SCM Adv Planning 1

Oracle Advanced Planning
Enabling the Demand Driven Supply Network An Overview
<Name>
<Title>
The 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 decision. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.
This presentation is for informational purposes only and may not be incorporated into a contract or agreement.
Today: Tough Economic Conditions

Business trends forcing you to adapt new strategies
TRENDS ADAPT YOUR BUSINESS MODEL
Higher degree of uncertainty
Get visibility to all demand Manage to uncertainty by postponing inventory Focus on core competency Increase outsourcing Move point of differentiation closer to customers Provide reliable and accurate commitments to customers Lower cost of ownership of apps
Increased global competition
Mass customization Focus on customer service to ensure brand loyalty Less money to invest in IT
Traditional Approach
Multi-step planning processes, high latency, limited collaboration
CUSTOMERS SUPPLIERS
Tier 2
Tier 1
Fax Paper Paper
Response 1: Maintain Excess Inventory Response 2: Reserve Production Capacity Response 3: Expedite Everything!
Marketing Distribution Production Manufacturing plans plans plans
Sales
?
Manual reconciliation Long planning cycles Demand Planning Supply Planning
Mfg.
Supply Chains built on INVENTORY
Move to A More Competitive Model

E-Business planning solution: zero latency, real-time collaboration
CUSTOMERS SUPPLIERS
Tier 2
Tier 1
Enable closed loop collaborative planning processes across your value chain Have complete supply chain visibility Make better decisions React immediately to disruptions in supply chain
Portal
Portal
Automated Exceptions Marketing
Manufacturing Sales Demand Hub & Multidimensional analysis S&OP Process Consensus forecast and production plan Single holistic plan Supply Planning
Mfg.
Supply Chains built on INFORMATION instead of Inventory
Business Intelligence
Oracle Advanced Planning Solution

Complete e-business planning solution
Supply Chain Intelligence Network Design Sales and Operations Planning Demand Planning Inventory Optimization
IO SCI SNO DP
Maintain Service Fulfill Make Procure
Finance HR
All Product, Customer, & Supplier Information
Projects
From detail to summary
Supply Chain & Manufacturing Planning ASCP Global Order Promising Distribution Planning Production Scheduling
PS GOP ASCP
Plan
Order Sell
Market Develop
SC Exception Management CP Collaborative Planning From short-term to long-term

CP
What Our Customers Say

Reduced inventories by 20%, increased market share from 50% to 80% The most exciting feature of the system to a manufacturer is constraint-based planning. Oracle provides the ability to plan, including resource and material constraints, based on suppliers' inventories and capacities. Mr. V. A. Raghu, Managing Director, Tube Investments Ltd.
Replaced i2 and cut planning cycles from weekly to daily With Oracle E-Business Suite 11i, we have moved from weekly to daily planning, which has significantly improved our response time. Clair Walizer, Senior Developer and Analyst, Canon Virginia, Inc.
Improved inventory turns by 37% With help from Oracle's Advanced Supply Chain Planning (ASCP), we can now respond to customer change requests within 24 hours. The system also helps us check if our suppliers can supply us the components we need. Previously, we've had to collect this data manually using a lot of resources. Tan Lai Tong , Business Management GM, TEC Ltd.
Key Capabilities
Strategic network design
Sales and operations planning Inventory postponement optimization Holistic planning and optimization Multi-tier collaborative planning
Zero downtime global order promising

Real-time production scheduling
Strategic Network Design

Key capabilities
Optimize your supply chain network

Use demand scenarios as input Compare time-phased network configurations
Model all supply chain elements

Distribution centers, processing facilities, ship methods, stores, suppliers, and customers Costs: transportation, operating, sourcing, facility ramp-up and shut-down, labor, and storage
Optimize sourcing
Output best sourcing strategy for downstream supply chain and inventory planning
Simulate changing business conditions

New businesses and new markets Outsourcing decisions Demand scenarios

Proven deployment success and ROI: 300+ customers
BASS BREWERS COCA COLA - FEMSA
75% Inventory reduction 5% Capacity improvement

NABISCO FOODS
50% Inventory reduction 25% Stock-out reduction

KRAFT FOODS - EUROPE
70% Inventory reduction 20% Capacity improvement

OWENS ILLINOIS
50% Inventory reduction Planning cycle reduced 86%

DOW CHEMICAL
20% Inventory reduction
$ 350M Inventory reduction Carrier rationalization from 200 to 12

FORT JAMES
KIMBERLY-CLARK
50% Inventory reduction Planning cycle reduced 20%
15% Inventory reduction
Sales and Operations Planning

Definition
Balancing supply and demand

Synchronization of all operational plans Key outputs
Consensus forecast Bookings forecast new orders expected to be received Sales and allocations plan expected shipments Production plan
Bookings forecast +/- changes in backlog = shipping forecast Shipping forecast +/- changes in inventory = production plan

