John ConlinPrincipal Solutions ConsultantManufacturing & Supply Chain ApplicationsOracle Corporation
E Mail : [email protected]
e-BusinessStarts on theShop Floor
• Keep it SIMPLE...
• Leverage Technology
• Front & Back Office Integration
• Effective collaboration across business processes determines success or failure
Current Supply Chain Environment
Solution Weaknesses:
• Customer requirements are secondary
• Lack of synchronization between customer demand data & manufacturing supply data
• Interface management obstacles
• ERP is NOT integrated with MES
• Batch interfacing susceptible to “old data”
Planning
MES MES
ATPATPCTPCTP
ApplicationApplicationDataData
WarehouseWarehouseERPERP
CustomerDemand
batch
MES
Not SynchronizedNot SynchronizedExpensive Interface ManagementExpensive Interface ManagementLoose Mfg. History & GenealogyLoose Mfg. History & Genealogy
batch
Oracle Shop Floor Management
Solution Overview
e-Business Platform Starts with...Well Managed Supply Chain (Visibility)
• Architected for “plug-in” Capacity
• Leverage Visibility into Customer Service
• Evolve into Virtual Supply Chain
• Conform to Expanded Standards
• Fully Integrated Supply Chain Planning
• Customer/Demand Focus...
OSFM is a solution, initially developed for the Semiconductor Industry….
Major Semiconductor industry leaders are OSFM’s customers today!
The solution is now being expanded across all industries
Oracle Manufacturing Solution:
• Customer responsiveness enabled through real-time data
• Real-time global WIP, inventory visibility, planning
• Multiple MES feeding data through OSFM to ERP
• Instant access via Internet
InternetCustomer
Sales
Oracle Shop Floor ManagementOracle Shop Floor Management
Supplier MES Internal MES
Oracle Integrated Supply Chain Solution
Oracle ERPOracle ERP
SC PlanningSC PlanningATP ServerATP Server
Demand PlanningDemand Planning
CustomerCustomerRelationshipRelationshipManagementManagement
(CRM)(CRM)
SupplySupplyChain Chain
ManagementManagement(SCM)(SCM)
ProductProductInnovationInnovation
ManagementManagement(PIM)(PIM)
MESMES MESMESMESMES
Flexible Routing Definitions
“Primary” route to define:• standard costs for an assembly• manufacturing lead times• used for planning
BA
F
C
D
E H
G
Possible Networks
BA
F
C
D
E H
G
Primary Route
BA
F
C
D
E H
G
Actual Route
Comprehensive routing network• model your shop floor• define possible rework points• can be just linear
Actual route taken while in WIP• compare with primary route:• cost variances• dynamically built
EB
C
Advanced WIP Transactions
Split one lot to out to multiple lots
Merge multiple lots into one lot
Update Assembly for existing lot
Update Routing lot to another lot for a different assembly
Bonus in lots beginning at any operation sequence
Update Quantity of an open lot at any operation sequence
Customer Service Real-time Global Lot Status
Oracle ShopFloor Management
?... ...
Flexible Routing Definition
WIP Lot Moves
OSFM Lot Transactions
All Lot Transactions areMirrored in OSFM
(Real-time)
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution Systems
Customer Service Lot Tracing & RMA (Genealogy)
Oracle ShopFloor Management
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution Systems
- All Operations are Captured- All Operations are Captured- Trouble Shooting for Engineers- Trouble Shooting for Engineers- Parent Child Relations- Parent Child Relations
WaferWaferFabFab
ProbeProbe AssemblyAssembly& Test& Test
FinishedFinishedGoodGood
ShipShipProductProduct
. . .. . . . . .. . . . . .. . . . . .. . .
VS0548AVS0548A
VS0548BVS0548B
VS0548A/1VS0548A/1
VS0548A/2VS0548A/2
VS0548B/1VS0548B/1
VS0548B/2VS0548B/2
VS0548B/3VS0548B/3
VS0548A/1VS0548A/1
VS0548B/1VS0548B/1
VS0548B/2VS0548B/2
VS0548B/3VS0548B/3
VS0548B/1VS0548B/1
VS0548B/3VS0548B/3
VS0548A/1VS0548A/1
VS0548A/1/1VS0548A/1/1
VS0548A/1/2VS0548A/1/2
VS0548B/3/2VS0548B/3/2
VS0548B/3/1VS0548B/3/1
VS0548B/1VS0548B/1
VS0548A/1/1VS0548A/1/1
VS0548A/1/2VS0548A/1/2
VS0548B/3/2/1VS0548B/3/2/1
VS0548B/3/2/2VS0548B/3/2/2
VS0548A/1/1/1VS0548A/1/1/1
VS0548A/1/1/2VS0548A/1/1/2
VS0548A/1/1/3VS0548A/1/1/3
VS0548A/1/2/1VS0548A/1/2/1
VS0548A/1/2/2VS0548A/1/2/2
VS0548B/3/2/1/1VS0548B/3/2/1/1
VS0548B/3/2/1/2VS0548B/3/2/1/2
VS0548/B/3/3/2VS0548/B/3/3/2
Supra 300
Supra 300
Supra 300
Supra 300
Supra 300
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
Complete Lot Genealogy
Cost Management Yielded Costing by Operation (Virtual Daily Close)
Oracle ShopFloor Management
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution Systems
Cumulative & Reverse CumulativeCumulative & Reverse CumulativeYield at each OperationYield at each Operation
100%100%Operational YieldOperational Yield
Shrinkage atShrinkage atEach OperationEach Operation
100%100%Cumulative YieldCumulative Yield
90%90%
90%90%
78%78%
70%70%
85%85%
60%60%
0%0% 10%10% 12%12% 15%15%
Yield CostYield Cost $20$20 $120$120 $265$265 $850 vs $510$850 vs $510
Total ShrinkageTotal Shrinkage 0%0% 10%10% 30%30% 40%40%
X
O= $
Operation Yielded Costing
Real-Time Synchronized Supply Data Validated & Ready for Planning
Oracle ShopFloor Management
Manufacturing Related InformationEvent Based Planning Paradigm
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution Systems
• As Manufacturing Transactions occur OSFM “readies” data for effective planning
• Data is Cleaned & Validated
Working on support for important WIP Txns
• Rosettanet PIP 7B1 ( formerly 3D8) Manufacturing
• Inbound as well as outbound
Transaction Support Via Rosettanet / OAG Ability to link vendors using different software
Oracle ShopFloor Management
XML Based Integrations
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution Systems
Co-Product Definition XA
B?
