- Twin Cities Manufacturing OAUGtcmoaug.communities.oaug.org/multisites/tcmoaug/media/Documents/...Single Repository for Mfg Operations Data ... Overall

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Oracle 12.1 New Products Sneak PeekPatrick ElizondoOracle Applications Sales Consultant

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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.

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12.1 FP *

IntegratedPlanningFunctions

Products

Platform

E1 EBS …Legacy

ERP* *

WFL Common planning data model

Connectors Embedded Analytics

Role-based Portals

Operational Excellence

Real-Time S&OP

Demand drivenadaptive planning

Multi-EnterpriseCollaboration

Trading Partners

Best in classBusinessProcesses

Supply ChainRisk Management

StrategicNetwork

OptimizationInventory

Optimization

Real-TimeSales &

OperationsPlanning

DemandManagement& AdvancedForecasting

PredictiveTrade

Planning &Optimization

SupplyPlanning

ProductionScheduling

OrderPromising

CollaborativePlanning

Execute to plan

NetworkDesign Demand Sensing

And Shaping PostponementOptimization Holistic

Supply Planning

Preconfigured Worksheets and

Workbenches

Oracle Advanced Planning SolutionComplete, best-in-class e-business planning process platform

Service Parts

Planning*

Service

Promise,Distribute, Replenish

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Oracle Advanced Planning Solution

BUSINESS PLANNING & PROCESS MGMT• Business planning scenario mgmt & automation• Business planning analysis dashboards

OPERATIONAL EXCELLENCE• Integrated supply chain execution• More accurately promise orders• Supplier collaboration and VMI• Integrated multi-method

manufacturing execution• Manage internal and external repair

orders, and new buy parts, and part redistribution

• Plant level detailed scheduling

DISTRIBUTION AND SUPPLY PLANNING• Rebalance inventory position at lowest cost• Multi-facility constrained replenishment planning• Distribution planning

AFTER MARKET SERVICE PLANNING• Multi-echelon service supply chain• Simultaneous forecasting, replenishment, distrib.

PROMOTION MANAGEMENT• Run most profitable promotions• Promotion lift analysis• Execute promotions via Siebel(1)SENSE AND SHAPE DEMAND

• Improve forecast accuracy thru better statistics• Continuous consensus planning process• New product introductions

DEMAND SIGNAL MGMT• Enables Retailer and Mfg-er collab.• Demand and market intelligence

SALES AND OPERATIONS PLANNING• Balance demand, supply, budgets• Evaluate both strategic and tactical decisions

RISK MANAGEMENT• Design profitable supply chain• Mitigate risk for (un)planned events

ADVANCED PLANNING

(1) Integration coming in May08 with Demantra 7.2.1

Enables best-in-class processes that addresses key planning problems

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Oracle Advanced Planning Solution

BUSINESS and PROCESS MANAGEMENT• Business planning scenario mgmt & automation• Business planning analysis dashboards

OPERATIONAL EXCELLENCE• Integrated supply chain execution• More accurately promise orders• Supplier collaboration and VMI• Integrated multi-method

manufacturing execution• Manage internal and external repair

orders, and new buy parts, and part redistribution

• Compare plan to actual performance

DISTRIBUTION AND SUPPLY PLANNING• Rebalance inventory position at lowest cost• Multi-facility constrained replenishment planning• Plant level detailed scheduling

AFTER MARKET SERVICE• Multi-echelon service supply chain• Simultaneous forecasting, replenishment, distrib.

PROMOTION MANAGEMENT• Run most profitable promotions• Promotion lift analysis• Siebel integration (May08)SENSE AND SHAPE DEMAND

• Improve forecast accuracy thru better statistics• Continuous consensus planning process• New product introductions

DEMAND SIGNAL MGMT• Enables Retailer and Mfg-er collab.• Demand and market intelligence

SALES AND OPERATIONS PLANNING• Balance demand, supply, budgets• Evaluate both strategic and tactical decisions

RISK MANAGEMENT• Design profitable supply chain• Mitigate risk for (un)planned events

ADVANCED PLANNING

ADVANCED PLANNINGCOMMAND CENTER

DEMANTRA SALES AND OPERATIONSPLANNING and SNO

SERVICE PARTS PLANNING

ADVANCED SUPPLY CHAIN PLANNING

DEMANTRA DEMAND MANAGEMENT and

ADVANCED FORECASTING

DEMANTRA PREDICTIVETRADE PLANNING and

OPTIMIZATION

MANUFACTURING OPERATIONS CENTER

COLLABORATIVEPLANNING,

GLOBAL ORDERPROMISING andPRODUCTIONSCHEDULING

DEMAND SIGNALREPOSITORY

STRATEGIC NETWORKand INVENTORY OPT.


