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Copyright © 2006, Oracle. All rights reserved.

Release 12 Field Readiness Workshop

Flow Manufacturing

Valerie Dubois - Flow Mfg Product Strategy

Steve Morgan - Flow Mfg Product Manager

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Copyright © 2006, Oracle. All rights reserved.2

Purpose:

This document provides an overview of features and enhancements included in

Release 12. It is intended solely to help you assess the business benefits of upgrading

to Release 12.

Disclaimer:

This document in any form, software or printed matter, contains proprietary information

that is the exclusive property of Oracle. Your access to and use of this confidential

material is subject to the terms and conditions of your Oracle Software License and

Service Agreement, which has been executed and with which you agree to

comply. This document and information contained herein may not be disclosed,copied, reproduced or distributed to anyone outside Oracle without prior written consent

of Oracle. This document is not part of your license agreement nor can it be

incorporated into any contractual agreement with Oracle or its subsidiaries or

affiliates. This document is for informational purposes only and is intended solely to

assist you in planning for the implementation and upgrade of the product features

described. 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 in this document remains at the

sole discretion of Oracle. Due to the nature of the product architecture, it may not be

possible to safely include all features described in this document without risking

significant destabilization of the code.

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R12 Field Readiness Agenda

• Lean / Flow Primer

• Product Review – Business Needs

• Product Enhancement – details

• Wrap Up/Q&A

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Lean Primer

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<Insert Picture Here>

―Pure and simple, lean is reducing the timefrom customer order to manufacturing and

delivering products by eliminating non-value

added waste in the production stream. The

ideal of a lean system is a one-piece flow. Alean manufacturer is continuously Improving

in the direction of that ideal.‖

James Womack

Author, ―Lean Thinking"

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Oracle Discrete Manufacturing Solution

Integrated

IntelligenceCost

AnalysisProductivity

Planning

• Planned Orders

• Schedule Changes

• Component

Substitutes

• Resources

Substitutes

Product

Lifecycle Mgmt

Warehousing /

Transportation

Service

Asset

Maintenance

• Demand Schedules• Configured Order

• Quality Specifications

Lot / Serial Genealogy Tracking

Quality Management

Repetitive,

Project

Flow /

Lean

Standard

WIP Lot-Based

Mixed Mode Mfg Execution

• Production Status• Material Availability

• Mfg Capacity

• Schedules / Changes

• Ship Notices

• Invoices / Payments

Enterprise

Shop FloorCustomer

Partner

Collaboration

Contract Mfgrs

Real-Time

WIP Visibility

Contract MfgrsModel

ShopFloor

Suppliers

Suppliers

MES APIs,Direct

Access

ETO

ATO / CTO

MTS

Analyze AdjustSample

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Flow Manufacturing -- Definition

Benefits:

Lean processes that are sustainable and repeatable on a global scale

Speeds the introduction of new products to the Flow Mfg process

Supports continuous improvement in manufacturing processes

Integrated software that directly supports lean mfg / lean supply chain mgmt

• Lack of formalized, sustainablelean processes

• Lack of Lean Mfg integration

with core ERP data(e.g., cost accounting andorder management)

Demand-driven manufacturers in any industry

What Does it Do?

Who is it For?

What Problems Does it Solve?

• Framework to document flow mfg processes

• Simulates and calculates flow line design

• Designs material replenishment processes

• Sequences demand directly to production line

• Simulates daily demand for resource planning

• Provides line performance metrics

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How Do I Recognize a Customer Might Need

Flow?

If you hear any of the following, your should talk to your customer

about flow manufacturing:

• Relentless talk of eliminating waste, or ―Muda‖

• Aversion to lots of WIP moves, queues, etc

• Customer asks about TAKT time, Kanban, Value Stream Mapping,Linearity, Balanced Production

• Customer talks about ―Demand Flow Technology‖ or ―Toyota ProductionSystems‖

• Customer ask about level loading, Heijunka, or sequencing production

based on item, order or component attributes• Customer talks about synchronizing supply, or Just in Time (JIT) supply

• You meet or hear about a ―Sensei‖, ―Lean Evangelist‖ or ―LeanChampion‖

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Value Stream Analysis

Lean Planning

Lean Execution

Oracle Flow Manufacturing Solution

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Value Stream AnalysisBest o f B reed Funct ional ity that Dr ives Manufactur ing Flex ib i li ty and Eff ic iency

Cell Design andOperator Balancing

Eliminate non value-added work,regroup events into balancedoperations, add IPKs, add resources

