11I10PLANNING.pptx

Applications for your Industry
Information for your Business
Oracle 11i10
Planning Family
Alden Huff, IBU Application Specialist

Agenda
 Key Takeaways
 Product Family Footprint
 New Products
 Highlighted New Functionality
 Cross-Sell Up-Sell
 Analyst Remarks & Competition
 Customer Stories
 Summary-Takeaways

Key Takeaways
 Advanced Planning is a Proven and Complete planning solution
with over 600 customers on multiple products, across a wide
variety of industries -Large-scale, complex, worldwide
deployments
 Global Forecasting will add value to our Retail and Distribution
focused customers and prospects, helping them in improving their
forecast accuracy
 Up taking of Demand Planning will require 9iR2 or higher of
database
 Spare Parts Forecasting in now available to our customers using
Services. Allowing customers to include spares in the overall
forecasting function.
 Customer facing VMI and Consignment VMI will allow our
customers to provide more services their customers

Quick look:
 Advanced Planning
– Over 600 Customers using
multiple products
– Products being leveraged
across a wide variety of
industries
– Large-scale, complex,
worldwide deployments

Analytic
Applications
Marketing
Applications
Pull Through Apps
DBI for Planning
Discrete Manufacturing, Process Manufacturing, Isupplier Portal,
Ebusiness Suite, Field Service, Depot Repair
Manufacturing
Scheduling
Demand
Planning
Collaborative
Planning
Oracle Advanced Planning
Global
Order
Promising
Inventory
Optimization
Advanced
Supply
Chain
Planning
Transportation
Planning

Highlighted
New Functionality
Advanced Planning

Advanced Planning
 Forecast Service Parts Usage
 Forecast Returns
 Supersession Forecasting
 Round Fractional Quantities
 Forecast by Demand Class
 Support for Pick to Order Models
 Forecasting of Key Configuration
 Calculate Planning %
Enhancements
 Oracle Database 9iR2 OLAP
 Line of Business Specific DP
 Consumable Mtl Planning for
CMRO
 Acquire Sales History from Customer
 Forecast Based on Scheduled Arrival
Date
 Internal Collaboration Enhancements
 New Product Intro Event Allocations
 Up-sell / Cross-Sell Substitution items
 Folders for Measures
 Automate Submissions Process
 Multiple Document Interface
 Preserve Forecast Adjustments
 Display Backcast
 Global Forecasting
Demand Planning
Yellow = Highlighted Functionality Blue Circles = Industry Specific
Enhancements
= Totally New Functionality

Advanced Planning
 Global Order Forecasting
 Selection of Outbound Ship Method
 Configure to Order Enhancements
 Co-Product Planning
Enhancements
 Incremental Supplies form Supplier
or Internal Org
 Minimum Transfer Qty across Orgs
 Consumable Materials Planning for
CMRO operations
 Display of Suppliers Modeled as
Org
 Purchase Order to Sales Order
Linking
 Forecast Distribution Assignment
Set
 Prevent Supplier Capacity spreading
 Plan to Request, Promise or Schedule
Date
 Master Scheduling Enhancement
 Hub and Spoke Planning
Enhancements
 OSFM integration – Phase 2
 Time Phased Pricing
 Personal Queries
 Planner Workbench Enhancements
 Organization Specific Conditions
 Managing VMI Supplies in Planners
Workbench
Advanced Supply Chain Planning
Enhancements

Advanced Planning
 Respect Safety Stock Targets
 Safety Stock Calculation
Enhancements
 Plan Start date in the Future
 User Interface Enhancements
 Analysis Workbench
 Budget Constraints
 Configure to Order Enhancements
 Combined Item-Product Family ATP
Shipping/Receiving/Carrier/Supplier
Capacity Calendars
 Honoring ASCP Sales Order
Rescheduling Recommendations
 Improve ATP Performance Based on
Summarized Data
 Honor Plan Option: Enforce
Purchasing Lead Time Constraints
Inventory
Optimization
Global Order
Promising
Enhancements

