light house presentation

© 2014 Stellium Inc

Lighthouse Integrated Supply Chain ManagementPresentation

• Integrated Supply Chain Planning – Lighthouse SCM

• Module Wise- Key Features and Benefits

• Lighthouse Technical Architecture & Specifications

Contents

Stellium LighthouseTM is a robust enterprise supply chain planning, and optimizationsolution that enables Manufacturers and Distributors in Automotive Supplies Industry todrive end to end value chain planning from Suppliers to Customers in multiple horizonsfrom Long term strategic planning to Hourly execution planning.

LighthouseTM SCM

SCE

Supply Chain Execution

SCP

Supply Chain Planning

Modules

SCA

Supply Chain Analytics

Production Planning and Scheduling

Warehouse Management System

Demand Planning and Forecasting

Warehouse Management

Analytics - WPM 360oTM

Supply Planning

Warehouse OnsitePAK (Printing, RF, Voice, PTL sol)

Demand Planning Analytics

Production Planning & Scheduling

Analytics

Supply Planning Analytics

Stellium Lighthouse SCM suite is an integrated Supply Chain Management solution combining planning, execution and analytics

Sales & Operations Planning

Lighthouse Enterprise Sales & Operations Planning

Demand Supply Balance

Comprehensive Reports

`Pre-defined Alerts to enable Exception base management

Lighthouse Demand Planning

Multidimensional Drill Down

Aggregation & Disaggregation

User Friendly Interface

Multiple Data Measure Set up

In-built mechanism to chose the most accurate forecasting method from multiple forecasting technique

New Product & End of Life Planning

Promotions Management

Pre-defined Alerts to enable Exception base management

Attribute and Classification Based Planning

Lighthouse Production Planning & Scheduling

Synchronized & Constrained Planning based on material and capacity

Operation Splitting and Alternate Route/BOM


Comprehensive Reports and KPI Tracking

JIT Production Scheduling Capability

Bottleneck Based Scheduling

External Set-up; Optimal change over sequence

Transfer Batch Size flexibility

Lighthouse Supply Chain Planning Suite offers very high fitment with Out-of-box features for various Industries

Lighthouse Supply Planning

Complex supply chain modelling

Optimal Inventory across the network


Comprehensive Reports and Action Messages

Pre-defined Alerts to enable Exception base management

Configuration of multiple Replenishment Parameters

Attribute Based and Classification Based Planning

Lighthouse Supply Chain Suite Information Warehouse

Historical Data

Key Performance Indicators

ERP

Planned Independent Requirement

Customer OrdersProduction Orders

Procurement OrdersStock Transfer Orders

Production Scheduling

Inventory Management

Demand Planning

Master Planning

Supply Planning

Production Planning & Scheduling

Warehouse Management

Lighthouse SCM suite seamlessly integrate with most of the ERPs and Information Warehouses

Stellium Lighthouse SCM suite – Application Architecture

Sales & Operations Planning

Effective Supply Chain Planning to create accurate, data-driven plans…

Best In Class Solution

•Very high fitment with Out-of-box features for Automotive supplies industry

•Planning for all horizons

•Advanced Algorithms to generate forecast, replenishment/supply plan, production plan and production schedules

Lowest Total Cost of Ownership

•Accelerated deployment through workflow based model

•Easy pre-built integration with SAP-ECC and Oracle

• Superior performance with high number of Item Locations

• Flexibility to extend/map supply chain as you grow

Faster Adoption & Faster ROI

• Interactive UI and real-time KPI focused reporting tools

•Out-of-the-box decision support capabilities which enable optimal decision making

•Pre-configured set of Alerts and Exception Based Planning

•Out of box reporting

Lighthouse SCM solution creates value for Organization by Enabling Effective Supply Chain Planning at Lowest TCO delivering fastest ROI



1. Sales & Operations Planning

2. Demand Planning

3. Supply Planning

4. Production Planning & Scheduling


Contents

Key Use cases

Lighthouse allows sales and operation planning at any level of product, region and time hierarchies thus providing the required level of depth.

Lighthouse disaggregates data based on the sales history data of the SKU- region combination. Aggregation is a sum of the lower level data as per hierarchy.

The data measures can be selected from existing planning books or S & OP specific measures can be created.

Reports and alerts can be created in Lighthouse to show deviations which require the user’s attention.

Multi-dimensional Drill Down


Configuration of multiple Data Measures

Multiple Scenario Evaluation

Consensus and Collaborative Planning

Classifications and Attribute based Planning

Reports and pre-configured alerts

Lighthouse S&OP allows filtering down of the data as per the user created classifications and attributes.

