avata webinar: solutions to common demantra & ascp challenges
TRANSCRIPT
Solutions to Common Demantra& ASCP Implementation Challenges
April 14, 2016
Welcome
• Deb Bryant, Marketing Coordinator
• Jim Heatherington, VP Sales
• Presenting:• Trudy Grieve, Sr. Principal Consultant
• Duane Hardacre, Managing Partner
Housekeeping Announcements• During the Webinar - Please remain muted throughout presentation
• After the Webinar› No Q&A at the end but we will send out an email to all of you with a copy of the
entire presentation and our contact information› The webinar will also be available on our SlideShare account as well as our
website
• Announcements› May 10 Webinar: S&OP in the Cloud for JD Edwards
The AVATA DifferenceS u p p l y C h a i n P r a c ti ti o n e r s
Coupled with Deep VCP Expertise
Gartner Recognized as Industry Experts
Oracle SCP Specialized
Fusion Co-Development Partner
#1 Oracle SCP Cloud/BPS Partner
Partner Award for Excellence in SCP
Specialized by Oracle Preferred by CustomersRecognized by Industry
Specialized by Oracle Preferred by CustomersRecognized by Industry
Demantra Challenges
Demantra Key Challenges
• Change Management• Implementation• Data• Process • Configuration• Demantra Tips & Tricks
Change Management
Change requires commitment• Best practice vs. replication
• Change is resisted, understand and mitigate
• Assign ownership (Project and Process)
• Encourage collaboration/conversations of market information
• Metrics and Measures are learning devices, not smoking guns
• Demand Planning should be ‘unconstrained Demand’
• Policy and Procedures for ERP must be implemented
Implementation
Understand Demantra/Demand Planning
Demantra is not a source system. ERP system is the system of record.
Demantra is only a source of the Demand Plan.Demantra is not a reporting tool.
Support the ImplementationAssign sufficient resources to support system
implementationConfigurable systems require iteration
Data Validation is a critical
Implementation
DecisionsHave a steering committee to
support issues & opportunities.
Ensure a Stage Gate process is
followed.
Don’t revisit finalize proven
decisions.Interations - leads to good decisions.
Hierarchy Demantra requires a solid hierarchy to enhance the
engine results.
Determining the correct level for planning is critical
but performance should always be considered.
Implementation
Set reasonable timelines• Work within the business requirements (holidays, budget timing, etc)
Training• Navigation training provides an opportunity to improve design• Train the trainer
Data and DemantraData validation
Data ownership is critical
Priority should be on getting data in the early phase of the implementation• Data issues need to be addressed quickly and effectively• Expect data interations
Data needs to be relative to Demand Planning • Demand versus Shipments • Default Warehouse vs Ship From
Ownership of master data needs to be clear
Process
Design workshops • Time and effort to create a design
• Don’t over complicate - crawl, walk, run
• Best practice versus replication
• Look for opportunities to simplify and improve
• Entire team must be available for Design sessions
• Roles and responsibilities need to be clearly defined
Process
Understand Value• Understand opportunities for a solid ROI • Set reasonable timelines – improvement takes time
Demand Planning
• Demand Planning combines statistical information and judgment• Judgment cannot be automated• Unconstraint planning
Configuration
Out of the Box• Assign internal ownership to test configuration• Documentation and sign off is key• Configuration and iterations – can’t have one without the other• Be prepared to speak up, address issues, work for resolutions• Understand the need to tune the engine after implementation
(internally or externally)• Ensure an internal member is well versed on Business Modeler
User Tips & TricksMember Management
• Operational but requires solid knowledge of how to use it
Chaining• Out of box system is too complex• Copy/paste chaining is more efficient
Similar Item• Risk of entering a bad record that hasn’t come from Core ERP systems• Can be an effective replacement for Chaining• Facility to remove combinations
Offline Functionality• Access without being on VPN
Export & Import of Excel• Need to ensure layout is not changed
New Item, View Item, Edit Item, Delete Item• Danger!!! Should limit usage or remove options
Specialized by Oracle Preferred by CustomersRecognized by Industry
ASCP Challenges
ASCP – Common Challenges
• Change Management • Process • Data• Configuration
Change Management• Overly complex starting off
› Adoption and validation is more difficult
› Loss of trust in the solution (data, capabilities, output)
• Design through the end state initially but implement in phases• Must have a front line “Process Champion” in the business
› Empowered to drives change and solution adoption at lowest levels
› Deep enough content/experience in legacy processes/system (or excel) to bridge the gap between the old and the new
• Remove excuses
• Can be a super user but is often a supervisor / manager level
Change Management• Executive Support
› Educate executives on the “journey” • Ensure objectives, phases, timelines, and metrics are aligned through the
organization (from executive to planner)• Don’t go cheap on the training
› Train-the-trainer is the most effective training when executed correctly• Skillset assessment
• Understand how you are aligning the roles & responsibilities across the process
› Demand Planning› Master Scheduling / Operations planning › Production Planning & Scheduling › Materials Planning / Buy Plan › Inventory Planning, Contract Mfg Planning
• Aligned by strategic accounts, products and/or Contract Manufacturers, business units, onshore/offshore
• Segment your supply chain: Customer, Product Family, Items, etc.,
• Align key functions: Drop-in Orders, Order change requests, supporting S&OP, strategic planning, materials planning, GOP (expediting) etc.
