001 OPM Concepts, Overview & Drivers
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Transcript of 001 OPM Concepts, Overview & Drivers
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Process Manufacturing Drivers, Concepts & Overview
August 18th, 2008
AGSS Process Manufacturing Sales Support Team
2
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 decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Oracle Process Manufacturing
Key Business Challenges in Process Manufacturing Industries
Evolution to Information Driven Manufacturing
Design to Deliver Process Manufacturing Flow
Food & Beverage Process Industry Value Chain
Suppliers
Customers
Finished Product Mfgr
Distribution Channels
RawMaterials
Distributors
GrowersManufacturers
Business
ConsumerWeb Direct
Product Dev.
Manufacturing
Retailers
Marketing
Sales Brokers
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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Today’s Value Chain is Complex
Suppliers Customers
InnovationInnovation
ProcurementProcurement
Human Capital Management
Va
lue
Cre
atin
gA
ctivities
Su
pp
ortin
gA
ctivitiesFinancial Management
• Geographically Distributed• Dynamically Networked
• Increasingly Collaborative• Product & Service Oriented
InboundInboundLogisticsLogistics OperationsOperations OutboundOutbound
LogisticsLogisticsMarketingMarketing& Sales& Sales ServiceService
Value Creation
6
Information is Critical to Your Value Chain
Resulting in Rigid Processes Optimized for Static Market Conditions
Undefined, Ambiguous Information
External Processes & Information
Corporate Objectives
Unplanned Scenarios
Cross-LOB Programs
Internal Process Focus
Disruptive Changes
InboundLogistics
OperationsOutboundLogistics
Marketing& Sales
Service
Historically, Companies Focused on Perfecting
Internal Operations…
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Information is Critical to Your Value Chain
• PREDICT Market Requirements and Risks• INNOVATE & ADAPT to Drive Leadership• ALIGN Operations to Comply and Achieve
Business Goals
InformationEnablesYou to…
PredictPredict Align, ComplyAlign,
ComplyInnovate , AdaptInnovate , Adapt
Value Chain Focus
InboundLogistics
OperationsOutboundLogistics
Marketing& Sales
Service
ChangingMarket
Conditions
Undefined, Ambiguous Information
Corporate Objectives
Cross-LOB Programs
Disruptive Changes
External Processes & Information
Unplanned Scenarios
8
Oracle Process Manufacturing
Key Business Challenges in Process Manufacturing Industries
Evolution to Information Driven Manufacturing
Design to Deliver Process Manufacturing Flow
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Process Industry Business Drivers
Variability• How do I create consistent
products using inconsistent ingredients?
• How do I achieve process and reaction stability?
Lowest Total Cost• How can I meet quality, delivery,
and service demands at a competitive price?
• How can I minimize waste and emissions?
• Manage the production process to deliver profitable, regulatory-compliant, high-quality products
Raw Materials,Ingredients
Value-Added Transformation
Finished Goods
Regulatory Compliance• How do I comply with global
and local requirements?
• How do I ensure lot traceability and adhere to standards suchas 21 CFR Part 11?
Reduced Time to Market• How can I manage a growing list of
key product attributes?
• How can I efficiently mass customize my products?
• Achieve global visibility with ability to manage plant specific variability
• Create and execute an optimal production plan
10
1. Labor costs rising globally – resulting in outsourcing to lower cost labor markets
2. Energy Prices continue to Rise resulting in cost increases in downstream products due to energy consumption in manufacturing process:
– Gasoline– Electricity– Plastics– Paper
3. Raw Material Costs rising
Escalating Cost Pressures
Rising raw material costs put a crimp in first-quarter profits at paints and coatings companies. The first quarter is typically the slowest for paintmakers, particularly in the architectural coatings sector because of the weather, producers say.
Dull Finish*(in millions of dollars)Company Sales % Change Earnings % ChangeAkzo-Nobel $1,597.0 0% $79.8 -26%Sherwin-Williams 1,540.0 17 83.3 62DuPont¹ 1,536.0 8 166.0 -12PPG Industries² 1,332.0 5 9.0 -95ICI 961.9 2 94.1 2BASF 607.5 -7NA NARPM³ 516.3 9 4.5 -25*First quarter sales and earnings for paints and coatings operations. NA=Not available. 1) Pretax operating profit. 2) Includes $150-million pretax charge for nonrecurring legal settlement. 3) Fiscal third quarter ended Feb. 28.
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• Accelerating Time to Market
• Managing Variability and Consistency
• Optimizing Capacity and Ingredients
• Controlling Product Cost and Quality
• Reducing Complexity
• Getting Timely Information to Make Decisions
A Need for ChangeLeading Business Trends
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Work Orders
Traditional ERP Manufacturing Solution
Inventory Management
MRP
Manufacturing
Process Discrete
Shop Floor System
White Board / Spreadsheets
Bills of MaterialsRecipes
Routings
LIMS / Quality System
Analysis via Spreadsheets
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Lot / Serial Genealogy Tracking
Quality MgmtAnalyzeAnalyze AdjustAdjustSampleSample
Project Tracking
Manufacturing Execution
Oracle Information Driven Manufacturing Solution
ProductLifecycle Mgmt
Warehousing / Transportation
Service
AssetLifecycle Mgmt
Planning & Scheduling
Flexible, Mixed Mode Manufacturing
Process
Flow / Lean
Standard Discrete
Lot-Based
ETOATO / CTO
MTS
Shop Floor Sys
PartnerCollaboration and VisibilityContract Mfgrs Suppliers
Manufacturing Intelligence
Visibility from Shop Floor to
Top Floor
Global Order Promising
Collaboration
Analytics
MES
Predict Demand
Adaptive Quality
Innovate
Process vs. Discrete Manufacturing
• Variable ingredients, by-/co-products• UOM are material specific• Use multiple recipes and formulas• Need lot, grades, potency, shelf-life• Mixes, blends, transforms• Makes “STUFF”
Process Discrete• Standard parts, components• UOM are by unit or by lot• Use complex multi-level BOMs• Need serial numbers, ECNs• Builds, assembles, fabricates• Makes “THINGS”
Beverages,Foods
Paper, Metals,Fibers
Chemicals,Pharma
Discrete: 60% Discrete: 60%
Process: 40%Process: 40%
36%24% 20%
Process vs. Discrete Manufacturing
• Item/Ingredient• Formula/Recipe• Yield• Dual UOM• Non Linear Routing• Lot Trace• Production Batch• Quality Assays• Parent Lot/Child lot/Grade• Gallons, Pounds, Pounds Solid
Process Discrete• Part Number• BOM• Scrap• UOM Conversion• Linear Routing• Serial Number• Work Order• Pass/Fail• Serial Number• Each, Pieces
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• Process Inventory Model
• Parent/Child Lots,Status, Grade, shelf life
• Concurrent UOMs
• Full bi-directional Lot Tracing
• Process Cost Model
• Concurrent tracking of standard and actual costs
• ABC style allocations
• Unlimited calendars, periods, methods, elements
• True Co-packer/Tolling cost
• Stability Studies
• Least Cost Formulation
Oracle Process Manufacturing
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Oracle Process Manufacturing
• Formula based planning
• Multiple versions
• Scaling, Theoretical Yields
• By-products/co-products
• Planning, Production, Costing types
• Recipe workbench
• 21 CFR Part 11 Compliant
• Electronic Signatures
• Electronic Batch Records
• World class Audit Trail
• Unbreakable Security
• Quality Control Workflows
• Process Oriented Production
20
Potency
% Solid
Multiple Units of Measure
pH Factor
Multi-PlantManufacturing
FluctuatingCommodityPrices
ComplexCosting
Alternative Routings
Alternative Formulas
Sequencing
Quality Attributes
Grade
Status
Lot Sizes
Yields
Shelf LifeSeasonality
Viscosity
Toxicity
Catch Weight
Why is it Hard?
