Optimizing manufacturing operations using big data and analytics
 

Optimizing manufacturing operations using big data and analytics

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Watch this presentation to find out how customer Wm Morrison Supermarkets PLC enhanced their supply networks by delivering end-to-end visibility into their manufacturing operations using Oracle ...

Watch this presentation to find out how customer Wm Morrison Supermarkets PLC enhanced their supply networks by delivering end-to-end visibility into their manufacturing operations using Oracle Manufacturing Analytics

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  • Deploy incrementally but foundation for an enterprise data warehouse
  • Oracle BI Apps includes prebuilt ETL mappings to many packaged operational applications, including almost the entire Oracle E-business Suite, Fusion, EBS, PSFT, SEBL , JDE, SAP, IBMThe complete environment contains Over 500 Dashboards and PagesOver 3,000 reportsAcross Lines of BusinessOver 9,000 metrics and hundreds of prebuilt, guided analytics and workflows
  • Callout’s with questions – e.g. What % of the plan has been completed?Include Inventoryconsider using problem statements
  • Companies Struggle to Improve Manufacturing ProductionPerformance
  • ProductionExecutive/VP of OperationsPlant wide visibility into production execution against budgets and targetsWhat is the production attainment for the current month?What is the planned production volumes for the next quarter?What are the bottlenecks in the current production process?How much revenue was lost due to rework and scrap?ProductionCostAccountantComplete visibility and tracking of manufacturing and inventory costsWhat are my cost variances at period close by cost element?What are my item gross margins?What are the trends in Manufacturing costs by Quarter?What is the value of Inventory on hand?OperationsManager/SupervisorMonitoring and controlling shop floor executionAre there bottlenecks on the production floor that is causing WIP inventory to build up?Are there bottlenecks on the production floor that is causing excessive production lead time?Is there excessive rework or scrap?Is the actual production just the right amount indicated in the production plans?Is there a shortage of resource that will cause production bottleneck?
  • Unstructured Data
  • SIMPLIFY>APPLICATION INTEGRATIONTo simplify enterprise analytics, Oracle has developed packaged analytic applications that put role-based insights in the hands of users across the organization. These applications aren’t solely pretty dashboards but rather best practice metrics presented in-context of a specific business process and function. There are over 6,000 metrics spanning all functions. They include strategic KPI’s, operational metrics and process measures alike. Beyond the dashboards and metrics, the pre-built analytical data model significantly shortens time to value. We’ve seen customers live inside 90 days.

Optimizing manufacturing operations using big data and analytics Optimizing manufacturing operations using big data and analytics Presentation Transcript

  • Optimizing Manufacturing Operations Using Big Data and Analytics Rajasekhar Katta, Oracle Ramasamy Palaniappan, FCS Gareth Foster, Wm Morrison Supermarkets PLC 1 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Agenda  Oracle BI Applications – An Overview of Oracle Manufacturing Analytics  Customer Success Story – Wm Morrison Supermarkets PLC 2 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Oracle Business Analytics Any Data, Any Source 3 Full Range of Analytics Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Integrated Analytic Applications On Premise, On Cloud, On Mobile
  • BI Applications – Rapid Performance Insight CRM ANALYTICS SALES • • • • • • MARKETING Pipeline Analysis Forecast Accuracy Up-sell/Cross-sell Cycle Times Lead Conversion Sales Team Effectiveness • Campaign Effectiveness • Customer Insight • Product Propensity • Market Basket Analysis • Campaign ROI PRICE • Price Segments • Price Waterfall Analysis • Deal Life Cycle • Deal Desk Analysis • Product Pricing Performance ERP ANALYTICS FINANCIALS SERVICE & CONTACT CENTER • • • • • • • • • • Service Effectiveness Customer Satisfaction Resolution Rates Service Rep Efficiency • Service Cost • Service Trends MANUFACTURING LOYALTY • Member Demographics • Membership Trends • Promotion Cost • Promotion Effectiveness • Points Analysis General Ledger Accounts Receivable Accounts Payable Cash Flow Profitability Expense Management • • • • • • • • Plan to Produce Work Orders Inventory and WIP Quality Resource Usage Bill of Material Costing Kanban HUMAN RESOURCES • Employee Productivity • Compensation • Talent Management • Recruiting Analysis • Learning Analysis • Workforce Profile SUPPLY CHAIN & ORDER MGMT • • • • • • Revenue & Backlog Inventory Analysis Fulfillment Status Customer Status Order Cycle Time BOM Analysis PROJECTS • Project Funding and Budget • Product Cost • Project Revenue • Project Billing • Project Profitability PROCUREMENT & SPEND • Direct & Indirect Spend • Buyer Productivity • Contract Compliance • Supplier Perf. • Purch. Cycle Time • Employee Expense ENTERPRISE ASSET MANAGEMENT • • • • Maintenance History Maintenance Costing Asset Genealogy Breakdown & Preventive • Quality • Inventory ORACLE BUSINESS INTELLIGENCE FOUNDATION SOURCE ADAPTERS: 4 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. AND OTHER OPERATIONAL AND ANALYTIC SOURCES
  • Oracle BI Applications Deeper than Dashboards  Pre-Built Analytic Warehouse • Business Analytics Warehouse • Over 100 star schemas • Designed for analysis and reporting 5 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.  Best Practice Metrics • Over 9,000 metrics • Additional predefined calculations • Based on best practices  Certified App Integration • Pre-mapped integration • Fusion, EBS, PSFT, SEBL , JDE, SAP, IBM • Role-based Security  Role Based Dashboards • Over 500 Dashboards and Pages • Over 3,000 reports • Across Lines of Business