Oracle Manufacturing Operations Center

Amit K. SinghProduct Strategy DirectorOracle Corp.

Foundation for Continuous Improvement in Manufacturing Operations

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Agenda• Background• Manufacturing Operations Center Overview• Strategic Implementation Program

• Software Demo

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Shop Floor to Top Floor Bridging The Great DivideIn

side

A P

lant

ERP and Back Office Applications

Cor

pora

te

Manufacturing Operations Center

Distributed Plant Systems, Automation & Control

Real-time, Exception Prone WorldDominated by Older Generation Legacy Systems

Relatively Stable world, Standard SystemsDriven by Plans and Schedules

Mfg OperationsWhite Space

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The Foundation for Continuous Improvement in Manufacturing

Operations

Automation& Process

ControlSystems

ERPSystems

Users

PLC CNCMachines

DCS SCADASystems

AdvancedProcessControl

HumanMachineInterface

- MES- Quality- Cost Mgmt…

ManufacturingOperationsData Model

(ISA-95) Role-BasedDashboards

Contextual-izationEngine

Corporate BI

Cross-PlantKPIs

HistoricalTrends

Plant-SpecificKPIs

Real-TimeUpdates

Device-Generated Data

Production ActualsSchedules

Item Master Data

ProductionManager

Plant Mgr /VP of Mfg

Distributed Plant Systems Shop Floor Communication Drivers

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Single Repository for Mfg Operations DataProvide Consistent Information for All Manufacturing Users

• Generic data model supports hierarchical structure for reporting or building KPIs and metrics

- Leverages ISA-95 standard reference model

- Out-of-the-box hierarchical dimensions: time, product, and equipment

- Flexible and configurable

• Open and extensible to meet the requirements of different industries

- Capture process variables

- Capture additional parameters for Item, Equipment, and Work Orders

ManufacturingOperationsData ModelGra

nula

rity

Enterprise Level-Products-Orders-Plans / SchedulesPlant Level-Work Orders-Batches-Mfg RoutingEquipment Level-Availability-Status-Output-Quality-ParametersDevice Level-I/O Tags-Sensor ID

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OEE is Low for the Plant

Equipment with Excessive Downtime

Identify rootcause

Real-time Performance Monitoring from Shop Floor to Enterprise

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Mfg Integration & Intelligence Opportunity

Source: AMR Research, 2003

Production efficiency improvement -- 25%

Cycle time improvement -- 13 to 20%

Increase in asset utilization -- 10%

Annual payback potential -- 10x

Plus…• Eliminate discrepancy between manual data and machine data

• Perform preventive maintenance based on machine “actuals” vs. “best guess”

• Achieve visibility for lean and six-sigma programs

• Progressively eliminate on-hold and other production issues

• Gain competitive edge by sharing quality information with customers

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Implement Based on Business PrioritiesGenerate Value Regardless of Implementation Scope

Tactical OEEfor Line or Cell

Manage Plant-Wide Performance

Manage Network of Plantsor Fleet of Assets

ScopeLocal Global

Valu

e

Identify opportunities for streamlining operationsFocus on line and machine performance

Provide decision support for executives and supervisorsMove emphasis to service levels and on-time delivery

Build common manufacturing operations architectureMove from emphasis on local execution to global coordination

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The Foundation for Continuous Improvement in Manufacturing Operations

Contextualize Plant Floor Data and

Synchronize with ERP

Provide Real-Time Intelligence for

Plant Operations

Leverage Next Generation Manufacturing

Operations Architecture

• Consistent mfg information for all users• Convert equipment data into useful business info• Ensure rapid response to manufacturing issues

• Leverage existing plant IT infrastructure• Enable gradual upgrade of plant systems• Simplify IT support for your core mfg strategy

• Deliver performance metrics & trends by role• Easily build dashboards to your unique needs• Identify performance improvement opportunities

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MOC Demo: Overall Equipment Effectiveness

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Calendar Time

Planned Available Time

Actual Available Time

Expected Run TimeActual Run Time

Effective Run Time

OEE Time

Preventive Maintenance

Unplanned Downtime

Breaks, etc.

