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Oracle Industry Solutions Complex Equipment Manufacturing Information Age Applications.

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Presentation on theme: "Oracle Industry Solutions Complex Equipment Manufacturing Information Age Applications."— Presentation transcript:

1 Oracle Industry Solutions Complex Equipment Manufacturing Information Age Applications

2 High Technology Segments High Technology Products – Processors, DRAM, embedded controllers, etc. High cost of fabs pushing industry towards fabless model Products sold on volume contract Products – Processors, DRAM, embedded controllers, etc. High cost of fabs pushing industry towards fabless model Products sold on volume contractSemiconductor Contract Manufacturing Services – Outsourced design, test, manufacturing/assembly & logistics B2B supply chain collaboration and event synchronization Products shipped to OEM partners or drop-shipped to end customer Services – Outsourced design, test, manufacturing/assembly & logistics B2B supply chain collaboration and event synchronization Products shipped to OEM partners or drop-shipped to end customer Complex Equipment Products – Semicon fab equipment, servers, test & measurement, etc. Forecast-driven suppliers feed in- house/EMS CTO final build & assy Products sold direct to businesses Products – Semicon fab equipment, servers, test & measurement, etc. Forecast-driven suppliers feed in- house/EMS CTO final build & assy Products sold direct to businesses Products – PCs, cell phones, PDAs, stereo equipment, etc. Multi-channel demand feeds dominant outsourced mfg model Products sold via retailers & online Products – PCs, cell phones, PDAs, stereo equipment, etc. Multi-channel demand feeds dominant outsourced mfg model Products sold via retailers & online Consumer Electronics

3 The Complex Equipment Value Chain

4 Complex Equipment Industry Drivers Design Complexity How can I reduce design cycle time, and development of customer-specific products? How can existing designs be leveraged to reduce design complexity? Design Complexity How can I reduce design cycle time, and development of customer-specific products? How can existing designs be leveraged to reduce design complexity? Supply Variability What can be done when component lead times exceed finished product lead times? How can I fully leverage a global manufacturing and supply base? Supply Variability What can be done when component lead times exceed finished product lead times? How can I fully leverage a global manufacturing and supply base? Configuration Management How can I better manage configuration changes that occur once manufacturing has begun? Is there a better way to increase the accuracy of configured orders? Configuration Management How can I better manage configuration changes that occur once manufacturing has begun? Is there a better way to increase the accuracy of configured orders? Service Delivery How can I transform my service operations to a profitable business? How can I ensure high quality services performed by 3 rd parties? Service Delivery How can I transform my service operations to a profitable business? How can I ensure high quality services performed by 3 rd parties? Tiered Supply Base OEMs, Sales & Distribution

5 Simultaneous optimization of supply & build strategies Outsourcing with complete visibility across multiple tiers Integration of configure-to-order processes and service Emergence of customer service as a strategic differentiator Lean initiatives to reduce cycle time and waste Simultaneous optimization of supply & build strategies Outsourcing with complete visibility across multiple tiers Integration of configure-to-order processes and service Emergence of customer service as a strategic differentiator Lean initiatives to reduce cycle time and waste A Need for Change Leading Business Trends

6 A Need for Change Extend Lean Initiatives Across the Enterprise Sales & Mktg Information Technology EngineeringEngineering Supply Management ServiceService FinanceFinance Sales & Operational Planning ProductionProduction Continually Improve Quality, Cost and Cycle Time Poor Quality & Excess WIP High Material & Supply Costs Lengthy ECO Approval Process Error Prone Order Processing Poor Quality & Excess WIP High Material & Supply Costs Lengthy ECO Approval Process Error Prone Order Processing Incorrect Resource Dispatching Conflicting Demand Signals Duplicate & Erroneous Data Isolated Departmental Systems Incorrect Resource Dispatching Conflicting Demand Signals Duplicate & Erroneous Data Isolated Departmental Systems Common Areas of Waste

7 All of the top 25 Electronic OEMs run Oracle applications 47 of the top 50 Electronic OEMs run Oracle applications 7 of the top 10 Semiconductor companies run Oracle apps 5 of the top 10 Fabless Semiconductor companies run Oracle applications Oracle in High Technology Did You Know?

8 What Analysts are Saying… Firms in high tech manufacturing, where customer service spans both front- and back-office processes, should consider Oracle, especially if they have already made investments in other Oracle modules, like financials. Oracle applications are also a good fit for midsized companies looking to implement a single vendor apps suite and for firms thinking about outsourcing. -- Eric Schmitt, Senior Analyst Oracle is well positioned to drive innovation to the high tech industry. The companys belief that it needs to maintain leadership across the high tech sector in order to stay in touch with innovative manufacturing developments for the rest of its business helps ensure Oracles commitment to this industry. -- Meredith Whalen, Vice President, US Vertical Industry Research

