oracle configure to order. define and position configure to order how oracle delivers competitive...

Oracle Configure to Order

Define and Position Configure To Order

How Oracle Delivers

Competitive Landscape

Customer Successes

Supporting Resources

AgendaAgenda

The impact of Oracle’s CTO is quantifiable.

CTO is part of Oracle’s comprehensive, integrated solution for mass-customization.

Oracle’s CTO is installed and in use by world-renowned industry leaders.

Key “Take Aways”Key “Take Aways”

What is Oracle Configure to Order?What is Oracle Configure to Order?

A BUSINESS SOLUTION built to support the design, sale, manufacture,

purchase and service of configured products

Business PressuresBusiness Pressures

Customer Focused• How can I meet

customer requirements?

• How do I extend my reachto global markets?

Customer Focused• How can I meet

customer requirements?

• How do I extend my reachto global markets?

Lower Costs• How can I improve my

operational efficiencies?

• How do I control rising material costs?

Lower Costs• How can I improve my

operational efficiencies?

• How do I control rising material costs?

Customized Product• How do I keep my products

aligned to constantly changing market requirements?

• How can I efficiently mass customize my products?

Customized Product• How do I keep my products

aligned to constantly changing market requirements?

• How can I efficiently mass customize my products?

Short, Shrinking Lifecycles• How do I create a flexible

production environment?

• How do I ensure outsourcing does not become a liability?

Short, Shrinking Lifecycles• How do I create a flexible

production environment?

• How do I ensure outsourcing does not become a liability?

Raw Materials,Components

Raw Materials,Components

Value-Added TransformationValue-Added

TransformationFinished Goods

Finished Goods

DRAFT

Configuration OpportunityConfiguration OpportunityConfiguration OpportunityConfiguration Opportunity

Rework Expense 70%

Cost of Sales 25%

Technical Sales Support 25%

“Give Aways” for Unhappy Customers 90%

Revenue 5%

Rework Expense 70%

Cost of Sales 25%

Technical Sales Support 25%

“Give Aways” for Unhappy Customers 90%

Revenue 5%

Source: Gartner, 2001

Configuration GoalsConfiguration GoalsConfiguration GoalsConfiguration Goals

Customer-Focused Mass CustomizationMeet Every Customers Unique Requirements

Build Lasting Customer RelationshipDifferentiate your Company and your Products

Customer-Focused Mass CustomizationMeet Every Customers Unique Requirements

Build Lasting Customer RelationshipDifferentiate your Company and your Products

Reduce CostsPlan for Options

Build on Demand

Reduce Excess and Obsolesce

Reduce CostsPlan for Options

Build on Demand

Reduce Excess and Obsolesce

Supply Chain ChallengesSupply Chain Challenges

Efficiently… Forecast and Plan for Future Customer Orders Capture Actual Customer Demand Translate Demand into Manufacturable Product Create Supply and Synchronize with Demand Manage Inventory Maintain Visibility across the Supply Chain Ensure and IMPROVE Service Level Commitments Track and Service your Install Base

ServiceService Parts Planning

Depot Repair & Field Service

ManufactureReal time Supply Creation

Lean Manufacturing and/or Outsourcing



Oracle SolutionOracle SolutionOracle SolutionOracle Solution

Design/SellCollaborative Design

Unified Eng/Sales/Mfg BOM



PlanDemand Planning / Forecasting

Inventory Optimization



Global forecasting for models, options and popular configurations

Inventory Optimization - semi-finished product, options and popular configurations

Constraints on resources or line rates for internal manufacturing

Constraints on supplier capacity for outsourced manufacturing

Advanced Planning for ConfigurationsAdvanced Planning for ConfigurationsSupply Chain OptimizationSupply Chain Optimization

Supply Chain Intelligence

Demand Planning


Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning

Collaborative Planning

SCI

DP

IO

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

CP

From short-term to long-term

Fro

m d

eta

il t

o s

um

ma

ry

SC Exception Management

Holistic Planning and OptimizationHolistic Planning and OptimizationFaster and Better Supply Chain PlansHolistic Planning and OptimizationHolistic Planning and OptimizationFaster and Better Supply Chain Plans

