Oracle Shop Floor Management What's New in R12
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  • - The first key thing to understand about OSFM is when it fits and who uses it…
  • - Semiconductor Manufacturing is the original intended market for OSFM and is still the sweet spot. Oracle started developing this product about 12 years ago and had been refining it with each release since. Other ERP players like SAP and Microsoft are only recently attempting to build out a shop floor component to their solution (SAP’s legacy customers in semiconductor all run MES systems that are only minimally integrated with the ERP).
  • - This partial list of customers represents a good cross-section of semiconductor accounts: Marvell, Agere, Qualcomm are in the top 10 fabless semiconductor companies (5 of which run Oracle EBS and 1 runs PSFT) SONY, Agilent, Toshiba are huge companies that have semiconductor divisions Synpatics, Zoran, and Genesis represent the middle tier of fabless customers California Micro Devices, SST, FormFactor and Synaptics represent some of our most recent OSFM implementations
  • - Lot-based manufacturing is the core competency of OSFM. Look for lot traceability through the MFG process as a key indicator that OSFM will be a good fit.
  • - OSFM capabilities also apply in other complex manufacturing environments outside semiconductor where lot traceability and lot-based processing are important considerations. This expansion outside semiconductor started mainly in the last 2 years but is accelerating rapidly as the recent improvements in OSFM as a shop floor application make it an attractive solution.
  • - This list of customers covers a broad range of lot-based MFG environments.
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  • - Oracle is dominating in this lot-based MFG space – so we need to convey these key messages with confidence. NO ONE can match us on these and we have the customers to prove it. The fabless semiconductor community in Northern California is very strong with 50+ active companies attending a year-round calendar of events and interacting as a group. This is starting to reach out to the entire West. Customers in other geographies need to be made aware of this since they may have no idea of Oracle’s leadership in this area like a Silicon Valley company would.
  • - We have proven that Oracle will scale with a company as it grows. Lexar Media began implementing OSFM as a $40M company and was acquired by Micron as a $400M+ company Marvell tried QAD, but realized after a year it couldn’t scale so they implemented EBS/OSFM at $200M. Today they are $1B+ Ikanos implemented at < $100M in order to satisfy S1 filing requirements, went live in 90 days and went public soon after Caviuma dn Oxford and both <$50M in revenue but have implemented and gained great value from OSFM already
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  • OSFM is, for many of our customers, a virtual MFG platform that represents their WIP which is tracked in detail in either their own MES or a suppliers MES. This piece may sound trivial but it is critical. Unless an accurate representation of Lot-based WIP can be provided within the ERP, then it cannot perform the necessary tasks of planning or costing or even accurate inventory valuation. OSFM enables the ERP to do this. Furthermore, some customers use OSFM as their shop floor system and enter transaction directly into OSFM.
  • - These 6 areas have been our differentiation in lot-based MFG and continue to be. The extension of these capabilities to lot&serial based MFG opens OSFM up to more non-semiconductor industries and enables detailed wafer tracking in a semiconductor environment.
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  • - Certain customers have products that are lot and serial track AND many semicon customers want to track wafers in a lot and by serial number. The lot and serial controls are enabled, but just as important, the genealogy record now collects both in its history
  • - These are key usability issues for OSFM in the shop floor (for semicon, that’s usually in an in-house test or sort operation) We’ve not had a good lot traveler or dispatch tool previously and had to position a work-around Customers want to have visibility to yield fluctuations in process – this Low Yield trigger meets that need
  • - The first item allows ASCP to plan accurately for in-process WIP The second item supports BOM components that are use in a fixed Qty regardless of lot/job size
  • - Enhance Gantt charting is another usability issue The enablement of PS with OSFM meets a key need for non-outsourced, lot-based MFG companies since their WIP scheduling is typically very process-intensive and requires sophisticated scheduling at a resource or work-center level SNO can be very applicable where companies have to manage a full supply chain from suppliers to sub-cons to Die Bank to 3PL FGI warehouses to Customer inventory hubs / Distributor sites
