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Henrik SobolewskiPROMATIS AG, SwitzerlandHamburg, 20. Juni 2017
Oracle Value Chain Planning
Integration globaler Supply Chain-Prozesse in heterogenen ERP-Landschaften
© 2017 PROMATIS AG2
Generic Considerations for SCM in multi ERP Environments
The Value Chain Planning (VCP) Suite of Product
Summary VCP Issues to overcome
Customer Sample: Pre-Requisites
Customer Sample: Selected Approach
Customer Sample: Issue to consider in the Implementation
Summary & Questions
Agenda
June 20, 2017
© 2017 PROMATIS AG3
Generic Constraints to consider for SCM integrationNon integrated ERP, multiple regions and ERP to cover
June 20, 2017
Area Problem to consider
Target Area Regional Planning, global planning, both?
Status of the involved ERP systemsMaturity of the involved systems, status of ongoing projects, can the ERP combine properly with the VCP-Suite?
Value Chain Modules required Selection of modules from (Oracle`s) VCP-Suite
Do the ERP systems follow a common approach (MDM)
Master Data, routing, formulas, does it fit into planning model, does everybody follow the same approach?
Planning Approach Unconstrained Planning, constrained, which design?
© 2017 PROMATIS AG4
The VCP Suite of productsOverview
June 20, 2017
Product range selection based on requirement and approach
Implementation must review:- the detail level- the network to consider (subset, wholesupply network)
- specific requirements e.g.tolling, production or markets
Review of short to long range planning
Structure to cover (MRP, distributionbetween sites in the supply chainnetwork, DRP)
Time
Pla
nn
ing
level
(Deta
il t
o S
um
mary
) Demand Planning / Demantra
Advanced Supply Chain Planning (ASCP)
Inventory Optimization
Minutes Hours/Days Weeks/Months Quarters Years
Order Promising
Supply Chain Intelligence (APCC)
Collaborative Planning
Production
Scheduling (PS)
Rapid Planning
© 2017 PROMATIS AG5
The VCP Suite of productsCore Products to review
June 20, 2017
ASCP as the core backbone module tointegrate different ERP (multi-user, multiplesites)
Production Scheduling (single site usage,typically production site)
Supply Chain Intelligence (APCC), BusinessIntelligence tool to cover handling, analysisand evaluation of plan results
Other tools to cover specific requirements
Time
Pla
nn
ing
level
(Deta
il t
o S
um
mary
) Demand Planning / Demantra
Advanced Supply Chain Planning (ASCP)
Inventory Optimization
Minutes Hours/Days Weeks/Months Quarters Years
Order Promising
Supply Chain Intelligence (APCC)
Collaborative Planning
Production
Scheduling (PS)
Rapid Planning
© 2017 PROMATIS AG6
The VCP Suite of productsCore Products, ASCP Key Questions
June 20, 2017
ASCP Key Questions:
Long or short term planning?
Constrained or unconstrained?
Multiple plans to cover specificneeds or single plan eg. globaldistribution plan and regional level ASCP plans?
Common model across all sites?
ASCP
Long range
network
planning
Demantra
Demand planning
ER
P1
AP
CC
Fore
cast
VC
P D
ata
Colle
ction
Pro
du
ctio
n S
ch
ed
ulin
g
Sh
ort
ra
ng
e s
ch
ed
ulin
g
Oracle VCP 12.2.5
ER
P2
ER
P X
Excel
Excel
Excel
MD
M
Master data
Transactional
data
New work orders
New purchase orders
Work orders
Work orders -
rescheduled
© 2017 PROMATIS AG7
The VCP Suite of productsCore Products, ASCP Key Questions
ASCP is used to plan the whole supply chain network or a subset of the network.
Short to long range production planning including Rough Cut Capacity Planning (RCCP).
ASCP can be configured at varying levels depending on the business need and implementation strategy like:
Distribution between sites in the supply chain network (DRP)
Materials planning (MRP).
Typical users are various planners in various sites
ERP1 ERP2 ExcelExcel
June 20, 2017
© 2017 PROMATIS AG8
The VCP Suite of productsCore Products, Advanced Planning Command Center (APCC)
June 20, 2017
APCC is a VCP content-rich Business Intelligence (BI) tool.It is used for:
Interface to do day to day planning activities for different types of users
Reporting tool
Ad-hoc analysis tool
KPIs tool
APCC has the main features
Pre-built VCP content worldof dimensions and measureswith pre-built aggregation of information
Modern, appealing user interface
Flexible, can be changed to support changing needs.
