Oracle Advanced Planning Products 3887

7/31/2019 Oracle Advanced Planning Products 3887

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This presentation is for informational purposes only and may not be incorporated into a contract or agreement.

The following is intended to outline our general product direction. Itis intended for information purposes only, and may not be

incorporated into any contract. It is not a commitment to deliver anymaterial, code, or functionality, and should not be relied upon in

making purchasing decision. The development, release, and timingof any features or functionality described for Oracles products

remains at the sole discretion of Oracle.

The much-anticipated, action-packed

ORACLELEGAL DISCLAIMER


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Tom GreeneSenior Solution ConsultantWest Commercial Apps Region

Oracle Advanced Planning

An Overview for NorCal OAUG

Training Day 2006


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TRENDS ADAPT YOUR BUSINESS MODEL

Today: Some Tough Nuts to CrackBusiness trends are forcing you to consider new strategies

Higher degree of uncertaintyGet visibility to all demand

Manage to uncertainty by postponing inventory

Increased global competitionFocus on core competency

Increase outsourcing

Mass customizationMove point of product differentiation

closer to customers

Focus on customer service toensure brand loyalty

Provide reliable and accuratecommitments to customers

Limited money to invest in IT Lower cost of ownership of apps


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Long planning cycles

Supply PlanningDemand Planning

Distributionplans

Sales

Marketing

Mfg.

Response 1:

Maintain Excess Inventory

Response 2:Reserve Production Capacity

Response 3:Expedite Everything!

Traditional ApproachMulti-step planning processes, high latency, limited collaboration

Fax

Tier 2

Tier 1

CUSTOMERS SUPPLIERS

Supply Chains built onINVENTORY

Productionplans

Manufacturingplans

Paper Paper

?

Manualreconciliation


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Move to A More Competitive Model

Enable closed loopcollaborative planningprocesses across yourvalue chain

Have complete supplychain visibility

Make better decisions

React immediately todisruptions in supply chain

E-Business planning solution: zero latency, real-time collaboration

Supply Chains built onINFORMATION instead of

Inventory

Consensus forecast andproduction plan

Supply Planning

Demand Hub & Multi-dimensional analysis

Automated Exceptions

S&OP Process

Singleholistic plan

Business Intelligence

Sales

Marketing

Mfg.

Manufacturing

PortalPortal

Tier 2

Tier 1

CUSTOMERS SUPPLIERS


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What Our Customers Say

Reduced inventories by 20%, increased market share from 50% to 80%

The most exciting feature of the system to a manufacturer is constraint-basedplanning. Oracle provides the ability to plan, including resource and materialconstraints,based on suppliers' inventories and capacities.

Mr. V. A. Raghu, Managing Director, Tube Investments Ltd.

Improved inventory turns by 37%

With help from Oracle's Advanced Supply Chain Planning (ASCP), we cannow respond to customer change requests within 24 hours. The system alsohelps us check if our suppliers can supply us the components we need.Previously, we've had to collect this data manually using a lot of resources.

Tan Lai Tong , Business Management GM, TEC Ltd.

Replaced i2 and cut planning cycles from weekly to dailyWith Oracle E-Business Suite 11i, we have moved from weekly to dailyplanning, which has significantly improved our response time.

Clair Walizer, Senior Developer and Analyst, Canon Virginia, Inc.


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Oracle Advanced Planning

Solution


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Oracle Advanced PlanningComplete e-business planning solution

Collaborative Planning CP

Sales and OperationsPlanning

From short-term to long-term

Fromd

etailtosumm

ary

CPSC Exception Management

PSProduction Scheduling

ASCPDistribution Planning

GOPGlobal Order Promising

ASCPSupply Chain & Manufacturing Planning

IO

Inventory Optimization

DPDemand Planning

SCISupply Chain Intelligence

DevelopMarketSellOrder

Plan

Procure

Make

Fulfill

Service

Maintain

FinanceHRProjects

All Product,Customer,& SupplierInformation

SNONetwork Design


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Key Capabilitiesin Order of a typical High-Tech Adoption Lifecycle

Sales and operations planning

Holistic planning and optimization

Zero downtime global order promising

Multi-tier collaborative planning

Inventory postponement optimization

Strategic network design

Real-time production scheduling


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Sales and Operations Planning


