1 Copyright © Oracle Corporation, 2004. Private and confidential. All rights reserved. Forecast to...

1 Copyright © Oracle Corporation, 2004. Private and confidential. All rights reserved.

Forecast to Plan

Oracle Advanced Planning

Nadeem SyedVice [email protected]


TRENDSTRENDS ADAPT YOUR BUSINESS MODELADAPT YOUR BUSINESS MODEL

Today: Tough Economic ConditionsBusiness trends forcing you to adapt new strategies

Higher degree of uncertaintyManage to uncertainty by

postponing inventory

Increased global competition Focus on core competency –

Increase outsourcing

Mass customizationMove point of differentiation

closer to customers

Focus on customer service to ensure brand loyalty

Provide reliable and accuratecommitments to customers

Less money to invest in IT Lower cost of ownership of apps

• Response 1: Maintain Excess Inventory

• Response 2: Reserve Production Capacity

• Response 3: Expedite Everything!

Traditional ApproachMulti-step planning processes, high latency, limited collaboration

Supply Chains Built on INVENTORYSupply Chains Built on INVENTORY

Customers Suppliers

Tier 2

Tier 1

Marketing Forecast

Sales Forecast

MfgForecast

Distribution Plans

Production Plans

ManufacturingPlans

t = weeks

?Demand Planning Process Supply Planning Process

Copyright © Oracle Corporation, 2004. Private and confidential. All rights reserved.

Build your Supply Chain on INFORMATION not inventory

• Enable closed loop planning processes across your value chain

• Provide total supply chain visibility

• Make better decisions

• React immediately to changes in supply chain

Move To A More Competitive ModelE-Business planning solution: zero latency, real-time collaboration

Internet

Customers Suppliers

Tier 2

Tier 1

Marketing forecast

Sales forecast

Mfgforecast

Single holistic plan

t = hours

Consensus forecast

Automatedexceptions

PortalPortal

Collaborativedemand plan

Collaborativesupply plan

Automatedexceptions

Automatedexceptions

Collaborative Planning Process

Demand Planning Process Supply Planning Process



OracleOracle

Advanced Planning Advanced Planning

SolutionSolution

Oracle Advanced Planning

Supply Chain Intelligence

Demand Planning

Inventory Optimization

Supply Chain and Manufacturing Planning

Manufacturing Scheduling

Transportation Planning*

Collaborative Planning

SCI

DP

IO

Deployment Planning** ASCP

Global Order Promising GOP

MS

TP

CP

ASCP

Sales and Operations Planning

SC EXCEPTION MGTSC Exception Management CP

DevelopMarketSellOrderPlan

Procure

Make

Fulfill

Service

MaintainFinance

HRProjects

All Product,Customer,& SupplierInformation

All Product,Customer,& SupplierInformation

From short-term to long-term

Fro

m d

eta

il t

o s

um

ma

ry

Complete e-business planning solution

* Coming in 11i.10 ** Coming in 11i.10+



Key Capabilities

Sales and operations planning

Inventory postponement optimization

Holistic planning and optimization

Multi-tier collaborative planning

Zero downtime global order promising


SALES AND OPERATIONS PLANNING


CRM• Sales opportunities• Trade promotions

EPB• Financial plan• Budget plan

OM• Ship and book history• Current order backlog

SCM• Prod. and inv. history• Production backlog

CP • Customer forecasts

INPUTS PROCESS

Management review to evaluate and adjust plan

Feed the supply plan and constrained forecast into the demand plan

Run ASCP with consensus forecast and inventory targets to determine supply plan

Run IO with consensus forecast to determine inventory targets and postponement strategy

Determine new product plan and generate demand plan to develop a consensus forecast

PLANNING

Demand Plan

Supply Plan

Inventory andservice levels

Management Reports

Exceptionmanagement

Sales PlanProduction PlanBookings Forecast

OUTPUTS



Continuous process– Simulate demand and supply

strategies– Analyze multiple business scenarios– Achieve consensus on plans through

internal collaboration– Generate and analyze exceptions– Use workflow to automate process