Complete and integrated process
INPUTS PLANNING PROCESS
Financial plan Budget plan Sales opportunities Trade promotions Ship and book history Current order backlog Inventory history Production history Production backlog Customer forecasts
Demand Plan
Inventory and service levels
Capture all demand in one place Determine consensus forecast - Determine new product plan Balance supply, demand, and budgets: - Determine inventory targets - Determine supply plan - Determine allocations Evaluate and adjust plans
Exception management
Supply Plan
Sales Plan Production Plan Bookings Forecast
Management Reports
OUTPUTS

Key capabilities
Demand Hub

Capture all demand data in a central place Collaborate internally and externally
Drive to a consensus forecast
Use analytics and intelligence to achieve a consensus demand
Balance demand, supply, and budgets
Make allocation decisions while trading off service levels and cost
Adapt and adjust to changing business conditions
Adjust demand or supply plan as conditions change Drive continuous improvement
Integrated solution with built-in business intelligence
S&OP Demand Hub

Capture all historic and future demand in a single data store
CUSTOMERS SUPPLIERS
Tier 2
Central repository for all demand information
Tier 1

Portal Internet
Portal
Customer and supplier forecasts POS data Sales and marketing forecasts Financial forecasts and budgets User-defined data (spreadsheets)
Configurable and extensible
ERP Transaction Flat file loads EDI Transactions ERP Systems APIs
Meta data driven User-defined dimensions and hierarchies
Demand Hub
Open

Spreadsheets, XML, EDI, portal Audit exceptions
Finance Marketing Sales Manufacturing
Integrated
Out-of-the-box loads for Oracle ERP
S&OP Demand Planning

Drive to accurate consensus forecast
CUSTOMERS SUPPLIERS
Tier 2
Compare and consolidate disparate forecasts
Tier 1
Sales, marketing, manufacturing, customers, suppliers, Point of Sale (in units or $$) Use multi-dimensional analysis to adjust, allocate, and rollup
Portal Automated exceptions Collaborative demand plan
Portal
Internet
Improve forecast accuracy

Better statistical forecasts Forecast planning percentages for models and options Get visibility to customer demand changes
Demand Hub Consensus forecast
Improve demand planning cycle time

Demand Planning Process
Move from a regimented periodic to a continuous demand planning process Get real-time visibility to demand adjustments via internal collaboration
Finance Marketing Sales Manufacturing
Improve sales promotion planning

Forecasting integrated with promotion planning Measure effectiveness
S&OP Demand Planning

Drive to accurate consensus forecast
Forecast Collaboration Process
CUSTOMERS
Sales Forecast
Manage product life cycles more effectively, with your trading partners

Introduction of new products Phase-out of obsolete products
Synchronize
Improve delivery performance

YOU
Sales/Order Forecast Publish (optional)
Include customers in forecasting process Publish sales forecast to suppliers at any tier
Reduce non-value added costs and exception overload

Synchronize
User-defined exceptions Proactive notifications Automated exception handling via workflow
Sales Forecast
SUPPLIERS
S&OP Alcoa
COMPANY PROFILE $20.3 billion in revenues 350 operating locations in 40 countries 127,000 Alcoans worldwide 4 Major Rolling Mills - Davenport, Iowa; Lancaster, Pennsylvania; Texarkana, Texas; San Antonio,Texas Heat Treating and Blanking Center - Danville, Illinois Customer service and distribution centers Irvine, California;Hutchinson, Kansas Extruded Tube for Heat Exchangers - St. Louis. Missouri; Monterey, Mexico BEFORE ORACLE Spreadsheets, not integrated with legacy system, nor with execution systems Manual forecast smoothing No system supported sales and operations planning Monthly planning cycle, insufficient accuracy in order promise dates
AFTER ORACLE Determines allocation to produce most profitable product mix within existing constraints Performs all planning at the family level Powerful Integration of supply/demand picture Demand Planning & ASCP supply and inventory data Drill Down and roll-up capability Reporting tools and data analysis Export to excel or HTML pages Supports the S&OP Process Demand planning analysis and pre-work Operations planning analysis and pre-work S&OP composite picture in real time during review sessions
Source: Alcoa Presentation at Appsworld 2004 Reduced plan cycle time Eliminated waste on spreadsheets Process integration with other modules resulted in technology pull for new systems Integrated sales and operations planning process resulted in one consensus forecast number
Benefits
Inventory Postponement Optimization

Manage to uncertainty, reduce inventory, improve customer service
Without Postponement Customers With Postponement
Regional Distribution Centers
Inventory levels and policies are synchronized across the entire supply chain Manage to uncertainty
Central Distribution Centers
Demand, supply, and lead-time variability
Final Assembly
Pull model, driven by point of postponement Higher customer service at lower inventory cost Time-phased safety stock buffers at all levels Multiple target service levels
Contract Manufacturers
Suppliers