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Balancing supply and demand

Synchronization of all operational plans

Key outputs Consensus forecast

Bookings forecast new orders expected to be received

Sales and allocations plan expected shipments

Production plan Bookings forecast +/- changes in backlog = shipping forecast

Shipping forecast +/- changes in inventory = production plan

Definition


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Sales and Operations PlanningComplete and integrated process

Demand Plan

Supply Plan

Inventory andservice levels

ManagementReports

Financial planBudget plan

Sales opportunitiesTrade promotions

Ship and book historyCurrent order backlog

Inventory historyProduction historyProduction backlogCustomer forecasts

Exceptionmanagement

Sales Plan

Production PlanBookings Forecast

Balance supply, demand, andbudgets:- Determine inventory targets- Determine supply plan- Determine allocations

Capture all demand in one place

Determine consensus forecast- Determine new product plan

Evaluate and adjust plans

INPUTS PLANNING PROCESS

OUTPUTS


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Demand Hub

Capture all demand data in a central place

Collaborate internally and externally

Drive to a consensus forecast

Use analytics and intelligence to achieve aconsensus demand

Balance demand, supply, and budgets

Make allocation decisions while trading off servicelevels and cost

Adapt and adjust to changing businessconditions

Adjust demand or supply plan as conditions change

Drive continuous improvement

Integrated solution with built-in businessintelligence

Key capabilities


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Tier 2

Tier 1

CUSTOMERS SUPPLIERS

S&OP Demand Hub

Central repository for all demandinformation

Customer and supplier forecasts

POS data

Sales and marketing forecasts

Financial forecasts and budgets

User-defined data (spreadsheets)

Configurable and extensible

Meta data driven

User-defined dimensions andhierarchies

Open

Spreadsheets, XML, EDI, portal Audit exceptions

Integrated

Out-of-the-box loads for Oracle ERP

Capture all historic and future demand in a single data store

APIs

Sales

Demand

Hub

ERP Systems

Finance Marketing

Internet

PortalPortal

Manufacturing

ERP TransactionFlat file loadsEDI Transactions


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Compare and consolidate disparate forecasts

Sales, marketing, manufacturing, customers, suppliers,Point of Sale (in units or $$)

Use multi-dimensional analysis to adjust, allocate, androllup

Improve forecast accuracy Better statistical forecasts

Forecast planning percentages for models and options

Get visibility to customer demand changes

Improve demand planning cycle time

Move from a regimented periodic to a continuousdemand planning process

Get real-time visibility to demand adjustments viainternal collaboration

Improve sales promotion planning

Forecasting integrated with promotion planning

Measure effectiveness

S&OP Demand PlanningDrive to accurate consensus forecast

Collaborativedemand plan

Automated exceptions

Consensusforecast

Sales

Demand

Hub

Finance Marketing

Tier 2

Tier 1

CUSTOMERS SUPPLIERS

Internet

PortalPortal

Demand Planning Process

Manufacturing


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Manage product life cycles more effectively,with your trading partners

Introduction of new products

Phase-out of obsolete products

Improve delivery performance Include customers in forecasting process

Publish sales forecast to suppliers at any tier

Reduce non-value added costs and exceptionoverload

User-defined exceptions

Proactive notifications Automated exception handling via workflow

S&OP Demand PlanningDrive to accurate consensus forecast

Sales/OrderForecast

Publish(optional)

Synchronize

SalesForecast

SalesForecast

Synchronize

Forecast Collaboration Process

CUSTOMERS

SUPPLIERS

YOU


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S&OP Alcoa

$20.3 billion in revenues 350 operating locations in 40 countries

127,000 Alcoans worldwide

4 Major Rolling Mills - Davenport, Iowa;Lancaster, Pennsylvania; Texarkana, Texas;San Antonio,Texas

Heat Treating and Blanking Center - Danville,Illinois

Customer service and distribution centers -Irvine, California;Hutchinson, Kansas

Extruded Tube for Heat Exchangers - St.

