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

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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

Questions

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

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Session ID#: 101680

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