Process
Process down to the System level• Interact with the system• Expected/required data
• Expected output
“Software based process design”
Process
• Software Based Process Design / Re-engineering › Educate / train users and managers up front at the onset of process design /
process mapping
› Keep in mind the practical aspects, strengths and limitations of the software
› Understand the different roles within the system and their activities, and required data
From Chaos to Cadence • Establish a Monthly, Weekly, Daily Cadence
› Especially for global operations, S&OP, Retail Industry (Min ord quantities)› Understand the underlying assumptions
Process Step Monthly Calendar Responsibility Matrix
Regions
Brand Inventory
TeamCorporate Planning
Corporate IT/BSA
Corporate Purchasing
Contract Mfg
Executive Team
1Monthly Meeting with Brands/Regions to review any changes needed to item attributes/new product familes. R, A R, A C I I
2 Brands & Regions to make necessary changes to data template(s) R, A R, A C I I3 Upload revised data templates to Planning Sharepoint Site R, A R, A4 Upload templates to EBS R5 Consensus forecast consoldiated and uploaded to CDR R R C R6 Demand plan updates R, A R, A
7EMEA inventory transfers for demand, review preliminary 'buy' approval and adust as needed R, A R, A C C
8 MOQ subsidiary updates R, A C
9 Capacity review and pre-load updates, send 'Buy' summary report to factories C R, A R, A10 MOQ global updates (current and future months) C R, A C11 Generate buy plan approval report C R, A C12 Buy plan approval, financial approval from executive management C R, A C
13Approved buy plan execution, forecast published to factories, PO's created and issued to factories I I R,A R,A I
14 Demand plan archived I I I R,A I
R=Responsible, A=Accountable, C=Consulted, I=Informed
Align Responsibilities
Orchestrate Execution
Monthly Planning Calendar
Process Cadence Document Weekly Planning Processes: Role Based, Event & Exception Driven
Process Cadence Publish Clear Calendar of Weekly / Daily Activities by Role
Week Group Mon. Tues. Wed. Thurs. Fri. Sat.
Customer Service/Order Management Evaluate Distributor Orders Evaluate Distributor Orders
Distributor Order Sourcing ReviewedProcess Cancellation
Demand Planning Evaluate Distributor OrdersFinal Demand Review
S&OP Pre-MeetingUpdated Forecast for Consensus
(including distributor) Push Approved Buy Consensus
Demand
Regional Planning Review Cancellations Evaluate Distributor Orders
Pull In OpportunitiesFinal Suppply Review S&OP Pre-Meeting
Distributor Order Sourcing Reviewed Push Out Opportunities Push Out Opportunities
Global Planning Full Collection for Buy Plan
Customer Service/Order Management
Demand Planning Push Consensus Forecast
Regional PlanningShip-To MOQ Analysis
Adjust Regional Buy PlanShip-To MOQ Analysis
Adjust Regional Buy PlanAdjust Regional Buy Plan
Pre- Exec S&OPSuppply Review Executive S&OP
Push Out OpportunitiesUpdate Buy Plans & Release POs
Global Planning Global MOQ &Capacity Analysis Global MOQ &Capacity Analysis Executive S&OP Run Collection
Week 4
Week 3
Activity / Who Mon. Tues. Wed. Thurs. Fri. Sat. Sun.
