Oracle Industry Solutions
Complex Equipment
Manufacturing
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Information Age Applications
High Technology Segments
Complex Equipment
Semiconductor
 Products – Semicon fab equipment,
servers, test & measurement, etc.
 Products – Processors, DRAM,
embedded controllers, etc.
 Forecast-driven suppliers feed inhouse/EMS CTO final build & assy
 High cost of fabs pushing industry
towards fabless model
 Products sold direct to businesses
 Products sold on volume contract
High
Technology
Contract Manufacturing
Consumer Electronics
 Services – Outsourced design, test,
manufacturing/assembly & logistics
 Products – PCs, cell phones,
PDAs, stereo equipment, etc.
 B2B supply chain collaboration
and event synchronization
 Multi-channel demand feeds
dominant outsourced mfg model
 Products shipped to OEM partners
or drop-shipped to end customer
 Products sold via retailers &
online
The Complex Equipment Value Chain
Silicon Source
Component Mfg
Tiered
Supply Base
Contract Mfg
(EMS)
OEMs
Semiconductor
Fabrication
Direct Sales
& Service
Sub Assy
Mfg
OEMs, Sales
& Distribution
Customer
Complex Equipment Industry Drivers
Design Complexity
Supply Variability
• How can I reduce design cycle
time, and development of
customer-specific products?
• What can be done when
component lead times exceed
finished product lead times?
• How can existing designs be
leveraged to reduce design
complexity?
• How can I fully leverage a global
manufacturing and supply base?
Tiered Supply
Base
OEMs, Sales
& Distribution
Configuration Management
Service Delivery
• How can I better manage
configuration changes that occur
once manufacturing has begun?
• How can I transform my service
operations to a profitable
business?
• Is there a better way to increase
the accuracy of configured orders?
• How can I ensure high quality
services performed by 3rd parties?
A Need for Change
Leading Business Trends
• Simultaneous optimization of supply & build strategies
• Outsourcing with complete visibility across multiple tiers
• Integration of configure-to-order processes and service
• Emergence of customer service as a strategic differentiator
• Lean initiatives to reduce cycle time and waste
A Need for Change
Extend Lean Initiatives Across the Enterprise
Sales & Mktg
Sales & Operational
Planning
Finance
Common Areas of Waste
Engineering
•
•
•
•
Poor Quality & Excess WIP
High Material & Supply Costs
Lengthy ECO Approval Process
Error Prone Order Processing
Supply
Management
•
•
•
•
Incorrect Resource Dispatching
Conflicting Demand Signals
Duplicate & Erroneous Data
Isolated Departmental Systems
Production
Information
Technology
Continually Improve Quality, Cost and Cycle Time
Service
Oracle in High Technology
Did You Know?
 All of the top 25 Electronic OEMs run Oracle applications
 47 of the top 50 Electronic OEMs run Oracle applications
 7 of the top 10 Semiconductor companies run Oracle apps
 5 of the top 10 Fabless Semiconductor companies run
Oracle applications
What Analysts are Saying…
“Oracle is well positioned to drive innovation to the high tech
industry. The company’s belief that it needs to maintain
leadership across the high tech sector in order to stay in touch with
innovative manufacturing developments for the rest of its business
helps ensure Oracle’s commitment to this industry.”
-- Meredith Whalen, Vice President, US Vertical Industry Research
“Firms in high tech manufacturing, where customer
service spans both front- and back-office processes, should
consider Oracle, especially if they have already made investments in
other Oracle modules, like financials. Oracle applications are also a
good fit for midsized companies looking to implement a single vendor
apps suite and for firms thinking about outsourcing.”
-- Eric Schmitt, Senior Analyst
What Customers are Saying…
“We selected Oracle for three reasons. First, we knew
we wanted an integrated solution. Second, we wanted
software that did not require any customization. Oracle
excelled over its competitors on both of these counts. The final reason
we chose Oracle was its proven success as a solution provider.”
--Tami Brown, Purchasing Manager
“McDATA's challenge of growing international business
operations can only be met with a flexible open system like
Oracle E-Business Suite. Buying disparate "best-of-breed"
applications requires costly and time-consuming integration services.
Oracle offers a seamless, fully integrated, modular business solution.”
-- Don Wenninger, CIO
“We now have electronic communication and
commerce with both outsourced manufacturers
and 3PL providers. We have all of our core back
office activities directly linked to the front-end systems that support our
new direct order fulfillment model.”
