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Analogic Link08 Presentation

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Analogic/Zannett Lean Replenishment Engine with Peoplesoft 9.0 to Oracle Application User Group

Analogic/Zannett Lean Replenishment Engine with Peoplesoft 9.0 to Oracle Application User Group


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  • Physical Transformation - Encompasses facility consolidation, headcount reduction, outsourcing of non strategic work. Continued focus on Fixed versus Variable cost structure. Process Robustness - Optimization of SAP end to end implementation for Supply Chain execution optimization. Closer integration within Key leverage points of Sales, Marketing and Customer Relations Competitive Advantage - Provide key competitive advantage through operational excellence and cross Business goals.
  • Transcript

    • 1. Tracy Galvin Director – Corporate Supply Chain Mgt Analogic Corporation LINK 08 November 18 – 20, 2008 Arnie Radwich Consultant Zanett, Incorporated Mike Connaughton Manager – New Products Introduction Analogic Corporation Lean Replenishment Engine Oracle Applications User Group LINK 08 November 18 – 20, 2008 Hilton Resort on Mission Bay San Diego, CA
    • 2. LINK 08 November 18 – 20, 2008 • Overview of Analogic • Transforming Supply Chain • Lean Replenishment Engine • PID Replenishment • Current Status • Learning’s From the 7.5 to 9.0 Upgrade • Questions Topics
    • 3.
      • Peabody, MA, USA
      • Founded 1967
      • Revenues (2008) $413 million
      • Employees – 1650
      • Engineering Staff – 460
      • Scientists, Physicists & Mathematicians
      • Design Engineering
      • Facilities – U.S., Canada, Denmark & the U.K.
      Analogic Corp. (NASDAQ: ALOG) S&P SmallCap 600 Index Russell 2000 Index
    • 4.
      • Analogic is a growth-oriented, high-technology imaging and signal processing company, providing products and services to Original Equipment Manufacturers (OEMs) and end users in high-growth medical diagnostics and security markets.
      • We are recognized worldwide for advancing the state of the art in
      • • Computed Tomography
      • • Magnetic Resonance Imaging
      • • Ultrasound
      • • Digital Mammography
      • • Patient Monitoring
      • • Automatic Explosives Detection
      • • Advanced Signal Processing
    • 5. Analogic conceives, develops, and manufactures some of the world’s most advanced electronic systems and subsystems for applications in… Health and Security
    • 6. Core Competencies
        • Signal Acquisition & Conditioning
        • High Speed Signal & Image Processing
        • High Performance Computing
        • Precision A/D Conversion
        • Detector & Transducer Technologies
        • X-Ray Beam Technology
        • Ultrasound Technology/Transducers
        • Complex Mechanisms
        • Precision Power Systems
        • Complex System and Application SW
        • Mechanical Engineering
    • 7. Health Technology
      • Medical Imaging Subsystems for OEMs
          • World’s Leading OEM Supplier of:
          • • CT Data Management Systems (DMS)
            • Integrated DAS (Data Acquisition System)/Detector Assemblies
          • • Magnetic Resonance Imaging (MRI) Power Systems
            • RF Amplifiers
            • Gradient Amplifiers
          • • Direct Digital Radiography Detectors
          • • Clinical Ultrasound Transducers
          • (OEMs) Original Equipment Manufacturers
    • 8.
      • Fluorescence Molecular Tomography (FMT)
      • Small Animal Optical Imaging Instrument
        • Developed for Start Up company – area of expertise in fluorescent
        • markers and chemistry
      Molecular Imaging
    • 9. Security Technology Checked & Checkpoint Luggage Screening • A leading developer and manufacturer of advanced security imaging systems for checked and checkpoint luggage. Received 5 TSA development contracts • All systems provide automatic detection, 3-D imaging of bag contents and network capability • New systems under development provide: Higher throughput Higher detection rates Lower false positive rate Faster threat resolution
    • 10. Full Service OEM Partner
      • Concept and Specification Phase
      • • Product Requirements/Preliminary Specs
      • Development Plan
      • Schedule
      • Proposal
      • Design Phase
      • • Risk Analysis
      • Detailed Specs
      • Design/Interface/Manufacturing/Procurement/Test
      • Prototype Phase
      • Alpha/Beta
      • EMC/Safety Testing/Certifications
      • Customer Clinical Trials
      • Manufacturing Documentation
      • Test Reports
    • 11.
