The much-anticipated, action-packed…
ORACLE LEGAL DISCLAIMER
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 Oracle’s 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.”
THE INFORMATION COMPANY
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Oracle Advanced Planning
An Overview for NorCal OAUG
Training Day 2006
Tom Greene
Senior Solution Consultant
West Commercial Apps Region
Today: Some ‘Tough Nuts to Crack’
Business trends are forcing you to consider new strategies
TRENDS
ADAPT YOUR BUSINESS MODEL
Higher degree of uncertainty
Get visibility to all demand
Manage to uncertainty by postponing inventory
Increased global competition
Focus on core competency –
Increase outsourcing
Mass customization
Move point of product differentiation
closer to customers
Focus on customer service to
ensure brand loyalty
Provide reliable and accurate
commitments to customers
Limited money to invest in IT
Lower cost of ownership of apps
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Traditional Approach
Multi-step planning processes, high latency, limited collaboration
CUSTOMERS
SUPPLIERS
Tier 2
Tier 1
Fax
Paper

Response 1:
Maintain Excess Inventory

Response 2:
Reserve Production Capacity

Response 3:
Expedite Everything!
Paper
Distribution Production Manufacturing
plans
plans
plans
Marketing
?
Sales
Manual
reconciliation
Mfg.
Demand Planning
Long planning cycles
Supply Planning
Supply Chains built on
INVENTORY
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Move to A More Competitive Model
E-Business planning solution: zero latency, real-time collaboration
CUSTOMERS
SUPPLIERS

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
Tier 2
Tier 1
Portal
Portal
Automated Exceptions
Marketing
Manufacturing
Sales
Mfg.
Demand Hub & Multidimensional analysis
Consensus forecast and
production plan
S&OP Process
Single
holistic plan
Supply Planning
Supply Chains built on
INFORMATION instead of
Inventory
Business Intelligence
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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.
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Oracle Advanced Planning
Solution
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Oracle Advanced Planning
Complete e-business planning solution
SCI
Supply Chain Intelligence
SNO
Maintain
Service
Fulfill
Finance
HR
All Product,
Customer,
& Supplier
Information
Make
Procure
Projects
Plan
Order
Sell
Market Develop
From detail to summary
Network Design
Sales and Operations
Planning
DP
Demand Planning
Inventory Optimization
IO
Supply Chain & Manufacturing Planning ASCP
Global Order Promising
GOP
Distribution Planning
ASCP
Production Scheduling
PS
SC Exception Management CP
Collaborative Planning
From short-term to long-term
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
CP
Key Capabilities
in Order of a ‘typical’ High-Tech Adoption Lifecycle
 Sales and operations planning
 Holistic planning and optimization
 Zero downtime global order promising
 Multi-tier collaborative planning
 Inventory postponement optimization
 Strategic network design
 Real-time production scheduling
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Sales and Operations Planning
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Sales and Operations Planning
Complete and integrated process
INPUTS
PLANNING
Financial plan
Budget plan
Sales opportunities
Trade promotions
Ship and book history
Current order backlog
Inventory history
Production history
Production backlog
Customer forecasts
PROCESS
Inventory and
service levels
Demand Plan
Capture all demand in one place
Determine consensus forecast
- Determine new product plan
Exception
management
Supply Plan
Balance supply, demand, and
budgets:
- Determine inventory targets
- Determine supply plan
- Determine allocations
Evaluate and adjust plans
Sales Plan
Production Plan
Bookings Forecast
Management
Reports
OUTPUTS
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Sales and Operations Planning
Key capabilities

Demand Hub
–
–

Drive to a consensus forecast
–

Make allocation decisions while trading off service
levels and cost
Adapt and adjust to changing business
conditions
–
–

Use analytics and intelligence to achieve a
consensus demand
Balance demand, supply, and budgets
–

Capture all demand data in a central place
Collaborate internally and externally
Adjust demand or supply plan as conditions change
Drive continuous improvement
Integrated solution with built-in business
intelligence
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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
Portal
–
Internet

Configurable and extensible
–
ERP Transaction
Flat file loads
EDI Transactions
–
ERP Systems
APIs

Demand
Hub
–
Marketing
Sales
Spreadsheets, XML, EDI, portal
Audit exceptions
Integrated
–
Finance
Meta data driven
User-defined dimensions and
hierarchies
Open
–