9 What Customers are Saying… We selected Oracle for three reasons. First, we knew we wanted an integrated solution. Second, we wanted software that did not require any customization. Oracle excelled over its competitors on both of these counts. The final reason we chose Oracle was its proven success as a solution provider. --Tami Brown, Purchasing Manager McDATA's challenge of growing international business operations can only be met with a flexible open system like Oracle E-Business Suite. Buying disparate "best-of-breed" applications requires costly and time-consuming integration services. Oracle offers a seamless, fully integrated, modular business solution. -- Don Wenninger, CIO We now have electronic communication and commerce with both outsourced manufacturers and 3PL providers. We have all of our core back office activities directly linked to the front-end systems that support our new direct order fulfillment model. -- Saeed Hosseiniyar, VP of IT

10 What Customers are Achieving… decreased planning cycle time by 75% reduced engineering change order process time by 85% reduced engineering change order cycle to under two days reduced procurement cycle by 90% increased purchases under contract from 30 to 80% reduced service call center volume by 15% reduced IT support costs by 50%

11 A Few More Customers…

12 Oracle E-Business Suite Built on a Unified Information Architecture Develop Market Sell Order Plan Procure Make Fulfill Service Maintain Finance HR Projects Contracts Customers,Suppliers, Products, … Common data model enables a single source of truth Comprehensive suite of applications designed to work together Robust set of integration services based on open standards Modular deployment by business flow Single global instance implementations

13 Business Intelligence Technology / RosettaNet Planning & Manufacturing Customer Service Product Lifecycle Management Tailored to the Complex Equip. Industry Support for Key Processes Outsourcing Management

14 Configuration (Product and Pricing) Opportunity Definition Available to Promise Schematics and Drawing Generation Configured Quote Automatic Order Creation Match Automatic Config Item, Bill & Routing Creation Bill & Routing Creation Automatic Supply Order Creation FlowSchedule WorkOrder Reserve Pick and Ship Needs Assessment Populate Installed Base Update Sales and Service Contracts Customer Initiates Service Request Assign Field Tech InitiateRMA Define Service Rqmt And Dispatch Work Repair & Debrief Receive & Repair PO Development ManufacturingService Tailored to the Complex Equip. Industry Key Processes: Complete Design-to-Service Flow

15 Oracle Complex Equipment Solutions Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Manage and Grow a Profitable Service Business Command and Control Outsourced Operations Enable you to: Business Intelligence Technology / RosettaNet Planning & Manufacturing Customer Service Product Lifecycle Management Outsourcing Management

16 Product Design and Development Accelerate Creation of Base Platform Portfolio Management Product Intelligence Phase-Gate Control Component Sourcing Design for SC & Compliance Sales Configuration BOM Mgmt & Release Product Data Repository Issue/Change Management N e w P r o d u c t I n t r o N e w P r o d u c t I n t r o CollaborationCollaboration CollaborationCollaboration Retire Design Release Ramp-up MaintenanceMaintenance Prototype & Test Volume Production Concept Specifications Drawings Schedules Issues Ideas Changes EngineeringManufacturing Sales & Mktg Purchasing Service Finance Internal External Suppliers Customers Contract Mfgrs

17 Customer / Channel Specific Model Design Specific Models from Base Platform Base Platform Selected Configuration

18 Search and Find the Best Components Efficiently Select Components Based on Requirements Browse Category Hierarchy Best Component Search Components by Specification Values (and compare search results) Choose Best Fitting Component Category Search Attributes Attribute Values

19 Control the Product Change Process Accurately Incorporate Customer-Directed Changes User-Defined Change Types Streamline Review and Approvals Facilitate Multi-Company Collaboration Implement Change Test & Approve Review Create Work Pkg Create Change Order (ECO) Create Change Order (ECO) Workflow Driven Schedule Cost Dispositions QA / Engr Alerts & Notifications Engineer Org 1, Org 2, … ID Issue Assign & Notify Assess Impact Review Approve or Reject Create Change Request (ECR) Create Change Request (ECR) Engineer

20 User-friendly HTML Interface Structured, Logical Flow User-friendly HTML Interface Structured, Logical Flow Online Configuration and Ordering Guide Customers Through Product Selection Process

21 Convert BOMs* & Track Configurations Manage 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.) *Bills of Material Engr BOM Sales BOM Mfg BOM Service BOM Plan, Market & Sell Manufacture Service & Maintain Design & Develop Design & Develop As Built As Designed As Maintained As Sold

22 Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Manage and Grow a Profitable Service Business Command and Control Outsourced Operations Enable you to: Oracle Complex Equipment Solutions Business Intelligence Technology / RosettaNet Planning & Manufacturing Customer Service Product Lifecycle Management Outsourcing Management