Short-Term PlanningShort-Term Planning

Long-Term PlanningLong-Term Planning

SemiconSemicon

ProcessProcess

DiscreteDiscrete

FlowFlow

ProjectProjectPlantsPlants

WarehousesWarehouses

CustomersCustomers

SuppliersSuppliers

DCsDCs

Internet

• Unified solution for supply chain and manufacturing planning

• Segment the problem as needed

• Optimization for planners not programmers

• Scalable and reliable

Holistic Planning and OptimizationHolistic Planning and OptimizationOne Solution for Comprehensive Supply Chain and Manufacturing PlanningOne Solution for Comprehensive Supply Chain and Manufacturing Planning

Alternate resources, processes, suppliers, facilities, manufacturing modes, and shipping methods

Critical items and resources Aggregate resources Bills of distribution and

transfer rules Customer and supplier

facilities

Simultaneous resources Batch resources Alternate resources Minimum transfer quantities Sequence dependent setups Contiguous activities

ONE SUPPLY CHAIN MODEL, ONE PLANNING ENGINE, ONE SETUPONE SUPPLY CHAIN MODEL, ONE PLANNING ENGINE, ONE SETUPONE SUPPLY CHAIN MODEL, ONE PLANNING ENGINE, ONE SETUPONE SUPPLY CHAIN MODEL, ONE PLANNING ENGINE, ONE SETUP

Manufacturing Planning and Scheduling

Supply Chain Planning

Innovative Product DevelopmentInnovative Product Development

* Coming in a future release

Requirements

Specifications

Drawings

Schedules

Defects

Orders

EngineeringEngineering

MarketingMarketing

SuppliersSuppliers

CustomersCustomers

Internal

Internal

External

External

ProcurementProcurement

InventoryInventoryManagementManagement

ManufacturingManufacturing

Finance /Finance /CostingCosting

MarketingMarketing& Sales& Sales

ServiceService

Enterprise

Integration

Enterprise

Integration

RegistryRegistry

XMLXML

Product Info

Confirm Msgs

Project Management

Project Management

Advanced Collaboration Tools

Advanced Collaboration Tools

ServiceServiceDevelopDevelopDevelopDevelop

MarketMarket

SellSell

ProcureProcure

FulfillFulfillFulfillFulfillPlanPlan

ManufactureManufacture

Portfolio Management *Portfolio Management *

Product IntelligenceProduct Intelligence

Sourcing

ProductData HubProduct

Data Hub

Configuration

Configurator Driven Guided SellingConfigurator Driven Guided Selling Guide the Customer to the Best SolutionGuide the Customer to the Best Solution

Valid follow-on questions Valid follow-on questions and default selections and default selections from previous choicesfrom previous choices

Rules link Guided Rules link Guided Selling questions Selling questions

to product to product optionsoptions

Questions Questions and flow and flow

tailorable to tailorable to buying buying

audienceaudience

Intuitive UI hides Intuitive UI hides complexitycomplexity

BOM ModelBOM Model

Pre-Configured Pre-Configured New Item “A”New Item “A”

Available for OrderAvailable for Order

Pre-ConfiguredPre-Configured New Item “B”New Item “B”

Available for OrderAvailable for Order

Config “A”Config “A”Config “A”Config “A”

Config “B”Config “B”Config “B”Config “B”

CommonCommon

ConfigurationConfiguration

ModelModel

UpdatedUpdatedCatalogCatalog

• Derive New Product From Existing Designs

• Add Commonly Requested Configurations to Standard Catalog

• Forecast and Stock Common Configurations

• Enter Orders for stock configuration, or match based on models and options chosen

• Derive New Product From Existing Designs

• Add Commonly Requested Configurations to Standard Catalog

• Forecast and Stock Common Configurations

• Enter Orders for stock configuration, or match based on models and options chosen

Customer-Driven ItemsCustomer-Driven ItemsPre-Define Items for Frequently Used ConfigurationsPre-Define Items for Frequently Used Configurations

Global Order PromisingGlobal Order PromisingAccurately Promise Orders During Order CaptureAccurately Promise Orders During Order Capture

Promise Orders Based On:– Material availability

• Matched configuration, then model and option supply

– Manufacturing capacity– Supplier model capacity– Option Specific Sourcing Definition– Transportation capacity

SelectSelectMfg SourceMfg Source

In-House?In-House?Outsource?Outsource?Drop Ship?Drop Ship?

