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transcript
Practical Approach to Providing Capable to Promise
Order Promising Lite
Session ID#: 101680
August 9, 2016
@craigehill, @CATechnologyLLC
Prepared by:
Craig E. Hill
EVP, Delivery
C&A Technology LLC www.catechnology.com
Agenda
People & Companies Involved
Solution Overview – what’s “lite” about it?
Shortage and Capacity Refresh
Order Promising Engine
OP Engine Output
Order Promising Exceptions WorkbenchResults
People Involved
■ ASSA ABLOY – largest global supplier of door opening
solutions (almost $8B in revenue)
▪ Nina Williams – Master Planner – EMS & OEM
▪ Haresh Khilnani – Manager, Enterprise Applications, JDE
Systems Architect, the Americas
▪ Eric Bergeret – Manager of Customer Service – EMS &
OEM
▪ Nick Schultes – Business Unit Manager for EMS/OEM
group
■ C&A Technology – Oracle Gold Partner – JDE specialists
▪ Brad Darr – JDE Distribution/SCM Consultant
▪ Craig Hill – EVP of Delivery
Why are Accurate Promise Dates Required?
• Effective order promising can save the sale when a fixed lead time promise date would have been too conservative
• or when current stock is limited, but more is on its way.
Save the sale
• Just as importantly, it can prevent unrealistic promise dates that lead to late deliveries
Unrealistic promise dates • Part of Oracle VCP family of
products
• Industrial strength solution
• Industrial strength budget
Oracle Global Order Promising
• Considers supply, lead times and capacity
• Works well if BOM is no more than 3 to 5 levels deep
We developed a practical approach:
Order Promising Lite
https://www.youtube.com/watch?v=argdPEmD9bI
So What’s Practical About OP Lite?
At OE Time, Promise Date simply
calculated by adding:
• Manufacturing Lead Time to Current Date
Then Promise Date checked in enhanced order release UBE, if
not in stock
• Checks purchased component availability
• Checks manufacturing capacity
• Moves promise date out, if required
• Sends an acknowledgement if promise date isn’t past user defined threshold (ASSA ABLOY chose 7 days)
• Otherwise puts order line in status for review
UBE=batch job (universal batch engine)
6
Solution Overview: Order Promising Lite
Comprises of 2 program streams:
A subsystem JDE batch program, which calculates the Promised Delivery Date for Sales Order lines. In case of exception scenarios, it writes to an Exception table
A JDE batch program, which executes hourly via scheduler, and refreshes Shortage and Capacity tables
Shortage and Capacity Refresh
Order Promising Engine
7
OP Engine Output Details The OP Engine calculation has the following output scenarios:
Scenario Promised
Delivery
Date
SO
Line
Status
OE Header
Status
Exception
Table
1. PDD for all SO Lines on an Order
found within next 7 business days,
and no more than 2 distinct PDDs
were calculated
Updated 528 ->
530 (All
SO lines)
Scheduling
Complete –
Released to
Factory
None
2. PDD for all SO Lines on an Order
found within next 7 business days,
but more than 2 distinct PDDs
were calculated
Updated 528 ->
530 (All
SO lines)
Schedule
Manual
Review
Exception
message:
More than 2
PDDs calculated
3. PDD for some / all SO Lines on an
Order not found within next 7
business days
Updated only
for those SO
lines which did
not have
exception
528 ->
530 (SO
Lines
without
Exception
)
528 ->
529 (SO
Lines with
Exception
)
Schedule
Manual
Review
Exception
messages:
All SO Lines
could not be
scheduled in
next 7 days
PDD=Promised Delivery Date
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Solution Detail – Shortage and Capacity Refresh■ Invoked frequently during business hours
■ Includes Sales Orders meeting the following criteria:
▪ Supply Demand Inclusion criteria for OP Lite Refresh, and
▪ Where Sales Order line has Request Date <= Today + 7 business days.
▪ For example, only the sales orders which have gone through OP engine (status
530) and not yet manufactured / picked (status less than 545) will be included in
Inclusion rules for OP refresh.