X
A B C
Inverted BillInverted Bill(“Co-Products”)(“Co-Products”)
* primary* primary
B
X
A C
Resulting BillsResulting Bills
Common Bills ReferenceCommon Bills Reference
ExistingExistingCustomersCustomers
ExistingExistingCustomersCustomers
Partial List of OSFM Customers
Highlights
75+ customers
Replacing MES in Semiconductor Assembly & Test
Real-Time Synchronized Supply Data Validated & Ready for Planning
Oracle ShopFloor Management
Manufacturing Related InformationEvent Based Planning Paradigm
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution SystemsManufacturing Execution Systems
Manufacturing Execution Systems
• As Manufacturing Transactions occur OSFM “readies” data for effective planning
• Data is Cleaned & Validated
Oracle Advanced Planning
Moving from black and white to color: Why upgrade from MRP to Advanced Planning
Advanced Planning SolutionComplete E-Business Planning Solution
ProcureProcure
ManufactureManufacture
FulfillFulfill
Service /Service /MaintainMaintain
DesignDesign
PlanPlan
MarketMarket
SellSell
Finance Finance
Human ResourcesHuman Resources
ProjectsProjects
TimeTime
Pla
nn
ing
Le
vel
Pla
nn
ing
Le
vel
Demand Planning – “ODP”
Supply Chain and Manufacturing Planning – “ASCP”
Inventory Optimization – “IO”
Minutes Hours/Days Weeks/Months Quarters Years
Order Promising – “GOP’
Supply Chain Intelligence
Supply Chain Event Management
ManufacturingScheduling – ”WPS”
Collaborative Planning – “CP”
Key Capabilities
Sales and operations planning
Inventory postponement optimization
Holistic planning and optimization
Multi-tier collaborative planning
Zero downtime global order promising
Where To Start?
From MRP …
Unconstrained material and resource planning
Basic forecasting
Basic available to promise
No collaboration
No path forward
MRP
Oracle Applications(10.7, 11.0, 11i)
… to Unconstrained ASCP Improve planner productivity
– New productivity enhancing UI– Planner collaboration
Reduce your planning cycle time from months to hours
– Holistic planning; incl. Multi-Org– Improved scalability and performance
Make better decisions faster– Improved exception resolution– Improved modeling
Reduce non-value added costs– Workflow based exceptions
Drive continuous improvement– Integrated business intelligence
Foundation for future growth– Common Infrastructure
Same effort to deploy as MRP – Reuse all existing setup!
ASCP = Advanced Supply Chain Planning
MRP APS Common Infrastructure
ASCP
Oracle Applications(10.7, 11.0, 11i)
Unconstrained
Unconstrained ASCP Use a single plan to plan your entire supply chain to
reduce planning cycle time– Simultaneous material and capacity planning– Plan process, discrete, mixed models, and lot-based– Perform forecast consumption inline
Plan at aggregate level, as well as detailed level in a single plan, with better accuracy
– Time granularity in plan horizon– Account for operational yields
Leverage advanced problem solving and analysis tools– Comprehensive exception management and automation through
workflow– Extensive pegging capabilities
Measure plan to target performance – S.C. Intelligence– Integrated performance management
Integration to Daily Business Intelligence (DBI) – Management Analysis
Make better decisions leveraging a more comprehensive model
SummarySummary
Move from black and white …
Multi-step, high latency, limited collaboration
Customers Suppliers
Tier 2
Tier 1
Marketing Forecast
Sales Forecast
MfgForecast
Distribution Plans
Production Plans
ManufacturingPlans
t = weeks
?Demand Planning Process Supply Planning Process
… to Color: Oracle Advanced PlanningE-Business planning solution: zero latency, real-time collaboration
PortalInternet
Customers Suppliers
Tier 2
Tier 1
Portal
Consensusforecast andprod. plan
Supply Planning
Demand Hub &Multi-dimensional analysis
Automated Exceptions
S&OP Process
Singleholistic plan
Business Intelligence
Sales
Marketing
Mfg
Manufacturing
Key Takeaways Achieve significant value with a better planning
system– Improve customer service up to 35%– Reduce inventory up to 50%– Improve forecast up to 35%– Reduce planning cycle time to hours
Progress at your own pace, transition gradually – Quickly start with unconstrained planning– Move up to constrained or optimized planning– Leverage out-of-the-box integration to rapidly extend
planning footprint
Leverage your existing Oracle ERP and MRP investment
– You’ve already done most of the work by setting up and maintaining the core business data elements
Low risk, high value transition to a better planning system