Advanced Planning
 Customer – Facing VMI
 Customer Consigned VMI
 Supplier – Facing VMI
Enhancements
 Collaboration for ATO Models
 Publish Safety Stock to CP
 Consider Ownership of Outbound
Logistics during Collaboration
 Horizontal Plan Bucketing
 Enhanced Flagging of Potential
Late Orders
 Support for Multi-Company
Collaborative Planning
 Export Data in Import Format
 Accurate Supply / Demand
Exceptions with Non-uniform Time
Buckets
 Notify Trading partners when
Publishing Suppliers and Demands
Replace Previous Supply Commits and
Order Forecasts
Support Search by Item Category or
Buyers Code
Collaborative Planning
Enhancements

Highlighted New Functionality
 ASCP
 Planner Workbench
Enhancements
 Global Forecasting
 Demand Planning
 Forecast of Service Parts
Usage
 Oracle 9iR2 OLAP
 Inventory Optimization
 Analysis Workbench
Global Order Promising
 Configure to Order
enhancements
Collaborative Planning
 Customer VMI / Consigned

New Functionality
Advanced Planning

DP: Global Forecasting
Definition
Global forecasting allows you to define forecasts without the context of a shipment organization.
Needs / Issues
Many businesses which have multiple
shipping facilities, distribution centers,
and manufacturing facilities do not
usually know the demand fulfilling
facility while they prepare and analyze
forecasts.
Solution
• Global forecasting allows you to define forecasts
without the context of a shipment organization. This is
done in Oracle Demand Planning. Forecasts can have
reference to ship-to entities such as customer site and
zone. You can choose a ship-to consumption level in
ASCP. The forecasts from Oracle Demand Planning fed
in as demand schedules can be consumed without any
reference to a shipment organization. You can use
sourcing rules to distribute consumed forecasts and
sales orders to appropriate shipment organizations.
Benefits
The demand fulfillment organization can be changed to take advantage of current supply
conditions and constraints which makes effective use of existing supplies across multiple
shipping organizations
More accurate forecast consumption.

Global Forecasting
Description
Assembly - Plant 1
Orlando
Assembly - Plant 2
San Francisco
Subassembly plant
Austin
Parts plant
Los Angeles
Contract manufacturer
Asia
Forecasts
Material flow
Forecasts
 End items ship
from two assembly
plants
 Forecasts in
assembly plants
cannot be
predetermined
 Forecasts need to
be provided to
assembly plants
Customers

Global Forecasting
 Prepare Forecasts without the
context of a shipping location
(org)
 Forecasts are consumed at a
global level
 Forecasts are assigned to
shipping orgs with a new
Forecast Distribution
assignment set

Global Forecast Definition
Description
Zone Customer Zone Customer Customer Site Demand Class Global (Item)
Global Forecast
Organization 1 Organization 2 Organization 3
Ship from
locations
Ship to
Forecast distribution
assignment set
Consume forecasts
with respect to ship to
Ship to and ship from for global forecasts

Ship To location set to “All Organizations”
Global Forecasting in Demand Planning

Global Forecast Consumption
is done in ASCP
Consumption level in plan options, choose Zone for Global consumption
Consumption
level based on
DP scenario
ZONE

Distribute Global Forecasts and Sales
Orders
 The following levels of sourcing assignments are now
supported
– Item-Instance
– Instance
– Category-Instance
– Instance-Zone
– Instance-Customer-Zone
 A new Forecast Distribution Assignment set is created to
hold sourcing scheme for distributing forecast
 Sourcing rules to distribute the sales orders are specified
in regular assignment sets

Distribute Global Forecasts
is done in ASCP
Assign a Forecast
Distribution Assignment
Set to a plan