-- Saeed Hosseiniyar, VP of IT
What Customers are Achieving…
decreased planning cycle time by 75%
reduced engineering change order process time by 85%
reduced engineering change order cycle to under two days
reduced procurement cycle by 90%
increased purchases under contract from 30 to 80%
reduced service call center volume by 15%
reduced IT support costs by 50%
A Few More Customers…
Oracle E-Business Suite
Built on a Unified Information Architecture
• Common data model
Develop
Contracts
Projects
HR
enables a single source
of truth
Market
Sell
Order
Customers,
Suppliers,
Finance
Plan
Products, …
Maintain
Procure
• Comprehensive suite of
applications designed to
work together
• Robust set of integration
services based on open
standards
• Modular deployment
by business flow
Service
Make
Fulfill
• Single global instance
implementations
Tailored to the Complex Equip. Industry
Support for Key Processes
Business Intelligence
Product
Lifecycle
Management
Planning &
Manufacturing
Customer
Service
Technology / RosettaNet
Outsourcing
Management
Tailored to the Complex Equip. Industry
Key Processes: Complete Design-to-Service Flow
Opportunity Definition
Automatic
Order Creation
Match
Update Sales and
Service Contracts
Needs Assessment
Configuration
(Product and Pricing)
Automatic Config Item,
Bill & Routing Creation
Customer Initiates
Service Request
Automatic Supply
Order Creation
Available to Promise
Flow
Schedule
Schematics and
Drawing Generation
Populate Installed Base
PO
Work
Order
Define Service Rqmt
And Dispatch Work
Assign
Field Tech
Initiate
RMA
Repair &
Debrief
Receive
& Repair
Reserve
Configured Quote
Pick and Ship
Development
Manufacturing
Service
Oracle Complex
Equipment Solutions
Business Intelligence
Product
Planning &
Lifecycle
Manufacturing
Management
Customer
Service
Outsourcing
Management
Technology / RosettaNet
Enable you to:
 Establish and Sustain Profitable Innovation
 Enable Lean, Agile Supply Networks
 Manage and Grow a Profitable Service Business
 Command and Control Outsourced Operations
Product Design and Development
Accelerate Creation of Base Platform
Internal
Portfolio Management
Engineering Manufacturing
Concept
Sales & Mktg
Purchasing
Specifications
Drawings
Service
Finance
Schedules
Issues
External
Ideas
Changes
Customers
Suppliers
Contract
Mfgrs
Retire
C
o
Design
l
l
a Maintenance
Product
b
Data
Prototype
o
& Test
Repository
r
Volume
a
Production
t
i
Release
o
Ramp-up
n
Product Intelligence
N
e
w
P
r
o
d
u
c
t
I
n
t
r
o
Phase-Gate
Control
Design for SC
& Compliance
BOM Mgmt
& Release
Component
Sourcing
Sales
Configuration
Issue/Change
Management
Design Specific Models from Base Platform
Phoenix Organization
Phoenix Organization
Laptop Computer
ATO Model
Laptop Computer
ATO Model
CPU OC
ATO OC
Mandatory
Optional
65%
Pentium I
Purchased
CPU OC
ATO OC
Mandatory
Pentium II
Purchased
Optional
65%
Pentium I
Purchased
Pentium II
Purchased
Customer /
Channel
Specific
Model
Optional
35%
Mandatory
Assembly
Pull
Monitor
ATO Model
So
u
So
u
rcin
Optional
35%
Mandatory
Assembly
Pull
Monitor
ATO Model
Chicago Organization
gR
ule
s
Monitor
ATO Model
Assembly
Pull
VGA Option Class
ATO OC
Optional
70%
VGA I Tube
Purchased
Optional
50%
VGA II Tube
Purchased
Optional
50%
VGA Casing
Purchased
rc
ing
Chicago Organization
Ru
les
Monitor
ATO Model
Optional
30%
Assembly
Pull
VGA Option Class
ATO OC
Phoenix Organization
Optional
70%
Laptop Computer
Configured Item
VGA I Tube
Purchased
Optional
50%
VGA II Tube
Purchased
Optional
50%
Base Platform
So
u
Optional
30%
EGA I Tube
Purchased
EGA II Tube
Purchased
EGA Casing
Purchased
Selected
Configuration
Pentium II
Purchased
Monitor
ATO Model
VGA Casing
Purchased
EGA Option Class
ATO OC
CPU OC
ATO OC
Optional
50%
Optional
50%
r ci
ng
Chicago Organization
Ru
les
Monitor
Configured Item
VGA Option Class
ATO OC
VGA I Tube
Purchased
VGA Casing
Purchased
Search and Find the Best Components
Efficiently Select Components Based on Requirements
Browse Category
Hierarchy
Category
Search
Search Components by
Specification Values
(and compare search results)
Attributes
Choose Best Fitting
Component
Attribute
Values
Best
Component
Control the Product Change Process
Accurately Incorporate Customer-Directed Changes
Create
Change
Request
(ECR)
ID Issue
Assign
& Notify
Assess
Impact
Review
Cost
Schedule
Engineer
Alerts &
Notifications
Dispositions
Workflow Driven
Implement
Change
Org 1, Org 2, …
Test &
Approve
QA / Engr
Review
Create
Work Pkg
Create
Change
Order
(ECO)
Engineer
 User-Defined Change Types
 Streamline Review and Approvals
 Facilitate Multi-Company Collaboration
Approve
or Reject
Online Configuration and Ordering
Guide Customers Through Product Selection Process
 User-friendly HTML Interface
 Structured, Logical Flow
Convert BOMs* & Track Configurations
Manage Complexity Through Entire Product Lifecycle
“As Designed”
Design &
Develop
Engr
BOM
“As Sold”
Plan,
Market
& Sell
Sales
BOM
 Convert configured product
information as products evolve
through lifecycle
–
–
“As Built”
Manufacture
Mfg
BOM
“As Maintained”
Service &
Maintain
*Bills of Material
Service
BOM
–
Create sales BOM from engr
BOM and use for guided selling
via online Configurator
Associate installed base failures
with original product designs for
root-cause analysis
Track product designs through EOL
 Manage complex,
multi-dimensional data (item
types, location, platform, etc.)
