Industrial Manufacturing Solutions Achieve Manufacturing Excellence. Presenter s Name: Presenter s Title:
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1 Industrial Manufacturing Solutions Achieve Manufacturing Excellence Presenter s Name: Presenter s Title:
2 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. 2
3 Agenda Leadership in Industrial Manufacturing Innovation in Industry Solutions Results Achieved by Oracle Customers 3
4 Oracle in Industrial Manufacturing Did You Know? 9 of the top 10 Fortune s industrial & farm equipment manufacturers run Oracle Applications 8 of the top 10 industry Week s leading machinery manufacturers run Oracle Applications 10 of the top 15 leading container and packaging companies run Oracle applications 7 of the top 10 electrical equipment manufacturers on the Fortune 500 run Oracle Applications 4
5 The Challenges We re Hearing Grow Revenues & Accelerate Innovation How can we grow the business by offering our customers higher value products and services? 80% of the world's top corporate CEOs declared that their primary objective has shifted from cost-cutting to revenue growth. IBM BCS, The Global CEO Study Eroding Margins How can we implement Lean to reduce waste, support the bottom line to free up capital? Lean programs are being used for operational excellence in almost all manufacturing companies today. Striving for excellence requires a commitment to continuous improvement and the foundation of all continuous improvement is analytics. Jane Barrett & Nigel Montgomery, AMR Research,
6 The Challenges We re Hearing Responding to Customer Demands How can we respond more rapidly to changes in market conditions? Market leaders all have supply chains that are more responsive to customer demand. Yossi Sheffi, MIT, in the Economist, June 17, 2006 Manage Globalization & Consolidation How do we capitalize on industry consolidation and global market opportunities? companies are seeking information management strategies that align (real-time and transactional processing)..in a global setting, to provide visibility into performance and deliver key information for ERP. Colin Masson, AMR, Oct 26,
7 Eroding Margins Challenge Eroding Margins How can we implement Lean to reduce waste, support the bottom line and free up capital? Lean programs are being used for operational excellence in almost all manufacturing companies today. Striving for excellence requires a commitment to continuous improvement and the foundation of all continuous improvement is analytics. Jane Barrett & Nigel Montgomery, AMR Research,
8 Agenda Leadership in Industrial Manufacturing Innovation in Industry Solutions Results Achieved by Oracle Customers 8
9 Achieve Manufacturing Excellence Requirement Oracle Capability The Oracle Difference Enable paperless production to reduce costs and improve quality MES, Quality, Mobile Supply Chain Only enterprise SW provider with integrated MES Support flexible inventory replenishment and collaboration requirements Collaborative Planning & Execution with Integrated Kanban Management Integrated customer and vendor managed inventory for complete supply chain visibility Support lean, agile manufacturing processes Mixed Mode Manufacturing (ETO, CTO, MTS, Flow, Etc) Only enterprise SW provider with integrated flow manufacturing & Kanban functionality 9
10 Achieve Manufacturing Excellence Requirement Oracle Capability The Oracle Difference Enable paperless production to reduce costs and improve quality MES, Quality, Mobile Supply Chain Only enterprise SW provider with integrated MES Support flexible inventory replenishment and collaboration requirements Collaborative Planning & Execution with Integrated Kanban Management Integrated customer and vendor managed inventory for complete supply chain visibility Support lean, agile manufacturing processes Mixed Mode Manufacturing (ETO, CTO, MTS, Flow, Etc) Only enterprise SW provider with integrated flow manufacturing & Kanban functionality 10
11 MES for Discrete Manufacturing Enable Paperless Production to Reduce Costs and Improve Quality MES for Discrete Mfg ERP Corp Mgmt MES Production Mgmt Shop Floor Control System Automation & Control Operator Works from dispatch list Views work instructions and production related information Reports Time, Record transactions, Enter quality data Reports Production Exceptions Supervisor Reviews & resolves exceptions Monitors shop floor progress Expedites Jobs and Reorders Dispatch List Reviews Historical Transactions Accesses Job and Resource Gantts Monitors Production Performance Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management Reduce TCO / Complexity via Integrated Mfg Mgmt & Production Execution Facilitate Removal of Non Value-Added activities and Maximize Shop Floor Productivity 11
12 Quality Mgmt System w/ Statistical Analysis Analyze Critical Data and Drive Process Improvement Partners Your Company Distribution Suppliers Component Manufacturer Manufacturer Retailer Customer Closed Loop Corrective Action Integrated Enterprise Repository Role-Based Access Collect / aggregate data Analyze information Distribute results Build-In Quality Multimedia attachments Operational method sheets Paperless communication Root Cause Analysis Trend & control charts Histograms Pareto 12
