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Oracle Shop Floor Management Solution for Effective Supply Chain Integration

Leverage technology, integrate front and back office, and collaborate effectively for successful e-Business. Oracle's MES solution enables real-time data visibility, synchronized supply chain, and customer responsiveness.

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Oracle Shop Floor Management Solution for Effective Supply Chain Integration

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  1. John Conlin Principal Solutions Consultant Manufacturing & Supply Chain Applications Oracle Corporation E Mail : John.Conlin@Oracle.Com

  2. Keep it SIMPLE... • Leverage Technology • Front & Back Office Integration • Effective collaboration across business processes determines success or failure e-Business Starts on the Shop Floor

  3. batch batch Current Supply Chain Environment ATP CTP Not Synchronized Expensive Interface Management Loose Mfg. History & Genealogy Customer Demand Application Data Warehouse Planning ERP • Solution Weaknesses: • Customer requirements are secondary • Lack of synchronization between customer demand data & manufacturing supply data • Interface management obstacles • ERP is NOT integrated with MES • Batch interfacing susceptible to “old data” MES MES MES

  4. Oracle Shop Floor Management Solution Overview

  5. e-Business Platform Starts with...Well Managed Supply Chain (Visibility) • Architected for “plug-in” Capacity • Leverage Visibility into Customer Service • Evolve into Virtual Supply Chain • Conform to Expanded Standards • Fully Integrated Supply Chain Planning • Customer/Demand Focus...

  6. OSFM is a solution, initially developed for the Semiconductor Industry…. Major Semiconductor industry leaders are OSFM’s customers today! The solution is now being expanded across all industries

  7. Internet Oracle Integrated Supply Chain Solution Oracle ERP Sales SC Planning ATP Server Demand Planning Customer Product Innovation Management (PIM) Supply Chain Management (SCM) Customer Relationship Management (CRM) • Oracle Manufacturing Solution: • Customer responsiveness enabled through real-time data • Real-time global WIP, inventory visibility, planning • Multiple MES feeding data through OSFM to ERP • Instant access via Internet Oracle Shop Floor Management MES MES MES Supplier MES Internal MES

  8. Possible Networks C Comprehensive routing network • model your shop floor • define possible rework points • can be just linear E H A B D F G Primary Route C E H A B D F G Actual Route C C Actual route taken while in WIP • compare with primary route: • cost variances • dynamically built H E A E B B D F G Flexible Routing Definitions “Primary” route to define: • standard costs for an assembly • manufacturing lead times • used for planning

  9. Advanced WIP Transactions Split one lot to out to multiple lots Merge multiple lots into one lot Update Assemblyfor existing lot Update Routing lot to another lot for a different assembly Bonus in lots beginning at any operation sequence Update Quantity of an open lot at any operation sequence

  10. ... ... ? Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Customer Service Real-time Global Lot Status Oracle ShopFloor Management Flexible Routing Definition WIP Lot Moves All Lot Transactions are Mirrored in OSFM (Real-time) OSFM Lot Transactions

  11. . . . . . . . . . . . . Wafer Fab Probe Assembly & Test Finished Good Ship Product Supra 300 VS0548A/1/1/1 . . . VS0548A/1 VS0548A/1 VS0548A/1/1 VS0548A/1/1/2 Supra 300 VS0548A/1/1 VS0548A VS0548A/1 VS0548A/2 . . . VS0548A/1/2 VS0548A/1/1/3 VS0548B/1 Supra 300 VS0548B/1 VS0548B/1 VS0548A/1/2/1 VS0548B/1 . . . VS0548A/1/2 VS0548B VS0548B/2 VS0548B/2 VS0548B/3/1 VS0548A/1/2/2 Supra 300 VS0548B/3/2/1/1 VS0548B/3 VS0548B/3 VS0548B/3 VS0548B/3/2 VS0548B/3/2/1 . . . VS0548B/3/2/1/2 Supra 300 VS0548B/3/2/2 Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems VS0548/B/3/3/2 Customer Service Lot Tracing & RMA (Genealogy) Oracle ShopFloor Management Complete Lot Genealogy - All Operations are Captured - Trouble Shooting for Engineers - Parent Child Relations