Oracle Complex
Equipment Solutions
Business Intelligence
Product
Planning &
Lifecycle
Manufacturing
Management
Customer
Service
Outsourcing
Management
Technology / RosettaNet
Enable you to:
 Establish and Sustain Profitable Innovation
 Enable Lean, Agile Supply Networks
 Manage and Grow a Profitable Service Business
 Command and Control Outsourced Operations
Multi-Tier Supply Chain Planning
Synchronize Plans To Reduce Lead Times
You
Customer
Semicon
Supplier
EMS
 Extend Visibility to Multiple Tiers
–
–
Demand
‘equipment’
Run
plan
 React Faster to Supplier’s
Constraints
Consensus
forecast
Supply
forecast
–
Forecast
‘controller’
–
–
Run plan
‘controller’
–
Supply commit
‘CPUs’
Understand impact of BOM changes to your
CM or Supplier
 Reduce Non-value Added Costs
and Exception Overload
Forecast
‘CPUs’
Visibility
–
VMI Hub
Get visibility to supplier capacity
Reallocate key components
Make alternate sourcing decisions
 Reduce Obsolescence
Supply commit
Customer
Consigned
Inv Hub
Communicate requirements to all suppliers
Replenish and maintain inventories at
customer sites on a consignment basis
VMI Hub
–
User-configurable exceptions
Automated exception handling via workflow
Multi-Tier Supply Chain Planning
Risk Pooling via Inv. Optimization & Postponement
Prod A
Qty=100
Qty=100
Assy 1
Prod B
Finished
Product
Assy 2
Major Optional
Assemblies
• Reduce inventory
without sacrificing
customer service
• Use analysis tools
to determine:
Risk is “pooled”
because a lower
quantity of a common
sub-assy is required
to meet a given
service level
Qty=125 Sub Assy
SubAssembly
C1
C2
Components
 Where to optimally hold
inventory (stage & location)
 What quantities to hold
 What safety stock to keep
• Evaluate KPIs to assess
service levels,
postponement strategies,
revenues, costs, etc.
Use Planned Inventory Points that Enable Flexibility
CTO and MTS Manufacturing
Minimize Inventories & Increase Customer Satisfaction
Standard
Product
(MTS)
Customers
Configured
Product
(CTO)
Check
Availability
Configure
Global ATP and Pricing
Select
Mfg Source
Create Mfg
BOM &
Routing
In-House?
Outsource?
Drop Ship?
Production Plan
Pick
(or Receive)
Automated:
• Creation of Orders
and Schedules
• Creation of BOMs & Routings
• Accurate Order Promising
• Materials Allocation &
Option Dependent Sourcing
Ship
(or ASN)
Inventory
Invoice
Schedule
for
Production
Multi-Mode Manufacturing
Demand
Variability
Integrated
Intelligence
Cost
Analysis
Planning
Product
Lifecycle Mgmt
Outsourcing
Mixed Mode
CTO
ATO
Discrete
Flow
• Planned Orders
• Schedule Changes
• Component
Substitutes
• Resources
Substitutes
Productivity
MTS
Sample
Real-Time
WIP
Visibility
Seiban
Analyze
Adjust
Model
Shop
Floor
Contract Mfgrs
Warehousing /
Transportation
Suppliers
Asset
Maintenance
Quality Management
Service
Lot / Serial Genealogy Tracking
• Demand Schedules
• Sequencing
• Configured Order
•
•
•
•
•
•
MES APIs,
Direct
Access
Customer
Enterprise
Shop Floor
Contract Mfgrs
Suppliers
Material Availability
Mfg Capacity
Schedules/Changes
Production Status
Ship Notices
Invoices/Payments
Partner
Collaboration
(RosettaNet)
Flow Mfg for Cost Effective Production
Build a Mix of Models and
Configurations on the Same Line
Customers
Production Line
Sequenced
POs
Sequenced
Demand
Operation 10 Operation 20 Operation 30 Operation 40
Bin 1 Bin 2
Bin 1 Bin 2
Bin 1 Bin 2
Bin 1 Bin 2
Kanban
Replenishment
Inventory
Feeder Plant
Support Lean Manufacturing Practices
to Reduce Cycle Time and Waste
Feeder Line
Suppliers
Synchronized
Production
Manufacturing & Logistics Integration
Efficiently Move Products from Assembly to Customers
Warehouse Management Integration
Sales Orders
Mfg Operations
WMS Solution
•
•
•
•
Cross-dock and direct ship to / from manufacturing
Comply with labeling requirements
Create & track LPNs and lot / serial numbers
Enable simple kitting to full bill of materials or work
order jobs
• Support seamless configure-to-order (CTO) flow
Transportation Management Integration
• Promise orders and plan transportation based
on material availability
• Incorporate true transit times and transportation
costs into supply plan
• Re-plan transportation if manufacturing delays
require expediting
Mfg
Operations
Transportation Plan
Oracle Complex
Equipment Solutions
Business Intelligence
Product
Planning &
Lifecycle
Manufacturing
Management
Customer
Service
Outsourcing
Management
Technology / RosettaNet
Enable you to:
 Establish and Sustain Profitable Innovation
 Enable Lean, Agile Supply Networks
 Manage and Grow a Profitable Service Business
 Command and Control Outsourced Operations
Automatically Verify Entitlements
Accelerate Response via Seamless Contract Integration
• Define service coverage and
Service Rep
Customers
determine entitlements
• Sell different types of services
on a single contract
- Warranties, extended warranties
- Usage-based or subscription-based
• Bill accurately based on actuals
or estimates