13 Improve Shop Floor Visibility and Control Configurable, Role Based Workbenches MES Operator Workbench An integral part of the MES for Discrete Manufacturing Module Serves as a starting point on any day in the life an Operator Provides easy to use tools and all the information needed for operators to execute their work all through a simplified user interface Improves Operator Efficiency and Productivity by minimizing system interaction time MES Supervisor Workbench Comprised of two Components Supervisor Dashboard Supervisor Workstation Helps enforce stricter controls on manufacturing activities and resolve issues that prevent work progress through several Managerial Functions Enhances shop floor visibility by presenting a variety of information to reflect current shop status and issues requiring resolution 13
14 Mobilize the Shop Floor Simplify transactions and improve improve data accuracy Built-in Mobile User Interface Mobile Manufacturing Moves, Issues, Returns, Scrap, Completions, Mobile Quality Quality Collections, Specifications, Mobile Receiving Direct, Std, Inspect, Cross-Dock, Print, Mobile Inventory Misc. Transactions, Transfers, Counts, Mobile Shipping Pick, Confirm, Ship, Confirm, Print, Built-in RF Middleware RF Base Station LAN or WAN Mobile Transaction Server Apps / Database RF Device Telnet Over TCP/IP SQL Net 14
15 Improve Operator Productivity & Efficiency Enable Paperless Production with Complete on-line Information Configurable Dispatch List Driven Execution Workstation is Dispatch List driven Content is highly configurable to improve production efficiencies Provides several visual cues that aide Operators in performing their work Supports a variety of actions and data drilldowns that can be conveniently performed in the context of any job operation in a dispatch list 15
16 HOLOGIC Reduces Inventory and Operating Costs COMPANY OVERVIEW A leading developer, manufacturer and supplier of premium diagnostic and medical imaging systems dedicated to serving the healthcare needs of women. Employs over 1,000 people and generates $387M in yearly revenues. CHALLENGES / OPPORTUNITIES Difficult to coordinate production scheduling to optimize output due to multiple manufacturing systems Non Availability of information when needed due to several disconnected systems and databases with redundant information SOLUTIONS Oracle MFG/Supply Chain (Discrete MFG, Quality, Inventory, Planning, Purchasing, isupplier) Financials Order Management, CRM HR, Incentive Comp, HR Self Service, OLM OFA, ADI, FSG, Discoverer CUSTOMER PERSPECTIVE The Oracle [EBS] system ties together all of our financial and manufacturing data. It has been instrumental in enabling us to reduce inventories and provides comprehensive real time information to monitor our business. Mike Parrilla, VP of Manufacturing RESULTS Better shop floor visibility and control in managing mixed mode manufacturing environments Timely access to accurate operational information through a standard singleinstance system Increased Labor Productivity Improved Inventory Accuracy & Control Reduced Inventory As much as 50% in some plants Reduced Part Shortages by 67% Improved Customer Service 16
17 Achieve Manufacturing Excellence Requirement Oracle Capability The Oracle Difference Enable paperless production to reduce costs and improve quality MES, Quality, Mobile Supply Chain Only enterprise SW provider with integrated MES Support flexible inventory replenishment and collaboration requirements Collaborative Planning & Execution with Integrated Kanban Management Integrated customer and vendor managed inventory for complete supply chain visibility Support lean, agile manufacturing processes Mixed Mode Manufacturing (ETO, CTO, MTS, Flow, Etc) Only enterprise SW provider with integrated flow manufacturing & Kanban functionality 17
18 Collaborative Planning Support Flexible Inventory Replenishment and Collaboration Needs CUSTOMER YOU SUPPLIER VMI Agreement Send consumption advice VMI Agreement (with customer) VMI Agreement (with supplier) VMI Agreement Check inventory status Receive items Ship items Receive items Ship items Pay on receipt/use Pay on receipt/use Reduce inventory carrying costs 18
19 Collaborate with Customers Improve Sales Forecast Visibility to Your Suppliers Forecast Collaboration Process YOU CUSTOMERS SUPPLIERS Synchronize Sales/Order Forecast Synchronize Sales Forecast Sales Forecast Publish (optional) Manage product life cycles more effectively, with your trading partners Introduction of new products Phase-out of obsolete products Improve supplier visibility Publish sales forecast to suppliers at any tier Reduce non-value added costs and exception overload User-defined exceptions Proactive notifications Automated exception handling via workflow 19
20 Collaborate with Suppliers Increase Global Visibility, Reduce Shortages and Cut Cycle Time YOU Consensus forecast Sales Forecast Supplier Forecast Reduce shortages and improve supplier delivery performance Provide order forecasts to your suppliers Identify supply-demand mismatches Plan Constraint capacity Order Forecast Plan, Spreadsheet Respond better to supplier exceptions Get visibility to your supplier s constraints Review constraints in your S&OP process Supply commit (capacity) Reduce non-value added costs and exception overload User-configurable exceptions Automated exception handling via workflow Optional 20
