Oracle Value Chain Planning - DOAG

Henrik SobolewskiPROMATIS AG, SwitzerlandHamburg, 20. Juni 2017

Oracle Value Chain Planning

Integration globaler Supply Chain-Prozesse in heterogenen ERP-Landschaften

© 2017 PROMATIS AG2

Generic Considerations for SCM in multi ERP Environments

The Value Chain Planning (VCP) Suite of Product

Summary VCP Issues to overcome

Customer Sample: Pre-Requisites

Customer Sample: Selected Approach

Customer Sample: Issue to consider in the Implementation

Summary & Questions

Agenda

June 20, 2017


Generic Constraints to consider for SCM integrationNon integrated ERP, multiple regions and ERP to cover

June 20, 2017

Area Problem to consider

Target Area Regional Planning, global planning, both?

Status of the involved ERP systemsMaturity of the involved systems, status of ongoing projects, can the ERP combine properly with the VCP-Suite?

Value Chain Modules required Selection of modules from (Oracle`s) VCP-Suite

Do the ERP systems follow a common approach (MDM)

Master Data, routing, formulas, does it fit into planning model, does everybody follow the same approach?

Planning Approach Unconstrained Planning, constrained, which design?


The VCP Suite of productsOverview

June 20, 2017

Product range selection based on requirement and approach

Implementation must review:- the detail level- the network to consider (subset, wholesupply network)

- specific requirements e.g.tolling, production or markets

Review of short to long range planning

Structure to cover (MRP, distributionbetween sites in the supply chainnetwork, DRP)

Time

Pla

nn

ing

level

(Deta

il t

o S

um

mary

) Demand Planning / Demantra

Advanced Supply Chain Planning (ASCP)

Inventory Optimization

Minutes Hours/Days Weeks/Months Quarters Years

Order Promising

Supply Chain Intelligence (APCC)

Collaborative Planning

Production

Scheduling (PS)

Rapid Planning


The VCP Suite of productsCore Products to review

June 20, 2017

ASCP as the core backbone module tointegrate different ERP (multi-user, multiplesites)

Production Scheduling (single site usage,typically production site)

Supply Chain Intelligence (APCC), BusinessIntelligence tool to cover handling, analysisand evaluation of plan results

Other tools to cover specific requirements

Time

Pla

nn

ing

level

(Deta

il t

o S

um

mary

) Demand Planning / Demantra

Advanced Supply Chain Planning (ASCP)

Inventory Optimization

Minutes Hours/Days Weeks/Months Quarters Years

Order Promising

Supply Chain Intelligence (APCC)

Collaborative Planning

Production

Scheduling (PS)

Rapid Planning


The VCP Suite of productsCore Products, ASCP Key Questions

June 20, 2017

ASCP Key Questions:

Long or short term planning?

Constrained or unconstrained?

Multiple plans to cover specificneeds or single plan eg. globaldistribution plan and regional level ASCP plans?

Common model across all sites?

ASCP

Long range

network

planning

Demantra

Demand planning

ER

P1

AP

CC

Fore

cast

VC

P D

ata

Colle

ction

Pro

du

ctio

n S

ch

ed

ulin

g

Sh

ort

ra

ng

e s

ch

ed

ulin

g

Oracle VCP 12.2.5

ER

P2

ER

P X

Excel

Excel

Excel

MD

M

Master data

Transactional

data

New work orders

New purchase orders

Work orders

Work orders -

rescheduled


The VCP Suite of productsCore Products, ASCP Key Questions

ASCP is used to plan the whole supply chain network or a subset of the network.

Short to long range production planning including Rough Cut Capacity Planning (RCCP).

ASCP can be configured at varying levels depending on the business need and implementation strategy like:

Distribution between sites in the supply chain network (DRP)

Materials planning (MRP).

Typical users are various planners in various sites

ERP1 ERP2 ExcelExcel

June 20, 2017


The VCP Suite of productsCore Products, Advanced Planning Command Center (APCC)

June 20, 2017

APCC is a VCP content-rich Business Intelligence (BI) tool.It is used for:

Interface to do day to day planning activities for different types of users

Reporting tool

Ad-hoc analysis tool

KPIs tool

APCC has the main features

Pre-built VCP content worldof dimensions and measureswith pre-built aggregation of information

Modern, appealing user interface

Flexible, can be changed to support changing needs.

