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What’s New What’s Coming

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2 What’s New What’s Coming
Oracle Process Manufacturing TO DO : Update the titles Create an image with Oracle , USDP and Paramount pictures Abhay Satpute, Sr. Director, Oracle Srinivas Puri, Group Manager, Oracle Joan Stevens, Director IT, USDP Dhruba Misra , Oracle Analyst, Paramount Citrus Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

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4 Program Agenda 1 Introduction and What’s New Paramount Citrus – Integrating OPM with MES USDP – OPM Quality Sampling & Sequence Dependency What’s Coming Q & A 2 3 4 5

5 Program Agenda with Highlight
1 Introduction & What’s New Paramount Citrus – Integrating OPM USDP – OPM Quality , Sampling & Sequence Dependency What’s Coming ….. Q & A 2 3 4 5

6 Oracle Process Manufacturing
R12 & beyond: Outside Processing In Memory Yield & Quality Mobile Apps & Table to Tablet Your feedback (Ideation) From : 11i OPM Automated Migration Simplified Maintenance Seamless Flows Migration Made Easy : we have continued to review and help migrating customers ! Huge investment for helping customers upgrade Maintenance Made easy : Online Patching and Roll Up patches

7 Our Investments for Modern Manufacturing
Profitable Operations Transformative Insight 1 2 Period Close Endeca Transaction Account Register Endeca MES for Process Costing enhancements In-Memory Cost Management Profitable Operations : Getting the appropriate information, quickly and at the right time enables manufacturers to optimize their operations Collaboration : Capturing, collaborating and executing on innovations—big or small—can create competitive advantage Ensure Quality: Leading manufacturers strive to achieve the highest quality and compliance across their extended value chains Transformative Insight: Information accessibility can transform factory workers into knowledge workers with actionable insights Manufacturing 4 3 Collaboration Ensure Quality Open Interfaces Mobile Application Sampling for material moves Quality Endeca Oracle Open World 2014

8 Manufacturing Execution System
Profitable Operations Through Improved Operator Productivity Productivity Improvements Step Release and Complete using operator WB Auto Commit for Process Instructions Enhanced Navigation through PI Batch record continuity from Planning to execution Process Instruction support for Ad-hoc Operations Public APIs for MES setup BENEFITS Improve productivity of shop floor operators Increased compliance through standardization

9 Manufacturing Execution System
Touch Screen Enhancements Step Actions on Operator Workbench Auto Commit for Process Instructions Enhanced Navigation for Process Instructions Retain page display <Product Name> <TOI Functional> - 9

10 Manufacturing Execution System
Support for in-process controls for Ad-hoc operation <Product Name> <TOI Functional> - 10

11 Manufacturing Execution System
Extended support for Batch Record Create Batch Reschedule Cancel <Product Name> <TOI Functional> - 11

12 Costing and Accounting
OPM Financial Enhancements Parallel Processing Mode OPM Accounting Pre-Processor Wrapper OPM Cost Update 64 bit executables for Costing Engines Cost Update Process and Accounting Pre-Processor Options to reduce accounting lines Option to Post Journals at Item Cost or Component Cost Ignore zero amount batch variance accounting lines in OPM Pre Processor Ignore zero amount cost revaluation accounting lines in OPM Pre Processor Support for large data-sets in cost rollup Period Close Enhancements

13 Oracle In-Memory Cost Management
Real-time Cost Management for Process Industries Cost Impact Simulator and Timely analyses of impact of cost changes Accurately simulate inventory valuations, and impact to margins and profits Gross Profit Analyzer Obtain the most profitable product mix Identify optimal pricing for finished goods Cost Comparison Tool Process and visualize large volumes of data in near real-time Identify the most profitable cost structures Oracle In-Memory Cost Management ("IMCM") provides a new paradigm of near real-time analyses by bringing formerly disparate or even manual assessments together in a unified, automated, extremely fast flow. IMCM is the next step in Oracle's evolution of building better, faster, more focused cost management applications. Existing tools have not kept up with the exploding volumes of costing data across global manufacturing operations and their various supply chains. Oracle IMCM provides a robust set of features that obviate the need for long wait times while batch processes run for hours or days against huge data sets. In contrast, Oracle IMCM runs efficiently in near real-time against vast quantities of data and comes pre-built with critical analytical features including Oracle's Cost Impact Simulator, Gross Profit Analyzer, and Cost Comparison Tool High Performance In-Memory Cost Management Applications

