oracle advanced planning - twin cities manufacturing...
TRANSCRIPT
Why upgrade from MRP to Advanced Planning
Oracle Advanced Planning
Sid PereraPrincipal Consultant
• Response 1: Maintain Excess Inventory
• Response 2: Reserve Production Capacity
• Response 3: Expedite Everything!
Traditional ApproachMulti-step planning processes, high latency, limited collaboration
Supply chains built on INVENTORY
Customers Suppliers
Tier 2
Tier 1
Marketing Forecast
Sales Forecast
MfgForecast
Distribution Plans
Production Plans
ManufacturingPlans
t = weeks?
Demand Planning Process
Supply Planning Process
Build your supply chain on INFORMATION not inventory
• Enable closed loop planning processes across your value chain
• Provide total supply chain visibility
• Make better decisions
• React immediately to changes in supply chain
Move To A More Competitive ModelE-Business planning solution: zero latency, real-time collaboration
Internet
Customers Suppliers
Tier 2
Tier 1
Marketing forecast
Sales forecast
Mfgforecast
Single holistic plan
t = hours
Consensus forecast
Automatedexceptions
PortalPortal
Collaborativedemand plan
Collaborativesupply plan
Automatedexceptions
Automatedexceptions
Collaborative Planning Process
Demand Planning Process
Supply Planning Process
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Our Solution
Oracle Advanced Planning
Supply Chain Intelligence
Demand Planning
Inventory Optimization
Supply Chain and Manufacturing Planning
Manufacturing Scheduling
Transportation Planning*
Collaborative Planning
SCI
DP
IO
Deployment Planning** ASCP
Global Order Promising GOP
MS
TP
CP
ASCP
Sales and Operations Planning
SC Exception Management CP
DevelopMarketSellOrderPlan
ProcureMake
Fulfill
Service
MaintainFinance HR
Projects
All Product,Customer,& SupplierInformation From short-term to long-term
From
det
ail t
o su
mm
ary
Complete e-business planning solution
* Coming in 11i.10 ** Coming in 11i.10+
Oracle Advanced Planning
● Improve forecast accuracy– Collaborative demand planning with customers
● Increase visibility and reduce shortages– Collaborative supply planning with suppliers– Collaborate across multiple tiers
● Reduce inventory carrying cost– Vendor managed inventory– Consigned inventory
● Analyze demand and supply fluctuations– Waterfall analysis– Liability analysis
● React quickly to supply chain events – Supply chain exception management– Global fulfillment visibility
Key capabilities
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Oracle Advanced Planning
● Improve delivery performance up to 35%
● Reduce inventory levels up to 25%
● Improve forecast accuracy up to 35%
● Reduce planning cycle time to hours
Enables you to:
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WHERE TO START?
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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– Improved scalability and performance
● Make better decisions faster– Improved exception resolution
● 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
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Implementing Unconstrained ASCP
Upgrade to 11i (optional)0 Upgrade to 11i (mandatory)0Discrete Manufacturing Process Manufacturing
Install1 ▪ Install ASCP using the 11i rapid install process▪ Decide on deployment (one instance, distributed)
Setup2 ▪ Link Planning instance to ERP source instance
Collect3 ▪ Run data collection process to collect ERP data for planning▪ Collect from one or more source instances
Plan4 ▪ Define plan and plan options▪ Run plan
Analyze5 ▪ Launch Planner Workbench to analyze plans
Same effort to deploy as MRP – Reuse all existing setup!
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What our customers say …Mykrolis
30 day implementation; improved on-time delivery from 70% to 90%"The Oracle solution provides our planners with instant access to global information, and
simulation tools for reacting to changing market conditions. The result is more accurate plans, fewer errors, and improved bottom line service to our customers." --Mike Dapcic, CIO
American Power Conversion"For the first time, we could set up a clear sourcing network, set minimum and maximum
levels, and drive internal replenishment based on demand. This took a lot of the guesswork out of manufacturing planning and greatly reduced our inventory levels."--Lisa Sipe, CIO, American Power Conversion
Primarion"Oracle Advanced Planning gives us more time to run our day to day business operations.
