Industrial Manufacturing SolutionsAchieve Manufacturing ExcellencePresenter’s Name:Presenter’s Title:

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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.

Safe Harbor Statement

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• Leadership in Industrial Manufacturing

• Innovation in Industry Solutions

• Results Achieved by Oracle Customers

Agenda

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10 of the top 15 leading container and packaging companies run Oracle applications

9 of the top 10 Fortune’s industrial & farm equipment manufacturers run Oracle Applications

8 of the top 10 industry Week’s leading machinery manufacturers run Oracle Applications

7 of the top 10 electrical equipment manufacturers on the Fortune 500 run Oracle Applications

Oracle in Industrial

ManufacturingDid You Know?

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Grow Revenues & Accelerate Innovation

“How can we grow the business by offering our customers higher value products and services?”

“80% of the world's top corporate CEOs declared that their primary objective has shifted from cost-cutting to revenue growth.”

IBM BCS, The Global CEO Study

“Lean programs are being used for operational excellence in almost all manufacturing companies today. Striving for excellence requires a commitment to continuous improvement and the foundation of all continuous improvement is analytics.”

“How can we implement Lean to reduce waste, support the bottom line to free up capital?”Eroding Margins

Jane Barrett & Nigel Montgomery, AMR Research, 2006

The Challenges We’re Hearing

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Responding toCustomer Demands

“How can we respond more rapidly to changes in market conditions?”

“Market leaders all have supply chains that are more responsive to customer demand.”

Yossi Sheffi, MIT, in the Economist, June 17, 2006

“…companies are seeking information management strategies that align (real-time and transactional processing) ..in a global setting, to provide visibility into performance and deliver key information for ERP.”

“How do we capitalize on industry consolidation and global market opportunities?”

Manage Globalization

& Consolidation

Colin Masson, AMR, Oct 26, 2006

The Challenges We’re Hearing

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“Lean programs are being used for operational excellence in almost all manufacturing companies today. Striving for excellence requires a commitment to continuous improvement and the foundation of all continuous improvement is analytics.”

“How can we implement Lean to reduce waste, support the bottom line and free up capital?”Eroding MarginsEroding Margins

Jane Barrett & Nigel Montgomery, AMR Research, 2006

Eroding Margins Challenge

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• Leadership in Industrial Manufacturing

• Innovation in Industry Solutions

• Results Achieved by Oracle Customers

Agenda

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Requirement Oracle Capability The Oracle Difference

Support lean, agile manufacturing processes

Mixed Mode Manufacturing(ETO, CTO, MTS, Flow, Etc)

Only enterprise SW provider with integrated flow manufacturing & Kanban functionality

Support flexible inventory replenishment and collaboration requirements

Collaborative Planning & Execution with Integrated Kanban Management

Integrated customer and vendor managed inventory for complete supply chain visibility

Enable paperless production to reduce costs and improve quality

MES, Quality, Mobile Supply Chain

Only enterprise SW provider with integrated MES

Achieve Manufacturing Excellence

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Requirement Oracle Capability The Oracle Difference

Support lean, agile manufacturing processes

Mixed Mode Manufacturing(ETO, CTO, MTS, Flow, Etc)

Only enterprise SW provider with integrated flow manufacturing & Kanban functionality

Support flexible inventory replenishment and collaboration requirements

Collaborative Planning & Execution with Integrated Kanban Management

Integrated customer and vendor managed inventory for complete supply chain visibility

Enable paperless production to reduce costs and improve quality

MES, Quality, Mobile Supply Chain

Only enterprise SW provider with integrated MES

Achieve Manufacturing Excellence

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MES for Discrete ManufacturingEnable Paperless Production to Reduce Costs and Improve Quality

System Automation & Control

Deliver Real-Time Shop Floor Visibility to Multiple Layers of ManagementReduce TCO / Complexity via Integrated Mfg Mgmt & Production ExecutionFacilitate Removal of Non Value-Added activities and Maximize Shop Floor Productivity

