Presentation on theme: "Nicki Sommer Principal Sales Consultant NCOAUG, August 15, 2008"— Presentation transcript:
1 Nicki Sommer Principal Sales Consultant NCOAUG, August 15, 2008 Hi, My name is ____ and I’m here to talk to you about some of the exciting new features added to Oracle Advanced Planning for Release 12.What’s new in release 12 manufacturing?Nicki SommerPrincipal Sales ConsultantNCOAUG, August 15, 2008
2 Safe Harbor StatementThe 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.Before we start . . .
3 Advanced Planning Command Center Service Parts PlanningDemand Signal RepositoryLet’s start with executive level business scenario planning …Manufacturing Operations Center
4 Advanced Planning Command Center Let’s start with executive level business scenario planning …
5 Today’s Supply Chain Executives’ Agenda New world: continuously adapting to changing supply chain business modelUncertaintyVolatilityRiskConsolidationVirtualizationChanging Supply Chain Business ModelComplianceGlobalizationChaosContinuous InnovationOperational FlexibilityRisk Management andComplianceCEO’s AgendaDriversFor SuccessIncreasedShareholderValueandSustainableGrowthSupply chain executives today face a tough battle of trying to adhere to the CEO’s agenda of sustainable growth and shareholder value while dealing with an ever changing supply chain business model. The drivers for success are operational flexibility, risk management, and continuous innovation and they can really only achieve this by bringing analytics and optimization together into a common platform, as also described by AMR in one of their recent studies.“What is required is a new type of decision support platform, one that integrates analytics and optimization. 15 years after the birth of Supply Chain Planning (SCP), we are now just starting to see analytics and optimization converge on a common platform”AMR Research Report “How to measure your supply chain today “55
6 The Great Information Divide Still Exists Operational EfficiencyRisk management and ComplianceHow do the supply chain executives get access to actionable information?Continuous InnovationVolatilityComplianceVirtualizationUncertaintyChaosGlobalizationConsolidationRiskSpreadsheets, Reportss, Phone callsManual Co-ordination Across Functional GroupsSNOASCPDMPSIODRPSo how do executives get access to actionable information? Today, this mostly happens to be a manual exercise – the executive delegates via or phone calls what he needs and in return with a great deal of latency he gets the information in spreadsheets, presentations, and maybe some custom reports, even if the planning information is readily available in the planning applications that they invested in. Key point here is that they do no have time to learn the deep and rich user interfaces that planners use for their day to day operations. In some cases the decide to build a data warehouse with the problem that any drill down into actionable information is not feasible as it is disconnected. So how do we bridge this still existing great information divide between planners and their management chain?Typically, they don’t have access to correlated and aggregate planning data unless it is presented in a comprehensive spreadsheet or on paperOften, 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 dataSupply chain executives have no time to learn power user interfaces that were developed for purposed planning applications
7 Oracle Advanced Planning Command Center BUSINESS INSIGHTBusiness insight for supply chain executivesBUSINESS DRIVERSScenario, Activity andProcess ManagementDrill downs to detailsPre-built, self-service DashboardsOracle Advanced Planning Command Center provides planning analytics for key decision makers – pre-built self service configurable dashboards. In addition, decision makers can define business scenarios that need to be executed by their planners. When performing their analysis the divide between analytics and planning disappears as seamless transition from analysis to taking actions (planning) is supported. And to make it easier, the product comes with very rich content out-of-the-box so that you can get started immediately.Preconfigured Analytics ModelPlanning analytics for key decision makers – Pre-built, self service, configurable dashboardsExecutive level business scenario planning – Planners and executives share accountabilityNo separation between analytics and planning – Seamlessly drill down to lowest level of detailRich content out-of-the-box – Get started immediately for fast ROI
8 Oracle Advanced Planning Command Center Key capabilitiesPlanning Analytics for Supply Chain Decision MakersPre-Built Dashboards and ReportsGet the right answersSelf service, pre-builtRich content and KPIsSeamless integration with planning appsAnalyzeAnalyticalDataPlans and Archived PlansBusiness scenario planningAnalyze and compare scenarios and plansDecide which scenarios to planCompare baseline to alternative scenariosAssign scenarios to planners for executionScenario andActivity ManagementPlanExecutescenariosArchive plansPreconfigured Planning ProcessesOracle Advanced Planning Command Center provides the following key capabilities:Planning analytics for supply chain decision makersBusiness scenario planningPlanning process automationWe will talk about these in more detail next.Execute automated processesPlanning process automationNotify constituents of assigned activitiesLink processes for manual or automated executionAuto-archive plansForecastingSupply PlanningOrchestrateWeb Service enabledPlanning Processes
9 Advanced Planning Command Center Business insight for supply chain executivesExecutive level business scenario planningPlanning analytics for supply chain decision makersPlanning process management automationLet’s start with executive level business scenario planning …