Customer and supplier forecasts
POS data
Sales and marketing forecasts
Financial forecasts and budgets
User-defined data (spreadsheets)
Out-of-the-box loads for Oracle ERP
Manufacturing
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
S&OP – Demand Planning
Drive to accurate consensus forecast
CUSTOMERS
SUPPLIERS

Tier 2
Compare and consolidate disparate forecasts
–
Tier 1
Portal
–
Portal
Automated exceptions

Internet
Collaborative
demand plan
Improve forecast accuracy
–
–
–

Demand
Hub
–
Demand Planning Process

Marketing
Sales
Manufacturing
Move from a regimented periodic to a continuous
demand planning process
Get real-time visibility to demand adjustments via
internal collaboration
Improve sales promotion planning
–
Finance
Better statistical forecasts
Forecast planning percentages for models and options
Get visibility to customer demand changes
Improve demand planning cycle time
–
Consensus
forecast
Sales, marketing, manufacturing, customers, suppliers,
Point of Sale (in units or $$)
Use multi-dimensional analysis to adjust, allocate, and
rollup
–
Forecasting integrated with promotion planning
Measure effectiveness
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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
–
–

Synchronize
YOU
Improve delivery performance
–
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
Introduction of new products
Phase-out of obsolete products
–
–
User-defined exceptions
Proactive notifications
Automated exception handling via workflow
Sales
Forecast
SUPPLIERS
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
S&OP – Alcoa
COMPANY PROFILE







BEFORE ORACLE
$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




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
Benefits
• 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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Holistic Planning and Optimization
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Holistic Planning and Optimization
Faster and better supply chain plans
Long-term planning
Customers
Suppliers
Plants
Discrete
 Unified solution for supply chain and
manufacturing planning
Flow
 Segment the problem as needed
Project
 Optimization for planners not
programmers
Internet
Warehouses
Process
DCs
Semicon
 Scalable and reliable
Short-term planning
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Holistic Planning and Optimization
One solution for comprehensive supply chain and mfg planning

Supply Chain 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

Manufacturing Planning
–
–
–
–
–
–
–
–
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Holistic Planning and Optimization
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
Evolve planning model at your
own pace
–
MRP Org 1 MRP Org 2 MRP Org 3
Multiple MPS, multiple MRP
MPS for BU 1
MRP
Org 1
MRP
Org 2
MRP
Org 3

Single plan or multiple plans
Re-configure easily by modifying plan
options instead of re-implementing or
re-modeling
Multiple models can co-exist
MPS for BU 2
MRP
Org 4
MRP
Org 5
MRP
Org 6
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Holistic Planning and Optimization
Highly adaptable – Customer examples


Interceramic
–
–
–
–
–
Suppliers
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
Constrained
SC plan
Distribution
chain
Customers
Knowles Electronics
–
–
–
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
DRP plan
Collaborative
demand
plan
Constrained
MPS plan for
all facilities
Knowles Electronics has
reduced inventory by $1M per
month after implementing
Advanced Planning
Inventory
postponement
plan
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Holistic Planning and Optimization
Optimization “For planners, not programmers”

Make better decisions faster
–
–
–
–

Out-of-the-box optimization
–

Level load
Choose alternatives
Make/buy decisions
Late demand diagnosis
Use costs or decision rules
Start quickly
–
–
Planners define the problem to solve
Flexible defaulting
GE AE has moved from running
in 36workload
facilities to running
 separate
Reduceplans
planner
a single holistic plan across their DCs, end-assembly, contract
manufacturing, and component shops, and as a result has reduced their
planning organization significantly
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Holistic Planning and Optimization
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…
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Zero Downtime Global Order
Promising
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Zero Downtime Global Order Promising

Promise orders based on:
–
–
–
–

Global statement of availability
–

Promise based on optimal supply decisions
Allocate available supply and capacity
–
–

All facilities, material, resources, and suppliers
Drive fulfillment decisions based on
demand and supply plans
–

Material availability
Manufacturing capacity
Transportation capacity
Supplier capacity
By channel, customer, or product
Priority and stealing rules
Manage commitments to key customers
–
Re-schedule and re-sequence your backlog
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Zero Downtime Global Order Promising
Guaranteed uptime and consistency via patent-pending architecture
Typical Approach
Promise Orders
? ? ? ? ? ? ?
Current plan
Downtime or
Inaccurate orders
Copy
Run
Promise Orders

Zero downtime
–
New plan
–
Copy
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