23 Multi-Tier Supply Chain Planning Synchronize Plans To Reduce Lead Times Extend Visibility to Multiple Tiers – Communicate requirements to all suppliers – Replenish and maintain inventories at customer sites on a consignment basis React Faster to Suppliers Constraints – Get visibility to supplier capacity – Reallocate key components – Make alternate sourcing decisions Reduce Obsolescence – Understand impact of BOM changes to your CM or Supplier Reduce Non-value Added Costs and Exception Overload – User-configurable exceptions – Automated exception handling via workflow Run plan Demand equipment Demand equipment Supply forecast Supply forecast Consensus forecast Consensus forecast Run plan Forecast CPUs Forecast CPUs Supply commit controller Supply commit controller Supply commit CPUs Supply commit CPUs Forecast controller Forecast controller VMI Hub Customer Consigned Inv Hub Visibility Semicon Supplier Customer EMS You

24 Multi-Tier Supply Chain Planning Risk Pooling via Inv. Optimization & Postponement Reduce inventory without sacrificing customer service Use analysis tools to determine: Where to optimally hold inventory (stage & location) What quantities to hold What safety stock to keep Evaluate KPIs to assess service levels, postponement strategies, revenues, costs, etc. Prod A Prod B Assy 1 Assy 2 Sub Assy Finished Product Major Optional Assemblies Sub- Assembly C 1 C 2 Qty=100 Qty=125 Components Risk is pooled because a lower quantity of a common sub-assy is required to meet a given service level Use Planned Inventory Points that Enable Flexibility

25 Select Mfg Source In-House? Outsource? Drop Ship? CTO and MTS Manufacturing Minimize Inventories & Increase Customer Satisfaction Customers Standard Product (MTS) Configured Product (CTO)Configure Create Mfg BOM & Routing Check Avail- ability Global ATP and Pricing Production Plan Schedule for Produc- tion Pick (or Receive) Ship (or ASN) Invoice Inventory Automated: Creation of Orders and Schedules Creation of BOMs & Routings Accurate Order Promising Materials Allocation & Option Dependent Sourcing

26 Multi-Mode Manufacturing Integrated Intelligence Cost Analysis Productivity Planning Planned Orders Schedule Changes Component Substitutes Resources Substitutes Planned Orders Schedule Changes Component Substitutes Resources Substitutes Product Lifecycle Mgmt Warehousing / Transportation Service Asset Maintenance Demand Schedules Sequencing Configured Order Demand Schedules Sequencing Configured Order Lot / Serial Genealogy Tracking Quality Management Mixed Mode MES APIs, Direct Access Partner Collaboration (RosettaNet) Contract Mfgrs Model Shop Floor Suppliers AnalyzeAdjustSample Demand Variability CTOATO MTS Seiban Discrete Flow Material Availability Mfg Capacity Schedules/Changes Production Status Ship Notices Invoices/Payments Material Availability Mfg Capacity Schedules/Changes Production Status Ship Notices Invoices/Payments Outsourcing Real-Time WIP Visibility Enterprise Shop Floor Customer Contract Mfgrs Suppliers

27 Flow Mfg for Cost Effective Production Support Lean Manufacturing Practices to Reduce Cycle Time and Waste Sequenced Demand Customers Suppliers Production Line Sequenced POs Inventory Bin 1 Bin 2 Operation 10 Feeder PlantFeeder Line Synchronized Production Bin 1 Bin 2 Operation 20 Bin 1 Bin 2 Operation 30 Bin 1 Bin 2 Operation 40 Kanban Replenishment Build a Mix of Models and Configurations on the Same Line

28 Manufacturing & Logistics Integration Efficiently Move Products from Assembly to Customers Warehouse Management Integration Cross-dock and direct ship to / from manufacturing Comply with labeling requirements Create & track LPNs and lot / serial numbers Enable simple kitting to full bill of materials or work order jobs Support seamless configure-to-order (CTO) flow Sales Orders Mfg Operations WMS Solution Transportation Management Integration Promise orders and plan transportation based on material availability Incorporate true transit times and transportation costs into supply plan Re-plan transportation if manufacturing delays require expediting Transportation Plan Mfg Operations

29 Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Manage and Grow a Profitable Service Business Command and Control Outsourced Operations Enable you to: Oracle Complex Equipment Solutions Business Intelligence Technology / RosettaNet Planning & Manufacturing Customer Service Product Lifecycle Management Outsourcing Management

30 Automatically Verify Entitlements Accelerate Response via Seamless Contract Integration Define service coverage and determine entitlements Sell different types of services on a single contract - Warranties, extended warranties - Usage-based or subscription-based Bill accurately based on actuals or estimates - Time-based per regular service fees - Usage-based per volume / incidents System routes customer based on existing info (e.g., gold-level customer) Analyze renewals for recurring revenue opportunities Coverage Times Response Time Commitments Discounts Resource Preferences Time Zone & Breaks Coverage Times Response Time Commitments Discounts Resource Preferences Time Zone & Breaks Notifications Expirations Renewals Notifications Expirations Renewals Service Contracts Repository Instantaneous Verification Instantaneous Verification Service Rep Customers

31 Know Installed Base Configurations Capture Information From Inception to Retirement Record Mfg, Quality and Maintenance Specifications Track the Status and History of All Changes Manage Configurations / As Maintained BOM Record Operational Metrics Review Resolution for Similar Products With Similar Issues Track Depreciation and Accounting Information Common Product Repository Design Specs BOM / Configuration Quality Data Usage / Status Maintenance & Service History Warehouse / Packaging Sales / Shipping Ownership / Installation