10 Role Based Dashboard Process – Executive Review Executive Review reportsExecutive SummaryTop Diff – Operating Plan and Budget by CategoryConsensus Change by CustomerConsolidated AnalysisProfit and Loss StatementConstrained Forecast ComparisonBudget AnalysisKPI reports: Forecast Accuracy; Customer Service; Inventory and ProductionExecutive ReviewConsolidated AnalysisThis trend report consolidates total demand, total supply and resulting inventory levels and is available in both units and reporting currency. Additional measures include inventory turns and days of cover.Total Supply is the sum of all supplies in units.Total Demand is the sum of all demands in units.Projected Available Balance (PAB) is net cumulative supply minus demand in units.PAB Value is PAB multiplied by standard cost.PAB Days of Cover is PAB divided by average daily demand for the item in the plan.Inventory turns is calculated by dividing Annualized COGS by Avg PABwhere:Annualized COGS = (item standard cost x sum of independent demand quantity in plan x 365) / number of days in planAvg PAB = average of beginning value and ending value of each bucketProfit and LossThis report shows Total Revenue, Total Cost, Profit Margin and Margin % for the Baseline scenario.Total Revenue from expected sales is equal to the sum of (Independent demand quantity * (list price - discount)).Total (Supply Chain) Cost is the sum of manufacturing, purchasing, transportation and carrying costs in reporting currency.Profit Margin is the difference between Total Revenue and Total Cost.Margin % is calculated as ((Total Revenue - Total Cost) / Total Revenue) *100.Constrained Forecast ComparisonThis trend report shows actual sales, stakeholder and constrained forecasts and is available in both units and reporting currency.Navigation reports rank the absolute difference and absolute % difference between the consensus, constrained and budget forecasts for the Baseline scenario only.Cumulative Budget TrackingThis trend report compares the cumulative constrained forecast and cumulative budget in reporting currency and supports scenario comparison.The budget shortfall is the difference between cumulative constrained forecast and cumulative budget.Key Performance Indicators (KPI)This KPI report is broken out by Forecast Accuracy, Customer Service and Inventory metrics and measures business performance.Forecast AccuracyThis KPI report shows the accuracy of the Consensus Forecast lagged at 4-week, 8-week and 13-week intervals.Absolute Percent Error is calculated by taking the absolute value of the difference between actual sales and the consensus forecast divided by actual sales.Customer ServicePerfect Order Index is the fill rate of the end demands measured as a multiple of two factors - percentage of end demands met on time (even partial quantity) and percentage of end demands met in full quantity (even late). It is calculated as (% of independent demands met on time) * (% of independent demands met in-full-quantity).Shipments to Plan is the percentage of actual shipments to planned shipments. It is calculated as (shipment history quantity / Total Independent Demand quantity scheduled to be shipped) * 100.Line Fill rate (count) is the fill rate of the end demands measured as a percentage of number of lines at least partially satisfied on time. It is calculated as (count of independent demands where at least part quantity is met by due date) / (count of all independent demands).Actual backlog represents all sales order booked but not yet fulfilled.Projected backlog is the sum of actual backlog and the difference between the bookings forecast and shipments forecast.Inventory and Production KPIInventory To Plan is (actual onhand history quantity / planned inventory quantity) * 100 .Inventory Value is PAB Units multiplied by standard cost.Safety Stock is safety quantity in units.Production To Plan is (production history quantity / Total Make order quantity) * 100.Note: The ADS demo will include additional KPI reports in the Executive Review page. These reports include Profit and Loss KPI and Cost Breakdown KPI and have the same design as the three KPI reports that are preseeded. These extra reports are quick to create and illustrate just how easy it is to add additional reports to the S&OP Interactive Dashboard.
11 Translate Strategy to Actions Problem ► Cause ► Alternative Solution EvaluationWhy do I have this problem?Change product mixWhat problem do I have?CompetitorpromotionLaunch promotionSales selling wrongproduct mixAdjust pricingSales below targetPromote alternateproductPricing issuesWhat actions should I evaluate?Revenue below targetPlan overtimeCritical part shortageSupply shortagesOutsourceproductionLost productioncapacityTo determine how to deal with metrics that are off from target, you will try to translate problem (what problem do I have) to cause (why do I have this problem) to possible actions that you should evaluate to solve the problem (actions = planning scenarios).Speaker note: talk through example if required.Lost sales due to lackof supplyChange inventory levelsHedge supplyAnalysisPlanning
12 Scenario ManagementDecide what baseline and alternative scenarios to run to make decisionsSupply chain decision makers define business planning scenariosUnlimited number of baseline scenariosUnlimited number of alternative scenariosAssign scenarios and tasks to planners for executionShared accountability for supply chain planning metricsPlanners execute plans using Planner WorkbenchesAttach key documentsFinancial analysisExternal market data and industry reportsAssign and monitorscenario activitiesPersonalActivity ListPersonalActivity ListPersonalActivity ListAdvanced Planning Command Center provides robust Scenario Management which enables you to define business planning scenarios for which you can assign tasks (activities) to planners for execution. You can also attach key documents as backup to the scenarios that need to be implemented, such as results of a financial analysis or external market data and industry reports.Execute andassign demand plansto scenariosExecute andassign inventory plansto scenariosExecute andassign supply plansto scenariosDemand PlannerInventory AnalystSupply Planner
13 Compare Scenarios – Cut across Planning 360 degree visibility to demand, supply, capacity, finance, and exceptionsPre-built self-service dashboards for plan health and S&OP analysisWhen comparing scenarios to make decisions, it is imperative to have 360 degree access to demand, supply, capacity, finance, and exception information, as provided in the dashboards.