Review Recommended Releases & Cancellations
Pull In Opportunities
(Tactical S&OP)
Pull In Opportunities
Push Out Opportunities
Push Out Opportunities
Global/ Centralized
Supply Planners
ASCP PlanNet Collection
ATPNet Collection
ATPNet Collection
ATPNet Collection
ATP ATPFull Collection
ConsensusATP
Respond to Supply and Demand QuestionsAttribute Maintenance (before Friday plan run)
Sourcing Updates (before Friday plan run)Manage Lead Time
Regional Supply Planners
Respond to Supply and Demand Questions
Normalize the Process
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Process Cadence
Translate the processes and activities to system execution• Queries & Folders & Pegging
• The process flow / activities should map to standard set of folders views and queries
• Folder views should be configured (customized) to tie back to roles and responsibilities ensuring the required fields /data are displayed
› Master Scheduler, Production Planner, Buyer, etc.,
• While not done the exact same way, the concept of mapping planner views / data to the process also applies to Rapid Planning
Strategy
Execution
Folders
• Almost every form in ASCP should be based on a customized folder / query
Caution when selecting Always and Open as Default options together. This will cause the forms to become very inflexible and cause you problems.
Queries & Exceptions• Appropriate Action & Exceptions Queries should be built based on the process,
and roles/responsibilities › Planner / buyer queries to release / reschedule planned orders based on their products,
specified timeframe, etc.,› Exception queries
Queries & Exception• Layout the appropriate exceptions and queries for your solution Exceptions Message
Owner Description Action Summary
Late Supply Pegged to a Sales Order
Planner When firm / non-firm supply due date is later than the demand due date for independent or dependent demand with top level affected demand being a sales order
Narrow exception by Org, Category or Planner Code
View Exception Detail Form Drill into necessary Supply /
Demand details to resolve Past Due Sales Orders
Order Mgt
Sales order with schedule ship dates past due.
Update Sales order date
Late Supply Pegged to a Forecast
Planner When firm / non-firm supply due date is later than the demand due date for independent or dependent demand which is a forecast when pegged to top level demand
Execute the same as “Late Supply Pegged to Sales Order”
Orders to be rescheduled- in
Planner / Buyer
Purchase Orders, Planned Orders and Discrete Jobs that need to be expedited. In order to meet demand dates, the order needs to be pulled in. Note: Firm Orders will not generate reschedule messages.
Narrow exception by Org, Category or Planner Code
View Exception Detail Form o View Old Date & New
Date Contact necessary people to
confirm reschedule and update the system.
Orders with compression days
Purchase Orders, Planned Orders and Discrete Jobs that need to be expedited. Compression days is the number of days the orders lead-time needs to be compressed to hit the demand due date.
Sort Compression Days in Descending
Orders to be cancelled
Planner / Buyer
Cancellations to avoid excess supply for Purchase Order, Reqs, Intransit, Discrete Jobs that the system does not peg to demand.
Confirm and Cancel Order
Orders to be rescheduled out
To avoid excess supply, these are purchase orders, discrete jobs, intransit, etc.. that need to be rescheduled to a later, recommended date.
Confirm and Reschedule Order
Past due orders
Planner / Buyer
Discrete Job, Intransit Shipments and Purchase orders that are past due
View Exception Detail o Note Old Date and
New Date Resolve exception
Note in release 12.2 you can enable just thoseappropriate exception messages for your solution, and disable the rest so the plan doesn’t generate them.• Improves plan performance• Increasing planner usability by not having to
“weed through” hundreds of exception messages
Workbench Preferences • Personalize the Planner Workbench
Process
Usability
Execution
Perfection is the enemy
Pegging• Caution: Has significant impacts› High Projected Available Balance (PAB) caused by
Safety Stock Pegging, and Planned orders recommended early
› PAB is below Safety Stock › Existing Supplies Pegged to Safety Stock Demands
and Real Demands ( Sales Orders and Forecasts) are met Late
› Leverage priority pegging along with proper profile option settings
• MSO: Supply Window Size and MSO:Demand Window Size
Note: In release 12.1.3.X you can leverageNew excel export capability A simplified excel pegging spreadsheetgenerated as part of the plan run
And So Much More• Constraints
› Caution when using “Purchase constraints”
› Start with fewer constraints and add complexity (example: bottleneck resources)
› Caution with sequence dependent setups with getting overly complex constraint based plans
• Order modifiers› Critical to producing a reasonable, effective plan output that can be executed
› Critical to reducing plan nervousness
• Plan Run Time – Performance can be optimized with the right DBA tricks and later upgraded versions
• Collection optimization – break up collections to parallelize activities
• Profile Options – There can be a webinar just on those, use caution to understand their impacts especially some of the obscure, not so obvious ones.
› Share Plan partitions = No (this one gets everyone starting out)
• Forecast consumption / global forecasting – iterative testing and thoroughly
• Leverage multiple plans for various purposes
› Sales order only plan , What-if scenario plan, S&OP Plan, a Buy plan, ATP Plan, Various constraint modes, etc.,
Thank You!
Jim HeatheringtonVice President of Sales(C) +1 [email protected]
www.avata.com
Contact us to know more.