Auto CreateAuto Create Mfg. BOM & Mfg. BOM &

RoutingRouting

Plan & Plan & ScheduleSchedule

ProductionProduction& Assembly& Assembly

Integrate Configuration to Supply ChainIntegrate Configuration to Supply ChainDrive Toward Efficient Mass CustomizationDrive Toward Efficient Mass CustomizationIntegrate Configuration to Supply ChainIntegrate Configuration to Supply ChainDrive Toward Efficient Mass CustomizationDrive Toward Efficient Mass Customization

Quote, Capture & Validate Unique Configuration

Quote, Capture & Validate Unique Configuration

Global ATPGlobal ATP& Pricing& Pricing

Availability, Price

Order Status, Shipping Status

Invoice

ComponentInventory

• Validation of orders at point-of-sale• Order promising based on: material availability,

mfg / supplier / transportation capacity• Creation of orders and schedules

• Creation of BOMs and routings• Materials allocation• Creation of WIP jobs or flow schedules• Generation of POs and release mgmt

Automated

WebWebDirectDirect

RetailRetail& Dist& Dist

Production Plan

Provide Customer FeedbackProvide Customer FeedbackAccurate, Real Time Supply TrackingAccurate, Real Time Supply Tracking

See at a glance what type See at a glance what type of supply has been created of supply has been created

for all top level for all top level configurations or ATO configurations or ATO items on a sales orderitems on a sales order

Drill Down to see Drill Down to see supply status and supply status and

details…details…

IIncrease Plant Flexibility & Efficiencyncrease Plant Flexibility & Efficiency

Mixed Mode ManufacturingMixed Mode ManufacturingIIncrease Plant Flexibility & Efficiencyncrease Plant Flexibility & Efficiency

Mixed Mode ManufacturingMixed Mode Manufacturing

Discrete Discrete ManufacturingManufacturing

ModesModes

Make-to-StockMake-to-Stock

Engineer-to-OrderEngineer-to-Order

FlowFlowManufacturingManufacturing

- Repetitive MfgRepetitive Mfg

- Project MfgProject MfgConfigure-to-OrderConfigure-to-Order

Assemble-to-OrderAssemble-to-Order

Flow Manufacturing for ConfigurationsFlow Manufacturing for ConfigurationsOperational Efficiencies thru Lean ManufacturingOperational Efficiencies thru Lean Manufacturing

Sequenced Demand

Customers

Suppliers

Production Line

Sequenced POs

Inventory

Bin 1Bin 1 Bin 2Bin 2

Operation 10Operation 10

Feeder Plant Feeder Line

SynchronizedProduction







KanbanReplenishment

23

Purchasing of ConfigurationsPurchasing of ConfigurationsFocus on Competencies, Outsource the RestFocus on Competencies, Outsource the Rest

Suppliers have access to Suppliers have access to configuration details, configuration details,

component level component level attachments, and supplier attachments, and supplier

part numbers…part numbers…

Track ConfigurationsTrack Configurations Manage Complexity Through Entire Product LifecycleManage Complexity Through Entire Product LifecycleTrack ConfigurationsTrack Configurations Manage Complexity Through Entire Product LifecycleManage Complexity Through Entire Product Lifecycle

Convert configured product information as products evolve through lifecycle

– Create sales BOM from engr BOM and use for guided selling

via online Configurator– Associate installed base

failures with original product designs for root-cause analysis

– Track product designs through EOL

Manage complex, multi-dimensional data (item types, location, platform, etc.)

EngrEngrBOMBOM

SalesSalesBOMBOM

MfgMfgBOMBOM

ServiceServiceBOMBOM

Plan,Market,& Sell

Plan,Market,& Sell

ManufactureManufacture

Service &Maintain

Service &Maintain

Design &Develop

Design &Develop

“As Built”“As Built”

“As Designed”“As Designed”

“As Maintained”“As Maintained”

“As Sold”“As Sold”

Change and History TrackingChange and History TrackingUse Visibility to Improve ServiceUse Visibility to Improve ServiceChange and History TrackingChange and History TrackingUse Visibility to Improve ServiceUse Visibility to Improve Service

ModelModel

Option ClassOption Class Option ClassOption Class

Option1Option1 Option2Option2 Option3Option3 Option4Option4

• Allowable Assembly Template

• Manage Constraints and Rules

Master Configuration“Allowable Configuration”

Serial #Serial # Serial #Serial #

Config #Config #

Serial #Serial # Serial #Serial # Serial #Serial # Serial #Serial #

Unit Configuration“As-Installed” / “As-Maintained”

• Trace Installation / Removal History

• Track Unit Specific Information

• Update Applicable Configurations with Single Entry

ReferencesAllowable

Config.