- Time-based per regular service fees
- Usage-based per volume / incidents
• System routes customer based on
existing info (e.g., gold-level customer)
• Analyze renewals for recurring
revenue opportunities
Notifications
• Expirations
• Renewals
Instantaneous
Verification
Service
Contracts
Repository
• Coverage Times
• Response Time
Commitments
• Discounts
• Resource Preferences
• Time Zone & Breaks
Know Installed Base Configurations
Capture Information From Inception to Retirement
Design
Specs
 Record Mfg, Quality and
Maintenance Specifications
BOM /
Configuration
 Track the Status and History
of All Changes
Quality
Data
Warehouse /
Packaging
Sales /
Shipping
Ownership /
Installation
Usage /
Status
Maintenance &
Service History
Common
Product
Repository
 Manage Configurations /
“As Maintained” BOM
 Record Operational Metrics
 Review Resolution for Similar
Products With Similar Issues
 Track Depreciation and
Accounting Information
Field Service Resource Planning
Increase Productivity and Service Quality
Issues
•
•
•
•
•
•
Scheduling Criteria
General Inquiries
Call Backs
Inspections
Component Returns
Replacements
Field Repair & Maintenance
Optimizing
Engine
Optimize
Workloads &
Schedules
Products
Resource
Workload
Resources
/ Skills
Spares
Inventory
Territories
Contracts /
Customer Value
• Priorities
• Costs
• Travel Time / Distance
• Locations / Road-Level Routing
Field Service Deployment
Reduce Repair Time & Cost, Leverage Mobile Capabilities
Spare
Parts
Identify
Resolution
Needs
Create
Field Work
Order
Optimize
Schedule
Dispatch
Field
Techs
Mobile Capabilities
• View and update schedule
• Access service levels
• Update product / issue data real-time
• Order parts remotely
• Report time, material and expenses
incurred
Resolve
On-Site
Debrief
Invoice
Customer
Access Options:
• Wireless connected
• Disconnected w/ periodic
synchronization
Manage Product Returns
Support Complete Logistics & Repair Processing Needs
Direct Product Return
Identify
Resolution
Needs
In-House Repair
Generate
RMA
Exchanges
Identify
Resolution
Needs
Receive
and
Inspect
Repair,
Plan
Estimate
Refurbish,
and
and
Approve Schedule Reclaim
Store,
Ship
Debrief
and
Bill
Send Loaner
or Exchange
Shipping /
Receiving
Contracts
Mfg &
Inventory
Human
Resources
 Monitor Return of Damaged and Serviceable Products
–
–
Perform diagnostics and job estimates
Execute shipment back to customer and invoice for services rendered
 Track Repair Status and Actual Costs
 Automatically Update Product Configuration and Repair History
Billing
Installed Base Preventive Maintenance
Support Planned Maintenance & Reduce Breakdowns
• Define programs, including
• Debrief time, labor
default schedule, required
resources, and covered items
• Link programs to Contracts to
initiate coverage
• Auto-generate field work orders
& materials
• Invoice customer
• Feedback results to
plan to adjust timing
of next PM activity
Create
PM Programs
Optimize
Schedule
• Automate stocking rules
• Manage excess inventories
• Utilize automatic replenishment
rules based on lead times
Improve Spare
Parts Planning
Dispatch
Technicians &
Perform PM
Debrief &
Invoice
• Auto-generate service requests
• View customer and PM work
and tasks based on plans
• Assign resources, including
spare parts and equipment
info remotely
• Execute PM against
established procedures
Oracle Complex
Equipment Solutions
Business Intelligence
Product
Planning &
Lifecycle
Manufacturing
Management
Customer
Service
Outsourcing
Management
Technology / RosettaNet
Enable you to:
 Establish and Sustain Profitable Innovation
 Enable Lean, Agile Supply Networks
 Manage and Grow a Profitable Service Business
 Command and Control Outsourced Operations
Outsourced Manufacturing Challenges
Less Visibility, Less Control, Conflicting Information
ATP based on
supplier capacity
and availability of
optional components
Communicating
configuration changes
to multiple
supplier tiers
Enforcing
compliance to mfg
instructions and
methodology
Enforcing product
quality standards
Capturing the “as
built” genealogy and
product traceability
information
Tracking and
reporting WIP and
order status to
customers
Managing and
monitoring inventory
levels (WIP, etc)
Communicating
shipping instructions,
authorizations, and
notifications
Tracking in-transit
shipments from
supplier to customer
All the “Headaches” of In-House Manufacturing are Amplified
Example: Drop Ship from Partner to Customer
Customer
OEM
Order A
Place PO for
Component
Configure
Product ‘A’
Schedule
& Route
Place PO for A
Manufacturing
Partner (MP)
Carrier
Component
Supplier
Manufacture
& Assemble
Ship
Component
Produce
Components
Schedule Carrier
Give A
to Carrier
Drop Ship A
Pick-Up &
Deliver
OEM Process Description
• Outsources 100% of assembly
• Orders components for delivery to Partner
• Asks Partner to drop ship to Customer
• Manages shipping and customer billing
Outsource with Confidence
Achieve Total Visibility to Outsourced Mfg & Logistics
