205210 project driven supply chain (pdsc)
TRANSCRIPT
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Project Driven Supply Chain (PDSC)
Hub and Spoke Solution
A joint Solution from Infosys and Oracle
Collaborate 2013
Industry Challenges
2
Constant change of engineering
specifications affecting ability to deliver
products On time
High inventory cost to meet service levels
Lack of integration between manufacturing
and installation service
Lack of process alignment and system
design
• Change in engineering specs
• Change in BOM, Planning BOM
vs. Project BOM
• Keeping track of part numbers
• Keeping delivery in Sync with
project plan
• Inventory build up to meet high
degree of service levels
• High inventory build up cost to
meet service levels
• Reduced operational efficiency
due to high inventory
• Project plan and supply plan is out
of sync
• Change in plan not reflected in
other plan
• Project critical path not adequately
communicated to supply planning
• Process & systems are in silo’s
• Process & systems are sub optimal
• Lack of trust between functions
• Lack of visibility
Industry ChallengesChange in engineering specs..
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SEQ PART NUMBER
0 PBA166370-1
1 PBA166370-2
1.1 PBA166370-3
1.1.1 PBA166370-4
1.1.1.1 PBA166370-5
1.1.2 PBA166370-7
2 PBA166370-88
2.1 PBA166370-89
SEQ PART NUMBER
0 PBA166370-1
1 PBA166370-2
1.1 PBA166370-3
1.1.1 PBA166370-4
1.1.1.1 PBA166370-5
1.1.1.2 PBA166370-6
1.1.2 PBA166370-7
2 PBA166370-88
2.1 PBA166370-89O
rig
ina
l P
lan
Ch
an
ge
d P
lan
Original
Spec
Changed
Spec
Change in spec results in change in datesKeeping track of BOM change is
a major concern
New part number due
to change in specsDelay in shipment
due to change in
specs
Shipping date of
part number is
aligned with
project plan
Project Management Supply Planning
Industry ChallengesHigh inventory cost to meet desired service levels..
4
Origin
al P
lan
“On time” delivery
Improved Service Levels
High Customer
Satisfaction
Increased
inventory cost
Hold high
inventory
Results in..
Supply DisruptionKey Component Shortage
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Supply Planner
Supply Planner identifies that
few Sales Orders would not
be completed on time due to
disruption in Supplies .
Supply Planner
Supply Planner receives
information that there would
be a disruption in the
Supplies for a particular
component from the Vendor.
PM Dashboard is reviewed and based
upon it the Supply Planner decides to
Delay non critical Projects (Sales Orders)
in Baseline Plan
Supply Planner / Project
Manager
RP
Supplier
Capacity
Dashboard
1. Supply
Disruption
2. Impact
Analysis
3. Send Information
to Project Manager (e-mail)
4. Decision
Project Manager
Update Baseline
Plan
ERP /
Legacy System
5. Update ERP/Legacy
Project Manager
Project Manager
Analysis the
impact of late
Penalty.
Project
Management
Dashboard
Dashboard displays
the Late Penalty
factor for the Projects
getting delayed.
Dashboard displays
the Supplier Capacity
impact on the Current
Sales Orders or
Projects.