Business benefits
Reduced inventory cost

Increased flexibility to handle supply and demand uncertainty Rapidly handle product mix changes Reduced average fulfillment lead times Reduced material liability Ability to absorb yield exposure

Key capabilities
Without Oracle
Reduce inventory without sacrificing customer service

Postponement Risk pooling
Inventory Investment
Manage supply chain variability Choose the best service level strategy based on cost and revenue
With Oracle
Lower Inventory Cost
Inventory budget constraints
Invest in profitable channels, products, and customers Manage seasonality and product life cycle characteristics
Higher Service Level
Recommend time-phased safety stock to supply planning
10
30
50
75 80 85 90 95 100
Out-of-the-box optimization
Service Level
For planners, not programmers
Reduce inventory without impacting customer service
Simulate multiple scenarios to find the optimal trade-off between cost and service level

Customer example GE Transportation Aircraft Engines, US
Focusing on class A parts for service business Determining safety stock levels across finished goods and raw materials Realizing significant benefits
Example: reduced inventory for one part by 10%
Holistic Planning and Optimization

Faster and better supply chain plans
Long-term planning
Customers
Discrete
Unified solution for supply chain and manufacturing planning Segment the problem as needed Optimization for planners not programmers Scalable and reliable
Suppliers
Flow
Plants
Internet
Project
Warehouses
Process
DCs Short-term planning
Semicon

One solution for comprehensive supply chain and mfg planning
Supply Chain Planning

Manufacturing Planning

Product family and item level planning Alternate components, resources, processes, suppliers, facilities, and ship methods End-item substitution Critical items and resources Aggregate resources Bills of distribution and transfer rules Customer and supplier facilities
Simultaneous resources Batch resources Alternate resources Minimum transfer quantities Complex, network routings By-products and co-products Line rates and takt times Setup and run
One supply chain model, one planning engine, one setup

Highly adaptable; segment the problem as needed
One holistic plan
SCP for all Organizations
Adapts to your current business model
One DRP, multiple MRP

DRP for all Orgs
Single plan or multiple plans
Evolve planning model at your own pace
MRP Org 1 MRP Org 2 MRP Org 3
Re-configure easily by modifying plan options instead of re-implementing or re-modeling
Multiple MPS, multiple MRP

MPS for BU 1 MPS for BU 2
Multiple models can co-exist
MRP Org 1
MRP Org 2
MRP Org 3
MRP Org 4
MRP Org 5
MRP Org 6

Highly adaptable Customer examples
Interceramic

Knowles Electronics
91 Distribution centers, stores, and franchises 4 Plant warehouses 7 Manufacturing plants 3000 BOMs, 100,000 SKUs Run DRP, constrained MPS, and raw material MRP
Manufacturing plants Distribution chain
Suppliers
Customers
Global planning instance 2 Locations in the US 1 Location in Europe 5 Locations in Asia Mixed mode manufacturing Make to stock Make to order Configure to order Global order promising against 1 central plan
Constrained SC plan Constrained MPS plan for all facilities
DRP plan
Collaborative demand plan
Knowles Electronics has reduced inventory by $1M per month after implementing Advanced Planning
Inventory postponement plan

Optimization For planners, not programmers
Make better decisions faster
Level load Choose alternatives Make/buy decisions Late demand diagnosis
Out-of-the-box optimization
Use costs or decision rules
Start quickly

Planners define the problem to solve Flexible defaulting
GE AE has moved from running separate plans in 36 facilities to running Reduce planner workload a single holistic plan across their DCs, end-assembly, contract manufacturing, and component shops, and as a result has reduced their planning organization significantly

Scalable
Patented memory-based architecture

Multi-threaded snapshot Optimized end-to-end run time
Database centric
All plan information resides in the database Leverages high performance database capabilities
Flexible plan scope

Telescoping granularity Apply constraints selectively Subset planning
High volume customers: Agilent Technologies, Sony SNC, GE AE, NCR, Panasonic, Alcoa
Multi-Tier Collaborative Planning
Multi-tier Collaborative Planning

Full visibility and synchronization across the extended supply chain
CONTRACT MANUFACTURER CUSTOMER YOU SUPPLIER
Plan your extended supply chain

Demand systems
Consensus forecast
Run plan
Supply forecast
Demand boards
Share forecasts and supply commits with customers and suppliers Get visibility to supplier capacity Reallocate key components Make alternate sourcing decisions
Run plan
Supply commit boards

Supply commit memory
Reduce inventory cost and improve fulfillment

Suppliers manage your inventory Manage your customers inventory
Forecast memory
React quickly to supply chain exceptions