History of planning for trend analysis
ASCP
Long range
network
planning
Demantra
Demand planning
ER
P1
AP
CC
Fore
cast
VC
P D
ata
Colle
ction
Pro
du
ctio
n S
ch
ed
ulin
g
Sh
ort
ra
ng
e s
ch
ed
ulin
g
Oracle VCP 12.2.5
ER
P2
ER
P X
Excel
Excel
Exce
l
MD
M
Master data
Transactional
data
New work orders
New purchase orders
Work orders
Work orders -
rescheduled
ER
P2
ER
P X
Excel
Excel
Excel
© 2017 PROMATIS AG9
The VCP Suite of productsCore Products, APCC Samples
Provide a consolidated view of all planning-related data.
Enable a holistic view of the planning problem.
Not just demand-focused or supply-focused.
Enable an analytical platform to compare all key metrics together such as financial, sales, manufacturing, etc..
Enable a unified user interface that provides the ability to drill into individual applications for detailed analysis.
Bring together all stakeholders, which enablesfast reconciliation of conflicting businesspriorities.
June 20, 2017
© 2017 PROMATIS AG10
The VCP Suite of productsCore Products, APCC, Samples II
June 20, 2017
© 2017 PROMATIS AG11
The VCP Suite of productsCore Products, User Interface Comparison ASCP versus ACCP
June 20, 2017
Traditional ASCP Workbench
New Supply Planning Work Area
APCC
Content richness ++ - +
Drill-to options ++ + +
Level of detail ++ ++ -
Aggregate information - + ++
Usability – look and feel/, #clicks - ++ ++
Graphical presentations - - ++
Security ++ - ++
Trend analysis (keeps history) - - ++
© 2017 PROMATIS AG12
The VCP Suite of productsCore Products, Production Scheduling (PS)
June 20, 2017
Options for integrated ASCP/PS
Based on ASCP collected data(no ASCP Plan)
Collected ERP data performschedule for work orders only
No forecast consumption
PS is only a short term shopfloor scheduling application
Based on ASCP planned datawith plan reference
Schedule for work orders andplanned orders
Firm planned orders flowback flow back to ASCP forMaterial Planning
ASCP
Long range
network
planning
Demantra
Demand Planning
ER
P1
AP
CC
Fore
cast
VC
P D
ata
Colle
ction
Pro
du
ctio
n S
ch
ed
ulin
g
Sh
ort
ra
ng
e s
ch
ed
ulin
g
Oracle VCP 12.2.5
ER
P2
ER
P X
Excel
Excel
Excel
MD
M
Master data
Transactional
data
New work orders
New purchase orders
Work orders
Work orders -
rescheduled
© 2017 PROMATIS AG13
The VCP Suite of productsCore Products, Production Scheduling (PS)
Why Production Scheduling and not ASCP?
ASCP:
Constraint-based ASCP plan would do scheduling and enable Gantt chart in the workbench
Not possible to make the changes on the fly
Difficult to perform “What-if” analysis
Rudimentary - not an option for companies with extensive scheduling requirements
PS:
Flexible, intuitive and easy to use
Advanced analytical views
Embedded KPIs to determine the best schedule
Alerts with root cause, Fast and easy simulation
June 20, 2017
© 2017 PROMATIS AG14
The VCP Suite of productsCore Products, Production Scheduling (PS)
ASCP Production Scheduling
Create New Supply Orders Schedule the supply orders that have already been created
Create a supply chain plan for a network of plants, warehouses, suppliers and customers in the supply chain
Create a production schedule for a single manufacturing facility
Plan a mid to long term horizon e.g. 6 months to 1 year
Schedule the short term horizon e.g. 2 - 8 weeks
Model aggregate level production constraints Model very detailed production constraints
Make decision on procurement - Create new purchase orders
Consider existing purchase orders as a source of supply. No new purchasing decisions taken
June 20, 2017
© 2017 PROMATIS AG15
The VCP Suite of productsCore Products, ASCP/PS Integration Sample
Run the ASCP plan.
No new orders in PTF in ASCP
Existing work orders treated as firm.
Release new orders from ASCP plan.