Circular Processing
Lot Genealogy
21
Oracle Process Manufacturing Overview
Key Business Challenges in Process Manufacturing Industries
Evolution to Information Driven Manufacturing
Design to Deliver Process Manufacturing Flow
22
Design to Deliver ManufacturingSupply Chain Management Flow
Procure Materials
Comprehensive Process Mfg Solution
Supply Chain Planning
ManufacturingOperations Center
Cost Management
Electronic Batch Record/E-Signature
Demand Management
Recipe & Formula Development
Quality-Oriented Process Management
Shipping & Transportation
Multi-Level Material/Resource Traceability
Inventory Management
Performance Analysis
Process Management(MES for Process)
API Interfaces
Sales Management
OPM Bundle
23
Becoming More Demand-Driven is High on our Customers’ Agendas…
• Increasing margin pressure
• Supply chains are notoriously inefficient
• Need better and more timely product distribution data
Leading companies are looking to become more demand-driven as a key enabler of profitable growth
24
Multiple,non-integrated
systems
Manual processesMultiple data sources
FinancialPlanning
New ProductPlanning
SalesQuotas
ProductionPlanning
Measurementand Reporting
MarketingForecasting
Your Company
…but Difficult to Achieve with a Traditional Disconnected S&OP Approach High latency, limited collaboration, no consensus forecasting
No connection between plans, plans not tied to executionMisalignment between metrics and objectivesUnreliable forecasts and production plans
?
25
Improved Demand ManagementSense Demand: Arrive at a More Accurate Number
Gain real-time visibility to all demand signals • Accommodate multiple units of measure and currencies for
Sales, Marketing, Customers, Suppliers
• Include point of sale information in real time
• Forecast at a more detailed level – store, shelf, etc.
• Move from a regimented periodic to a continuous demandplanning process
Accurately predict demand via adv. analytics• Establish baseline forecast from quantitative & qualitative data
• Utilize high precision statistical forecasting without requiring a statistical background
• Forecast based on attributes and characteristics
Rapidly reach a better consensus-based forecast• Use multi-dimensional analysis to adjust, allocate, and rollup
• Collaborate with internal and external constituents
• Ensure responsiveness via workflow-driven forecast exceptions
• Capture contract win assumptions w/ assumption-based forecasting
26
Real-Time Sales & Operations PlanningShape Demand: Leverage More Frequent POS Data toDrive Supply-Demand Balancing Decisions
Profitably balance supply, demand & budgets• Make allocation decisions while trading off service levels & cost
• Balance the needs of many customers in different channels
• Examine throughput on the most critically constrained resources or suppliers, and profitability by product family
Monitor performance, manage exceptions• Adjust demand or supply plan as conditions change
• Create sales incentives and promotions to close gaps
• Drive continuous improvement
Use workflow-driven collaborative planning
• Enable a workflow-driven multidisciplinary collaborative process that includes Manufacturing, Finance, Sales, Marketing, and external stakeholders
• Adapts to business process via configurable planning platform
• Achieve internal & external collaboration via web-based portal
27
Demand Signal ManagementCritical Feed into S&OP
Consumer
Distribution
Pricing &Promotion
ManagementSupply Chain
PlanningOrder
Fulfillment
DemandPlanning
InventoryOptimization
Sales &OperationsPlanning
SupplyNetworkDesign
CategoryManagement
ConsumerMarketing
PerformanceManagement
RetailExecution
ProductInnovation
ConsumerConsumer
Distribution
Pricing &Promotion
ManagementSupply Chain
PlanningOrder
Fulfillment
DemandPlanning
InventoryOptimization
Sales &OperationsPlanning
SupplyNetworkDesign
CategoryManagement
ConsumerMarketing
PerformanceManagement
RetailExecution
ProductInnovation
The Opportunity
• Drive sales and improve inventory management by:
•Reducing demand latency•Providing data-driven, actionable intelligence
The Challenge
• Disparate downstream data sources
• Data cleansing, harmonization and integration
• Integration with enterprise applications
• Readiness of enterprise applications to drive specific operational changes
The Solution
Oracle Demand Signal Management
Oracle Collaboration Consumer Response
Patient
28
Oracle DSR Solution Concept
TPM
TPO
APS
S&OP
DRP
SNO
PLM
• More timely data to better sense, shape and respond to demand
• Reduced manual effort and cost
• Consistent data more easily leveraged across teams and applications
– S
OA
Mes
sag
es –
Ag
gre
gat
ed D
eman
d S
ign
als
• Data sources centrally cleansed, harmonized and aggregated
• Pre-built dashboards and reports• Powerful BI capabilities • “Sense & Respond” event management
Cap
ture
Man
age
An
alyz
e
Res
po
nd
Oracle Demand Signal Repository
Inte
gra
te
• POS sales• Price• Store inventory• Promotional plans• Store replen. rules• Store forecasts
Retail Store Data
• DC shipments• DC inventory• DC replen. rules
Retail DC/ Distributor Data
• Retail loyalty• IRI/AC Nielsen• 3rd party
demographic• Causal
(weather,etc.)• RFID/EPC• IMS, NDC, EDI
(867, 852), Scripts, Pedigree
• Unstructured text
Other External Data
29
Closing the Sales & Operations Planning Loop DSM will offer “out of the box” integration with Oracle Demantra
Warehouse Management
Consensus Forecast
Transportation Management
Su
pp
liers
Sense
Sy n
di cat ed
, PO
S, P
edi g
ree , D
i rec t Da ta E
xchan
ge
Promotion Planning
Market Demand
Forecasting
New Product Forecasting
Dis
tribu
tors
/ Co
ns
um
ers
Plan Demand
Evaluate Supply
Constraints
Strategic Network
Optimization
Inventory Optimization
Plan Supply
Constraint Based
Scheduling
Sales & Marketing
Su
pp
li er Co
ll abo
ra ti on
Manufacturing Execution
Process Control
DCS / PLC
Execute
Measure Performance
Analyze
In-Process Analytics
Design for Quality
PLM
Track & Trace
Consensus Supply Plan
DemandSignal Mgmt.
Manufacturing Hub
Oracle Today
Partner SolutionsOracle Strategy
30
The Great Information Divide Is Still There
• Typically, they don’t have access to correlated and aggregate planning data unless it is presented in a comprehensive spreadsheet or on paper
• Often, the decision is made to design and build a custom data warehouse that has no integration to the source of the data and that is a limited representation of the data
• Supply chain executives have no time to learn power user interfaces that we developed for purposed planning applications
How do the supply chain executives get access to actionable information?
Manual Co-ordination Across Functional Groups
UncertaintyVirtualization
Chaos
Globalization
Volatility
Consolidation
Risk
Compliance
Continuous Innovation
Operational Efficiency
Risk management and Compliance
Emails, Phone calls Spreadsheets, Reports
31
Solution: Advanced Planning Command Center
• Provides integrated analytics combined with process and activity management enable a more structured approach to cross planning discipline processes, analysis and decision making – Everyone looks at the same picture, no learning curve!