Adaptable – Custom demand and supply streams– Multi-dimensional OLAP– Extensible hierarchies and dimensions– User-defined reports and exceptions

Out-of-the-box integration– Integrated with CRM and SCM

Key capabilities



S&OP - Demand Planning

Compare and consolidate disparate forecasts– Sales, Marketing, Manufacturing, Customers,

Point of Sale (in units or $$)– Multi-dimensional OLAP to allocate and rollup

Improve forecast accuracy– Better statistical forecasts– Forecast planning percentages for models and

options– Get visibility to customer demand changes

Improve demand planning cycle time– Continuous demand planning process– Automated internal collaboration

Improve sales promotion planning– Forecasting integrated with promotion planning– Measure effectiveness

Drive to accurate consensus forecast

Internet

Customers

Marketing forecast

Sales forecast

Mfgforecast

Consensus forecast

Portal

Collaborativedemand plan Automated

exceptions

Demand Planning Process


S&OP - Demand Planning

Improve delivery performance– Include customers in forecasting process– Publish sales forecast to suppliers at

any tier

Manage product life cycles more effectively, with your trading partners– Introduction of new products– Phase-out of obsolete products

Reduce non-value added costs and exception overload– User-defined exceptions– Proactive notifications– Automated exception handling via

workflow

Drive to accurate consensus forecast

Customer

OEM

Supplier

Sales forecast

Synchronize

Publish

Multi-tier forecast collaboration process


S&OP – Alcoa

• Reduced planning cycle time - Eliminates waste on spreadsheets Process integration with other modules results in technology “pull” for new systems Integrated sales and operations planning process resulting in one consensus forecast number

Benefits

COMPANYCOMPANY

$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

PREVIOUS PROCESSPREVIOUS PROCESS

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

WITH ORACLEWITH 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/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 sessionsSource: Alcoa Presentation at Appsworld 2004



INVENTORY POSTPONEMENT OPTIMIZATION

Inventory Postponement Optimization

Inventory levels and policies are synchronized across the entire supply chain

Manage to uncertainty– Demand, supply, lead-times

Pull model, driven by point of postponement

Higher customer service at lower inventory cost

Time-phased safety stock buffers at all levels

Multiple target service levels

Manage to uncertainty, reduce inventory, improve customer service

Suppliers

ContractManufacturers

FinalAssembly

Central Distribution Centers

Regional Distribution Centers

Customers

Without Postponement With Postponement




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

Business benefits


Reduce inventory without sacrificing customer service

– Postponement– Risk pooling

Manage supply chain variability

Choose the best service level strategy based on cost and revenue

– Inventory budget constraints

Invest in profitable channels, products, and customers

Manage seasonality and product life cycle characteristics

– Recommend time-phased safety stock to supply planning

Out-of-the-box optimization – For planners, not programmers

Inv

en

tory

In

ve

stm

en

t

Service Level

10 30 50 75 80 85 90 95 100

Higher Service Level

LowerInventoryCost

WithoutOracle

WithOracle

Key capabilities



Reduce inventory without impacting customer service



Simulate multiple scenarios to find the

optimal trade-off between cost and

service level




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%

Customer example - GE Aircraft Engines, US


HOLISTIC PLANNING AND OPTIMIZATION


Holistic Planning and Optimization

Unified solution for supply chain and manufacturing planning

Segment the problem as needed

Optimization for planners not programmers

Scalable and reliable

Faster and better supply chain plans

Short-term planning

Long-term planning

Semicon

Process

Discrete

Flow

ProjectPlants

Warehouses

Customers

Suppliers

DCs

Internet


Supply Chain Planning– Product family and item level

planning– Alternate components,

resources, processes, suppliers, and facilities

– End-item substitution– Critical items and resources– Aggregate resources– Bills of distribution and transfer

rules– Customer and supplier facilities

Manufacturing Planning and Scheduling

– Simultaneous resources– Batch resources– Alternate resources– Minimum transfer quantities– Sequence dependent setups– Contiguous activities– Complex, network routings– By-products and co-products