Unscheduled breaks, wait time

Efficiency Loss

Quality Loss

Quality LossesSpeed Losses

Downtime Losses

OEE and Production

Loss Analysis

OEE = Availability Ratio X Efficiency Ratio * First Pass Yield


Oracle Advanced Planning Command Center 12.1Enabling business scenario planning and process management Scott MalcolmDirector

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The Great Information Divide Still Exists

• Typically, they don’t have access to correlated and aggregate planning data unless it is presented in a comprehensive spreadsheet or on paper

• Often, the decision is made to design and build a custom data warehouse that has no integration to the source of the data and that is a limited representation of the data

• Supply chain executives have no time to learn power user interfaces that we developed for purposed planning applications

How do the supply chain executives get access to actionable information?

Manual Co-ordination Across Functional Groups

UncertaintyVirtualizationChaos

Globalization

Volatility

ConsolidationRisk

Compliance

Continuous Innovation

Operational EfficiencyRisk management and Compliance

Emails, Phone calls Spreadsheets, Reports

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Oracle Advanced Planning Command Center

• Provides integrated analytics combined with process and activity management enable a more structured approach to analysis and decision making for processes that span planning disciplines – Everyone looks at the same picture

• Enables informed decision making through the ability to correlate data quickly and the provided drill downs to the lowest level of detail

• Pre-built and fully integrated – Get started quickly for quick ROI

Enables cross-discipline planning and process management

UncertaintyVirtualizationChaos

Globalization

Volatility

ConsolidationRisk

Compliance

Continuous Innovation

Operational EfficiencyRisk Management and Compliance

Preconfigured Analytics Model

Scenario, Activity and Process ManagementPre-built, configurable Dashboards and Reports

PlanningWorkbenches

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Oracle Advanced Planning Command CenterKey components

Pre-Built Dashboardsand Reports

Scenario andActivityManagement

Plans and Archived Plans

Ana

lyze

Plan

Orc

hest

rate

Preconfigured Planning Processes

Analyze and compare scenarios Analyze and compare plans

Execute and assign plans to scenarios

Assign and monitoractivities

Execute automated processes

Archive plans

Web Service enabled Planning Processes

Analytical Data

Demand Inventory Supply

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• Provide planning analytics to supply chain decision makers

– Executive level self-service pre-built dashboards ▪ Easily tailor to company specific roles

– Drill across all relevant business dimensions (business unit, plant, product category, customer, supplier, sales channel)

• Get the right answers by combining data from your Oracle Advanced Planning applications

– How is my operational plan health? – Track changing key metrics trended across multiple versions of a plan

– What is the most cost effective way to address an imbalance between supply and demand? – Evaluate shaping demand or considering alternative ways to resolve supply constraints

– Am I on track with my sales and operations base line plan for this month and do we need a mid-period correction? – Monitor key changes in supply and demand metrics

– Where is the risk in my supply chain and what are my alternatives for dealing with those? – Compare multiple contingency plans

• Planning scenario management and automation– Create scenarios that span multiple planning processes– Monitor scenario activities assigned to planners and analysts– Link multiple planning processes together for automated (BPEL) or

manual execution(1)

Key capabilities

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Provide planning analytics to supply chain decision makers

Suddendemand spike

Resourceoverloaded

Increase inlate shipments

Supply shortage


Oracle Service Parts Planning 12.1Enabling profitable reverse logistics at higher service levels

Scott MalcolmDirector, Advanced Planning Product Management

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• Service is becoming a main profit driver even in manufacturing companies– Desire to move from cost center to profit center

• Service is a competitive differentiator - Better customer retention– While many finished goods have been commoditized– Increased flexibility in service level agreements

• Interplay between parts planning and execution increasingly becoming important– Global service supply chain visibility and supplier collaboration

• Significant amounts of money tied up in spares inventories– Initiatives to reduce inventories while simultaneously improving service responsiveness

Service IndustryKey trends

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Service Supply Chain

Regional DCsServicetechnicians

Central DC

Repair depot

Customers

Supplier (Repair)

Supplier (New Buy)

On-hand Consigned

Repaired In repair

Material flow of good sparesMaterial flow of defective spares

Must manage both forward and reverse material flows

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Oracle’s Service Management Solution