Waterfall analysis User-configurable exceptions Automated exception handling via workflow
Optional
VMI and Consigned Inventory

Automate inventory replenishment with suppliers and customers
CUSTOMER YOU SUPPLIER
VMI Agreement
VMI Agreement (with customer)
VMI Agreement (with supplier)
VMI Agreement Check inventory status
Send consumption advice
Receive items
Ship items
Receive items
Ship items
Pay on receipt/use
Pay on receipt/use
Customer Example: Alcatel eND

Enabled 100% virtual enterprise Plan virtual supply chain
Planning cycle time reduced by 75%
Reduced inventory by more than 65% Reduced material liability by 80% Established global closed-loop process controls Improved supply chain visibility Projected annual savings of $15M
Zero Downtime Global Order Promising

Promise orders based on:

Material availability Manufacturing capacity Transportation capacity Supplier capacity
Global statement of availability
All facilities, material, resources, and suppliers
Drive fulfillment decisions based on demand and supply plans
Promise based on optimal supply decisions
Allocate available supply and capacity

By channel, customer, or product Priority and stealing rules
Manage commitments to key customers
Re-schedule and re-sequence your backlog

Guaranteed uptime and consistency via patent-pending architecture
Typical Approach Promise Orders Promise Orders
? ? ? ? ? ? ?
Zero downtime
Current plan
Downtime or Inaccurate orders

Copy Run Copy
New plan
No order promising downtime when underlying supply chain plan is refreshed No sales order is lost, automatically repromise sales orders against new plan
Run new plan
Oracle Approach
Open, reliable, and scalable

Promise Orders
Promise Orders
Current plan
Sync & Re- Swap promise
New plan
Engine runs inside the database No memory models to load! Multi-threaded Integrated with OM, iStore, and Call Center Easily integrate with legacy systems
Copy
Run
Run new plan

Customer examples
Agilent Technologies
Performing multi-level capable-to-promise Greatly reduced expedite orders with accurate order promising dates Moved from batch to online order promising Increased customer satisfaction of key strategic customers by using allocated ATP 24x7 worldwide order operation with zero downtime CTP Meet customer requirement by utilizing substitute components
Cisco
Every order for every router sold worldwide goes through GOP Complex order promising problem

Product and channel allocation rules Extensive use of ship sets in an assembly to order environment High volumes
Intersil
Using material and resource constraints (CTP) across virtual supply chain Sales people promise orders online in seconds
Real-Time Production Scheduling

Key capabilities
Maximize production throughput

Optimize your shop floor; detect floating bottlenecks Reduce WIP inventory by rapidly synchronizing multi-stage production schedules Account for complex setup and change-over scenarios, machine breakdown, supply and resource shortages , coand by-products, alternate resources, routings, and operations
Model all elements of your shop floor

Work centers, resources and resource groups, shift capacity, operating costs Lead times: setup, change-over, and run Sequence dependent setups, contiguous operations, production campaigns, batching
Implement most optimal schedule seamless integration with Oracle EBS
Output best schedule for process (OPM), discrete MFG), and semi-conductor (OSFM) manufacturing (available 2006)

Customer examples
GE Energy
Improved schedule accuracy and confidence by reflecting real time shop floor constraints Finite machine, crew and tool resource constraints Floating resource bottlenecks due to demand mix variability Operation sequence dependent setup times Operation buffering to avoid intermittent glue gun usage Alternate resources with preferences Simulations of hot order impact on existing schedule Complex demand priorities
Toyota Racing Division

Reduced schedule creation from 3 weeks to < 2 hours Support re-planning based on constant design changes during production Respect for crew specialization Optimized use of un-manned operations during downtime
Nampak
Reduction in time lost due to sequence dependent press setups for container styles and sizes
Integrated Performance Management and Process Automation
Integrated Performance Management

Closed-loop plan-execute-measure-adapt process
PLAN TO PERFORMANCE
BUSINESS INTELLIGENCE
PROCESS
Planned utilization ASCP On-time delivery Planned margin DP
Define targets
Execute transactions
Identify key performance measures and set targets Calculate KPIs and compare to plan; notify decision makers of exceptions
Forecast accuracy Margin analysis Promotion effectiveness

Service level analysis Plan versus profit Postponement savings Carrier contract utilization Cost per unit weight Cost per unit volume Supply commit variability Order forecast variability Management Reports Role-based portals
OUTPUTS
IO
Notify on out of tolerance
Measure performance
Analyze exceptions based on facts; take immediate corrective action Perform trend analysis and adjust business plan and targets
TP
CP
Process Automation
Increase planner productivity
Automated end to end planning process
Completely integrated business process flows across all products
Automated plan execution
Auto-release orders and reschedule recommendations
Configurable exception management