– Partner Setup –
– Outsource Mfg –
Implement Control from the Start
Seamlessly Extend Your Operations
• Model Manufacturing Partner
• Capture sales order to create MP
(MP) as an internal org to
simulate material flow, order
processing, and mfg processes
• Define BOM and routing to build
assembly at MP location
• Create operations that mimic
process at MP so status can be
tracked
• Define sourcing rules to buy
assembly from MP and buy
components from Supplier
demand for assembly and
Supplier demand for component
• Define a single, holistic supply
chain plan that includes MP and
Supplier capacity/availability
• Run plan and implement planned
order as a work order for MP
work (auto-creates assembly PO
with customer ship-to)
• Implement planned order from
Supplier (auto-creates
component PO with MP ship-to)
Outsource with Confidence
Achieve Total Visibility to Outsourced Mfg & Logistics
– Shipping –
– Monitoring –
Manage Final Delivery to Customer
Report Progress with Accuracy
• Automatically flow ship-to
requirements (address, promise
date, etc.) from Sales Order
• Select carrier based on shipping
method, price, routes, availability
• For each MP operation determine
required tracking level.
Notification of:
- Moves and Completions
- ASNs
- Physical Receipt of Goods
• Schedule pick-up from MP and
delivery to Customer
• Track shipments en-route
(punch-out to carrier systems)
• Allocate freight costs back to
Sales Order line item
– Invoicing –
Auto-Create Invoices for POs
• Pay only for amount received (e.g.,
received 20 assemblies against a
total order of 40 assemblies)
Facilitated Supplier Communications
Enable Suppliers to have Easy Access to Critical Info
OEMs Send:
•
•
•
•
•
Purchase Orders
Schedules
Bill of Materials (BOMs)
Operation Instructions
Drawings & Attachments
Export entire
structure to
Excel
Mfg Partner Send:
• Adv Ship Notifications (ASNs)
• Quality Results
• PO Acknowledgements
Attach items
to POs
Serial / Lot Genealogy and Tracking
Always Know the Source and Placement of Each Part
Manufacturing
Partner
Server
Ireland
(S.No. 512)
Acme Chip
Fab 12
PCI Board
Storage
(S.No. 717)
(S.No. 929)
CPU
(S.No. 232)
Nippon Fab
Japan
Austin
Memory
Disk Array
(Lot No. 115)
(S.No. 892)
Disk A
Disk B
(S.No. 676)
(S.No. 339)
E. Storage
Austin, TX
Where Used
Boards
R’ Us
Composition
Suppliers
SKD Co.
S. Korea
 Trace a customer shipment back to the original source
 Trace a lot or individually serialized product through supply base
Extend Reach Through 3rd Party Services
Control Scheduling and Meet Contractual Obligations
Personalized Field Technician Dashboard
Search based on
multiple parameters
View
KPIs
View spares
info, order
parts, return
defects
Toggle between
hide / show to
view summary vs.
detailed SR info
Create additional
SRs, tasks & notes
Integrated Throughout
Entire Offering…
Business Intelligence
and
Corporate Governance
Foundation: Common Data Model
A Single Source of Truth
3rd Party &
Legacy Apps
HR &
Finance
Product
Development
Customers,
Planning &
Purchasing
Manufacturing
 Immediate access
to accurate, complete
global information
Order Mgmt &
Warehousing
 Consolidate data
from multiple systems
Suppliers,
Project &
Contract Mgmt
Products, …
 Single definition of
customers, suppliers,
products, etc.
 Scale to meet
growth demands
Asset
Maintenance
Sales &
Marketing
Service
Deliver Daily Business Intelligence
Real-Time Access to Complete Business Information
What are the project schedule and budget impacts of design
How can I best adjust to planning
exceptions?
How are supplier deliveries impacting my on-time
How should I allocate production
Manage By…
–
–
delivery capability?
resources to meet variable demand?
How is my backlog of open service
–
change?
requests changing?
Objective: Set institutional targets
Fact: Provide performance-based metrics
Exception: Continuously evaluate performance
Business Intelligence:
Timely, Accurate, Relevant
Flexible
Time Periods
Flexible
Comparisons
Real-Time
Results
• Actionable info
on cost savings
and incremental
revenue
opportunities
Graphs
Performance
Measures
• Daily updates on
key performance
indicators
Links
• Role-based views:
-
Reports
-
-
Order Mgmt
Planning
Purchasing
Manufacturing
Logistics
Service
Product Mgmt
Corporate Governance
A heightened business focus on accuracy in reporting to investors
brought on by recent fraudulent practices of several major corporations
Sarbanes Oxley Act (SOX)
EU Anti-Fraud Directive (Mar 2004)
• Senior mgmt personal liability for
financial result accuracy
• Collective Board liability for financial
result accuracy
• Senior mgmt and outside auditor
attestation to the effectiveness of
internal controls
• Senior mgmt and outside auditor
attestation to the effectiveness of
internal controls
• Accelerated SEC filing deadlines
• Select Corporate Governance Code
For all U.S. companies and companies
issuing securities in the U.S.