• Enables informed decision making through the ability to correlate data quickly and the provided drill downs to the lowest level of detail
• Pre-built – Get started quickly for quick ROI
Enables cross-planning process management, decision making and automation
UncertaintyVirtualization
Chaos
Globalization
Volatility
Consolidation
Risk
Compliance
Continuous Innovation
Operational Efficiency
Risk Management and Compliance
Preconfigured Analytics Model
Scenario, Activity and Process ManagementPre-built, configurable Dashboards and Reports
PlanningWorkbenches
32
Advanced Planning Command Center
• Scenario Analysis• Compare different scenarios, or plans, in customizable
analytical dashboards• Configure exceptions (ibots) for alerting
• Scenario Management• Define planning scenarios that span multiple constituents of the
planning community• Assign scenario activities for execution by the planning
community• Optionally group scenarios together• Combine plans together into scenarios after the fact• Copy scenarios for execution of new scenarios• Optionally, define Scenario Sets to group scenarios – Define
new scenarios for execution in the set; leverage Sets to search for limited set of Scenarios
• Activity Management• Manage assigned activities; assign new activities to users
• Process Management• Link multiple planning processes together for automated or
manual execution• Use Plan Archive to archive plan summary information• Optionally, configure to tie in non-Oracle systems• Optionally model and use approval and review steps• Use system defined (BPEL) or user defined process activities• Execute the process - plan results are stored and automatically
aggregated into analytical data
Key capabilities that enable cross-discipline process management and analysis
ExceptionsAnalytical Data
Pre-Built Dashboard Pre-Built Dashboard
Planning Data Archived Plans
Activity Lists
Preconfigured Planning Processes
ScenarioManagement
PlanArchive
Plans linked toScenarios
Executed Scenarios
Output of Executed andArchived Plans
Scenario and Plan output from executed processes
Activities (tied to Scenarios)
33
Dashboard: Demand & Supply
34
Demantra Real-Time S&OP
• Move from a periodic reactive process to a real time proactive process
• Start quickly with best practice templates and easily adapt to your business
• Sense, shape, and respond to demand
• Drive tactical decisions into execution and monitor performance
Sales and Operations Planning Process
Product ReviewDemand Review
Supply ReviewExecute and Measure
Sense
Shape
Respond
Management Review
Enabling the next generation best-in-class S&OP process
35
Oracle Demantra Demand Management
• Sense demand real-time• Capture demand more frequently, closer to the point of consumption• Capture demand and forecast at more granular level (store, shelf,
attributes, product characteristics)• Achieve consensus demand number more quickly by involving all
constituents at the same time, including customers• Quickly identify and react to demand changes and exceptions
• Improve forecast accuracy• Leverage advanced statistics for more accurate demand number• Use any combination of quantitative or qualitative data to establish your
base line forecast• High precision statistical forecasting, no statistical background required –
Superior Bayesian-Markov forecast analytics• Forecast based on attributes and characteristics• Leverage Advanced Forecast Modeling for promotion lift decomposition
and causal analysis
• Shape demand for profitability• Plan new product introductions• Plan promotions and sales incentives• Identify cross selling opportunities
• Evolve to real-time S&OP• Profitably balance supply, demand, and budgets• Align strategic and tactical plans• Role based process, proactively managed via workflow
Shipments
Marketing
forecast
Order
history
CHANNEL DATA
Customer
sales
CollaborationWorkbench
Demand Hub and Seeded Worksheets
Real-time demand sensing and collaborative consensus forecasting
36
Align With Real-Time S&OP
• Analytics-based demand management • Capture all demand data in a central place• Use analytics to develop a bottom-up forecast
• Workflow-driven collaborative planning • Enable a workflow driven multi-disciplinary
collaborative process with all stakeholders• Adaptable, configurable planning platform • Web-portal based internal & external collaboration
• Profitably balance supply, demand• Make allocation decisions, • Tradeoff service levels & cost
• Monitor Performance• Adjust demand, supply plans as conditions change • Create incentives and promotions to close gaps • Drive continuous improvement
Leverage best-in-class Sales and OperationsPlanning from Demantra
37
CompleteInfo
CompleteInfo
CollaborationIntegratedIntelligence
EnterpriseIntegrationComplete Business Flow
Web Store
Call Center
Field Sales
EDI
Service
Multi-ChannelDemand
Planning
Purchasing
DiscreteManufacturing
ProcessManufacturing
Finance
LogisticsCustomerSystems
CustomersSuppliers
ForecastingOrder Accuracy
Oracle Order Management
PlanShip-ment
PlanShip-ment
Pick, Pack& Ship
Pick, Pack& ShipTrack &
DeliverTrack &Deliver
Invoice/PaymentInvoice/Payment
CheckAvailability
CheckAvailability
ScheduleSchedule
Con-figureCon-figure
PricePrice
Tailorable,Workflow
DrivenProcess
38
Recipe & Formula Development
Recipe & Formula Development Recipe & Formula Development Process Manufacturing Product Development deliverscomprehensive and powerful tools that allow process manufacturersto manage the product lifecycle from inception through production.With OPM Product Development, you can accelerate innovation tomarket, assure consistent, quality products, and minimize costs andcompliance risks.
Enables• Compliant approval authorization, e-
records & e-signature, mass search and replace
• Change management, recipe designer, least cost formulation
• Process details, computer-aided formulation, item substitution
• Least cost formulation, formula analysis
Benefits• Secure and manage data• Accelerate recipe development• Manage variability and product
consistency• Reduce costs and optimize formulas
40
Recipe & Formula Development
Recipe & KnowledgeRepository
SecureAccessSecureAccess
Schedule
Produce
Test &Maintain
Formulate
Validate
Approve & Release
Re
tire
Co
nc
ep
t
DocumentMgmt
(MSDS)
Electronic Digital
Records
ProcessMfg Records
Testing(Stability Studies)
Web-BasedAccess
Requirements
Specifications
Studies
Schedules
Defects
Orders
Web-BasedAccess
ProcessImprovement
Workflow
Driven
SOPs
Process Product DevelopmentReducing Time to Market and Costs
Service Finance
Internal
External
Sales & Mktg Purchasing
Suppliers Customers
Engineering Manufacturing
41
• Supplier Mgmt
• Production Planning
• Multiple Plants
• Collaborative Research
• Formula / Recipe Mgmt
• What-If Analysis
• Least Cost Formulation
• Computer Aided Formulation
• Production Recipes
• Change Control Processes
• Workflow Driven
• Least Cost Formulation
• Computer Aided formulation
• Lab Batches / Pilots
• Master Batch Records
• Tracking & Reporting
• Parent Lot, Child Lot, Contaminant Tracking
• Special Packaging / Toxicity Insert Included in Bill of Materials
• MES
• Lot Quality / Consistency
• Cert. of Analysis
• Cert. of Conformance
• Specification Matching
• Lot Genealogy
Formulate Approve& Release
Schedule Produce TestValidate
End-to-End Multi-Mode Execution Process Management
Complete Supportfor FDA 21 CFR Part 11
EU &TGA Gap GuidelinesS88
ISA 95
Monitor & Adjust Performance• Process Repeatability
• Yield Performance
• Product Data Management
• Role-Based Responsibilities
• Lot Costs
Manage ingredient and process
variability
42
Recipe
Recipe & Formula DevelopmentRecipe Structure
Costing Quality
Processing
InstructionsText / Parameters
MES for Process
RoutingResources
Requirement
Validity Rules
Complete Support
for FDA 21 CFR Part 1
1
INPUTS
•R/M
•Int
•PKG
Operations
Activities
Resources
•Recipe Types
•Effectivity Dates
•Planning Rules
OUTPUTS
•FG
•By
•Co
Step/Material Association
•Capture Simultaneous Cost Methods
•Least Cost Formulation
•Evaluate / compare costs by method
•Specifications
•Samples
•Results
Formula -
Material List
•Graphical Recipe Designer
43
Collaborative Access to Product DetailsQuickly Develop New Formulations
Easily view complete / modify product details
Search, retrieve and copy from existing formulas
Drag and drop items, operations, and
process instructions
PLM for ProcessPLM for Process
Graphical Recipe Designer
Complete Supportfor FDA 21 CFR Part 11
• Formulas, Recipes & Routings
• Ingredients and Operations
• Process Instructions
• Documents (e.g., MSDS)
• Issues and Changes
• Customer Specs & Reqts
Automatically compute material quantities and anticipated yield
Define conditions for recipe component use
Initiate status change and approval process
44
Computer-Aided Formulation Model Production Requirements to Target Specifications
Product RecipeTarget Product /Customer Specs
• Recalculate Materialand Yield Quantities
• Compute Batch Characteristics (e.g., fat content, potency, etc.)
• Automatically Revise Lot Allocations
Computer-Aided Formulation
In-ProcessQC Metrics
InventoriedLot Properties
• Model & analyze impact of formulation change before producing expensive and time consuming laboratory test batches
• Perform ‘what if’ new or revised formulations without interfering with production
• Optimize using specify product target properties and allow software to reformulate ingredients
45
Least Cost FormulationSpeed Innovation though Quality and Cost Optimization
INNOVATION & COMPETITIVENESS• Leverage existing architecture• Meet product specifications every time• Eliminate guesswork from formulation process
COST & COMPLIANCE PRESSURES• Select price-optimal formulas and batches• Reduce costs by using least cost ingredients• Fulfill regulatory requirements for products
VARIABILITY & QUALITY• Optimize variability of material characteristics• Select alternative ingredients for use-up• Formulate based on product target attributes
46
Least Cost Formulation Optimize Costs while Complying with Product Requirements
• Generate formulations based on material, compositional, and technical requirements
• Analyze formulations using Product Requirements
• Load cost from any source
• Create formulas or production batches directly
Least Cost FormulationItem Weight Cost Brix
---------------------------------------------------- Milk 15 825.07 0.3080 12.000Milk 23 825.07 0.5234 14.600Milk 12 825.07 0.3080 12.000Sugar 329.31 0.3100 65.000Chocolate 4.38 0.3200 33.000Stabilizer 4 36.22 0.3800 0.000---------------------------------------------------
• Quality• Regulatory• Chemical• Nutrients• Costs
ProductRequirements
Formula
Batch
AlternateIngredient
Listing
47
Focus on Product TargetsAssure customer satisfaction at target cost
•Water
•Grapefruit Juice
•Apricot Juice
•Ingredients
•55
•25
•5
•Qty
Least Cost Formulation Process – Start with Product
Typical Formulation Process – Start with Ingredients
Fruit Juice Product
•Product: Fruit Juice
•SWEETNESS
•%MOISTURE
•BRIX
•COST
•Water
•Grapefruit Juice
•Apricot Juice
•Ingredients
•0•100•0•.75
•29.5•70•27•8.00
•30•70•28•10.00
•SWEET•%MOIST•BRIX•COST
48
Recipe & Formula Development
Recipe & Formula Development Recipe & Formula Development Process Manufacturing Product Development deliverscomprehensive and powerful tools that allow process manufacturersto manage the product lifecycle from inception through production.With OPM Product Development, you can accelerate innovation tomarket, assure consistent, quality products, and minimize costs andcompliance risks.
