500 chips/hr	90%

Select Scheduling Method:

Alternate BOM Setup by Product Family

Configure alternate bills of materials to handle component substitutions and multiple sourcing.

Primary BOM

↓

Alternate 1
(Cost)

↓

Alternate 2
(Performance)

Product	Primary BOM	Alternate	Selection Criteria
TMX-3000	Grade A Silicon	Grade B Silicon	Availability
TMX-5000	Gold wire	Copper wire	Cost target
TMX-7000	Supplier A resin	Supplier B resin	Lead time

Select Alternate BOM Strategy:

Work Order Lifecycle and Execution

Define work order statuses and execution controls for production tracking.

Created

→

Released

→

In Process

→

Complete

→

Closed

Status	Allowed Actions	Duration	Volume
Released	Pick components	4 hours	50/day
In Process	Report operations	24 hours	45/day
Complete	Quality inspection	2 hours	43/day

Select Execution Control:

WIP Accounting and Resource Absorption

Configure work-in-process accounting methods and overhead absorption rates.

Material
Issue

→

Labor
Booking

→

Overhead
Applied

→

WIP
Value

Cost Element	Method	Rate	% of Total
Material	Actual	N/A	40%
Labor	Standard	$50/hour	25%
Overhead	Absorption	200% of labor	35%

Select Costing Method:

Scrap, Rework, and Yield Monitoring

Implement controls for managing production losses and monitoring yield rates.

Production Output

Good Units
85%

Rework
10%

Scrap
5%

Product Line	Target Yield	Actual Yield	Scrap Cost/Month
Advanced Chips	90%	85%	$250K
Standard Chips	95%	93%	$100K
Legacy Products	93%	91%	$50K

Select Yield Strategy:

Demand Planning Module

Forecast and plan demand for TMX's semiconductor products

Import Sales Forecast from HQ

Configure integration to import sales forecasts from Santa Clara HQ into the planning system.

HQ Forecast
System

→

Data
Validation

→

Import
Mapping

→

Oracle
Demand Plan

Forecast Type	Frequency	Horizon	Granularity
Sales Forecast	Monthly	12 months	Product/Region
Customer Commit	Weekly	3 months	Customer/SKU
Market Intel	Quarterly	24 months	Product Family

Select Import Method:

Forecast Consumption Rules for Indore & Kolkata

Define how customer orders consume forecast to maintain accurate demand signals.

Forecast
100 units

→

Order
60 units

→

Consumed
Forecast

→

Net Forecast
40 units

Consumption Rule	Time Fence	Priority	Application
Forward	30 days	Customer orders	Standard products
Backward	7 days	Urgent orders	All products
No consumption	N/A	Prototype	New products

Select Consumption Strategy:

Historical Sales Analysis for Forecast Accuracy

Configure statistical forecasting models using historical sales data.

Historical Data

Trend
Analysis

Seasonal
Patterns

Causal
Factors

Product Group	History Used	Accuracy	Best Model
Processors	36 months	85%	Exponential
Memory	24 months	78%	Moving Average
New Products	6 months	65%	Judgmental

Select Forecasting Method:

Exception Alerts and Manual Overrides

Set up exception management to identify and address forecast anomalies.

System
Forecast

→

Exception
Detection

→

Alert
Generation

→

Manual
Review

Exception Type	Threshold	Alert Level	Action Required
Demand Spike	>50% increase	High	Manager review
Forecast Error	>20% MAPE	Medium	Planner adjust
No History	New item	Low	Manual input

Select Exception Handling:

Forecast Approval Process

Design approval workflow for demand forecasts before release to supply planning.

Draft
Forecast

→

Sales
Review

→

Operations
Review

→

Executive
Approval

Review Level	Focus Area	SLA	Authority
Sales Team	Customer commits	2 days	Adjust ±20%
Operations	Capacity check	1 day	Flag constraints
Executive	Strategic alignment	1 day	Final approval

Select Approval Process:

Forecast Collaboration and Versioning

Enable collaborative forecasting with version control across global teams.

Master Forecast

Version 1.0
Baseline

Version 1.1
Sales Update

Version 2.0
Approved

Version Type	Purpose	Access	Retention
Working	Daily updates	Planners	7 days
Submitted	Review cycle	Managers	30 days
Approved	Execution	All users	12 months

Select Collaboration Model:

Supply Planning Module

Optimize supply plans across TMX's global manufacturing network

Define Planning Organizations and Scope

Configure the planning scope to include all TMX facilities and define planning hierarchies.

Global Planning

Santa Clara
(Demand Hub)

Indore
(Supply Node)

Kolkata
(Supply Node)

Organization	Planning Role	Items Planned	Horizon
Santa Clara	Demand Aggregation	All SKUs	12 months
Indore	Production Planning	3,500 items	6 months
Kolkata	Production Planning	3,200 items	6 months

Select Planning Scope:

Planning Parameters: Lead Time, MOQ, Safety Stock

Set critical planning parameters to balance service levels with inventory investment.

Lead Time
Analysis

→

MOQ
Definition

→

Safety Stock
Calculation

→

Parameter
Validation

Parameter Type	Calculation	Review Cycle	Override
Mfg Lead Time	Historical + Buffer	Monthly	Planner
Purchase MOQ	Supplier defined	Quarterly	Buyer
Safety Stock	Stats + Service	Weekly	Auto-adjust

Select Parameter Strategy:

Run Constrained Supply Plan (Simulated Run)

Execute a constrained supply plan considering capacity, materials, and resource limitations.

Demand
Input

→

Constraint
Check

→

Plan
Generation

→

Results
Analysis

Constraint Type	Current Util	Max Capacity	Impact
Lithography	92%	2,000 wafers/day	Bottleneck
Test Equipment	78%	10,000 units/day	Medium
Packaging	65%	15,000 units/day	Low

Select Planning Mode:

Exception Messages and Resolution Options

Configure exception handling for supply-demand imbalances and constraint violations.

Plan Exceptions

Late Orders

Capacity
Overload

Material
Shortage

Excess
Inventory

Exception Type	Count	Severity	Resolution Options
Late Delivery	45	High	Expedite, Split order
Over Capacity	12	Critical	Overtime, Outsource
Component Short	28	Medium	Substitute, Defer

Select Exception Handling:

Make vs. Buy Recommendations

Configure decision logic for determining whether to manufacture internally or purchase externally.

Cost
Analysis

→

Capacity
Check

→

Strategic
Fit

→

Make/Buy
Decision

Product Category	Internal Cost	External Cost	Recommendation
Core Processors	$45/unit	$65/unit	Make - Strategic
Standard Memory	$12/unit	$10/unit	Buy - Cost
Custom Sensors	$28/unit	$35/unit	Make - IP Protection

Select Decision Criteria:

Release Planned Orders to Execution Modules

Configure the release process to convert planned orders into executable transactions.

Planned
Orders

→

Release
Rules

→

Create
WO/PO

→

Execute

Order Type	Release Horizon	Approval	Volume/Week
Work Orders	2 weeks	Auto	250
Purchase Orders	4 weeks	Buyer review	150
Transfer Orders	1 week	Auto	75