Operational Efficiencies for ConfigurationsOperational Efficiencies for Configurations Plan/Design/Sell/Manufacture/ServicePlan/Design/Sell/Manufacture/Service

ConfigurationConfiguration(Product and Pricing)(Product and Pricing)

Opportunity DefinitionOpportunity Definition

Available to PromiseAvailable to Promise

Schematics and Schematics and Drawing GenerationDrawing Generation

Configured QuoteConfigured Quote

Automatic Order CreationAutomatic Order Creation

MatchMatch

Automatic Config Item,Automatic Config Item, Bill and Routing CreationBill and Routing Creation

Automatic Supply OrderAutomatic Supply OrderCreationCreation

FlowFlowScheduleSchedule

WorkWorkOrderOrder

ReserveReserve

Pick and ShipPick and Ship

Needs AssessmentNeeds Assessment

Populate Installed BasePopulate Installed Base

Update Sales and Update Sales and Service ContractsService Contracts

Customer Initiates Customer Initiates Service RequestService Request

AssignAssignField TechField Tech

InitiateInitiateRMARMA

Define Service Rqmt Define Service Rqmt And Dispatch WorkAnd Dispatch Work

Repair andRepair andDebriefDebrief

ReceiveReceiveAnd RepairAnd Repair

POPO

Forecast and PlanForecast and Plan

DDEESSIIGGNN

Configure to Order Back Office Configure to Order Back Office Support Allows Sellers to…Support Allows Sellers to…

Maintain product structure with single point of maintenance

Define option dependant routings

Define option dependant purchase prices

Pre-configure popular items for marketing campaigns or high volume business


Price to customers “On the Fly” based on Advanced Pricing

Add multiple instances of a sub-level ATO Model during the configuration session, with configuring each instance differently

Promise accurate delivery dates during the configuration session based on enterprise ATP & CTP engines


Create unique multi-level BOMs and Routings based on the customer order

Automatically create multiple levels of WIP jobs, Flow Schedules or POs directly from Sales Orders

Plan a complex supply chain using Two-Level Master Scheduling & Component Level Planning


Build multi-level configured assembly in multiple plants

Outsource some or all of the configuration, and communicate configuration details to their suppliers

Drop ship configurations

Track and maintain the configured items in the install base

CTO Market ProfileCTO Market ProfileCTO Market ProfileCTO Market Profile

Industry Focus–Automotive–High Technology

– Complex Equipment Companies

– Electronic Manufacturers

–Industrial Products–Building Supplies–Medical –Other

Office Solutions

CTO CustomersCTO Customers

Server Systems

Windows andDoors

High Tech/Complex Equipment

AC/DC Based Power

High Tech/Semi Conductor


Climate Control and Industrial SystemsEquipment Manufacturer

Test Equipment

Building Systems and Architectural Products


Furniture

Seatbelts

Building and Construction

Office Solutions

Enterprise Storage Solutions

Climate Control Solutions

Telecommunications

MachineryGaming Machines

Workspace and Storage Systems

Instrumentation Software

Varied Industries

Medical Devices, Motors

High Tech

http://www.diebold.com/default.htm

Competitive LandscapeCompetitive LandscapeCompetitive LandscapeCompetitive Landscape

CompetitionCompetition

Suite SAP

Best of Breed N/A (no CTO support)

The Configure-to-Order MarketplaceThe Configure-to-Order Marketplace

Advantage:Advantage:Complete CTO

Process Flow

Advantage:Advantage:Complete CTO

Process Flow

FORECAST & PLANFORECAST & PLAN

Oracle: Complete Configure to Order FlowOracle: Complete Configure to Order Flow Plan/Sell/Manufacture/ServicePlan/Sell/Manufacture/Service