14 Compare Scenarios – Cut across Planning Enable holistic view of supply chain performance and drill down to detailsDemand from DMSupply from ASCP or SNOInventory from IOYou can look in a single report as consensus demand from Oracle Demantra Demand Management, supply from Advanced Supply Chain Planning, and inventory metrics from Oracle Inventory Optimization.Demantra Demand ManagementAdvanced SupplyChain PlanningInventory Optimization
15 Compare Scenarios – Cut across Planning Enable holistic view of supply chain performance and drill down to detailsDemand from DMSupply from ASCP or SNOInventory from IODrilldown to detailsAnd from the high level, you can drill down to the next level and show the details without having to jump into the power user interfaces but with the ability to do so when working with the planners.Demantra Demand ManagementDemantra Demand ManagementAdvanced SupplyChain PlanningInventory Optimization
16 Compare Scenarios to Make Decisions Compare baselineto alternateCompare currentto previousOnce you have executed these scenarios you can compare them and make the decision by comparing baseline to alternates or current to previous scenarios and plans.
17 Advanced Planning Command Center Business insight for supply chain executivesExecutive level business scenario planningPlanning analytics for supply chain decision makersPlanning process management automationAfter we talked about the scenario planning, let’s talk next about the type of analysis that supply chain decision makers can perform with Advanced Planning Command Center
18 Pre-seeded Rich Content – KPIs Rich content out-of-the-box:100+ pre-seeded dimensions and perf. metricsAs we mentioned earlier, it is key to have rich content when you want to start quickly. Oracle Advanced Planning Command Center ships with rich content out of the box – 100+ pre-seeded dimensions and performance metrics.
19 Pre-seeded Rich Content – Reports Rich content out-of-the-box: 100+ pre-seeded reportsAdv Planning Command Center also ships more than 100 reports that span Sales and Operations Planning and Supply Chain Planning Analysis across a wide set of important reports and metrics
20 Advanced Planning Command Center Business insight for supply chain executivesExecutive level business scenario planningPlanning analytics for supply chain decision makersPlanning process management automationThe last important part of the Adv Planning Command Center solution is the process management and orchestration layer, which we’ll talk about next.
21 Planning Process Management Automation Web service enabled planning processesAll key planning processes are web service enabledCollectionsForecastingPlan runsPlan name creationApproval and review steps can be modeled and inserted into the processWe web service enabled all key planning processes and linked these processes into comprehensive business flows that include approval and review steps.
22 Planning Process Management Automation Automate planning process execution via BPELThe system modeled tasks, along with manual activities that we talked about earlier in the presentation, can be assigned to planners for execution and planners can define the same parameters for running these tasks directly from the scenario management definition. When resubmitting a process, one can decide to skip processes if it is not required to change a particular starting point.Assign owners to top level process notesOptionally skip steps when resubmitting
23 Planning Process Management Automation Automatically archive scenarios plans for historical analysisArchive scenarios directly from Scenario Management, via concurrent program or web serviceAutomatically archives KPIs and facts for plans that are linked to the scenarioArchives Demantra Demand facts published to EBSCreates a new scenario version that can be used for comparison in the dashboardsPurge scenarios as they become obsolete (will not purge plans shares across multiple scenarios)Archive plans directly from plan runs (optional) or Publish profile (SNO, Demantra)All facts, KPIs, and summaries for the plan are archived in a new plan versionCompare plan versions in the dashboardsPurge plan versions as they become obsoleteASCP/IO Purge plan: purges all plan versionsPlans and Archived PlansAnother important feature that is essential for trend analysis is the ability to archive plan performance information and scenarios in a single place. The archive of the plan can be performed automatically when running plans.Archive plansArchivescenarios
24 Service Parts Planning Let’s start with executive level business scenario planning …
25 Two Different Worlds Centralized Few locations Few products Why Service requires different approaches and systemsMANUFACTURINGSERVICECentralizedFew locationsFew productsPlanners manage few partsShorter lead timesFew suppliersSales forecastDeterministicBuild or buy supplyDecentralizedMany locationsMany service partsPlanners manage many partsLonger lead timesMany suppliersMyriad of demandsProbabilisticMove, repair, or new buyManufacturing and Service Operations operate very differently. Service Parts Planners are typically responsible for a particular group of spare parts or customer region. Often they manage many spare parts as the number of spare parts accumulate over long periods of time when you still provide service even though you’re not selling the products anymore. Service Parts Planners need to figure out replenishment strategies when there’s no demand history and part failure rates. They typically work with specialized parts and repair suppliers and rather than building or buying, they focus on transfers, repair and new buy.Let’s first talk about the current trends in the Service Industry:Service Operations need to be transformed from cost to profit centersGood service translates into proven customer retention, key when new competitive products are being introduced globally more faster than ever beforeIn working with your supply base, it is of essence to have visibilitySince you cannot keep every part at 100% service level at every location from a cost perspective, it is also key to determine where to hold which spare parts inventory for example based on a set service level or budget
