doug souza vice president – process manufacturing development holger mueller vice president –...
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Doug SouzaVice President – Process Manufacturing DevelopmentHolger MuellerVice President – AGSS / SAP BattledeskDavid BallinAGSS Solution Architect – SCM, Process Manufacturing
OPM Differentiators over SAP
Summary of OPM R12 Features
• Common Inventory• Dual unit of measure control • Advanced lot control• Material status• Enhanced inventory allocation
rules• Migration Scripts• Views for historical data
• Process Product Development• S88 Compliant Org Structure• Item Revisions• Least Cost Formulation • Ingredient Substitutions
• Regulatory Integration to Third Parties
• Process Quality• Enhanced receiving inspections• Corrective action request and
processing
• Process Execution• Item Revisions• Reservations • Move orders• More MSCA transactions
• Process Operations• Batch Journal• Dispensing and Pre-weigh• Label Management• Deviation Management• Improved UI/ Processing instructions
Order Management Procurement ASCP
OPM Recipe / Quality
OPM
Costing
OPM
Production
BOM /QualityCostingWIP
OPM
Inventory
DiscreteInventory
Advanced Inventory Management for Process Industries
Order Management Procurement ASCP
OPM Recipe / Quality
OPM
Costing
OPM
Production
Oracle Inventory
BOM /QualityCostingWIP
• Single Inventory Model• Org specific attributes• Process features include:
• Flexible balance tracking in two units of measure
• Grade• Expiration/ Maturation Dates• Material Status• Enhanced inventory
allocation rules• Indivisible lots• Support for “child lots”
(replace “sublots” in OPM)• Process Manufacturing flags
New Features for Process
• Central item master• Organization specific item attributes• Leverage Product Data Hub (PDH) Additional License
• Improved Physical and Cycle Counting methods• Vendor-Managed and Consigned Inventory• Warehouse Management Additional License
• Mobile Supply Chain Applications Additional License
• Labor Management• Additional Lot Management Transactions via MSCA
• Lot Merge• Lot Split• Lot Translate• Flexible Attribute Definition / Attribute Inheritance
• Leverage move orders and reservations in Batches
Plant to Enterprise Strategy
OPM + MES for Process
Process Instructions & SOPs, Dispensing, Nonconformance Mgmt.,
Electronic MBR and CBR, Mobile, Labeling, Device Integration
OPM
MES for Process
Devices
Electronic batch records, process-centric, low-med shop floor
automation, standardization and data visibility across plants
Oracle Edge Server
OPM + integration other MES
APIs and Web Services enable integration based on
S95
OPM
MES
Devices
Electronic batch records, decentralized plants, highly automated, accept costs of maintenance of interfaces
Web Services
3rd Party Integration
OPM
Existing Process Manufacturing Suite
OPM
Paper batch records, material-centric, minimal automation and manual
data entry
Pharma Plant to Enterprise (P2E) Transparency
ERP
MES
Process
Controls
Corporate Management
Plant Management
Process Management
Oracle Process Operations (R12)Operator-Centric User Interface
SOP IntegrationDispensing & Pre-Weigh
More Comprehensive E-Batch RecordsNonconformance Management
Shop Floor Equipment IntegrationLabeling
More Mobile Transactions
Oracle Process Operations (R12)Operator-Centric User Interface
SOP IntegrationDispensing & Pre-Weigh
More Comprehensive E-Batch RecordsNonconformance Management
Shop Floor Equipment IntegrationLabeling
More Mobile Transactions
MES is a Success
• "Oracle’s E-Business Suite (EBS) Release 12 MES functionality for process and discrete manufacturers has been a poorly kept secret. Oracle MES is a tangible reflection of the company putting its investments where customers want them and enhancing the products they already own.The addition of deep MES focuses the spotlight on Oracle’s Applications Unlimited strategy, rather than the intangible benefits of a new generation of Fusion technologies. Nevertheless Oracle EBS customers are already seeing some of the early benefits of Fusion in a new HTML user interface and embedded analytics in Oracle MES."
• "While it’s too early to declare this yet-to-be-released product an unqualified overnight success, there was more than enough highly configurable role- and site-based Release 12 Oracle MES functionality on display at OpenWorld 2006 to worry pure-play MES independent software vendors (ISVs)—particularly those offering transactional, paper-on-glass MES products, or application frameworks."
AMR – Colin Masson – Oct 2006
Oracle in S95
Oracle Fusion Middleware
OPMCreate Batch
MES
Complete Batch
Pro
duct
ion
Sch
edule
B2M
ML
Bat
ch In
form
atio
n -
Mat
eria
l &
Res
ourc
e
Req
uirem
ents
Oracle Enterprise Service Bus
BAMAdaptersB2B BPEL PMSecurity
RoutingTransformationMessaging
Oracle Enterprise Service Bus
BAMAdaptersB2B BPEL PMSecurity
RoutingRoutingTransformationTransformationMessagingMessaging
ISA95 Solution Components For Oracle
• Catalog of service events (Web Services)• Batch Services on top of existing public APIs
(Create/Complete batch, Material/Resource consumption)• ISA95 Services (B2MML messages such as Production
Schedule etc)
• Orchestrate by Fusion Middleware Components• Cookbook / Implementation guide
Is Process Manufacturing lost to SAP?