Enables• Compliant approval authorization, e-
records & e-signature, mass search and replace
• Change management, recipe designer, least cost formulation
• Process details, computer-aided formulation, item substitution
• Least cost formulation, formula analysis
Benefits• Secure and manage data• Accelerate recipe development• Manage variability and product
consistency• Reduce costs and optimize formulas
49
Supply Chain Planning
Supply Chain PlanningSupply Chain Planning provides enterprise-wide coordination to balance material supply with demand and to ensure timely delivery of finished products. To balance inventory supply and demand, OPM Material Planning examines pending inventory transactions, applies demand to current inventory balances, suggests specific actions based on user-defined sourcing rules, and projects inventory availability dates based on Unconstrained ASCP recommendations. OPM Material Planning is more than typical MRP system planning material. It will also provide the user a Rough Cut Capacity view of resource loading. For CRP (Capacity Resource Planning) OPM uses Oracle ASCP in a constrained and optimized plan.
Enables• Access real-time information from sales,
production and inventory to make quick and accurate decisions.
• Perform “what if” calculations to view and react to the effects of unanticipated orders or shop floor problems such as resource breakdowns and overloading.
• Evaluate Firm Planned Orders before implementing by checking ingredient and resource loading availability then commit FPO’s to production.
Benefits• Material and rough cut capacity planning • Enhanced co-product planning • Ability to perform on-line simulations • Perform “what if” calculations to view the
effects of unanticipated orders • Access real-time information from sales,
production, inventory
50
Supply Chain PlanningOptimize Inventory by Location and Quantity
EnterpriseLevel
RegionLevel
Plant Level
• Leverage current enterprise-wide data
• Optimize inventory and resources across supply chain in one step
• Customize planner-specific views
• Planner workbench enables drag and drop rescheduling, “what-if” simulations
51
• Model SDS directly and schedule activities to reduce changeover time
• No need to reduce resource efficiency or utilization as a surrogate for changeover time
L H M H L
L HM HL
ProductionBatch
DemandQuantity & Date
Route 1, v. 3Route 1, v. 3
Recipe X Formula X, v. 5
Validity Rules
v1 v3v2
• Specify Recipe Conditions for Seasonality, Equipment capacity, Plants: global vs. local data, Preferences and Use
• Products May Have Multiple Valid Recipes
• Alter Recipe for Each Production Run
Rule-Based Recipes Accommodate Seasonality, Variability
Support Sequence-Dependent Setup (SDS)
Planning in Process Industries
52
Distribution PlanningOptimize Supply Allocation to Distribution Centers
• Fair share allocation
• Inventory policy
• Circular sourcing
• Shipping method selection and load consolidation
• Global forecast local allocation of supply across distribution network
Automatically generate transfers• Create internal transfers
• Create consolidated shipments
• Integrated with Transportation Mgmtfor carrier and mode selection
Determine optimal supply allocation from plants to distribution centers
Multi-Plant Planning
Demand Planning
Demand
Supply
Distribute
Distribution Planning
DC
RDC
53
Enterprise-Wide Purchasing AutomationDrive Compliance and Manage Spending Behavior
Configurable, Pre-modeled Best Practice Purchasing Workflow
Services
Designed Equipment
Products
Indirect& MRO
Online Catalogs & Contracts
Receive & Reconcile
Approval Policies(e.g., Funds Checking)
Review / Approve
Create & Route PO
Pay Supplier
Matching Rules
Accrue / RelieveTax Encumbrance
Requisition
54
Oracle Sourcing & Procurement
DemandCollection
IndirectGoods
DirectMaterials
EngineeredGoods
Services ApprovalRouting
TouchlessBuying
Automated Payment
Enforce Policy Compliance
Budget-BasedProcurement
ContractManagement
SupplierPerformance
Reduce Spend on Goods and Services
CategoryManagement
OnlineSourcing
SpendAnalysis
Streamline Procurement Processes
SupplierCollaboration
Settlement
Orders
ProfileManagement
SupplierNetwork
Logistics
SupplierPortal
Source
55
Supply Chain Planning
Supply Chain PlanningSupply Chain Planning provides enterprise-wide coordination to balance material supply with demand and to ensure timely delivery of finished products. To balance inventory supply and demand, OPM Material Planning examines pending inventory transactions, applies demand to current inventory balances, suggests specific actions based on user-defined sourcing rules, and projects inventory availability dates based on Unconstrained ASCP recommendations. OPM Material Planning is more than typical MRP system planning material. It will also provide the user a Rough Cut Capacity view of resource loading. For CRP (Capacity Resource Planning) OPM uses Oracle ASCP in a constrained and optimized plan.
Enables• Access real-time information from sales,
production and inventory to make quick and accurate decisions.
• Perform “what if” calculations to view and react to the effects of unanticipated orders or shop floor problems such as resource breakdowns and overloading.
• Evaluate Firm Planned Orders before implementing by checking ingredient and resource loading availability then commit FPO’s to production.
Benefits• Material and rough cut capacity planning • Enhanced co-product planning • Ability to perform on-line simulations • Perform “what if” calculations to view the
effects of unanticipated orders • Access real-time information from sales,
production, inventory
56
Inventory Management
Inventory Management Inventory Management With Inventory Management you can improve inventory visibility, reduce inventory levels and control inventory operations. All of your material in each line of business and stage of the inventory lifecycle can be tracked in a single system. Increased transparency will reduce the need for local buffer stocks, and inventory will be located where it previously wasn’t known to exist.
Enables• Multi-purposed single item, dual & multiple
UOM, auto lot allocation, grade control, divisible lot control
• Dual UOM, shelf life management, grade control, lot level status control, physical and cycle counting, APIs
• Parent / child lot tracking and traceability• Audit trail, strong security, ERES,
Inventory tied to Regulatory
Benefits• Satisfy customer demand quickly and
accurately• Reduce costs with efficient Inventory
Management• Reduce risk with rapid lot genealogy
analysis• Ensure Regulatory compliance
57
Inventory ManagementCapture Location & Composition thoughout Lifecycle
Multi-Level Where Used /
Lot Source
Multi-Level Where Used /
Lot Source
Product Attributes Shelf life Retest interval Potency Dual units of measure User-defined classifications
Plant
Item
Inventory Org
Locator
Parent Lot
Child Lot
Grade
Company ABC Company
Manufacturing Location
Product
Inventory Location/Warehouse
Batch ID / Pallet #/Billet
Traceable Quantity of Material/Heat
Area, Tank, Zone, etc.