Louis. Missouri; Monterey, Mexico

Spreadsheets, not integrated with legacy system, nor withexecution systems

Manual forecast smoothing

No system supported sales and operations planning

Monthly planning cycle, insufficient accuracy in order promisedates

Determines allocation to produce most profitable product mix withinexisting constraints

Performs all planning at the family level

Powerful Integration of supply/demand picture

Demand Planning & ASCP supply and inventory data

Drill Down and roll-up capability

Reporting tools and data analysis

Export to excel or HTML pages

Supports the S&OP Process

Demand planning analysis and pre-work

Operations planning analysis and pre-work

S&OP composite picture in real time during review sessions

Source: Alcoa Presentation at Appsworld 2004

COMPANY PROFILE BEFORE ORACLE

AFTER ORACLE

Benefits

Reduced plan cycle time Eliminated waste on spreadsheets

Process integration with other modules resulted in technology pull for new systems

Integrated sales and operations planning process resulted in one consensus forecast number


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Holistic Planning and Optimization


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Unified solution for supply chain andmanufacturing planning

Segment the problem as needed

Optimization for planners notprogrammers

Scalable and reliable

Short-term planning

Long-term planning

Semicon

Process

Discrete

Flow

ProjectPlants

Warehouses

Customers

Suppliers

DCs

Faster and better supply chain plans

Internet


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Supply Chain Planning Product family and item level planning

Alternate components, resources,processes, suppliers, facilities, and shipmethods

End-item substitution

Critical items and resources

Aggregate resources

Bills of distribution and transfer rules

Customer and supplier facilities

Manufacturing Planning Simultaneous resources

Batch resources

Alternate resources

Minimum transfer quantities Complex, network routings

By-products and co-products

Line rates and takt times

Setup and run

One solution for comprehensive supply chain and mfg planning

One supply chain model, one planning engine, one setup


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One holistic plan


Adapts to your current businessmodel

Single plan or multiple plans

Evolve planning model at yourown pace

Re-configure easily by modifying planoptions instead of re-implementing orre-modeling

Multiple models can co-exist

Highly adaptable; segment the problem as needed

One DRP, multiple MRP

DRP for all Orgs

MRP Org 1 MRP Org 2 MRP Org 3

SCP for all Organizations

Multiple MPS, multiple MRP

MPS for BU 1

MRPOrg 1

MRPOrg 2

MRPOrg 3

MPS for BU 2

MRPOrg 4

MRPOrg 5

MRPOrg 6


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Interceramic

91 Distribution centers, stores, andfranchises

4 Plant warehouses

7 Manufacturing plants

3000 BOMs, 100,000 SKUs

Run DRP, constrained MPS, and rawmaterial MRP

Knowles Electronics

Global planning instance

2 Locations in the US

1 Location in Europe

5 Locations in Asia

Mixed mode manufacturing

Make to stock Make to order

Configure to order

Global order promising against 1 centralplan

Highly adaptable Customer examples

Knowles Electronics hasreduced inventory by $1M permonth after implementingAdvanced Planning

SuppliersManufacturing

plantsDistribution

chain Customers

ConstrainedSC plan

DRP plan

ConstrainedMPS plan for

all facilities

Collaborativedemand

plan

Inventorypostponement

plan


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Make better decisions faster

Level load

Choose alternatives

Make/buy decisions

Late demand diagnosis

Out-of-the-box optimization Use costs or decision rules

Start quickly

Planners define the problem to solve

Flexible defaulting

Reduce planner workload

Optimization For planners, not programmers

GE AE has moved from running separate plans in 36 facilities to runninga single holistic plan across their DCs, end-assembly, contractmanufacturing, and component shops, and as a result has reduced theirplanning organization significantly


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Patented memory-based architecture Multi-threaded snapshot

Optimized end-to-end run time

Database centric All plan information resides in the database Leverages high performance database capabilities

Flexible plan scope Telescoping granularity

Apply constraints selectively

Subset planning

Scalable

High volume customers: Agilent Technologies, Sony SNC, GE AE, NCR, Panasonic, Alcoa


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Zero Downtime Global Order

Promising


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Zero Downtime Global Order Promising

Promise orders based on: Material availability

Manufacturing capacity

Transportation capacity

Supplier capacity

Global statement of availability All facilities, material, resources, and suppliers

Drive fulfillment decisions based ondemand and supply plans

Promise based on optimal supply decisions

Allocate available supply and capacity By channel, customer, or product

Priority and stealing rules

Manage commitments to key customers Re-schedule and re-sequence your backlog


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Run new plan


Zero downtime

No order promising downtime whenunderlying supply chain plan isrefreshed

No sales order is lost, automatically re-

promise sales orders against new plan

Open, reliable, and scalable

Engine runs inside the database

No memory models to load!