  12. = $ X O Operational Yield 100% 90% 78% 85% Cumulative Yield 100% 90% 70% 60% Shrinkage at Each Operation 0% 10% 12% 15% Total Shrinkage 0% 10% 30% 40% Yield Cost $20 $120 $265 $850 vs $510 Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Cost Management Yielded Costing by Operation (Virtual Daily Close) Oracle ShopFloor Management Operation Yielded Costing Cumulative & Reverse Cumulative Yield at each Operation

  13. Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Real-Time Synchronized Supply DataValidated & Ready for Planning Oracle ShopFloor Management • As Manufacturing Transactions occur OSFM “readies” data for effective planning • Data is Cleaned & Validated Manufacturing Related Information Event Based Planning Paradigm

  14. Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Transaction Support Via Rosettanet / OAG Ability to link vendors using different software Oracle ShopFloor Management • Working on support for important WIP Txns • Rosettanet PIP 7B1 ( formerly 3D8) Manufacturing • Inbound as well as outbound XML Based Integrations

  15. Co-Product Definition A X ? B A B C X Common Bills Reference X A B C * primary Resulting Bills Inverted Bill (“Co-Products”)

  16. ExistingCustomers

  17. Partial List of OSFM Customers Highlights • 75+ customers • Replacing MES in Semiconductor Assembly & Test

  18. Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Manufacturing Execution Systems Real-Time Synchronized Supply DataValidated & Ready for Planning Oracle ShopFloor Management • As Manufacturing Transactions occur OSFM “readies” data for effective planning • Data is Cleaned & Validated Manufacturing Related Information Event Based Planning Paradigm

  19. Oracle Advanced Planning Moving from black and white to color: Why upgrade from MRP to Advanced Planning

  20. Key Capabilities • Sales and operations planning • Inventory postponement optimization • Holistic planning and optimization • Multi-tier collaborative planning • Zero downtime global order promising

  21. Where To Start?

  22. Oracle Applications (10.7, 11.0, 11i) From MRP … • Unconstrained material and resource planning • Basic forecasting • Basic available to promise • No collaboration No path forward MRP

  23. Unconstrained Oracle Applications (10.7, 11.0, 11i) APS Common Infrastructure Same effort to deploy as MRP – Reuse all existing setup! … to Unconstrained ASCP • Improve planner productivity • New productivity enhancing UI • Planner collaboration • Reduce your planning cycle time from months to hours • Holistic planning; incl. Multi-Org • Improved scalability and performance • Make better decisions faster • Improved exception resolution • Improved modeling • Reduce non-value added costs • Workflow based exceptions • Drive continuous improvement • Integrated business intelligence Foundation for future growth • Common Infrastructure ASCP MRP ASCP = Advanced Supply Chain Planning

  24. Make better decisions leveraging a more comprehensive model Unconstrained ASCP • Use a single plan to plan your entire supply chain to reduce planning cycle time • Simultaneous material and capacity planning • Plan process, discrete, mixed models, and lot-based • Perform forecast consumption inline • Plan at aggregate level, as well as detailed level in a single plan, with better accuracy • Time granularity in plan horizon • Account for operational yields • Leverage advanced problem solving and analysis tools • Comprehensive exception management and automation through workflow • Extensive pegging capabilities • Measure plan to target performance – S.C. Intelligence • Integrated performance management • Integration to Daily Business Intelligence (DBI) – Management Analysis

  25. Summary

  26. Customers Suppliers Tier 2 Tier 1 Production Plans Distribution Plans Manufacturing Plans Marketing Forecast Sales Forecast ? Mfg Forecast t = weeks Supply Planning Process Demand Planning Process Multi-step, high latency, limited collaboration Move from black and white …

  27. E-Business planning solution: zero latency, real-time collaboration … to Color: Oracle Advanced Planning Customers Suppliers Tier 2 Tier 1 Portal Portal Internet Automated Exceptions Marketing Manufacturing Sales Consensus forecast and prod. plan Single holistic plan Demand Hub & Multi-dimensional analysis Mfg S&OP Process Supply Planning Business Intelligence

  28. Low risk, high value transition to a better planning system Key Takeaways • Achieve significant value with a better planning system • Improve customer service up to 35% • Reduce inventory up to 50% • Improve forecast up to 35% • Reduce planning cycle time to hours • Progress at your own pace, transition gradually • Quickly start with unconstrained planning • Move up to constrained or optimized planning • Leverage out-of-the-box integration to rapidly extend planning footprint • Leverage your existing Oracle ERP and MRP investment • You’ve already done most of the work by setting up and maintaining the core business data elements

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