History of planning for trend analysis

ASCP

Long range

network

planning

Demantra

Demand planning

ER

P1

AP

CC

Fore

cast

VC

P D

ata

Colle

ction

Pro

du

ctio

n S

ch

ed

ulin

g

Sh

ort

ra

ng

e s

ch

ed

ulin

g

Oracle VCP 12.2.5

ER

P2

ER

P X

Excel

Excel

Exce

l

MD

M

Master data

Transactional

data

New work orders

New purchase orders

Work orders

Work orders -

rescheduled

ER

P2

ER

P X

Excel

Excel

Excel


The VCP Suite of productsCore Products, APCC Samples

Provide a consolidated view of all planning-related data.

Enable a holistic view of the planning problem.

Not just demand-focused or supply-focused.

Enable an analytical platform to compare all key metrics together such as financial, sales, manufacturing, etc..

Enable a unified user interface that provides the ability to drill into individual applications for detailed analysis.

Bring together all stakeholders, which enablesfast reconciliation of conflicting businesspriorities.

June 20, 2017


The VCP Suite of productsCore Products, APCC, Samples II

June 20, 2017


The VCP Suite of productsCore Products, User Interface Comparison ASCP versus ACCP

June 20, 2017

Traditional ASCP Workbench

New Supply Planning Work Area

APCC

Content richness ++ - +

Drill-to options ++ + +

Level of detail ++ ++ -

Aggregate information - + ++

Usability – look and feel/, #clicks - ++ ++

Graphical presentations - - ++

Security ++ - ++

Trend analysis (keeps history) - - ++


The VCP Suite of productsCore Products, Production Scheduling (PS)

June 20, 2017

Options for integrated ASCP/PS

Based on ASCP collected data(no ASCP Plan)

Collected ERP data performschedule for work orders only

No forecast consumption

PS is only a short term shopfloor scheduling application

Based on ASCP planned datawith plan reference

Schedule for work orders andplanned orders

Firm planned orders flowback flow back to ASCP forMaterial Planning

ASCP

Long range

network

planning

Demantra

Demand Planning

ER

P1

AP

CC

Fore

cast

VC

P D

ata

Colle

ction

Pro

du

ctio

n S

ch

ed

ulin

g

Sh

ort

ra

ng

e s

ch

ed

ulin

g

Oracle VCP 12.2.5

ER

P2

ER

P X

Excel

Excel

Excel

MD

M

Master data

Transactional

data

New work orders

New purchase orders

Work orders

Work orders -

rescheduled



Why Production Scheduling and not ASCP?

ASCP:

Constraint-based ASCP plan would do scheduling and enable Gantt chart in the workbench

Not possible to make the changes on the fly

Difficult to perform “What-if” analysis

Rudimentary - not an option for companies with extensive scheduling requirements

PS:

Flexible, intuitive and easy to use

Advanced analytical views

Embedded KPIs to determine the best schedule

Alerts with root cause, Fast and easy simulation

June 20, 2017



ASCP Production Scheduling

Create New Supply Orders Schedule the supply orders that have already been created

Create a supply chain plan for a network of plants, warehouses, suppliers and customers in the supply chain

Create a production schedule for a single manufacturing facility

Plan a mid to long term horizon e.g. 6 months to 1 year

Schedule the short term horizon e.g. 2 - 8 weeks

Model aggregate level production constraints Model very detailed production constraints

Make decision on procurement - Create new purchase orders

Consider existing purchase orders as a source of supply. No new purchasing decisions taken

June 20, 2017


The VCP Suite of productsCore Products, ASCP/PS Integration Sample

Run the ASCP plan.

No new orders in PTF in ASCP

Existing work orders treated as firm.

Release new orders from ASCP plan.

