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Optimize Disposition Costs and Reduce cost of Product changes in your PLM
Satya RavadaGovinda Krishnan
January 21, 2009
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Agenda
Problem Definition Introducing ECO Lens - Goals and
Business Value ECO Lens Technical Overview Demo –Screen Shots ECOLens - Accolades Q&A
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Problem Definition
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The Problem Defined
ECOs created and released in PLM system ECOs implemented in ERP system Disconnect between Engineering and
Manufacturing
Create Change Order
Submit to Change Analyst
Route to CCB
Route to CCB
Route to CCB
ApproveRelease
Change OrderImplement
Change OrderImpact on BOM
ManufacturingAgile PLM
Impact on Demand
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Challenges of ECO Implementation
Lack of Visibility into impact of ECOs on manufacturing Cost of Material Disposition (Scrap, Rework etc) Supplier liability / cancellation costs
Collaboration challenges Distributed manufacturing across multiple sites Outsourced manufacturing with various subcontractors
Material Disposition Challenges Coordinating material disposition Benchmarking, analysis and optimization
Impact of ECOs Downward spike in demand of items Inventory may be hedged to high levels Open orders need to be cancelled Quantities at subcontractors need to be disposed
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Demand
Impact of ECOs
On-hand + On order
Qua
ntit
y
Demand
ECO Implementation
Demand
Use-up
Excess
ECO Implementation
Use-up
Excess
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On-hand + On order
Qua
ntit
y
ECO Implementation
Use-up
Excess
Impact of ECOs
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Introducing ECOLens – Goals and Business Values
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Goals
Minimize excess inventory & obsolescence cost Reduce ECO implementation cycle time Identify and mitigate risks associated with ECOs
and product transitions Facilitate faster analysis and effective decisions
by CCB
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ECO Lens
Assess ECOImpact
Create ECOImplementation
Scenarios
DetermineEffectivity
Date
ResolveConflicts
Generate Transition Plan
ECO Information
Inventory DataWIP DataPO DataMRP Data from ASCP/ MRP planning
Effectivity dateMaterial DispositionTransition Plan
1
2
Create ECO
SubmitTo Analyst
CCB
CCB
CCB
ApproveRelease
ECO
Agile Product Collaboration
Implement ECO
Adjust Mfg Plans
ERP
31
Business Process with ECO Lens
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Extract and make ECOs available for analysis Focus on specific ECO Lines (Affected Items)
Filter out ECOs with a specific Reason Code Filter out ECO Lines with a specific lifecycle phase such as
Prototype Filter out ECO lines releasing new items
Extract ERP Data Specific Item Attributes such as Standard Cost, Planner, Buyer etc. Inventory Data such as “On Hand” by Site/Warehouse Purchasing Data such as Open POs, PO details WIP Data such as open work orders MRP Data such as Planned Orders, Gross requirements etc. Where-used data
Business Process with ECO Lens
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Monitoring by ECO Lens
ECO updates, inside Agile, before release Status updates Addition/deletion of ECO Lines
Change in ECO Line status, inside Oracle, after release Specific ECO Line being implemented ECO being implemented
Significant change in Total Disposition Cost Change in Supply/Demand Scenario
Significant change in Effectivity date Any new ECO Conflict due to latest MRP run
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ECO Lens in a Nutshell
Highly configurable browser-based application Deploys without production downtime Pulls ECOs from Agile and Supply/Demand information from ERP
systems like Oracle Apps Ability to import supply/demand data retrieved from other ERP
systems or from subcontractors in text files Supports multiple organizations Creates default optimization scenarios Provision to create what-if scenarios and refine existing scenarios Manipulate material disposition at a granular level Considers the demand and supply for both MRP and ASCP
planning
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ECO Lens Technical Overview
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ECO Lens Architecture
Background Interface Process
Background Interface Process
ECO LensECO LensRepositoryRepository
AgileAgilePLMPLM
RepositoryRepository
OracleOracleERPERP
RepositoryRepository
ECO Lens Engine(Java)
ECO Lens GUI(JSP)
Cost Analysis
External Flat File import(Demand / Supply)
Scheduling import to ECO Lens
Fetching PLAN / WIP/ INV / PO / Cost
Pending ECOPending ECO
Release ECORelease ECO
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ECO Lens Supported Versions
Supported Versions Oracle Apps : 11.5.5, 11.5.10 or higher Agile PLM : 8.5, 9.0, 9.2.0,9.2.2.x Java : JDK 1.4.2 Web Server : Tomcat 5.0
Latest released version of ECO Lens ECO Lens for MRP 2.5 ECO Lens for ASCP 2.6
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Demo - Screen Shots
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ECO Details in Agile PLM
Invoke ECO Lens from Agile PLM
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ECO Details in ECO Lens
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View BOM Changes: Red lining by Item
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View BOM Changes: Red lining by Quantity
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Implementation options for generating scenarios in ECO Lens
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Supply details from ERP
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Rework cost can be given
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Implementation Scenarios at a glance: effectivity date vs cost
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System generated dispositions
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Ability to override suggested recommendation for each item
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Supply Data from ERP
Demand Data from ERP
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Reports for analyzing the disposition cost on daily/weekly/monthly basis
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Total Cost Impact
Cost Breakdown
Action Items for Buyers, Planners etc.
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Transfer ECO analysis back to Agile PLM
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Analysis summary ( Transition plan) to be
transferred to Agile PLM
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Agile PLM: Copy of Transition Plan attached
to the ECO
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Agile PLM: Selected scenario’s effectivity date automatically populated on the ECO Line
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ECOLens - Accolades
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Real value – Ask Market Experts
Oracle Partner Solution of the Year - 2004
Nasscom has recognized
ECO Lens under its
TOP 100 IT Innovators List
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Real Results – Ask Finisar
“ “ECO Lens recovered its cost many times over in terms of ECO Lens recovered its cost many times over in terms of reduced E&O inventory within the first few weeks after reduced E&O inventory within the first few weeks after deployment. The instant availability of the cost-impact of deployment. The instant availability of the cost-impact of ECOs is a priceless resource for both engineers and ECOs is a priceless resource for both engineers and materials personnel to gauge the feasibility of each ECO.” materials personnel to gauge the feasibility of each ECO.”
- Finisar Corporation- Finisar Corporation
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