Grade A,B,C w/in a Spec
• Improve Recall Responsiveness / Cost
• Trace Materials Enterprise-Wide to Analyze Vendor Quality
• Comply with International Regulations
Lot Status Released, Hold, Quarantine
Sub-inventory
Row/Rack/Bin
58
Single Source of Truth for Inventory Availability Summary of Business Gains for Process Users
• Vendor-Managed and Consigned Inventory to reduce on-hand inventory
• Improve picking and putaway process with Warehouse Management• Leverage Mobile Supply Chain Applications to improve productivity• Flexible account mapping with Subledger Architecture• Real-time Lot Management Transactions
• Lot Merge• Lot Split• Lot Translate• Flexible Attribute Definition• Attribute Inheritance
• Advanced Unconstrained Advanced Supply Chain Planning replaces Oracle Process Manufacturing MRP
• Subledger Architecture replaces Manufacturing Accounting Controller
59
OPM Multiple Units of Measure
• Package / Liquid / Solid contents can vary by containers • Track onhand inventory in two units of measure simultaneously• Formulate and Transact in any convertible UOM
• Unlimited types of UOMs associated with item (lb, cases, rolls, bags, trucks)
• May record different quantities for each lot (Each case, may have different amount of Gallons
• Unlike other software, works with Purchasing, Order Management, and Costing
• Not a modification, inherent to entire application
L0t 0012 Case = 20 Ltr 20.0 Ltr
vs
Lot 001- A1 Case = 8 Ltr
Lot 001- B1 Case = 12 Ltr 20.0 Ltr
60
Automatic Lot Allocation
OPM selects ingredient lots based on FIFO or FEFO methods
2/1/20082/1/20082/5/20082/5/2008Creation Date
1/1/20081/1/2008FIFO
2/15/20092/15/20093/5/20093/5/2009
Lot ALot A Lot CLot CLot BLot B
Expiration Date
Production batchProduction batch
ShipmentShipment
2/10/20092/10/2009
FEFOAdditionally, for customer shipments:• Preferred Grade• Match on Quality Specification• Remaining Shelf Life
61
Inventory Management
Inventory Management Inventory Management With Inventory Management you can improve inventory visibility, reduce inventory levels and control inventory operations. All of your material in each line of business and stage of the inventory lifecycle can be tracked in a single system. Increased transparency will reduce the need for local buffer stocks, and inventory will be located where it previously wasn’t known to exist.
Enables• Multi-purposed single item, dual & multiple
UOM, auto lot allocation, grade control, divisible lot control
• Dual UOM, shelf life management, grade control, lot level status control, physical and cycle counting, APIs
• Parent / child lot tracking and traceability• Audit trail, strong security, ERES,
Inventory tied to Regulatory
Benefits• Satisfy customer demand quickly and
accurately• Reduce costs with efficient Inventory
Management• Reduce risk with rapid lot genealogy
analysis• Ensure Regulatory compliance
62
Comprehensive Process MFG Solutionwith MES
Comprehensive Process MFG Solution Comprehensive Process MFG Solution Process Execution ensures manufacturing consistency throughout the production cycle by providing tight control over ingredients and processes, balanced with the flexibility to respond to changing plant conditions
MES for Process ManufactringMES for Process Manufactring (MES) provides intensive, multifaceted shop floor execution capabilities. The application allows process manufacturers to deploy Oracle Process Manufacturing directly on their shop floors as the manufacturing execution system (MES) as well as use Touch Screen based devices.. MES for Process manufacturing eliminates many unnecessary and non-value-added activities by providing a structured and standards-based shop floor execution toolset.
Enables• Model complex process flows, rule based
recipes, scaling• Automated reservations and lot
allocations, incremental backflush, dispensing / pre-weigh, operators workbench
• Operators workbench e-records and e-signature, non-conformance
• Computer-aided formulation, least cost formulation
Benefits• Maximize production flexibility• Drive efficient, compliant shop floor
production• Streamline production and compliance
reporting• Manage variability and product
consistency
63
• Enable operations to run simultaneously, feed one or more operations, or be fed by one or more operations
• Specify multiple starting operations and multiple terminal operations for routings
• Yield products at other operations in addition tothe last one
10
20
30
40
50
60
70
80
90
110
100 120
Product A
Product B
Yields co-product D to routing Y
Yields co-product C to routing X
Production Scheduling in Process Industries
Standard Delay Max Delay
A1
B1 B2
OP 20
Act 1 Act 2 Act 3 Act 4
OP 10
Act 1 Act 2 Act 3 Act 4
A2
• Support minimum and maximum time offsets between operations
• Apply minimum and and maximum offsets to charges
• Respect shelf life of items purchased from suppliers
• Respect on hand lot expiration date when planning the use of the lotto meet demands
Schedule Complex Routings
Schedule Operations with Hard Links
Mixer
Packaging
Single activity, multiple charges
Schedule Charges
• Schedule a charge as a continuous process
• Apply operation dependencies to charges
• Overlap operations by incremental feeding to and from chargeable resources
64
Comprehensive Process Mfg Solution Manage Production to Ensure Optimal Conditions
• Record process parameters
• Automatically calculate step quantities
• Capture electronic signatures as required
• Compare and report planned vs.work in process vs. actual
• Make iterative real-time adjustments
• In-process samples and tests
40 Test
10 Weigh
30 Blend 50 Package
20 Heat
E-Sign Resource+ActivityUsage/Qty
Resource+ActivityUsage/Qty
Resource+ActivityUsage/Qty
Resource+ActivityUsage/Qty
E-Sign
E-Sign E-Sign E-Sign
Start to Start
Finish to Start
Ingredient 1 Ingredient 2
Ingredient 4 Ingredient 5
Ingredient 3
Product 2By-Product 1 Product 1
65
Computer-Aided Formulation Model Production Requirements to Target Specifications
Product RecipeTarget Product /Customer Specs
• Recalculate Materialand Yield Quantities
• Compute Batch Characteristics (e.g., fat content, potency, etc.)
• Automatically Revise Lot Allocations
Computer-Aided Formulation
In-ProcessQC Metrics
InventoriedLot Properties
• Model & analyze impact of formulation change before producing expensive and time consuming laboratory test batches
• Perform ‘what if’ new or revised formulations without interfering with production
• Optimize using specify product target properties and allow software to reformulate ingredients
66
MES for Process ManufacturingControl Demand-Driven Mfg with Integrated Shop Floor Execution
System Automation & Control
Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management
Reduced TCO / Complexity via Integrated Mfg Mgmt & Production Execution
MESMES
ERPERP
Corp Mgmt
Shop Floor Control
Production MgmtProduction Mgmt
Process Engineer• Manage recipes & advanced process
instructions
Production Supervisor• Create & manage batch status• Log non-conformances
Dispensing / Prod Operator• Pre-weigh designated ingredients• Process batch operations
67
Enforce Manufacturing Best Practices New MES Product Guides Operator through Operations
ERP
MES
Process
Controls
Corporate Management
Plant Management
Process Management
OPM + MES for Process
Mfg
68
Model Actual Scenario of Shop Floor Improve inventory visibility at each stage of the Supply Chain
• Reservation supply to assure inventory meets customer needs• High level• Detail Level
• Model plant areas so that stock is readily available• Dispensing Locations• Staging Locations
ProductionOperator
Materials ManagerProductionSupervisor
DispensingOperator
Review andApprove Schedule
Schedule FPO / Batch& Reserve Materials
Dispense Ingredients with
Detailed Reservations
Move IngredientsTo Staging
Location
ReverseDispense
Ingredients
Complete & Close Batch
Log Nonconformances
Review ControlBatch Record
Consensus forecast and
production plan
Lock Operation, Follow PI,
Execute Tasks
69
Supervisor Workbench Graphical Dispense Planning View
Dispense Planning details at Area/booth,
Resource, Storage Area
Dispense Capacity Plan Vs Actual
Display Bucket (Daily / weekly)
70
Complete Process Support for Work Instruction Display, Dispensing, Batch Progress Tracking, and Ingredient Consumption Reporting
Dispensing WorkbenchImprove Accuracy & Compliance While Reducing Risk
• Touch Screen enabled
• Improve accuracy by removing human interaction
• Generate Labels
• Enforce compliance- Configurable level of
control on process instructions enforce best practices and regulatory compliance
• Reduce complexity & risk- Simplified task- based
operator interface
- Consolidate systems
Multiple methods Multiple methods supportedsupported
71
Complete Process Support for Work Instruction Display, Batch Progress Tracking, and Ingredient Consumption Reporting
Focus on the Operator
• Touch Screen enabled
• Process guides operators through everything to complete their work
• Configurable level of acknowledgement
• All responses logged in Electronic Batch Record
Links to SOPs
Online Process Instructions
Operator Workbench Provides Next Task Forces Compliance with mandatory acknowledgment rules
Configurable acknowledgement:Configurable acknowledgement:• OptionalOptional• Required AcknowledgementRequired Acknowledgement• E-Signature(s)E-Signature(s)
One-Click Access to One-Click Access to Transactional Forms Transactional Forms
72
Operator Certification
Certification Setup for
Organization, Transaction
Criteria for Enabling Operator
Certification
Override Status
73
Oracle MES for Process Mfg.Additional Benefits
• Board Room to Shop Floor Visibility• Process Repeatability • Enforce Best Practice SOPs• Reduce Labor - Remove a Level of Approvals • Eliminate Massive Amounts of Paper• Advanced Search Capability• Eliminate Errors• Lower Training Costs• Lower Cost of Compliance
74
Comprehensive Process MFG Solutionwith MES
Comprehensive Process MFG Solution Comprehensive Process MFG Solution Process Execution ensures manufacturing consistency throughout the production cycle by providing tight control over ingredients and processes, balanced with the flexibility to respond to changing plant conditions
MES for Process ManufactringMES for Process Manufactring (MES) provides intensive, multifaceted shop floor execution capabilities. The application allows process manufacturers to deploy Oracle Process Manufacturing directly on their shop floors as the manufacturing execution system (MES) as well as use Touch Screen based devices.. MES for Process manufacturing eliminates many unnecessary and non-value-added activities by providing a structured and standards-based shop floor execution toolset.
