Production Scheduling (PS) Overview June 20, 2005

Production Scheduling (PS)

Overview

June 20, 2005

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Agenda

Planning Overview and Value Impact

Oracle Advanced Planning Solution: Role of PS

Production Scheduling: Process Flow

Production Scheduling 8.11: Product Features

Production Scheduling Customer Case Studies

Functional Overview: Screen Shots

Q&A

Planning Overview



Planning Processes

S&OP

DP Supply planning

Order Promising



Supply Planning Overview

1-2 years

1-12 months

1-12 weeks

Daily

Source Make Deliver Return

Strategic Planning

Tactical Planning

Operational Planning

Plan Execution

What?

Establish Objectives, Policies and Operations Footprints

How Much??

Deploy Resources to Match Supply to Demand

When? Where?

Schedule, Monitor, Control and Adjust Production

Do

Buy, Build, Store and Transport



Wall Street & Supply Chain Management



How SCM Effect Valuations

Cost

Working Capital

Utilization

Fixed Asset Utilization

Revenue



Sampling of Customer Benefits

Bass Brewers

75% inventory reduction

5% capacity improvement

Kraft Jacob Suchard 50% inventory reduction

Planning cycle 2weeks to 2 days

Kraft Foods – Europe


Planning cycle reduced 86%

Planters 70% inventory reduction

capacity utilization up 20%

Nabisco Foods


Capacity utilization up 20%

Owens Illinois 20% inventory reduction

Owens Illinois

20% inventory reductionDow Chemical

Planning cycle 5 days to 1 day

Dow Chemical

$ 350M inventory reduction

James River 15% inventory reduction

Fort James




Kimberly-Clark





Coca-Cola FEMSA


Stock-outs reduced 25%




Average Results

Inventory reduced 50%

Production utilization increased 12%




Agenda

Planning Overview and Value Impact

Oracle Advanced Planning Solution: Role of PS

Production Scheduling: Process Flow

Production Scheduling 8.11: Product Features

Production Scheduling Customer Case Studies

Functional Overview: Screen Shots

Q&A



Oracle Advanced Planning Solution

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Production Scheduling*

Transportation Planning

Collaborative Planning

SCI

DP

IO

PS

TP

CP

ASCP

Sales and Operations Planning

SC Exception Management CP

From Short-term to Long-term

* Stand-alone available today; integrated with other 2H05

Network Design* SNO

Global Order Promising GOP



Value Proposition:

Quicker Return on Investment

Improve Decision Support

Reduce Cost Of Goods Sold (COGS)

Improve Fixed Asset Utilization

Increase Productivity

Strengths/Differentiators:

Self-configuring solver reduces implementation time and expense

Native Interface to Microsoft® Excel

Advanced Schedule Analysis Views

Adaptable to Future Business Changes

Business Problems: Creating detailed, constraint-based factory production schedules.

Product Description: Oracle Production Scheduling provides cost optimized, constraint-based production schedules.

Role of PS within the Oracle Footprint (Think Manufacturing Scheduling)

Process Flow

Production Scheduling



Typical Scheduling Questions

How do you sequence orders to make the best use of your production resources?

When should you offload production to alternative resources?

How do you minimize the effect of unplanned production and mfg. down time?

What is the impact of a supply shortage on customer fill rates?

How do you schedule resources to support revenue growth using exiting assets?



Multi-Stage Production Synchronization Sequence Dependant Setups

Time Cost

Temporal Relationships between Operations Customer Priority Levels, Cancellations, and

Modifications Batch Sizing Operation Yields Outsourced Operations Schedule Analysis – Cycle Time, Fill Rate, Inventory

Turns

Scheduling Challenges



Production Scheduling Business Process

Create Work Order

Schedule Production

MR

PS

ched

ulin

gE

ffec

tC

ust

om

er

Val

ue

Infeasible Dates, Orders Cancelled or

Rescheduled

• Missed Orders

• Excess Inventory

• Increased Cycle Time

• Use of Premium Materials

• Increased Overtime

• Outsourced Production

High Mfg. Costs

Low Revenues.

Profit Margin

OT, OS , WIP, Exp Cost

Customer Satisfaction

Poor Asset Utilization




Create Work Order

Schedule Production

MR

PS

ched

ulin

g

Did the shift go as planned?

Eff

ect

Cu

sto

mer

V

alu

e

Reschedule Production

YesImport WO +

Capacity Data

Infeasible Dates, Orders Cancelled or

Rescheduled

High Mfg. Costs

Low Revenues.

Profit Margin




• Missed Orders

• Excess Inventory

• Increased Cycle Time

• Use of Premium Materials

• Increased Overtime

• Outsourced Production




Create Work Order

Schedule Production

MR

PS

ched

ulin

g


Eff

ect

Cu

sto

mer

V

alu

e

Supplier Shortage

Machine Down

Low Production

No Reschedule Production

YesImport WO +

Capacity Data

High Mfg. Costs

Low Revenues.