Multi-threaded

Integrated with OM, iStore, and CallCenter

Easily integrate with legacy systems

Guaranteed uptime and consistency via patent-pending architecture

Current plan

Promise Orders Promise Orders

Copy Run Copy

? ? ? ? ? ? ?

New planDowntime or

Inaccurate orders

Typical Approach

Oracle Approach

Current plan

Promise Orders Promise Orders

Run new plan

Copy RunSync &

Re-promise

New plan

Swap


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Agilent Technologies Performing multi-level capable-to-promise

Greatly reduced expedite orders with accurateorder promising dates

Moved from batch to online order promising

Increased customer satisfaction of key

strategic customers by using allocated ATP 24x7 worldwide order operation with zero

downtime CTP

Meet customer requirement by utilizingsubstitute components

Cisco Every order for every router sold worldwide goes

through GOP

Complex order promising problem

Product and channel allocation rules

Extensive use of ship sets in an assembly to orderenvironment

High volumes

Intersil Using material and resource constraints (CTP)

across virtual supply chain

Sales people promise orders online in seconds

Customer examples



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Multi-Tier Collaborative Planning


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Multi-tier Collaborative Planning

Plan your extended supply chain Share forecasts and supply commits with

customers and suppliers

Get visibility to supplier capacity

Reallocate key components

Make alternate sourcing decisions

Reduce inventory cost and improvefulfillment

Suppliers manage your inventory

Manage your customers inventory

React quickly to supply chainexceptions

Waterfall analysis

User-configurable exceptions

Automated exception handling via workflow

Full visibility and synchronization across the extended supply chain

Run plan

Optional

Forecast memory

Supply commit

boards

Supply commit memory

Demand boardsRun plan

Demandsystems

Supplyforecast

Consensusforecast

SUPPLIERCUSTOMER YOUCONTRACT

MANUFACTURER


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Automate inventory replenishment with suppliers and customers

Receive items

Pay on receipt/use

Check

inventorystatus

Ship items

VMI Agreement(with supplier)

VMI AgreementVMI Agreement

Receive items

Pay on receipt/use

Ship items

VMI Agreement(with customer)

Send consumptionadvice

VMI and Consigned Inventory

CUSTOMER YOU SUPPLIER


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Customer Example: Alcatel eND

Enabled 100% virtual enterprise

Plan virtual supply chain

Planning cycle time reduced by 75%

Reduced inventory by more than 65%

Reduced material liability by 80%

Established global closed-loop process controls

Improved supply chain visibility

Projected annual savings of $15M


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Inventory Postponement

Optimization


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Inventory Postponement Optimization

Inventory levels and policies aresynchronized across the entiresupply chain

Manage to uncertainty Demand, supply, and lead-time

variability

Pull model, driven by point ofpostponement

Higher customer service at lowerinventory cost

Time-phased safety stock buffersat all levels

Multiple target service levels

Manage to uncertainty, reduce inventory, improve customer service

Suppliers

ContractManufacturers

FinalAssembly

CentralDistributionCenters

RegionalDistributionCenters

Customers

Without Postponement With Postponement


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Reduced inventory cost

Increased flexibility to handle supply and demanduncertainty

Rapidly handle product mix changes

Reduced average fulfillment lead times

Reduced material liability

Ability to absorb yield exposure

Business benefits


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Reduce inventory without sacrificingcustomer service

Postponement

Risk pooling

Manage supply chain variability

Choose the best service level strategy

based on cost and revenue Inventory budget constraints

Invest in profitable channels, products,and customers

Manage seasonality and product life

cycle characteristics Recommend time-phased safety stock to supply

planning

Out-of-the-box optimization For planners, not programmers

Key capabilities

InventoryInvestm

ent

Service Level

10 30 50 75 80 85 90 95 100

Higher Service Level

LowerInventoryCost

WithoutOracle

WithOracle


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Reduce inventorywithout impactingcustomer service


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Simulate multiple

scenarios to find theoptimal trade-offbetween cost and

service level


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Focusing on class A parts for service business

Determining safety stock levels across finishedgoods and raw materials

Realizing significant benefits Example: reduced inventory for one part by 10%

Customer example GE Transportation Aircraft Engines, US


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Strategic Network Design


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Optimize your supply chain network Use demand scenarios as input

Compare time-phased network configurations

Model all supply chain elements Distribution centers, processing facilities, ship methods,

stores, suppliers, and customers

Costs: transportation, operating, sourcing, facility ramp-upand shut-down, labor, and storage