  • Oracle Manufacturing Analytics Overview 6 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Business Challenges Demand Uncertainty Operational Complexity • How can I quickly respond to constantly shifting customer demand? • How do I create a flexible production environment that supports mass customization? • How do I simultaneously minimize costs and ensure consistently high quality? • How do I optimize the use of resources while balancing execution needs and production constraints ? Suppliers Customers Your Company Quality Expectation • How can I quickly respond to quality issues in manufacturing execution? • How do I reduce process variability? 7 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Supply Chain Execution • How can I synchronize sales orders, purchases, and production? • How can I increase inventory velocity & customer service levels?
  • The Need for Analytics What is the current forecast and forecast accuracy? Manufacturing Execution Forecast Customer Demand How much did the planned production change between plans? Generate and approve production plan What % of the plan was executed as planned? Sales Orders Schedule Production Planned Start Date What % of the work orders started late? Open Batch/ Work Order Actual Start Date Issue Materials Consume Resources Complete Operations Produce and Complete Batch /Work Order Completion Date Assign Lots What is the formulation yield for a certain batch? What is the cycle time from work order release to actual start? 8 Release Planned Orders Release Date Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Close Batch/ Work Order Close Date What is the variance in material usage? Analyze work order cycle times Move Completions to Sub Inventory What is the % of resource utilization by department? What are all the finished product lots that consumed a certain raw material lot? What % of Inventory will expire in the next 14 days?
  • The Need for Analytics Manufacturing Execution Quality Open Batch/ Work Order Standardize What are results by collection plan and specification? Sample What is the cost incurred variance by cost element? What % of completions were scrapped and reworked? Analyze What are the test results by collection elements? What is the First Pass Yield? Disposition* Report Complete Operations Produce and Complete Batch /Work Order Close Batch/ Work Order What is the cost relieved variance by cost element? Capture Costs; Analyze Variance Update AR / GL Which GL Variance Account has the largest variance? 9 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Key Challenges Examples Lack of visibility into plan to produce process to help eliminate bottlenecks No insight into detailed production costs and cost variances Unable to identify work order performance related to on-time completions and quality Lack of Inventory Visibility to Improve Return on Assets 10 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. • • • Limited information on production attainment to plans, plant performance etc Quickly identify exceptions in current performance and root cause analysis to identify bottlenecks in the production process Monitor and track resource and material usage and variances • • • Poor visibility into production costs Lack insight into reasons for cost variances Identify causes for cost variances by cost element details and take corrective action • • • No knowledge of critical work orders that are stuck and need to be expedited Little visibility into work order cycle times and work order aging of open orders Track execution of “perfect work orders” that are on-time and high quality • • • • Need to balance customer service levels while minimizing inventory Inability to anticipate stock-out & excess inventory situations Lack of visibility into enterprise-wide inventory status Track sales order fulfillment in conjunction with supply
  • Oracle Manufacturing Analytics Insight into the Plan to Produce Process  Delivers an integrated view of planning, manufacturing execution, manufacturing quality and inventory builds  Summary level KPIs with drill down capabilities to identify exceptions  Cross-functional analysis capabilities with Supply Chain and Order Management , Procurement & Spend and Financial Analytics  Analyze current state manufacturing execution against targets and historical trends – Track all major points in the process by work order & operation – Track costs, quantities and amounts of usage – Track dates between major points in the process Oracle Exalytics and BI Mobile certified 11 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Big Data & Structured Data Discovery Using Endeca Information Discovery 12 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Role Based Best Practices Provide Relevant and Actionable Insight for Everyone Manufacturing Analytics – Key Objectives and Questions by Role Production Executive /VP of Operations Production Cost Accountant Plant wide visibility into production execution against budgets and targets • What is the production attainment for the current month? • What is the planned production volumes for the next quarter? • What are the bottlenecks in the current production process? • How much revenue was lost due to rework and scrap? Complete visibility and tracking of manufacturing and inventory costs • What are my cost variances at period close by cost element? • What are my item gross margins? • What are the trends in Manufacturing costs by Quarter? • What is the value of Inventory on hand? Monitoring and controlling shop floor execution Operations Manager/ Supervisor 13 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. • Are there bottlenecks on the production floor that is causing WIP inventory to build up? • Are there bottlenecks on the production floor that is causing excessive production lead time? • Is there excessive rework or scrap? • Is the actual production just the right amount indicated in the production plans? • Is there a shortage of resource that will cause production bottleneck?
