Practical Approach to Providing Capable to Promise
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1 Practical Approach to Providing Capable to Promise Order Promising Lite Session ID#: August 9, 2016 Prepared by: Craig E. Hill EVP, Delivery C&A Technology
2 Agenda People & Companies Involved Solution Overview what s lite about it? Shortage and Capacity Refresh Order Promising Engine OP Engine Output Order Promising Exceptions Workbench Results
3 People Involved ASSA ABLOY largest global supplier of door opening solutions (almost $8B in revenue) Nina Williams Master Planner EMS & OEM Haresh Khilnani Manager, Enterprise Applications, JDE Systems Architect, the Americas Eric Bergeret Manager of Customer Service EMS & OEM Nick Schultes Business Unit Manager for EMS/OEM group C&A Technology Oracle Gold Partner JDE specialists Brad Darr JDE Distribution/SCM Consultant Craig Hill EVP of Delivery
4 Why are Accurate Promise Dates Required? Effective order promising can save the sale when a fixed lead time promise date would have been too conservative or when current stock is limited, but more is on its way. Unrealistic promise dates Just as importantly, it can prevent unrealistic promise dates that lead to late deliveries Part of Oracle VCP family of products Industrial strength solution Industrial strength budget We developed a practical approach: Order Promising Lite Considers supply, lead times and capacity Works well if BOM is no more than 3 to 5 levels deep Save the sale Oracle Global Order Promising
5 So What s Practical About OP Lite? At OE Time, Promise Date simply calculated by adding: Manufacturing Lead Time to Current Date Then Promise Date checked in enhanced order release UBE, if not in stock Checks purchased component availability Checks manufacturing capacity Moves promise date out, if required Sends an acknowledgement if promise date isn t past user defined threshold (ASSA ABLOY chose 7 days) Otherwise puts order line in status for review UBE=batch job (universal batch engine)
6 6 Solution Overview: Order Promising Lite Comprises of 2 program streams: Shortage and Capacity Refresh A JDE batch program, which executes hourly via scheduler, and refreshes Shortage and Capacity tables Order Promising Engine A subsystem JDE batch program, which calculates the Promised Delivery Date for Sales Order lines. In case of exception scenarios, it writes to an Exception table
7 7 OP Engine Output Details The OP Engine calculation has the following output scenarios: PDD=Promised Delivery Date Scenario Promised Delivery Date SO Line Status OE Header Status Exception Table 1. PDD for all SO Lines on an Order found within next 7 business days, and no more than 2 distinct PDDs were calculated Updated 528 -> 530 (All SO lines) Scheduling Complete Released to Factory None 2. PDD for all SO Lines on an Order found within next 7 business days, but more than 2 distinct PDDs were calculated Updated 528 -> 530 (All SO lines) Schedule Manual Review Exception message: More than 2 PDDs calculated 3. PDD for some / all SO Lines on an Order not found within next 7 business days Updated only for those SO lines which did not have exception 528 -> 530 (SO Lines without Exception ) 528 -> 529 (SO Lines with Exception ) Schedule Manual Review Exception messages: All SO Lines could not be scheduled in next 7 days
8 8 Solution Detail Shortage and Capacity Refresh Invoked frequently during business hours Includes Sales Orders meeting the following criteria: Supply Demand Inclusion criteria for OP Lite Refresh, and Where Sales Order line has Request Date <= Today + 7 business days. For example, only the sales orders which have gone through OP engine (status 530) and not yet manufactured / picked (status less than 545) will be included in Inclusion rules for OP refresh. Explodes the BOM (using Net Quantity of Parent SO Items) to generate Component demand. Aggregates this component Demand by Item.
9 Solution Detail Shortage and Capacity Refresh Generates data in 2 tables F55OPSHT (Shortage Table) Contains purchased component availability In addition to standard JDE availability: Net Availability (which includes demand from parent SO items not fulfilled from stock) Next Purchase Receipt date (based on F4311 / F43121) Net Available Negative Date (date within next 7 business days, if and when Net Available goes negative) F3311 (Capacity Utilization Table) Contains work-center and date-wise capacity utilization (Hours Used vs. Available) Enhanced to also generate based on unavailable Sales Order items that need to be manufactured 9
10 Component Shortage and Capacity Refresh Calculation Features Aggregates the total demand by SO Item Reduces from aggregate demand by SO Item (On Hand - On Hold - Safety Stock) Gives the Net Demand that is not available in stock and needs to be manufactured 10
11 Component Shortage and Capacity Refresh Calculation Features Calculates: On Hand, Available, On PO Receipt, On WO Soft and On WO Hard On SO Quantity (Aggregated component demand from BOM explosion) Shortage Flag : If Available - On SO is < 0, mark as Shortage component item Next PO Receipt Date : Comes from F4311, or if no PO exists, a dummy date far off in future Generates capacity messages and load profile based on Work Orders 11
12 Solution Detail Order Promising Engine UBE invoked when the lines are released Include Sales Order lines: Meets Supply Demand Inclusion criteria for OP Refresh Where line has Request Date <= Today + 7 business days (user defined) Order is not on Hold Order is not excluded from OP engine via manual flag at SO Header level Use data in F55OPSHT (Shortage) and F3311 (Capacity) to calculate promised delivery dates Also: Updates Sales Order Line Statuses Updates Sales Order Header Status Writes to OP Exception table 12
13 Order Promising Engine Features Check component availability Explodes the BOM to purchased component level Check each purchased component against F55OPSHT, to check if component is marked as Short. If not marked Short, it will not update any dates and move to capacity check If component is marked Short, it will set the availability date based on Next Purchase Request Date (or if outside 7 business days, it will generate exception)
14 Order Promising Engine Features Check capacity Explode the work center usage hours for SO item For each work center, check the available capacity vs required capacity If capacity not available at any work center, move PDD to next business day and perform capacity check again. Repeat till capacity found at all workcenters for a given day. If PDD day is outside 7 days, write to exception table After OP engine completes processing all lines on Order, if more than 2 distinct PDDs are generated for SO lines, then write to exception table PDD=Promised Delivery Date
15 Order Promising Exceptions Workbench Promise Dates Out Too Far Output is by status If lines are good we move lines to 530 In waiting Acknowledgment Status If they are bad or shortage or capacity is not available, we move to 529 OPE order promising exception status User can set any date they want or run through order promising again.
16 Results We were losing sales before, because we couldn t give accurate promise dates that could be relied upon. We d miss dates, or we d lose a sale because the standard lead times were too long. Now customer satisfaction metrics are up. Sales are up. - Nina Williams Master Planner EMS & OEM Group, ASSA ABLOY Americas
17 Questions
18 18 Wrap and Next Steps Contact Craig Hill EVP of Professional Services Delivery Phone: (317) Aubrey Evens - EVP of Business Development Phone: (914) aubrey.evens@catechnology.com Come Visit us at booth #222!
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