Optimize sourcing Output best sourcing strategy for downstream supply chain

and inventory planning

Simulate changing business conditions New businesses and new markets

Outsourcing decisions

Demand scenarios

Key capabilities


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75% Inventory reduction5% Capacity improvement

50% Inventory reductionPlanning cycle reduced 86%70% Inventory reduction20% Capacity improvement

20% Inventory reduction $ 350M Inventory reduction

15% Inventory reduction50% Inventory reductionPlanning cycle reduced 20%

50% Inventory reduction25% Stock-out reduction

Carrier rationalization from 200 to 12

Proven deployment success and ROI: 300+ customers

BASS BREWERS COCA COLA - FEMSA

NABISCO FOODS

OWENS ILLINOIS

KIMBERLY-CLARK

KRAFT FOODS - EUROPE

DOW CHEMICAL

FORT JAMES


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Real-Time Production Scheduling


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Maximize production throughput Optimize your shop floor; detect floating bottlenecks

Reduce WIP inventory by rapidly synchronizing multi-stageproduction schedules

Account for complex setup and change-over scenarios,machine breakdown, supply and resource shortages , co-and by-products, alternate resources, routings, and

operations

Model all elements of your shop floor Work centers, resources and resource groups, shift capacity,

operating costs

Lead times: setup, change-over, and run

Sequence dependent setups, contiguous operations,production campaigns, batching

Implement most optimal schedule seamlessintegration with Oracle EBS

Output best schedule for process (OPM), discrete MFG), andsemi-conductor (OSFM) manufacturing (available 2006)

Key capabilities


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GE Energy Improved schedule accuracy and confidence

by reflecting real time shop floor constraints

Finite machine, crew and tool resourceconstraints

Floating resource bottlenecks due to demand

mix variability Operation sequence dependent setup times

Operation buffering to avoid intermittent gluegun usage

Alternate resources with preferences

Simulations of hot order impact on existingschedule

Complex demand priorities

Toyota Racing Division Reduced schedule creation from 3 weeks to < 2

hours

Support re-planning based on constant designchanges during production

Respect for crew specialization

Optimized use of un-manned operations duringdowntime

Nampak Reduction in time lost due to sequence dependent

press setups for container styles and sizes

Customer examples


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Integrated Performance Management

and

Process Automation


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Integrated Performance Management

Define targets

Measureperformance

Executetransactions

ManagementReports

Notify on out

of tolerance

Analyze exceptions based on

facts; take immediate corrective

action

Identify key performancemeasures and set targets

Calculate KPIs and compare to

plan; notify decision makers of

exceptions

Perform trend analysis and

adjust business plan and targets

Role-based portals

DP Forecast accuracy Margin analysis Promotion effectiveness

ASCP Planned utilization On-time delivery Planned margin

IO Service level analysis Plan versus profit Postponement savings

TP Carrier contract utilization Cost per unit weight Cost per unit volume

CP Supply commit variability Order forecast variability

PLAN TO PERFORMANCE PROCESSBUSINESS INTELLIGENCE

OUTPUTS

Closed-loop plan-execute-measure-adapt process


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Automated end to end planning process Completely integrated business process flows

across all products

Automated plan execution Auto-release orders and reschedule

recommendations

Configurable exception management Workflow enabled exceptions

User-defined exceptions

Configurable thresholds

Kyocera has workflow-enabled their planning process tothe extent where their planners manage all the planexceptions by responding to email notifications

Increase planner productivity

Process Automation


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Scalable and Open Architecture


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Scalable and Open Architecture

High performance In-memory only when needed

Multi-threaded snapshot

Leverages key database features likematerialized views, partitions, andanalytical workspaces

Reliable All plan information resides in the database

Hot backup and recovery

Leverages grid computing infrastructure

Open and standards based Runs against all versions of Oracle EBS

11.0, 11i

Deploy against legacy systems XML, flat file, EDI support

Database-centric architecture

APIs

Oracle ERP

Legacy Systems

XMLEDI

Flat file

Order PromisingEngine

AnalyticalWorkspaces

KPIs Workflows Plans

Internet

PortalPortal

Legacy DeploymentsCochlear, Embraer, FXAP, NCR, Interceramic, Perkin Elmer,GE Transportation Aircraft Engines, Xilinx,