32 Field Service Resource Planning Increase Productivity and Service Quality Issues General Inquiries Call Backs Inspections Component Returns Replacements Field Repair & Maintenance Optimize Workloads & Schedules Priorities Costs Travel Time / Distance Locations / Road-Level Routing Optimizing Engine Scheduling Criteria Resource Workload Spares Inventory Products Resources / Skills Territories Contracts / Customer Value

33 Field Service Deployment Reduce Repair Time & Cost, Leverage Mobile Capabilities Spare Parts Access Options: Wireless connected Disconnected w/ periodic synchronization View and update schedule Access service levels Update product / issue data real-time Order parts remotely Report time, material and expenses incurred View and update schedule Access service levels Update product / issue data real-time Order parts remotely Report time, material and expenses incurred Mobile Capabilities OptimizeSchedule Create Field Work Order Identify Resolution Needs Resolve On-Site Dispatch Field Techs Debrief Invoice Customer

34 Manage Product Returns Support Complete Logistics & Repair Processing Needs Receive and Inspect Estimate and Approve Plan and Schedule Store, Ship Debrief and Bill Billing Mfg & Inventory Shipping / Receiving Human Resources Contracts Exchanges In-House Repair Repair, Refurbish, Reclaim Identify Resolution Needs Send Loaner or Exchange Direct Product Return Identify Resolution Needs Generate RMA Monitor Return of Damaged and Serviceable Products – Perform diagnostics and job estimates – Execute shipment back to customer and invoice for services rendered Track Repair Status and Actual Costs Automatically Update Product Configuration and Repair History

35 Installed Base Preventive Maintenance Support Planned Maintenance & Reduce Breakdowns Improve Spare Parts Planning Create PM Programs Create PM Programs Optimize Schedule Optimize Schedule Define programs, including default schedule, required resources, and covered items Link programs to Contracts to initiate coverage Auto-generate field work orders Auto-generate service requests and tasks based on plans Assign resources, including spare parts and equipment Automate stocking rules Manage excess inventories Utilize automatic replenishment rules based on lead times Debrief time, labor & materials Invoice customer Feedback results to plan to adjust timing of next PM activity Debrief & Invoice Dispatch Technicians & Perform PM View customer and PM work info remotely Execute PM against established procedures

36 Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Manage and Grow a Profitable Service Business Command and Control Outsourced Operations Enable you to: Oracle Complex Equipment Solutions Business Intelligence Technology / RosettaNet Planning & Manufacturing Customer Service Product Lifecycle Management Outsourcing Management

37 Outsourced Manufacturing Challenges Less Visibility, Less Control, Conflicting Information All the Headaches of In-House Manufacturing are Amplified ATP based on supplier capacity and availability of optional components Communicating configuration changes to multiple supplier tiers Enforcing product quality standards Capturing the as built genealogy and product traceability information Managing and monitoring inventory levels (WIP, etc) Communicating shipping instructions, authorizations, and notifications Enforcing compliance to mfg instructions and methodology Tracking and reporting WIP and order status to customers Tracking in-transit shipments from supplier to customer

38 Example: Drop Ship from Partner to Customer Customer OEM Manufacturing Partner (MP) Carrier Component Supplier Order A Place PO for A Give A to Carrier Ship Component Drop Ship A Place PO for Component Schedule Carrier Configure Product A Manufacture & Assemble Produce Components Schedule & Route Pick-Up & Deliver OEM Process Description Outsources 100% of assembly Orders components for delivery to Partner Asks Partner to drop ship to Customer Manages shipping and customer billing OEM Process Description Outsources 100% of assembly Orders components for delivery to Partner Asks Partner to drop ship to Customer Manages shipping and customer billing

39 Outsource with Confidence Achieve Total Visibility to Outsourced Mfg & Logistics – Partner Setup – Implement Control from the Start Model Manufacturing Partner (MP) as an internal org to simulate material flow, order processing, and mfg processes Define BOM and routing to build assembly at MP location Create operations that mimic process at MP so status can be tracked Define sourcing rules to buy assembly from MP and buy components from Supplier – Outsource Mfg – Seamlessly Extend Your Operations Capture sales order to create MP demand for assembly and Supplier demand for component Define a single, holistic supply chain plan that includes MP and Supplier capacity/availability Run plan and implement planned order as a work order for MP work (auto-creates assembly PO with customer ship-to) Implement planned order from Supplier (auto-creates component PO with MP ship-to)