14 Transformative Insights with Endeca
OPM Costing and Accounting Effectively manage period close process Quickly identify and correct supply chain transactions that are delaying period close Analyze root cause of bottleneck transactions and initiate corrective measures Ensure accuracy of accounting transactions across sub ledgers Reconcile accounting transactions posted across multiple sub ledgers to identify discrepancies Review all accounting entries in the context of any business document before GL posting

15 Ensuring Quality Quality visibility through Endeca
Automated Sampling for Material Movements Improvements to COA Report Improvements to OPM Quality to Lot Genealogy Period Close Enhancements

16 OPM Quality Extensions for Endeca
Solution Overview Key Features Sample dispositions across plants Quality Metrics Sample Delays and Tests Due Expiring Samples Out of Spec Actions as Tag Cloud Quality issues from Inventory Quality Issue with Production Quality Issues from Suppliers Alerts……… 1 2 Sample Dispositions Lab Management Oracle Process Manufacturing Extensions for Oracle Endeca Main Point 3 4 Quality Issues across sample sources Test Analysis

17 OPM Quality Extensions for Endeca
Improve the efficiency of quality lab operations Identify priority of samples to be tested and manage the load Insight into Sample Delays and Tests due Meet manufacturing quality standards and reduce business risk Find and resolve quality rejections as they arise Prevent costly recalls and save company reputation Increase manufacturing yield and reduce cost Establish early control on manufacturing quality deviations Insight into quality issues across Orgs and sample sources

18 Collaborating With Outside Manufacturers and Other Software
Batch Open Interface Easily load OPM Batches from outside sources Batch header Import Interface Batch Actions Interface Resource Transactions Interface Purge Import Interface UI For Error Management <Product Name> <TOI Functional> - 18

19 Prepared by Dhruba Misra
Paramount citrus llc. Oracle Open World Oct 1, 2014 Prepared by Dhruba Misra

20 Paramount Citrus is a part of the Roll Global Companies
Roll Global LLC is comprised of multiple businesses owned by Stewart and Lynda Resnick. Started by Mr. Resnick 40 years ago, Roll Global has over four billion in assets, over two billion in revenue, employees (worldwide) and is headquartered in Los Angeles. The agricultural businesses are the largest farming operation in North America. Largest floral wire service company in the world Largest integrated grower, packer, and marketer of fresh citrus products in North America Largest imported bottled water company in the United States Largest processor and marketer of pistachios and almonds in the world Headquartered in Sydney, Australia and provides shipping services connecting the South Pacific islands to the world Largest grower of almonds, pistachios, and pomegranates in the world New Zealand’s premier Artesian bottled water company Largest processor and seller of fresh pomegranates, pomegranate beverages, and related products in the world In the heart of Sonoma Valley wine country, Landmark practices the centuries old tradition of handcrafted wines. Leading technology company specialized in controlled release, pheromone-based products for pest control Award-winning winery in the Paso Robles appellation in California 20 This is one of North America's largest grapevine nurseries offering rootstocks, grafted grapevines, clones and more.

21 Our Products

22 Farming and Growing Citrus Varieties Packing of the Harvested crops
What Do We Do? Farming and Growing Citrus Varieties Packing of the Harvested crops Shipping and Delivery of Packed Fruits Research and Innovation in Farming, Packing logistics Locations Headquarters: Delano, CA (Central Valley) Offices in Texas, Mexico, California & DCs in Chicago and Albany Facts and Figures 30 million cartons of Fruits shipped worldwide with 30% exports California packing facilities together range more than 1 mil sq ft 400 million pounds of Mandarins packed Wonderful Halos being one of the most popular brands Green Stats • 50% of required energy is from green sources • 2.7MW solar plant – largest commercially owned solar rooftop • 1.6MW fuel cell

23 Oracle @Paramount Citrus
Oracle Implementation Timeline Oracle Application version upgraded on Aug 2011 WMS implemented entirely on Mandarin Plant on Oct 2012 WMS Implemented for Finished Goods on Orange/Lemon plant on Sep 2013 Oracle implementation in Texas facilities on Oct 2013 WMS implemented completely in Orange/Lemon plant on Sep 2014 Versions Database: 11g Enterprise Edition Release bit Production Oracle Applications :

