NORCAL OAUG Supply Chain Journeys of Pharmavite & ICU · PDF fileSupply Chain Journeys of....

Where Strategy Meets Execution

People

Process

Technology

NORCAL OAUG

Supply Chain Journeys of

Pharmavite & ICU Medical

People/Process/Technology

Pharmavite

Pharmavite business Manufacturer of vitamins and nutritional supplements Nature Made™ brand sold thru major mass retailers and drug store chains 1989, purchased by Japanese Otsuka Pharmaceutical Co. As of 1994, Nature Made products were the top-selling brand of vitamins in

the United States

Key Business Challenges Multiple MRPs, disconnected factory & material planning Increasing inventory and critical material shortages No capacity visibility into the planning process Sourcing and Make / buy simulation & execution problems No management visibility, reporting, dashboards

System Landscape JDE 8.12, PDP and MRP, Demantra 6.0

Original SCF Scope / Oracle footprint ASCP, Capacity Constraint based planning, DRP PIP was NOT in SCF Scope Added Legacy Collections Added Demantra Added APCC (future phase)


Pharmavite Supply Chain Landscape

Distribution Flow


Process, System, Organization alignment

Displays FG

Distribution

Components

Role Organization• Demand

Planners

Demand and Supply Planning (Central)

• Distribution Planning

• Master Planning

• Finite Scheduling• Shop Floor

Execution• Purchasing

Execution

Val A Packaging Facility (Local)

• Order Planning• Finite Scheduling• Shop Floor

Execution• Purchasing

Execution

San Fernando Manufacturing Facility (Local)

Bulk

Raw Materials

Forecast

Project entailed much more than a new system implementation but a fusion of: New Processes and policies Roles & responsibilities Organizational alignment New metrics


Strategic to Detailed Process Design


Strategic to Execution: Inventory & Time Fence Considerations for Supply Planning

Weeks -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8MWDC

Tibbitts

Pkg

Components

Bulk

Raw

Inventory

Schedule Execution

“Near Frozen” Schedule

Finalize and Release MPS

In MTS, production responds to target inventory levels and forecast

Schedule Execution – Bulk

“Near Frozen” Schedule – Bulk

Firm Planned – Bulk (only as needed)

Planned

Strategic inventory buffer to stabilize Packaging, Bulk Schedulesw/o this buffer, offset between FG and Bulk needs to increase to total lead-time , ~ 4 weeks including MEFD

Release WO’s

Frozen Time Fence

Firm Planned

Planned

Firm-planned Horizon / Natural Time Fence

Frozen Time Fence

Firm-planned Horizon / Natural Time Fence


Integration Architecture

PIP Architecture• Items• Purchase

Orders • Sales Orders

Legacy Collections• BOM’s• Routings• Resources• Alternates• Work Orders• Demantra Safety

Stock• Shipped Sales Orders• User defined data

elements• Manual Demand

inputs


Final Pharmavite ASCP Data Flow

JDE

ASCP

ODI

Demantra

OutboundUBE’s

InboundUBE’s

Fore

cast

FG S

afet

y S

tock

(Leg

acy

Col

lect

ions

)

Release Recommendations

(OT, W/O, PO)

JDE Data

LegacyCollections

Reporting Rpts

UserInput

Add’lData

Sourcing Item Attributes

Data PrepScripts

Additional Data Integrations

Manual Intl Demand

Item Conversion

Temporary Capacity Adj.


Key Capabilities

Single, global planning system Ability to peg supply and demand though all levels of BOM Production / Capacity Purchasing

Reduced material expedites and sourcing delays Safety Stock methodology and solution (Demantra & ASCP) Leveraged Simulations Sets for What-if / Simulations:

Model temporary capacity changes Sourcing decisions Demand changes


Key Capabilities

Capacity visibility

What sales orders this W/O is used on and what Bulk W/O feeds it

Resource Load Horizontal Plan View

Pegging for an Order


Excel Packaged ASCP Reporting

Management Metrics for Planner Exception Messages



Management Metrics for Planner Exception Messages

Impact of Exceptions in Dollars



The Horizontal Plan – Statement of reality

• Gross forecast• Excludes planned orders

• Shows firm supply based on current schedule date

• Calculates POH assuming ASCP recommendations are not followed



Aggregate Work Order Shortage Report (Clear to Build)

• Captures all WO demands and nets OH, PO’s and WO’s

Pharmavite Requests SCF to take over Demantra


Demantra Timeline

Jun 2012 July 2012May 2012Apr 2012Mar 2012Jan-Feb 2012

Configure Demantra inProduction Run in Parallel

Demantra Fixes & StabilizationTransitionTo SCF

• JDE Integrations• ASCP Integrations• Hyperion Integrations • Customizations / Performance optimizations• PTP• DM• S&OP


Key Challenges

Data challenges Promotions Customizations Automation of Nightly/weekly programs Performance

Worksheet Batch Programs

Training Business Super user IT Support


About ICU Medical

Designs and makes some of the world's safest, most reliable medical devices and systems for infusion therapy, oncology, and critical care applications.