• No way!• Through a workshop with a German SMB we
confirmed many of our so far ‘suspected’ differentiators
• They spend close to 1.5M to customize SAP to provide the following functionalities
• Not to mention that they did not need to purchase and implement a - formula management system (Selerant / Devex)- shop floor management system (Wonderware)
OPM Key Differentiators
Oracle Functionality … drives Business Benefits
Real-Time Batch Adjustments Efficiency at Plant Floor Level
Formula Simulation and Optimization Superior Quality Management
Lot/Sublot Capabilities Effective Control of Inventory
First Expired First Out (FEFO) Allocation Higher Customer Satisfaction
Least Cost Formulation Optimize Profit
Simultaneous Multiple Units of Measure User Productivity (internal)Customer Intimacy (externally)
Multiple Costing Methods Optimize Pricing and Total Cost Transparency
Specification Matching for Customer Shipments
Superior quality
Electronic Records/Electronic Signatures Internal Efficiency and Compliance
MES for Process Manufacturing Automation of Manufacturing
Oracle -Handling Unplanned Variability during Production
-Interactive scheduling via Process Manufacturing Scheduler Workbench
SAP -SAP needs to stop running batch, correct it and release batch again
Difference -Record process parameters, automatically calculate step quantities, capture electronic signatures as required, compare and report
planned vs. work in process vs. actual, make iterative real-time adjustments, in- progress samples and tests
-Drag and drop manual rescheduling – batches and operations, resource load versus capacity graph, Gantt chart, firming of batches, sequence
dependent setups, Intelligent selection of alternate resources, Priority- based scheduling of batches
Benefit with Oracle -Batch corrections can be made to meet target characteristics, and production schedule can be re-optimized
-Product quality can be continuously ensured – in each stage of the production process
Efficiency at Plant Floor LevelThrough Real-Time Batch Adjustments
• Record process parameters
• Automatically calculate step quantities
• Capture electronic signatures as required
• Compare and report planned vs.work in process vs. actual
• Make iterative real-time adjustments
• In-process samples and tests
40 Test
10 Weigh
30 Blend 50 Package
20 Heat
E-Sign Resource+ActivityUsage/Qty
Resource+ActivityUsage/Qty
Resource+ActivityUsage/Qty
Resource+ActivityUsage/Qty
E-Sign
E-Sign E-Sign E-Sign
Start to Start
Finish to Start
Ingredient 1 Ingredient 2
Ingredient 4 Ingredient 5
Ingredient 3
Product 2By-Product 1 Product 1
Efficiency at Plant Floor LevelThrough Real-Time Batch Adjustments
Oracle -Formula Simulation and Optimization
SAP -SAP does not have the formula and optimization capabilities as Oracle have; therefore 3rd Party Tools need to implemented and specially
integrated for Formula Copy towards Production System
Difference -Ability to Simulate, predict and make changes down to batch level
Benefit with Oracle -Computer-aided formulation based on technical and cost parameters may be run prior to and concurrently with production. Results can be used to Rebalance formulation of Batch in Real-Time environment.
-Integrated System in this area allows error-free and Enterprise wide Change Order Management System, because no Interfaces are
there. In addition to this Impacts of Formula-Changes can be evaluated before Change is implemented. Optimized Change Order Date regarding
Costs and other criteria can be specified.
Superior Quality ManagementThrough Formula Simulation and Optimization
Drilldown to view all properties for the selected record
Drilldown to view all properties for the selected record
Use only the selected record for calculating the product rollup values.
Use only the selected record for calculating the product rollup values.
Data Source easily accessibleData Source easily accessible
• Recalculate Materialand Yield Quantities
• Compute Batch Characteristics (e.g. fat content, potency, etc.)
• Automatically Revise Lot Allocations
Computer-Aided Formulation
Superior Quality ManagementThrough Formula Simulation and Optimization
Oracle -Lot/Sublot Capabilities
SAP -SAP does not have the Lot/Sublot Capabilities
Difference -Ability to track inventory at a granular level with defined quality attributes to the Sublot level.
-The Lot can define the Sublots and its Attributes
-Sublots can carry Inventory Status
-Flows through Lot Genealogy
Benefit with Oracle -Allows the splitting of Lots into Sublots and to have Quality attributes associated to the Lot/Sublot.