MESMES

ERPERP

Corp Mgmt

Shop Floor Control

Production MgmtProduction Mgmt

Operator• Works from dispatch list• Views work instructions and production

related information• Reports Time, Record transactions, Enter

quality data• Reports Production Exceptions

Supervisor• Reviews & resolves exceptions• Monitors shop floor progress• Expedites Jobs and Reorders Dispatch List• Reviews Historical Transactions• Accesses Job and Resource Gantts • Monitors Production Performance

MES for Discrete MfgMES for Discrete Mfg

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Integrated Enterprise Repository

Integrated Enterprise Repository

Closed Loop Corrective Action

Suppliers ComponentManufacturer Manufacturer Retailer Customer

Role-Based Access• Collect / aggregate data• Analyze information• Distribute results

Partners Your Company Distribution

Build-In Quality• Multimedia attachments • Operational method sheets • Paperless communication

Root Cause Analysis• Trend & control charts • Histograms • Pareto

Quality Mgmt System w/ Statistical AnalysisAnalyze Critical Data and Drive Process Improvement

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Improve Shop Floor Visibility and ControlConfigurable, Role Based Workbenches

MES Supervisor Workbench• Comprised of two Components

• Supervisor Dashboard• Supervisor Workstation

• Helps enforce stricter controls on manufacturing activities and resolve issues that prevent work progress through several Managerial Functions

• Enhances shop floor visibility by presenting a variety of information to reflect current shop status and issues requiring resolution

MES Operator Workbench • An integral part of the MES for Discrete

Manufacturing Module• Serves as a starting point on any day in the

life an Operator• Provides easy to use tools and all the

information needed for operators to execute their work – all through a simplified user interface

• Improves Operator Efficiency and Productivity by minimizing system interaction time

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Mobilize the Shop FloorSimplify transactions and improve improve data accuracy

Apps /Database

RF BaseStation

SQL NetTelnet Over TCP/IPRF Device

Built-in RF Middleware

Built-in Mobile User Interface

MobileTransaction Server

LAN or WAN

LAN or WAN

Moves, Issues, Returns, Scrap, Completions, …

Mobile ManufacturingMobile ManufacturingQuality Collections, Specifications, …

Mobile QualityMobile Quality

Misc. Transactions, Transfers, Counts, …

Mobile InventoryMobile InventoryPick, Confirm, Ship,

Confirm, Print, …

Mobile ShippingMobile ShippingDirect, Std, Inspect,

Cross-Dock, Print, …

Mobile ReceivingMobile Receiving

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Improve Operator Productivity & EfficiencyEnable Paperless Production with Complete on-line Information

Configurable Dispatch List Driven Execution

• Workstation is Dispatch List driven

• Content is highly configurable to improve production efficiencies

• Provides several visual cues that aide Operators in performing their work

• Supports a variety of actions and data drilldowns that can be conveniently performed in the context of any job operation in a dispatch list

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COMPANY OVERVIEWA leading developer, manufacturer and supplier of premium diagnostic and medical imaging systems dedicated to serving the healthcare needs of women.Employs over 1,000 people and generates $387M in yearly revenues.

CHALLENGES / OPPORTUNITIESDifficult to coordinate production scheduling to optimize output due to multiple manufacturing systemsNon Availability of information when needed due to several disconnected systems and databases with redundant information

SOLUTIONSOracle MFG/Supply Chain (Discrete MFG, Quality, Inventory, Planning, Purchasing, iSupplier)FinancialsOrder Management, CRMHR, Incentive Comp, HR Self Service, OLM

OFA, ADI, FSG, Discoverer

RESULTS• Better shop floor visibility and control

in managing mixed mode manufacturing environments

• Timely access to accurate operational information through a standard single-instance system

• Increased Labor Productivity Improved Inventory Accuracy & Control

• Reduced Inventory –As much as 50% in some plants

• Reduced Part Shortages by 67%• Improved Customer Service

CUSTOMER PERSPECTIVE“The Oracle [EBS] system ties together all of our financial and manufacturing data. It has been instrumental in enabling us to reduce inventories and provides comprehensive real time information to monitor our business.”Mike Parrilla, VP of Manufacturing

HOLOGIC Reduces Inventory and Operating Costs

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Achieve Manufacturing Excellence

Requirement Oracle Capability The Oracle Difference

Support lean, agile manufacturing processes

Mixed Mode Manufacturing(ETO, CTO, MTS, Flow, Etc)