Product Lines Include Custom I.V. Systems Closed Delivery Systems for Hazardous Drugs Needleless I.V. connectors Catheters and Cardiac Monitoring Systems


ICU Medical Landscape

Founded: 1984 Nasdaq: ICUI Founder & CEO: George A. Lopez, M.D Headquarters: San Clemente, California Employees: ~2200 employees and offices and MFG around the world Revenue: USD $302 Million Channels – Medical product manufacturers and independent medical supply

distributors, as well as directly to the end customers worldwide.

Existing Systems Footprint Oracle EBS 11.5.10 Decentralized

• VCP R12.1

OBIEE 11G

Hyperion 11.1.1


21

SlovakiaMfg

manufacturingdesign

Encenada, MexicoMfg

San Clemente, CAHQ, R&D, Sales

ICU Medical Landscape

Salt Lake CityMfg


Key Business Challenges

Lack of a forecasting process, collaboration and systems Data is manually gathered, unorganized and extremely time consuming No forecast metrics or analysis Time is spent gathering data, not for analysis & decision making

Changing business conditions Moving toward direct delivery to end customer, realigning relationship with distributors Acquisition of Critical Care business

Maintaining on-time delivery and inventory levels

Improving operational efficiency


Project Objectives

Overall: Establish a connected supply chain with leading practice forecasting, supply planning and visibility to scale and manage the evolving business and drive operational efficiency

Eliminate manual, disconnected activities which includes the elimination of excel driven processes

Build the sub-processes and systems to support S&OP

Create a cross-functional driven consensus forecast reducing the effort and cycle time

Consolidate the data & processes onto one platform - Demantra; minimize manual touches; replace Excel

Provide direct visibility to the customer forecasts within the consensus process Create comprehensive metrics to measure forecast performance Define roles and responsibilities, role clarity, approvals and security Generate forecast for Supply Planning

Establish a capacity constraint based planning processes throughout all manufacturing

Determine material and capacity requirement to fulfill unconstrained demand

Provide overall reporting / dashboards for visibility to evolve S&OP


Key Design Elements & Scope

Oracle VCP Footprint: Phase I: Demantra DM, S&OP, Advanced Supply Chain Planning with capacity constraints Phase II: APCC, Demantra / Hyperion Integration, Global Order Promising (GOP)

Leverage Demantra to establish an end-to-end, consolidated global forecast Leverage Capacity Constraint Based ASCP planning across all manufacturing facilities

UPS Distributions (ULO, URA)

UNL Distributions IT Distributions / MFG DE Distributions / MFG

EDA, Mexico(Mfg / Dist.)

Salt Lake City, UT(Mfg / Dist.)

Slovakia(Mfg)

Ships sub-assemblies Ships sub-assemblies

Fcst, Orders

Internal Demand

Customer Shipment


High Level Process

Demantra

Sales DP

Oracle EBS Data Inputs

Ops Planning

Sales Forecast

Global Demand

Plan

Several Key “Processes”• Weekly Split• Unitization

Budget Forecast

ASCP

S&OP Dashboards

Exec Team

APCC

Capacity Planning


Consolidated, Consensus Forecast

Key CustomersCustomers provide forecasts for 12 future months

Sales ForecastForecast for non key customers

Marketing ForecastNew product forecast

Ops Demand Forecast

Adds to or selects appropriate forecasts

Demantra is the source of all consolidated information improving the

Demand planning flow

Consolidation of this information improved and shortened the forecasting

cycle


Extensive Drill Down Capability for Analysis

After consolidation of the multiple forecast inputs, the ability to quickly review the critical planning levels are available

Traverse through time and family

Highlight exceptions and KPI’s

Improved planning & S&OP process


KPI & Exception Management

Exception reports

Metrics analysis with drill down


KPI & Exception Management

Forecast Consumption

(using open with)

Period to Period Analysis


From Forecast to Planning

Demantra

Sales DP


Capacity Planning

Ops Planning

Sales Forecast

Global Demand

Plan

Budget Forecast

ASCP

S&OP Dashboards

Exec Team

APCC

Several Key “Processes”• Weekly Split• Unitization


Constraint Based Capacity Planning

Single, Global Plan for all Mfg locations

Focus on key Capacity constraints (Bottlenecks) while still driving the plan toward customer due dates

Elimination of excel based capacity analysis and disconnects with planning

Navigate to specific Mfg facilities and identify resource

overloads


Drill Down to Make Capacity Adjustments

Horizontal Plan & graphical display of

available vs. required capacity

Drill down from the Horizontal Plan to make adjustments


From Planning to S&OP

Demantra

Sales DP


Ops Planning

Sales Forecast

Global Demand

Plan

Budget Forecast

ASCP

S&OP Dashboards

Exec Team

APCC

Capacity Planning


APCC (IN PROCESS)