-Ability to Maintain Inventory at the Lot/Sub Lot Level
-Allow to Reduction of recall liability
-Better and more flexible usage of your inventory -Better and more flexible usage of your warehouse
Effective Control of InventoryThrough Lot/Sublot Capabilities
Multi-Level Where Used /
Lot Source
Multi-Level Where Used /
Lot Source
Product Attributes Shelf life Retest interval Potency Dual units of measure User-defined classifications
Plant
Item
Warehouse
Location
Lot
Sublot
Grade
Company ABC Company
Manufacturing Location
Product
Inventory Location
Batch ID / Pallet #
Traceable Quantity of Material
Area, Tank, Zone, etc.
Grade A,B,C w/in a Spec
• Improve Recall Responsiveness / Cost
• Trace Materials Enterprise-Wide to Analyze Vendor Quality
• Comply with International Regulations
Status Released, Hold, Quarantine
Effective Control of InventoryThrough Lot/Sublot Capabilities
Variable Lot Attributes
– Customers can update lot specific unit of measure conversions to account for various business scenarios
• Potency, aging, evaporation, reformulation, etc.
• Entry of quality results which determine lot UOM conversion
• Correct lot UOM conversion data entry errors
OPM Lot/Sublot Characteristic Information Creation Date
• Retest Date• Expiration Date• Action Date• Action Code• Grade• User Defined Fields• Unlimited Text• Auto Lot Numbering
Effective Control of InventoryThrough Lot/Sublot Capabilities
Oracle -First Expired First Out (FEFO) method of Allocation. The ATP check goes down to Lot / Sublot level and across all Operating Units
SAP -SAP does not support First Expired First Out (FEFO) method of Allocation down to Lot / Sublot level and across Operating Units
Difference -With Oracle the User can allocate or reserve inventory for Shipment for specific shelf life dates. Some Customers needs to be done by Expiry Notification within certain date tolerance.
Benefit with Oracle -Within Oracle you Reserve Inventory at shipment, based on specific FEFO allocations by Customer!-Higher customer satisfaction guaranteeing customer requested expiration dates
-Avoid returns and higher shipping costs due to wrong shipments-Empower the order agent to do what is right for the customer
Higher Customer SatisfactionThrough First Expired First Out (FEFO) Allocation
Oracle Process Manufacturing selects ingredient lots based on FIFO or FEFO methods
2/1/20032/1/20032/5/20032/5/2003Creation Date
1/1/20031/1/2003FIFO
2/15/20032/15/20033/5/20033/5/2003
Lot ALot A Lot CLot CLot BLot B
Expiration Date
Production batchProduction batch
ShipmentShipment
2/10/20032/10/2003
FEFOAdditionally, for customer shipments:• Preferred Grade• Match on Quality Specification• Remaining Shelf Life
Higher Customer SatisfactionThrough First Expired First Out (FEFO) Allocation
Oracle -Least Cost or Maximum Cost Formulation
SAP -SAP has to customize to have a Maximum Cost Formulation Capability
Difference -Minimizes / Maximizes formula cost, utilizes on-hand inventory, plans production, plans procurement, enforces product specifications
-please see next slide for illustrating that point in more detail
Benefit with Oracle -Allows Minimization or Maximization of Manufacturing Cost to be adhered based on rules applied to Formulation
-For shipments outside the EU using maximum costs formulation will allow optimizing of tax payments
Optimize ProfitThrough Least Cost Formulation
Potential Ingredients
(Sub) Lots 100 – 150
Least Cost FormulaItem Weight Cost Silicon---------------------------------------------------- SOLID SOW-3 825.07 0.3080 2.7500CRUSHED CASTINGS 329.31 0.3100 9.5000CLIPPED ALLOY 4.38 0.3200 0.6000COPPER HARDENER 36.22 0.3800 0.0000NICKEL HARDENER 5.03 2.0600 0.0000GATES & SPRUES 800.00 0.4800 12.0000----------------------------------------------------Gross: 2000.01 LB 765.73466 7.49997025
GeneratesNutrients
Quality
Regulatory
Chemical
Product Specification
Composition
•Minimizes/Maximizes formula cost
• Utilizes on-hand inventory
• Plans production
• Plans procurement
• Enforces product specifications
An annual 2% - 10% savings of the total value optimized can
be achieved by implementing LCF.
Optimize ProfitThrough Least Cost Formulation
Oracle -Simultaneous Dual Units of Measure
SAP -SAP does not support the use of Dual Units of Measure for items
Difference -Package / liquid / Solid contents can vary by containers, track on hand inventory in two units of measure simultaneously, formulate and transact in any convertible UOM, unlimited types of UOM´s associated with item (lb, kg, cases, rolls, bags, trucks). May record different quantities for
each lot (Each case, may have different amount of Gallon.