ASCP: Planners Workbench Enhancements
Definition
The planners workbench has been enhanced to provide planners with increased visibility into all
the critical information at once.
Needs / Issues
Planners need the ability to look at
work in a way that makes sense to them.
Storing and reusing queries can
increase an employee productivity
Planners to need access collaboration
information while working in the Planner
Workbench:
Solution
Planner Workbench navigation improvements
View all information at once (removal of tabs)
Store multiple preferences to view Horizontal
Plan
Planner Workbench queries and improved analysis
Define personal queries to use as “to do” lists
Launch the workbench with a default to do list
Perform comprehensive pegging analysis (peg
up, peg down, backward, forward)
Planner Workbench collaboration enhancements
View VMI supply information
Benefits
Increase visibility of critical issues by the planner
By seeing all the critical issues better decisions can be made
By allowing customizations, planners can focus on specific parts of the business

Removal of Tabs
 Previously, planners
could not view all
critical information
at the same time
 Previously, planners
could not drill down
from windows like
the Supply Chain
Bill
 Added key icons to
improve navigation
11i.10
11i.9
and
prior

Quick Navigation (Context Sensitive)
Query short cuts
Access Horizontal Plan
Access Supply-Demand
Access Exceptions
Access Item Details
Access Gantt Chart
Execute Other Actions

Horizontal Plan Preference Sets
 Use Preference Sets to
quickly save and
display different views
of the Horizontal Plan
 Designate one
Preference Set as your
default one
 Not all users now share
the same pref set
Use right mouse click to
select a preference view
for the Horizontal Plan
drilldown

Personal and Public Queries
Description
 Planners can define “to do” lists via queries
– When executing a query, a list is presented that a
planner can execute upon
 Queries are grouped by type
– Item
– Resource
– Exception
– Supplier
 Query results are persistent over multiple PWB
sessions, yet operate in the context of a plan
– Rerun queries only when plans have been rerun
– Select a plan when running a query

Create/Maintain Query
Save Query
Execute Query
Personal and Public Queries
 The Queries tab can be set as the
default tab in the User Preferences
 The PWB can automatically
execute one default query upon
launch, as defined in the User
Preferences
– Example: launch the PWB and show
the most critical items, resources, or
exceptions to work on
New: Queries tab

Demand Planning: 9iR2 of Database
Definition
9iR2 of the database is used to for the OLAP engine
Needs / Issues
Improve administration
Improve speed of data transfer
Solution
The Express Engine is embedded in the RDBMS as
Analytic Workspaces
OLAP engine is part of the standard application
installation and patching process
Architecture change requires upgrading to or
installation of the Oracle 9i Release 2 database
Tools are available to transfer data, plans, reports
Benefits
Easy to administer
Oracle RDBMS tools (Database Backup & Recovery, Real Application Clusters etc.) will work
with Oracle Demand Planning. Uses Oracle Enterprise manager
Improved data transfer performance

Oracle 9i Release 2 for OLAP
Description
 The Express Engine is embedded in the RDBMS
as Analytic Workspaces
– No separate Express database
 OLAP engine is part of the standard application
installation and patching process
 Architecture change requires upgrading to or
installation of the Oracle 9i Release 2 database
 Tools are available to transfer data, plans,
reports

DP: Forecasting Spare Parts
Definition
Original equipment manufacturers (OEM), field service organizations, asset operators, and part
distributors all must estimate future demand of service parts.
Needs / Issues
The demand of service parts is
dependent on several factors such as:
1. Service parts consumption or usage
history
2. Supersession and upgrade of service
parts
3. Products returned for repair or
replacement
Solution
• Oracle Field Service for Debrief to record item usage
• Oracle Depot repair for linking internal work to a
service request
• Oracle Order management to manage returns
• Oracle Demand planning to do the analysis
Benefits
 Better forecasting improves parts availability while reducing the overall carrying cost of service
inventory

Service Parts Forecasting
1. Usage forecasting
 Project historical consumption of service
parts
2. Returns forecasting
 Project defective product returns
 Project defective service part returns
3. Supersession forecasting
 Estimate demand of new service part
which supersedes an existing service part