Enables• Model complex process flows, rule based
recipes, scaling• Automated reservations and lot
allocations, incremental backflush, dispensing / pre-weigh, operators workbench
• Operators workbench e-records and e-signature, non-conformance
• Computer-aided formulation, least cost formulation
Benefits• Maximize production flexibility• Drive efficient, compliant shop floor
production• Streamline production and compliance
reporting• Manage variability and product
consistency
75
Electronic Batch Record/E-Signature
Electronic Batch Record/E-SignatureElectronic Batch Record/E-SignatureE-Records is a configurable framework for secure capture, storage, inquiry, and printing of electronic records and electronic signatures (ERES) in compliance with government regulations, such as the United States Food and Drug Administration (US FDA) 21 CFR Part 11. .
Enables• Built-in Compliance • One-step e-signature with optional e-
record view • Manages critical information related to
production orders, quality records, or other information key to conformance with FDA Good Manufacturing Practices (cGMP),
Benefits• Reduced cost of compliance • Increased speed • Improved collaboration • Enforced best practices • Advanced search and analysis for audit • Controlled document printing
76
Operation details, including Process Instructions and
Operator Comments
Electronic Batch Record
Dispensing detailsNonconformances
77
Eliminate Massive Amounts of PaperCompletely replace paper batch recordswith Electronic Batch Records
• Master Batch Record is comprised of all Recipe info• Control Batch Record is the record of each batch
• Documents all events & data generated during a batch’s life cycle
• Materials, resources, steps, deviations, QC samples, labels, process instructions, e-signatures,etc.
• As events occur, they are appended to the CBR
• PDF format, securely stored in the E-Records Evidence Store
78
Electronic Batch Record/E-Signature
Electronic Batch Record/E-SignatureElectronic Batch Record/E-SignatureE-Records is a configurable framework for secure capture, storage, inquiry, and printing of electronic records and electronic signatures (ERES) in compliance with government regulations, such as the United States Food and Drug Administration (US FDA) 21 CFR Part 11. .
Enables• Built-in Compliance • One-step e-signature with optional e-
record view • Manages critical information related to
production orders, quality records, or other information key to conformance with FDA Good Manufacturing Practices (cGMP),
Benefits• Reduced cost of compliance • Increased speed • Improved collaboration • Enforced best practices • Advanced search and analysis for audit • Controlled document printing
79
Quality-Oriented Process Management
Quality-Oriented Process Management Quality-Oriented Process Management Process Manufacturing Quality Management empowersProcess companies to achieve product consistency, enforce proactivequality assurance, streamline quality lab productivity, and assurecustomer and regulatory compliance.
Enables• Stability studies, lot expiration
management, process control points, quality throughout the supply chain
• Standardized inspection methodology, workflow, e-records and e-signature
• Automated test/lab assignment, quality workbench
• Customer spec matching, CofA / CofC, lot traceability
Benefits• Achieve product consistency• Enforce proactive quality assurance• Streamline quality lab productivity• Assure customer and regulatory
compliance
80
Pre-defined Workflow-Driven Processes and Electronic Records
Standardize Sample Analyze Disposition Report
Inspection Points• Receipt, WIP, shipping
• Lot expiration/retest
• Environmental monitoring/testing
• Input APIs
Global Standards• Tests & methods
• Sampling plans
• Specifications
Compliance• Certificate of analysis
or conformance
• Lot genealogy
Results• Mass results entry
• Composite result statistics(min/max, std dev, average)
• Stability studies
• Output APIs
Attributes• Lot status (quarantine, available)
• Order allocation (based on specs)
• Material usage decisions
• Adjust batches• Change formulation or procedures
ProcessImprovement
Quality-Oriented Process ManagementManage Variability and Assure Product Consistency
81
Suppliers Customers
Inventory ShippingReceiving
ProductionAutomatic Workflow Notificationsat Each Quality Check Point for:
• Sample Creation
• Assay Testing
• Sample Disposition Decision
Pre-Defined Quality WorkflowsCheck Quality Throughout the Supply Chain
Quality check points
Nonconformance ManagementCapture and Record Deviations
• Access directly from batch
• Capture and document nonconformances / deviations
• Configurable criticality- Informational
- Resolution required prior to completing batch or step
- Configurable e-signatures
• Included in control batch record- Critical nonconformances must
be reviewed and signed prior to close of the batch
- Leverages Oracle Quality
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
“Any deviation from the written pro-
cedures shall be recorded and justified.” -- 21 CFR Part 211.100, Written procedures for deviations
83
• Define internal and customer products specifications
• Match available inventory to customer specifications
• Provide Certificate of Analysis (COA) with each shipment
Specifications ManagementCapture and Meet Unique Customer Specifications
CustomerSpecification
ItemSpecification
Min Max
Match
In-Spec Out-of-SpecOut-of-Spec
Lab Technician
Study Owner
Lab Supervisor
Study Definition• Sample Numbering• Monitoring Specs• Storage Conditions• Storage Packaging• Testing Intervals• Item Specs
ProductionBatch
Stability Samples
Overlay Monitoring Specification (1)
Base Monitoring Specification
Overlay Monitoring Specification (n)
0 1 3 6 9 12 18 24 months
0 1 2 3 6 months
0 months12
Work Flow Notices
Study Execution• Ensure Timely Execution of All Data Points• Assess Product Quality Over Time and Varying Environment• Capture Recommended Shelf Life and Storage Condition• Support Research and Development Activities• Comply With FDA Guidelines in Regulated Industries
Stability StudiesMeasure the Effects of Environmental Aging
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
85
Compliant Approval AuthorizationEnsure Participation by All Stakeholders
Packagingitem
Intermediate
FinishedGood
Ingredient 3Ingredient 2Ingredient 5 Ingredient 4
By-product
Version 2
Approved
• Mandatory Version Control
• Automated Approval Cycle
• Define Conditions for Recipe Component Use
• Route Approvals to Groups / Individuals
Formulator Requests ‘Approved for Lab Use’
Approved
For
Lab Use
86
Quality-Oriented Process Management
Quality-Oriented Process Management Quality-Oriented Process Management Process Manufacturing Quality Management empowersProcess companies to achieve product consistency, enforce proactivequality assurance, streamline quality lab productivity, and assurecustomer and regulatory compliance.
Enables• Stability studies, lot expiration
management, process control points, quality throughout the supply chain
• Standardized inspection methodology, workflow, e-records and e-signature
• Automated test/lab assignment, quality workbench
• Customer spec matching, CofA / CofC, lot traceability
Benefits• Achieve product consistency• Enforce proactive quality assurance• Streamline quality lab productivity• Assure customer and regulatory
compliance
87
Cost Management
Cost Management Cost Management Process Manufacturing (OPM) Costing combines detailed cost-tracking features with flexible analytical tools to help process manufacturers determine their true product costs. OPM Costing supports Standard, Actual and Lot costing types to calculate costs and create reports to analyze data at the most granular level. Using Oracle Sub-ledger Application, necessary accounting entries are created for all the transactions.