One solution for comprehensive supply chain and mfg planning

ONE SUPPLY CHAIN MODEL, ONE PLANNING ENGINE, ONE SETUP



Adapts to your current business model

– Single plan or multiple plans

Evolve planning model at your own pace

– Re-configure easily by modifying plan options instead of re-implementing or re-modeling

Multiple models can co-exist

Highly adaptable - Segment problem as needed

One holistic plan

One DRP, multiple MRP

Multiple MPS, multiple MRP

DRP for all Orgs

MRP Org 1 MRP Org 2 MRP Org 3

SCP for all Organizations

MPS for BU 1

MPS for BU 2

MRP Org 1 - 2 - 3 MRP Org 4 - 5 - 6



Interceramic– 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

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

Highly adaptable - Customer examples

Suppliers CustomersDistribution

chainManufacturing

plants

ConstrainedSC plan

ConstrainedMFG plan for all facilities

DRP plan

Inventory postponement

plan

CollaborativeDemand plan Knowles Electronics has

reduced inventory by $1M per month after implementing Advanced Planning.



Make better decisions faster– Level load– Choose alternatives– Make/buy decisions

Out-of-the-box optimization– Use costs or decision rules

Start quickly– Planners define the problem to solve– Flexible defaulting

Reduce planner workload

Optimization “For Planners, Not Programmers”

GE AE has moved from running separate plans in 36 facilities to running a single holistic plan across their DCs, end-assembly, contract manufacturing, and component shops, and as a result has reduced their planningorganization significantly



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

Scalable

High VolumeCustomers

Agilent Technologies, Sony SNC, GE AE, NCR, Panasonic, Alcoa, …



MULTI-TIER COLLABORATIVE PLANNING


Multi-tier Collaborative Planning

Plan your extended supply chain – Share forecasts and supply commits with

customers and suppliers– Get visibility to supplier capacity– Reallocate key components – Make alternate sourcing decisions

Reduce inventory cost and improve fulfillment

– Suppliers manage your inventory– Manage your customers’ inventory

React quickly to supply chain exceptions

– Waterfall analysis– User-configurable exceptions– Automated exception handling via workflow

Full visibility and synchronization across the extended supply chain

ContractManufacturer

You SupplierCustomer

Run plan

Optional

Forecast

‘memory’

Supply commit

‘boards’

Supply commit

‘memory’

Demand

‘boards’

Run plan

Demand‘systems’

Supplyforecast

Consensusforecast


VMI and Consigned InventoryAutomate inventory replenishment with suppliers and customers

Customer consigned coming in 11i.10

YouSupplierCustomer

Receive items

Pay on receipt/use

Check inventory status

Ship items

VMI Agreement(with supplier)

VMI AgreementVMI Agreement -

Receive items

Pay on receipt/use

Ship items

VMI Agreement(with customer)

Send consumption advice


Customer Example: Alcatel eND

Enabled 100% virtual enterprise

Plan virtual supply chain– Planning cycle time reduced by 75%

Reduced inventory by more than 65%

Reduced material liability by 80%

Established global closed-loop process controls

Improved supply chain visibility

Projected annual savings of $15M


ZERO DOWNTIME GLOBAL ORDER PROMISING

Zero Downtime Global Order Promising

Promise orders based on:– Material availability– Manufacturing capacity– Transportation capacity– Supplier capacity

Global statement of availability– All facilities, material, resources, and

suppliers

Allocate available supply and capacity– By channel, customer, or product– Priority and stealing rules

Manage commitments to key customers– Re-schedule and re-sequence your

backlog




Zero downtime– No order promising downtime

when underlying supply chain plan is refreshed

– No sales order is lost, automatically re-promise sales orders against new plan

Open, reliable, and scalable– Engine runs inside the database– No memory models to load!– Multi-threaded– Integrated with OM, iStore, and

Call Center– Easily integrate with legacy

systems

Guaranteed uptime and consistency via patent-pending architecture

Current plan

Promise Orders Promise Orders

Run new plan

Copy Run Copy

? ? ? ? ? ? ?