Open, reliable, and scalable
–
Oracle Approach
–
Promise Orders
Promise Orders
Current plan
New plan
Copy
Run
–
–
–
Engine runs inside the database
No memory models to load!
Multi-threaded
Integrated with OM, iStore, and Call
Center
Easily integrate with legacy systems
Sync &
Re- Swap
promise
Run new plan
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Zero Downtime Global Order Promising
Customer examples
Agilent Technologies
Cisco







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

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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Multi-Tier Collaborative Planning
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Multi-tier Collaborative Planning
Full visibility and synchronization across the extended supply chain
CUSTOMER
Demand
‘systems’
Run plan
CONTRACT
MANUFACTURER
YOU
SUPPLIER

Plan your extended supply chain
–
Consensus
forecast
–
–
Supply
forecast
Demand ‘boards’
–
Run plan

Supply commit ‘memory’
Forecast ‘memory’
Reduce inventory cost and improve
fulfillment
–
Supply commit
‘boards’
–

Suppliers manage your inventory
Manage your customers’ inventory
React quickly to supply chain
exceptions
–
–
–
Optional
Share forecasts and supply commits with
customers and suppliers
Get visibility to supplier capacity
Reallocate key components
Make alternate sourcing decisions
Waterfall analysis
User-configurable exceptions
Automated exception handling via workflow
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
VMI and Consigned Inventory
Automate inventory replenishment with suppliers and customers
CUSTOMER
VMI Agreement
YOU
VMI Agreement
(with customer)
SUPPLIER
VMI Agreement
(with supplier)
Check
inventory
status
Send consumption
advice
Receive items
Pay on receipt/use
VMI Agreement
Ship items
Receive items
Pay on receipt/use
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Ship items
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Inventory Postponement
Optimization
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Inventory Postponement Optimization
Manage to uncertainty, reduce inventory, improve customer service
Without Postponement
Customers
Regional
Distribution
Centers
With Postponement

Inventory levels and policies are
synchronized across the entire
supply chain

Manage to uncertainty
–
Central
Distribution
Centers
Demand, supply, and lead-time
variability

Pull model, driven by point of
postponement

Higher customer service at lower
inventory cost
Contract
Manufacturers

Time-phased safety stock buffers
at all levels
Suppliers

Multiple target service levels
Final
Assembly
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Inventory Postponement Optimization
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Inventory Postponement Optimization
Key capabilities

Without
Oracle
Reduce inventory without sacrificing
customer service
–
Inventory Investment
–
With
Oracle
Lower
Inventory
Cost

Manage supply chain variability

Choose the best service level strategy
based on cost and revenue
–
Invest in profitable channels, products,
and customers

Manage seasonality and product life
cycle characteristics
Higher Service Level
30
50
75 80 85 90 95 100
Service Level
Inventory budget constraints

–
10
Postponement
Risk pooling

Recommend time-phased safety stock to supply
planning
Out-of-the-box optimization
–
For planners, not programmers
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Reduce inventory
without impacting
customer service
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Simulate multiple
scenarios to find the
optimal trade-off
between cost and
service level
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Inventory Postponement Optimization
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%
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Strategic Network Design
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Strategic Network Design
Key capabilities

Optimize your supply chain network
–
–

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
–

Use demand scenarios as input
Compare time-phased network configurations
Output best sourcing strategy for downstream supply chain
and inventory planning
Simulate changing business conditions
–
New businesses and new markets
Outsourcing decisions
–
Demand scenarios
–
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Strategic Network Design
Proven deployment success and ROI: 300+ customers
BASS BREWERS
75% Inventory reduction
5% Capacity improvement
NABISCO FOODS
70% Inventory reduction
20% Capacity improvement
OWENS ILLINOIS
20% Inventory reduction
KIMBERLY-CLARK
50% Inventory reduction
Planning cycle reduced 20%
COCA COLA - FEMSA
50% Inventory reduction
25% Stock-out reduction
KRAFT FOODS - EUROPE
50% Inventory reduction
Planning cycle reduced 86%
DOW CHEMICAL
$ 350M Inventory reduction
Carrier rationalization from 200 to 12
FORT JAMES
15% Inventory reduction
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Real-Time Production Scheduling
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Real-Time Production Scheduling
Key capabilities

Maximize production throughput
–
–
–

Model all elements of your shop floor
–
–
–

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
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)
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Real-Time Production Scheduling
Customer examples
GE Energy
Toyota Racing Division









