Oracle Value Chain Planning
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1 Oracle Value Chain Planning Integration globaler Supply Chain- Prozesse in heterogenen ERP- Landschaften Henrik Sobolewski PROMATIS AG, Switzerland Hamburg, 20. Juni 2017
2 Agenda 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 2
3 Generic Constraints to consider for SCM integration Non integrated ERP, multiple regions and ERP to cover Area Problem to consider Target Area Regional Planning, global planning, both? Status of the involved ERP systems Maturity of the involved systems, status of ongoing projects, can the ERP combine properly with the VCP- Suite? Value Chain Modules required Do the ERP systems follow a common approach (MDM) Planning Approach Selection of modules from (Oracle`s) VCP-Suite Master Data, routing, formulas, does it fit into planning model, does everybody follow the same approach? Unconstrained Planning, constrained, which design? 3
4 The VCP Suite of products Overview Planning level (Detail to Summary) Product range selection based on requirement and approach Supply Chain Intelligence (APCC) Implementation must review: - the detail level - the network to consider (subset, whole supply network) - specific requirements e.g. tolling, production or markets Rapid Planning Demand Planning / Demantra Inventory Optimization Advanced Supply Chain Planning (ASCP) Review of short to long range planning Structure to cover (MRP, distribution between sites in the supply chain network, DRP) Production Scheduling (PS) Order Promising Collaborative Planning Minutes Hours/Days Weeks/Months Quarters Years Time 4
5 The VCP Suite of products Core Products to review Planning level (Detail to Summary) ASCP as the core backbone module to integrate different ERP (multi-user, multiple sites) Production Scheduling (single site usage, typically production site) Supply Chain Intelligence (APCC), Business Intelligence tool to cover handling, analysis and evaluation of plan results Other tools to cover specific requirements Rapid Planning Production Scheduling (PS) Order Promising Supply Chain Intelligence (APCC) Demand Planning / Demantra Inventory Optimization Advanced Supply Chain Planning (ASCP) Collaborative Planning Minutes Hours/Days Weeks/Months Quarters Years Time 5
6 ERP1 VCP Data Collection Production Scheduling Short range scheduling APCC Forecast The VCP Suite of products Core Products, ASCP Key Questions MDM Excel Excel ASCP Key Questions: Oracle VCP Long or short term planning? Constrained or unconstrained? Multiple plans to cover specific needs or single plan eg. global distribution plan and regional level ASCP plans? Common model across all sites? ERP2 ERP X Excel Master data Transactional data Work orders Work orders - rescheduled Demantra Demand planning ASCP Long range network planning New work orders New purchase orders 6
7 The VCP Suite of products Core 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 Excel Excel 7
8 ERP1 VCP Data Collection Production Scheduling Short range scheduling APCC MDM Forecast Excel Excel The VCP Suite of products Core Products, Advanced Planning Command Center (APCC) 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 world of dimensions and measures with pre-built aggregation of information Modern, appealing user interface Flexible, can be changed to support changing needs. ERP2 ERP X Excel Master data Transactional data Work orders Work orders - rescheduled Oracle VCP Demantra Demand planning ASCP Long range network planning History of planning for trend analysis New work orders New purchase orders 8
9 The VCP Suite of products Core Products, APCC Samples Provide a consolidated view of all planningrelated 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 enables fast reconciliation of conflicting business priorities. 9
10 The VCP Suite of products Core Products, APCC, Samples II 10
11 The VCP Suite of products Core Products, User Interface Comparison ASCP versus ACCP 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)
12 ERP1 VCP Data Collection Production Scheduling Short range scheduling APCC Forecast The VCP Suite of products Core Products, Production Scheduling (PS) MDM Excel Excel Options for integrated ASCP/PS Oracle VCP Based on ASCP collected data (no ASCP Plan) Collected ERP data perform schedule for work orders only No forecast consumption PS is only a short term shop floor scheduling application Based on ASCP planned data with plan reference Schedule for work orders and planned orders Firm planned orders flow back flow back to ASCP for Material Planning ERP2 ERP X Excel Master data Transactional data Work orders Work orders - rescheduled New work orders New purchase orders Demantra Demand Planning ASCP Long range network planning 12
13 The VCP Suite of products Core Products, Production Scheduling (PS) 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 13
14 The VCP Suite of products Core Products, Production Scheduling (PS) 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 14
15 The VCP Suite of products Core 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. 1.Work Orders Production Scheduling Work Orders (re-schedules) New Work Orders ERP 3.Planned Orders Run Production Scheduling. Extracts the latest data from ERP/ASCP Work orders within the planning time fence. Not firm in PS unless firmed New work orders released/ascp Planned orders from ASCP that exist within the scheduling horizon specified for PS schedule Firm Orders 2.Release Orders ASCP Planning Time Fence Release Time Window Scheduling Horizon Planning Horizon Run various scenarios in Production Scheduling, approve and schedule/reschedule to ERP systems 15
16 The VCP Suite of products Core Products, PS Views, Sample Resource-Utilization Gantt Combined view of resource utilization to see scheduling of operations and resource utilization Display various buckets and switch between different bucket types 16
17 The VCP Suite of products Core Products, PS Views, Scenario Comparison View 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. 17
18 Summary VCP Issues if multiple ERP s are targeted Issues to Review 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) ERP or VCP setup Various functionality may be maintained either in ERP or in VCP Samples: Sourcing rules, lead time setup (ASCP / ERP), sequence dependency Region specific differences to consider Sample: region specific UOM (Pound / LB / KG / L) existing in parallel as base UOM, ASCP cannot handle out of the box such cases 18
19 Customer Sample Pre-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 19
20 Customer Sample Pre-Requisites, ASCP/PS Approach Plants Markets LATAM NA EMEA ANZ Level 1 One global ASCP distribution plan for key top products.. CL MX AR BR US CA.. FR UK DE AU NZ ES IT Level 2 Regional level ASCP plans (combined market and production plan) Level 3 Plant level production scheduling for selective sites NZ Plant Plant LA US North South CH France UK Australia 20
21 Customer Sample Implementation 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. 21
22 Customer Sample Challenges and Solution Approach 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 Planning and Consumption Formulas 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 Limitations in VCP for UOM Issue Problem: ASCP can only handle one common base uom at a time Solution: Customization 22
23 Contact Henrik Sobolewski Principal Consultant und Projektleiter PROMATIS AG Thurgauer Str Zurich Tel Fax Web: 23
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