Enables• Multiple cost methods: standard, actuals,
lot, composite• Co-products, by-products, unlimited cost
elements, cost allocations• Cost monitoring, cost analysis• Flexible account mapping, sub-ledger flow,
drilldowns
Benefits• Optimize profits and margins• Capture precise product costs• Facilitate proactive cost management• Assure proper accounting of resources &
materials
88
Cost ManagementAnalyze and Control Product Costs
• Maintain multiple cost methods simultaneously
• Measure direct and indirect labor costs
• Capture resource and utility costs
• Least Cost Formulation
• Include all material costs, (e.g. direct, contract)
• Evaluate / compare costs by method
- Standard vs Actual- Weighted Avg vs Budget- Period vs Standard- Standard vs Actual Lot
IndirectAcquisition Overhead ResourceMaterial
ActualActual StandardStandard PeriodPeriodLotLot
CostDevelopment
Monitoring& Analysis
Allocation Valuation
89
Cost Management
Cost Management Cost Management Process Manufacturing (OPM) Costing combines detailed cost-tracking features with flexible analytical tools to help process manufacturers determine their true product costs. OPM Costing supports Standard, Actual and Lot costing types to calculate costs and create reports to analyze data at the most granular level. Using Oracle Sub-ledger Application, necessary accounting entries are created for all the transactions.
Enables• Multiple cost methods: standard, actuals,
lot, composite• Co-products, by-products, unlimited cost
elements, cost allocations• Cost monitoring, cost analysis• Flexible account mapping, sub-ledger flow,
drilldowns
Benefits• Optimize profits and margins• Capture precise product costs• Facilitate proactive cost management• Assure proper accounting of resources &
materials
90
Performance Analysis
Performance Analysis Performance Analysis Daily Business Intelligence (DBI) for Manufacturing offers manager enhanced visibility into their manufacturing operation. It enables them to maximize manufacturing performance by enabling them to identify potential issues earlier and gives them a tool to address them before they escalate into real problems.
DBI for Manufacturing provides reliable information directly from mission-critical business applications in a self-service fashion freeing executives from hard-to-use, error-prone custom solutions. Using DBI for Manufacturing, managers have rich, integrated and up to the day information to improve manufacturing execution and meet strategic objectives.
Enables• Reliable information directly from mission-
critical business applications• Manufacturing management, plan
management
• Complete supply chain intelligence offering with:
Customer fulfillment, shipping, inventory, manufacturing, product cost, plan, transportation and warehouse management pages
• KPIs, graphs, charts, tables, drill downs
Benefits• Make better faster business decisions• Improve manufacturing execution• Meet strategic objectives• Manage by exception
91
Performance Analysis through Oracle’s Daily Business Intelligence for Manufacturing & Supply Chain
Daily Business Intelligence for Manufacturing
Comprehensive presentation of real time Manufacturing Data in form of graphs, reports, etc
Capability to view and analyze costs related to manufacturing
Manufacturing Plans comparison, Resource Utilization tracking
Performance Analysis
Reports
Real-TimeResults
Graphs
PerformanceMeasures
92
Performance Analysis
• Manufacturing Management KPIs :• Production To Plan• Production Value •On-Time Production•Manufacturing Cost Variance•Material Usage Variance•Resource utilization•Resource Variance
• Manufacturing new reports :•On-Time Production•Current Production Delayed
93
Performance Analysis
• Inventory Management KPIs :• Inventory Value•Annualized Inventory Turns •Hit/Miss Accuracy•Gross Adjustment Rate•Exact Match
• Inventory new reports :•Inventory Days on-Hand•Current Inventory expiration Status•Current Inventory Status
94
Performance Analysis
Performance Analysis Performance Analysis Daily Business Intelligence (DBI) for Manufacturing offers manager enhanced visibility into their manufacturing operation. It enables them to maximize manufacturing performance by enabling them to identify potential issues earlier and gives them a tool to address them before they escalate into real problems.
DBI for Manufacturing provides reliable information directly from mission-critical business applications in a self-service fashion freeing executives from hard-to-use, error-prone custom solutions. Using DBI for Manufacturing, managers have rich, integrated and up to the day information to improve manufacturing execution and meet strategic objectives.
Enables• Reliable information directly from mission-
critical business applications• Manufacturing management, plan
management
• Complete supply chain intelligence offering with:
Customer fulfillment, shipping, inventory, manufacturing, product cost, plan, transportation and warehouse management pages
• KPIs, graphs, charts, tables, drill downs
Benefits• Make better faster business decisions• Improve manufacturing execution• Meet strategic objectives• Manage by exception
95
Integrated Warehousing and Logistics
EnterpriseIntegration
Supply ChainPlanning
Order Management
Production
Continuous Improvement
• Inbound
• Supply
• Source
• Outbound
• Demand
• DestinationCarrierAnalysis
On-TimePerformance
CustomerSatisfaction
Continuous Planning
Collaboration& Event Mgmt
Portal / Messaging
Procurement /Financials
GlobalCustomers
Carriers /3PLs
Book /Tender
Receive &
Putaway
Manage Whs
Pick & Label
Pack & Ship
Plan Loads / Moves
Select Modes & Carriers
Track & Trace
Audit / Settle
96
Multi-Level Material/Resource Traceability
Multi-Level Material/Resource TraceabilityMulti-Level Material/Resource TraceabilityOPM Quality Management offers comprehensive lot genealogy capabilities to tracematerials from receipt through customer shipment. It provides an easily accessible,online record that indicates when lots were sampled for quality inspection and wereused in production, moved, or shipped as end products—the information needed toprove compliance with government regulations, ISO 9000 requirements, or yourown internal quality standards.
Enables• Reduce risk with rapid lot genealogy
analysis• Lot Genealogy with Sampling History
Benefits• Better Customer Responsiveness• Parent / child lot tracking and traceability• End to End Tracking
97
Multi-Level Material/Resource TraceabilityComply with Stringent Regulatory Requirements
Where UsedWhere Used
Lot SourceLot Source
Supplier Ingredients CustomersIntermediate orBulk Products
Finished Product
Resources /Equipment
• Improve Recall Responsiveness / Cost
• Comply with International Safety Regulations
• Trace Materials Enterprise-Wide to Analyze Vendor Quality
98
Multi-Level Material/Resource Traceability
Multi-Level Material/Resource TraceabilityMulti-Level Material/Resource TraceabilityOPM Quality Management offers comprehensive lot genealogy capabilities to tracematerials from receipt through customer shipment. It provides an easily accessible,online record that indicates when lots were sampled for quality inspection and wereused in production, moved, or shipped as end products—the information needed toprove compliance with government regulations, ISO 9000 requirements, or yourown internal quality standards.
Enables• Reduce risk with rapid lot genealogy
analysis• Lot Genealogy with Sampling History
Benefits• Better Customer Responsiveness• Parent / child lot tracking and traceability• End to End Tracking
99
Pre-Built Process Manufacturing Mobile Transactions
• Mobile Create Reservations • Mobile Update Reservations • Mobile Issue Ingredients • Mobile Return Ingredients • Mobile Complete Product • Mobile Return Products • Mobile Create Pending Lot • Mobile Update Pending Lot • Mobile Backflush• Mobile Product Completion by LPN
• Mobile Product Completion by LPN with directed drop
• Mobile Product Completion By LPN with load
• Mobile menu for Process Execution LPN Product Completion
• Mobile Resource Usage • Mobile Start Resource • Mobile End Resource • Mobile Release Step • Mobile Complete Step
100
Pre-Built Inventory Transactions
• Receiving Transactions (Receive PO, RMA, In-transit Shipment, Internal Requisition & Receive any document)
• Quality Inspection• Inventory Delivery• Miscellaneous Inventory
Transactions (Receipt & Issue)• Subinventory Transfer• Inter-organization Transfer• On hand balance inquiry• Locator inquiry
• Cycle Count Entry • Physical Inventory Count Entry• Consume Consigned Inventory• Pick Confirm (sales orders,
replenishments & move order requisitions)
• Ship Confirm• Replenish Kanban Cards• Kanban Card Status Inquiry• Replenishment Count Entry• Label Reprint Request
101
Manufacturing Operations Center
Manufacturing Operations CenterManufacturing Operations Centeris a new solution built on a next generation Manufacturing Operations architecture, leveraging the ISA-95 reference model. The solution the divide between relatively stable world of business users relaying on ERP and back office applications and real-time exception prone world of the manufacturing users relying on variety of shop floor systems. Manufacturing Hub provides real-time visibility in to shop floor operations by connecting to disparate data sources available on the shop floor including MES, Quality, and Maintenance, LIMs, Historians as well as the automation and control layer. The solution is also designed to orchestrate data flow between ERP and back office applications and shop floor systems. Oracle Manufacturing Hub is the first solution in the industry that provides out of the box operational analytics with flexibility and configurability of a toolkit.