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



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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Integrated Performance Management
and
Process Automation
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Integrated Performance Management
Closed-loop plan-execute-measure-adapt process
PLAN TO PERFORMANCE
• Planned utilization
ASCP • On-time delivery
• Planned margin
DP
• Forecast accuracy
• Margin analysis
• Promotion effectiveness
IO
• Service level analysis
• Plan versus profit
• Postponement savings
TP
• Carrier contract utilization
• Cost per unit weight
• Cost per unit volume
CP
• Supply commit variability
• Order forecast variability
BUSINESS INTELLIGENCE
Execute
transactions
Define targets
PROCESS
Identify key performance
measures and set targets
Calculate KPIs and compare to
plan; notify decision makers of
exceptions
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
Management
Reports
Role-based portals
OUTPUTS
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Process Automation
Increase planner productivity

Automated end to end planning process
–

Automated plan execution
–

Completely integrated business process flows
across all products
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Scalable and Open Architecture
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Scalable and Open Architecture
Database-centric architecture
TRADING PARTNERS
INTERNAL USERS

High performance
–
–
–
Portal
Portal
Internet
Order Promising
Engine
Analytical
Workspaces

Reliable
–
–
Oracle ERP
–

APIs
KPIs
Workflows Plans
All plan information resides in the database
Hot backup and recovery
Leverages grid computing infrastructure
Open and standards based
–
Advanced Planning
XML
EDI
Flat file
In-memory only when needed
Multi-threaded snapshot
Leverages key database features like
materialized views, partitions, and
analytical workspaces
–
–
Runs against all versions of Oracle EBS
11.0, 11i
Deploy against legacy systems
XML, flat file, EDI support
Legacy Systems
Legacy Deployments
Cochlear, Embraer, FXAP, NCR, Interceramic, Perkin Elmer,
GE Transportation Aircraft Engines, Xilinx, …
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Momentum
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
A Few Live Customers …


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









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
Cervecería 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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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%
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Inventec Multimedia & Telecom, Taiwan
COMPANY PROFILE
•
•
BEFORE ORACLE
Large contract manufacturer of voice and digital imaging,
and voice and data transmission products
$360M revenue
PLANNING BENCHMARK
•
•
•
•
•
•
•
•
•
•
AFTER
ORACLE
• 4 month
implementation
•
End-to-end planning run = 2 hrs
Collaboration with 150 suppliers
Full CPFR implementation
•
•
•
•
•
•
•
Benefits
•
•
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
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
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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
WITH
AFTERORACLE
ORACLE
PLANNING BENCHMARK
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
•
•
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
•
•
•
•
•
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
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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Toshiba TEC, Worldwide
Global planning deployment – Multi Instance
Distribution Sites
Manufacturing Sites

MRP
Europe
China
Forecast
Orcl 11.0

MRP
Orcl 11i
Malaysia
$3.1B manufacturer of document
processing equipment
Previous process
–
Orcl 11.0
–
US
Orcl 11i
Japan
Forecast
Orcl 11.0
MRP

Current process
–
Toner Mfg Plant
–
–
–
Resource and material
constrained
Production Plan (MPS)
Advanced Planning 11i

–
Orcl 10.7
Japan – Distribution Sites
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
Benefits
–
Forecast
Multiple regional ERP instances
Decentralized planning process
–
Moved from a monthly planning cycle to a
weekly cycle
Reduced manufacturing cycle times
Optimized worldwide inventory levels
Read their online testimonial
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Agilent, Worldwide
Highly complex, large scale model
SEMICONDUCTOR PRODUCTS GROUP (SPG)
TEST and MEASUREMENT, and AUTOMATED TEST GROUP (ACE)
•
•
$1.586B net revenue (FY03)
$2.53B and $0.76B net revenue (FY03)
BEFORE ORACLE
BEFORE ORACLE
•
•
•
•
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•
•
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•
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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
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
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
•
•
•
•
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
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 ~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





BEFORE ORACLE
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




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




Benefits
•
•
•
•
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
Optimization of entire worldwide supply chain network
Reduced inventory by 40%
Reduced lead times by 20%
Strongly improved resource utilization, globally
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Dow Chemical, Worldwide
COMPANY PROFILE





BEFORE ORACLE
HQ in Germany
Manufacturer of chemicals
$28B revenue
7 manufacturing facilities
Customers worldwide