26 Service Supply ChainMust manage both forward and reverse material flowsCustomersSupplier(Repair)RepairedIn repairService techniciansRegional DCsCentral DCSupplier(New Buy)The service supply chain is all about the reverse material flow. Service technicians and customers return parts. You send parts for repair to suppliers. Suppliers send repaired parts and new buy parts back to you. You send repaired products or spare parts to your customers.On-handConsignedRepair depotMaterial flow of good sparesMaterial flow of defective spares
27 Oracle’s Service Management Solution Complete and integrated solutionCustomersService ExecutionService Providersand SuppliersExternalContractsCall centerCMRO &Depot repairInstall base& EngineeringSpares MgtField schedulingSelf-ServiceContracts & renewalsParts life cycle & failure ratesRepair ordersParts usageSelf-ServiceIn-houseOracle provides a comprehensive Service Management solution that covers all aspects of the service chain. From call center management with Siebel service, to service contract management and field service, it is completely covered. Service Parts Planning complements this solution with parts planning that is seamlessly integrated to the Field Service applications.Service supply chain designSpare parts and returns forecastInventorypostponement planSpare parts replenishment planDeployment planPhoneSpare parts order promisingMessaging (XML/EDI)ReplenishmentordersWorkflow based exceptionsPoweruserSelf-ServiceService Parts Planning Solution
28 Oracle Service Parts Planning Key capabilitiesSimultaneously forecast, replenish and redistribute your service parts across your service supply chainMore accurately forecast your service partsDemantra statistical forecasting engine inside for highest accuracyAccount for intermittent, seasonal, and fast moving demand patternsLeverage composite forecasting (shipments, usages, returns)Use service failure ratesOptimize the replenishment and redistribution of parts across the extended service network, integrated with Service ExecutionIntegrate with other Advanced Planning products for additional business processesManage spare parts at customer locations (via CP)Manage service contract customer demand (via Dem DM)Manage targeted service levels and budgets (via IO)Produce parts in manufacturing facilities (via ASCP)Oracle Service Parts Planning offers the following key capabilities …
29 Oracle Service Parts Planning CustomersSupplier(Repair)RepairedIn repairService techniciansRegional DCsCentral DCSupplier(New Buy)On-handConsignedKey to mention is that Service Parts Planning plans everything up and to the field stocking locations/ESLs and that Spares Management complements this by planning the replenishment to the stock trunk of field technicians.Repair depotSpares ManagementService Parts PlanningSpares Management plans field service engineer trunk stock replenishmentService Parts Planning plans supply network (up-to trunk stock locations)Recognizes usages from field service
30 Oracle’s Service Parts Planning Solution Enabling profitable reverse logistics at higher service levelsSimultaneously forecast, replenish and redistribute your service parts across your service supply chainMore accurately forecast your service partsOptimize the replenishment and redistribution of parts across the extended service network, integrated with Service ExecutionIntegrate with other Advanced Planning products for additional business processesSo let’s look at the details next, starting with the simultaneous forecasting, replenishment and redistribution
31 Simultaneously Forecast, Replenish and Distribute Single planning process and UI for highest productivity and fastest analysisItems, Failure Rates,Supersession ChainWorksheetPreferencesSupply-DemandForecastGraphsHere’s a screenshot. As you can see, it show both forecast and replenishment info, exceptions, you can add comments, view the supersession chain, and analyze your service chain for a particular or set of organizations, locations, and parts.CommentsExceptions
32 Oracle’s Service Parts Planning Solution Enabling profitable reverse logistics at higher service levelsSimultaneously forecast, replenish and redistribute your service parts across your service supply chainMore accurately forecast your service partsOptimize the replenishment and redistribution of parts across the extended service network, integrated with Service ExecutionIntegrate with other Advanced Planning products for additional business processesLet’s next talk about the powerful forecasting capabilities that Service Parts Planning support…
33 More Accurately Forecast Service Parts Demantra Bayesian statistical engine “inside” for highest forecast accuracyAccurately statistically forecast the complex demand patterns found in service partsKey forecast methods specific to service part demand patternsData transformations for intermittent or sporadic patternsExpert mode: automatically select best blended statistical method for every service partForecast for service parts without adequate shipment historyForecast based on composite of shipments, usages, returns, failure rates, and product populationForecast for changing replacement parts and revisionsForecast entire supersession chain and chain history of multiple revisionsScale to handle large volumes of partsSelectively re-forecast: use specific forecast methods, parameters, and forecasting frequency as needed based on criticalityWe embedded Oracle’s Bayesian forecasting engine, similar to how we embedded this in Demantra Demand Management, for Service Parts Forecasting. It is basically a “PHD in Statistics” out-of-the-box that solves the key forecasting problems that service parts planners face … (talk through bullets).Speaker note: customers do not have to buy Demantra Demand Management to get Service Parts Forecasting. They can add Demantra DM for additional forecasting capabilities that are not supported in Service Parts Planning. This also means that you do not get Demantra DM included when buying SPP – you only get the SPP specific statistical engine component.