Workflow enabled exceptions User-defined exceptions Configurable thresholds
Kyocera has workflow-enabled their planning process to the extent where their planners manage all the plan exceptions by responding to email notifications
Scalable and Open Architecture
Scalable and Open Architecture

Database-centric architecture
TRADING PARTNERS INTERNAL USERS
High performance

Portal
Portal Internet Analytical Workspaces
In-memory only when needed Multi-threaded snapshot Leverages key database features like materialized views, partitions, and analytical workspaces All plan information resides in the database Hot backup and recovery Leverages grid computing infrastructure Runs against all versions of Oracle EBS 11.0, 11i Deploy against legacy systems XML, flat file, EDI support
Reliable

Order Promising Engine Oracle ERP
APIs KPIs Workflows Plans
Open and standards based
Advanced Planning
XML EDI Flat file Legacy Systems
Legacy Deployments
Cochlear, Embraer, FXAP, NCR, Interceramic, Perkin Elmer, GE Transportation Aircraft Engines, Xilinx,
Momentum
Ongoing Momentum
1000+ Advanced Planning customers
Both new installs and upgrades, several legacy system deployments 50% same instance, 50% distributed architecture Broad use of modules Worldwide deployments
US, Brazil, Mexico, UK, France, Italy, Spain, Switzerland, Belgium, Turkey, Israel, South Africa, Singapore, Japan, India, Taiwan, Indonesia, Australia, New Zealand, Korea, China, Malaysia, Netherlands, Denmark,
Large-scale, complex deployments across all industries
A Few Live Customers

Intersil - ASCP, DP, GOP Fuji Xerox Asia Pacific - ASCP, DP Perkin Elmer - ASCP, GOP NCR - ASCP, DP Namitech - ASCP, GOP Emerson ASCP, DP BMW SNO Xilinx - ASCP UPS Logistics - ASCP, GOP Agilent - ASCP, GOP, DP Mykrolis - ASCP Knowles Electric - ASCP, GOP Panasonic - ASCP Honeywell S&C - ASCP, DP Embraer - CP, DP Tube Investments - ASCP Toyota PS Eaton Trucks - ASCP Kyocera ASCP Nampac PS, SNO Hoffman - SNO Cisco - ASCP, GOP Alcoa - ASCP, DP, GOP Canon Virginia ASCP, CP GE Energy Power Systems - ASCP, GOP GE Transportation Aircraft Engines - ASCP GE Energy - PS Silgan Plastics - ASCP Qualcomm - ASCP, DP, CP McGraw-Hill - ASCP, DP Alcatel eND - ASCP, DP, CP Intersil ASCP, DP Cervecera Quilmes - SNO Mango - CP Rockford - ASCP, DP Quantum - ASCP, DP GrafTech International - SNO Boeing - ASCP Anugra Argon Medica - ASCP, DP Cochlear - ASCP, DP Inventec - ASCP, GOP, CP Dow Chemical SNO, PS
Adding Value and Assuring ROI

Intersil reduced inventory by 50%, reduced response time for critical products from 336 to 24 hours, 246% ROI Xilinx achieved a 98% delivery performance to promise date Alcatel eND moved to virtual supply chain model and reduced inventory by more than 65% Anugrah Argon Medica improved on-time delivery to 98% TEC Electronics improved inventory turns by 37% Tube Investments reduced inventories by 20%, ramped up production by 20%, increased market share from 50% to 80%
Dow Chemical reduced inventories by $350M, rationalized carriers from 200 to 12

GrafTech reduced inventories by 40% and lead times by 20%
Inventec Multimedia & Telecom, Taiwan

COMPANY PROFILE BEFORE ORACLE
Large contract manufacturer of voice and digital imaging, and voice and data transmission products $360M revenue
Uni-directional planning process (Cisco > Inventec > Suppliers) No supply-demand allocation process Excess inventory, extensive expediting Supplier bottlenecks late delivery of critical components No support for CPFR No constrained based order promising inaccurate order dates Spreadsheet based tools, disconnected systems
PLANNING BENCHMARK
AFTER ORACLE 4 month implementation
End-to-end planning run = 2 hrs Collaboration with 150 suppliers Full CPFR implementation
Operates complete collaborative planning process using ASCP, GOP, and CP Collaborative supply-demand planning with key customers Collaborative supply planning with 150 suppliers Constrained multi-org plan, weekly; used to publish order forecast to suppliers, who provide supply commits as input Daily plans as a basis for material constrained ATP VMI with suppliers full visibility to stock levels and in-transit
Benefits
Reduced order promising lead-time from 3 days to minutes Achieved real-time visibility to supply and demand Reduced planning cycle time through an integrated forecast-to-plan model Highly automated planning processes versus previous use of spreadsheets
NCR Corporation, US
COMPANY PROFILE BEFORE ORACLE
Retail Services Division (RSD) and Financial Services Division (FSD) Manufacturer of point of sale and high-end scanning equipment, and service provider of complete store automation, ATMs, and self-service kiosk solutions $5.6B revenue FY02
Each organization ran individual MRP, 54 ERP instances Integration between orgs was based on buy-sell relationship Forecast accuracy < 50% Sales and operations planning cycle time: 21 days No system supported sales and operations planning process
PLANNING BENCHMARK
WITH ORACLE AFTER ORACLE