Description – Onsite Repair
Demand
Planning
Inventory
Optimization
Customers
Plan service parts
inventory per service level
and budget constraints
Forecast service
parts demand
Debrief usage (consumption) of service
parts and return of defective parts
- Service parts usage history
- Service parts return history
Service request
Service parts demand
forecast and forecast errors
Advanced
Supply Chain
Planning
Plan supply of
service parts
Safety Stock
Field Service
Engineer
Service parts demand forecast
Field Service

Description – Off-site Repair
Demand
Planning
Inventory
Optimization
Customers
Plan service parts
inventory per service level
and budget constraints
Forecast service parts demand to
repair estimated product returns
Record return of defective products and
service parts consumed for their repair
- Service parts usage history
- Product return history
Defective product returns
Service parts demand
forecast and forecast errors
Advanced
Supply Chain
Planning
Plan supply of
service parts
Safety Stock
Service parts demand forecast
Repaired product shipments
Depot Repair/
WIP/ Order
Management

Inventory Optimization Workbench
Definition
Analysis Workbench provides tactical managers the tools they need to analyze budgets, inventory
levels, costs and revenue to make inventory policy decisions
Needs / Issues
Customers need a way to quickly and
easily make the best tactical inventory
decisions possible.
Solution
• Analyze critical data to make inventory policy
decisions in a single Analysis Workbench
Analyze data at aggregate and detailed level
Compare multiple plans
Benefits
Ability to quickly analyze data
•Evaluate all aspects of the plan with drill downs
•Ability to view data in many dimensions
•Improved planner productivity
•Reduce inventory investment through postponement analysis and savings

Analysis Workbench
 The Analysis Workbench provides
answers for the following key questions:
Profit versus Service Level
Analysis
Postponement Analysis
Service Level Breakdown
Revenue and Cost Breakdown
Safety Stock Analysis
Budget Analysis
What is my most profitable service level?
Am I achieving my target service levels?
How much inventory do I have to carry
for a target service level?
Where should I position my inventories?
How is my inventory budget allocated?
What is my cost breakdown?
Key Questions Answers

Analysis Workbench
Sample Analysis Process Flow
How much budget
do I have? What is
planned inventory
value compared to
budget?
Are target service
levels met? Are
inventories targeted
for the right market
segment?
Are inventories allocated
to achieve target service
levels ?
How much will it cost
to achieve the target
service levels ?
Inventory Budget
Service Level
Breakdown
Safety Stock and
Service Level
Cost Breakdown
Are inventories
allocated to achieve
target service levels ?
Safety Stock and
Service Level
Planner
Workbench
Detailed supply and
demand analysis

GOP- CTO enhancements
Definition
GOP will now be able to “free up” supplies and
resources when unscheduling sales orders for
configurations
Needs / Issues
Configure to Order business
environments are characterized by
frequent changes in the product
configuration prior to shipment
The order promising systems must be
able to plan the availability of supplies
before and after configuration
If the customer changes the
configuration, Order Promising must be
able to unschedule the existing order
such that resources and materials can
be used by subsequent orders
Solution
• Real supplies (WIP jobs, purchase orders, on
hand) are available for subsequent orders
•Planned orders for configured items are de-
composed to “free up” critical resources and
components
Benefits
 Improved order promising for configured products
Match existing supply of configurations
Restrict to valid sources

Change Management
Job 1
Job 2
Planned Order 1
Sales order
Table Top Model*19395
Planned Order 2
Planned Order 3
ASCP plans a sales order for a configuration by
pegging existing supplies and creating planned
orders based on material and resource
constraints

Change Management
Description
In scheduling new orders, GOP considers these
supplies and their associated component and
resource requirements committed to this sales
order
Inventory - Oval Table Top
Planned order 5
Leg Assembly Model*69321
Resource
R1 – 1 HR
Resource
R2 – 2 HR
Job 1
Job 2
Planned Order 1
Sales order
Planned Order 2
Planned Order 3