  • - The first 5 features apply to customers with internal manufacturing operations: The last 3 new features can be used by all OSFM customers: Lot Travelers can be produced now that represent the process, instructions, QA points, etc of the process flow Attribute Mgt allows Partial Moves is another way of saying “a combined move-split transaction” (move a partial qty and thereby split the lot into 2 child lots)
  • - Now, with R12: Serial attributes can be updated in all WIP transactions (attributes tied to the serial #) Lot attributes can be entered in the new html Execution UI Lot attributes can be updated while performing Inventory Lot transactions
  • - Option 1 was the original OSFM WIP methodology where the material and operation details were read from the BOM and routing for each step as it occurred as opposed to be recorded with the job at creation (like in Discrete MFG). The Sales Order Reservations allows for SOs to reserve inventory in the final BOM level of WIP, so finished goods product do not need to be completed and in inventory in order of SOs to reserve against it. This is a valuable addition in quick fulfillment models where product is coming off the line continually into finished goods with little buffer. The exchange of WIP data is done via Rosetta transactions (7B1 and 7B5) that pass WIP job and WIP move information
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  • - These are the competitors we face most regularly. We win (and should win) the vast majority of OSFM-involved deals. The key difference in our offerings is this: Oracle has invested 10 years designing perfecting a lot-based solution within our suite with the help of over 50 of our customers who actively participate in our advisory board. Each of our competitors has only brought a WIP solution to the table as part of their offering in the last 2-3 years and each of those “solutions” involves a separate non-integrated partner offering, WARNING: SAP & Microsoft do a good job of sounding strong in this area, but they fall down in the details. Be sure to insist on demoing things like: lot genealogy, a full set of lot transactions – especially splits in WIP, operation yielded costing. They will come up short – guaranteed!
  • - Camstar is the player we see the most in semiconductor today – they have been able to keep one version of their MESA product fairly current on technology. Several of our customers (who had an MES before implementing Oracle and OSFM) have integrated to Camstar MESA – FormFactor, Genesis are two examples. There are numerous others as well – Wonderware (MES toolkit), Global Factory (used mainly as quality collab application), Datasweep (bought by Rockwell Automation), and Scalarsoft. None of these are true MES systems but may show up as MES-light solutions in various areas. Integration with these solutions is a nightmare and none of them were built with the discipline to be a transaction system for use in auditable costing or accurate planning.
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Oracle Shop Floor Management What's New in R12 Oracle Shop Floor Management What's New in R12 Presentation Transcript

  • Oracle Shop Floor Management What’s New in R12 Tom Greene Solution Architect, Semiconductor Solutions Group
  • The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
  • Agenda
    • Product Positioning
        • Target Customers
    • Oracle Solution
        • Core Features
        • Delta Summary
    • Quick Look at New Functionality
    • Brief Competition Overview
    • Wrap Up/ Q&A
  • Target Customers/ Industries
  • Oracle is still the only ERP vendor to provide comprehensive Shop Floor Management capabilities for the Semiconductor Industry without complicated 3 rd party bolt-ons. The proven success of Oracle’s 130+ semiconductor customers far exceeds any other ERP system! Semiconductor Industry Leadership
  • Developed with Semicon Companies, OSFM is ideal for Semiconductor
  • Key Manufacturing Needs Addressed…
    • Target Customers need to be manufacturing Lot or Lot/serial controlled end items
    • Typical Examples:
      • Semiconductor chips, consumer electronics like DVD players etc, Bicycle Helmets, Medical Devices, rolled metal products. Etc etc
    Essentially if the end product being sold by a prospect has a lot or lot/serial number, OSFM is a potential fit.
  • OSFM capabilities makes it very attractive for many Industries …
    • Medical Devices
    • Metal Rolling and Fabrication
    • Automotive Components
    • Plastic Injection Moulding
    • Optical lens Manufacturing
    • Fiber Optics
    • Jewelry Making Industry
    • Engineer to Order Products
    • And more …
    Many Medical Device, Metal and Automotive companies are OSFM customers today!