40 – Shipping – Manage Final Delivery to Customer Automatically flow ship-to requirements (address, promise date, etc.) from Sales Order Select carrier based on shipping method, price, routes, availability Schedule pick-up from MP and delivery to Customer Track shipments en-route (punch-out to carrier systems) Allocate freight costs back to Sales Order line item – Monitoring – Report Progress with Accuracy For each MP operation determine required tracking level. Notification of: -Moves and Completions -ASNs -Physical Receipt of Goods – Invoicing – Auto-Create Invoices for POs Pay only for amount received (e.g., received 20 assemblies against a total order of 40 assemblies) Outsource with Confidence Achieve Total Visibility to Outsourced Mfg & Logistics

41 OEMs Send: Purchase Orders Schedules Bill of Materials (BOMs) Operation Instructions Drawings & Attachments OEMs Send: Purchase Orders Schedules Bill of Materials (BOMs) Operation Instructions Drawings & Attachments Mfg Partner Send: Adv Ship Notifications (ASNs) Quality Results PO Acknowledgements Mfg Partner Send: Adv Ship Notifications (ASNs) Quality Results PO Acknowledgements Facilitated Supplier Communications Enable Suppliers to have Easy Access to Critical Info Export entire structure to Excel Attach items to POs

42 Serial / Lot Genealogy and Tracking Always Know the Source and Placement of Each Part Trace a customer shipment back to the original source Trace a lot or individually serialized product through supply base Boards R Us Austin Acme Chip Fab 12 E. Storage Austin, TX SKD Co. S. Korea Nippon Fab Japan Disk Array (S.No. 892) Disk Array (S.No. 892) Server (S.No. 512) Server (S.No. 512) PCI Board (S.No. 717) PCI Board (S.No. 717) Storage (S.No. 929) Storage (S.No. 929) Disk B (S.No. 339) Disk B (S.No. 339) Disk A (S.No. 676) Disk A (S.No. 676) Memory (Lot No. 115) Memory (Lot No. 115) CPU (S.No. 232) CPU (S.No. 232) Ireland Manufacturing Partner Composition Where Used Suppliers

43 Personalized Field Technician Dashboard Extend Reach Through 3 rd Party Services Control Scheduling and Meet Contractual Obligations View KPIs Toggle between hide / show to view summary vs. detailed SR info Create additional SRs, tasks & notes View spares info, order parts, return defects Search based on multiple parameters

44 Business Intelligence Corporate Governance Business Intelligence Corporate Governance Integrated Throughout Entire Offering… and

45 Customers, Suppliers, Products, … Customers, Suppliers, Products, … Project & Contract Mgmt HR & Finance Planning & Purchasing 3rd Party & Legacy Apps ManufacturingManufacturing Order Mgmt & Warehousing Product Development ServiceService Asset Maintenance Sales & Marketing Foundation: Common Data Model A Single Source of Truth Single definition of customers, suppliers, products, etc. Immediate access to accurate, complete global information Consolidate data from multiple systems Scale to meet growth demands

46 Deliver Daily Business Intelligence Real-Time Access to Complete Business Information – Objective: Set institutional targets – Fact: Provide performance-based metrics – Exception: Continuously evaluate performance – Objective: Set institutional targets – Fact: Provide performance-based metrics – Exception: Continuously evaluate performance Manage By… What are the project schedule and budget impacts of design change ? How can I best adjust to planning exceptions ? How should I allocate production resources to meet variable demand? How are supplier deliveries impacting my on-time delivery capability? How is my backlog of open service requests changing?

47 Business Intelligence: Timely, Accurate, Relevant Daily updates on key performance indicators Actionable info on cost savings and incremental revenue opportunities Role-based views: - Order Mgmt - Planning - Purchasing - Manufacturing - Logistics - Service - Product Mgmt Links Reports Real-TimeResults Graphs Flexible Time Periods FlexibleComparisons Performance Measures

48 Corporate Governance A heightened business focus on accuracy in reporting to investors brought on by recent fraudulent practices of several major corporations Oracle Helps Drive Compliance through Visibility, Control, and Efficiency Senior mgmt personal liability for financial result accuracy Senior mgmt and outside auditor attestation to the effectiveness of internal controls Accelerated SEC filing deadlines Senior mgmt personal liability for financial result accuracy Senior mgmt and outside auditor attestation to the effectiveness of internal controls Accelerated SEC filing deadlines Sarbanes Oxley Act (SOX) EU Anti-Fraud Directive (Mar 2004) Collective Board liability for financial result accuracy Senior mgmt and outside auditor attestation to the effectiveness of internal controls Select Corporate Governance Code Collective Board liability for financial result accuracy Senior mgmt and outside auditor attestation to the effectiveness of internal controls Select Corporate Governance Code For all U.S. companies and companies issuing securities in the U.S. For all E.U. companies and companies issuing securities in Europe

49 Corporate Governance: Visibility, Control, Efficiency Automate Processes and Extend to Customers & Suppliers Your Company Customers & Suppliers Identify issues early Enable real-time information access & performance mgmt Consolidate global financials Unify corporate reporting Consolidate and reconcile information rapidly Automate business processes and broaden use of self-service Simplify IT infrastructure Leverage best practices from different groups / regions Visibility Efficiency Provide Single Source of the Truth Centrally Manage Policies and Procedures Integrate and centralize business operations Document processes and support compliance View, test, and certify internal controls Manage corporate communications Control Orders Invoices Payments Requisitions