21 Complete Kanban Planning and Execution Reduce inventory with integrated Kanban capabilities Point of Supply! Signal via electronic visual cues Point of Use Inventory Production Supplier Feeder Plant Pull Sequence Kanban Execution Kanban Planning Mfg / Assembly Floor Stock Staging Zone Pull Plan Execute Simulate and compare multiple demand scenarios Generate new kanban cards and automatically cancel outdated cards Flexible Pull Sequence definition supporting single card, dual card, and non-replenishable kanbans Automatically create supporting transactions (PO, Flow Schedule, Move order) 21
22 Collaborate Across the Supply Chain Globally Integrate Customer and Supplier Inventory Requirements Empower suppliers to create & manage their own users Collaborate with Suppliers on Demand, PO History, Invoices, Quality data, etc. Enable management of VMI and Consigned Inventory Provide Access to Real-time Supplier Performance metrics 22
23 Ingersoll Rand Improves Supply Chain Visibility COMPANY OVERVIEW $9.2B global diversified manufacturer, based in Hamilton, Bermuda Major brands include Bobcat, Club Car, Hussmann, Dresser-Rand, Thermo King, Schlage, and Kryptonite CHALLENGES / OPPORTUNITIES Provide direct and indirect material suppliers with timely planning and shipping schedules Free employees from supplier inquiries SOLUTIONS Oracle Purchasing Oracle isupplier Portal Oracle iprocurement CUSTOMER PERSPECTIVE Oracle applications have helped to streamline our procurement strategy. We now have terrific supply chain integration that has enabled us to exponentially roll out this product to our supplier base. Our suppliers dial in to a self-service application to answer a majority of their questions and it really frees up a lot of time for our procurement folks because we are able to do more strategic activities. RESULTS Automated 59,000 supplier relationships 90% reduction in supplier telephone inquiries Created access to 100K SKU s via two online catalogs 500 users spending $5.4B annually via 15K req. s / month Rolling out to 5K users at 120 global sites 23
24 Achieve Manufacturing Excellence Requirement Oracle Capability The Oracle Difference Enable paperless production to reduce costs and improve quality MES, Quality, Mobile Supply Chain Only enterprise SW provider with integrated MES Support flexible inventory replenishment and collaboration requirements Collaborative Planning & Execution with Integrated Kanban Management Integrated customer and vendor managed inventory for complete supply chain visibility Support lean, agile manufacturing processes Mixed Mode Manufacturing (ETO, CTO, MTS, Flow, Etc) Only enterprise SW provider with integrated flow manufacturing & Kanban functionality 24
25 Oracle Mixed-Mode Manufacturing Support Lean, Agile Manufacturing processes Demand Variability Cost Analysis Integrated Intelligence Productivity Advanced Planning Planned Orders Schedule Changes Component Substitutes Resources Substitutes Mixed Mode Mfg Execution ETO/ Project Standard WIP Sample Seiban CTO / ATO MTS Analyze Flow / Lean Lot-Based Adjust MES Model Shop Floor Quality Management Lot / Serial Genealogy Tracking isupplier Contract Mfgrs Suppliers Product Lifecycle Mgmt Warehousing / Transportation Asset Maintenance Service Demand Schedules Sequencing Configured Order MES APIs, Direct Access Enterprise Customer Shop Floor Contract Mfgrs Suppliers Material Availability Mfg Capacity Schedules/Changes Production Status Ship Notices Invoices/Payments Partner Collaboration 25
26 Oracle Production Scheduling Maximize Shop Floor Throughput and Optimize Resource Utilization Maximize throughput of bottleneck resources Automatic detection of bottlenecks Minimize setup with intelligent sequencing Improve shop floor performance Minimize the effect of unplanned downtime Easy identification of issues What-if rescheduling Drag and drop Quickly determine the best schedule Fast easy simulation Scenario comparison and key performance indicators Implement quickly by leveraging out-of-thebox integration Integrated manufacturing planning and scheduling Fully integrated with Oracle E-Business Suite 26
27 Oracle Flow Manufacturing Solution Robust Scheduling and Sequencing Feeder Line Synchronization Outbound Broadcast Sequencing Kanban Planning and Execution Mixed Model Simulation with Takt Time Analysis Sequenced Demand Customers Kanban Replenishment Final Assembly Line Oper 10 Oper 20 Oper 30 Oper 40 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Inventory Production Lines Feeder Plant Feeder Line Sequenced POs Suppliers Synchronized Production 27
28 Flow Manufacturing Support Lean Practices to Reduce Cycle Time & Waste Define and associate standard processes w/ configurable models Add alternate paths & rework loops Add standard events, associate with options Identify TQC and value-add events Associate work instructions with optional events Calculate line & operation takt and req d resources Highlight imbalances based on option s planning percentages Reorganize events into balanced operations Kanban planning based on option planning percentages Demand leveling and smoothing by line rate Order promising by line rate Collaborative planning for VMI and consigned Inventory optimization for postponement Kanban execution Constrained based line sequencing based on configuration and its attributes Feeder line & supplier synchronization for just in time configured component delivery Operator workstation to deliver configured work instructions to the floor Value Stream Mapping Line Design Lean Planning Lean Execution 28