      • Centralized Planning & Procurement
      • Low-cost sourcing
      • Supply Chain Integration
      • Top Line Revenue Contribution from Supply Chain Relationships
      Physical Transformation Process Robustness Competitive Advantage Value Decentralized to Centralized Transformation Tracy Galvin, November 2006 Supply Chain Transformation Capability Evolution
    • 12. ERP Community Legacy Collaboration Adaptability
      • Cross Functional Integration
      • Common Data for Inventory and Costing
      • Standardized Business Processes
      • Greater insight into business process and data issues
      • Internal Automation
      • “ One size fits all” planning
      • Functional Focus
      • Disjointed processes
      • Manual Data Correction Points
      • System Integration from Customer to Suppliers
      • Responsibilities shared with Suppliers on replenishment and inventory levels
      • Advanced Planning
      • Lifecycle
      • “ What if” Modeling
      • Configurable
      • Material Type
      • Real Time Inventory Allocation
      • Process Integration from Customer to Supplier
      • Constrain and Rule Based Planning and Execution
      • Dramatic Working Capital reduction
      • Sustainable new alliances, products, networks
      Tracy Galvin, November 2006 Supply Chain Transformation Pre 2008 Post 2008
    • 13. Postponement Master Schedule Payment on Consumption Invoice Distributor Partnerships Component Suppliers Design For execution, Life Cycle Management New Product Launch Advanced SC Planning Materials Requirements Planning Customer Loyalty Product Quality Global Logistics Order Execution Build/Configure to Order Build to Stock High Value - Modular Assembly Box Build Post-2008 Analogic Supply Chain Pre-2008 Analogic Manufacturing Tracy Galvin, November 2006 Supply Chain Transformation Process Capability
    • 14.
      • More accurate and flexible supply chain
          • Increased planning frequency
          • Component based planning – JIT/Kanban
          • Materials Flow Technology – Lean Manufacturing
          • Capacity based planning – Configure To Order
          • Simulation and Exception Based Planning – Cost Structure
          • Install Base Service Parts Planning
      Supply Chain transformation requires fundamental changes and upgrades to Analogic’s current planning process and tool to ensure realization of targeted benefits Current 7.5 9.0/ASCP Weekly Manual Manual Infinite Manual Any frequency Integrated Available Rules Based Integrated Tracy Galvin, November 2006 Supply Chain Transformation Planning Transformation None Optional
    • 15.
      • Extended Supply Chain due to outsourcing
          • Collaborative Planning – Process Partnership
          • Event Management – Outsourcing Control
          • Transport Load Builder
      • Leverage Subsidiaries/Peabody supply chain consolidation to establish Global Planning process
          • Single Planning Ownership
          • Inventory optimized globally
              • Safety Stocks
              • Lead Times
          • Sales Order based Global Inventory Availability and Allocation
      Supply Chain transformation requires fundamental changes and upgrades to Analogic’s current planning process and tool to ensure realization of targeted benefits Current 7.5 9.0/ASCP None Available None Available None Automatic Requests Disintegrated Integrated None Available Regional Global Tracy Galvin, November 2006 Supply Chain Transformation Planning Transformation (continued)
    • 16.
      • Oracle ASCP is the Oracle solution to Advanced Planning Systems related business requirements
      • Currently Analogic is using Peoplesoft (Oracle) 7.5 with RedPepper for Demand and Supply Planning. Oracle effectively stopped supporting the RedPepper MRP in 2005.
      • ASCP provides advanced functionality required to support Supply Chain Transformation strategy and Demand & Supply optimization
      • Peoplesoft 9.0 is the best planning/procurement tool with robust integration to current and future Oracle applications.