34 Intermittent, Seasonal and Fast Moving Demand Demantra Bayesian statistical engine “inside” for highest forecast accuracyJ F M A M J J A S O N D J F M A M JIntermittent demand – Printer HeadsSupport for key forecasting methodsMoving averageSingle exponential smoothingHoltIntegrated causal exponential model (Winters enhanced)Regression with seasonal causalCroston’s for intermittentRegression with seasonal causal for intermittentMultiplicative Monte Carlo regression with seasonal causal for intermittentOptionally, use 100+ advanced parameters for fine tuningBaysian weighted forecasting - blend multiple forecast methods instead of picking one methodM A M J J A S O N D J F M A M J J ASeasonal Demand – Air Conditioning PartsThe SPP Forecasting engine supports the key forecasting methods that service parts planners use as well as enables planners to use a blended method when they are unable to decide which forecast method to use. The statistical engine hides the complexity from the planners but for those that need tweaking and control, all the parameters can be changed.Forecasting items is basically driven by forecasting rules that can be modeled based on usages, shipments, and returns forecast, as well as product population.Another important problem for parts forecasting that is addressed in Service Parts Planning is the ability to perform composite forecasting especially when no history is available for new service parts or when there is a need to drive the forecastAnother important capability that we provide in SPP Forecasting is the ability to calculate forecast based on item supersession chains
35 Oracle’s Service Parts Planning Solution Enabling profitable reverse logistics at higher service levelsSimultaneously forecast, replenish and redistribute your service parts across your service supply chainMore accurately forecast your service partsOptimize the replenishment and redistribution of parts across the extended service network, integrated with Service ExecutionIntegrate with other Advanced Planning products for additional business processesThe essence about using all the forecasting capabilities that we just talked about it to have it result in a more accurate forecast that drives you replenishment and redistribution decisions, which we’ll talk about next.
36 Optimize Replenishment and Redistribution Operate more profitable Service chain by saving inventory and purchasing costsConsider key service planning constraintsPart supersession, condition, and criticalitySourcing of repair-at and buy-fromRepair resources (internal)Purchasing, repair, transportation lead timesSupplier capacity (for new buy)Minimize inventory and purchasing cost, and out-of-stock impactsDynamically reallocate and reposition partsReplenish to optimized safety stock levelsUse up superseded parts; repair before new buyOut-of-the-box integration with ExecutionRelease recommendations for new buy, repair, and transfersService Parts Planning calculates the optimal replenishment and redistribution decisions while considering all the key constraints in sourcing, supersession, part criticality and condition, and repair capacity. By dynamically reallocating inventory it enables you to minimize inventory and purchasing cost and out-of-stock impacts. Recommendations can be directly released to Field Service for execution.
37 Model Key Service Constraints Accurately model your service supply chainModel how your supply chain changes over timeTime phased sourcing rulesInclude sources such as Transfer From, Repair At, Return To, Make At, and Buy FromUse unlimited assignment sets for what-if sourcing scenariosRebalancing between organizations (circular sourcing)Use different ship methods w/ diff lead times attached to sourcing ruleFlexible assignment of sourcing rules minimizes setup maintenanceThe underlying sourcing model is very flexible and models key sources such as “repair at”, “return to”, ”transfer from”, and so on. In addition, you can define that one warehouses can supply each other, use different ship methods with different lead times. Sourcing rules are date effective, so if they need to change over time, you can model this and the planning engine will take this into account.
38 Model Key Service Constraints Part Supersession and Part ConditionA key constraint that SPP supports is part supersession and part condition. The planning system will recommend to repair a “bad” part to a “usable” part before recommending new buy as it is less costly.
39 Minimize Inventory and Purchasing Cost, and Out-of-Stock Impacts Service-specific business logicRepair before new buyConsider returns supplyUse up superseded partsDynamically reallocate and reposition partsReplenish to optimized safety stock levelsThis screen illustrates how the planner can analyze the detailed decisions from the engine.
40 Oracle’s Service Parts Planning Solution Enabling profitable reverse logistics at higher service levelsSimultaneously forecast, replenish and redistribute your service parts across your service supply chainMore accurately forecast your service partsOptimize the replenishment and redistribution of parts across the extended service network, integrated with Service ExecutionIntegrate with other Advanced Planning products for additional business processesIn the beginning we talked about Service Parts Planning being part of a broader Advanced Planning solution. We’ll cover next what problems the other planning applications help you solve in the Service Management area. These additional capabilities can be deployed at a later point in time or simultaneously with Service Parts Planning.
41 Enable Additional Business Processes Leverage additional key capabilities provided by Oracle Advanced PlanningSpare Parts Forecast (Highest Rev)COLLABORATIVE PLANNINGManage spare parts at cust. locationsGet visibility to new buy supplier capacityDEMANTRA DEMAND MANAGEMENTAdvanced forecasting methodsForecast at additional levels (customer, …)Forecast leveraging causal factorsForecast new product introductionsNew buy supplier capacitySERVICE PARTS PLANNINGSpare Parts Forecast (Highest Rev)and Demand Variability (optional)Replenishment andRedistributionForecastingINVENTORY OPTIMIZATIONVerify ability to uptake new SLAsDetermine inventory budget required for SLAsOptimally deploy inventory to meet SLAsAnalyze inventory policy recommendationsForecast andDemand VariabilityThis diagram shows the integration points between SPP and the other products.Time-phased Safety Stock Levels