29 Viking Range Enables Flow Manufacturing COMPANY OVERVIEW Viking builds ultra-premium kitchen appliances and outdoor cooking products Approx. US$1 billion in annual revenues, Approx. 1,500 employees Viking manufactures in US and sells globally through a network of appliance distributors CHALLENGES/OPPORTUNITIES Tremendous growth and numerous acquisitions necessitated moving 13 systems onto one global, integrated, real-time platform for better, more accurate access to manufacturing, order management, financials and business intelligence information and to lower overall business process & IT costs Could not schedule across its three plants and numerous distributors Needed a system that would support Viking s existing superior, lean business processes and also support Viking s explosive growth SOLUTIONS Oracle E-Business Suite Oracle Database/Technology Oracle Consulting Oracle University CUSTOMER PERSPECTIVE Of all the tier-one solutions providers, we believe Oracle has the best manufacturing solution for us. Our manufacturing process is already lean and cutting-edge, so we were looking for software that would support our existing lean processes and help us gain needed visibility across our entire enterprise. Brian Waldrop, EVP & CFO, Viking RESULTS Improved existing lean mfg business processes with increased real-time, accurate visibility of enterprise-wide data Consolidated 13 disparate, legacy systems into one single, integrated, global Oracle instance Achieved significant IT costs savings with less hardware and avoidance of hiring additional IT staff Complete visibility into banking debt and investments balances Source: Oracle Customer Experience 29
30 Oracle Industrial Manufacturing Solutions Summary Enable Paperless Production to Reduce Costs and Improve Quality Streamline Transactions and improve operator efficiencies Provide real-time quality, cost and productivity data Automate operator access to all manufacturing/product documentation Support Flexible Inventory Replenishment And Collaboration Requirements Collaborate with Customers and Suppliers to reduce inventory and increase service levels Simplify support of VMI and Consigned Inventory Expand partnerships with key customers and suppliers Support Lean, Agile Manufacturing Processes Complete Mixed Mode Manufacturing capabilities to Support, ETO, CTO, Make-to-stock, etc World class Flow Manufacturing capabilities with Takt time analysis, Scheduling/Sequence optimization & more Maximize shop floor throughput and optimize resource utilization 30
31 The Only Complete Industrial Manufacturing Solution Platform Processes Customer Results People Partners 31
32 32 Oracle Industrial Manufacturing Footprint
33 Market-Leading Middleware Platform Best-Selling 32,000+ Customers Deployed 70% of World s s 50 Largest Firms $1B+ Business Highest Rated Only vendor in Gartner and Forrester leader quadrants for all Middleware components. Most Comprehensive Source: Forrester Research ranking of Application Platform Servers, April 2005 SOA Vendor of Choice 33
34 Oracle s People Advantage 220,000 database customers 1700 application ISVs 30,000 applications customers 275,000 customers benefiting from shared innovation 30,000 middleware customers 29,000 developers, support engineers and consultants 1300 participants in early customer adoption programs 5000 middleware ISVs 950 customers participating in Customer Advisory Boards 9000 database ISVs 35 Fusion strategy council members 425 user groups 500 Industry & Product strategy council members 34
35 Agenda Leadership in Industrial Manufacturing Innovation in Industry Solutions Results Achieved by Oracle Customers 35
36 Industrial Manufacturing Customer Results reduced inventory 15% overall, increased productivity 15%, material costs reduced 5% and 15% cycle time reduction with Oracle E-Business Advanced Planning consolidated 13 Systems to a single global instance servicing 120 countries. Also reduced raw material and finished good inventory by 56% purchase order release efficiency improved over 700% and 800,000 items were loaded in a unified corporate catalog with Oracle E-Business Suite Procurement 30% decrease in order cycle time, 20% increase in on-time delivery and 30% increase in inventory turns with JDE Order Management and Manufacturing shortened lead times by over 70%, reduced inventories by over 70%, increased productivity by over 20% with Oracle E-Business Suite CTO capabilities gained $6.2M in incremental sales 1st year, improved sales productivity through automated pricing and proposal generation with Siebel CRM 36
37 The Oracle Difference Only Oracle Offers a complete integrated set of solutions for the Lean Enterprise Has integrated MES functionality to improve production efficiencies and access to Information Provides a complete set of tools to collaborate with customers and suppliers to lean-out the supply chain Delivers integrated, out-of-the-box manufacturing capabilities such as Flow, MES, EAM, etc. 37
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