      • Analogic already owns Oracle licenses
      Tracy Galvin, November 2006 Supply Chain Transformation Why Oracle Advanced Supply Chain Planner (ASCP) and Peoplesoft upgrade?
    • 17. Transforming Supply Chain
      • Transforming Supply Chain
        • Moving from a decentralized model to a more centralized model
        • Fewer local suppliers (strategic, IP protection)
        • Increased outsourcing (lower materials cost)
        • Need to increase automation of repetitive business processes
        • Need to standardize business processes across all lines of business.
      LINK 08 November 18 – 20, 2008
    • 18. Hybrid SCM Solution
      • Needed a seamless fusion of the best of MRP and JIT to support:
        • Replenishment and traditional supply of discrete production manufacturing
        • JIT schemas for DFT configured assembly lines
        • Rolling component level forecast for replenishment vendors
        • A high mix of products and product types across the enterprise
        • High volume of engineering change orders
        • New products, engineering projects
      LINK 08 November 18 – 20, 2008
    • 19. Hybrid SCM Solution
      • Why not Flow Production?
        • Transforming Supply Chain (significant amount of inventory value moving away from local suppliers)
        • Bin-sizing calculation required
        • Item replenishment attribute data needed to be populated
        • Needed supply planning for forward look at dynamic component level demand
      LINK 08 November 18 – 20, 2008
    • 20. Lean Replenishment Engine (LRE)
      • LRE uses planned demand at the component level to dynamically re-calculate replenishment requirements for buy items.
      • The requirements are netted against real time on hand and on order quantities, a desired order frequency and result in a Trigger Quantity.
      • The Trigger Quantity is rounded up to an item’s order multiple, staged as a requisition request, processed into purchase orders and dispatched using PO Auto-sourcing.
      • The process can run daily
      LINK 08 November 18 – 20, 2008
    • 21. Lean Replenishment Monte Carlo Simulation DEMO LINK 08 November 18 – 20, 2008
    • 22. Lean Replenishment Algorithms
      • Trigger Quantity (TQ) = If the Quantity available + PO Remaining Balance + Open Requisition Qty- ROH > 0, then 0 Else ROH + TPQ – Quantity available- PO Remaining Balance-Open Requisition Qty.
        • Where Quantity Available, PO Remaining balance and Open Requisition Quantity are calculated in real time. Then the Trigger Quantity is rounded up to the order multiple and inserted in the Requisition Staging Table.
      • Required on Hand (ROH) = Sum of Demands<= Today + LEAD_TIME (in calendar days) * RA
          • ROH equals the sum of past due and future demands for an item, up to the item’s lead time in days, times its risk adjustment factor. For example if an item has a lead time of thirty days, its ROH would equal the sum of all past due demands as well as any demands that fall between the current date plus thirty days, times the risk adjustment factor.
      LINK 08 November 18 – 20, 2008
    • 23. Lean Replenishment Algorithms
      • Target Pull Quantity (TPQ) = Sum of Requirement within a date range + 364/OF (days)
        • TPQ is the sum of an item’s demands from a starting date equal to today’s date + lead time days + one day. From that starting date sum the items demands for a number of days forward equal to lead time days + 364/OF, where OF equals order frequency expressed in number of days.
        • For example, if an item had a lead time of ten days and was an “A” item with an order frequency of fifty two and today was the first of the month. Then the starting date would be the 12 th and we would sum the from the 12 th through the 28 th (10 days + 7 days (364/52))
      LINK 08 November 18 – 20, 2008
    • 24. Lean Replenishment Engine Order Policy Page LINK 08 November 18 – 20, 2008
    • 25. Lean Replenishment LINK 08 November 18 – 20, 2008
    • 26. PID Replenishment
      • Is a variation of Lean Replenishment
        • Nets requirements of PID component lists
          • Firmed and beyond
          • Current scheduled quantity minus pending Issues
        • Captures spot shortages and recent ECO activity
        • Nets PID requirements against available inventory and on order quantities.