New planDowntime or

Inaccurate orders

TYPICAL APPROACH

ORACLE APPROACH

Current plan

Promise Orders Promise Orders

Run new plan

Copy RunSync &

Re-promise

New plan

Swap



Agilent Technologies– Performing multi-level capable-

to-promise– Greatly reduced expedite orders

with accurate order promising dates

– Moved from batch to online order promising

– Increased customer satisfaction of key strategic customers by using allocated ATP

– 24x7 worldwide order operation with ‘zero downtime’ CTP

– Meet customer requirement by utilizing substitute components

Cisco– Every order for every router sold

worldwide goes through GOP– Complex order promising problem

Product and channel allocation rules Extensive use of ship sets in an

assembly to order environment High volumes

Intersil– Using material and resource

constraints (CTP) across virtual supply chain

– Sales people promise orders online in seconds

Customer examples


INTEGRATED PERFORMANCE MANAGEMENTand PROCESS AUTOMATION

Integrated Performance Management

DP• Forecast accuracy• Margin analysis• Promotion effectiveness

ASCP• Planned utilization• On-time delivery• Planned margin

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

PLAN TO PERFORMANCE PROCESS

Perform trend analysis and adjust business plan and targets

Analyze exceptions based on facts; take immediate corrective action

Calculate KPIs and compare to plan; notify decision makers of exceptions

Identify key performance measures and set targets

BUSINESS INTELLIGENCE

Define targets

OUTPUTS

Management reports

Execute transactions

Measure performanceNotify on‘out of tolerance’

Role-based portals


Process Automation

Automated end to end planning process

– DP IO ASCP GOP CP

Automated plan execution– Auto-release orders and reschedule

recommendations

Configurable exception management– Workflow enabled exceptions– User-defined exceptions– Configurable thresholds

Kyocera has workflow-enabled their planning process to the extent where their planners manage all the plan exceptions by responding to email notifications



SCALABLE AND OPEN ARCHITECTURE

Scalable and Open Architecture

High performance– In-memory only when needed– Multi-threaded snapshot– Leverages key database features like

materialized views, partitions, and analytical workspaces

Reliable – All plan information resides in the database– Hot backup and recovery– Leverages grid computing infrastructure

Open and standards based– Runs against all versions of Oracle EBS -

10.7, 11.0, 11i– Deploy against legacy systems– XML, flat file, EDI support

Advanced Planning

APIS

Trading partners Internal Users

Internet

Oracle 10.7, 11.0, 11i

Legacy Systems

XMLEDIFlat file

Order Promising Engine

Portals

Express OLAP

KPIs Workflows Plans

LegacyDeployments

Cochlear, Embraer, FXAP, NCR, Interceramic, GE Aircraft Engines, Perkin Elmer, Xilinx, …

Database-centric architecture



MomentumMomentum


Ongoing Momentum

600+ 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…

– Large-scale, complex deployments

A Few Live Customers … Intersil - ASCP, DP, GOP Fuji Xerox Asia Pacific - ASCP, DP Perkin Elmer - ASCP, GOP NCR - ASCP, DP Namitech - ASCP, GOP AT&T Wireless - ASCP, DP, CP 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 Eaton Trucks - ASCP Kyocera - ASCP

Cisco - ASCP, GOP Alcoa - ASCP, DP, GOP Canon Virginia - ASCP GE Power Systems - ASCP, GOP GE Aircraft Engines - ASCP Silgan Plastics - ASCP Qualcomm - ASCP, DP, CP McGraw-Hill - ASCP, DP Alcatel eND - ASCP, DP, CP Cabot Microelectronics - DP Mango - CP Rockford - ASCP, DP Quantum - ASCP, DP Boeing - ASCP Anugra Argon Medica - ASCP, DP Cochlear - ASCP, DP Inventec - ASCP, GOP, CP


Adding Value and Assuring ROI

Intersil reduced inventory by 50%, reduced response time for critical products from 336 to 24 hours, 246% ROI

Canon moved from weekly to daily planning, real-time order release

Tube Investments reduced inventories by 20%, ramped up production by 20%, increased market share from 50% to 80%

Agilent moved from monthly to weekly planning cycles

Knowles Electronics reduced inventory costs by $1M each month

Alcatel eND moved to virtual supply chain model and reduced inventory by more than 65%