Standard Machine andLabor Calculations

Calculate line & operation takt, andreq’d resources; highlight imbalances

Add standard events

Identify TQC and value-add events

Associate work instructions

Standard Work Definition

GraphicalLine Designer

Mixed Model MapWorkbench

Value Stream Mapping Define and associate standardprocesses with product families,items, or configurable models. Addalternate paths & rework loops

Mistake Proofing Review TQC events for mistakeproofing. Create quality collectionplans

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Lean Planning

Order Promising Constrained by the line rate and forecasted mix

Demand Leveling andSmoothing

Kanban Planning

Line Design TAKT time calculations, operator balancing, cell and

assembly line balancing, buffer analysis for configuredand standard products

Identifies primary and FIFO processes, identifiespacemaker processes

Pull chain design, loop and supermarket sizing

Supports both fixed quantity/variable interval and variable

quantity/fixed interval kanban systems

Product family or configurable model planning. Long rangeplans constrained to the designed line rate, short rangeschedules constrained and sequenced

System-wide Planning , Dif ferent iated w ith Inventory Op timizat ion

Collaborative Planning reduces lead time and waste, improvesagility, automates inventory replenishment for VMI andconsigned material

Inventory Optimization accounts for demand, supply, and lead-time variability when determining the point of postponementand inventory levels in the supply chain.

Demand Planning calculates product family and configurable

model planning percentages

Supply Chain Planning

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Generate a pick plan for low usage or large parts to ―pick‖components based on flow schedule sequence. Integratedwith WMS

Lean Execution

Synchronized Components

Kanban Execution Cards generated and printed

Single and dual card kanban. One time kanbans

Internal, production, supplier and inter-plant kanbans

Out of the box integration with Mobile Supply Chain Apps

Single step replenishment process

Uses standard PO business logic to source material and

communicate to supplier through iSupplier portal, fax, edi,XML or print

Status of supply visible on the card, and history is trackedthroughout the life of the card

Synchronize component pull by generating supplier andfeederline kanbans based on the final assembly sequence

Generate feeder line schedules directly from the parent lineassembly sequence

Pick Components

Flexib le Compo nent Replenishm ent Suppo rts a Wide Range of Bu siness Needs

…Full Support for Configured Products

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Sequence sales orders or planned orders using simplelevel loading sequence rules

Or create constraint based sequencing rules on any item,order, or component attribute

Re-sequence flow schedules created by kanban pull orfeeder line synchronization for a more optimal mix

Lean Execution

Production Sequencing

Enables a paperless factorySimplified user interface presents all pertinent informationand transactions to the shop floor worker

Dynamic work instructions that change as configurationsvary

In R12, assembly and component serial and lot numberscan be assigned at any operation and use that informationduring work orderless completion

Operator Work Station

Dashboards provide performance to schedule, inventoryreports, on time delivery and quality metrics

Linearity report and performance to schedule availablewithin the flow application

Reporting

Adv anced Sequencing and Simpl i f ied Execut ion

…Full Support for Configured Products

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Key Differentiators

Full Support for Configured Products

Best of Breed Value Steam Analysis Functionality that Drives

Manufacturing Flexibility and Efficiency

System-wide Lean Planning, Differentiated with Inventory Optimization

Advanced Sequencing & Simplified Execution

Flexible Component Replenishment Supports a Range of Business Needs

Part of a Complete Lean Enterprise Solution

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Flow is harder to implement then WIP, so customers should

defer it until after go live

• FALSE - If a customer is ALREADY operating in a lean environment, it isactually more expensive and time consuming to implement WIP first andthen transition to flow (biggest barrier is lack of knowledge by theimplementer – not the product itself)

• But also sometimes TRUE - If a customer has not yet physically adoptedthe lean principles on the shop floor, then it may be wise to implement adiscrete process first, so they are adopting one new process at once

Biggest Flow Manufacturing Myth

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Want to Know More?

http://apps.oraclecorp.com/products/manufacturing.html

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Flow Manufacturing

Functional Deep Dive

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Review Business Needs – Market Drivers

– Enhanced Flow Execution Workstation capabilities

Extends the concept of the paperless shop floor by allowing the operator

to record actual production information as it happens and improves

efficiency by directly embedding the completions and quality collection

transactions into the flow execution workstation.

– Fixed Component Usage supportSupports fixed component usage which allows the component quantity to

remain fixed regardless of the parent assembly quantity.

– Maintain Schedule number when rolling Flow Schedules

Ensures that any pre-printed documentation is still valid with the rolled

flow schedule.