        • Result is rounded up to each items order multiple and is staged
        • Staged requisition is converted to a PO via PO Auto Sourcing
        • PO is dispatched to suppliers via EDX
      LINK 08 November 18 – 20, 2008
    • 27. PID Replenishment LINK 08 November 18 – 20, 2008
    • 28. Current Status
      • Basic mechanics work fine
      • Some fine tuning of the application was required
      • Piloting 2K items across two distributors
      • Initially exercising the run controls manually
      • Cleaning up master data relative to PO automation and a new planning model
      • Near term goal is to include a significant % of spend in this process
      • Able to run either process as needed within a business unit.
      LINK 08 November 18 – 20, 2008
    • 29. Learning’s From the 7.5 to 9.0 Upgrade
      • Upgrade
        • Two step migration path
        • Time
      • New Fields
      • Frozen Fields
      • Hybrid Implementation: pure upgrade VS new functionality
      • Old customizations and reports
      LINK 08 November 18 – 20, 2008
    • 30. Questions? LINK 08 November 18 – 20, 2008
    • 31. Zanett Commercial Solutions
      • $50 M in Revenue – over 200 delivery professionals
      • Over 300 successful implementations and upgrades
        • Wide range of complexities served – Emerging Businesses to Fortune 500
        • Wide range of industry-specific expertise including:
          • Life Sciences (Pharmaceuticals and Medical Device)
          • Health Care
          • Manufacturing (CPG / Industrial / High Technology / Job Shop)
          • Wholesale Distribution
          • Transportation / Logistics
          • Retail
          • Business Services
      • Part of Zanett, Inc., based in New York, NY
        • NASDAQ: ZANE
    • 32. Zanett Service Offerings
      • Strategy & Business Transformation – Zanett propels organizations to world-class operating levels with proven tools and techniques that take boardroom visions to full realization – enabling you to maximize effectiveness, efficiency, and ROI.
      • Enterprise Applications – Zanett professionals are experts in the entire Oracle Applications Family – E-Business Suite, JD Edwards and PeopleSoft.
      • Business Intelligence – Zanett is a leading provider of Business Intelligence solutions from Oracle and Cognos. You will have visibility into your business.
      • Technology – Regardless of you technology needs – custom development, portals, BPEL, SOA, ID Management, Access Management – Zanett can help you manage your IT infrastructure better and at a lower cost.
      • Managed Services – Whether hosting your data in our state-of-the-art data center or maintaining it remotely, Zanett provides a cost-effective, worry free way to support, maintain, and monitor your environment.
    • 33. Our Oracle Relationship
      • Certified Advantage Applications Partner
        • Systems Integrator & Reseller for Oracle E-Business Suite, JD Edwards EnterpriseOne and World, and PeopleSoft Enterprise
        • Oracle Accelerate Industry Solution Provider for A&D, Manufacturing, Professional Services, Hi-Tech, and Life Sciences
      • Certified Advantage Technology Partner
        • Systems Integrator & Reseller for Business Intelligence, Fusion Middleware, Database, Oracle Enterprise Manager (OEM), Application Servers
      • Oracle Managed Services Provider
        • Fully hosted or Virtual Administration of Oracle ERP applications or technology-based environments
      • Oracle University Partner
        • Reseller of Oracle Training
        • Training Facilities
    • 34. ZCS PeopleSoft Supply Chain Optimization
      • PeopleSoft Practice led by experts from the PeopleSoft Development group
      • Demand, Inventory Policy and Supply Planning projects to optimize supply chains
      • Custom built, reusable finite capacity planning tools for the shop floor
      • Custom built, reusable analytic tools for:
        • Managing forecast performance
        • Predictive inventory planning
        • Managing schedule adherence
        • Managing Plan-Over-Plan schedule stability
      • Integration to Distribution, Procurement and Manufacturing Execution
      • Helping customers achieve significant inventory reduction, improved customer service, plan stabilization

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