42 Demand Signal Repository Let’s start with executive level business scenario planning …
43 Demand Signal Repository Overview Business ProblemLimited visibility to store/SKU level inventory location and performance data contributes to suboptimal forecasting, allocation and replenishment capabilitiesRetailers are starting to rely more on category captains and have begun to share daily store level POS and inventory data directly with their CG suppliersUnlocking the value of downstream data is a challenge due to high complexity, variability and volumeSolution OverviewOracle Demand Signal Repository (DSR) helps CG manufacturers capture, manage, analyze and ultimately drive value from downstream demand dataOracle DSR leverages OBIEE to provide a powerful BI/reporting platform to analyze the external data, including a set of pre-built dashboards and reportsOracle DSR integrates aggregated demand data with Demantra and offers standards-based integration to other applications via AIA/Oracle SOA SuiteAverage OOS rate = ~8% (promotions and NPI = ~2x average)~72% of OOS are caused by store-related issuesAverage CPG company lost sales due to out of stocks = 2.5%A recent survey of 109 global retailers indicates that suppliers are performing “less than adequately” in key areas:Merchandising & category managementPromotional design & executionCustomer insight development
44 Convergence of Retail and Consumer Goods Mfg.RetailerTraditional View of RelationshipCGMfgRetailerSharedEmerging RelationshipAligned PrioritiesJointly managed store/SKU-level merchandise plansOptimized promotion & merchandising decisionsTotal supply chain logistics & transportation cost reductionItem & price data synchronized to reduce deductionsTransportation & LogisticsRetail ExecutionVendor Managed InventoryRetailer Facing ApplicationsCategory & Space PlanningDemand ManagementTrade Promotion Management
45 DSR Solution Capabilities CaptureAdaptors to capture a variety of data types and sourcesData cleansing tools to address data quality issuesExtensible, retailer-based data model to maintain external data at the store/SKU levelRoutines to to harmonize data across multiple data aggregation levels and hierarchiesManagePre-built category management, key account management and scorecarding dashboards and reportsFlexible, robust business intelligence and reporting capabilitiesAnalyzeRules-based exception management dashboardAutomated workflow to facilitate resolution of exceptionsUser-defined, event-based triggers to initiate transactions in external applications and enable “sense & respond” capabilitiesRespondPre-built integration with key Oracle applications such as Demantra, Siebel, Agile and G-LogPre-built SOA integration with other external applications via Oracle Application Integration ArchitectureIntegrate
46 Data Integration Today Downstream Demand DataTPMRetailer 1 POSCapture + CleanseTPORetailer 2 POSCapture + CleanseHigh latency of demand dataSignificant manual effort and costIncreased probability of inconsistencies across applicationsAPSIRICapture + CleanseS&OPCapture + CleanseACNDRPCapture + CleanseDistrib. 1SNODistrib. 2Capture + CleansePLMOtherCapture + CleanseData sources cleansed and managed independently
47 Data Integration With Oracle DSR Retail Store DataPOS salesPriceStore inventoryPromotional plansStore replen. rulesStore forecastsCaptureManageAnalyzeRespondOracle Demand Signal RepositoryIntegrateTPMMore timely data to better sense, shape and respond to demandReduced manual effort and costConsistent data more easily leveraged across teams and applicationsTPOAPSRetail DC/ Distributor DataDC shipmentsDC inventoryDC replen. rulesAggregated Demand Signals– SOA Messages –S&OPOther External DataDRPRetail loyaltyIRI/AC Nielsen3rd party demographicCausal (weather,etc.)RFID/EPCIMS, NDC, EDI (867, 852), Scripts, PedigreeUnstructured textSNOPLMData sources centrally cleansed, harmonized and aggregatedPre-built dashboards and reportsPowerful BI capabilities“Sense & Respond” event management
48 DSR Data Integration Scenarios “Consumer products companies that take responsibility for the supply chain all the way to the retail shelf can see a 2% to 15% improvement in sales”AMR Research, “Shouldn’t You Be Minding the Store?” (May 2007)
49 DSR Integration Scenario: Demand Management & S&OP More timely and accurate visibility to downstream demand signalsForecast based on store level visibilityAccurately predict demand based on store level visibilityForecast based on attribute-level granularity
50 DSR Integration Scenario: PLM and Innovation Improve both NPD and NPI capabilitiesImproved NPD by matching shopper and consumer insight to product attributes to enable attribute-based NPD and demand forecastingImproved NPI by providing more accurate visibility to channel inventory and event executionImproved PLM by providing more timely store/SKU level performance dataFasterCheaperBetter~10,700 new CPG products introduced~3% of food and beverage introductions and 1% of non-food introductions achieved $50M salesSource: IRI, “2006 New Product Pacesetters, New CPG Brand Leaders” (March 2007); McKinsey Quarterly, “Reinventing Innovation at Consumer Goods Companies” (November 2006)
51 Scorecard Dashboard Leverages New Ways of Working Together Pilot Monitor results vs. goals over timeDrill-down to view supporting dataView score by retailer and overall
52 Category Management Dashboard IllustrativeMultiple KPIs in a single dashboardTrack performance relative to pre-defined thresholdsDrill-down to view supporting dataAll reports viewable in retailer hierarchy or manufacturer hierarchyReports can be automatically delivered via MS Office tools
53 Example Category Management Reports Top Performers by SalesCategory Sales Value by Type
