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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Optimize Disposition Costs and Reduce cost of Product changes in your PLM Satya Ravada Govinda Krishnan January 21, 2009
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Agenda Problem Definition Introducing ECO Lens - Goals and Business Value ECO Lens Technical Overview Demo –Screen Shots ECOLens - Accolades Q&A
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Problem Definition
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. The Problem Defined ECOs created and released in PLM system ECOs implemented in ERP system Disconnect between Engineering and Manufacturing Create Change Order Submit to Change Analyst Route to CCB Approve Release Change Order Implement Change Order Impact on BOM ManufacturingAgile PLM Impact on Demand
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Challenges of ECO Implementation Lack of Visibility into impact of ECOs on manufacturing Cost of Material Disposition (Scrap, Rework etc) Supplier liability / cancellation costs Collaboration challenges Distributed manufacturing across multiple sites Outsourced manufacturing with various subcontractors Material Disposition Challenges Coordinating material disposition Benchmarking, analysis and optimization Impact of ECOs Downward spike in demand of items Inventory may be hedged to high levels Open orders need to be cancelled Quantities at subcontractors need to be disposed
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Demand Impact of ECOs On-hand + On order Quantity Demand ECO Implementation Demand Use-up Excess ECO Implementation Use-up Excess
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. On-hand + On order Quantity ECO Implementation Use-up Excess Impact of ECOs
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Introducing ECOLens – Goals and Business Values
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Goals Minimize excess inventory & obsolescence cost Reduce ECO implementation cycle time Identify and mitigate risks associated with ECOs and product transitions Facilitate faster analysis and effective decisions by CCB
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. ECO Lens Assess ECO Impact Create ECO Implementation Scenarios Determine Effectivity Date Resolve Conflicts Generate Transition Plan ECO Information Inventory Data WIP Data PO Data MRP Data from ASCP/ MRP planning Effectivity date Material Disposition Transition Plan 1 2 Create ECO Submit To Analyst CCB Approve Release ECO Agile Product Collaboration Implement ECO Adjust Mfg Plans ERP 3 1 Business Process with ECO Lens
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Extract and make ECOs available for analysis Focus on specific ECO Lines (Affected Items) Filter out ECOs with a specific Reason Code Filter out ECO Lines with a specific lifecycle phase such as Prototype Filter out ECO lines releasing new items Extract ERP Data Specific Item Attributes such as Standard Cost, Planner, Buyer etc. Inventory Data such as “On Hand” by Site/Warehouse Purchasing Data such as Open POs, PO details WIP Data such as open work orders MRP Data such as Planned Orders, Gross requirements etc. Where-used data Business Process with ECO Lens
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Monitoring by ECO Lens ECO updates, inside Agile, before release Status updates Addition/deletion of ECO Lines Change in ECO Line status, inside Oracle, after release Specific ECO Line being implemented ECO being implemented Significant change in Total Disposition Cost Change in Supply/Demand Scenario Significant change in Effectivity date Any new ECO Conflict due to latest MRP run Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent.
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Business Value Achieve at-least 10% reduction in annual Excess & Obsolescence cost Reduce clutter – organize business processes; improve efficiency and ECO turnaround time Identify and better plan for product transitions that cost huge amount of money Better coordination of various sections of supply chain for purposes of material disposition after ECO release Facilitate faster and more informed decisions by CCB Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent.
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ECO Lens in a Nutshell Highly configurable browser-based application Deploys without production downtime Pulls ECOs from Agile and Supply/Demand information from ERP systems like Oracle Apps Ability to import supply/demand data retrieved from other ERP systems or from subcontractors in text files Supports multiple organizations Creates default optimization scenarios Provision to create what-if scenarios and refine existing scenarios Manipulate material disposition at a granular level Considers the demand and supply for both MRP and ASCP planning
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. ECO Lens Technical Overview
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. 16 ECO Lens Architecture Background Interface Process ECO Lens Repository AgilePLMRepositoryOracleERPRepository ECO Lens Engine (Java) ECO Lens GUI (JSP) Cost Analysis External Flat File import (Demand / Supply) Scheduling import to ECO Lens Fetching PLAN / WIP/ INV / PO / Cost Pending ECO Release ECO
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ECO Lens Supported Versions Supported Versions Oracle Apps : 11.5.5, 11.5.10 or higher Agile PLM : 8.5, 9.0, 9.2.0,9.2.2.x Java : JDK 1.4.2 Web Server : Tomcat 5.0 Latest released version of ECO Lens ECO Lens for MRP 2.5 ECO Lens for ASCP 2.6
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Demo - Screen Shots
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ECO Details in Agile PLM Invoke ECO Lens from Agile PLM
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ECO Details in ECO Lens
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View BOM Changes: Red lining by Item
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View BOM Changes: Red lining by Quantity
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Implementation options for generating scenarios in ECO Lens
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Supply details from ERP
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Rework cost can be given
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Implementation Scenarios at a glance: effectivity date vs cost
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System generated dispositions
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Ability to override suggested recommendation for each item
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Supply Data from ERP Demand Data from ERP
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Reports for analyzing the disposition cost on daily/weekly/monthly basis
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Total Cost Impact Cost Breakdown Action Items for Buyers, Planners etc.
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Transfer ECO analysis back to Agile PLM
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Analysis summary ( Transition plan) to be transferred to Agile PLM
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Agile PLM: Copy of Transition Plan attached to the ECO
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Agile PLM: Selected scenario’s effectivity date automatically populated on the ECO Line
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. ECOLens - Accolades
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Real value – Ask Market Experts Oracle Partner Solution of the Year - 2004 Nasscom has recognized ECO Lens under its TOP 100 IT Innovators List
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Real Results – Ask Finisar “ECO Lens recovered its cost many times over in terms of reduced E&O inventory within the first few weeks after deployment. The instant availability of the cost-impact of ECOs is a priceless resource for both engineers and materials personnel to gauge the feasibility of each ECO.” “ECO Lens recovered its cost many times over in terms of reduced E&O inventory within the first few weeks after deployment. The instant availability of the cost-impact of ECOs is a priceless resource for both engineers and materials personnel to gauge the feasibility of each ECO.” - Finisar Corporation - Finisar Corporation
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Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent. Q&A Questions ? Visit our Booth #22 Visit us at www.sierraatlantic.comwww.sierraatlantic.com Call us at US: 1.510.742.4100 UK: 44.20.8920.9520 Dubai: 971.4.3616259 India: 91.40.6643.6000 Singapore: 65.6334.9356 China: 86.20.87072002
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