For all E.U. companies and companies
issuing securities in Europe
Oracle Helps Drive Compliance
through Visibility, Control, and Efficiency
Corporate Governance:
Visibility, Control, Efficiency
Control
Visibility
• Identify issues early
• Enable real-time
• Integrate and centralize
business operations
• Document processes
and support compliance
• View, test, and certify
internal controls
• Manage corporate
communications
information access &
performance mgmt
• Consolidate global
financials
• Unify corporate
reporting
Centrally Manage Policies and Procedures
Provide Single Source of the Truth
• Consolidate and reconcile
Efficiency
information rapidly
• Automate business processes
and broaden use of self-service
• Simplify IT infrastructure
• Leverage best practices from
different groups / regions
Your
Company
Orders
Invoices
Customers
& Suppliers
Payments
Requisitions
Automate Processes and Extend to Customers & Suppliers
All Built on Leading Technology
Database
Server
Application
Server
Oracle Complex Equipment Solutions
Collaborative development with
integrated BOM management and
controlled ECR / ECO processing
Establish and Sustain
Profitable Innovation
Multi-tier collaborative planning,
complete CTO process with flow
mfg for mixed model production
Enable Lean, Agile
Supply Networks
Comprehensive entitlement
verification, preventive maintenance,
spares planning, and field service
Manage and Grow
a Profitable
Service Business
Complete support for tiered,
outsourced manufacturing; 3rd party
customer service coordination
Command and Control
Outsourced Operations
…Integrated Business Intelligence & Corporate Governance
Footprint: High Tech - Complex Equipment
Establish and Sustain
Profitable Innovation
• Long order-to-deliver cycles
• Industry-wide emphasis on
coupled with increasing
design complexity and
product customization
• Inability to place the right
• Inability to rapidly respond
innovation “bets” to
sustain corporate growth
to constant config changes
Oracle Enablers
Drivers
Manage and Grow a
Profitable Service Business
Challenges
• Shorter product lifecycles
Enable Lean, Agile
Supply Networks
for customized complex
configurations
differentiating systems
with value-added services
• Sustaining service expectations set during slump
• Missed or delayed product
introductions
Product Lifecycle Mgmt
Product Data Mgmt
CADView-3D
Configurator
Sourcing
Project Management
Project Portfolio Analysis
Project Collaboration
Proj Resource Mgmt
• Difficulty ensuring
consistent, high product
quality at reduced costs
Supply Chain Planning
Collaborative Planning
Demand Planning
Advanced SC Planning
Inventory Optimization
Global Order Promising
Order Capture
Order Management
Configurator, Adv Pricing
Production & Logistics
Manufacturing Scheduling
Discrete / Flow Mfg
Inv & Warehouse Mgmt
Transport Plng & Execution
• Unplanned asset
downtime disrupts
customer mfg / assy
• Escalating inventory
carrying costs
Command and Control
Outsourced Operations
• Complex coordination of
global outsourced
manufacturers and
regionally located service
providers
• Poor visibility to outsourced
production
• Difficulty ensuring customer
satisfaction when using 3rd
party services
Customer Care
iSupport
TeleService
Interaction Center
Service Contracts
Supply Chain Planning
Collaborative Planning
Advanced SC Planning
Inventory Optimization
Global Order Promising
Service Execution
Field Service
Mobile Field Service
Advanced Scheduler
Spares Management
Depot Repair
Outsourced Mfg & Logistics
Internet Supplier Portal
Discrete Mfg, Inv Mgmt
Order Management
Transportation Execution
Outsourced Service Mgmt
Service Contracts
iSupport, TeleService
Field Service, Spares Mgmt
Enterprise Infrastructure: Procurement, Financials, Human Resources, Projects, Marketing, Sales
Performance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting
Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearning
Business Process Integration: Supply Chain Trading Connector for RosettaNet, Adapters
IT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite
Services: Consulting, IT Outsourcing, Education, Support
High Technology Capabilities
Evolution of Oracle Applications in High Tech
Base Differentiators…
New in 11i.9…
New in 11i.10…
• Real-Time Shop Floor Visibility
• Configure to Order
• Supplier Collaboration & VMI
• Inventory Postponement and
• RosettaNet Transactions
• Product Data Mgmt
• Consigned Inventory
• WIP Serial Tracking
• Partner Program Mgmt
• 3rd Party POS Data Import
• Product Data Hub
• Project Portfolio Analysis
• Global Sales & Operations
Optimization
• Lot/Serial Genealogy
• Collaborative Planning
• Advanced WIP & Yield Mgmt
• Planned Stocking Points
• End Item Substitution
• Allocated ATP
• Lead to Quote to Order Mgmt
• Waterfall Analysis
• Service Contracts
• Integrated Service Mgmt
(to calc Promotional Accruals)
• Outsourcing Support for
Multi-Level Configurations
• Advanced Configuration
Modeling
• Resource Centric Scheduling
Workbench
• Integrated Maintenance and
Production Planning
• Quote & Proposal Mgmt
Planning
• Inventory Optimization Analytics
• Channel / Partner Management
• International Drop Shipments
• Transportation Planning
• Customer Consigned Inventory