24 Business Process Mapped in Manufacturing
Receiving Fruit from Field Storage & De-greening Manual Pick For Pre-Grade Pre-Grade WIP Operation Pack WIP Directed Put away Of Pallets Directed Put away of Sorted Bins WIP Storage Directed Pick For Pack batch Cold Storage Directed Pick Of Pallets Shipping of Sales order Dry Goods Receive & Storage Manual Dry Goods Move to Batch

25 Process

26 MES Process – WIP Issue and Completion
Flow Chart of Interface Local Cell Central Cell Custom Interface Oracle Conc. Programs PS WIP Issue / Completion

27 MES Process – WIP Issue and Completion
Packout WIP Issue is driven by directed pick From the legacy MES, the directed tasks (slotting tasks) are generated LTO scans the equipment for the relevant line, accepts the task and then drops (scans) to the line Flow Chart of Directed Tasks Pick Strategy MES pre-releases batch Oracle program plans and provides available item and quantity based on criteria Directed Pick Tasks are generated Move Order Pick Slip is submitted Oracle program creates Move Orders for requisite criteria MES releases the planned Item and quantity LTO scans the Equipment which is equivalent to line Accepts directed Task, scans bin and drops to line Task Completed Oracle program cancels previous batch’s pending tasks

28 Business Benefits Inventory Accuracy
>> Space utilization increased by 10% Faster Turn Around >> With the high volume of the product (Halos) an effective handshaking needed between MES and ERP Maintain low product aging >> From 85% to 95+% FIFO compliant Speedy Order Fulfillment >> From 4 hours to 90 min of truck turn-around & each pallet taking 2 min Effective inventory management >> From manual consolidation to automated. Better QC Effective use of Forklift fleet >> Reduced labor hours for monthly physicals vs weekly in pre-WMS

29 Challenges Faced Need of more rigor and discipline from operations
Transfers of products between WMS and non-WMS orgs Hybrid WMS system in a warehouse before full WMS Issues with LOT to LPN and LPN to LOT conversions Lot Substitution requirement (resolved by Patch :R12.WMS.B)

30 Future Plans Full blown Texas WMS Implementation
Oracle Implementation in Chicago DC

31 Questions

32 Joan Stevens Director, Information Technology

33 Company Structure Phillips Products Company Distiller Sales Products
United States Distilled Products USDP International United States Distilled Products Company (USDP) began bottling alcoholic beverages in 1981 as a small bottling operation with the objective of producing regional brands for markets in the Midwest. Since its inception USDP has grown to become a leading bottler developing a reputation as a company that is focused on service and quality. USDP holds itself to the highest standards of quality and customer satisfaction is always our number one objective. USDP produces and does contract bottling and distributes them throughout the United States. Our fine line of Cordial, Spirit, and Crème products are produced to a standard of quality and taste second to none in the industry. International Sales & Distribution Consumer Brands Corporate Brands Manufacturing & Logistics

34 Sample of products produced
Contract Brands Phillips Distilling Company – Over 100 years of history behind this business unit. UV Blue Raspberry has been the largest selling flavored vodka and was one of the first 4 introduced in the market and is largest selling brand for Phillips. In addition to the products listed they also import tequila and scotch. This business unit is responsible for brand image, marketing and sales of the products. Contracts brands are products we don’t own the trade mark or brand name, but usually own the formula. We manufacturing the product and the contract company is responsible for brand image, marketing and sales of product Distiller Sales is the private label section of our business to give more gross margin to the retailer. The retailer is responsible for sales and marketing of their products.

35 800,000 sq. ft. of facilities in Minnesota, USA 8 Million Cases
processed in 2013 In the past 5 years we have added on 400,000 sq feet of warehouse to accommodate our growth, in addition to increasing the amount of automation to the production lines to increase our efficiencies in producing our products. Examples of automation include: more palletizers, newer lines, robot for placing bottles on the line, vision system for quality checks and robots for palletizing product for 3 lines. We recently replaced our 50ml line with a high speed line that can produce 500 bottles per minute and it will be the fastest line we own.

