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Oracle Shop Floor Management/Advanced Supply Chain PlanningOracle Advanced Planning Command Center Business insight for supply chain management
John M. Conlin CPIMPrincipal Solutions Consultant Supply Chain & Manufacturing Applications
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.
• Company– Manufactures ultra high speed Static Random Access memory (SRAM), products for the audio, video, and
communication markets
• Previous process– Spreadsheets, not integrated with legacy system, nor with execution systems– Manual forecast smoothing; no system supported sales and operations planning– Monthly planning cycle, no accurate order promise dates– Fabrication and assembly not linked, causing wafer shortages and excess inventory
• With Oracle – Holistic daily optimized plan for 24 facilities, with demands from 1000+ customers– Uses substitute components, simultaneous and alternate resources, co-product planning, alternate bills, routings,
and sources, complex network routings, and process yields– Uses complex allocation rules for global order promising
Runs worldwide manufacturing and S&OP using ASCP, DP, and GOP
• Integrated S&OP process resulting in one consensus forecast number• Strongly reduced planning cycle time – from monthly to daily• Integrated planning and execution model, providing global supply and demand
• Company– Manufactures test and measurement equipment
• Previous process– Manual order promising with fixed lead-time– Weekly, cascaded MRPs (4 wk propagation)– No system supported S&OP process– Multiple, divergent systems/process statistical forecasting, new product introductions, or promotions
• With Oracle – Holistic daily optimized plan for 24 facilities, with demands from 1000+ customers– Runs weekly unconstrained enterprise plan– High value, low/moderate volume demand; using 32 sub-plans, new product introductions, and promotions– Using real-time ATP to promise orders; using multi-level ATO and PTO models
Runs worldwide manufacturing and sales operations using ASCP, DP, GOP, and IO
• Company– Leading, privately held, global manufacturer of analog, mixed signal and optoelectronics
components (formerly Agilent SPG, Avago); the company's products serve four end markets: industrial and automotive, wired networking, wireless communications, and computer peripherals
• Previous process– Legacy order promising using ATP; disparate planning tools across supply chain– Reactive, manual, and time consuming plan analysis; manual forecast generation– 1 week planning cycle; no system supported S&OP process
• With Oracle – Runs optimized enterprise plan, twice/week, including tier-3 supplier organizations– Low cost, high volume and high mix demand– Using real-time CTP to promise orders 24x7, with use of complex allocation rules– Using complex network routings
Runs manufacturing and sales operations using ASCP, DP, and GOP
• Synchronization of entire worldwide supply chain with complete global visibility• Strongly reduced planning cycle time• Strongly increased forecast accuracy• System supported sales and operations planning process
• Company– Manufactures test and measurement equipment
• Previous process– Spreadsheets, not integrated with legacy system, nor with execution systems– Manual forecast smoothing; no system supported sales and operations planning– Monthly planning cycle, insufficient accuracy in order promise dates
• With Oracle – Determines allocation to produce most profitable product mix within existing constraints – Performs all planning at the family level– Powerful Integration of supply/demand picture supports Alcoa’s S&OP Process– S&OP composite picture in real time during review sessions
Global planning system deployment – Live on ASCP, DP, GOP
• Reduced planning cycle time - Eliminates waste on spreadsheets • Process integration with other modules results in technology “pull” for new systems • Integrated sales and operations planning process resulting in one consensus forecast
• Company– Manufactures power generation and oil & gas equipment
• Previous process– Reactive, manual, and time consuming analysis and reporting– Stand-alone non integrated systems; disconnected processes among business units– Segregated order launching by project– Poor visibility of project excess inventory– Order promising is based on commercial lead-time only
• With Oracle – Daily holistic plan across projects and across businesses: 8 manufacturing plants– 6 main distribution warehouses, and 10+ forward deployed or consignment warehouses– Retain planning by project but leverage excess Inventory any where within the company– Connected businesses processes and automated exception reporting– Order promising base on planned output
Global planning system deployment – Live on ASCP and GOP
• Reduced inventory levels by $20M per year• Reduced delivery cycle by 10% for new equipment orders• Improved fulfillment rate for service parts• Reduced planning cycle time to daily
• Company– Manufactures aircraft engines for commercial and military aircraft, spare parts, and engine contract services
• Previous process– Each plant ran an individual MRP plan on a weekly cycle – Net requirements from engine assembly plants were translated into a forecast to be used as demand for
component shop MRP plans. This led to inherent latency in that component shops used a previous planning cycle as an input
– Many parts were replenished using a reorder point process– Frequent expediting
• With Oracle – Daily holistic assembly plan spanning 36 manufacturing and spares organizations– Weekly holistic component plan– Synchronized spares and assembly planning– Planning horizon is 2.5 years
Global planning system deployment – Live on ASCP and DP
• Productivity savings from reduction of planners (120 to <30)• Reduced planning cycle time and inventory levels• Working capital savings through better planning tools
Risk Management and Risk Management and ComplianceCompliance
New world: continuously adapting to changing supply chain business modelToday’s Supply Chain Executives’ Agenda
Increased Shareholder
Value and
Sustainable Growth
CEO’s Agenda
“What is required is a new type of decision support platform, one that integrates analytics and optimization. 15 years after the birth of Supply Chain Planning (SCP), we are now just starting to see analytics and optimization converge on a common platform”
AMR Research Report “How to measure your supply chain today “
• Translates planning data to corporate metrics• Forward looking perspective combined with past trends• Not a data warehouse for “rearview mirror” analysis
– Minimal data replication (archiving/publish of select summary data)
• Available with Oracle Advanced Planning 12.1 and runs on top of:
• What has changed since last month? How are we performing compared to last year?• Are we on plan financially? Is there any need to revise long term plans?• How are we performing to performance metrics? Are we achieving our six-sigma goals?• What new risks do we need to consider? Is our single sourcing strategy exposing us?• What decisions need to be made now and in the near future?• How are product families performing? Do I have the most profitable product mix?• Are we on track with product development? Do we need to delay new products?• Do we have any critical supply constraints or issues with key suppliers?• How is the resource utilization on our most critical resources?
• Integrated: completely integrated with APS 12.1.01 and Demantra 7.2.02• Configurable: SOA enabled process automation• Open: enable external data sources and combine data with existing planning data• Modular: leverage pre-built content as you enable more planning applications
Leverage extensible and secure architecture for additional cost savings
Personalized Dashboards, Answers, and Alerts OBIEEAnalyticalDashboards
• What has changed since last month? How are we performing compared to last year?• Are we on plan financially? Is there any need to revise long term plans?• How are we performing to performance metrics? Are we achieving our six-sigma goals?• What new risks do we need to consider? Is our single sourcing strategy exposing us?• What decisions need to be made now and in the near future?• How are product families performing? Do I have the most profitable product mix?• Are we on track with product development? Do we need to delay new products?• Do we have any critical supply constraints or issues with key suppliers?• How is the resource utilization on our most critical resources?
• Business insight for key decision makers– Monitor corporate metrics in real time, automatically derived from operational
planning information – Enable cross-planning business analysis to manage your value chain
• Proactively respond to performance deviations– Seamlessly move from analysis to planning (problem to resolution)– Assign tasks to planners to evaluate alternative business scenarios
• Pre-built rich content – Fast ROI– No need to built a “rear-view mirror only” disconnected data warehouse