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Oracle Advanced Supply Chain Planning along with Oracle Shop ...
 

Oracle Advanced Supply Chain Planning along with Oracle Shop ...

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  • Good Morning : I am Rakesh Kumar. I am the Product Manager for Oracle Shop Floor Management ( OSFM). OSFM, as many of you may be aware is Oracle’s solution for managing lot based manufacturing in an enterprise. It is a part of the manufacturing product family in Oracle E Business Suite.
  • First let me discuss the basic philosophy we have adopted while designing our solutions.. We recognize that e business starts from the shop floor.. We have made efforts to ensure that it is simple and self intuitive, thereby reducing training costs and faster implementations. We leverage the best of the technologies as I would show you in the next slide We provide front and back office integration thereby providing end to end solutions We also recognize that effective collaboration across business processes determines success or failure – and also an excellent point solution is good for nothing unless it integrates well with other business processes.. The next slides shows that enterprises not only need good e business supply chain software but the entire related technology stack to make it work effectively and Oracle can provide a single vendor solution, which help enterprises realize savings outlined earlier..
  • How does Oracle solution with OSFM adds value to your operations. I start off by describing the current supply chain environment at a typical enterprisse.
  • It is a pleasure to be here and I would like to welcome all of you to our session on leveraging real time shop floor information across the supply chain. My special welcome also go to many of you, who are our existing customers of this product and have helped us in defining a road map of this product through our customer advisory board process. This presentation provides you with the details on how you can leverage the information generated at the manufacturing shop floor to support various business processes across the supply chain of an enterprise.
  • Oracle’s Solution for an enterprise starts with a well managed supply chain. As the enterprises grow at a rapid pace, the solution is also architected for taking care of additional ‘plug in’ manufacturing capacity - The additional capacity could either be in house or outsourced. Another key feature of Oracle solution is the visibility of all operations it provides to all the users - which is a big boon for the customer service. Enterprises using the Oracle solution can also model themselves as 100 % virtual manufacturer - a boon for fabless companies in semiconductor industries and many others The solution also conforms to expanded standards - it not only meets Oracle standards but can also be adapted for standards of the other bodies like OAG. Rosettanet etc. Needless to say that all the functionality built into Oracle solutions have a strong customer focus.
  • While developing Oracle solutions with OSFM, we have adopted a different approach. Instead of making a generic solution for all industries, we started this with semiconductor industry and have worked very closely with some of the very big names in the industry. Most of the semiconductor industry leaders are OSFM’s customers today. After having a near perfection in semiconductor industry over the last 5 years, we are now expanding this solution cautiously across other industries..
  • Flexible routings provide significant flexibility in modeling your manufacturing operations. They not only provide inside plant flexibility but can also help you model sub contractor’s plants. Some of our customers are in fact 100 % virtual manufacturing companies and still able to track all the movement of goods.
  • Oracle Advanced Planning has the following powerful key capabilities (that we will talk about later): Sales and operations planning, to better balance demand, supply, and budget decisions Inventory postponement optimization, to take supply chain variability into account when determining your supply chain inventory policies Holistic planning and optimization, to plan all facilities, materials, and resources at the same time Multi-tier collaborative planning, to facilitate automation of forecasting, supply, and inventory replenishment with your trading partners, and Zero downtime global order promising, to recognize capacity limitations of your manufacturing plants, transportation, and suppliers when promising orders to your customers.
  • All these capabilities can be overwhelming to uptake all at once, so where do you start?
  • Even though our MRP offering provides good rudimentary planning capabilities like unconstrained material and capacity planning, basic forecasting, and available to promise, it has no capability to provide a solution for today’s required collaboration with suppliers and customers, and above all, it has no path forward.
  • A better way is to go down the path of Advanced Planning, where the first step could be the implementation of unconstrained supply chain planning. It basically takes the same effort to deploy as MRP and you can reuse all existing setups like routings, boms, items, and so on. Unconstrained ASCP provides right away a number of improvements compared to the traditional MRP. First, you can improve you planners’ productivity through a more productive UI, where planners can make their own working lists and organize their desktop in the way they deem fit. In addition, you can also have multiple planners collaborate on a single plan if that fits your business model. Instead of planning one plan at a time, you can opt to move to a holistic planning model where all your facilities can be planned at the same time. Combined with the improved scalability and performance, it allows you to reduce your planning cycle from months to hours, and we have many customers that can testify to this. Planners can also make better decisions faster, using the more advanced exception resolution capabilities. Not only can they solve exceptions more elegantly, they can also automate the resolution of the exception by modeling the embedded workflows to their business decisions, all translating into reduction of non-value add cost and a better focus on the real problems at hand. Last but not least, the integrated business intelligence allows you to compare your planned metrics to the set targets. Besides all the advantages that I just talked about, a very important argument to consider unconstrained ASCP as a starting point over MRP, is to build a foundation and infrastructure for future growth. (if talking to a 10.7 or 11.0 customer, note that they can migrate to Advanced Planning 11i first and still operate 10.7 or 11.0 ERP if they desire).
