Change Order Process

8/14/2019 Change Order Process

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Collaborative Engineering

Change Order Process

By

Himanshu Jain Neopoint Consulting

Tony Miller Metro


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Metro Overview

Metro Integrated Environment

Standard ECO Process

Metro ECO Requirements

Collaborative ECO Process

How we did it

Lessons Learned

Agenda


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St. Louis Metropolitan areas public transit operator

42.5 miles Light rail system

467 Buses

65 LRV

120 Para-transit vans

6 Garage/Maintenance facilities

Metro spends $96 million annually to operate and maintain

Metro Material Organization Structure

Metro Overview

CENTRAL Metro Link

Brentwood Debalivere Illinois Saint Clair


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Oracle 11.5.9 Public Sector

Financials, INV, WIP, BOM, OM, MSCA, CST, ENG, PO etc.

Operational Environment

Maintenance Operations Group

Materials Management

Integrated with Maximus Fleet-focus M5

Collaboration between Operations and Materials Close to real time integration

Validated material issues

Job costing in M5 based on material issued

Complete visibility of inventory on hand and transactions

Controlled change process for any BOM changes

Complete tracking and visibility of outside processing

Integrated planning and scheduling

Metro Integrated Environment


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Oracle Integration with M5

Vehicle in forMaintenance

Work OrderCreated in M 5

Work Order

Interfaced as

Discrete Job

Material Issued tothe Job

MaterialAvailable ?

Procure materialon Urgent basis or

Hold the Job

Y e s

N o

Cost

Transactions

Interface Issuetransaction to M 5

Apply Material

Issues to WorkOrder

Accumulate JobCost

E n d

M5VehicleMaintenance

System

(Operations)

OracleApplictions

(MaterialsG

roup)


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Problems with ECO Process

Initiated on verbal communication from Operations

No record in system of suggested changes

Miscommunication Lead to wrong BOM & downstream effects

Obsolete Inventory after changes

POs not corrected appropriately

At times lead to reactive process

Waited for the material request from Operations

Ordered material

On receipt of material changed the BOM


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Standard ECO Life Cycle

ECO process uses two Statuses

ECO Status

ECO Approval Status

Standard ECO Life Cycle

Sequence ECO Status Approved Status

Start creating new ECO Hold Not Submitted for Approval

Complete data entry Open Not Submitted for Approval

Submit approval process N/A Approval Required

Oracle W orkflow controlsapproval process

N/A Approval Required

Approve and release Released Approved

Production updates date Scheduled N/A

Effective date arrives Implemented N/A


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Standard ECO Approvals

ECO Approval using workflow: In this approval process, the ECO type incombination with ECO priority is linked to an Oracle workflow process. Once the

ECO is submitted for approval the workflow takes over and controls the process till

approval is granted. Once that happens workflow automatically updates the status.

ECO Approval using approval list: In this approval process, a simple approval list

is used and submission for approval an Oracle alert is send out to all the members of

the list. Once appropriate members approve the ECO, the status of the ECO is

changed manually.

No Formal Approval: In this case no formal approval is required and status is set toapproved


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Standard ECO Approval Workflow


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Metro ECO Requirements

Multi level approval process

Approval across departments

Allow collaboration and communication between operations and

material group Track and record all BOM changes

FYI notifications to managers and planners

Notification to creator on approval

Controlled Implementation of changes


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ECO Approval Workflow


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How we Did It?

Customized ECO Approval Workflow Passed Approval Hierarchy to custom workflow

Defined ECO priorities

Linked Priorities with ECO Type

Associated Custom workflow to ECO Type and Priority

Created Approval Hierarchy Defined First Approval List

Superintendents of maintenance

Defined Second Approval List VP of Maintenance

Director of product development

Defined For Information Only List Superintendent of maintenance

VP of maintenance

Forecast and production scheduler

Manager production and inventory control

Defined Approval Hierarchy in Manufacturing Lookups


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Metro ECO Approval Workflow


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Define ECO Priorities


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Define ECO Change Type


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Linking Workflow to ECO Type and Priority


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Define First Approval List


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Define Second Approval List


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Define ECO For Information OnlyList


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Approval Hierarchy in Manufacturing Lookup


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Profile Options

Profile Settings for Changing Bills Only With ECOs

To limit users access to bills of material only through ECOs, set the

following Bills of Material profile options to No:

BOM: Standard Item Access

BOM: Planning Item Access

BOM: Model Item Access

And the following Engineering profile options to Yes:

ENG: Standard Item Change Order Access

ENG: Planning Item Change Order Access

ENG: Model Item Change Order Access

ENG: Engineering Item Change Order Access.

Profile Settings for Changing Bills With or Without ECOs

With the same seven profile options listed above all set to Yes, bills can

be changed with or without ECOs.


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Benefits of Collaborative ECO process

Intangible Benefits

Better planning and Forecast is possible

MRP is used to drive requirements

Reduced material handling and warehouse management cost Operations can plan better with communication changes

Operations validates and confirms changes

No stock-outs because of better communication

No loss of time waiting for material

Shared responsibility of the change as everything is tracked andmaintained in the system

Allows to collaborate with Operations to ensure all in stock material isused before change is implemented


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Benefits of Collaborative ECO process

Tangible Benefits

Reduced Obsolete material from $300,000 to $40,000 on an annual basis.

Reduced inventorying of material by 25% because of better coordination.

Before ECO only 11% of material was on Kits, After ECO almost 80%of it is on Kits

Improved material availability to 99%


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Approvers did not log in to Oracle to approve on a regular basis.

Changed to use of email notification

Effective use ofWhere used parts list as part of the verificationprocess.

Coordination between purchasing and product forecasters

Setting up alerts to facilitate this process

Changes to approval hierarchy as organization structure changes.

Simple configuration changes to Approval list and Approval hierarchyenabled this easily

Lessons Learned


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AQ&Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S


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Thank You

Himanshu Jain [email protected]

Tony Miller [email protected]

Change Order Process

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