AT&T Wireless

• Inventory is down year over year while product line is much broader• Service level remains strong• Inventory volatility is dramatically reduced• Increased collaboration

Benefits

COMPANYCOMPANY

Largest independent wireless communications company. Second largest based on revenue

$16.6B revenue, 22M subscribers, ~30k employees

Wireless Voice and Data Services. TDMA/GSM Network. Fastest National data

network

PLANNING BENCHMARKPLANNING BENCHMARK

• 1 National distribution center• 7 Channels• 1100+ Company owned stores, Web, Direct Mail• 18 Major national retail partners; 17,000+ doors• $ 2.0B+ Annual spend• Manage 500+ SKUs• 12+ Major device suppliers• 40+ Accessory suppliers


• PC based toolsets• Difficult to aggregate and publish• Change & version control lacking• Shared data mart• Scrubbed data is dispersed• Off the shelf stat package


Runs worldwide sales operations using ASCP, DP, and CP 5 month implementation CPFR collaboration with suppliers Central repository for consensus forecast Supports consistent process flow with approval steps Improved visibility for balancing supply and demand Less time verifying data, more time analyzing data Integrated custom data streams and aggregates

Source: AT&T presentation – Oracle Appsworld, 2004


Inventec Multimedia & Telecom, Taiwan

• 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

COMPANYCOMPANY

Large contract manufacturer of voice and digital imaging, and voice and data transmission products

$360M revenue


• End-to-end planning run = 2 hrs• Collaboration with 150 suppliers• Full CPFR implementation


• 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


4 month implementation Operates complete collaborative planning process using

ASCP, GOP, and CP Collaborative supply-demand planning with key customers Collaborative supply planning with 150 suppliers Constrained multi-org plan, weekly; used to publish order

forecast to suppliers, who provide supply commits as input Daily plans as a basis for material constrained ATP VMI with suppliers – full visibility to stock levels and in-transit

Benefits


NCR Corporation, US

• 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

COMPANYCOMPANY

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


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


• 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

Benefits


Toshiba TEC, Worldwide

$3.1B manufacturer of document processing equipment

Previous process– Multiple regional ERP instances – Decentralized planning process

Current process– Global centralized planning model– ASCP is cornerstone of Global SCM

project– Uses ASCP to make global production

allocation decisions– Uses material and resource

constrained planning

Benefits– Moved from a monthly planning cycle

to a weekly cycle– Reduced manufacturing cycle times– Optimized worldwide inventory levels

Global planning system deployment – multi-instance

Read their online testimonial

Orcl 11i

Orcl 11iUS

Europe

Advanced Planning 11i

Orcl 11.0China

Japan

Malaysia Orcl 11.0

Orcl 11.0

Resource and materialconstrainedProduction Plan (MPS)

Manufacturing SitesDistribution Sites

Toner Mfg Plant

Japan Orcl 10.7

Japan - Distribution Sites

Forecast

Forecast

Forecast

MRP

MRP

MRP


http://www.toshibatec.co.jp/joho/copier/english/info/topics2.htm

Agilent, Worldwide

Semiconductor Products GroupSemiconductor Products Group

$1.586B net revenue (FY03)

Test & Measurement and Automated Test GroupTest & Measurement and Automated Test Group

$2.53B and $0.76B net revenue (FY03)

Previous ProcessPrevious Process

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

Previous ProcessPrevious Process


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 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

With OracleWith Oracle With OracleWith Oracle

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

Planning BenchmarkPlanning Benchmark Planning BenchmarkPlanning Benchmark

Highly complex, large scale model


Sony SSNC, Japan

• Integrated sales and operations planning process resulting in one consensus forecast number• Strongly reduced planning cycle time – from monthly to daily• Integrated planning and execution model, providing global supply and demand visibility

COMPANYCOMPANY

6 Divisions: MOS, MS, LCD, IS, MDD, SIC Manufactures ultra high speed Static

Random Access memory (SRAM), products for the audio, video, and communication markets