Runs worldwide manufacturing and sales operations using ASCP, DP, and GOP Single, global plan for 20 orgs, including worldwide distribution centers and manufacturing plants Runs daily constrained enterprise plan (EDD) Complex procured configurations Using real-time material constrained, multi-org, multi-level ATO order promising process
Demand Planning 500,000 demand planning composites 12+ month forecasting horizon 20Gb memory model Supply Chain Planning 20 orgs 1,000,000 items 2,5 hours end-to-end planning run
Benefits
Synchronization of entire worldwide supply chain with complete global visibility Strongly reduced planning cycle time Strongly increased forecast accuracy System supported sales and operations planning process
Toshiba TEC, Worldwide

Global planning deployment Multi Instance
Distribution Sites Manufacturing Sites
MRP

MRP
Europe Orcl 11i
Forecast
China
Orcl 11.0
$3.1B manufacturer of document processing equipment Previous process

Malaysia
Orcl 11.0
MRP
Multiple regional ERP instances Decentralized planning process Global centralized planning model ASCP is cornerstone of Global SCM project Uses ASCP to make global production allocation decisions Uses material and resource constrained planning Moved from a monthly planning cycle to a weekly cycle Reduced manufacturing cycle times Optimized worldwide inventory levels
US
Orcl 11i
Forecast Toner Mfg Plant
Japan
Orcl 11.0
Current process

Resource and material constrained Production Plan (MPS)
Advanced Planning 11i
Benefits

Forecast
Orcl 10.7
Japan Distribution Sites
Read their online testimonial
Agilent, Worldwide
Highly complex, large scale model
SEMICONDUCTOR PRODUCTS GROUP (SPG) $1.586B net revenue (FY03) TEST and MEASUREMENT, and AUTOMATED TEST GROUP (ACE) $2.53B and $0.76B net revenue (FY03)
BEFORE ORACLE Legacy order promising using ATP Disparate planning tools across supply chain Reactive, manual, and time consuming plan analysis 1 week planning cycle Manual forecast generation No system supported S&OP process
BEFORE ORACLE Legacy order promising using ATP Manual order promising with fixed lead-time Weekly, cascaded MRPs (4 wk propagation) No system supported S&OP process Multiple, divergent systems/process statistical forecasting, new product introductions, or promotions
AFTER ORACLE Runs worldwide manufacturing and sales operations using ASCP, DP, and GOP Runs optimized enterprise plan, twice/week Plan includes tier-3 supplier organizations Low cost, high volume and high mix demand Using real-time CTP to promise orders 24x7, with use of complex allocation rules Using complex network routings
AFTER ORACLE Runs worldwide manufacturing and sales operations using ASCP, DP, and GOP Runs weekly unconstrained enterprise plan High value, low/moderate volume demand; using 32 sub-plans, new product introductions, and promotions Using real-time ATP to promise orders Using multi-level ATO and PTO models
PLANNING BENCHMARK Scheduling 2 million operations 6-8 BOM levels, ~25 components per BOM >50,000 items, 6 month planning horizon < 50 ASCP and 10 DP users >20 orgs 25Gb memory model, end-to-end 15 hrs run
PLANNING BENCHMARK Planning ~1,500,000 forecast entries 6-12 BOM levels, ~1000 components per BOM ~400,000 items, 12 month planning horizon 200 ASCP and 15 DP users 12 factory orgs, 5 SMI orgs, 1 CM org 15Gb memory model, end-to-end 12 hrs run
GrafTech International, Worldwide

COMPANY PROFILE HQ in Wilmington, DL, USA Manufacturer of carbon and graphite products, used in steel and other metals industries $700M revenue 13 manufacturing facilities on 4 continents Customers in 60 countries BEFORE ORACLE Organization had tremendous challenges keeping up with fast changing and demanding graphite electrode business climate Internationalization issues No metrics to drive decisions to improve profitability No system supported network design process
AFTER ORACLE
Runs worldwide network design optimization using SNO Multiple simulation scenarios across 13 manufacturing facilities worldwide Improved service levels through lead time reduction Using storage, transportation, sourcing, operating, and labor costs
Benefits
Optimization of entire worldwide supply chain network Reduced inventory by 40% Reduced lead times by 20% Strongly improved resource utilization, globally
Dow Chemical, Worldwide