  • Manufacturing Analytics: Sample Dashboards Prepackaged Manufacturing Analytics Manufacturing Executive • Overview • Operations • Inventory • Demand Fulfillment Production Costs • Overview • Variance Analysis 14 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Plan to Produce • Plan Attainment • Pegging Analysis • Plan Comparison Inventory • Overview • Trends • Balances • Aging • Exceptions • Activities • Returns • Bill of Materials Production Performance • Overview • Production Backlog • Material Usage • Resource Usage • Work Order Aging • Work Order Cycle Time • Production Quality
  • Manufacturing Analytics: Sample Metrics Sample Analysis & Metrics Production Execution Work Order Analysis Production Quality • • • • • • • • • • • • • • • • • • • • On Time Production Production Past Due Backlog Production Backlog % Change in Production Quarter Ago Resource Utilization Material Usage Variance Costing • • • • • 15 Planned Cost Actual Cost Completions Cost Cost Incurred Variance Cost Relieved Variance Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Work Order Age # of Open Work Orders Work Order Cycle Times Start Quantity Completed Quantity Late Work Order % Backlog Quantity Scrap % Rework % First Pass Yield Test Quantity Result Value Consumed Quantity Sample Quantity Planning Inventory • • • • • • • • • • Plan to Produce Linearity Planned Amount Production Attainment - Monthly 0-15 days Demand quantity 0-15 days Supply quantity Inventory Turns Inventory On Hand Quantity Obsolete Inventory Expired Inventory Expiring Inventory
  • Sample Dashboard How much of production backlog is past due? How are we tracking to monthly production targets? Are the Inventory levels aligned with demand? Are we producing on-time and with desired quality? Are we producing to plan? 16 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Oracle Manufacturing Analytics Hierarchy of Metrics Service Level Resource Utilization Identify Exceptions GL Variance Account Work Order Cost Variance Production Linearity First Pass Yield Plan-to-Produce Late Work ratio Yield Variance Orders% Root Cause Analysis 17 Strategic Level Metrics Scrap% Operational Rework% Level Metrics Scrap Cost Variance By Value Resource Cost Cost Element Planned Produced Charged Value Value Work Order Standard Material Actual Yield Formula Yield Resource Time Action Completions Qty Cost Charged Start Qty Level Actual Material # of Open # of Work Orders Scrap Qty # of Late Work Orders Metrics Cost Work Orders On-hold Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Hierarchy of Metrics – Production Cost Variance Drill from GL Variance Account to Work Order Details Drill to Detail 18 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Oracle Manufacturing Analytics Hierarchy of Metrics Strategic Level Metrics Operational Level Metrics On Time Shipments Sales Order Fill Rate Demand Fulfillment Backlog Inventory On Hand Production Backlog Action Level Metrics 19 Open Work Order Ordered Quantity Quantity Planned Order Shipped Quantity Quantity Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Production to Plan Linearity Production Attainment of Plan On Time Work Orders % Late Started Work Orders% Work Orders Scheduled Start Actual Start Planned Value Scrap Produced Value Value Work Orders Scheduled Completion Actual Completion Planned Order Quantity Work Order Completed Quantity
  • Oracle BI Applications Cross Module Analysis Supply Chain and Order Management Manufacturing 20 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Analysis spans one or more OBIA modules
  • Complementary Oracle BI Applications Oracle Manufacturing Analytics Module Manufacturing Order Management Analytics Supply Chain and Example of Cross-Functional Analysis Analytics • • Consolidate supply and demand to project fulfillment shortages Sales Order to Work Order pegging Procurement and Spend Analytics • Identify purchase order delays and it’s impact on production backlog Financial Analytics • GL variance account drill down to work order details to analyze cost variance exceptions Enterprise Asset Management Analytics • Provides visibility into spares inventory to analyze enterprise wide valuation of inventory Drill down from bottleneck resources to review planned and unplanned downtime trends for these resources • 21 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • BI and EPM Practice Introduction Platinum Partner Development Alliance Partner BI Pillar Initiative Partner 22 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Frontline Consulting Services A TEKsystems Global Services Division Established Offices North