John Conlin

Principal Solutions Consultant

Manufacturing & Supply Chain
Applications
Oracle Corporation

E Mail : John.Conlin@Oracle.Com
 e-Business
Starts on the
Shop Floor
Keep it SIMPLE...
Leverage Technology
Front & Back Office Integration
Effective collaboration across business
processes determines success or failure
Current Supply Chain Environment
ATP
Not Synchronized
CTP Expensive Interface Management
Customer Loose Mfg. History & Genealogy
Demand

Application
Data Planning
ERP batch Warehouse batch

Solution Weaknesses:
MES MES MES
Customer requirements are secondary
Lack of synchronization between customer
demand data & manufacturing supply data
Interface management obstacles
ERP is NOT integrated with MES
Batch interfacing susceptible to old data
 Oracle
Shop Floor Management
Solution Overview
e-Business Platform Starts with...
Well Managed Supply Chain (Visibility)

Architected for plug-in Capacity

Leverage Visibility into Customer Service
Evolve into Virtual Supply Chain
Conform to Expanded Standards
Fully Integrated Supply Chain Planning
Customer/Demand Focus...
OSFM is a solution, initially
developed for the
Semiconductor Industry.

Major Semiconductor industry leaders are

OSFMs customers today!

The solution is now being expanded across

all industries
Oracle Integrated Supply Chain Solution
Oracle ERP Sales

SC Planning
ATP Server
Demand Planning
Internet
Product Supply Customer
Customer
Innovation Chain Relationship
Management Management Management
(PIM) (SCM) (CRM)
Oracle Manufacturing Solution:
Customer responsiveness enabled
Oracle Shop Floor Management through real-time data
Real-time global WIP, inventory
visibility, planning
Multiple MES feeding data through
MES MES MES OSFM to ERP
Instant access via Internet
Supplier MES Internal MES
 Flexible Routing Definitions
Possible Networks
C
Comprehensive routing network
A B E H model your shop floor
D define possible rework points

can be just linear

F G

Primary Route
C Primary route to define:
A B E H standard costs for an assembly
D manufacturing lead times

used for planning

F G

Actual Route
CC
Actual route taken while in WIP
A BB EE H compare with primary route:
D cost variances

dynamically built
F G
Advanced WIP Transactions

Split one lot to out to multiple lots

Merge multiple lots into one lot

Update Assembly for existing lot

Update Routing lot to another lot for a different assembly

Bonus in lots beginning at any operation sequence

Update Quantity of an open lot at any operation sequence

 Customer Service
Real-time Global Lot Status

OracleShopFloorManagement
Flexible Routing Definition

... ...
All Lot Transactions are
?
WIP Lot Moves
Mirrored in OSFM
(Real-time)

OSFM Lot Transactions

Manufacturing Execution Systems

Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
 Customer Service
Lot Tracing & RMA (Genealogy)

OracleShopFloorManagement
Complete Lot Genealogy

Wafer ... Probe ... Assembly ... Finished ... Ship

- All Operations are Captured Fab & Test Good Product

- Trouble Shooting for Engineers VS0548A/1/1/1

Supra 300

- Parent Child Relations

...
VS0548A/1 VS0548A/1 VS0548A/1/1

VS0548A VS0548A/1/1 VS0548A/1/1/2 Supra 300

VS0548A/1

VS0548A/2

...
VS0548A/1/2
VS0548A/1/1/3
VS0548B/1
Supra 300
VS0548B/1 VS0548B/1
VS0548B/1 VS0548A/1/2/1

...
VS0548A/1/2

VS0548B VS0548B/2 VS0548B/2 VS0548B/3/1 VS0548A/1/2/2

Manufacturing Execution Systems Supra 300

Manufacturing Execution Systems VS0548B/3/2/1/1

...
VS0548B/3 VS0548B/3 VS0548B/3 VS0548B/3/2 VS0548B/3/2/1

Manufacturing Execution Systems

Manufacturing Execution Systems VS0548B/3/2/1/2
VS0548B/3/2/2 Supra 300
Manufacturing Execution Systems
VS0548/B/3/3/2
 Cost Management
Yielded Costing by Operation (Virtual Daily Close)

OracleShopFloorManagement
X =$
O
Operation Yielded Costing

Cumulative & Reverse Cumulative

Yield at each Operation
Operational Yield 100% 90% 78% 85%
Cumulative Yield 100% 90% 70% 60%

Shrinkage at
Each Operation 0% 10% 12% 15%
Total Shrinkage 0% 10% 30% 40%
Manufacturing Execution Systems
Manufacturing Execution Systems Yield Cost $20 $120 $265 $850 vs $510
Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
 Real-Time Synchronized Supply Data
Validated & Ready for Planning