COMPANY PROFILE HQ in Germany Manufacturer of chemicals $28B revenue 7 manufacturing facilities Customers worldwide BEFORE ORACLE Organization had tremendous challenges keeping up with fast changing business climate Inventory levels and logistics costs were proportionally high No system supported network design process No production scheduling system
AFTER ORACLE Runs worldwide network design optimization using SNO Multiple simulation scenarios Improved service levels through lead time reduction Using storage, transportation, sourcing, operating, and labor costs Improved production throughput in all 7 plants
Benefits
Optimization of entire worldwide supply chain network Reduced inventory by $350 million Reduced carriers from 200 to 12 Strongly improved resource utilization, globally
Cervecera Quilmes, Latin America

Developed regional SNO model to answer critical logistics questions
Market leader in Argentina, dominates beer markets in Latin America (Uruquay, Paraguay, Bolivia, Chile)
- Quilmes supplies 60% of beer in these markets - Quilmes bottles 90% of PepsiCo branded sales in Argentina
Annual revenues $940M Consolidated assets of $1.5B
Quilmes Capacity Planning

Deployment of inventories? Sourcing of raw materials? OW? Malt? When? Increases / divestment ? How much?
Demand
Brewing
What?
Bottling
What?
When? How much
Warehouse
Supplier
When? How much?
Demand
Supplier
Demand DC Brewing
Interplant movements?
Bottling
Interplant movements?
Warehouse.
Where from? Seasonal changes?
Quilmes Capacity Planning

Quilmes management can evaluate:

- Impact of changes in demand mix - size (specialization and despecialization of bottling lines) - Impact of changes in demand mix - brew (specialization and despecialization of plants) - Acquisitions: opening and closing of production lines, plants, and DCs
- Responses to demand uncertainty

- Changes in sourcing of critical supplies for a given plant and period - Integration of processes and acquisition of a supplier or suppliers
How To Get There ?
Start with Unconstrained ASCP

Better MRP solution at low initial cost
ASCP
Improve planner productivity

New productivity enhancing UI Planner collaboration
Reduce your planning cycle time from months to hours

Holistic planning Improved scalability and performance Improved exception resolution Improved modeling Workflow based exceptions Integrated business intelligence
Unconstrained MRP APS Common Infrastructure

Oracle Applications (11.0, 11i)
Reduce non-value added costs
Drive continuous improvement
Foundation for future growth

Common infrastructure
Unconstrained ASCP
Make better decisions leveraging a more comprehensive model
Use a single plan to plan your entire supply chain to reduce planning cycle time

Simultaneous material and capacity planning Plan process and discrete mixed models Perform forecast consumption inline
Plan at aggregate level, as well as detailed level in a single plan, with better accuracy

Time granularity in plan horizon Account for yields
Leverage advanced problem solving and analysis tools
Comprehensive exception management and automation through workflow Extensive pegging capabilities
Measure plan to target performance
Integrated performance management
Leverage a stronger foundation for future growth
1. Improve The Quality Of Your Plans

Use constraints and optimization to improve decision making
ASCP Optimized
Improve plan quality
Automatically recommend alternative suppliers, components, resources, facilities, and routings Generate feasible plans that respect your material and resource constraints
Constrained
Unconstrained MRP APS Common Infrastructure

Cost based optimization: maximize profit, inventory turns, and customer service Out-of-the-box optimization Priority based decisions Drag-and-drop rescheduling
Improve resource scheduling

Schedule simultaneous resources Batch resources Minimum transfer quantities
2. Expand Your Solution Footprint

Start with your most important problem
Demand Planning Network Design Inventory Optimization Collaborative Planning Production Scheduling Global Order Promising
ASCP
Optimized Constrained Unconstrained
Balance demand, supply, inventory and budgets Optimize your supply chain network
Network Design
Demand Planning
Improve forecast accuracy
Inventory Optimization
Improve service level at lower inventory cost Promise more reliable dates to customers Automate inventory replenishment and supply chain collaboration with your trading partners Maximize your production throughput
Global Order Promising
Collaborative Planning
MRP
APS Common Infrastructure
Production Scheduling
Integrated, yet Modular

Leverage integration at incremental investment
PLANNING PROCESS Forecast scenarios
Network Design
SNO

Forecast and demand variability
Demand Planning
Forecast
DP
Sourcing rules
Inventory Optimization
IO
Time-phased safety stocks
Supply Chain and Manufacturing Planning

Firm supply schedule Planned orders
Constrained plans
ASCP
Sourcing rules
Production Scheduling PS
Global Order Promising GOP

Supplier capacity
Supply commits
Order forecast
Order forecast
Customer forecast
Collaborative Planning
SUPPLIERS CUSTOMERS
CP
Today Coming
Summary