Change Management
Description
Inventory - Oval Table Top
Planned order 5
Leg Assembly Model*69321
Resource
R1 – 1 HR
Resource
R2 – 2 HR
Job 1
Job 2
Planned Order 1
Sales order
Planned Order 2
Planned Order 3
X
If you unschedule the sales order, GOP removes
it from the plan
Offset supply
Offset supply
Offset supply
R1 1 HR
R2 2 HR
GOP does not disrupt the original plan’s pegging or data,
but effectively adds equivalent supplies and resource
availability for new order scheduling

Customer VMI / Consignment
Definition
You manage inventory at your customer’s sites, monitor on-hand status
and issue replenishments. Material ownership transfers to the customer
upon receipt. As well as the ability to consign inventory at customer sites
(pay on use)
Needs / Issues
Monitor your customer’s inventory for
replenishment opportunities.
Support pay on delivery
Support consigned inventory Pay on
use.
Solution
• Oracle Order Management, Blanket Sales agreements
•Oracle Inventory for min-max levels as well as days of
supply
•Demand planning for forecasting
•Collaborative Planning
Benefits
 Improved customer service levels (fill rates). Proactively manage replenishments for your
customers
Increased predictability, by reduce impact of bullwhip effect
Reduced lead times by Pre-position replenishment based on forecast
Increased customer loyalty by Reduce inventory and provide value-added services for your
customers

Supports execution for pay-on-receipt
Customer
You
VMI Agreement -
Receive
items
Pay on
receipt
Ship items
VMI Agreement
Post on hand
information
VMI with Customers

Define customer
organizations
Define blanket
agreements
Define VMI items
and parameters
SETUP
Run VMI plan to
generate
replenishment
orders
PROCESS
Release
authorization
required?
Approve
replenishment
orders
Pick and ship material
Create invoice
Customer
receives material
Customer provides
consumption advice
(updates on-hand)
Yes
No
Automated process
Create sales
orders
VMI with Customers
Setup and Process Flow

1. Define customer
organization
– Create an inventory
organization to represent
each customer’s
inventory stocking
location
– For example:
 Home Depot store
if you’re a supplier
to Home Depot
 Dell’s hub if you’re
a disk-drive
manufacturer
VMI with Customers
Setup

2. Define blanket
sales agreement
– Item specific
– Item category specific
– Customer specific
VMI with Customers
Setup

Replenishment method
and parameters
Forecast
type
Assign items to
customer organization
VMI with Customers
Setup

Accept (or edit)
replenishment
quantity
Release
VMI with Customers
Process Flow

Consigned VMI with Customers
Supports execution for pay-on-use
Customer
You
VMI Agreement -
Receive
items
Pay on
use
Ship items
VMI Agreement
Post on hand
information

1. Define customer
organization
– Create an inventory
organization to represent
each customer’s
inventory stocking
location
– For example:
 Home Depot store
if you’re a supplier
to Home Depot
 Dell’s hub if you’re
a disk-drive
manufacturer
Setup

2. Define blanket
sales agreement
– Item specific
– Item category specific
– Customer specific
Setup

Assign items to
customer organization
Replenishment method
and parameters
Forecast
type
Setup

Accept (or edit)
replenishment
quantity
Release
Process Flow

 Internal sales
orders and
purchase
requisitions are
created
automatically
Process Flow

 Run VMI plan (conc. program: VMI replenishment engine)
– If [on-hand + open orders + in transit] < minimum quantity
then replenishment orders are generated
– Optionally, generate VMI replenishment notifications
 Automatically or manually release replenishment orders
– Create internal sales orders in Order Management
 Run pick release and ship confirm
 Receive material in customer organization
 Customer enters consumption advice when material is used,
which triggers
– Creation of a sales order
 Order Type = Bill only with inventory consumption
– Decrease of on-hand in customer organization
Process Flow

Customer posts
consumption advice
Process Flow

Advanced Planning
Impact:
Analyst Remarks
and Competition

Competitive Attack Points
Competitor Attack Information
• Inventory Optimization
SAP has no peer product. IO should be introduced to any company that is trying to
eliminate inventory through postponement (pushing it back up the supply chain).
• Supply chain planning for to- order products
SAP has a poorly architected and complex product that has performance issues.
Oracle has strengths in ease of use, scalability and extended supply networks.
• Supplier collaboration and event management
SAP has 3 overlapping solutions all with different architectures. Oracle provides
collaboration and event management in one state of the art integrated solution.