• Option-Dependent Sourcing
• Procurement Contracts
• Special Pricing (Ship & Debit)
• Automated Spare Part Return
and Repair Processes
• RFID Transaction Support
• Trade Planning and Execution
• Deal Registration
Lower Total Cost of Ownership (TCO)
E-Business On Demand
Run on a Single Global Instance
Roles:
Needs:
App Admin
DB/AS Admin
Sys Admin
Consolidate Data Centers
and Databases
Low Cost Linux Hardware
HW Admin
Availability
Security
Performance
Change
Production Midtiers
100% Linux
Production DB
RAC Cluster (Unix)
Demo Environments
100% Linux
Development
100% Linux
Outsourced Customers
70% Linux
Oracle
Manages:
50% Lower Cost
50% Better Svc
Core Competence
Predictable Cost
Problems
Standardized Open Integration Platform
 3x Faster, 5x Cheaper
 Easy to Automate en Mass
 Highly Reliable
Oracle’s Experience with Linux
You
Manage:
• Business Events Infrastructure
• Industry Standard Protocols
• Centralized Integration Repository
Customers,
Suppliers,
Products, …
Simplify B2B Integration,
Application Connectivity,
and Process Management
Lower Total Cost of Ownership
Run on a Single Global Instance
Support Global Operations
 30 Languages
 Multiple Currencies
 Customers in 100+ Countries
 All Languages Installable in Same Unicode Instance
 Support for Statutory and Customary Local Requirements
Lower Total Cost of Ownership
Standardized Open Integration Platform
 Provide a unified view of customer data
 Protect and share information assets across all systems
 Standardize, cleanse
and enrich data
 Synchronize data
in near real-time
Siebel
Customers,
 Support key interactions
–
–
–
Suppliers,
Orders
Contracts
Service history
 Leverage pre-built
analytics
PeopleSoft
Products, …
Broadvision
Example: Customer Data Hub
Legacy
Customer
Case Studies
 Leader in test devices, semiconductors, and chemical analysis tools
–
$ 7.18B revenue in FY04; customers in 120+ countries; 29K employees
 Live on Oracle for global 24/7 operation
–
Quoting, Adv Pricing, Order Mgmt, iStore, Adv Supply Chain Planning, Purchasing,
iSupplier Portal, Mobile Supply Chain Applications, Financials
–
Enterprise-wide implementation of Oracle Applications planned for:
- 4 distribution centers
- 37+ manufacturing sites
- 6 customer service centers
- 3 financial centers
–
15K named users globally, 5K concurrent users, 100K concurrent requests daily
–
Entire semiconductor business on Oracle ERP
- Runs optimized ASCP for 75K+ items & 6M+ resource requirements
- Runs worldwide order mgmt and manufacturing operations using real-time
synchronization to OSFM and constrained Global ATP
- Manages over 1,000 shipments daily using Mobile SC Apps
- First semiconductor company to use EDI-driven Oracle Release Mgmt for VMI
 Oracle E-Business Suite met over 4,500 Agilent
business requirements without any customizations
American Power
Conversion Corp.
 $1.4B world leader in IT equipment power protection
–
16 manufacturing & 25 distribution sites worldwide, serving 120 countries
 Live on 11i -- single data center in Rhode Island
–
–
–
–
Discrete Manufacturing, Advanced Supply Chain Planning, Order Mgmt,
iProcurement, Financials, Human Resources, Self Service HR
Adding Configurator, Advanced Pricing, Mobile Supply Chain Apps
Consolidated 13 systems into a single global instance
3200+ users (700 concurrently), 3600 order lines/day across 50+
organizations at 10 sites
“Having an integrated set of application modules in a single instance…you
get a global perspective in one place in real time.”
– Lisa Sipe, CIO
 Reduced raw material and finished goods inventory by 56%
 Match customer requirements to global availability
 $419M worldwide leader in high-performance open storage
networking solutions
–
–
1020 employees across the U.S., Europe and Asia
Replaced Siebel and SAP with Oracle
 Live on 11i – single global data center
–
Sales, Incentive Comp, Order Mgmt, Configurator, Discrete Mfg,
Warehouse Mgmt, TeleService, iSupport, Depot Repair, Svc Contracts,
Procurement Financials, Human Resources (inc self-svc), Payroll
“McDATA's challenge of growing international business operations can only be met with
a flexible open system like Oracle E-Business Suite. Buying disparate "best-of-breed"
applications requires costly and time-consuming integration services. Oracle offers a
seamless, fully integrated, modular business solution.”
– Don Wenninger, CIO
 On-time shipments increased from 79% to more than 97%
 Reduced total inventory 75%
 Reduced service operations cost structure by 50%
 Leading provider of standards-based IP communications solutions
–
Alcatel e-Business Networking Division is a division of Alcatel with a
customer base of 500,000+ customers
 Live on 11i
–
–
Adv Supply Chain Planning, Demand Planning, Procurement, Discrete
Manufacturing, Order Management, Human Resources, Financials
Reduced break-even point for new product launch (new switches line) by
more than 40%
“Because of the visibility we now have across our virtual supply chain, we have been able
to significantly reduce inventory liability. Instantly sharing information about changes in
demand or supply with our outsourcing partners gives us all the most precise view of
where bottlenecks may occur. To me, this is a real competitive advantage.”