  • Recent OSFM Customers in Non-Semiconductor Industries! [Medical Devices] [Metals Finishing] [Aerospace & Defense] [Turbine Engine Maintenance] [Electrical Equipment] [Auto Ancillaries] [Industrial Mfg] [Industrial Mfg] [Consumer Goods packaging] [Solar Panels Mfg] [Auto Ancillaries] [Flat Panel Mfg] [Flat Panel Mfg] [Flat Panel Mfg] [Medical Devices] [PCB Manufacturing] [Photonics Modules]
  • SMB Leadership
  • Oracle’s Value Proposition Functionality Industry Risk Mitigation TCO 4. Minimal Risk 1. Required Functionality 2. Deep Industry Commitment 3. Decreased TCO
  • Why Oracle? Lowest Risk Oracle’s solution is much more extensively tested in the market vs. the competition Oracle’s Lowest Risk Plan ensures customers realize benefits with minimal risk Functional Fit and Predictable Delivery Approach Oracle has extensively demonstrated the required functionality across all High Tech sub segments Many Oracle Partners have also designed a systematic approach to achieve the functionality in 4 months for SMB customers Deep Industry Commitment Oracle’s fabless semicon customers are the largest community by far, helping Oracle produce the best solution, and working together as a community : Oracle fabless semicon customers receive very high value Minimal TCO ~50% TCO advantage over the competition over a 5-year period
  • OSFM spans all Customer Sizes The Only “Early Stage to Titan” Enabler $100M $500M $1,500M ERP/OSFM ERP/OSFM SCM CRM Specialty ERP/OSFM SCM CRM ERP/OSFM SCM “ Early Stage” “ Mid Stage” “ Large” “ Titans” The Oracle Solution Microsoft SAP REINVEST
  • How Delivers
  • Oracle Shop Floor Management Customer Service Order Mgmt / Customer Master Materials Mgmt / BOM Inventory Extends Your Existing Investments
    • Multiple MES feed data through OSFM to ERP; single point of integration
    • Highly scalable regardless of internal or external feeds
    • Global repository & process management
    • Eliminate batch, synchronization, and maintenance headaches
    • Enables the real-time enterprise
    Internal MES MES MES MES Supplier MES RosettaNet / XML XML Supply Chain Planning ERP / Back Office Internet Existing Applications Employees Customers Real-Time Visibility! Quality Management Lot / Serial Genealogy Tracking Mixed Mode – Discrete, Flow, Lot, CTO Shop Floor Management Overview Analyze Adjust Sample
  • Lot-Based Manufacturing Rel 12 extends this to Lot/serial manufacturing as well.. Manage WIP Lot Movement by enforcing Network Routing Model Flexible Processes with network routing infrastructure View Lot Genealogy forward and backward Compute True Operation Cost based on reverse cumulative yield Define Co-Products , distribution splits and yields Split, Merge or Translate released lots to another end item ? ... ... X O = $ A B ? X
  • Product Genealogy Tracking Trace Product Defects to Their Root Cause
    • Trace a customer shipment back to the original source
    • Trace a lot backwards and forwards, through all sectors of manufacturing, across all organizations
    Raw Mat’l Supplier Semi-Finished Goods Finished Goods Shipped Products . . . . . . . . . . . . Chipset CS 2 CS 1 C-2 P-3 C-1 E-2YP E-2JP F-3EP D-1FP D-2FP EM A EM B FL G CPU Flash S3 S3 S2 S1 S1
  • R12 Additions to OSFM Leads to granular and effective control on shop floor
    • Lot/Serial and Attributes Management support
    • Granular and Enhanced Shop Floor Modeling
    • Actual Data Capture and Enhanced Shop Floor Visibility
    • Introduced Dispatch Lists and Lot Travelers
    • Deeper Execution capabilities and Pro-active Alerts
    • Support for Sales Order Reservations
  • Support for Lot/Serial Controlled Assemblies Description
      • Functionality before Release 12:
        • OSFM Supported Jobs with Lot Controlled Assemblies only
      • Functionality in Release 12:
        • OSFM Supports Jobs with
          • Lot Controlled Assemblies
          • Lot and Serial controlled Assemblies
        • Support provided in forms as well as in HTML UI
  • Shop Floor Modeling, Configuration Capabilities Description
      • Functionality before Release 12:
        • Limited Modeling/Configuration Capabilities
      • Functionality in Release 12:
        • OSFM supports
          • Responsibility Configuration
          • Dispatch Lists Configuration
          • Low Yield Trigger Definitions
          • Reason Codes for Scrap, Bonus etc.