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





Benefits
•
•
•
•
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
Optimization of entire worldwide supply chain network
Reduced inventory by $350 million
Reduced carriers from 200 to 12
Strongly improved resource utilization, globally
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Cervecería 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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Quilmes Capacity Planning
Developed regional SNO model to answer critical logistics questions
Deployment of
inventories?
Sourcing of
raw materials?
OW?
When?
Increases / divestment ?
Brewing
Bottling
Demand
How much?
Warehouse
Malt?
Supplier
What?
What?
When?
When?
How much?
How much
Demand
Supplier
Demand
DC
Brewing
Bottling
Interplant
movements?
Interplant
movements?
Warehouse.
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Where from?
Seasonal
changes?
Quilmes Capacity Planning
Developed regional SNO model to answer critical logistics questions
 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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
How To Get There ?
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Start with Unconstrained ASCP
Better MRP solution at low initial cost

Improve planner productivity
–
ASCP
–

Reduce your planning cycle time from
months to hours
–
–
Unconstrained

–
APS Common Infrastructure


Improved exception resolution
Improved modeling
Reduce non-value added costs
–
Oracle Applications
(11.0, 11i)
Holistic planning
Improved scalability and performance
Make better decisions faster
–
MRP
New productivity enhancing UI
Planner collaboration
Workflow based exceptions
Drive continuous improvement
–
Integrated business intelligence
Foundation for future growth
Common infrastructure
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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
–
–
–

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
–
–

Simultaneous material and capacity planning
Plan process and discrete mixed models
Perform forecast consumption inline
Comprehensive exception management and automation through workflow
Extensive pegging capabilities
Measure plan to target performance
–
Integrated performance management
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Leverage a stronger foundation for
future growth
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
1. Improve The Quality Of Your Plans
Use constraints and optimization to improve decision making

Improve plan quality
–
ASCP
Optimized
–
Automatically recommend alternative
suppliers, components, resources, facilities,
and routings
Generate feasible plans that respect your
material and resource constraints
Constrained
Unconstrained
MRP

Make better decisions faster
–
APS Common Infrastructure
–
–
–
Oracle Applications
(11.0, 11i)

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
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
2. Expand Your Solution Footprint
Start with your most important problem
Sales and Operations Planning

Demand Planning
ASCP
Network Design
Optimized
Inventory
Optimization
Constrained
Collaborative
Planning
–


Unconstrained
Global Order
Promising
APS Common Infrastructure
Promise more reliable dates to customers
Collaborative Planning
–

Oracle Applications
(11.0, 11i)
Improve service level at lower inventory cost
Global Order Promising
–

Improve forecast accuracy
Inventory Optimization
–

Optimize your supply chain network
Demand Planning
–

Balance demand, supply, inventory and budgets
Network Design
–
Production
Scheduling
MRP
Sales and Operations Planning
Automate inventory replenishment and supply
chain collaboration with your trading partners
Production Scheduling
–
Maximize your production throughput
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Integrated, yet Modular
Leverage integration at incremental investment
PLANNING PROCESS
Forecast scenarios
Sales and Operations
Planning
Network Design
Demand Planning
Forecast and
demand variability
DP
Forecast
Inventory Optimization
Sourcing
rules
IO
Time-phased safety stocks
Supply Chain and Manufacturing Planning
Firm supply
schedule
Planned
orders
Production Scheduling PS
SNO
ASCP
Sourcing
rules
Constrained plans
Global Order Promising GOP
Supply
commits
Order
forecast
Order
forecast
Customer
forecast
Supplier capacity
Collaborative Planning
SUPPLIERS
CP
CUSTOMERS
Today
Coming
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Summary
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Oracle Advanced Planning
E-Business planning solution: zero latency, real time collaboration
CUSTOMERS
SUPPLIERS
Tier 2
Tier 1
Portal
Portal
Automated Exceptions
Marketing
Manufacturing
Sales
Mfg.
Demand Hub & Multidimensional analysis
Consensus forecast and
production plan
S&OP Process
Single
holistic plan
Supply Planning
Business Intelligence
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Why Oracle!
 Integrated planning, execution, and collaboration

 Holistic planning and optimization

 For planners, not programmers

 Integrated performance management

 Lowest total cost of ownership

“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
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
–
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Q U E S T I O N S
A N S W E R S
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
INFORMATION AGE APPLICATIONS