Lighthouse allows multiple scenarios to be created and compared to make effective Demand – Supply balancing decisions.

Lighthouse S&OP allows individual users to record numbers for consensus data measures based on user role and permissions.

Sales & Operations Planning – Key Use Cases

Multi Time Period ViewLighthouse S & OP supports multiple time period views such as Weekly, Monthly, Quarterly and Yearly. Also the calendar can be set to industry timelines.

Key Features of the Lighthouse Sales & Operations Planning

Function

Connects business planning to tactical planning through integration of planning books

Highlights demand and supply imbalance at the product family level

Planning at aggregated and higher hierarchy levels

User authorization for Sales, Marketing, Logistics, Finance and other departments.

Data Measures

Planning function wise editable measure

Demand forecasting data measures such as Statistical Best fit, Final forecast etc

Supply planning data measures such as Planned Orders, BOH, EOH etc

Manufacturing planning data measures such as Manufacturing Plan

Flexibility

Multiple time periods such as weekly, monthly, quarterly and yearly

Industry specific calendar weeks modeling capability

Multiple scenario evaluator

Parallel Product Hierarchy

Parallel Region Hierarchy

UOM Conversion

Waterfall Chart

Security

User , Password, Role Sign In for individual planning functions as well as users

User Control by Products, Region, Data Measure

Role limit to Add, Edit, Delete, View




2. Demand Planning

3. Supply Planning



Contents

Lighthouse Demand Planning features drive the operational value levers which directly enhances the shareholder value for an enterprise

Key Use casesLighthouse allows forecast generation at any level of product, region and time hierarchies thus providing the required level of depth.

Lighthouse disaggregates data based on the sales history data of the SKU- region combination. Aggregation is a sum of the lower level data as per hierarchy.

Multiple Data Measures are available for the generation of forecast.

Custom reports and alerts can be created in Lighthouse to show deviations which require the user’s attention.

Multi-dimensional Drill Down


Configuration of multiple Data Measures

Advanced Statistical Forecasting Techniques

Transitions Planning- Supersession and Re-alignment

Consensus and Collaborative Planning

Classifications and Attribute based Planning

Reports and pre-configured alerts

Lighthouse allows filtering down of the data as per the user created classifications and attributes.

Lighthouse supersession allows creation and deletion of SKUs. Product histories can be copied from existing products to new products.

Forecasts can be generated using any of the forecasting techniques available in lighthouse- WMA, exponential, ARIMA, etc. Best fit forecast is selected.

Lighthouse facilitates collaborative planning by giving users from different roles the access to view/edit data.

Demand Planning- Key Use Cases

Function

ABC Analysis

XYZ Analysis (frequency of demand)

Unlimited Data Measures

Graphical Displays with Line, Bar and Pie charts

Operate Daily, Weekly or Monthly

Product Rank

Data Measures

Historical; Orders or Shipments

Best Fit, Adjusted or Sales Forecast

Customer Forecast

Budget

Custom Data Measure with User Defined Formulas

Flexibility

Gregorian Calendar

13 by 4 Week Calendar

4-4-5, 4-5-4, 5-4-4 13 Week Quarters

Parallel Product Hierarchy

Parallel Region Hierarchy

UOM Conversion Factory

Waterfall Chart

Security

User , Password, Role Sign In

User Control by Products, Region, Data Measure

Role limit to Add, Edit, Delete, View

Notes on Forecast Change

Custom Validation

Key Features of the Lighthouse Demand Planning & Forecasting

• Selection of the right forecasting method depends on the characteristics of the historical sales data- whether the data shows seasonality, seasonality and trend or neither of the two (random variations)

• Based on the historical data, Lighthouse proposes a forecast method which can be changed manually

• The selected forecasting method is run and the forecast error is determined

• If the error is beyond acceptable limits, another forecasting method is selected

• Univariate Forecasting - Uses historical data to determine demand pattern and proposes the best fit model based on the lowest forecast error.• Moving Average• Models (Constant, Seasonal Trend,

Seasonal• Exponential Smoothing – Single,

Double• Auto exponential – additive &

multiplicative• Holts-Winters• Croston’s Method

• Causal Forecasting - Causal forecasting combines external market factors (economic condition, price, weather, etc.) while determining the forecast.• Multiple Linear Regression

Forecasting Techniques Selection of Best-Fit

Statistical Forecasting

Agg

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n/D

isag

greg

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n

Typ

es

Based on Sales History for a specific Period

Based on the specified Split Percentage given as

an input

Equal Proportion if no sales history is available

Aggregation/Disaggregation is based on the historical sales data for specific period or a split percentage