50 All Built on Leading Technology Database Server Application Server

51 Oracle Complex Equipment Solutions …Integrated Business Intelligence & Corporate Governance Collaborative development with integrated BOM management and controlled ECR / ECO processing Manage and Grow a Profitable Service Business Comprehensive entitlement verification, preventive maintenance, spares planning, and field service Multi-tier collaborative planning, complete CTO process with flow mfg for mixed model production Establish and Sustain Profitable Innovation Command and Control Outsourced Operations Enable Lean, Agile Supply Networks Complete support for tiered, outsourced manufacturing; 3 rd party customer service coordination

52 Challenges Drivers Footprint: High Tech - Complex Equipment Oracle Enablers Establish and Sustain Profitable Innovation Shorter product lifecycles coupled with increasing design complexity and product customization Inability to place the right innovation bets to sustain corporate growth Missed or delayed product introductions Command and Control Outsourced Operations Complex coordination of global outsourced manufacturers and regionally located service providers Poor visibility to outsourced production Difficulty ensuring customer satisfaction when using 3rd party services Manage and Grow a Profitable Service Business Unplanned asset downtime disrupts customer mfg / assy Escalating inventory carrying costs Industry-wide emphasis on differentiating systems with value-added services Sustaining service expecta- tions set during slump Enable Lean, Agile Supply Networks Inability to rapidly respond to constant config changes Difficulty ensuring consistent, high product quality at reduced costs Long order-to-deliver cycles for customized complex configurations Supply Chain Planning Collaborative Planning Demand Planning Advanced SC Planning Inventory Optimization Global Order Promising Order Capture Order Management Configurator, Adv Pricing Production & Logistics Manufacturing Scheduling Discrete / Flow Mfg Inv & Warehouse Mgmt Transport Plng & Execution Customer Care iSupportTeleService Interaction Center Service Contracts Service Execution Field Service Field Service Mobile Field Service Advanced Scheduler Spares Management Depot Repair Product Lifecycle Mgmt Product Data Mgmt CADView-3D ConfiguratorSourcing Project Management Project Portfolio Analysis Project Collaboration Proj Resource Mgmt Supply Chain Planning Collaborative Planning Advanced SC Planning Inventory Optimization Global Order Promising Outsourced Mfg & Logistics Internet Supplier Portal Discrete Mfg, Inv Mgmt Order Management Transportation Execution Outsourced Service Mgmt Service Contracts iSupport, TeleService Field Service, Spares Mgmt Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearning Business Process Integration: Supply Chain Trading Connector for RosettaNet, Adapters Performance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting Enterprise Infrastructure: Procurement, Financials, Human Resources, Projects, Marketing, Sales Services: Consulting, IT Outsourcing, Education, Support IT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite

53 Evolution of Oracle Applications in High Tech New in 11i.9… RosettaNet Transactions Product Data Mgmt Consigned Inventory WIP Serial Tracking Partner Program Mgmt 3 rd Party POS Data Import (to calc Promotional Accruals) Outsourcing Support for Multi-Level Configurations Advanced Configuration Modeling Resource Centric Scheduling Workbench Integrated Maintenance and Production Planning Quote & Proposal Mgmt RosettaNet Transactions Product Data Mgmt Consigned Inventory WIP Serial Tracking Partner Program Mgmt 3 rd Party POS Data Import (to calc Promotional Accruals) Outsourcing Support for Multi-Level Configurations Advanced Configuration Modeling Resource Centric Scheduling Workbench Integrated Maintenance and Production Planning Quote & Proposal Mgmt Base Differentiators… Real-Time Shop Floor Visibility Configure to Order Supplier Collaboration & VMI Inventory Postponement and Optimization Lot/Serial Genealogy Collaborative Planning Advanced WIP & Yield Mgmt Planned Stocking Points End Item Substitution Allocated ATP Lead to Quote to Order Mgmt Waterfall Analysis Service Contracts Integrated Service Mgmt Real-Time Shop Floor Visibility Configure to Order Supplier Collaboration & VMI Inventory Postponement and Optimization Lot/Serial Genealogy Collaborative Planning Advanced WIP & Yield Mgmt Planned Stocking Points End Item Substitution Allocated ATP Lead to Quote to Order Mgmt Waterfall Analysis Service Contracts Integrated Service Mgmt New in 11i.10… Product Data Hub Project Portfolio Analysis Global Sales & Operations Planning Inventory Optimization Analytics Channel / Partner Management International Drop Shipments Transportation Planning Customer Consigned Inventory Option-Dependent Sourcing Procurement Contracts Special Pricing (Ship & Debit) Automated Spare Part Return and Repair Processes RFID Transaction Support Trade Planning and Execution Deal Registration Product Data Hub Project Portfolio Analysis Global Sales & Operations Planning Inventory Optimization Analytics Channel / Partner Management International Drop Shipments Transportation Planning Customer Consigned Inventory Option-Dependent Sourcing Procurement Contracts Special Pricing (Ship & Debit) Automated Spare Part Return and Repair Processes RFID Transaction Support Trade Planning and Execution Deal Registration High Technology Capabilities