Only enterprise SW provider with integrated flow manufacturing & Kanban functionality

Support flexible inventory replenishment and collaboration requirements

Collaborative Planning & Execution with Integrated Kanban Management

Integrated customer and vendor managed inventory for complete supply chain visibility

Enable paperless production to reduce costs and improve quality

MES, Quality, Mobile Supply Chain

Only enterprise SW provider with integrated MES

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Receive items

Pay on receipt/use

Checkinventory

status

Ship items

VMI Agreement(with supplier)

VMI AgreementVMI Agreement

Receive items

Pay on receipt/use

Ship items

VMI Agreement(with customer)

Send consumptionadvice

Collaborative PlanningSupport Flexible Inventory Replenishment and Collaboration Needs

CUSTOMER YOU SUPPLIER

Reduce inventory carrying costs

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• Manage product life cycles more effectively, with your trading partners

• Introduction of new products• Phase-out of obsolete products

• Improve supplier visibility• Publish sales forecast to suppliers at any tier

• Reduce non-value added costs and exception overload

• User-defined exceptions• Proactive notifications• Automated exception handling via workflow

Collaborate with CustomersImprove Sales Forecast Visibility to Your Suppliers

Sales/OrderForecast

Publish (optional)

Synchronize

SalesForecast

SalesForecast

Synchronize

Forecast Collaboration Process

CUSTOMERS

SUPPLIERS

YOU

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Forecast

Supplier

Constraintcapacity

Plan, Spreadsheet

• Reduce shortages and improve supplier delivery performance

• Provide order forecasts to your suppliers• Identify supply-demand mismatches

• Respond better to supplier exceptions

• Get visibility to your supplier’s constraints• Review constraints in your S&OP process

• Reduce non-value added costs and exception overload

• User-configurable exceptions• Automated exception handling via workflow

Collaborate with SuppliersIncrease Global Visibility, Reduce Shortages and Cut Cycle Time

Supply commit(capacity)

Consensus forecast

YOU

Plan

SalesForecast

OrderForecast

Optional

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Complete Kanban Planning and ExecutionReduce inventory with integrated Kanban capabilities

Inventory Mfg / Assembly

Point of Supply Point of Use

Production

Supplier

Staging Zone

Floor Stock

Pull Sequence

Kanban Planning

Kanban Execution

• Flexible Pull Sequence definition supporting single card, dual card, and non-replenishable kanbans

• Automatically create supporting transactions (PO, Flow Schedule, Move order)

• Simulate and compare multiple demand scenarios

• Generate new kanban cards and automatically cancel outdated cards

Pull Plan Execute

Signal via electronicvisual cues

!!

Feeder Plant

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• Empower suppliers to create & manage their own users

• Collaborate with Suppliers on Demand, PO History, Invoices, Quality data, etc.

• Enable management of VMI and Consigned Inventory

• Provide Access to Real-time Supplier Performance metrics

Collaborate Across the Supply ChainGlobally Integrate Customer and Supplier Inventory Requirements

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COMPANY OVERVIEW$9.2B global diversified manufacturer, based in Hamilton, BermudaMajor brands include Bobcat, Club Car, Hussmann, Dresser-Rand, Thermo King, Schlage, and Kryptonite

CHALLENGES / OPPORTUNITIESProvide direct and indirect material suppliers with timely planning and shipping schedulesFree employees from supplier inquiries

SOLUTIONSOracle PurchasingOracle iSupplier PortalOracle iProcurement

CUSTOMER PERSPECTIVE“Oracle applications have helped to streamline our procurement strategy. We now have terrific supply chain integration that has enabled us to exponentially roll out this product to our supplier base. Our suppliers dial in to a self-service application to answer a majority of their questions and it really frees up a lot of time for our procurement folks because we are able to do more strategic activities.”