Instead of dedicating an internal team to generate updated inputs and running manual tools, we simply generate one plan from which to execute." -- Keith Palevsky, Director of Business Operations, Primarion
13 Copyright © Oracle Corporation, 2003. All rights reserved.
STRONGER FOUNDATIONFOR THE FUTURE
Two Growth Paths
1. Improve the quality of your plans
• Constrained planning• Optimized planning
2. Take advantage of additional functionality
• Demand Planning• Collaborative Planning• Global Order Promising• Inventory Optimization
MRP APS Common Infrastructure
ASCP
Oracle Applications(10.7, 11.0, 11i)
Unconstrained
Use an incremental approach to extend your foundation
ASCP = Advanced Supply Chain Planning
Constrained
Optimized
DemandPlanning
CollaborativePlanning
InventoryOptimization
Global OrderPromising
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1. Improve the quality of your plans
Constrained and Optimized Plans
● Improve plan quality – Automatically recommend alternative
suppliers, components, resources, facilities, and routings
– Generate feasible plans that respect your material 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
MRP APS Common Infrastructure
ASCP
Oracle Applications(10.7, 11.0, 11i)
Unconstrained
Constrained
Optimized
For planners, not programmers
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What our customers say …Tube Investment
Reduced inventories by 20%, increased market share from 50% to 80%“The most exciting feature of the system to a manufacturer is constraint-based planning.
Oracle provides the ability to plan, including resource and material constraints, based on suppliers' inventories and capacities." -- Mr. V. A. Raghu, Managing Director, Tube Investments Ltd.
Canon VirginiaReplaced i2 and cut planning cycles from weekly to daily"With Oracle E-Business Suite 11i, we have moved from weekly to daily planning, which has
significantly improved our response time." -- Clair Walizer, Senior Developer and Analyst, Canon Virginia, Inc
Sony SemiconductorImproved delivery performance, reduced planning cycle time from multiple weeks to
days, increased productivity, improved plan quality with holistic, integrated global plans for the entire supply chain, real-time integration between planning and execution
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2. Take advantage of additional functionality
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Expand into …
● Demand Planning– Consensus forecasting
● Inventory Optimization– Postponement and risk pooling
● Global Order Promising– Available and capable to
promise
● Collaborative Planning– Collaborate with your
customers and suppliers
MRP APS Common Infrastructure
ASCP
Oracle Applications(10.7, 11.0, 11i)
Unconstrained
Constrained
Optimized
DemandPlanning
CollaborativePlanning
InventoryOptimization
Global OrderPromising
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Demand Planning
● Compare and consolidate disparate forecasts
– Sales, Marketing, Manufacturing, Customers, Point of Sale (in units or $$)
– Multi-dimensional OLAP to allocate and rollup
● Improve forecast accuracy– Better statistical forecasts– Forecast planning percentages for models and
options– Get visibility to customer demand changes
● Improve demand planning cycle time– Continuous demand planning process– Automated internal collaboration
● Improve sales promotion planning– Forecasting integrated with promotion planning– Measure effectiveness
Drive to accurate consensus forecast
Internet
Customers
Marketing forecast
Sales forecast
Mfgforecast
Consensus forecast
Portal
Collaborativedemand plan Automated
exceptions
Demand Planning Process
Inventory Optimization
● Reduce inventory without sacrificing customer 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
Manage to uncertainty, reduce inventory, improve customer service
Suppliers
ContractManufacturers
FinalAssembly
Central Distribution Centers
Regional Distribution Centers
Customers
Without Postponement With Postponement
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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
● 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
Promise more accurate orders with zero downtime, 24x7
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 improve fulfillment
– Suppliers manage your inventory– Manage your customers’ inventory
● React quickly to supply chain exceptions
– Waterfall analysis– User-configurable exceptions– Automated exception handling via
workflow
Full visibility and synchronization across extended supply chain
ContractManufacturer
You SupplierCustomer
Run plan
Optional
Forecast‘memory’
Supply commit‘boards’
Supply commit‘memory’
Demand‘boards’
Run plan
Demand‘systems’
Supplyforecast
Consensusforecast
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VMI and Consigned InventoryWith suppliers and customers
YouSupplierCustomer
Receive items
Pay on receipt/use
Check inventory status
Ship items
VMI Agreement(with supplier)
VMI AgreementVMI Agreement -
Receive items
Pay on receipt/use
Ship items
VMI Agreement(with customer)
Send consumption advice
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Supply Chain Exception Management
What is the problem?