54 Manufacturing Operations Center Let’s start with executive level business scenario planning …
55 What is MOC..? Mfg Ops Center is the same as… Mfg Ops Center is not… Manufacturing HubManufacturing Data HubManufacturing Transaction HubEnterprise Manufacturing Intelligence (EMI)Operational IntelligenceShop Floor Integration SolutionReal-time IntelligenceMfg Ops Center is not…MESA Substitute for Corporate Business Intelligence (BI) solutionData Historian (OSI Pi, Wonderware….)Middleware55
56 Supply Chain Management Operational Challenges Zero Manufacturing Agility to Respond to Changing DemandReal-Time, Exception Prone Environment Dominated by Older Legacy SystemsMultiple Plants w/ Different SystemsFactoryAutomationHomegrown /3rd Party MESQuality/ SPCMaintenance/ ServiceMultiple Contract MfgrsCorporateCustomerRelationship MgmtSupply Chain ManagementBusinessIntelligenceEnterpriseResource PlanningRelatively Stable EnvironmentPlanning and Schedule-Driven Standard SystemsDisconnectedMultiple sources of truthPoor production performance visibilityKnowledge not shared across resourcesRigid, disconnected & disparate systems
57 A Need for Change Leading Business Trends Shift from Periodic Reporting to Real-Time Performance ManagementLeverage Consistent Performance Metrics Across the EnterprisePlan and Schedule to Realistic Equipment Capacity and Adjust Operations in Real-TimeUtilize an Enterprise Approach to Managing Manufacturing Operations Systems
58 Oracle Manufacturing Operations Center Automation & Process Control SystemsERP SystemsUsersPLCCNCMachinesDCSSCADA SystemsAdvancedProcessControlHumanMachineInterfaceMESQualityCost Mgmt…Manufacturing OperationsData ModelRole-BasedDashboardsContextual- izationEngineCorporate BICross-Plant KPIsHistorical TrendsPlant-Specific KPIsReal-Time UpdatesDevice-Generated DataProduction ActualsSchedulesItem Master DataProductionManagerPlant Mgr / VP of MfgShop Floor Communication DriversThe Foundation for Continuous Improvement in Manufacturing OperationsBridges the Gap Between Shop Floor & EnterpriseThe Hub is designed to aggregate real-time data directly from control systems such as PLCs, SCADA and DCS on the plant floor. The Hub would primarily utilize an OPC based connection to communicate with devices. To ensure coverage for different types of devices, we have partnered with Kepware Technologies. Kepware has built a large library of device drivers for various types of hardware found on the shop floor. In addition to their standard OPC Servers and Clients, Kepware would build additional capabilities such as Complex tags and would deliver tighter integration to Manufacturing Hub.However to really keep it open and flexible for customers, we would also deliver an API and interface table for customers that may want to build or utilize their own connectivity infrastructure on the shop floor.Error HandlingHub provides infrastructure to capture and process errors at every stage of data collection. In addition the OWB tool set provides customer to define their custom business rules to filter the data that gets into the Hub.
59 Oracle Manufacturing Operations Center Enables you to…Contextualize Plant Floor Data and Synchronize with ERPProvide Real-Time Intelligence for Plant OperationsLeverage Next Generation Manufacturing Operations ArchitectureCONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
60 Manufacturing Operations Single Repository for Mfg Operations Data Provide Consistent Information for All Manufacturing UsersManufacturing OperationsData ModelGranularityEnterprise LevelProductsOrdersPlans / SchedulesPlant LevelWork OrdersBatchesMfg RoutingEquipment LevelAvailabilityStatusOutputQualityParametersDevice LevelI/O TagsSensor IDGeneric data model supports hierarchical structure for reporting or building KPIs and metricsSupport for industry standards such as S-95Out-of-the-box hierarchical dimensions: time, product, and equipmentFlexible and configurableOpen and extensible to meet the requirements of different industriesCapture process variablesCapture additional parameters for Item, Equipment, and Work Orders3 key hierarchical dimensions Time (Calendar), Product and Equipment are delivered by the Manufacturing Operations Center out-of the box. For each of the dimension customer can build more than 1 hierarchy to analyze data. These hierarchies are flexible and multi-level with options to build custom defined hierarchies.
61 Shop Floor Communication Drivers Integration with Manufacturing Equipment and Distributed Plant Systems Gather High Resolution Data Directly from SourcePLCCNCMachinesDCSSCADA SystemsAdvancedProcessControlHumanMachineInterfaceMfg Operations CtrError HandlingOPC ServersMESShop Floor Communication DriversAdaptersOther Connectors3rd Party OPC ClientSupport adapters for 3rd party systems, like data historiansBuild additional adapters using Fusion MiddlewareTag data mappingData filtering rules engineCapture and process errors at every stage of data collectionSupport broad range of devicesDevice ConnectivityManufacturing Operations Center is designed to aggregate real-time data directly from control systems such as PLCs, SCADA and DCS on the plant floor. It would primarily utilize an OPC based connection to communicate with devices. To ensure coverage for different types of devices, we have partnered with Kepware Technologies. Kepware has built a large library of device drivers for various types of hardware found on the shop floor. In addition to their standard OPC Servers and Clients, Kepware would build additional capabilities such as Complex tags and would deliver tighter integration to Manufacturing Operations Center.However to really keep it open and flexible for customers, we would also deliver an API and interface table for customers that may want to build or utilize their own connectivity infrastructure on the shop floor.Error HandlingManufacturing Operations Center provides infrastructure to capture and process errors at every stage of data collection. In addition the OWB tool set provides customer to define their custom business rules to filter the data that gets into Manufacturing Operations Center .
