css michigan oracle users group nov 13

8/12/2019 CSS Michigan Oracle Users Group Nov 13

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VALUE CHAIN MATURITY:WHERE DO YOU STAND ONTHE ROAD TO EXCELLENCE?



Agenda• CSS Intro• TLA’s

• Objectives: Why a Maturity Profile?• Maturity Profile Matrices• Preparing for the Journey



People, Process, Technology

MATURITYPROFILES



MATURITYPROFILEOVERVIEW FORS&OP/IBP/ VCP

0. S EGREGATED PLANNING

1. F OUNDATIONAL / H OLISTIC AND CONSENSUS PLANNING

2 and 3. V ALUE-FOCUSED PLANNING

4 AND 5: C OLLABORATIVE AND O PTIMAL

Demand sensing, rapid replenishmentExtended, holistic use of optimizationExtended advanced analytics

Targeted application of advanced planning rules, feasible plan creationS&OP/IBP Process Maturity, Simulation Capabilities, Demand ShapingExpanded, predictive and focused analytics

Automation/standardization of basic planning processes, systematic plan creationForward-looking single point visibility, basic planning analyticsS&OP/IBP Processes and KPI’s established, Synchronized Long -Range/Short-Range

Excel-based planning and execution, decentralized and not synchronizedPlanning decisions based on tribal knowledge, reactionary, living by expediteConflicting or nonexistent KPI’s



PROCESSMATURITYPROFILEMATRIX

Maturity Level Demand Planning Inventory Planning Supply Planning Data/AnalyticsPrerequisite Design/Education Design/Education Design/Education Design/EducationLevel 1 Top-Down and

Bottom-UpForecast Gen

Basic Inventory Plan:Min/Max, SS, basicallocations, etc.

MRP/MPS Std. and Ad HocReports, DataScrutiny

Level 2 Collaboration andConsensus, Synchwith Financial andStrategic Plans

InternalReplenishmentPlanning, multi-site,Synch with Financialand Strategic Plans

Feasible PlanCalculation, Synchwith Financial andStrategic Plans

CommonFoundation, KeyAlerts, Multi-LevelViews, FocusedKPI’s

Level 3 Granularity andPrecision, DemandShaping

Costs andConstraints, Policiesand Rules, Profit-Based

Sequencing,MaximizingThroughput,Profit-Based

Predictive,Scenarios andRanges

Level 4 ExternalCollaboration,

DataSophistication

ExternalCollaboration,

Simulation andScenario Planning

ExternalCollaboration,

Simulation andScenario Planning

On-Demand,Exception-Based

Level 5 Demand Sensing,CDP, VMI-Capable,ContinuousImprovement

Holistic Optimization,Multi-Echelon,Consumption-Driven

HolisticOptimization,Consumption-Driven

Extended, SocialMedia, DailyConsumption Data



TECHNOLOGYMATURITYPROFILEMATRIX

Maturity Level Demand Planning Inventory Planning Supply Planning Data/Analytics

Prerequisite S&OP Process S&OP Process S&OP Process S&OP ProcessLevel 1 Base StatForecasting, Top-Down / Bottom-up

Basic Calcs:Min/Max, SS,Variability, SL’s

Base MRP/MPS /DRP

Std. and Ad HocReports

Level 2 Collaboration(Internal), BasicTuning of StatEngine

InternalReplenishmentPlanning, multi-site

Feasible PlanCalculation

Common Foundation,Key Alerts, Multi-LevelViews, Static S&OP

Level 3 Causal Factors,Advanced EngineTuning (Nodal),Price Optimization

Costs andConstraints, Policiesand Rules

Sequencing,MaximizingThroughput

Integrated +Actionable S&OP,Multiple Scenarios andRanges

Level 4 ExternalCollaboration andextended demanddata sources

ExternalCollaboration,Simulation andScenario Planning

ExternalCollaboration,Simulation andScenario Planning

IBP (internal and/orexternal), Simulationand Scenario Planning

Level 5 Demand Sensing,VMI-Capable,ContinuousImprovement

Holistic Optimization,Consumption-DrivenPlanning

HolisticOptimization,Consumption-Driven Planning

On-Demand,Consumption-Driven,Exception-Based,Extended Value Chain



NON-MATRIXSUMMARY OFS&OP MATURITYMIGRATION

7

Visibility Insight

Planning ProcessesFunctional Focus,

SegregatedHolistic KPI-Driven

Decision Focus Reactive Predictive and Prescriptive

Data / Information Supportive, Scrutinized Competitive Advantage

Granularity SummaryHierarchical, Specific and

Targeted

Customer/Supplier View Operational External / Extended andStrategic

Demand SignalManagement

Shipment-based, ad hocand reactive

Consumption, Depletion,POS, Centralized/Proactive



PREPARING FORA VCP JOURNEY



• Realistic Self-Assessment•

Process• People• Technology - especially the data

• Prioritize Requirements• Attach Value• Benchmark, Identify Opportunities for Competitive Advantage• Understand the Critical Decisions• High-level End Design and Roadmap• Fully Understand the Data Requirements• Commit• Evaluate and Select Appropriate VCP Technology