OracleShopFloorManagement

As Manufacturing Transactions
occur OSFM readies data for
Manufacturing Related Information effective planning
Event Based Planning Paradigm
Data is Cleaned & Validated

Manufacturing Execution Systems

Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
 Transaction Support Via Rosettanet / OAG
Ability to link vendors using different software

OracleShopFloorManagement

Working on support for important

WIP Txns
XML Based Integrations Rosettanet PIP 7B1 ( formerly
3D8) Manufacturing
Inbound as well as outbound

Manufacturing Execution Systems

Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
 A
X ?
Co-Product Definition B

X A B C
Common Bills Reference

A B C X
* primary
Inverted Bill Resulting Bills
(Co-Products)
 Existing
Customers
Partial List of OSFM Customers

Highlights
75+ customers
Replacing MES in
Semiconductor
Assembly & Test
 Real-Time Synchronized Supply Data
Validated & Ready for Planning

OracleShopFloorManagement

As Manufacturing Transactions
occur OSFM readies data for
Manufacturing Related Information effective planning
Event Based Planning Paradigm
Data is Cleaned & Validated

Manufacturing Execution Systems

Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
Manufacturing Execution Systems
 Oracle
Advanced Planning

Moving from black and white to color:

Why upgrade from MRP to Advanced Planning
 Advanced Planning Solution
Complete E-Business Planning Solution

Supply Chain Intelligence

Demand Planning ODP

P la n n in g L e v e l Inventory Optimization IO

Supply Chain and

Manufacturing Planning ASCP

Order Promising GOP

Design
Sell
Manufacturing
Plan Scheduling WPS
Finance
Market Supply Chain
Human Resources Procure Collaborative Planning CP
Event Management
Projects
Service /
Maintain Minutes Hours/Days Weeks/Months Quarters Years Time
Manufacture
Fulfill
Key Capabilities

Sales and operations planning

Inventory postponement optimization

Holistic planning and optimization

Multi-tier collaborative planning

Zero downtime global order promising

Where To
Start?
From MRP
Unconstrained material
and resource planning

Basic forecasting

Basic available to
promise

No collaboration
MRP

Oracle Applications
(10.7, 11.0, 11i)
No path forward
 Same effort to deploy as MRP Reuse all existing setup!
to Unconstrained ASCP
Improve planner productivity
New productivity enhancing UI
Planner collaboration
Reduce your planning cycle time
from months to hours
Holistic planning; incl. Multi-Org
ASCP
Improved scalability and performance
Make better decisions faster
Improved exception resolution
Improved modeling
Reduce non-value added costs
Workflow based exceptions

Unconstrained
Drive continuous improvement
Integrated business intelligence
MRP APS Common Infrastructure

Foundation for future growth

Oracle Applications Common Infrastructure
(10.7, 11.0, 11i)

ASCP = Advanced Supply Chain Planning

 Make better decisions leveraging a more comprehensive model
Unconstrained ASCP
Use a single plan to plan your entire supply chain to
reduce planning cycle time
Simultaneous material and capacity planning
Plan process, discrete, mixed models, and lot-based
Perform forecast consumption inline
Plan at aggregate level, as well as detailed level in a
single plan, with better accuracy
Time granularity in plan horizon
Account for operational yields

Leverage advanced problem solving and analysis tools

Comprehensive exception management and automation through
workflow
Extensive pegging capabilities

Measure plan to target performance S.C. Intelligence

Integrated performance management

Integration to Daily Business Intelligence (DBI) Management

Analysis
Summary
 Multi-step, high latency, limited collaboration

Move from black and white

Customers Suppliers
Tier 2

Tier 1

Marketing Distribution Production Manufacturing

Forecast Plans Plans Plans

Sales
Forecast

Mfg
Forecast
? t = weeks

Demand Planning Process Supply Planning Process

E-Business planning solution: zero latency, real-time collaboration
to Color: Oracle Advanced
Planning

Customers Suppliers

Tier 2

Tier 1

Portal Portal
Internet

Automated Exceptions

Marketing

Manufacturing

Sales
Consensus Single
Demand Hub & forecast and holistic plan
Multi-dimensional analysis prod. plan
Mfg
S&OP Process Supply Planning

Business Intelligence
 Low risk, high value transition to a better planning system
Key Takeaways
Achieve significant value with a better planning
system
Improve customer service up to 35%
Reduce inventory up to 50%
Improve forecast up to 35%
Reduce planning cycle time to hours

Progress at your own pace, transition gradually

Quickly start with unconstrained planning
Move up to constrained or optimized planning
Leverage out-of-the-box integration to rapidly extend planning
footprint

Leverage your existing Oracle ERP and MRP

investment
Youve already done most of the work by setting up and
maintaining the core business data elements