Process Manufacturing Development Update

Russ Bayles, EBS Manufacturing Product Strategy Manager

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.

Agenda

• OPM Development Update• R&D Investments• Future Direction

• MOC

© 2008 Oracle Corporation – Proprietary and Confidential

* ASCP = Advanced Supply Chain Planning* PIM = Product Information Management

Continued Investment for Process Industries

Datalogix Acquisition

Release OPM 11i

1997 1998 1999 2000 2001

Advanced Pricing

NewRecipes

2002

Oracle Process Mfg (OPM) Release 11Oracle Technology

OrderMgmt

2004

High VolumeOrder

Processing

2006

Trade Mgmt

UCC NetGDSN

1SYNCCert

RFID Transactions

PromoFund Mgmt

POSIntegration

DeductionMgmt

MaintenanceMgmt

2003 2005

ASCP*

DemandPlanner

ProdDataMgmt

CustomerDataMgmt

PIM*

GlobalATP

SalesContracts

G-LogAcquisition

DemantraAcquisition

SiebelAcquisition

Psft/JDEAcquisition

2007

AgileAcquisition

2008

MES for Process Mfg.

2009

MOC for Process Mfg.

LCM for Process Mfg.

R12: Update

OPM R12 Customer update

• Live OPM – 53• New Installs – 48• Upgrades – 5

• 3 migration• 2 re-install

• Current R12 Implementations:• R12 in progress - 14• Upgrading - 9

Summary of OPM R12 Features

• Common Inventory• Dual unit of measure control • Advanced lot control• Material status• Enhanced inventory allocation rules• Migration Scripts• Views for historical data

• Process Product Development• S88 Compliant Org Structure• Item Revisions• Least Cost Formulation • Ingredient Substitutions

• Regulatory Integration to Third Parties

• Process Quality• Enhanced receiving inspections• Corrective action request and processing

• Process Execution• Item Revisions• Reservations • Move orders• More MSCA transactions• Dispatch List

• MES for Process Manufacturing• Batch Journal/Electronic Batch Records• Dispensing and Pre-weigh• Label Management• Deviation Management• Improved UI/ Processing instructions

Resource Dispatch Report

Post - R12: Update

Summary of OPM 12.0 RUP Features

• MES for Process Manufacturing• Touch Screen Dispensing• Supervisor Workbench (Dispense Planning)

• Process Execution• LPN Support in Desktop Forms• Fixed Process Loss

• Regulatory• Extended Regulatory Data Support

• Process Quality• LPN Support in Desktop Forms

• Common Inventory• Intercompany Shipping Flows for Process

Complete Process Support for Work Instruction Display, Dispensing, Batch Progress Tracking, and Ingredient Consumption Reporting

•Touch Screen design•Bold Graphics to view status across room•Process guides operators through work instruction view, progress reporting, and material

consumption tracking•Integration to Scales and other devices•Check in – check out locks operation•Electronic Signatures•Quality data collection and lot data capture for genealogy

Touch Screen Dispensing Single screen, step by step processing, reducing processing time and risk R12.0 - RUP

Supervisor Workbench (Dispense Planning) Graphical Mode

Dispense Planning details at Area/booth,

Resource, Storage Area

Dispense Capacity Plan Vs

Actual

Display Bucket (Daily / weekly)

R12.0 - RUP

13

LPN Support in OPM Desktop Forms Streamline operator actions through online support of container management

• LPN Support added for Item Reservations for Process organizations

• LPN Support added to Select Available Inventory

• LPN Support in the Batch Material Transactions form

• LPN Support added for Item Samples,

• LPN Support added to all of the Sample Group related forms

• Support of Delayed LPN Entry added for Quality Samples, independent of Delayed Lot Entry.

R12.0 - RUP

14

Fixed Process LossAdjust batch quantities to account for material loss due to changeovers

•Fixed Process Loss represents the production loss quantity that is fixed irrespective of the quantity of product being produced or ingredient being consumed. For example, residual material left in pipelines during production changeovers.

•Fixed Process Loss can be defined in Routing Class, Routing, Recipe and Recipe validity Rules levels, with the default values coming from the level above, similar to Variable Process Loss.

•The Fixed Process Loss is applied after calculating the variable loss and it is added to the ingredient quantity or reduced from the product quantity.

R12.0 - RUP

15

Extended Regulatory Data Support Provides the ability to define, import and store user-defined Regulatory data values

• Users can create new field names, field name classes, and field name properties and then enter organization specific values for the new field name properties against a Regulatory item.

• Users can associate text based risk and safety phrases to organization specific Regulatory items.

• Users can maintain property values in multiple languages without the installation of the languages in the application .

• Users have the ability to create new field names, field name classes, field name properties, risk phrases and safety phrases through the use of APIs.

R12.0 - RUP

16

Intercompany Shipping Flows for Process Simplified Financial processing through automatic creation of Invoices

• Users can identify the chain of operating units and associated inventory organizations involved in the costing, transfer of liability, and revenue so intercompany invoices can be automatically created when material is shipped from source to destination.

• Users can define logical transactions that may differ and be independent from the physical flow of goods

• Users can define different accounts for Trade and Intercompany COGS and Sales Revenue to eliminate intercompany profits

• Users can leverage Advanced Pricing to define which rules, based on price list, are used to derive the invoice price for an item.