RESULTS• Automated 59,000 supplier relationships • 90% reduction in supplier telephone

inquiries • Created access to 100K SKU’s via two

online catalogs• 500 users spending $5.4B annually via

15K req.’s / month • Rolling out to 5K users at 120 global sites

Ingersoll Rand Improves Supply Chain Visibility

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Requirement Oracle Capability The Oracle Difference

Support lean, agile manufacturing processes

Mixed Mode Manufacturing(ETO, CTO, MTS, Flow, Etc)

Only enterprise SW provider with integrated flow manufacturing & Kanban functionality

Support flexible inventory replenishment and collaboration requirements

Collaborative Planning & Execution with Integrated Kanban Management

Integrated customer and vendor managed inventory for complete supply chain visibility

Enable paperless production to reduce costs and improve quality

MES, Quality, Mobile Supply Chain

Only enterprise SW provider with integrated MES

Achieve Manufacturing Excellence

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Oracle Mixed-Mode ManufacturingSupport Lean, Agile Manufacturing processes

IntegratedIntelligence

CostAnalysis Productivity

Advanced Planning

• Planned Orders• Schedule Changes• Component

Substitutes• Resources

Substitutes

ProductLifecycle Mgmt

Warehousing / Transportation

Service

AssetMaintenance

• Demand Schedules• Sequencing• Configured Order

Lot / Serial Genealogy Tracking

Quality Management

PartnerCollaboration

Contract MfgrsModel ShopFloor

Suppliers

DemandVariabilityDemand

Variability

ETO/Project

Flow /Lean

StandardWIP Lot-Based

• Material Availability• Mfg Capacity• Schedules/Changes• Production Status• Ship Notices• Invoices/Payments

iSupplier

MES

EnterpriseShop FloorCustomer Contract Mfgrs Suppliers

Mixed Mode Mfg Execution

MES APIs,Direct

Access

SeibanCTO / ATO

MTS

AnalyzeAnalyze AdjustAdjustSampleSample

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• Maximize throughput of bottleneck resources• Automatic detection of bottlenecks• Minimize setup with intelligent sequencing

• Improve shop floor performance• Minimize the effect of unplanned downtime• Easy identification of issues• What-if rescheduling• Drag and drop

• Quickly determine the best schedule• Fast easy simulation• Scenario comparison and key performance indicators

• Implement quickly by leveraging out-of-the-box integration

• Integrated manufacturing planning and scheduling• Fully integrated with Oracle E-Business Suite

Oracle Production SchedulingMaximize Shop Floor Throughput and Optimize Resource Utilization

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Oracle Flow Manufacturing Solution

• Robust Scheduling and Sequencing

• Feeder Line Synchronization

• Outbound Broadcast Sequencing

• Kanban Planning and Execution

• Mixed Model Simulation with Takt Time Analysis

Sequenced Demand

Customers

Sequenced POs

Inventory

Bin 1 Bin 2Oper 10

Feeder Plant Feeder Line

SynchronizedProduction

Bin 1 Bin 2Oper 20

Bin 1 Bin 2Oper 30

Bin 1 Bin 2Oper 40

KanbanReplenishment

Suppliers

Final Assembly Line

ProductionLines

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• Calculate line & operation takt and req’d resources

• Highlight imbalances based on option’s planning percentages

• Reorganize events into balanced operations

• Define and associate standard processes w/ configurable models

• Add alternate paths & rework loops

• Add standard events, associate with options

• Identify TQC and value-add events

• Associate work instructions with optional events

• Kanban planning based on option planning percentages

• Demand leveling and smoothing by line rate

• Order promising by line rate

• Collaborative planning for VMI and consigned

• Inventory optimization for postponement

• Kanban execution

• Constrained based line sequencing based on configuration and its attributes

• Feeder line & supplier synchronization for “just in time” configured component delivery

• Operator workstation to deliver configured work instructions to the floor

Flow ManufacturingSupport Lean Practices to Reduce Cycle Time & Waste

Lean ExecutionLean PlanningLine DesignValue Stream Mapping

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COMPANY OVERVIEWViking builds ultra-premium kitchen appliances and outdoor cooking products Approx. US$1 billion in annual revenues, Approx. 1,500 employeesViking manufactures in US and sells globally through a network of appliance distributors

CHALLENGES/OPPORTUNITIESTremendous growth and numerous acquisitions necessitated moving 13 systems onto one global, integrated, real-time platform for better, more accurate access to manufacturing, order management, financials and business intelligence information and to lower overall business process & IT costsCould not schedule across its three plants and numerous distributorsNeeded a system that would support Viking’s existing superior, lean business processes and also support Viking’s explosive growth