-Not a modification, inherent to entire application, made for Process Industry
Benefit with Oracle -Ability to track inventory in multiple units of measure, fixed quantities and variable quantities
-supplier delivers in bags, visibility total number of bags and quantity, visibility at order management time price, better visibility,
better control of inventory
- Higher Productivity of internal users as they can work in the UoM they want
- Know more about the customer and store their preffered UoM
User Productivity (internal)Customer Intimacy (externally)Through Simultaneous Multiple Units of Measure
• Package / Liquid / Solid contents can vary by containers • Track onhand inventory in two units of measure simultaneously• Formulate and Transact in any convertible UOM• Unlimited types of UOM´s associated with item (lb, kg, cases, rolls, bags, trucks)• May record different quantities for each lot (each case, may have different amount of Gallons• Unlike other software, works with Purchasing, Order Management, and Costing• Not a modification, inherent to entire application
L0t 0012 Case = 20 Ltr 20.0 Ltr
vs
Lot 001- A1 Case = 8 Ltr
Lot 001- B1 Case = 12 Ltr 20.0 Ltr
User Productivity (internal)Customer Intimacy (externally)Through Simultaneous Multiple Units of Measure
Oracle -Multiple Costing Methods Maintained for Items
SAP -SAP can only show one costing method
Difference -Ability to understand Costs from Multiple Perspectives
Benefit with Oracle -Multiple Costing Records can be tracked simultaneously by the System: Standard, Weighted Average, Actual, Actual Lot, etc.
-Measure direct and indirect labor costs
-Capture resource and utility costs
-include all material costs (e.g. direct, contract)
IndirectAcquisition Overhead ResourceMaterial
ActualActual StandardStandard PeriodPeriodLotLot
CostDevelopment
Monitoring& Analysis
Allocation Valuation
IndirectAcquisition Overhead ResourceMaterial
ActualActual StandardStandard PeriodPeriodLotLot
CostDevelopment
Monitoring& Analysis
Allocation Valuation
Optimize Pricing and Total Cost Transparency Through Multiple Costing Methods
Allows for Multiple Cost Methods
to be Viewed Simultaneous
Optimize Pricing and Total Cost Transparency Through Multiple Costing Methods
Oracle -Specifications Matching
SAP -SAP does not have Specifications Matching on quality attribute measurements within given customer specific tolerances
Difference -Ensure Quality conformance to Customer Requirement prior to Shipment
Benefit with Oracle -Capture and Meet Unique Customer Specifications for Production & Shipping
-Match on specific inventory at lot/sublot level,
-Ship to meet customer specific needs, which will result in less Returns
Superior Quality Through Specification Matching for Customer Shipments
• Define internal and customer products specifications
• Match available inventory to customer specifications
• Provide Certificate of Analysis (COA) with each shipment
CustomerSpecification
ItemSpecification
Min Max
Match
In-Spec Out-of-SpecOut-of-Spec
Superior Quality Through Specification Matching for Customer Shipments
Oracle -Batch Records/Electronic Signatures are Standard features of the EBS
and working in conjunction with Oracle Workflow
SAP -SAP E-Signature is a third party application that is not part of that standard package
Difference -Inline Navigation and inherent to EBS
Benefit with Oracle -Ability to Capture Electronic Signature with in Standard Workflow
Internal Efficiency and Compliance Through Electronic Batch Record / E-Signature
1. Submit transaction
2. List of Signers
4. Authentication 3. View e-record
details
Internal Efficiency and Compliance Through Electronic Batch Record / E-Signature
Oracle -Manufacturing Execution System (MES) Operations for Process Manufacturing
SAP -SAP does not have weighing and dispensing functions within their manufacturing execution system that integrates to their MES
Difference -Integration to plant floor within Application
-Instruction Driven Workbench for Operator Tasks with defined SOP’s
Benefit with Oracle -Support for Work Instruction Display, Dispensing, Batch Progress Tracking, and Ingredient Consumption Reporting
-Oracle offers many of the required MES Functions, at least the ones could considered through Oracle and not a 3rd Party System,
-Lower Costs for error-prone integration.
Automation of Manufacturing Through MES for Process Manufacturing
Complete Process Support for Work Instruction Display, Batch Progress Tracking, and Ingredient Consumption Reporting
Focus on the Operator
• Process guides move operators through work instruction view, progress reporting, and material consumption tracking
• Configurable level of acknowledgement
• All responses logged in Electronic Batch Record
Links to SOPs
Online Process Instructions
Automation of Manufacturing Through MES for Process Manufacturing
Complete Process Support for Work Instruction Display, Dispensing, Batch Progress Tracking, and Ingredient Consumption Reporting
Supporting Deep Manufacturing Operations Management
• Process guides move operators through work instruction view, progress reporting, and material consumption tracking
• Quality data collection and lot data capture for genealogy
• Integration to process equipment
Automation of Manufacturing Through MES for Process Manufacturing
Flujo de Desarrollo de Productos