Explodes the BOM (using Net Quantity of Parent SO Items) to generate Component demand. Aggregates this component Demand by Item.
Solution Detail – Shortage and Capacity Refresh
Generates data in 2 tables
▪
— Contains purchased component availability
In addition to standard JDE availability:
• Net Availability (which includes demand from parent SO items not fulfilled from
stock)
• Next Purchase Receipt date (based on F4311 / F43121)
• Net Available Negative Date (date within next 7 business days, if and when Net
Available goes negative)
▪
— Contains work-center and date-wise capacity utilization (Hours Used vs. Available)
— Enhanced to also generate based on unavailable Sales Order items that need to be
manufactured
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F55OPSHT (Shortage Table)
F3311 (Capacity Utilization
Table)
Component Shortage and Capacity Refresh Calculation Features
■ Aggregates the total demand by SO Item
■ Reduces from aggregate demand by SO Item
▪ (On Hand - On Hold - Safety Stock)
▪ Gives the Net Demand that is not available in stock and needs
to be manufactured
10
Component Shortage and Capacity Refresh Calculation Features
11
Calculates: ‘On Hand’, ‘Available’, ‘On PO Receipt’, ‘On WO Soft’ and ‘On WO Hard’
‘On SO Quantity’ (Aggregated component demand from BOM explosion)
‘Shortage Flag’: If ‘Available - On SO’ is < 0, mark as Shortage component item
‘Next PO Receipt Date’: Comes from F4311, or if no PO exists, a dummy date far off in future
Generates capacity messages and load profile based on Work Orders
Solution Detail – Order Promising Engine
■ UBE invoked when the lines are released
■ Include Sales Order lines:
▪ Meets Supply Demand Inclusion criteria for OP Refresh
▪ Where line has Request Date <= Today + 7 business days (user defined)
▪ Order is not on Hold
▪ Order is not excluded from OP engine via manual flag at SO Header level
■ Use data in F55OPSHT (Shortage) and F3311 (Capacity) to calculate
promised delivery dates
■ Also:
▪ Updates Sales Order Line Statuses
▪ Updates Sales Order Header Status
▪ Writes to OP Exception table
12
Order Promising Engine Features
Explodes the BOM to purchased component
level
Check each purchased component against
F55OPSHT, to check if component is marked as Short. If not marked Short, it will not update any dates and move to
capacity check
If component is marked Short, it will set
the availability date based on Next
Purchase Request Date (or if outside 7 business days, it will generate exception)
Check component availability
Order Promising Engine Features
Explode the work center usage hours
for SO item
For each work center, check the available capacity
vs required capacity
If capacity not available at any
work center, move PDD to next
business day and perform capacity
check again. Repeat till capacity found at all work-
centers for a given day.
If PDD day is outside 7 days,
write to exception table
After OP engine completes
processing all lines on Order, if more
than 2 distinct PDDs are
generated for SO lines, then write to
exception table
Check capacity
PDD=Promised Delivery Date
Order Promising Exceptions WorkbenchPromise Dates Out Too Far
• Output is by status
• If lines are good we move lines to 530 “ In waiting Acknowledgment Status”
• If they are bad or shortage or capacity is not available , we move to “529 OPE
order promising exception status”
• User can set any date they want or run through order promising again.
Results
“We were losing sales before, because we couldn’t give accurate promise dates
that could be relied upon. We’d miss dates, or we’d lose a sale because the
standard lead times were too long.
“Now customer satisfaction metrics are up. Sales are up.”
- Nina Williams – Master Planner – EMS & OEM Group, ASSA ABLOY Americas
Wrap and Next Steps
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Contact
Craig Hill – EVP of Professional Services Delivery
Phone: (317) 72709867
Email: craig.hill@catechnology.com
Aubrey Evens - EVP of Business Development
Phone: (914)582-9395
Email: aubrey.evens@catechnology.com
Come Visit us at booth #222!