$3B revenue


• 1,000,000 demands• 800,000 supplies• Planning 18 facilities• 12 BOM levels• Scheduling 2.8M operations; 40,000 lots• 10Gb memory model


• Spreadsheets, not integrated with legacy system, nor with

execution systems

• Manual forecast smoothing• No system supported sales and operations planning process• Monthly planning cycle, insufficient accuracy in order

promise dates• Fabrication and assembly lined in batch mode, causing wafer

shortages and excess inventory


Runs worldwide manufacturing and sales operations using ASCP, DP, and CP

Holistic plan for 18 facilities, demands from 1000+ customers Daily optimized enterprise plan; 100 supply planners, 65

demand planners Uses substitute components, simultaneous and alternate

resources, co-product planning, alternate bills, routings, and sources, complex network routings, and process yields

Uses custom demand streams and custom dimensions for demand planning process

Uses complex allocation rules for global order promising

Benefits



Future DirectionsFuture Directions

Future Vision and Product Directions

<< 11i8Holistic planning and optimizationOut-of-the-box optimization Distribution planningMaterial and resource constraintsDemand planning (OLAP based)Collaborative supply planningCollaborative demand planningVendor managed inventoryInventory optimizationSupply chain intelligenceDatabase centric planningMixed mode manufacturing Capable to promiseAllocation rules Process automation via workflow

Industry enhancements focused on- Aerospace and Defense- High Tech- Industrial Manufacturing- Process Manufacturing- Automotive

11i.9Sales and operations planningContinuous real-time DPIntegrated sales forecastingCollaborative exception managementPersonal events Automated demand and supply planning collaborationZero downtime order promisingIntegrated asset and material planningManufacturing scheduling for process manufacturingPlanning constraint root cause analysis

Industry enhancements focused on- High Tech- Semiconductor- Process Manufacturing- Automotive

11i.10Sales and operations planningDeployment planning enh.*Transportation planning* Configure to order enh.Inventory budget constraintsLiability analysis*Detailed scheduling enh.*Service supply chain planning*-- spare parts forecasting-- returns supply forecasting-- integration w/ service exec.User productivity enh. Analytical workspaces for DP

Industry enhancements focused on- Process Manufacturing- Logistics and Distribution- Service- High Tech- Automotive

Future >>Continuous planningSupply-demand matchingComplex outsourced model supportTransportation planning-- Fleet routing and scheduling-- Ocean, air, rail int’l transportationPush planningCausal forecasting enhancementsRetail supply chain-- Merchandise optimization-- Replenishment optimizationNext generation architecture

Industry enhancements focused on- Process Manufacturing- Logistics and Distribution- Retail- High Tech - Automotive

2002 2003 2004 2005 2006

BUILDING ADAPTIVE SOLUTIONS THE EVOLUTIONARY WAY

* Coming in 11i.10+

The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality.


SummarySummary

Oracle Advanced PlanningE-Business planning solution: zero latency, real-time collaboration

Internet

Customers Suppliers

Tier 2

Tier 1

Marketing Forecast

Sales Forecast

ManufacturingForecast

Single Holistic Plan

t = hours

Demand Planning Process Supply Planning Process

Consensus Forecast

Automatedexceptions

PortalPortal

Collaborativedemand plan

Collaborativesupply plan Automated

exceptionsAutomatedexceptions

Collaborative Planning Process



Why Oracle!

Integrated planning, execution, and collaboration

Holistic planning and optimization

For planners, not programmers

Integrated performance management

Lowest total cost of ownership


Key Points

Proven and complete planning solution– Many live customers on multiple products, across a wide variety of industries– Large-scale, complex, worldwide deployments

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

Easy to deploy– Seamlessly deploy against Oracle 10.7, 11.0, 11i– Easily interface with legacy systems– For Planners, Not Programmers - Out-of-the-box optimization– Superior architecture - scalable, database-driven planning; common data model

across all engines, shared with execution


Date post:	21-Jan-2016
Category:	Documents
Upload:	leslie-miller
View:	213 times
Download:	0 times

1 Copyright © Oracle Corporation, 2004. Private and confidential. All rights reserved. Forecast to...

Documents