-- Gary Schliekelman, Director of Planning
 Decreased inventory levels by 50%; expect $15M annual savings
 Reduced planning cycle time by 75%
Oracle Complex Equipment Solutions
Establish and Sustain Profitable Innovation
Enable Lean, Agile Supply Networks
Manage and Grow a Profitable Service Business
Command and Control Outsourced Operations
Information Age Applications
Appendix:
RosettaNet Offering
Current Integration Shortcomings
Latent, Linear Information Flow
Sub
Assy
EMS
Comp
Mfg
Comp
Mfg
OEM
EMS
Fab
Large
Supplier
3PL
Small
Supplier
 Information Delays
and Distortion
 Poor Planning
Synchronization
 High Forecast Variability
 Lacking Visibility
to Exceptions
 Missing Inter-Enterprise
Strategy
RosettaNet At-a-Glance
Developed by High Tech for Fast-Paced Business
 Agreed-Upon, Processes for Business Over the Internet
 XML-Based Standards to Support Processes
–
–
–
PIPs: Defined business processes between trading partners
TPAs: Electronic “business contract” between trading partners
RNIF: Document exchange process; specifies authentication, etc.
 Advantages
–
–
–
–
Eliminate information latency; provide global, real-time visibility
Achieve high degree of scalability, extensibility and flexibility (not EDI)
Decrease transaction costs over time
Architected for the business user
Extend Process Integration Beyond Your Company
Oracle’s RosettaNet Solution
Your Company
Customers
Business Process
Management
Real
Time
XML
Trading Partner
Management
RosettaNet PIP
Check:
• Contents
• Process
• Transport
XML
TPAs
A
d
a
p
t
e
r
Security
Validation
Transform
Logging
Transaction
Monitoring
Mgmt
A
d
a
p
t
e
r
RosettaNet PIP
XML
Check:
• Contents
• Process
• Transport
TPAs
Run-Time / Common Services
Real
Time
XML
Suppliers
Oracle.com
Oracle
11i Apps
Oracle Trading Partner Solution
Adaptive Infrastructure for Dynamic Businesses
• Seamless Connectivity Between Public & Private Processes
–
–
–
Private processes trigger public processes
Pre-built mappings for in and outbound process integration
Support for existing IT infrastructure
• Rapidly Achieve Critical Mass with Trading Partners
–
–
–
–
Empower business users to initiate and manage relationships
Leverage same PIP for multiple partners
Integrate to legacy / 3rd party systems via adapters
Small-to-medium enterprise focus; self-service and affordability
Oracle Trading Partner Solution
Complete on Integrated Technology Stack






Integrated tools for easy TPA creation, management & validation
Integrated business intelligence and data analysis
Integrated business portal for visibility and transactions
Integrated workflow and process management tools
Integrated trading partner performance (TPA, real-time status, etc.)
Integrated security and RNIF support without service fees
100% Pre-Integrated
$$$ Integration
Bus Proc Mgmt
B2B Integration
Manage
Business
Collaboration
Web Services
vs.
Intelligence
TPA Mgmt
Middleware
Portal & Workflow
Security/RNIF Support
Manage
Technology &
Maintenance
Sample Product Info Flow
2A12 PIP Capability:
Supplier
(OEM)
Buyer
(Customer)
Workflow Driven
Distribute Product Master
Enables supplier to create
product master and distribute
device-level product
identification to a buyer
Collaboration
Specify Requirements
Check w/ Mfg
Real
Time
Create
Prod Master
Notification
Product family attributes
Location-specific data
Procurement data
Product lifecycle info
Check w/ Supplier
Approve
Send
Message
2A12
PIP
Receive
Message
Load
MRP
Process
Prod Master
Notification
3A2
PIP
Check Prod
Availability
Workflow Driven
3A4
PIP
Procure
Product
Sample Planning Flow
4Ax PIP Capability:
Buyer
(OEM)
Workflow Driven
Collaborative Forecasting
Process for developing
collaborative forecasts
between buyer and
supplier
Collaboration
Check w/ Sales
Real
Time
Check w/ Channels
Check Inventory
Create Forecast
Receive &
Analyze
Response
Send
Forecast
4A4 PIP
Supplier
(Component)
Receive
Forecast
Check w/
Mfg
Start
Collaborative
Planning
4A5 PIP
Check w/
TPA & Create
Response
Adjust
Forecast
Workflow Driven
Send
Response
Sample Manufacturing Flow
Work In Process (WIP) Reporting
7Bx PIP Capability:
Supplier
(Component)
Workflow
Process for supplier to
distribute work in process
information to buyer
Check Inventory
Check w/ Supplier
Collaboration
Create
WIP
Notification
Real
Time
Check w/ Mfg & Assy
Receive
Error
Notice
Send
Message
Buyer
(OEM)
7B1
PIP
Receive
Message
Analyze
Notification
Create & Send
Error Notice
Check
for Errors
Workflow Driven