Customers Service Providersand Suppliers

Service Execution

Service Parts Planning Solution

External

In-house

Self-Service

Email

Phone

Messaging(XML/EDI)

Contracts Install base& Engineering

Spares Mgt Field scheduling

Call center CMRO &Depot repair

Spare parts and returns

forecast

Inventorypostponement

plan

Spare parts replenishment

plan

Deployment plan

Workflow based exceptions

Parts usage

Repair orders

Contracts & renewals

Parts life cycle &

failure ratesSelf-Service

Self-Service

Poweruser

Replenishmentorders

Spare parts order promising

Service supply chain

design

Complete and integration solution

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Oracle Service Parts Planning

• Simultaneously forecast, replenish and redistribute your service parts across your service supply chain

• More accurately forecast your service parts– Demantra statistical forecasting engine inside for highest

accuracy– Account for intermittent, seasonal, and fast moving demand

patterns– Leverage composite forecasting (shipments, usages, returns)– Use service failure rates

• Optimize the replenishment and redistribution of parts across the extended service network, integrated with Service Execution

• Integrate with other Advanced Planning products for additional business processes

– Manage spare parts at customer locations (via CP)– Manage service contract demand (via Demantra DM)– Manage targeted service levels and budgets (via IO)

Key capabilities

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Simultaneously Forecast, Replenish and DistributeSingle planning process and UI for highest productivity and fastest analysis

Service Parts Planning

SPARE PARTS REPLENISHMENT PLANNINGSPARE PARTS FORECASTING• Support intermittent demand patterns• Leverage highly accurate Bayesian engine• Population and failure rate based

forecasting• Composite forecasting• Forecasting based on supersession

• Plan internal and external repair• Plan reallocation and transfer of parts• Plan new buy orders• Analyze and fix exceptions• Release planning recommendations to Execution

SERVICE PLANNER WORKBENCH• Single UI for forecasting and replenishment• Part and supersession chain centric

analysis• Planner work lists• Personal and public queries• Comments• Auto-release rules

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Simultaneously Forecast, Replenish and Distribute

Comments Exceptions

Supply-DemandForecast

WorksheetPreferences

Graphs

Items, Failure Rates, Supersession Chain

Single planning process and UI for highest productivity and fastest analysis

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Improve Planner ProductivityWork list and personal queries

• Planners have complete control over their analysis workflow

– Define one or more work lists with prioritization

– Define unlimited item, supply-demand, exception, and supplier queries

– Quickly drill down from work list or query to summary, to detailed level

• Planners can automatically execute their preferred query upon starting their work

• Query results are retained between analysis sessions (refreshed when plans are rerun)

• Collaborate between planners– Share work lists and queries for public use

• Mass Maintenance of Item Attributes

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More Accurately Forecast Service Parts

• Accurately statistically forecast the complex demand patterns found in service parts– Key forecast methods specific to service part demand patterns– Data transformations for intermittent or sporadic patterns– Expert mode: automatically select best blended statistical method for every service part

• Forecast for service parts without adequate shipment history– Forecast based on composite of shipments, usages, returns, failure rates, and

product population

• Forecast for changing replacement parts and revisions– Forecast entire supersession chain and chain history of multiple revisions

• Scale to handle large volumes of parts– Selectively re-forecast: use specific forecast methods, parameters, and forecasting

frequency as needed based on criticality

Demantra statistical forecasting engine “inside” for highest forecast accuracy

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Optimize Replenishment and Redistribution

• Consider key service planning constraints – Part supersession, condition, and criticality– Sourcing of repair-at and buy-from– Repair resources (internal)– Purchasing, repair, transportation lead times– Supplier capacity (for new buy)

• Minimize inventory and purchasing cost, and out-of-stock impacts– Dynamically reallocate and reposition parts – Replenish to optimized safety stock levels– Use up superseded parts; repair before new buy

• Out-of-the-box integration with Execution– Release recommendations for new buy, repair, and

transfers

Operate more profitable Service chain by saving inventory and purchasing costs

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Out-of-the-box Integration with Execution

• Global parts inventory visibility across all service organizations

• Out-of-the-box integration with Oracle Spares Management and Oracle Depot Repair– Release depot repair orders, reschedules, and

transfers– Release spares management new buy purchase

orders, repair orders, and transfers

• Improve planner productivity through automation of release – Create auto-release rules and attach to plans

Eliminate cost of integration and improve planner productivity via automation


Oracle Demand Signal Repository

Scott MalcolmDirector, Advanced Planning Product Management

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Consumer

GoodsMfg.