TRADING PARTNERS INTERNAL USERS

Advanced Planning


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Momentum


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Ongoing Momentum

1000+ Advanced Planning customers

Both new installs and upgrades, several legacy systemdeployments

50% same instance, 50% distributed architecture

Broad use of modules

Worldwide deployments US, Brazil, Mexico, UK, France, Italy, Spain, Switzerland, Belgium, Turkey, Israel, South

Africa, Singapore, Japan, India, Taiwan, Indonesia, Australia, New Zealand, Korea,China, Malaysia, Netherlands, Denmark,

Large-scale, complex deployments across all industries


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A Few Live Customers

Intersil - ASCP, DP, GOP

Fuji Xerox Asia Pacific - ASCP, DP

Perkin Elmer - ASCP, GOP

NCR - ASCP, DP

Namitech - ASCP, GOP

Emerson ASCP, DP

BMW SNO

Xilinx - ASCP

UPS Logistics - ASCP, GOP

Agilent - ASCP, GOP, DP

Mykrolis - ASCP

Knowles Electric - ASCP, GOP

Panasonic - ASCP

Honeywell S&C - ASCP, DP

Embraer - CP, DP

Tube Investments - ASCP

Toyota PS Eaton Trucks - ASCP

Kyocera ASCP

Nampac PS, SNO

Hoffman - SNO

Cisco - ASCP, GOP

Alcoa - ASCP, DP, GOP

Canon Virginia ASCP, CP

GE Energy Power Systems - ASCP, GOP

GE Transportation Aircraft Engines - ASCP

GE Energy - PS

Silgan Plastics - ASCP

Qualcomm - ASCP, DP, CP

McGraw-Hill - ASCP, DP

Alcatel eND - ASCP, DP, CP

Intersil ASCP, DP

Cervecera Quilmes - SNO

Mango - CP

Rockford - ASCP, DP

Quantum - ASCP, DP

GrafTech International - SNO

Boeing - ASCP Anugra Argon Medica - ASCP, DP

Cochlear - ASCP, DP

Inventec - ASCP, GOP, CP

Dow Chemical SNO, PS


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Adding Value and Assuring ROI

Intersil reduced inventory by 50%, reduced response time for criticalproducts from 336 to 24 hours, 246% ROI

Xilinxachieved a 98% delivery performance to promise date

Alcatel eNDmoved to virtual supply chain model and reducedinventory by more than 65%

Anugrah Argon Medicaimproved on-time delivery to 98% TEC Electronicsimproved inventory turns by 37% Tube Investments reduced inventories by 20%, ramped up

production by 20%, increased market share from 50% to 80%

Dow Chemical reduced inventories by $350M, rationalized carriersfrom 200 to 12

GrafTech reduced inventories by 40% and lead times by 20%


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Retail Services Division (RSD) and Financial ServicesDivision (FSD)

Manufacturer of point of sale and high-end scanningequipment, and service provider of complete storeautomation, ATMs, and self-service kiosk solutions

$5.6B revenue FY02

Demand Planning

500,000 demand planning composites

12+ month forecasting horizon

20Gb memory model

Supply Chain Planning

20 orgs

1,000,000 items

2,5 hours end-to-end planning run

Each organization ran individual MRP, 54 ERP instances Integration between orgs was based on buy-sell relationship

Forecast accuracy < 50%

Sales and operations planning cycle time: 21 days

No system supported sales and operations planning process

WITH ORACLE

Runs worldwide manufacturing and sales operations using ASCP, DP,and GOP

Single, global plan for 20 orgs, including worldwide distribution centersand manufacturing plants

Runs daily constrained enterprise plan (EDD)

Complex procured configurations

Using real-time material constrained, multi-org, multi-level ATO orderpromising process

Benefits

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

NCR Corporation, US


AFTER ORACLEPLANNING BENCHMARK


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Orcl 11.0

Orcl 11.0

Orcl 11i

Toshiba TEC, Worldwide

$3.1B manufacturer of documentprocessing 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 productionallocation decisions

Uses material and resource constrainedplanning

Benefits

Moved from a monthly planning cycle to aweekly cycle

Reduced manufacturing cycle times

Optimized worldwide inventory levels

Read their online testimonial

Global planning deployment Multi Instance

US

Europe

Advanced Planning 11i

China

Japan

Malaysia

Resource and materialconstrainedProduction Plan (MPS)