SOLUTIONSOracle E-Business SuiteOracle Database/TechnologyOracle ConsultingOracle University

CUSTOMER PERSPECTIVE“Of all the tier-one solutions providers, we believe Oracle has the best manufacturing solution for us. Our manufacturing process is already lean and cutting-edge, so we were looking for software that would support our existing lean processes and help us gain needed visibility across our entire enterprise.”Brian Waldrop, EVP & CFO, VikingRESULTS• Improved existing lean mfg business

processes with increased real-time, accurate visibility of enterprise-wide data

• Consolidated 13 disparate, legacy systems into one single, integrated, global Oracle instance

• Achieved significant IT costs savings with less hardware and avoidance of hiring additional IT staff

• Complete visibility into banking debt and investments balances

Source: Oracle Customer Experience

Viking Range Enables Flow Manufacturing

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Oracle Industrial Manufacturing Solutions Summary

• Streamline Transactions and improve operator efficiencies

• Provide real-time quality, cost and productivity data• Automate operator access to all manufacturing/product

documentation

• Collaborate with Customers and Suppliers to reduce inventory and increase service levels

• Simplify support of VMI and Consigned Inventory• Expand partnerships with key customers and suppliers

• Complete Mixed Mode Manufacturing capabilities to Support, ETO, CTO, Make-to-stock, etc

• World class Flow Manufacturing capabilities with Takttime analysis, Scheduling/Sequence optimization & more

• Maximize shop floor throughput and optimize resource utilization

Support Lean, Agile Manufacturing

Processes

Support FlexibleInventory Replenishment

And Collaboration Requirements

Enable Paperless Production to Reduce Costs and Improve

Quality

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The Only Complete Industrial Manufacturing Solution

PlatformPlatform

PeoplePeopleProcessesProcesses

PartnersPartners

CustomerResults

CustomerResults

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Oracle Industrial Manufacturing Footprint

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Most ComprehensiveHighest RatedBest-SellingOnly vendor in Gartner and Forrester leader quadrants for all Middleware components.

••32,000+ Customers Deployed 32,000+ Customers Deployed

••70% of World70% of World’’s 50 Largest Firmss 50 Largest Firms

••$1B+ Business $1B+ Business

SOA Vendor of Choice

Source: Forrester Research ranking of Application Platform Servers, April 2005

Market-Leading Middleware Platform

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950 customers participating in Customer Advisory Boards

500 Industry & Product strategy council members

35 Fusion strategy council members

1300 participants in early customer adoption programs

425 user groups

30,000 applications customers

220,000 database customers

5000 middleware ISVs

1700 application ISVs

9000 database ISVs

30,000 middleware customers

29,000 developers, support engineers and consultants

Oracle’s People Advantage

275,000 customers

benefiting from shared innovation

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• Leadership in Industrial Manufacturing

• Innovation in Industry Solutions

• Results Achieved by Oracle Customers

Agenda

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purchase order release efficiency improved over 700% and 800,000 items were loaded in a unified corporate catalog with Oracle E-Business Suite Procurement

Industrial Manufacturing Customer Results

reduced inventory 15% overall, increased productivity 15%, material costs reduced 5% and 15% cycle time reduction with Oracle E-Business Advanced Planning

consolidated 13 Systems to a single global instance servicing 120 countries. Also reduced raw material and finished good inventory by 56%

shortened lead times by over 70%, reduced inventories by over 70%, increased productivity by over 20% with Oracle E-Business Suite CTO capabilities

30% decrease in order cycle time, 20% increase in on-time delivery and 30% increase in inventory turns with JDE Order Management and Manufacturing

gained $6.2M in incremental sales 1st year, improved sales productivity through automated pricing and proposal generation with Siebel CRM

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The Oracle Difference

Only Oracle…• Offers a complete integrated set of solutions for the

Lean Enterprise

• Has integrated MES functionality to improve production efficiencies and access to Information

• Provides a complete set of tools to collaborate with customers and suppliers to ‘lean-out’ the supply chain

• Delivers integrated, out-of-the-box manufacturing capabilities such as Flow, MES, EAM, etc.