America | APAC | EMEA Business Units Strategic Consulting | Outsourcing | Solutions Key Focus Areas Oracle BI/ EPM | Applications | Integration Customers 23 1996 500+ served Worldwide Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Why FCS • Oracle R&D co-development partner • • • • • • • 24 Demand Signal Repository Oracle On-Demand partner Largest BI Partner in North America In house Exalytics, Exalogic and Exadata machines and CoE #1 Oracle recommended partner for large Global deployments like General Electric, Schlumberger, Emerson, Sony, Clorox, Activision Oracle R&D recommended partner for Manufacturing and EAM Analytics Deep domain experience in Oil & Gas, Industrial, Hitech Manufacturing, CPG Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • FCS BI Practice Summary 400+ Dedicated Resources • 250+ successful live implementations • Tailored processes, templates and reporting for BI Apps implementations / upgrades • Technology Areas – OBIA, Informatica, OWB, ODI, DAC, OBIEE, GoldenGate etc. Tools / Implementation Accelerators (FCS Innovations) o Products to fulfill OBIA gaps –Salesforce Analytics o BI setups using BI Configurator for Peoplesoft, JD Edwards and E-Business Suite o Requirements Gathering using Business Requirements Generator o Flexfields, Chart Fields, User defined fields setup using BI Flex Generator o OBIEE Regression Testing using BI Assurer o BI, ETL data lineage using Path Finder o Project Reporting on mobile using PMO Signal Platinum Partner Data Warehousing Business Intelligence Applications Oracle Business Intelligence Foundation 25 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Development Alliance Partner BI Pillar Initiative Partner Oracle E-Business Suite Supply Chain Management Oracle E-Business Suite Financial Management
  • Manufacturing Transformation at Wm Morrisons PLC Discovery – Build vs. Buy Managed Services Implementa tion New Plant Roll-out Roll-out and Stabilization User Adoption 26 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
  • Welcome to Morrisons Manufacturing An introduction to all manufacturing divisions and sites.
  • Morrisons •18+ Billion £Turnover for Morrisons Plc •FTSE 40 •562 Stores •130,000 employees Morrisons Manufacturing •2nd largest fresh food Manufacturer in the UK • 18 manufacturing sites across the UK, & 1 manufacturing site in Holland • Plans for more sites • A unique ‘Vertical Integration’ business model
  • Drivers for Oracle BI Application •Single version of the truth •Lots of data, but a lack of meaningful information •Decisions made on instinct not facts •Standardization - KPI’s not aligned across sites •Time and effort spend on producing report rather than analysis •Incorrect KPI’s that don’t drive the correct business behaviour •Timely information •Spread sheet culture
  • Process •Oracle recommended FCS - Teksystems as there was gap in Manufacturing offering with BI Application then •Got the reporting requirements created across plants •Evaluated different options – Build vs. Buy •Decided upon Build and Extend - out of the box installation of Manufacturing Analytics with customisation leveraging FCS-Teksystems •Built and tested the solution •Trained users and rolled out solution across multiple plants
  • Key Areas of Focus •Stock Holding •Variance analysis •Plan Attainment •Lot Traceability •ASCP Plan •Quality •Yield •Usage Tracking
  • •Stock Days reduced Reduction •Reduction in working capital •Reduced Wastage •Improved Freshness •Increased flexibility •Job enrichment Improvement •Informed and timely decisions •Promotes the right behaviour
  • Key Learnings •Use standard reports where possible •Consider end to end flow and not just reports •BI is not an just IT project, it affect people jobs and the people element of BI needs consideration. •If implementing BI and the vertical system only do business critical reports which are needed for day1. •Have several smaller releases rather than one major release •Have a clear business requirements •Be flexible as requirements change.
  • Key Learnings •Business engagement is essential •Be aware that BI will need continuous development after the implementation •Challenge requirements - ensure any requirements drive action •Standardise requirement across business units
  • Future Plans •KPI relationships and cross functional working •Integrate Manufacturing and Retail •Near real time loads •Integrate non EBS systems •HR analytics •Significant improvement in quality of Data and master data •Logistics/ Capacity
  • Thank You! Learn More: Oracle.com/businessanalytics 39 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.