Manufacturing SitesDistribution Sites

Toner Mfg Plant

Japan Distribution Sites

Forecast

Forecast

Forecast

MRP

MRP

MRP

Orcl 11i

Orcl 11.0

Orcl 10.7
http://www.toshibatec.co.jp/joho/copier/english/info/topics2.htmhttp://www.toshibatec.co.jp/joho/copier/english/info/topics2.htm


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Highly complex, large scale model

$1.586B net revenue (FY03)

Legacy order promising using ATP

Disparate planning tools across supply chain

Reactive, manual, and time consuming plan analysis

1 week planning cycle

Manual forecast generation No system supported S&OP process

Runs worldwide manufacturing and sales operations using ASCP, DP,and GOP

Runs optimized enterprise plan, twice/week Plan includes 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

Scheduling 2 million operations 6-8 BOM levels, ~25 components per BOM >50,000 items, 6 month planning horizon < 50 ASCP and 10 DP users >20 orgs 25Gb memory model, end-to-end 15 hrs run

$2.53B and $0.76B net revenue (FY03)

Legacy order promising using ATP

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, newproduct introductions, or promotions

Runs worldwide manufacturing and sales operations using ASCP,DP, and GOP

Runs weekly unconstrained enterprise plan

High value, low/moderate volume demand; using 32 sub-plans, newproduct introductions, and promotions

Using real-time ATP to promise orders

Using multi-level ATO and PTO models

Planning ~1,500,000 forecast entries

6-12 BOM levels, ~1000 components per BOM

~400,000 items, 12 month planning horizon

200 ASCP and 15 DP users

12 factory orgs, 5 SMI orgs, 1 CM org

15Gb memory model, end-to-end 12 hrs run

Agilent, Worldwide

SEMICONDUCTOR PRODUCTS GROUP (SPG)

AFTER ORACLE

BEFORE ORACLE BEFORE ORACLE

AFTER ORACLE

TEST and MEASUREMENT, and AUTOMATED TEST GROUP (ACE)

PLANNING BENCHMARK PLANNING BENCHMARK


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GrafTech International, Worldwide

HQ in Wilmington, DL, USA

Manufacturer of carbon and graphiteproducts, used in steel and other metalsindustries

$700M revenue

13 manufacturing facilities on 4 continents

Customers in 60 countries


AFTER ORACLE

Benefits

Organization had tremendous challenges keeping up with fastchanging and demanding graphite electrode business climate

Internationalization issues

No metrics to drive decisions to improve profitability

No system supported network design process

Runs worldwide network design optimization using SNO

Multiple simulation scenarios across 13 manufacturing facilitiesworldwide

Improved service levels through lead time reduction

Using storage, transportation, sourcing, operating, and labor costs

Optimization of entire worldwide supply chain network

Reduced inventory by 40%

Reduced lead times by 20%

Strongly improved resource utilization, globally


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Dow Chemical, Worldwide


AFTER ORACLE

Benefits

Optimization of entire worldwide supply chain network

Reduced inventory by $350 million

Reduced carriers from 200 to 12

Strongly improved resource utilization, globally

HQ in Germany

Manufacturer of chemicals

$28B revenue

7 manufacturing facilities

Customers worldwide

Organization had tremendous challenges keeping up with fastchanging business climate

Inventory levels and logistics costs were proportionally high

No system supported network design process

No production scheduling system

Runs worldwide network design optimization using SNO

Multiple simulation scenarios

Improved service levels through lead time reduction

Using storage, transportation, sourcing, operating, and labor costs

Improved production throughput in all 7 plants


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Cervecera Quilmes, Latin America

Market leader in Argentina, dominates beer markets inLatin America (Uruquay, Paraguay, Bolivia, Chile)

Quilmes supplies 60% of beer in these markets

Quilmes bottles 90% of PepsiCo branded sales in Argentina

Annual revenues $940M

Consolidated assets of $1.5B

Developed regional SNO model to answer critical logistics questions


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Quilmes Capacity Planning

Sourcing ofraw materials?

OW?

Malt?

What?

When?

How much?

What?

When?

How much

Interplantmovements?

Deployment ofinventories?

When?

How much?

Where from?

Seasonalchanges?Interplant

movements?

Increases / divestment ?

Supplier

Brewing Bottling Warehouse

Demand

Brewing Bottling

SupplierDemand

DC

Warehouse.