Planningrun
Next Planningrun
! !!!
Highlight disruptions when they occur
What is the impact?
How do I resolve it?
How well did I do?
Custom and seeded exceptionsConfigurable thresholds & priorities
Demand-supply allocation,Simulation, Workflow
Business intelligence
Customer order impact analysis via supply chain pegging
Suppliershort of
commitment
Your forecastis short of
commitment
Suppliercommits
more capacity
Customerloweredforecast
What our customers say …Intersil
Projected savings $13M over 5 years; 30% reduction in inventory costs"Oracle Advanced Planning has taken Intersil's business processes to the next level,
allowing us to reduce the time and cost of our demand planning efforts, which ultimately makes us a better supplier to our customers." -- Don Cross, director of Operations Planning and Customer Service, Intersil Corporation
Knowles ElectronicsReduced inventory $1Million/month“We now have complete visibility into the supply chain and all the inventories. We've been
able to reduce our inventory by more than a million dollars a month just because we now know where it is. We now have the ability to see when the product really will be available so we can give the customers valid promised ship dates. " -- Randy Kjell, Director of IT, Knowles Electronics
Alcatel50% inventory reduction leading to savings of $15M/year; 100%
outsourced"Because of the visibility we now have across our virtual supply chain, we have been able
to significantly reduce inventory liability. Instantly sharing information about changes in demand or supply with our outsourcing partners gives us all the most precise view of where bottlenecks may occur. To me, this is a real competitive advantage." -- Gary Schliekelman, Director of Planning, Alcatel e-Business Networking Division
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INTEGRATED, SCALABLE, and OPEN
Supply Chain and Manufacturing Planning
Collaborative Planning
Demand Planning DP
Inventory Optimization IO
Global Order Promising GOP
CP
ASCP
Sales and Operations Planning
Take Advantage of Seamless IntegrationIntegrated demand, inventory, and supply planning solution
Suppliers Customers
Forecast
Customerforecast
Orderforecast
Constrained plans
Supplier capacity
Time-phased safety stocks
Forecast and demand variability
Supplycommits
Orderforecast
Scalable and Open Architecture
● Runs against all versions of Oracle E-Business Suite
– Supports 10.7, 11.0, 11i– Can be deployed in
distributed mode
● Standards based– Deploy against any other
ERP or legacy system– XML, EDI, and flat file formats
● Reliable – All plan information resides in
the database– Hot backup and recovery
● Enterprise and trading partner portals
Advanced Planning
APIS
Trading partners Internal Users
Internet
Oracle 10.7, 11.0, 11i
Legacy Systems
XMLEDIFlat file
Order Promising Engine
Portals
Express OLAP
KPIs Workflows Plans
Open and Scalable
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Summary
Move from black and white …Multi-step, high latency, limited collaboration
Customers Suppliers
Tier 2
Tier 1
Distribution Plans
Production Plans
ManufacturingPlans
t = weeks
Supply Planning Process
?
Marketing Forecast
Sales Forecast
ManufacturingForecast
Demand Planning Process
… to Color: Oracle Advanced PlanningE-Business planning solution: zero latency, real-time collaboration
Internet
Customers Suppliers
Tier 2
Tier 1
Marketing Forecast
Sales Forecast
ManufacturingForecast
Single Holistic Plan
t = hours
Demand Planning Process Supply Planning Process
Consensus Forecast
Automatedexceptions
PortalPortal
Collaborativedemand plan
Collaborativesupply plan Automated
exceptionsAutomatedexceptions
Collaborative Planning Process
33 Copyright © Oracle Corporation, 2003. All rights reserved.
Why Upgrade to Advanced Planning
● 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
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AQ&Q U E S T I O N S
A N S W E R S