Oracle Advanced Planning Cross-Sell
Messaging for Existing Oracle Customers
If Customer
has …
Sell them Planning
for …
Why – What is the
Benefit
Field Service Demand Planning for Spares
Forecasting
Customers having
problems is availability of
spare parts, or are carrying
too much buffer stock.
Manufacturing ASCP Unconstrained Provides Multi Plant
planning, more intuitive
interface
ACSP Demand Planning Would improve forecast
accuracy and Sales and
Operation planning.
ASCP / ODP Collaborative Planning CPFR with trading partners
Demand Planning Constraint Based Planning /
GOP
Strong order promising
Demand Planning Inventory Optimization Stock positioning strength

A Few Oracle Marketing
Family Customers

What Oracle Planning Customers are
Achieving…
 Intersil reduced inventory by 50%, reduced response
time for critical products from 336 to 24 hours, 246% ROI
 Canon moved from weekly to daily planning, real-time
order release
 Tube Investments reduced inventories by 20%, ramped
up production by 20%, increased market share from 50%
to 80%
 Agilent moved from monthly to weekly planning cycles
 Knowles Electronics reduced inventory costs by $1M each
month
 Alcatel eND moved to virtual supply chain model and
reduced inventory by more than 65%
Copyright © Oracle Corporation, 2004. Private and confidential. All rights reserved.

High Tech
Automotive
Semi-Conductor
Oracle Advanced Planning
Reference Customers by Industry
Telecom
Industrial
Aerospace and
Defense

Toshiba TEC, Worldwide
 $3.1B manufacturer of document
processing equipment
 Previous process
– Multiple regional ERP instances
– Decentralized planning process
 Current process
– Global centralized planning model
– ASCP is cornerstone of Global
SCM project
– Uses ASCP to make global
production allocation decisions
– Uses material and resource
constrained planning
 Benefits
– Moved from a monthly planning
cycle to a weekly cycle
– Reduced manufacturing cycle
times
– Optimized worldwide inventory
levels
Global planning system deployment – multi-instance
Read their online testimonial
Orcl 11i
Orcl 11i
US
Europe
Advanced Planning 11i
Orcl 11.0
China
Japan
Malaysia Orcl 11.0
Orcl 11.0
Resource and material
constrained
Production Plan (MPS)
Manufacturing Sites
Distribution Sites
Toner Mfg Plant
Japan Orcl 10.7
Japan - Distribution Sites
Forecast
Forecast
Forecast
MRP
MRP
MRP

AT&T Wireless
• Inventory is down year over year while product line is much broader
• Service level remains strong
• Inventory volatility is dramatically reduced
• Increased collaboration
Benefits
COMPANY
 Largest independent wireless
communications company. Second largest
based on revenue
 $16.6B revenue, 22M subscribers, ~30k
employees
 Wireless Voice and Data Services.
 TDMA/GSM Network. Fastest National data
network
PLANNING BENCHMARK
• 1 National distribution center
• 7 Channels
• 1100+ Company owned stores, Web, Direct Mail
• 18 Major national retail partners; 17,000+ doors
• $ 2.0B+ Annual spend
• Manage 500+ SKUs
• 12+ Major device suppliers
• 40+ Accessory suppliers
PREVIOUS PROCESS
• PC based toolsets
• Difficult to aggregate and publish
• Change & version control lacking
• Shared data mart
• Scrubbed data is dispersed
• Off the shelf stat package
WITH ORACLE
 Runs worldwide sales operations using ASCP, DP, and CP
 5 month implementation
 CPFR collaboration with suppliers
 Central repository for consensus forecast
 Supports consistent process flow with approval steps
 Improved visibility for balancing supply and demand
 Less time verifying data, more time analyzing data
 Integrated custom data streams and aggregates
Source: AT&T presentation – Oracle Appsworld, 2004

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