  • Unconstrained ASCP does not only provide a more productive user experience for the planner, it also provides better decisions in a faster way.
  • To summarize: …
  • … you need to move away from the “old way” of doing things: supporting a highly fragmented supply chain that is characterized by very high levels of inventory, long cycle times, and poor delivery performance to customers.
  • To be more competitive, you need to move to a better planning solution that leads to a much more efficient supply chain characterized by better collaboration with your trading partners leading to faster planning cycles. Oracle Advanced Planning provides just that.
  • The key takeaways from this presentation that I’d want you to walk away with are: moving from a traditional MRP system to a modern Advanced Planning system yields significant benefits, can be done gradually, and allows you to leverage your existing Oracle ERP and MRP investment. In all, this translates in a low risk, high value transition to a better planning system and a better foundation for future growth.

Oracle Advanced Supply Chain Planning along with Oracle Shop ... Oracle Advanced Supply Chain Planning along with Oracle Shop ... Presentation Transcript

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  • John Conlin Principal Solutions Consultant Manufacturing & Supply Chain Applications Oracle Corporation E Mail : John.Conlin@Oracle.Com
  • e-Business Starts on the Shop Floor
    • Keep it SIMPLE...
    • Leverage Technology
    • Front & Back Office Integration
    • Effective collaboration across business processes determines success or failure
  • Current Supply Chain Environment
      • Solution Weaknesses:
      • Customer requirements are secondary
      • Lack of synchronization between customer demand data & manufacturing supply data
      • Interface management obstacles
      • ERP is NOT integrated with MES
      • Batch interfacing susceptible to “old data”
    Planning MES MES ATP CTP Application Data Warehouse ERP Customer Demand MES Not Synchronized Expensive Interface Management Loose Mfg. History & Genealogy batch batch
  • Oracle Shop Floor Management Solution Overview
  • e-Business Platform Starts with... Well Managed Supply Chain (Visibility)
    • Architected for “plug-in” Capacity
    • Leverage Visibility into Customer Service
    • Evolve into Virtual Supply Chain
    • Conform to Expanded Standards
    • Fully Integrated Supply Chain Planning
    • Customer/Demand Focus...
  • OSFM is a solution, initially developed for the Semiconductor Industry…. Major Semiconductor industry leaders are OSFM’s customers today! The solution is now being expanded across all industries
    • Oracle Manufacturing Solution:
    • Customer responsiveness enabled through real-time data
    • Real-time global WIP, inventory visibility, planning
    • Multiple MES feeding data through OSFM to ERP
    • Instant access via Internet
    Customer Sales Oracle Shop Floor Management Supplier MES Internal MES Oracle Integrated Supply Chain Solution Oracle ERP SC Planning ATP Server Demand Planning Customer Relationship Management (CRM) Supply Chain Management (SCM) Product Innovation Management (PIM) MES MES MES Internet
  • Flexible Routing Definitions
    • “ Primary” route to define:
      • standard costs for an assembly
      • manufacturing lead times
      • used for planning
    B A F C D E H G Possible Networks B A F C D E H G Primary Route B A F C D E H G Actual Route
    • Comprehensive routing network
      • model your shop floor
      • define possible rework points
      • can be just linear
    • Actual route taken while in WIP
      • compare with primary route:
      • cost variances
      • dynamically built
    E B C
  • Advanced WIP Transactions Split one lot to out to multiple lots Merge multiple lots into one lot Update Assembly for existing lot Update Routing lot to another lot for a different assembly Bonus in lots beginning at any operation sequence Update Quantity of an open lot at any operation sequence
  • Customer Service Real-time Global Lot Status Oracle ShopFloor Management Flexible Routing Definition WIP Lot Moves OSFM Lot Transactions All Lot Transactions are Mirrored in OSFM (Real-time) ? ... ... Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems
  • Customer Service Lot Tracing & RMA (Genealogy) Oracle ShopFloor Management - All Operations are Captured - Trouble Shooting for Engineers - Parent Child Relations Complete Lot Genealogy Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Wafer Fab Probe Assembly & Test Finished Good Ship Product . . . . . . . . . . . . VS0548A VS0548B VS0548A/1 VS0548A/2 VS0548B/1 VS0548B/2 VS0548B/3 VS0548A/1 VS0548B/1 VS0548B/2 VS0548B/3 VS0548B/1 VS0548B/3 VS0548A/1 VS0548A/1/1 VS0548A/1/2 VS0548B/3/2 VS0548B/3/1 VS0548B/1 VS0548A/1/1 VS0548A/1/2 VS0548B/3/2/1 VS0548B/3/2/2 VS0548A/1/1/1 VS0548A/1/1/2 VS0548A/1/1/3 VS0548A/1/2/1 VS0548A/1/2/2 VS0548B/3/2/1/1 VS0548B/3/2/1/2 VS0548/B/3/3/2 Supra 300 Supra 300 Supra 300 Supra 300 Supra 300 . . . . . . . . . . . .