          • Lot Travelers
  • Shop Floor Planning Enhancements Features
      • Planning Enhancements
      • ASCP takes actual job start dates for planning
        • Calculates the portion of the job completed prior to plan start date
        • Schedule only portion of the job yet to be completed as of plan start date
      • ASCP support for BOM components
        • Plans for components that are consumed on Lot-basis
      • Support for sequence dependent set-ups
        • Grouping of activities of same setup type
        • Schedule sequence dependent setup resources to resource-instance level
  • Shop Floor Planning Enhancements Features (continued)
      • Planning Enhancements
      • Enhanced Gantt chart capabilities
        • Plan shop floor activities in a much more detailed manner
        • Better view of the shop floor information thru enhanced Planners’ workbench
      • Integration with Production Scheduling (PS)
        • Representation of OSFM Network Routing in PS
          • Item Routing
          • Work Order (Job) Routing
        • Representation of the OSFM Network Routing in Strategic Network Optimization (SNO)
        • Representation of OSFM Lot Based Job (PS Only)
          • Co-Products, Operation Yields
  • Enhanced Shop Floor Execution Description
      • OSFM Supports
      • Dispatch List
      • Move In, Move Out, Move to Next Op
      • Capturing Actual Job Data During Execution
      • Alerts for Low Yields
      • Shop Floor Resources: Status Update, Event Log
      • Electronic Lot Traveler
      • Attributes Management
      • Partial Job Move Transactions
      • Functionality before Release 12:
        • Support for Lot Attributes in Forms (R10) for:
          • Material Receipt, Job Creation, Lot Creation, Move Transactions,
          • WIP Lot Transactions
      • Functionality in Release 12:
        • OSFM provides
          • Support for Serial Attributes in Forms for:
            • Job Creation, Lot Creation, Move Transactions, WIP Lot Transactions
          • Support for Lot Attributes in HTML UI for:
            • Job Move Transactions, WIP Lot Transactions
          • Support for Lot Attributes in Forms for:
            • Inventory Lot Transactions
    Attributes Management for Lot/Serial Control Description
  • Other Enhancements
      • Withdrawal of Option-I (Applicable for existing OSFM customers only)
      • Sales Order Reservation for Lot-Based Jobs
      • Exchange Shop Floor Information with Partners
  • <Insert Picture Here> OSFM R12 Highlights
  • Lot-Serial Genealogy
  • Bonus, Scrap, Resource Down Codes
  • Lot Traveler Templates
  • Some things never change…
  • Mfg Execution Workbench
  • Complete Job / Operation Details
  • All OSFM Transactions in One Screen!
  • Lot Traveler Document
  • Move Transaction in Summary
  • Move Transaction Detail
  • Splitting a lot in WIP
  • Control Access by Responsibility
  • Brief Competition Overview
  • How ERPs handle Shop Floor Mgt
    • One integrated suite (Won 20 of last 25 fabless semicon competitive evaluations; OSFM depth far better)
    • ERP Suite + India partner or ABC for WIP Tracking
    • Axapta ERP + Fullscope extensions
    • Great Plains ERP + Tensoft Extensions
  • The Shop Floor Management Marketplace
    • Suite Vendors: Offer integrated suite (or semi-integrated as in SAP’s case)
    • Niche Players: Mostly localized, but claim “best-of-breed”, and require large integration efforts
    Consilium /
    • -
    • -
    • -
    • o
    • +
    • Operational Yield Costing
    • -
    • -
    • -
    • o
    • +
    • Manufacturing Quality Monitors
    • o
    • o
    • +
    • -
    • +
    • Advanced Shop Transactions
    • +
    • +
    • +
    • -
    • +
    • Inverted Bill of Materials
    • +
    • +
    • +
    • o
    • +
    • Flexible Routing Definitions
    • Consilium
    • PRI
    • Camstar
    • SAP
    • Oracle
    • Capability
    How Shop Floor Mgmt Solutions Stack Up… Notes: + = Good, O = Neutral, - = Poor/NA, ? = Unknown
    • -
    • -
    • +
    • +
    • +
    • Brooks
    • +
    • o
    • o
    • o
    • +
    • Co-Product Modeling
    • +
    • +
    • +
    • +
    • -
    • Real-Time Scheduling
    • +
    • +
    • +
    • +
    • +
    • Resource Instance Modeling
    • o
    • -
    • o
    • o
    • +
    • Lot/ Serial Support
    • -
    • -
    • -
    • -
    • +
    • Enterprise Visibility
    • Consilium
    • PRI
    • Camstar
    • SAP
    • Oracle
    • Capability
    How Shop Floor Mgmt Solutions Stack Up…
    • ?
    • ?
    • -
    • o
    • +
    • Mobile Architecture
    • +
    • +
    • +
    • o
    • -
    • Brooks
    • ?
    Notes: + = Good, O = Neutral, - = Poor/NA, ? = Unknown
  • <Insert Picture Here> Wrap Up / Q&A
  • <Insert Picture Here> Thank You
  •  
  •