Enables
• Eliminate discrepancy between manual data and machine data
• Perform preventive maintenance based on machine “actuals” vs. “best guess”
• Achieve visibility for lean and six-sigma programs
• Progressively eliminate on-hold and other production issues
• Gain competitive edge by sharing quality information with customers
Benefits• Contextualize Plant Floor Data and
Synchronize with ERP• Provide Real-Time Intelligence for Plant
Operations• Leverage Next Generation Manufacturing
Operations Architecture
102
Mfg Integration & Intelligence Opportunity
Source: AMR Research, 2003
Production efficiency improvement -- 25%
Cycle time improvement -- 13 to 20%
Increase in asset utilization -- 10%
Annual payback potential -- 10x
Plus…• Eliminate discrepancy between manual data and machine data
• Perform preventive maintenance based on machine “actuals” vs. “best guess”
• Achieve visibility for lean and six-sigma programs
• Progressively eliminate on-hold and other production issues
• Gain competitive edge by sharing quality information with customers
103
Leverage Next-Generation Manufacturing Operations Architecture
“It is often more expedient to install an abstraction layer built on a plant-level data store than to reengineer the plethora of existing applications to achieve normalization. We see this approach rapidly emerging as a best practice.” -- Alison Smith, February 2008
• Built on a common abstraction layerof production / equipment data
• Leverage existing investments in plant IT infrastructure – no rip & replace
• Allows for gradual upgrade of plant systems
Next-Generation Architecture
AbstractionLayer
ERP
Distributed Plant Systems
Automation & Control
Manufacturing HubManufacturing Hub
104
Oracle Manufacturing Operations Center
The Foundation for Continuous Improvement in Manufacturing
Operations
Automation& Process
ControlSystems
ERPSystems
Users
PLC CNCMachines
DCS SCADASystems
AdvancedProcessControl
HumanMachineInterface
- MES- Quality- Cost Mgmt…
ManufacturingOperationsData Model
(ISA-95)
ManufacturingOperationsData Model
(ISA-95) Role-BasedDashboards
Contextual-izationEngine
Corporate BI
Cross-PlantKPIs
HistoricalTrends
Plant-SpecificKPIs
Real-TimeUpdates
Device-Generated Data
Production ActualsSchedules
Item Master Data
ProductionManager
Plant Mgr /VP of Mfg
Distributed Plant Systems Shop Floor Communication Drivers
105
Single Repository for Mfg Operations DataProvide Consistent Information forAll Manufacturing Users
• Generic data model supports hierarchical structure for reporting or building KPIs and metrics
- Support for industry standardssuch as S-95
- Out-of-the-box hierarchical dimensions: time, product, and equipment
- Flexible and configurable
• Open and extensible to meet the requirements of different industries
- Capture process variables
- Capture additional parameters for Item, Equipment, and Work Orders
Manufacturing
Operations
Data Model
Manufacturing
Operations
Data Model
Gra
nula
rity
Enterprise Level- Products- Orders- Plans / Schedules
Plant Level- Work Orders- Batches- Mfg Routing
Equipment Level- Availability- Status- Output- Quality- Parameters
Device Level- I/O Tags- Sensor ID
106
Role-Based Dashboards and KPIsDeliver Performance Measures by Responsibility
• Pre-built role-specific dashboards, reports, and alerts
• Graphical views
- Trend charts- Graphs- Tables
• Embedded best-practice calculations and KPIs
• Analytic workflows to drive actions
• Drill-downs into details forroot-cause analysis
• Leverages OBIEE+
• Configurable and customizable
Are we achieving our costand productivity targets?
What is happening now?What happened last shift?
How is the machine performing?
VP of Operations
Plant Manager
Production Manager
Production Supervisor
Operator
QA Engineer
- Red-yellow-greenindicators
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Extensible Analytical Engine
and Dashboarding Tool
Most standard Most standard KPIs availableKPIs availableout-of-the-boxout-of-the-box
• Accelerate deploymentand adoption
• Easily adapt dashboards and metrics
• Provides a comprehensive Operational Intelligence framework
Easily identify, select, modify, Easily identify, select, modify, and format relevant KPIsand format relevant KPIs
Build a Decision Support System Unique to Your Environment
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Deploy Based on Business PrioritiesGenerate Value Regardless of Implementation Scope
Line-by-Line or Work Center
Plant-Wide Performance
Network of Plantsand/or Contract Manufacturers
ScopeLocal Global
Val
ue
Identify opportunities for streamlining operations
Focus on line and machine performance
Provide decision support for executives and supervisors
Move emphasis to service levels and on-time delivery
Build common manufacturing operations architecture
Move from emphasis on local execution to global coordination
Manage
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Manufacturing Operations Center
Manufacturing Operations CenterManufacturing Operations Centeris a new solution built on a next generation Manufacturing Operations architecture, leveraging the ISA-95 reference model. The solution the divide between relatively stable world of business users relaying on ERP and back office applications and real-time exception prone world of the manufacturing users relying on variety of shop floor systems. Manufacturing Hub provides real-time visibility in to shop floor operations by connecting to disparate data sources available on the shop floor including MES, Quality, and Maintenance, LIMs, Historians as well as the automation and control layer. The solution is also designed to orchestrate data flow between ERP and back office applications and shop floor systems. Oracle Manufacturing Hub is the first solution in the industry that provides out of the box operational analytics with flexibility and configurability of a toolkit.
Enables
• Eliminate discrepancy between manual data and machine data
• Perform preventive maintenance based on machine “actuals” vs. “best guess”
• Achieve visibility for lean and six-sigma programs
• Progressively eliminate on-hold and other production issues
• Gain competitive edge by sharing quality information with customers
Benefits• Contextualize Plant Floor Data and
Synchronize with ERP• Provide Real-Time Intelligence for Plant
Operations• Leverage Next Generation Manufacturing
Operations Architecture
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API Interfaces
API InterfacesAPI InterfacesOracle® Process Manufacturing (OPM) has the unique functionality that process manufacturers need to run their businesses efficiently and effectively. However, sometimes integration with other application software may be desired to extend and complement Oracle Process Manufacturing’s capabilities, while still fully benefiting from its robust data model. To address these requirements, Oracle Process Manufacturing offers application programming interfaces (APIs) to enable easier integration legacy systems, in-house developed applications, and third party software.
Enables Benefits
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Standard Process Manufacturing APIsIntegrate Plant Devices and Legacy Systems
Production / POC• Start Resource Usage• End Resource Usage• Close Batch• Cancel Batch• Release, Certify, and Close Step• Post Resource Transaction• Incremental Resource
Transaction• Timed Resource Transaction
Recipe Development• Formula• Insert Ingredients, (By)Products• Formula Usage Rules• Resource• Routing• Operation• Activity
Costing• Item Cost • Resource Cost• Allocation Definition• Burden Details
Inventory• Create Item• Create Lot• Create Item/Lot UOM Conversion• Create, Adjust, or Move Inventory• Change Lot Status or QC Grade• Lot Split, Merge, Translate
Quality• Tests• Specifications• Samples • Sample Labels• Results
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Improve Accuracy Capture data instead of typing it in
• Device Integration• Provide standard integration points
• Weigh scales - Direct input during dispensing process• Process equipment - Capture readings, such as temp, pressure,
speed
• Mobile Support• Ingredient Issue• Return Ingredient• Return Product• Create Product Lot• Update Product Lot• Backflush• Update Resource• LPN Transactions
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API Interfaces
API InterfacesAPI InterfacesOracle® Process Manufacturing (OPM) has the unique functionality that process manufacturers need to run their businesses efficiently and effectively. However, sometimes integration with other application software may be desired to extend and complement Oracle Process Manufacturing’s capabilities, while still fully benefiting from its robust data model. To address these requirements, Oracle Process Manufacturing offers application programming interfaces (APIs) to enable easier integration legacy systems, in-house developed applications, and third party software.
Enables Benefits
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For More Information
http://search.oracle.com
Process Manufacturing
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Additional Resources
• Vivian Lewis – AGSS – SCM Solution [email protected]
Mobile 972-672-0254
• Andrew Hyers – AGSS – SCM Solution [email protected]
Mobile 502-836-1465
• David Ballin – AGSS – SCM Solution [email protected]
Mobile 201-218-3245
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Course Agenda
• Welcome & Introductions• Process Manufacturing Drivers, Concepts, &
Overview• Inventory for Process• Process Quality• Product Development• Product Execution with MES• Process Costing and DBI • Process functions in other SCM applications• Wrap up and Course Evaluation
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