36 Transformation Story Custom ERP/AR created over 20 years
Financials in JD Edwards Data reported out of custom ERP/AR and rekeyed into JD Edwards Challenges faced with replacing custom ERP system with Oracle EBS Regulations around the production/shipping of spirits Calculating and report of taxes Scheduling products based on color, flavor, bottle type Using company knowledge to determine potential forecasts for production Regulations All loses/gains must be tracked and reported to the government for tax purposes. From the time we receive a bulk spirit to the time is leaves for a customer we have to track this and pay taxes on it. Production must be entered the day it is produced Must ship FIFO, but use FEFO in Oracle eBusiness Suite to accomplish this due to lot tracking being used Lot traceability and co-mingling of bulk materials that needs to be tracked and reported on UOM conversions between pounds, wine gallons and proof gallons This impacts purchasing products to producing to reporting Government Label approvals must be obtained for our items and formulas before we can produce a product Taxes - Each lot has its own conversion rate that impacts how taxes are calculated each time a product is produced and each batch must be assigned its own tax rate. When the product is shipped each case has a unique tax amount we need to pay Co-mingling of products to create new lots so taxes can be calculated correctly Scheduling Needs to handle both the intermediate, FG and Bottle Blowing item types. Intermediates are the liquid and FG are the cases produced and Bottle Blowing are plastic bottles we produce to use in our FG cases (1.75 liter is all we produce at this time) Using EBS process manufacturing to accommodate both discrete and process manufacturing methods for producing our products Forecasts - Historically handled by the planning team in the old system and when moved to EBS had to continue this until Demantra was brought in

37 Transformation Timeline
Aug 2009 Oracle EBS v12.1.1: Financials/iExpense Apr 2011 Oracle EBS v12.1.1: Oracle Process Manufacturing, Mobile Supply Chain Applications, Purchasing, iProcurement, Order Management, Oracle Advanced Supply Chain Planning (ASCP) – Unconstrained Planning May 2012 Oracle Demantra Demand Management v7.3.1 & ASCP Constrained planning project Initiation Nov 2012 ASCP Constrained EDD (Enforced Due Date) planning (EBS v12.1.3) Explored set up of sequence dependencies for ASCP in development Jan 2013 Launched Demantra and Sales, Operations & Planning (S&OP) process Sept 2013 Forecast tuning of Demantra initiated May 2014 Re-launched Demantra with significant process changes, additional tuning, changes in worksheets, etc. Nov 2014 Convert servers to Oracle Virtual (OVM)

38 OOTB OPM Capabilities Automatic creation of Quality Samples
Explored Sequence Dependencies Setup Detailed Routes and Operations to more generic leveraging recipe over-rides for resources Personalization's on batches to control aspects of the batch Lot number controls, reservation warnings, functional restrictions using custom responsibilities Exploring exception codes to control ASCP planning for specific dates and resources. We call it “Block Scheduling” and resources are bottle types Adding routes for all batch types instead of using lead times on the item. This will allow us to move costs from over head to the item using PMAC The following slides will provide an overview of some of these capabilities

39 Auto Sample/Lot Status Overview
System Set-up Inventory OPM Quality Enable Lot Status Tests - Specifications - Validity Rules Production Operations Business Event Triggers Customers must activate event(s) based on their business reqmts. This is an overview of the standard process for automating sample creation and lot status updates within OPM Quality leveraging AME. Business Events are available at various points in the production process that can be enabled based on the customer’s business requirements (e.g. – Batch Step Completion, Batch WIP Completion, etc). Standard workflow processes are available to handle the business events but they must be enabled and a workflow subscription must be created or enabled to attach them to the desired business event. Notification Routing Workflow Approvals Management Engine Sample Creation & Notification Lot Status Updates Test Results Entry

40 USDP Customization System Set-up Enable Lot Status
Inventory OPM Quality Enable Lot Status Tests - Specifications - Validity Rules Production Operations Business Event Triggers oracle.apps.gmi.inventory.created event raised by WIP Completion Based on our companies requirements, we customized the process to skip AME and leverage HR Global Roles with a custom workflow. We used the event, oracle.apps.gmi.inventory.created, which was not the documented event for a WIP Completion (another event was referenced in the Quality Implementation Guide). Searches of the available business events in the workflow admin responsibility gave us the one that actually worked for us. The tax determination is also a custom report that is run based on the results of one of the tests. The next several slides go over the details of where some of the setups are needed to use OPM Quality. Notification Routing HR Global Roles Custom Workflow Approvals Management Engine Sample Creation & Notification Lot Status Updates Test Results Entry Tax Determination