Profit Margin

• Overtime

• Outsourcing

• Expediting

• Stock-outs

• Backorders

• Excess WIP

• Premium Materials

• Missed Orders







Create Work Order

Schedule Production

MR

PS

ched

ulin

g


Eff

ect

Cu

sto

mer

V

alu

e

Supplier Shortage

Machine Down

Low Production

No Reschedule Production

YesImport WO +

Capacity Data

High Mfg. Costs

Low Revenues.

Profit Margin

• Overtime

• Outsourcing

• Expediting

• Stock-outs

• Backorders

• Excess WIP



Incomplete Shop Floor & Cost Representation

Production Scheduling 8.11

Product Features








Maximize Production Throughput Optimize your shop floor; detect floating

bottlenecks

Reduce WIP inventory by rapidly synchronizing multi-stage production schedules

Account for complex setup and change-over scenarios, machine breakdown, supply and resource shortages , co- and by-products, alternate resources, routings, and operations

Extremely Fast Solver Performance

Infeasible Dates, Orders Cancelled or Rescheduled

Low Production, Machine\Labor Down

Time, Supplier Shortage, etc…




A Complete Shop Floor Model:Work centers, resources and resource groups, shift capacity, operating costs

Lead times: setup, change-over, and run

Sequence dependent setups, contiguous operations, production campaigns, batching

Incomplete Shop Floor and Cost Representation



Production Scheduling Functionality

Generative & Repair Based Solutions

Scenario KPI Analysis Dynamic Capacity Modeling Floating Bottleneck

Detection Alternate Resources,

Operations, and Routings

Detailed Demand Pegging Dynamic Safety Stock Co-products and By-

products Intelligent Alert System Advanced Analytical Views Repetitive Manufacturing Batch Sizing and

Changeovers Web Based Dispatch List



Strengths and Differentiators

Adaptive solver reduces implementation effort and ongoing maintenance

Ability to handle floating bottlenecks Sequence Dependant Setups Event level scheduling Unlimited “what if” capabilities Capability to compare scenarios using KPIs Native interface to Microsoft Excel Event Management Constraint based automated scheduling Cost optimization Capability of the Engine to handle

Discrete/Repetitive/Process



Summary of Operational Benefits

Planning Cycle Time Reduced and Schedule Quality Improved:

Increased Customer Service Better Resource Utilization and Throughput Reduced WIP Inventory Accurate Decision Support Greater Flexibility and Faster Response Time Improved ability to deliver on promises in the face

of execution problems

Supply Chain Management

Customer Case Studies




PS Customers include



Toyota Racing Division

Designs and builds racing engines in addition to aftermarket parts for many Toyota vehicles.

The Project: Reduce schedule creation time Support re-planning to accommodate

frequent design changes during production

The Solution: Production Scheduling

Reduced schedule creation from 3 weeks to < 2 hours

Leveraging PS repair based technology Respect for crew specializations Optimized use of un-manned operations

during downtime



Nampak

Global manufacturer of paper, plastic, metal and glass packaging products

The Project:

Reduce time lost in sequence dependent press setups for container styles and sizes

The Solution:

Production Scheduling PSP*

*Being phased out with PS

Live in 3 Divisions with approximately 20 PS models and 3 PSP models



General Electric Energy

Improved schedule accuracy & confidence by reflecting real constraints

Finite machine, crew and tool resource constraints

Floating resource bottlenecks due to demand mix variability

Operation sequence dependent setup times

Operation buffering to avoid intermittent glue gun usage

Alternate resources with preferences

Simulations of hot order impact on existing schedule

Usage of complex demand priorities

Manufacturing replacement parts for industrial air pollution control equipment.

The Project:

Improve schedule accuracy & confidence

Ad-hoc Order Promising simulations

The Solution:


Functional Overview

Screen Shots




Web Based Dispatch List

Resources are Grouped by Type in

the Dispatch List



Dispatch List Details

Operation Details are Visible for Selected

Resources



Supplier Representation

• Like any Resource they can be organized into logical folders

• Suppliers are a new Resource type

• In the GUI they are created in the ‘All Resources’ Folder



Supplier Representation cont.

• Suppliers are associated with Items on the ‘Attributes’ Tab of an Items property page

• Receiving Calendars can be used to control the receivable time window (Receiving dept. availability)

• Multiple Suppliers can be associated with an Item

• Each Supplier has a unique : Preference, Lead Time, Order Multiple and Unit Cost - specific to that item.



Purchase Recommendations

Purchase Recommendations are shown as arrows. The length of the arrow represents the lead time of the chosen Supplier-Item combination.

•Arrows will be Green (not critical) or Red (critical: if they are causing lateness).

•Hovering the mouse over the PR will show the specific detail of the PR



Changeovers and Calendars

Unlimited Calendars can be Created and Applied to

Shop Floor Resources

Changeover Times and Costs can be Defined

between Operations for a given Resource



Analyzing Scenarios: Key Performance Indicators

Key Performance Indicators are Automatically Provided

for All Schedules

Schedule Comparisons are Easily Analyzed for ‘What-If’

Scenarios



Analyzing Supply and Demand: Key Performance Indicators

Supply and Demand Key Performance Indicators are

Automatically Provided

Documents

Production Scheduling (PS) Overview June 20, 2005