Diligence in Preparation for a VCP Transformation



10

• Realistic Self-Assessment•

Process• People• Technology - especially the data

• Prioritize Requirements• Attach Value• Benchmark, Identify Opportunities for Competitive Advantage• Understand the Critical Decisions• High-level End Design and Roadmap• Fully Understand the Data Requirements• Commit• Evaluate and Select Appropriate VCP Technology

Diligence in Preparation for VCP Transformation



ORACLE’S INSIGHTPROCESS CAN HELP YOUPRIORITIZEREQUIREMENTS, IDENTIFYSOLUTIONS ANDATTACHVALUE

Aligning processes to supportbusiness strategy and visionby leveraging synergies …

… and providing for anappropriate, flexible andenabling technologyinfrastructure …

… helps achieve businesssuccess and unlocks untappedvalue and benefits

Business Processes Enabling Solutions Business Value+ =



DATAREQUIREMENTS BYMATURITYLEVEL

DataRequirements

Demand Planning Inventory Planning Supply Planning Reporting/Analytics

Prerequisite End Design End Design End Design End DesignLevel 1 Item, Customer,

Location hierarchy,primary demandhistory

Items, Locations, on-hand, in-transit,demand history,parameters

Items, BOM’s,Routings, Locations,Suppliers, dynamicdata, parameters

All Level 1 Data – Long-term StructuralDesign

Level 2 Depletion, POS,

sales and financialforecasts

DRP lead times,

replenishment rules

Production

Capacities

Reporting

Hierarchies, PlansLevel 3 Maintained Causal

FactorsCosts andConstraints, Policiesand Rules

Changeovers,Sequence-Dependent

Range plans,Scenarios

Level 4 Customer Forecasts,POS, other demandstreams, Social

Media

Customer /SupplierRequirements and

Plans, demandscenarios

Customer / SupplierRequirements andPlans, demand

scenarios

Customer / SupplierRequirements andPlans, demand

scenariosLevel 5 Near Real-Time

Demand / Orderimpacting data

Holistic PlanningRules andObjectives

Holistic PlanningRules and Objectives

Consumer data,Social Media,Expanded



COMMITMENT



CORE OPERATIONALCHANGESARENECESSARYTOCREATEBUSINESSVALUE

14

• Culture and people change

• Data governance

• Business process change

• Organizational alignment

• Sponsorship

• Capability assessments

• Funding process management

GoodSoundjustifications

• Program governance

• Project objectives

• Multi-phased roadmap

BetterWell run project

BestDriving change

Beating the odds for success



THEORACLEVCP MATURITYPROFILEMATRIX



ILLUSTRATIVE VCP PRODUCTPROFILE BYMATURITYLEVEL

Maturity Level Demand Planning Inventory Planning Supply Planning Data/AnalyticsPrerequisite S&OP Process S&OP Process S&OP Process S&OP ProcessLevel 1 Base Demantra

DemandManagement

Manual, Static,maintained in ERP

Basic ERPMRP/MPS

ERP S&D, Reports,Transactional OBI

Level 2 Demantra S&OPfor Collaboration,Basic Tuning ofStat Engine

Demantra S&OP forcalculation of SS,MOQ, ROP, etc.

Advanced SupplyChain Planning orRapid Planning

Advanced PlanningCommand Center(APCC)

Level 3 Demantra AFDM,Advanced EngineTuning

ASCP, InventoryOptimization,Strategic NetworkOptimization (SNO)

ProductionScheduling, CBO

APCC, SNO

Level 4 Demand SignalRepository (DSR),Predictive TradePlanning (PTP)

CollaborativePlanning, IO, SNO

CollaborativePlanning

APCC, SNO,Manufacturing OpsCenter (MOC)

Level 5 DSR, DemantraTrade PromotionOptimization

IO, SNO, SNO APCC, MOC, DSR,SNO

css michigan oracle users group nov 13

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