Run Production Scheduling.Extracts the latest data from ERP/ASCP

Work orders within the planning timefence. Not firm in PS unless firmed

New work orders released/ASCP

Planned orders from ASCP that exist within the scheduling horizonspecified for PS schedule

Run various scenarios in Production Scheduling, approve and schedule/reschedule to ERP systems

Work Orders (re-schedules)

New Work Orders1.Work Orders

Release Time Window

Scheduling Horizon

Planning Time Fence

Planning Horizon

Firm Orders 2.Release Orders

3.Planned OrdersERP

ASCP

Production Scheduling

June 20, 2017


The VCP Suite of productsCore Products, PS Views, Sample Resource-Utilization Gantt

June 20, 2017

Combined view of resource utilization tosee scheduling of operations and resourceutilization

Display various buckets and switchbetween different bucket types


The VCP Suite of productsCore Products, PS Views, Scenario Comparison View

June 20, 2017

PS provides a powerful ability to directly and easily compare different schedule scenarios.

Within one session, the planner can make an un-limited number of scenarios and compare them using the Key Performance Indicators view.


Summary VCP Issues if multiple ERP‘s are targetedIssues to Review

ERP or VCP setup

Region specific differences

to consider

• Various functionality may be maintained either in ERP or in VCP

• Samples: Sourcing rules, lead time setup (ASCP / ERP), sequence dependency

• Sample: region specific UOM (Pound / LB / KG / L) existing in parallel as base UOM,

ASCP cannot handle out of the box such cases

Maintenance of Setup

where in VCP (and Oracle

ERP’s involved)

• VCP is not consistent in the functionality (e.g. hard constraints, sequence dependency

for production operations, bottleneck resource groups, scheduling on primary resource

or primary / secondary resource)

June 20, 2017


Customer SamplePre-Requisites, Base Situation

Chemical Industry

Process Manufacturing in some plants (recipe, routing, formula), while in others routing and bill of material implemented

Heterogeneous ERP environments, no common Master Data Maintenance established

Ongoing ERP implementation in one global region while strategic decision for Oracle’s VCP taken in parallel (core: APCC, PS, ASCP, Demantra)

Requirement for Tank Management

Strong Toller business (outside processing over multiple regional chains), mostly for packaging

Strong Make to Forecast model for markets by mostly regional production plants

June 20, 2017


Customer SamplePre-Requisites, ASCP/PS Approach

NALATAM EMEA ANZ

Mark

ets

Pla

nts

Plant LAUS North

South

France

CH

UK

NZ Plant

CLMX..

ARBR

US

CA

FRUK

DE..ES

IT

AU NZ

Australia

Level 1 – One global ASCP distribution plan for key top products

Level 2 – Regional level ASCP plans (combined market and production plan)

Level 3 – Plant level production scheduling for selective sites

June 20, 2017


Customer SampleImplementation Guiding Principles

Start simple and grow the complexity after establishing the foundation, based on maturity and business need. Data, processes, people & system all need to work successfully.

Implement a simple common ASCP model first (no constraints, basic features).

Keep complexities to scheduling. Scheduling will be implemented after successful use of ASCP (tollgate approach), based on complexity of the site and the expected benefit.

Keep variance between plans in ASCP to a minimum to support quick deployment, knowledge sharing and sustainable support effort.

June 20, 2017


Customer SampleChallenges and Solution Approach

Planning and ConsumptionFormulas

Problem:

routing, recipe, formula (BOM, routing) in most involved ERP systems not following the planning logic (not multi-level recipe stages), most formulas are used in

most cases only to build the consumption logic

Solution:

Align formula intermediates with planning logic for getting proper planning results

Maintenance of Data

Problem:

Multiple ways to maintain master data (sourcing, constraints, sequence dependency).

Solution:

Maintain data wherever possible directly in ERP, provide global template approach, rollout the solution to the different regions, in case of limitations in ERP use

the PS/ASCP module

Tank Management

Problem:

VCP (ASCP, PS) does not support tank management (resource/storage at the same time, tank capacity/tank selection)

Solution:

Set up of constraints for visibility, hard links between operations, repetitive throughput per hour, max inventory level per item and further

Limitations in VCP for UOM Issue

Problem:

ASCP can only handle one common base uom at a time

Solution:

Customization

June 20, 2017

PROMATIS AGThurgauer Str. 408050 Zurich

Tel. +41 44 214 63 00Fax +41 44 214 62 99

Email:Web: www.promatis.ch

© 2017 PROMATIS AG23 June 20, 2017

Contact

[email protected]

Henrik SobolewskiPrincipal Consultant und Projektleiter

http://www.promatis.ch/

Oracle Value Chain Planning - DOAG

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