Supply Disruption – Use Case Execution
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Creates Baseline
Supply plan with
data sync up from
Primavera
Supply Planner
1Review future
Projects & identify
Revenue Shortfall
Run simulation
plan after updating
the disrupted
supplier capacity
Supply Planner
2Displays the
Capacity Impact
Dashboard
Supply Planner
3Sends the dates to
Primavera for
Analysis
Supply Planner
4
Creates Reflection
Plan for What If
Analysis
Project Manager
5Triggers the
interface for
receiving dates
Project Manager
6Analyze the Late
Penalty
Dashboards
PM/Supply Planner
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Supply Planner
8
Supply Planner
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Sends the dates
back to Primavera
for Analysis
Supply Planner
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Creates a new
reflection plan and
triggers interface
Analyze the
Optimized Late
Penalty Charges
11 12
Project Manager Project Manager
Run simulation
plan after updating
the supplier
capacity
Update the
simulation plan
with supplies from
additional supplier
Supply Disruption – As Is State
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SO numbers
aligned to the
Projects
Zero Variance
indicating
Projects are on
track
Portfolio of 5
Projects
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Executive
Review
Revenue
Forecast
Identify
Revenue
Shortfall
PMO
Analysis of
Revenue
Forecast
Identify
Projects
for
Revenue
Pull- In
CFO PMO Project Manager
What if
Analysis
Projects
Analyze
cost
Analyze
Revenue
Analyze
Headcount
Requireme
nt
Status
Meetings
Supply Planner
S&OP
Review
Meetings
What If
analysis for
Revenue Pull-
In
What if
analysis
Supply
Planner
Revenue Shaping
CFO
Dashboards
PMO
DashboardsPM
Dashboards
Runs &
Analyze
various
Simulation
Plans
Suggest best
possible
solution back
to Project
Manager
Supply
Planner
Dashboards
Revenue Shaping
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Executive reviews
revenue forecast
PMO analyses the
portfolio to identify
opportunities for
expediting project
deliveries
Identifies Projects
for What if
analysis
Identifies Revenue
Shortfall
PM Analysis
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Incremental
Revenue
Incremental
Headcount
Incremental Cost
due to Contract
Resources
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Revenue Shaping
Total Cost associated
with various Simulation
Plans
Charts show
parameters Revenue
and Gross Margin
associated with
Simulation Plans
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On time
metrics
Engg.
Submittals
Drill down
Engg.
Submittals
On Time
metrics
Shipments
Drill down
Shipments
Engineering
Manager
Procurement Manager Project Manager
Engineering
review
On time
metrics
delivery
milestones
Critical
Path
Analysis
Supply Planner
“On Time” Delivery
Procurement
Review
Project
Milestones
Review
Headcount
Analysis
Impact of
penaltiesEngg. Manager
Dashboards
Procurement
Manager Dashboard
PM
Dashboard
What if
analysis
Supply
Planner
Runs &
Analyze
various
Simulation
Plans
Suggest best
possible
solution back
to Project
Manager
Supply
Planner
Dashboards
On Time Delivery – Engineering Submittals & Procurement
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On Time delivery
Status -
Engineering
Submittals
On Time delivery
Status –
Procurement
• Engineering submittals grouped by
“On time” delivery metrics – Red,
Yellow, Green.
• Pie Chart projects the percentage
number of submittals in red, green
and yellow categories
• Drill down shows the details of
engineering submittals
• Shipments grouped by “On time”
delivery metrics – Red, Yellow, Green
• Pie Chart projects the percentage
number of shipments in red, green
and yellow categories
• Drill down shows the details of
shipments
Late Penalty
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• Projects categorized into Red,
Yellow and Green depending on
the late penalty charges
• Pie Chart shows the number of
projects in Red, Yellow and
Green Categories
• Drilldown provides information
on late penalty charges of
projects in the portfolio.
• Details on penalty charges
grouped by Business Unit
Projects on
time with no
late penalty
Drilldown to show
the late penalty
charges
Count of Projects
in different
categories
On Time Delivery- Milestone Status
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Number of
Milestones
Delayed
Impacted
Revenue Due to
Delayed Milestone
• Milestones are grouped by “On time”
delivery metrics - Red, Green and
Yellow
• Narrow down the search to specific
Quarters, Business Unit and
Customers
• Histogram to shows milestone count in
monthly time buckets.
• Pie chart projects the percentage
number of milestones in red, green
and yellow categories.
• Drill down provides
information on impacted
revenue due to the delay in
milestones
• Pie chart projects the
percentage of milestones in
red, green , yellow categories
for the particular month
Increase in Project
Demand Percentage
shows more projects
gets complete on time
Increase in On
Time Delivery for
Individual
Customers
On Time Delivery
Project Demand %
increases
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