Run Production Scheduling.Extracts the latest data from ERP/ASCP
Work orders within the planning timefence. Not firm in PS unless firmed
New work orders released/ASCP
Planned orders from ASCP that exist within the scheduling horizonspecified for PS schedule
Run various scenarios in Production Scheduling, approve and schedule/reschedule to ERP systems
Work Orders (re-schedules)
New Work Orders1.Work Orders
Release Time Window
Scheduling Horizon
Planning Time Fence
Planning Horizon
Firm Orders 2.Release Orders
3.Planned OrdersERP
ASCP
Production Scheduling
June 20, 2017
© 2017 PROMATIS AG16
The VCP Suite of productsCore Products, PS Views, Sample Resource-Utilization Gantt
June 20, 2017
Combined view of resource utilization tosee scheduling of operations and resourceutilization
Display various buckets and switchbetween different bucket types
© 2017 PROMATIS AG17
The VCP Suite of productsCore Products, PS Views, Scenario Comparison View
June 20, 2017
PS provides a powerful ability to directly and easily compare different schedule scenarios.
Within one session, the planner can make an un-limited number of scenarios and compare them using the Key Performance Indicators view.
© 2017 PROMATIS AG18
Summary VCP Issues if multiple ERP‘s are targetedIssues to Review
ERP or VCP setup
Region specific differences
to consider
• Various functionality may be maintained either in ERP or in VCP
• Samples: Sourcing rules, lead time setup (ASCP / ERP), sequence dependency
• Sample: region specific UOM (Pound / LB / KG / L) existing in parallel as base UOM,
ASCP cannot handle out of the box such cases
Maintenance of Setup
where in VCP (and Oracle
ERP’s involved)
• VCP is not consistent in the functionality (e.g. hard constraints, sequence dependency
for production operations, bottleneck resource groups, scheduling on primary resource
or primary / secondary resource)
June 20, 2017
© 2017 PROMATIS AG19
Customer SamplePre-Requisites, Base Situation
Chemical Industry
Process Manufacturing in some plants (recipe, routing, formula), while in others routing and bill of material implemented
Heterogeneous ERP environments, no common Master Data Maintenance established
Ongoing ERP implementation in one global region while strategic decision for Oracle’s VCP taken in parallel (core: APCC, PS, ASCP, Demantra)
Requirement for Tank Management
Strong Toller business (outside processing over multiple regional chains), mostly for packaging
Strong Make to Forecast model for markets by mostly regional production plants
June 20, 2017
© 2017 PROMATIS AG20
Customer SamplePre-Requisites, ASCP/PS Approach
NALATAM EMEA ANZ
Mark
ets
Pla
nts
Plant LAUS North
South
France
CH
UK
NZ Plant
CLMX..
ARBR
US
CA
FRUK
DE..ES
IT
AU NZ
Australia
Level 1 – One global ASCP distribution plan for key top products
Level 2 – Regional level ASCP plans (combined market and production plan)
Level 3 – Plant level production scheduling for selective sites
June 20, 2017
© 2017 PROMATIS AG21
Customer SampleImplementation Guiding Principles
Start simple and grow the complexity after establishing the foundation, based on maturity and business need. Data, processes, people & system all need to work successfully.
Implement a simple common ASCP model first (no constraints, basic features).
Keep complexities to scheduling. Scheduling will be implemented after successful use of ASCP (tollgate approach), based on complexity of the site and the expected benefit.
Keep variance between plans in ASCP to a minimum to support quick deployment, knowledge sharing and sustainable support effort.
June 20, 2017
© 2017 PROMATIS AG22
Customer SampleChallenges and Solution Approach
Planning and ConsumptionFormulas
Problem:
routing, recipe, formula (BOM, routing) in most involved ERP systems not following the planning logic (not multi-level recipe stages), most formulas are used in
most cases only to build the consumption logic
Solution:
Align formula intermediates with planning logic for getting proper planning results
Maintenance of Data
Problem:
Multiple ways to maintain master data (sourcing, constraints, sequence dependency).
Solution:
Maintain data wherever possible directly in ERP, provide global template approach, rollout the solution to the different regions, in case of limitations in ERP use
the PS/ASCP module
Tank Management
Problem:
VCP (ASCP, PS) does not support tank management (resource/storage at the same time, tank capacity/tank selection)
Solution:
Set up of constraints for visibility, hard links between operations, repetitive throughput per hour, max inventory level per item and further
Limitations in VCP for UOM Issue
Problem:
ASCP can only handle one common base uom at a time
Solution:
Customization
June 20, 2017
PROMATIS AGThurgauer Str. 408050 Zurich
Tel. +41 44 214 63 00Fax +41 44 214 62 99
Email:Web: www.promatis.ch
© 2017 PROMATIS AG23 June 20, 2017
Contact
Henrik SobolewskiPrincipal Consultant und Projektleiter