Simple, Integrated CTO Solution Supports Basic Simple, Integrated CTO Solution Supports Basic to Complex Manufacturing Environmentsto Complex Manufacturing Environments






MatchMatch




WorkWorkOrderOrder

ReserveReserve











POPO

FORECAST & PLANFORECAST & PLAN

SAP: Incomplete CTO FlowsSAP: Incomplete CTO Flows

Limited, Fragmented CTO Solution Lacks FeaturesLimited, Fragmented CTO Solution Lacks Featuresto Support Today’s Complex Supply Chainsto Support Today’s Complex Supply Chains






MatchMatch




WorkWorkOrderOrder

ReserveReserve











POPO

Advantage:Advantage:Rich Functionality

Advantage:Advantage:Rich Functionality

Oracle: Advanced CTO ToolsOracle: Advanced CTO ToolsCreate More Fulfillment OptionsCreate More Fulfillment OptionsOracle: Advanced CTO ToolsOracle: Advanced CTO ToolsCreate More Fulfillment OptionsCreate More Fulfillment Options

Increase Responsiveness to Customers,Increase Responsiveness to Customers, Simplify Complex Business Processes Simplify Complex Business Processes

Option Specific SourcingOption Specific Sourcing

Configure-to-Order

Complete, Integrated Flow Complete, Integrated Flow Manufacturing SolutionManufacturing Solution

Auto-Creation of Supply for Sales Auto-Creation of Supply for Sales Orders Without Using PlanningOrders Without Using Planning

Multi-Level, Multi-Org Multi-Level, Multi-Org ConfigurationsConfigurations

Competitors: Limited CTO ToolsCompetitors: Limited CTO ToolsReduced Fulfillment OptionsReduced Fulfillment OptionsCompetitors: Limited CTO ToolsCompetitors: Limited CTO ToolsReduced Fulfillment OptionsReduced Fulfillment Options

Reduce Responsiveness to Customers, Reduce Responsiveness to Customers, Reduce Control Over Business ProcessesReduce Control Over Business Processes

Option Specific SourcingOption Specific Sourcing

Configure-to-Order

Complete, Integrated Flow Complete, Integrated Flow Manufacturing SolutionManufacturing Solution

Auto-Creation of Supply for Sales Auto-Creation of Supply for Sales Orders Without Using PlanningOrders Without Using Planning

Multi-Level, Multi-Org Multi-Level, Multi-Org ConfigurationsConfigurations

o+CostingCosting

SAPSAP

o

o

o

o

o

o

OracleOracleCapability

+Advanced PlanningAdvanced Planning

+Integrated ConfiguratorIntegrated Configurator

+Advanced Advanced PricingPricing

+ATP / CTP / CTDATP / CTP / CTD

+Multi-Org Multi-Org ConfigurationsConfigurations

+Multi-Level Multi-Level

ConfigurationsConfigurations

How CTO Solutions Stack Up…How CTO Solutions Stack Up…

Notes: + = Good, O = Neutral, - = Poor/NA, ? = Unknown

-+Option Specific SourcingOption Specific Sourcing

How CTO Solutions Stack Up…How CTO Solutions Stack Up…

+oPeg to Sales Order Peg to Sales Order SupplySupply

+oConfigured RoutingsConfigured Routings

SAPSAP

o

+

-

+

+

OracleOracleCapability

+Match and ReserveMatch and Reserve

+Configured BOMsConfigured BOMs

+Flow Manufacturing Flow Manufacturing IntegrationIntegration

oChange ManagementChange Management

oProcurement of Procurement of ConfigurationsConfigurations

Notes: + = Good, O = Neutral, - = Poor/NA, ? = Unknown

+oEngineered OptionsEngineered Options

+oConfiguration Configuration

SimulationSimulation

World leader in premium-quality windows & doors

Oracle’s e-Business suite customer Configuration problem:

– For any given window the customizable features of windows (dimensions, glass type, and colors) can result in literally trillions of possible permutations

CTO Features:

– Just in Time/Flow Manufacturing

“We looked at a variety of manufacturing and configuration solutions with the goals of simplifying our complex products, reducing our maintenance, and supporting a very lean environment. In the end, we determined that only Oracle 11i and Oracle Configurator could offer us a solution.” --Rick Hassman, CIO Pella Project Manager

Configuring premium-quality windows, storm doors Configuring premium-quality windows, storm doors

and entry systemsand entry systems

Live!Reference!