  • Cost Management Yielded Costing by Operation (Virtual Daily Close) Oracle ShopFloor Management Cumulative & Reverse Cumulative Yield at each Operation Operation Yielded Costing Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems 100% Operational Yield Shrinkage at Each Operation 100% Cumulative Yield 90% 90% 78% 70% 85% 60% 0% 10% 12% 15% Yield Cost $20 $120 $265 $850 vs $510 Total Shrinkage 0% 10% 30% 40% X O = $
  • Real-Time Synchronized Supply Data Validated & Ready for Planning Oracle ShopFloor Management Manufacturing Related Information Event Based Planning Paradigm
    • As Manufacturing Transactions occur OSFM “readies” data for effective planning
    • Data is Cleaned & Validated
    Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems
  • Transaction Support Via Rosettanet / OAG Ability to link vendors using different software
    • Working on support for important WIP Txns
    • Rosettanet PIP 7B1 ( formerly 3D8) Manufacturing
    • Inbound as well as outbound
    Oracle ShopFloor Management XML Based Integrations Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems
  • X A B C Inverted Bill (“Co-Products”) * primary B X A C Resulting Bills Common Bills Reference Co-Product Definition X A B ?
  • Existing Customers
  • Partial List of OSFM Customers
    • Highlights
    • 75+ customers
    • Replacing MES in Semiconductor Assembly & Test
  • Real-Time Synchronized Supply Data Validated & Ready for Planning Oracle ShopFloor Management Manufacturing Related Information Event Based Planning Paradigm
    • As Manufacturing Transactions occur OSFM “readies” data for effective planning
    • Data is Cleaned & Validated
    Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems
  • Oracle Advanced Planning Moving from black and white to color: Why upgrade from MRP to Advanced Planning
  •  
  • Key Capabilities
    • Sales and operations planning
    • Inventory postponement optimization
    • Holistic planning and optimization
    • Multi-tier collaborative planning
    • Zero downtime global order promising
  • Where To Start?
  • From MRP …
    • Unconstrained material and resource planning
    • Basic forecasting
    • Basic available to promise
    • No collaboration
    • No path forward
    MRP Oracle Applications (10.7, 11.0, 11i)
  • … to Unconstrained ASCP
    • Improve planner productivity
      • New productivity enhancing UI
      • Planner collaboration
    • Reduce your planning cycle time from months to hours
      • Holistic planning; incl. Multi-Org
      • Improved scalability and performance
    • Make better decisions faster
      • Improved exception resolution
      • Improved modeling
    • Reduce non-value added costs
      • Workflow based exceptions
    • Drive continuous improvement
      • Integrated business intelligence
    • Foundation for future growth
      • Common Infrastructure
    Same effort to deploy as MRP – Reuse all existing setup! ASCP = Advanced Supply Chain Planning MRP ASCP APS Common Infrastructure Oracle Applications (10.7, 11.0, 11i) Unconstrained
  • Unconstrained ASCP
    • Use a single plan to plan your entire supply chain to reduce planning cycle time
      • Simultaneous material and capacity planning
      • Plan process, discrete, mixed models, and lot-based
      • Perform forecast consumption inline
    • Plan at aggregate level, as well as detailed level in a single plan, with better accuracy
      • Time granularity in plan horizon
      • Account for operational yields
    • Leverage advanced problem solving and analysis tools
      • Comprehensive exception management and automation through workflow
      • Extensive pegging capabilities
    • Measure plan to target performance – S.C. Intelligence
      • Integrated performance management
    • Integration to Daily Business Intelligence (DBI) – Management Analysis
    Make better decisions leveraging a more comprehensive model
  • Summary
  • Move from black and white … Multi-step, high latency, limited collaboration Customers Suppliers Tier 2 Tier 1 Marketing Forecast Sales Forecast Mfg Forecast Distribution Plans Production Plans Manufacturing Plans t = weeks ? Demand Planning Process Supply Planning Process
  • … to Color: Oracle Advanced Planning E-Business planning solution: zero latency, real-time collaboration Portal Internet Customers Suppliers Tier 2 Tier 1 Portal Consensus forecast and prod. plan Supply Planning Demand Hub & Multi-dimensional analysis Automated Exceptions S&OP Process Single holistic plan Business Intelligence Sales Marketing Mfg Manufacturing
  • Key Takeaways
    • Achieve significant value with a better planning system
      • Improve customer service up to 35%
      • Reduce inventory up to 50%
      • Improve forecast up to 35%
      • Reduce planning cycle time to hours
    • Progress at your own pace, transition gradually
      • Quickly start with unconstrained planning
      • Move up to constrained or optimized planning
      • Leverage out-of-the-box integration to rapidly extend planning footprint
    • Leverage your existing Oracle ERP and MRP investment
      • You’ve already done most of the work by setting up and maintaining the core business data elements
    Low risk, high value transition to a better planning system
  •