oracle advanced supply chain planning along with oracle shop

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 Systems

Customer Service Lot Tracing & RMA (Genealogy)





- 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)





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


Manufacturing Related InformationEvent Based Planning Paradigm




• 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


XML Based Integrations




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

http://www.soitec.com/home.html

Real-Time Synchronized Supply Data Validated & Ready for Planning


Manufacturing Related InformationEvent Based Planning Paradigm




• 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

http://www.alltheweb.com/go/1/IB/img/http/www.eclipseaviation.com/press_photos/E500engine_sm.htm

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

oracle advanced supply chain planning along with oracle shop

Documents

effective

primary route

single plan

cleaned amp

solution

lot

real

multi