54 Lower Total Cost of Ownership (TCO) Run on a Single Global Instance Consolidate Data Centers and Databases E-Business On Demand Low Cost Linux Hardware App Admin DB/AS Admin Sys Admin HW Admin App Admin DB/AS Admin Sys Admin HW Admin Production Midtiers 100% Linux Production DBRAC Cluster (Unix) Demo Environments 100% Linux Development 100% Linux Outsourced Customers70% Linux Production Midtiers 100% Linux Production DBRAC Cluster (Unix) Demo Environments 100% Linux Development 100% Linux Outsourced Customers70% Linux Oracles Experience with Linux 3x Faster, 5x Cheaper Easy to Automate en Mass Highly Reliable Needs:Roles: Oracle Manages: 50% Lower Cost 50% Better Svc Core Competence Predictable Cost You Manage: AvailabilitySecurityPerformanceChangeProblems Standardized Open Integration Platform Business Events Infrastructure Industry Standard Protocols Centralized Integration Repository Simplify B2B Integration, Application Connectivity, and Process Management Customers,Suppliers, Products, …

55 Lower Total Cost of Ownership Run on a Single Global Instance 30 Languages Multiple Currencies Customers in 100+ Countries All Languages Installable in Same Unicode Instance Support for Statutory and Customary Local Requirements Support Global Operations

56 Provide a unified view of customer data Protect and share information assets across all systems Standardize, cleanse and enrich data Synchronize data in near real-time Support key interactions – Orders – Contracts – Service history Leverage pre-built analytics Lower Total Cost of Ownership Standardized Open Integration Platform SiebelPeopleSoft LegacyBroadvision Customers,Suppliers, Products, … Example: Customer Data Hub

57 Customer Case Studies

58 Leader in test devices, semiconductors, and chemical analysis tools – $ 7.18B revenue in FY04; customers in 120+ countries; 29K employees Live on Oracle for global 24/7 operation – Quoting, Adv Pricing, Order Mgmt, iStore, Adv Supply Chain Planning, Purchasing, iSupplier Portal, Mobile Supply Chain Applications, Financials – Enterprise-wide implementation of Oracle Applications planned for: -37+ manufacturing sites -3 financial centers – 15K named users globally, 5K concurrent users, 100K concurrent requests daily – Entire semiconductor business on Oracle ERP -Runs optimized ASCP for 75K+ items & 6M+ resource requirements -Runs worldwide order mgmt and manufacturing operations using real-time synchronization to OSFM and constrained Global ATP -Manages over 1,000 shipments daily using Mobile SC Apps -First semiconductor company to use EDI-driven Oracle Release Mgmt for VMI -4 distribution centers -6 customer service centers Oracle E-Business Suite met over 4,500 Agilent business requirements without any customizations

59 $1.4B world leader in IT equipment power protection – 16 manufacturing & 25 distribution sites worldwide, serving 120 countries Live on 11i -- single data center in Rhode Island – Discrete Manufacturing, Advanced Supply Chain Planning, Order Mgmt, iProcurement, Financials, Human Resources, Self Service HR – Adding Configurator, Advanced Pricing, Mobile Supply Chain Apps – Consolidated 13 systems into a single global instance – users (700 concurrently), 3600 order lines/day across 50+ organizations at 10 sites Reduced raw material and finished goods inventory by 56% Match customer requirements to global availability Reduced raw material and finished goods inventory by 56% Match customer requirements to global availability American Power Conversion Corp. Having an integrated set of application modules in a single instance…you get a global perspective in one place in real time. – Lisa Sipe, CIO

60 $419M worldwide leader in high-performance open storage networking solutions – 1020 employees across the U.S., Europe and Asia – Replaced Siebel and SAP with Oracle Live on 11i – single global data center – Sales, Incentive Comp, Order Mgmt, Configurator, Discrete Mfg, Warehouse Mgmt, TeleService, iSupport, Depot Repair, Svc Contracts, Procurement Financials, Human Resources (inc self-svc), Payroll On-time shipments increased from 79% to more than 97% Reduced total inventory 75% Reduced service operations cost structure by 50% On-time shipments increased from 79% to more than 97% Reduced total inventory 75% Reduced service operations cost structure by 50% McDATA's challenge of growing international business operations can only be met with a flexible open system like Oracle E-Business Suite. Buying disparate "best-of-breed" applications requires costly and time-consuming integration services. Oracle offers a seamless, fully integrated, modular business solution. – Don Wenninger, CIO