If there is no historical data available, the split will be equal across all the SKU Location combinations

Aggregation/Disaggregation Types

• Consensus based forecasting combines different business goals, different forecasts from different departments

• Collaborative forecasting brings different companies in the supply chain to share information & produce one forecast

• Result is one number demand plan agreed up on and owned by all stakeholders

• Accuracy of the forecast is checked against actual sales

• Flexibility to plan against multiple planning horizons & planning buckets

Collaborative Consensus Planning




2. Demand Planning

3. Supply Planning



Contents

Lighthouse Replenishment Planning features drive the operational value levers , which directly enhances the shareholder value for an enterprise

Key Features

Lighthouse Offers the flexibility to model complex multi-echelon supply chains and plan for inventory across the entire chain.

Lighthouse balances end consumer demand signals and forecasts, on hand inventory and in-transit inventory to create optimal planned orders.

Parameters such as safety stock in quantity or time, maximum coverage in quantity or time, lot sizes, lead time etc. are easily configurable at the item-location level of the supply hierarchy.

Models Complex Multi-echelon Supply Chain

Optimization of inventory across the network

Configuration of Multiple Replenishment Parameters

Comprehensive Reports & Pre-configured Alerts

Reports and action messages notifying the user of the unusual deviations are generated. These warrant corrective actions from the user.

Supply Planning - Key Features

Deployment creates the stock transfers for short-term changes on both supply and demand side Fair share rules for Deployment:

Proportional allocation based on demand

Proportional allocation to reach the target safety stock level

Quota arrangements

Priority

Deployment Functionality in Supply Planning




2. Demand Planning

3. Supply Planning



Contents

CUSTOMERSERVICE

CUSTOMERS

SUPPLIERS

Cycle time variation

Capacity problems

Production quality problems

Material quality problem

Yield variation

Modification of operational objectives

PURCHASING PRODUCTION PLANNING

FINANCE

Order modification (date, quantity,

specifications, ...)

Promotions

Sales forecast update

Product Listing / Delisting

Products Phase in / Phase out

Engineering Changes

Demand and Supply imbalance eventually results in long order lead times, excess inventory, misused capacities and poor customer service.

Common Production Planning Challenges

Production Planning and Scheduling- Key Features and Benefits

• Production Planning in Short, Medium and Long Term Planning horizons

• Robust modelling capability with system enabling modelling of alternate resources, BoM, Routing and work order splitting

• Material and capacity constrained planning in the same planning run

• JIT Production, Bottleneck based schedulingcapability

• Interactive scheduling for incorporation of planner decision based on changes in demand or supply

• Due Date confirmation based on What-if analysis evaluation

• Intuitive UI and ease of transfer of inputs and outputs to enterprise systems , shop floor systems

• Exception Highlights and Problem Summary (Identification of Late , Short Orders)

• Ability to derive operational, tactical and strategic plans

• Demand Driven planning and minimization of inventory

• Lead time reduction with work order splitting amongst multiple resources

• Improvement in resource utilization and throughput by identification and efficient management of bottleneck resources

• Improvement in customer satisfaction by enhancing due-date delivery performance

• Planning efficiency enhancement by greater adherence to production plan / schedule

• Reduction in planning cycle time and enabling higher responsive supply chain

• Higher visibility in planning exceptions, evaluation and enhancing decision making

• Seamless integration with enterprise and execution systems

Key Features Key Benefits

PPS- Robust Modelling Capability of all Production Scenarios

• Raw Material • Semi finished Goods • Finished Goods• Any state of matter (Solid,

Liquid & Gas)• Bill of Material (Single or

Multi Level)

• Routing • Operations• Planning & Scheduling Cycle • Factory and Resource

Calendar • Scheduling parameters• Set up times• Sequence dependent times

• Supplier Information • Supplier Lead times• Procurement orders• Procurement lot sizes

• Resource capacity• Production rate• Run time• Yield

• Sales orders• Customer items • Order type• Priority• Requested delivery date• Quantity

• Item availability • Inventory availability date• Inventory expiry date• Inventory – Customer

pegging

Planning Model Data Definition

DISCRETE PRODUCTION

CONTINUOUS PRODUCTION

PRODUCTION PROCESSES

Products

Capacity Modeling

Production Process

Demand Modeling

Procurement

Inventory

Lighthouse Production Planning & Scheduling solution enables planning of both discrete or continuous production system

PPS - Finite Capacity Planning Engine

Order by Order Planning with orders sorted based on due date, priority and quantity