41 Sequence Dependencies
Background: Initially implemented EBS using ASCP Unconstrained planning Planners relied heavily on spreadsheet and internal knowledge to create a schedule Schedule is based on a bottle rotation For ex. A bottle change is needed because of a change in the liquor going into a bottle (line change) or because the bottle itself changes (rotations). The key expectations were – Reduce capacity lost due to changeovers Maximize on time demand satisfaction Better/Optimal scheduling Explored: Use of Enforced Capacity Constraint (ECC) plan leveraging SDS USDP was operating in an unconstrained planning environment and the planners relied heavily on the use of excel spreadsheets to manage their bottle rotation and line changes which was one of their key pain points. Bottle Rotation at USDP means moving from a particular bottle type to another bottle type which causes downtime on the line. The change in rotation/line change is driven by multiple factors. For ex. A bottle change could be because of a change in the liquor going into a bottle (line change) or because the bottle itself changes (rotations). USDP decided to move to constrained planning and utilize the capabilities of ASCP to leverage sequence dependent setups to model the bottle rotation in the system to ensure the recommendations would more closely match what the schedule should be.

42 Sequence Dependencies
Discovered: Set up of matrix for the routes and operations was complex because of how we initially set them up USDP couldn’t accept the plan batch dates that SDS was recommending because of our requirement for bottle rotations Current state: Kept all documentation related to setting up SDS Using enforced due date (EDD) plan Created generic routes to simplify setting up SDS in the future Exploring exception codes to control ASCP planning for specific dates and resources. We call it “Block Scheduling” and resources are bottle types. Combining this with SDS should give us optimal bottle rotation plan

43 Generic Routes/Operations
Background: Planning is based on the number of bottles per minute (BPM) that we can complete for Finished Goods (FG) Many different factors go into determining the BPM: For example, some of the liquids need to have different BPM’s even if it is going into the same bottle type on the same line as another product, label application on the bottle impacts speed, etc Each line has a maximum capacity of the number of bottles it can fill per minute Some products can run on a secondary line if needed Initially implemented one or more routes and operations per FG item produced Current state: After exploring SDS determined we needed to make our routes Found that recipe over rides for resources would allow us to control the BPM for a specific item to accommodate the factors identified above This produces a better plan recommendations with less maintenance

44 Block Scheduling Background: Current state:
Make to stock organization based on forecasts from Demantra and order demand We minimize the number of line changes for a bottle by following a specific rotation of bottle types every X number of weeks Evaluating the capability of leveraging Exception Codes and date ranges to create this rotation within planning Current state: Still in the process of evaluating, but initial test are extremely positive this will meet our needs. Once this is implemented, we will look at SDS again to see if it can improve upon this even more

45 Future Feb 2015 Upgrade to 2015 Leverage Quality Module more than it is today for other departments Apr 2015 Implement analytics: Financials, Supply Chain, Manufacturing and Procurement/Spend 2016 Upgrade to 12.2

46 Questions? Contact information: Joan Stevens

47 Oracle E-Business Suite – Strategy and Roadmap
Applications Unlimited - Continuing Innovation x.y Sep’13 Dec’13 Aug’14 May’09 Dec’09 Aug’10 Jan’07 Dec’08 User Experience Innovation Functional Innovation Operational Efficiency Ongoing Investment Priorities New Releases For & 12.2+ EBS Extensions for Oracle Endeca Smartphone Applications In-Memory Applications

48 Mobile Process Production Supervisor
Monitor Batches and Take Action Search Batches or barcode scan to view them View batches and steps detail Perform batch actions like release, complete View material issue and resource detail Manage exceptions like unallocated ingredients, expiring lots Collaborate in context using device features Perform batch actions like release, complete, reschedule, cancel, terminate Batch Infotile

49 Mobile Process Production Supervisor
Easily view batches progress and exceptions Search or barcode scan batches Check the batch details Quickly take action on the batch