E-Business planning solution: zero latency, real time collaboration
CUSTOMERS SUPPLIERS
Tier 2
Tier 1
Portal
Portal
Automated Exceptions Marketing
Manufacturing Sales Demand Hub & Multidimensional analysis S&OP Process Consensus forecast and production plan Single holistic plan Supply Planning
Mfg.
Business Intelligence
Why Oracle!
Integrated planning, execution, and collaboration Holistic planning and optimization For planners, not programmers Integrated performance management Lowest total cost of ownership
Key Takeaways
Low risk, high value transition to a better planning system Proven and complete planning solution

Many live customers on multiple products, across a wide variety of industries Large-scale, complex, worldwide deployments For Planners, Not Programmers - Out-of-the-box optimization Superior architecture - scalable, database-driven planning; common data model across all engines, shared with execution
Provides significant value
Large reduction in planning cycle time Significant reductions of inventory and increase in customer service levels Enables customers to implement best practices
Progress at your own pace, transition gradually

Quickly start with unconstrained planning Move up to constrained or optimized planning Leverage out-of-the-box integration to rapidly extend planning footprint
INFORMATION AGE APPLICATIONS
Alternative Slides
Shorter version of IO section
A Better Approach Inventory Optimization

Respond quickly to demand and supply fluctuations
Old way Push Inventory Central Distribution Centers Regional Distribution Centers
Suppliers
Contract Manufacturers
Final Assembly
Customers
New way
Postpone Inventory
Increase flexibility and reduce costs by moving inventory away from the customer to the point of postponement Account for demand, supply, and lead-time variability when determining the point of postponement and inventory levels Synchronize inventory levels and policies across the supply chain Helps you move from a push model to a pull model

Key capabilities
Without Oracle
Identify right postponement strategy for your business

Inventory Investment
Simulate alternate business scenarios Trade off inventory investment with customer service levels Vary service levels by channel, customer, and product Manufacturing and distribution locations Customer and supplier locations
With Oracle
Holistic view of the supply chain

Lower Inventory Cost
Account for all uncertainty and changes in your supply chain

Demand, supply, manufacturing, and transit lead times uncertainty New product introductions and product phaseouts
Higher Service Level
10
30
50
75 80 85 90 95 100
Leverage cutting edge optimization, but hide complexity from users
Service Level
Stochastic optimization; risk pooling
Reduce inventory without impacting customer service
Simulate multiple scenarios to find the optimal trade-off between cost and service level

SCM Adv Planning 1

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

SCM Adv Planning 1

Enviado por

Direitos autorais:

Formatos disponíveis

Oracle Advanced Planning

Enabling the Demand Driven Supply Network An Overview

Today: Tough Economic Conditions

Higher degree of uncertainty

Increased global competition

Fax Paper Paper

Marketing Distribution Production Manufacturing plans plans plans

Supply Chains built on INVENTORY

Move to A More Competitive Model

Automated Exceptions Marketing

Supply Chains built on INFORMATION instead of Inventory

Oracle Advanced Planning Solution

Oracle Advanced Planning

Maintain Service Fulfill Make Procure

From detail to summary

SC Exception Management CP Collaborative Planning From short-term to long-term

What Our Customers Say

Zero downtime global order promising

Strategic Network Design

Strategic Network Design

Use demand scenarios as input Compare time-phased network configurations

Model all supply chain elements

Simulate changing business conditions

New businesses and new markets Outsourcing decisions Demand scenarios

Strategic Network Design

75% Inventory reduction 5% Capacity improvement

50% Inventory reduction 25% Stock-out reduction

70% Inventory reduction 20% Capacity improvement

50% Inventory reduction Planning cycle reduced 86%

20% Inventory reduction

$ 350M Inventory reduction Carrier rationalization from 200 to 12

50% Inventory reduction Planning cycle reduced 20%

15% Inventory reduction

Sales and Operations Planning

Sales and Operations Planning

Balancing supply and demand

Sales and Operations Planning

Inventory and service levels

Sales Plan Production Plan Bookings Forecast

Sales and Operations Planning

Drive to a consensus forecast

Use analytics and intelligence to achieve a consensus demand

Balance demand, supply, and budgets

Adapt and adjust to changing business conditions

Adjust demand or supply plan as conditions change Drive continuous improvement

Integrated solution with built-in business intelligence

S&OP Demand Hub

Central repository for all demand information

Configurable and extensible

Meta data driven User-defined dimensions and hierarchies

Spreadsheets, XML, EDI, portal Audit exceptions

Finance Marketing Sales Manufacturing

Out-of-the-box loads for Oracle ERP

S&OP Demand Planning

Compare and consolidate disparate forecasts

Portal Automated exceptions Collaborative demand plan

Improve forecast accuracy

Demand Hub Consensus forecast

Improve demand planning cycle time

Demand Planning Process

Finance Marketing Sales Manufacturing

Improve sales promotion planning

Forecasting integrated with promotion planning Measure effectiveness