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Flow Manufacturing – Delta Summary

Enhanced Flow Execution Workstation

capabilities

Record actual production details

Actual production details such as component usage , component

lot / serial information and flow schedule updates can now be

recorded at each operation step when the work is performed.

This information will be defaulted in at schedule completion time.

Flow Schedule Completion

The ability to complete a schedule directly within the Flow

Execution Workstation has been added. This can be done either

via an express completion which requires no additional input fromthe user or a normal completion where the assembly and

component information can be reviewed and/or updated prior to

completion.

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Enhanced Flow Execution WorkstationSetup

• Ability to define set up at three levels – Organization , Org / Line and Org /Line / Operation

• Options available are different depending on level selected.

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Enhanced Flow Execution WorkstationSetup – new options

Ability to view ‘All schedules’

Control backflush method

• View all schedules – provides ability to view all uncompleted schedules on all operations.

• Backflush option – determines whether all components are backflushed or only the components on the primary

routing.

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Enhanced Flow Execution WorkstationSetup – Org / Line

• Setup at the Org / Line level showing additional options

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Setup

• Action selection is fully configurable within the workstation setup.

• User can determine which actions are buttons are which actions appear in the drop down list.

• Page Regions , Tab Regions , Instructions and Actions are all fully configurable.

• Express Complete Schedule – allows fast schedule completion with minimal user input.

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Select schedule at

Line Op.

Assembly lot/serial

required ?

Yes

No


Process – Line operation flow

Record assembly

lot/serial

Component updates

required?

Component lot/serial

required

Mandatory line op .quality

Yes

No

Record component

usage

Yes

Yes

No

Record component

lot/serial

Yes

Record qualityinformation

No

Complete line op

for schedule

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Process – Record Actual Production

• Additional actions available are Scrap Assembly and Express Complete Schedule.

• Actions appear as buttons or in the action drop down list based on setup preferences.

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• Select the ‘Update Schedule’ action to review or modify the Flow Schedule header information

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•. Can update Flow schedule details at any time including entering lot and serial information.

• Calls Inventory functions to generate lot or serial numbers.

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•. The update components button is accessible from the event page.

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•. Ability to record component usage , add or delete components and record component lot or serial information at

each operations

• Ability to associate component serials to parent serials for serial genealogy tracking.

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•. Allows multiple lot and serial numbers to be entered for the Item.

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•. Assembly scrap information can be entered on this page including scrap amount, scrap reason and lot/ serial

information.

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Process – Flow Schedule completions

•. Express completions will attempt to complete the Flow schedule with all of the default settings.

• Normal completions allows for review and update of the Flow schedule header information including lot and

serials. Any information changed/added at prior operations will be defaulted here.

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Process – Flow Schedule completions

•. If component usage or lot / serial information has been recorded at a prior operation , then the list of backflush

components will reflect these changes.

• For each component that is lot or serial controlled, can drill down and enter multiple lot / serial numbers and link

those to parent lot / serial numbers for lot / serial genealogy.

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Process – Quality collection

•. In line quality collection can be done from the Line operation completion or Flow schedule completion

transactions. If the quality plan is mandatory, then quality information must be entered before completion can be

finalized.

Need quality screen capture

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Dependencies and Interactions

• Oracle Work in Process – WIP provides support for the new completion transactions. Also the eligible operations for which components and

resources will be charged are based on preference to include all operations or only actual/primary path

operations. This applies to both forms and mobile.

• Oracle Quality – Oracle quality provides the framework that allows viewing and entering the quality data related to flow operation

completion and flow schedule completion transactions. This module is integrated with flow execution workstation

to allow seam less collection of data.

• Oracle Inventory – Allows recording of lot and serial numbers for assembly and components. This module is integrated to allow data

recording while doing the work order less completion transaction.

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Summary

The Flow Execution workstation has been enhanced to :

• Allow recording of actual production details at the operation level.

• Provide in line quality for seamless collection of quality data.

• Incorporate Express and Normal completions directly into the

workbench.• Provide ability to view schedules on all workstations.

Benefits

• Extends the concept of the paperless shop floor by allowing theoperator to record actual production information as it happens

• Improves performance and efficiency by directly embedding the

completions and quality collection transactions into the flow

execution workstation so that all transactions can be executed

within the workstation.