R12.0 - RUP

R12.1: Update

Summary of OPM 12.1 Features

• Process Execution• Make to Order• Multi-Batch Actions

• Process Financials/Costing• Costed IBOM Report

• Regulatory• Regulatory Partner Certification

• Process Planning• OPM Batchable Resources

• Common Inventory• Lot Genealogy Enhancement• On-Hand Material Status

Make to Order - Process Manufacturing Reduce Lead Time by Linking Supply and Demand Directly

• Create a FPO/Batch from Sales Order

• Rules based Order creation

• Automatic reservation of supply to demand

• Workflow based messaging to production

R12.1

Group Multiple Batches for Mass ActionsIncreased productivity for batch flow transactions

• Grouping multiple batches for a user selected criteria

• Simple and user friendly window to perform select action on a group of batches

• Mass transact batches for all Batch actions

• Release, Complete, Close, Un-Release, Re-Open, Revert to WIP, Auto Detail

Check off Check off batchesbatches

Select Select ActionAction

Execute Execute ChangeChange

R12.1

• Robust cost reporting capability with drill-down to costing data from summary to cost component and item level details with multiple views

• Granular view of the costs, enables management to control costs and measure efficiencies

Costed Indented Bill of Materials ReportProvides sound basis for performance management, control by exception reporting and establishing product margins

R12.1

OPM Batchable Resource Increase efficiency of resource usage

• Define OPM Plant Resource as Batchable• Batchable Resource in ASCP and Production Scheduling• Plan & Schedule multiple batches together in a resource• User defined attribute values, temperature, color, duration• Min/Max spot capacity• Pull forward window

R12.1

Lot Genealogy Enhancement Faster access to information through improved form navigation

• Refresh Genealogy Tree with a different top level node, no longer needing to go back to the query window

• Expanded levels of detail in the Navigator Window

R12.1

On-hand Material Status Streamlines material handling, supports separation of material handling and quality control roles

• Allows strict separation of responsibility between material transfer and status update, with material movement maintaining current status

• Allows multiple statuses for a lot in different locators AND multiple statuses for different lots in the same locator

• Track and update status of material at the on-hand level (e.g. item/subinventory/locator/lot combination)

• Track material status for the contents of a LPN

R12.1

On hand status

Lot A: QCHOLD Lot B: QCHOLD

Lot A: USEATRISK Lot C: ACTIVE

Loc: RECV

Loc: MFG-STAGE

R12.1.2 Update

Summary of OPM 12.1.2 Features

• User Interface Improvements• Landed Cost Management Integration

User interface improvements

• Redesigned Home Page• Navigator and Favorites Links added to global

header• Look-ahead LOV enhanced to become suggestive

• Inline list appears after user types in 1 or more characters and pauses

• Up to 200 rows are shown at a time with scrolling• Inline list can be further filtered on typing more

characters

• InlineText Attachments

Oracle’s Landed Cost Management • Oracle’s Landed Cost Management application is a new product released on

EBS r.12.1.

• Oracle Landed Cost Management captures extended supply chain costs (freight, insurance, duties, taxes, etc.) and attributes them back to the products which incurred them

• Costs can be estimated during PO creation and receiving

• Actual costs calculated when invoices arrive to identify variances

• Receiving estimates and any variances automatically update inventory valuation and accounting

Kansas City US Port

Vessel CarrierHK PortShipment to HK

Customer

$100 $2 $3 $20 $3 $2 $140

China Manufacturing

Buyer

An additional 40% is added on to the purchase price

$5Duties

$5Broker Fees

Total Landed Cost

Issue PO

Landed Cost Functionality for OPM• Support of Landed cost for all receiving transactions

• Receive• Correction• Return

• Support LC adjustments • Actual Cost Process • Lot Cost Process

• Introduced new Profile GMF: Landed Cost Adjustments Transfer Method to Inventory In Actual Costing with • Apply whole LC Adjustment to Inventory • Apply LC Adjustment based on the Period Opening Balance

• Post LC Adjustment journal entries in OPM Accounting Pre-Process• Introduced New event types:

• LC Adjust Deliver, • LC Adjust Receive, • LC Adjust Expense Deliver • LC Adjust Valuation

Future:

• Outsourced Manufacturing and Outside Processing• PLM Integration – A9 and PLM for Process• Support for Lean Manufacturing Concepts

independent of Flow Manufacturing Product• Make generic concepts available to other Mfg methods

• eKanban / Kanban Scheduling• Lean Accounting

• Analytics• Continued investment in MOC• Manufacturing BI

• More Mobile Supply Chain Apps for Process Industries

Future R&D Investment ConsiderationsSelected Key Initiatives

Now Recruiting R12 Customers for OPM CAB

Enhancement Requests via MetaLink

Special Interest Groups (SIGs)

CustomerAdvisory Boards (CABs)

Strategy Councils

FusionStrategy Council

CIOAdvisory

Board

GCP

Strate

gy

Devel

opmen

t

Custom

erIO

UC

GCP

OraclePull

CustomerPush

Strategic

Tactical

Overview• Average of 15-20 customers

per CAB• Management level of typical

member: Manager/Director• Number of meetings per year:

• In person: 1-2

• Virtual: 1-2

• Managed by Oracle’s Product Management and Strategy Organizations

CAB BenefitsBenefits to Customers• Direct influence on product designs and

direction.• Direct contact with product team. • Inside track on future functionality and

releases to help plan implementations better.• Knowledge of industry best practices from

participating companies.

Benefits to Oracle Development• Direct customer feedback on product

requirements and designs.• Develop relationships for customer references.• Feedback on competing solutions.• Develop relationships for customer references.• Customer quotes for marketing materials.

_ __ _

CAB Member Selection Criteria

• Has licensed and implemented (or in the process of implementing) a current version of an Oracle Applications product or products.

• Must sign the Oracle Confidential Disclosure Agreement. • Required to participate in both sales and marketing reference

activities with Oracle. • Has commitment and sponsorship of Customer’s executive

management. • Willing to travel at own expense to CAB meetings.

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