Oracle Applications 11i System Tablespace

Oracle has always stated, to my knowledge, that for an Oracle Applications instance, the system tablespace needs to be dictionary managed while the non-system tablespaces can be locally managed. i just assumed it was because of how some of the modules intereacted with the system tablespace, and didn't put much thought into it.

this week one of the DBAs here had converted the system tablespace to locally managed in our development instances. since then, we have had perfomance issues and have been seeing a lot of "log file sync" waits during some of the conversion processes.

the question is, why does the system tablespace need to be dictionary managed for an 11i instance? and in turn, what issues would we see by converting to locally managed for the system tablespace and why? i opened an SR with support asking these questions but they have no explicit answer. just that it needs to be.

does anyone have any thoughts on this? we are running 11.5.10.2 on a 10.2.0.2 database with an ASM filesystem.

thanks in advance
haroon

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