Inventory consumption of finished items, semi-finished items and raw materials

Bucket based Planning based on planning bucket size as defined in planning parameters

Assignment of planning bucket dates after comparison of LPST / EPST

Procurement plan and work order plan generation for the net demand simultaneously

Generation of Supply -Demand Pegging, by fixing cross feeds and clean-up based on constraints at every node

Finite Capacity Planning

Unconstrained Demand- Sales

Orders / Replenishment

Orders

Demand Driven

Capacity Planning

Order Plan with Completion

dates based on material and capacity plan

Demand Driven

Material Planning

PPS- Review and Modification of Results - Interactive Scheduler

User Interface features such as Interactive Scheduler

Lighthouse Production Planning and Scheduling has a user friendly interface such as Interactive Scheduler that allows a planner to view, add, edit, overlap or cancel any planned work order for a given sales order.

Ease of use to modify the generated production plan according to the dynamic requirements and priorities.

PPS – Intuitive UI for effective Exceptions Management

All problems encountered by Lighthouse PPS- material problem, capacity constraints, etc. are summarized in problem summary.

Sales Order Late: Sales order is late if the completion date is more than the requested delivery date of sales order.

Order Short- Order receives less than the required quantity. To look into which orders have the problem, right click on the problem and select order list.

PPS- Order Evaluation Capabilities through -What-if Analysis

This feature helps the user to run various scenarios or simulations on a sales order and find out if the sales order can be completed within the due date.

This is required when: A new order is received from the customer and a due date and quantity has to be promised. Customer requirements like due date or quantity have changed. These changes can be checked for

feasibility. Sales order(s) is (are) selected from the sales order screen. Then either infinite capacity plan or finite

capacity plan button is clicked. This opens a new window giving the sales order plan for the selected sales orders.




Contents

Lighthouse Product Offerings

SaaS- Application Software as a service

No CAPEX investment on server infrastructure –Infrastructure on Cloud to be used as a service

No CAPEX on Software Licensing –Required modules can be subscribed as services for a subscription fee

Planning Process as a service

No CAPEX investment on server infrastructure –Infrastructure on Cloud to be used as a service

No CAPEX on Software Licensing –Required modules can be subscribed as services via subscription fees

No additional Human Resources for Planning function –Plan processes could be carried out as a service through strategic partnership

On-Premise System Implementation & Deployment

CAPEX - Server Infrastructure

CAPEX - Software Licensing

Trained Personnel for operation

On-Premise System Implementation & Deployment- Operations Offered as a Service

CAPEX - Server Infrastructure

CAPEX - Software Licensing Cost

No additional Human Resources for Planning function -Plan processes could be carried out as a service through strategic partnership

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Web-services

Lighthouse GUI

LEAP ware , SAP Data Services (BODS)

End user

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Lighthouse UI(MS)

SAP ECC 6.0

Oracle, MySQL, SAPHANA*, MS SQL

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Optimization Engine Process WorkflowMaster Data Management

Reporting & AnalyticsUser AuthorizationScheduling Engine

Replenishment Engine

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Data Cleansing

Data Enrichment

Business Base

Data Transformation

* Available from Nov 1st week. Currently in Co-innovation Stage

Stellium Lighthouse Technical Architecture

Stellium Lighthouse Technical Architecture for Cloud Deployment

Lighthouse Application Server On Cloud

Data Access Classes, Data Cache Management

Web-services

SQL/Oracle/DB2/SAPHANA*

Business Base

Lighthouse Planning Engine

.Net Framework 4.0

SAP BODS

Enterprise Systems & Integration Components –

On Premise

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Technical Specifications

Technical components Technical Specification

Operating System Windows Server 2012, Windows 8,7

Database SQL Server 2008,2012, Oracle, DB2, My SQL, SAP HANA

Web service IIS 6.X Webserver

Platform .NET Version 4.0

Planning Engine R Version 3.0 for Demand Forecasting

Optimization CPLEX, GUROBI

Data Management SAP Data Services, Stellium LeapWare

HEADQUARTERS

Stellium Inc.

10700, Richmond Avenue, Suite 208,

Houston

Texas-77042 USA

PH: +1-713.999.9080

ASIA PACIFIC OFFICE

Stellium Consulting India Pvt. Ltd.

Ferns Icon Doddanekundi, Marathalli ORR

Bangalore-560 037 INDIA

PH: 091.80.4922.4400/+91.80.2512.8815

Email us on [email protected]

Visit us at www.stelliuminc.com

Get in touch

mailto:[email protected]

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