62 Integration with ERP Enable Seamless Information Flow Leverage…Metadata-driven integration to Oracle EBSFusion Middleware for SOA-based integration with other ERPOracle EBS Discrete Mfg or Other ERPShop floor transactionsERP AdaptorMaster data, plans, and schedulesMfg Operations CenterSimplify integration to ERP -- rely on Manufacturing Operations Center for data cleansing, error handing, etc.Reduce the cost of ERP integration -- eliminate one-to-one integrations
63 Automation & Process Control Systems Shop Floor Data Contextualization Convert Raw Data into Useful Business InformationAutomation & Process Control SystemsTransformBusiness EventsBuildContextAnalyzable BusinessDataPLCDCSSCADA…Intelligence SystemsCorporate BIOps Center DashboardsBusiness Context DataERP SystemsCRMSCMERPHigh ResolutionTag DataDefine data transformation rulesRules by tag typeBusiness-oriented aliases for tagsAdditional tag attributes like rollover valuesUse pre-built rules or create new rulesApply context to time series dataWork OrderWO SegmentApply out-of-the-box rules or define new rulesProductShift
64 Oracle Manufacturing Operations Center Enables you to…Contextualize Plant Floor Data and Synchronize with ERPProvide Real-Time Intelligence for Plant OperationsLeverage Next Generation Manufacturing Operations ArchitectureCONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
65 Role-Based Dashboards and KPIs Deliver Performance Measures by Responsibility VP of OperationsPlant ManagerPre-built role-specific dashboards, reports, and alertsGraphical viewsTrend chartsGraphsTablesEmbedded best-practice calculations and KPIsAnalytic workflows to drive actionsDrill-downs into details for root-cause analysisLeverages OBIEE+Configurable and customizableAre we achieving our cost and productivity targets?Red-yellow-green indicatorsProduction ManagerProduction SupervisorWhat is happening now?What happened last shift?OperatorQA EngineerHow is the machine performing?
66 Extensible Analytical Engine and Dashboarding Tool Build a Decision Support System Unique to Your EnvironmentAccelerate deployment and adoptionEasily adapt dashboards and metricsProvides a comprehensive Operational Intelligence frameworkMost standard KPIs available out-of-the-boxEasily identify, select, modify, and format relevant KPIs
67 Production Manager Dashboard Line-Level Status Click to view alert detailsDelivered Via BAM Active Viewer
68 Production Throughput Analysis Track Production and Identify Potential Bottlenecks Supervisors,Line ManagersTrack against targets for shift, day, week, or monthMonitor backlogs by individual equipmentDetermine equipment statusVisual cues quickly indicate production statusPlant Managers, VP of ManufacturingClick to view alert detailsView throughput by product, plant, line, and equipmentAnalyze monthly trends to ensure aggregate performanceMonitor production volumes & throughput from anywhere in the enterprise
69 Oracle Manufacturing Operations Center Enables you to…Contextualize Plant Floor Data and Synchronize with ERPProvide Real-Time Intelligence for Plant OperationsLeverage Next Generation Manufacturing Operations ArchitectureCONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
70 What is Next-Generation Manufacturing Operations Architecture? Next-Generation ArchitectureAbstractionLayerERPDistributed Plant SystemsAutomation & ControlMfg Operations CtrBuilt on a common abstraction layer of production / equipment dataLeverage existing investments in plant IT infrastructure – no rip & replaceAllows for gradual upgrade of plant systems“It is often more expedient to install an abstraction layer built on a plant-level data store than to reengineer the plethora of existing applications to achieve normalization. We see this approach rapidly emerging as a best practice.” Alison Smith, February 2008
71 Oracle Manufacturing Operations Center Contextualize Plant Floor Data and Synchronize with ERPConsistent mfg information for all usersConvert equipment data into useful business infoEnsure rapid response to manufacturing issuesProvide Real-Time Intelligence for Plant OperationsDeliver performance metrics & trends by roleEasily build dashboards to your unique needsIdentify performance improvement opportunitiesLeverage Next Generation Manufacturing Operations ArchitectureLeverage existing plant IT infrastructureEnable gradual upgrade of plant systemsSimplify IT support for your core mfg strategyThe Foundation for Continuous Improvement in Manufacturing Operations
72 Bring up on stage two customers to tell the audience about their experiences. Manpower Associates is a $14.9B global company with 27,000 employees in the temporary staffing business. Manpower runs a combined PeopleSoft Enterprise and JD Edwards EnterpriseOne shop. These experts in human resources use Enterprise HCM for their own staffing and EnterpriseOne Payroll and Service Billing for handling the large volumes of US-based temporary staff. Manpower is very happy with Oracle’s support since purchasing PeopleSoft and is looking forward to a long relationship with Oracle.Spokesperson will be Jay Schaudies, Vice President, Global eCommerce.Welch Foods is the food processing and marketing arm of National Grape Cooperative Association. Organized in 1945, National Grape is a grower-owned agricultural cooperative with 1,461 members. The company, headquartered in Concord, Massachusetts, operates six plants located in Michigan, New York, Pennsylvania and Washington. The company was running a mix of legacy, home grown, and manual systems that failed to provide senior management with accurate and timely cost and production information. Welch’s required a centralized manufacturing and financial information system to improve management decision making. The solution had to be hot-pluggable with existing technologies, for example, Welch’s Plumtree portal.Welch Foods chose Oracle over SAP for this business-critical application. The key to the customer’s business problem was their ability to manage costs. The company’s costs are driven by fruit solid content in each of their products, and they use a specialized technique called BRIX for measuring and calculating the cost of materials. Welch’s compared SAP and Oracle SAP’s software was too rigid and, therefore, unable to include the BRIX calculation in their manufacturing solution. Only Oracle’s OPM could bind this custom cost method into the Quality Management Process.Technology customer yet to be determined. Current possibilities include eBay and FTD Florists.