Retailer

Traditional View of Relationship

Aligned Priorities• Jointly managed store/SKU-level

merchandise plans• Optimized promotion & merchandising

decisions• Total supply chain logistics & transportation

cost reduction• Item and price data synchronized to reduce

deductions

CG Mfg

Retailer

Shar

ed

Emerging Relationship

Convergence of Retail and Consumer Goods

• Category & Space Planning• Demand Management• Trade Promotion Mgt

• Transportation & Logistics • Retail Execution• Vendor Managed Inventory

Retailer Facing Applications

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The Current Situation

Lost sales due to out of stocks remains a key issue

• Average OOS rate = ~8% (promotions and NPI = ~2x average)

• ~72% of OOS are caused by store-related issues

• Average CPG company lost sales due to out of stocks = 2.5%

Competitive pressure to provide differentiated services to key retailers is intensifying

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2

• A recent survey of 109 global retailers indicates that suppliers are performing “less than adequately” in key areas:

– Merchandising & category management– Promotional design & execution– Customer insight development

Source: Retail Out-of-Stocks: A Worldwide Examination of Extent, Causes and Consumer Responses (2002); IBM Retail Merchandising and Supplier Management Survey (2004)

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What Is The Challenge?Availability of Data Is No Longer The Issue

Data Sources/Types

Data Frequency

Data Granularity

Application Availability

Internal Data

Direct From Retailers

Syndicated Data

Ad Hoc Weekly

Market/ Category Level

Daily/SKU Level

Weekly/ RDC Level

MS Office, Custom

Enterprise AppsNiche

Daily

Yesterday Today

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Oracle DSR Solution Concept

• Pre-built integration of aggregated demand signals to Demantra

• Standards-based integration for other applications

DEMAND SIGNAL REPOSITORY

• Data sources centrally cleansed, harmonized and aggregated

• Pre-built dashboards and reports• Powerful BI capabilities • “Sense & Respond” event

management

CA

PTU

RE

MA

NA

GE

AN

ALY

ZE

RES

PON

DIN

TEG

RA

TE

DEMANTRA DEMAND MANAGEMENTDEMANTRA SALES & OPERATIONS PLN

ORACLE SUPPLY & DISTRIBUTION PLN

ORACLE PRODUCT LIFECYCLE MGT

Pre-Built Integration

DEMANTRA PTP & TPO

SALES & OPERATIONS PLANNING

SUPPLY & DISTRIBUTION PLANNING

PRODUCT LIFECYCLE MANAGEMENT

TRADE PROMOTION PLANNING & OPT

SOA

-Bas

ed In

tegr

atio

n

Non-Oracle Applications• POS sales• Price• Store inventory• Promotional plans• Store replen. rules• Store forecasts

Retail Store Data

Retail DC/ Distributor Data

• DC shipments• DC inventory• DC replen. rules

OtherExternal Data

• Retail loyalty• IRI/AC Nielsen• 3rd party demographic• Causal (weather,etc.)• RFID/EPC• IMS, NDC, EDI (867,

852), Scripts, Pedigree• Unstructured text

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Oracle Demand Signal RepositoryThe first DSR from a major software vendor

1. Enterprise strength – open, flexible and extensible based a proven retail data model

2. Best-in-class analytics and BI3. Integration to key Oracle and non-Oracle applications to

enable demand-driven operations

“Oracle is showing thought leadership…[all CG manufacturers] should consider Oracle DSR… whether they are existing Oracle database and application users or not”

Oracle’s Demand Data Breakthrough (March 17 2008)

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Key DSR Capabilities C

aptu

reM

anag

eA

naly

zeR

espo

nd


Inte

grat

e

Systematically capture, manage and prepare/store large volumes of disparate external data

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Flexible BI capabilities to analyze and report on data at the lowest level of detail

2

Expose clean, harmonized, aggregated demand data to external applications

3

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• Capture daily store-level sales, inventory and other data directly from customers.

• Analyze category, brand and customer performance at any level of detail.

• Integrate retail demand signals into enterprise applications.

Key capabilities

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Respond to daily demand signals collected directly from customers.

Promotion tactic change

neededStore item mix is out of balance

Margin is below target

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AQ&Q U E S T I O N S

A N S W E R S

Q&A

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