61 Leading provider of standards-based IP communications solutions – Alcatel e-Business Networking Division is a division of Alcatel with a customer base of 500,000+ customers Live on 11i – Adv Supply Chain Planning, Demand Planning, Procurement, Discrete Manufacturing, Order Management, Human Resources, Financials – Reduced break-even point for new product launch (new switches line) by more than 40% Decreased inventory levels by 50%; expect $15M annual savings Reduced planning cycle time by 75% Decreased inventory levels by 50%; expect $15M annual savings Reduced planning cycle time by 75% 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

62 Oracle Complex Equipment Solutions Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Manage and Grow a Profitable Service Business Command and Control Outsourced Operations

63 Information Age Applications

64 Appendix: RosettaNet Offering

65 Current Integration Shortcomings Latent, Linear Information Flow OEM Comp Mfg Fab SmallSupplier Information Delays and Distortion Poor Planning Synchronization High Forecast Variability Lacking Visibility to Exceptions Missing Inter-Enterprise Strategy LargeSupplier Comp Mfg Sub Assy 3PL LateEMSEMS Incorrect Mis-Routed

66 RosettaNet At-a-Glance Developed by High Tech for Fast-Paced Business Agreed-Upon, Processes for Business Over the Internet XML-Based Standards to Support Processes – PIPs: Defined business processes between trading partners – TPAs: Electronic business contract between trading partners – RNIF: Document exchange process; specifies authentication, etc. Advantages – Eliminate information latency; provide global, real-time visibility – Achieve high degree of scalability, extensibility and flexibility (not EDI) – Decrease transaction costs over time – Architected for the business user Extend Process Integration Beyond Your Company

67 Oracles RosettaNet Solution Your Company Customers Suppliers SecurityValidationTransform Trading Partner Management Business Process Management LoggingMonitoring Transaction Mgmt Run-Time / Common Services XML Oracle.com Oracle 11i Apps Oracle 11i Apps Real Time XML TPAs RosettaNet PIP Check: Contents Process Transport RosettaNet PIP Check: Contents Process Transport Against AdapterAdapterAdapterAdapter AdapterAdapterAdapterAdapter XML TPAs RosettaNet PIP Check: Contents Process Transport RosettaNet PIP Check: Contents Process Transport Against XML

68 Oracle Trading Partner Solution Adaptive Infrastructure for Dynamic Businesses Seamless Connectivity Between Public & Private Processes – Private processes trigger public processes – Pre-built mappings for in and outbound process integration – Support for existing IT infrastructure Rapidly Achieve Critical Mass with Trading Partners – Empower business users to initiate and manage relationships – Leverage same PIP for multiple partners – Integrate to legacy / 3 rd party systems via adapters – Small-to-medium enterprise focus; self-service and affordability

69 Oracle Trading Partner Solution Complete on Integrated Technology Stack Integrated tools for easy TPA creation, management & validation Integrated business intelligence and data analysis Integrated business portal for visibility and transactions Integrated workflow and process management tools Integrated trading partner performance (TPA, real-time status, etc.) Integrated security and RNIF support without service fees Bus Proc Mgmt Web Services MiddlewareMiddleware TPA Mgmt Portal & Workflow Security/RNIF Support IntelligenceIntelligence B2B Integration 100% Pre-Integrated$$$ Integration Manage Business Collaboration Manage Technology & Maintenance vs.

70 Sample Product Info Flow Distribute Product Master Receive Message Process Prod Master Notification 2A12 PIP Send Message Collaboration Buyer(Customer) Supplier(OEM) Workflow Driven 2A12 PIP Capability: Enables supplier to create product master and distribute device-level product identification to a buyer 2A12 PIP Capability: Enables supplier to create product master and distribute device-level product identification to a buyer Workflow Driven Load MRP Procure Product Check Prod Availability 3A2 PIP 3A4 PIP Create Prod Master Notification Product family attributes Location-specific data Procurement data Product lifecycle info Product family attributes Location-specific data Procurement data Product lifecycle info Real Time Specify Requirements Check w/ Mfg Check w/ Supplier Approve

71 Sample Planning Flow Collaborative Forecasting Receive Forecast Check w/ TPA & Create Response Receive & Analyze Response 4A5 PIP 4A4 PIP Send Forecast Send Response Collaboration Buyer (OEM) 4Ax PIP Capability: Process for developing collaborative forecasts between buyer and supplier 4Ax PIP Capability: Process for developing collaborative forecasts between buyer and supplier Supplier (Component) Start Collaborative Planning Real Time Adjust Forecast Check w/ Mfg Workflow Driven Check w/ Sales Check Inventory Create Forecast Check w/ Channels

72 Sample Manufacturing Flow Work In Process (WIP) Reporting Receive Message Receive Error Notice 7B1 PIP Send Message Create & Send Error Notice Collaboration Buyer (OEM) Supplier (Component) Workflow Driven Check for Errors Analyze Notification Workflow Real Time Create WIP Notification 7Bx PIP Capability: Process for supplier to distribute work in process information to buyer 7Bx PIP Capability: Process for supplier to distribute work in process information to buyer Check w/ Supplier Check w/ Mfg & Assy Check Inventory


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