Use APCC to drive S&OP Maturity

Specific focus on operational efficiency (Resource Visibility)


Training & Documentation

End User Documentation Leveraging UPK


Timeline


Something to Think About

Optimal Process

& System

The Process & System Evolution

Process

TechnologyData

People

Change Management Process change Executive Support

Resource availability Data, Data, Data….especially with

Capacity Planning APCC / OBIEE Versions

Don’t do it all at once - (Crawl, Walk, Run) Especially with ASCP Capacity Constraints Don’t underestimate the people, process and technology

complexities when moving to a capacity constraint based planning environment

Dollarizing the forecast (ASP – Gross/Net)

Where Strategy Meets Execution



Specialized consulting firm focused on leading edge supply chain processes & metrics Process experts with real-world industry experience and system “know-how” to

drive process and organizational change through successful implementations Through years of experience, developed a progressive methodology fusing people,

process and technology to accelerate implementations without compromising quality

Who We Are

What We Do

Advisory services to define, implement and optimize supply chain processes Enable supply chain processes through Oracle Value Chain solutions

Drive the right supply chain solutions with our clients by providing unparalleled professional services with consultants who have real industry and process experience and understand how systems can be properly leveraged to drive metrics and add the desired value, and change……..Where Strategy Meets Execution.

Our Mission

At a Glance


Supply Chain Process & Strategy Sales & Operations Planning Demand Forecast / Demand Management Fulfillment Planning, Production Scheduling

Processes Supply Chain Assessment and Strategic Road-

map Process Re-engineering / Standardization Supply Chain Metrics / Benchmarking Procurement Strategies / Supplier Score Card Supplier / CM or Customer Collaboration (CPFR) Product Lifecycle Management, Portfolio Mgt &

NPI Supplier Selection, Rationalization and Off-

shoring Manufacturing Outsourcing or Off-shoring

Assessments, Guidance and Road-Map, Project Management.

Business Consulting Services

High Tech / Semiconductor & Contract Manufacturing CPG / CEG Retail Life Sciences / Medical

Devices Industrial Mfg & Distribution

Industry Focus

SCF Supply Chain Services & Industry Focus


Functional & Technical

Demantra DM, AFDM, S&OP, Engine Tuning Demantra Predictive Trade Planning

(Promotions) Demantra Trade Promotion Optimization Rapid Planning Advanced Supply Chain Planning (ASCP) Collaborative Planning (VMI, CVMI, iSupplier) Inventory Optimization (IO) Global Order Promising (GOP) Spare Parts Planning Strategic Network Optimization (SNO) Production Scheduling Manufacturing Operations Center (MOC) Advanced Planning Command Center (APCC)

Software Consulting Services

Solution Architect / Strategic Systems Road-Map Solution and Process Mapping to

the Required Value Chain Modules Solution and Process Map to

Required EBS Mfg and Distribution Modules CRM Integration Solution / System / Process

Optimization (Make the most out of what you currently have)

Related Service Offerings

Oracle Value Chain Planning Implementation Services


Gartner acknowledged Demantra leader in Best Practice Processes, Technology,

Change Management and Service Delivery

One of the first of only a few companies world-wide to

achieve the elite “Demantra Specialization” status

Gartner & Oracle Acknowledged Leaders


Our Key Differentiators

Award Winning Reference-able Implementations (Process & Technology) Pioneer of the Year Award (Demantra & Collaborative Planning) High Technology Industry Excellence Award (Process re-engineering, S&OP, Forecasting) Finalist for Aberdeen Group “Supply Chain Process Excellence Award” Solution featured in “Logistics Viewpoints” article by the ARC Advisory Group. Solutions presented at the Open World conference 2006-to-present:

Four clients presented at 2011 Open World conference. Solutions / Clients have presented at OAUG and CES (Consumer Electronics Show) Experience integrating CRM On Demand, Siebel & Salesforce.com with Demantra Successful JDE to VCP integration

Accelerators - Proven design templates, industry best practice process templates, and training tools & content all wrapped into a methodology that allows rapid design- to-implementation without compromising on quality

Strategic “Value Chain” partner for Oracle “Well Oiled Machine” - Due to the extensive experience our consulting team has working

together, we bring an immediate Synergy, Chemistry and Cohesiveness to the project team

Passion & Focus - This is what we do, This is all we do……ask our clients!

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What Separates SCF: Value Chain MappingBig Picture Experience; Ability to Pull It All Together & Drive Focused Results

How to Map the Value Chain Components To The Overall S&OP Process and

Supporting Sub-Processes

• Incrementally / Phased• Holistically • Based on Business Drivers• Business Priorities, Etc..

Ability To Put It All Together!

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