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Fixed Component Usage Support

– As part of the R12 release, it is now possible to add lot based

components to the bill of material. A lot based component isone whose usage quantity is fixed irrespective of the build

quantity of the assembly item. – The following Flow Manufacturing functions are impacted :

— Feeder Line synchronization

— Outbound Broadcast Sequencing

— Kanban Planning

— Flow Execution workstation

— Flow Sequencing

.

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Fixed Component Usage SupportSetup – Bill of Materials

• Bill of Materials – new basis of lot to indicate fixed component usage.

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Fixed Component Usage SupportProcess

– Kanban Engine - The kanban engine explosion considers the item basis typeof the component when it calculates the component usage.

– Feeder Line Synchronization – The feeder line subassemblies requirement

calculations consider the item basis type. For basis type ‘lot’ , the subassembly

requirement is not affected by the flow schedule quantity. For basis type ‘Item’ ,

the subassembly requirement is calculated by multiplying the parent schedule

quantity with the component usage.

–Outbound roadcast Sequence - component basis type affects the calculation

of component requirement used in outbound broadcast sequence process. For

basis type ‘lot’ component requirement is not affected by flow schedule quantity.

For basis type ‘item’, component requirement is calculated by multiplying the

flow schedule quantity with the component usage. – Flow Execution Workstation -The workstation displays the item basis type in

the component details page.

– Flow Sequencing – The Item basis type determines the calculation of

component requirement for the ‘Component Availability’ constraint.

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Fixed Component Usage Support

Summary

•The following Flow Manufacturing processes have been

enhanced to include support for fixed component usage :

•Kanban Engine.

•Feeder Line Synchronization

•Outbound Broadcast Sequence•Flow Execution Workstation

•Flow Sequencing

BenefitsSupports fixed component usage which allows the

component quantity to remain fixed regardless of the

parent assembly quantity.

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Roll Flow Schedules

• Maintain flow schedule number when rolling flow

schedules

• Current schedule number is maintained when rolling the schedule

forward so that any labels or travelers that have been printed can

still be transacted against.

• The main business driver here is that since most customers print

their documentation out ahead of time, they want to retain the

existing Flow Schedule after it has been rolled so they don’t have

to reprint all their barcodes and travellers.

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Roll Flow SchedulesProcess

•When the flow schedule is rolled forward, the new schedule will now be created with the original schedule ID to ensure that

any existing documentation is still valid.

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Flow Implementation Considerations

• Steps to transition to a Flow /Lean environment :

– Implement a kanban pull system.

– Implement a Flow line.

– Streamline the order to Delivery process.

– Sequence and synchronize production.

• White papers available in class to provide more detail

around transitioning to Lean and how Oracle’s Flow Mfgcapabilities can enable this transition.

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Wrap Up/ Q&A

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Flow Manufacturing

Technical Deep Dive

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Technical Deep Dive Agenda

• Data Model Changes / Database Relationships

• Wrap Up/Q&A

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Data Model and Database Relationship Changes

New Tables

FLM_EXE_REQ_OPERATIONS

• This table has been added to hold component changes

record for flow execution workstation

FLM_EXE_LOT_NUMBERS

• This table has been added to hold lot number records forassembly and components for flow execution workstation

FLM_EXE_SERIAL_NUMBERS

• This table has been added to hold serial number records for

assembly and components for flow execution workstation

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Modified Tables

MRP_LOW_LEVEL_CODES

• Added two new columns- WIP_SUPPLY_TYPE (NUMBER)

AND BASIS_TYPE (NUMBER)

FLM_EXE_PREFERENCES

• Added two new columns - BACKFLUSH_OPTION(NUMBER) and VIEW_ALL_SCHEDULES (VARCHAR2)

FLM_EXE_PREF_ENTITIES

• Introduced two new entity types

• Entity Type = 7 for button action

• Entity type = 8 for choice list actions

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Flow Manufacturing


FLM: Enable Flow Sequencing

• This profile option is added to determine whether flow

sequencing is purchased and thus enabled.

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Flow Manufacturing

Changed Programs

Roll Flow Schedules

• Schedule number will be maintained when rolling the

schedules

Kanban Planning• Component Basis type will be considered while doing

component requirements calculations

Feeder Line Synchronization

• Component Basis type will be considered while calculating

quantity of subassemblies for which sync schedule should

be created.

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Flow Manufacturing

Changed Programs (contd.)

Outbound Sequencing

• Component Basis type will be considered while calculating

quantity of components for which Kanban cards should be

created.

Flow Sequencing

• Component Basis type will be considered while computing

component requirements for use in component availability

constraint.

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Wrap Up/ Q&A

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Thank You

Thank You

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