Leader in safety restraint systems

– Private company founded in 1961

– Manufacturing sites in the USA, UK and Mexico Phase 1: Live November 2003

– Configuration of school bus seat belts

– Used by sales engineers to capture seat manufacturers’ requirements and create new product BOM and routing

Phase 2: May 2004

– Configuration of child seat restraint systems

– Integrated with Unigraphics KnowledgeFusion to generate 3-D and 2-D drawings

Mission – Reduce the product time to market Oracle Footprint: Order Management, Manufacturing, Configurator

“With Oracle Configurator, we have reduced the customer order quotation With Oracle Configurator, we have reduced the customer order quotation process from 6-8 weeks to minutes by instantaneously building 3D models, process from 6-8 weeks to minutes by instantaneously building 3D models, creating prints, and delivering costing information."creating prints, and delivering costing information."

-- Tom Gaunt, Manager of Engineering Services, Tom Gaunt, Manager of Engineering Services, IMMIIMMI

“With Oracle Configurator, we have reduced the customer order quotation With Oracle Configurator, we have reduced the customer order quotation process from 6-8 weeks to minutes by instantaneously building 3D models, process from 6-8 weeks to minutes by instantaneously building 3D models, creating prints, and delivering costing information."creating prints, and delivering costing information."

-- Tom Gaunt, Manager of Engineering Services, Tom Gaunt, Manager of Engineering Services, IMMIIMMI

Midmark (FY2005 – Q1) Midmark is a manufacturer of

examination and procedure equipment for the medical and dental markets

Today, Midmark uses Configurator to configure dental operator head units adapted to each dentist’s requirements

In a second phase, Midmark will integrate Configurator with iStore

Key benefits of this solution include shorter employee training cycle and access to distributors and end-customers Live 11.5.9

www.midmark.com

RecentGo Live!

http://www.midmark.com/

$1 Billion manufacturer of sterilization equipment for the medical and pharmaceutical industries.

Oracle’s back office and Siebel front office customer.

May 2005, chose Oracle Configurator to replace Siebel.

Chose Oracle due to breadth and depth of CTO process.

Recent Win

SAP WeaknessesSAP Weaknesses

SAP Inferior Configurator Developer No Match and Reserve for prior Configurations Requires Multiple Configurators Limited Multi-Level Planning No Global ATP

Best of Breed No support of CTO process

Wrap UpWrap Up

Comprehensive Mass Customization Solution

Build or Procure To Demand

Focus on Core Competencies, Outsource the rest

Support for Complex Supply Chain

Multi-level, multi-org configurations

Track and Maintain Install Base

Oracle CTO and the E-Business SuiteOracle CTO and the E-Business Suite

Power of Oracle Power of Oracle Configurator and Configurator and the E-Business the E-Business

SuiteSuite

“In the end, we determined that only Oracle 11i and Oracle Configurator could offer us a solution.”

- Rick Hassman, CIO Pella Project Manager

CTO Home Page

– http://www-apps.us.oracle.com:1100/cto/

E-Business Suite Portal: the SCM Story

– http://apps.oraclecorp.com/products/fulfillment.html

Customer Profiles

– http://apps.oraclecorp.com/customers/index.html

Class on Configurator Model-Building & “How to Demo CTO” by the AGSS Tiger Team

Become a Member of the Global Exchange Community

– http://globalxchange.oraclecorp.com/portal/page?_pageid=1,2518747&_dad=gxchange&_schema=PHP

Supporting ResourcesSupporting Resources

http://www-apps.us.oracle.com:1100/cto/

http://apps.oraclecorp.com/products/fulfillment.html

http://apps.oraclecorp.com/customers/index.html

http://globalxchange.oraclecorp.com/portal/page?_pageid=1,2518747&_dad=gxchange&_schema=PHP

http://globalxchange.oraclecorp.com/portal/page?_pageid=1,2518747&_dad=gxchange&_schema=PHP

Thank YouThank You

oracle configure to order. define and position configure to order how oracle delivers competitive...

Documents

comprehensive supply

supply chainensure

planning engine

reliableholistic planning

setupmanufacturing planning

customer requirements

manufacturing planningsegment

manufacturing modes