Demand



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Quilmes Capacity Planning

Quilmes management can evaluate: Impact of changes in demand mix - size (specialization and de-

specialization of bottling lines)

Impact of changes in demand mix - brew (specialization and de-specialization of plants)

Acquisitions: opening and closing of production lines, plants, and DCs

Responses to demand uncertainty

Changes in sourcing of critical supplies for a given plant and period

Integration of processes and acquisition of a supplier or suppliers



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How To Get There ?


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Start with Unconstrained ASCP

Improve planner productivity

New productivity enhancing UI

Planner collaboration

Reduce your planning cycle time frommonths to hours

Holistic planning

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

Better MRP solution at low initial cost

MRP APS Common Infrastructure

ASCP

Oracle Applications

(11.0, 11i)

Unconstrained

Foundation for future growthCommon infrastructure


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Unconstrained ASCP

Use a single plan to plan your entire supply chain to reduceplanning cycle time

Simultaneous material and capacity planning

Plan process and discrete mixed models

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 yields

Leverage advanced problem solving and analysis tools

Comprehensive exception management and automation through workflow Extensive pegging capabilities

Measure plan to target performance Integrated performance management

Make better decisions leveraging a more comprehensive model


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Leverage a stronger foundation for

future growth


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1. Improve The Quality Of Your Plans

Improve plan quality Automatically recommend alternative

suppliers, components, resources, facilities,and routings

Generate feasible plans that respect yourmaterial and resource constraints

Make better decisions faster Cost based optimization: maximize profit,

inventory turns, and customer service

Out-of-the-box optimization

Priority based decisions

Drag-and-drop rescheduling

Improve resource scheduling Schedule simultaneous resources

Batch resources

Minimum transfer quantities

Use constraints and optimization to improve decision making


ASCP

Oracle Applications

(11.0, 11i)

Unconstrained

Constrained

Optimized


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2. Expand Your Solution Footprint

Sales and Operations Planning Balance demand, supply, inventory and budgets

Network Design Optimize your supply chain network

Demand Planning

Improve forecast accuracy Inventory Optimization

Improve service level at lower inventory cost

Global Order Promising Promise more reliable dates to customers

Collaborative Planning

Automate inventory replenishment and supplychain collaboration with your trading partners

Production Scheduling Maximize your production throughput

Start with your most important problem


Oracle Applications(11.0, 11i)

ASCP

Unconstrained

Constrained

Optimized

Demand Planning

Global OrderPromising

CollaborativePlanning

InventoryOptimization


Network Design

ProductionScheduling


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Supply Chain and Manufacturing Planning

Collaborative Planning

Demand Planning DP

Inventory Optimization IO

Global Order Promising GOP

CP

ASCP

Sales and OperationsPlanning

Forecast

Customerforecast

Orderforecast

Constrained plans

Supplier capacity

Time-phased safety stocks

Forecast anddemand variability

Supplycommits

Orderforecast

Network Design SNOForecast scenarios

Production Scheduling

Plannedorders

Firm supplyschedule

Sourcingrules

Sourcingrules

Today

Coming

Leverage integration at incremental investment

Integrated, yet Modular

PS

CUSTOMERS

PLANNING PROCESS

SUPPLIERS


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Summary


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Oracle Advanced PlanningE-Business planning solution: zero latency, real time collaboration

Consensus forecast and

production plan

Supply Planning

Demand Hub & Multi-

dimensional analysis

Automated Exceptions

S&OP Process

Single

holistic plan

Business Intelligence

Sales

Marketing

Mfg.

Manufacturing

PortalPortal

Tier 2

Tier 1

CUSTOMERS SUPPLIERS


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Why Oracle!

Integrated planning, execution, and collaboration

Holistic planning and optimization

For planners, not programmers

Integrated performance management

Lowest total cost of ownership

K T k


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Key Takeaways

Proven and complete planning solution Many live customers on multiple products, across a wide variety of industries

Large-scale, complex, worldwide deployments

For Planners, Not Programmers - Out-of-the-box optimization

Superior architecture - scalable, database-driven planning; common data model across allengines, shared with execution

Provides significant value Large reduction in planning cycle time

Significant reductions of inventory and increase in customer service levels

Enables customers to implement best practices

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

Low risk, high value transition to a better planning system


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Q U E S T I O N SA N S W E R S


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INFORMATION AGE APPLICATIONS

Oracle Advanced Planning Products 3887

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