50 E-Business Suite Outsourced Manufacturing Solutions
Comprehensive Support for Multi-Tiered, Mixed-Mode Outsourcing OEM RMS B C MP Chargeable Subcontracting (Shikyu) Buy Components Virtual Sale of Components Virtual Buy of Assembly A Drop Ship Components Buy/Sell Subcontracting Sell Components (with Markup) Buy Assembly Non-Chargeable Subcontracting Ship Components Receive Assembly Operation Step Level Outsourcing Process In-house Process Outside Manufacture Assembly Ship PFA Receive PFA 10 20 30 Process OPM Approach: V1 : Outsourcing at Operation / Step Level

51 System Flow Diagram for OSP
Create OSP Item, Resource, & Batch Step Create and Release PO Line Create Purchase Requisition Complete Batch Step OPM Procurement Release Batch Step requiring OSP OPM Procurement Supports outsourcing of service, where material shipment tracking is not required. Creation of Purchase Requisition allows cross referencing the Batch Step Number. PO Line is Batch Step Number aware at all times, as it is created from the same Purchase Requisition. Batch Step can be queried at any time to inquire about receipt of PO Line.

52 OPM – Outside Processing : Setups
OSP Item Generic Resource Plant Resource Batch Parameters Sourcing Rules <Product Name> <TOI Functional> - 52

53 OPM – Outside Processing
Key Features – V1 Automatic or Manual creation of Purchase Requisitions/Purchase Orders at various batch/step stages To identify the step for outside processing and payment of services according to either number of units/products or resource usage hours Synchronization of Batch and Purchase Order Changes Batch quantity and date changes to be propagated to PO Costing of the OSP resources either at Standard Cost or PO price OPM Outside Processing Report to view various batches with OSP steps and corresponding PO details Quality inspections for Outside Processing Oracle Confidential – Internal/Restricted/Highly Restricted

54 OPM – Outside Processing
Features for V2 Material Shipment and Shipment Document Ability to open PO from Batch Detail Window Partial Material Shipment Ability to track the delay in procuring/receiving the OSP Automate the manual creation of PO through Concurrent Program Workflow Notifications Multiple Outside Processing Steps per Batch Endeca Extension Oracle Confidential – Internal/Restricted/Highly Restricted

55 What’s Coming … Continued
Your Inputs Data Master Execution Process Parameter entry and visibility Material transaction subinventory rules and backflushing Quality Quality Specifications for Item category , Organization striping & security Touch and Tablet friendly Quality Transaction UI Mass Search & Replace Simulator / Optimizer computation fine tuning Oracle Confidential – Internal/Restricted/Highly Restricted

56 Analyzing Manufacturing Yield & Quality
Information architecture for quality Expanded data processing capabilities Comprehensive, scalable, and flexible data models and metadata Modular capabilities supporting rapid evolution and test and learn processes Data acquisition, streaming, filtering, alerting, exception processing, workflow Interoperability across different data management and analytic technologies Improved analytical capabilities Optimized infrastructure Cost effective and optimized storage (NoSQL, HDFS, relational) for all data: structured, unstructured, parametric, non-parametric. Scalable hardware infrastructure In-Memory database and technologies Data discovery, mining, visualization and predictive analytics tools for your manufacturing issues High interactivity user interface and workflows tailored to data scientists and business users

57 Oracle In-Memory Yield Management
Maximize yields, Optimize Quality Yield, Cost and Defect Monitoring Timely tracking and analysis of detailed operation yield, yield costs, variances, and defects as the product undergoes transformation through the various stages of manufacturing Statistical Quality Analysis Monitoring key manufacturing process parameters to enable timely correction to the process and perform rapid root cause analysis of defects, scrap, rejects and rework Genealogy Traceability End-to-end tracking and analysis of material composition, test results, and process undertaken at every step of the manufacturing process to allow complete traceability of a partially or completely finished product Advanced Analytics Analyze manufacturing big data from the shop floor and correlate event streams across multiple sources to detect patterns and predict potential options to maximize yields, minimize defects, alert downstream risks and suggest corrective actions Comparative Analysis & Simulations Easily compare current and historical manufacturing, quality, and process parameters across products, production lines, and manufacturing/test locations. Visualize similarities and differences in a simple and intuitive manner. Oracle Open World 2014

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