Duane J HardacreDir. Supply Chain Strategy

& Corp. Systems

Finisar Corporation

“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

Advanced Planning ProductsBest Practice Supply Chain

Implementations

Agenda

• Introduction of Finisar and Finisar’s Supply Chain

• Our implementations

• Lesson’s learned

Finisar

Finisar

• Founded in 1988

• Headquartered in Sunnyvale, CA

• ~2900 employees world-wide

• Estimated 05 Revenue: $300 - $350 Million

• Cisco, Brocade, Emulex, HP, Dell

• 20th to 4th to 2nd in Optical pure play

• Technology leader

• Industry: Overcapacity and intense competition

Digital Fiber optics for Computer and Access Networks

1-2.5Gig SFP CWDM Mux/Demux

SANs/LANs/Metro MetroMetroSANs/LANs/Metro

10-Gig XFP CWDM/DWDM GBIC

Global, Vertically Integrated Supply Chain

Finisar HQ , Sales & R&D

Module / OSA Mfg

Wafer & OSA MfgPassives Mfg

• Build-to-Order, Buy-to-Forecast

• Standard “4” Commit Process

The Goal

• Reduce supply chain costs

• Automate the supply chain

• Superior Supply chain visibility, predictability, scalability,

flexibility and execution

• Evolve “Commit Process”

The Approach

• Smaller scoped projects, Aggressive time lines

• Win Quick, Win Often…..Evolve

• Crawl, Walk, Run

The Goal, The Approach

Virtual Enterprise

Daily Business Intelligence

Executive Dashboard (KPI)

Customer Relationship

ManagementCustomer segmentation and product/

service bundles for differentiation.

Supply Chain ExecutionNear real-time coordination with

suppliers, assemblers, logistics

providers for optimal inventory.

Real-time Order MgmntReal-time product configuration,

promising, and status.

Product Development -Real time product development collaboration

with suppliers, customers, and within the enterprise.

Demand / Supply

Planning and MatchingReal-time collaboration

with manufacturing and suppliers.

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B2C & B2B

Marketplaces

B2B

Marketplaces

RTOM

Demand

Collaboration

Supply

Collaboration

Design

Collaboration

MFG Mgmnt

Purchasing

Mgmnt

Distribution &

Inv Mgmnt

Service HUBsChannel HUBs

Standard

Channel

Sales

Internet

New

Channels

Suppliers

Logistics

Service

Providers

Direct

Fulfillment

Providers

Contract

MFG

Demand

PlanningSupply

Planning

Synchronized Inventory

Purchasing

Mgmnt

Manufacturing

Mgmnt

Distribution

Mgmnt

Inventory Mgmnt

Configure to

Order

Available /

Capable to

Promise

Order Tracking

and Tracing

Customer

Segment &

Service Level

Strategy

Campaign

Mgmnt

Co-Managed

Inventory

Product

Price

Service

Promotion

Placement

Co-

managed

Inventory.

Campaign

Mgmnt

Customer

Segment &

Service Level

Strategy

Product

Price

Service

Promotion

Placement

Configure

to Order

Available /

Capable to

Promise

Order

Tracking

and

Tracing

Supply

Collaboration

Set based design &

Transition Planning

Capacity Sourcing

Procurement

Transportation

Sourcing

IntegrationApplications Connectivity Platform Data Management

IT Infrastructure & Support ProcessesPlatforms Directory Network Security Databases Service Level Management

CAD, CAM,

CAPP, CAPE

Product Data

Management

Pgm. Planning

Optimization &

Collaboration

Component

Supply Mgmnt

Completed

Completed

Completed

Completed

Completed

Completed

2004 – Supplier Collaboration

iSupplier

&

Collaborative

Planning

Asia

Europe

USA

Asia/USA

Suppliers Finisar

2005

Quoting

(Pricing)

Channel / Dist.

ManagementASCP

Sales

Forecasting

Web-Based

GOP

(ATP)

Finisar Supply Chain

Oracle 5.10

Daily Business Intelligence• Purchasing & Commodity Mgt

• Supply Chain & Operations

• Sales & Marketing

TM PRM

Timeline

Mar - 05

Demand Planner Group I

Jul Oct

LIVE!! Sept-16

Demand Planner Group 2 Oct-17

ASCPSept-26

World-Wide

GOP (ATP) Sept-26

Pilot Customers

GOPOct-30

All

DBI (Purchasing & Commodity Spend)

LIVE!! Sept-9

Demand Planner

Sales Forecasting – Current State

Topline

Hosted

Solution

Oracle ERP

• Evaluated Azerity “Pro-Channel”, SalesForce.com

• Integration + Support = $$$

Demand Planner- Main Forecasting

Worksheet

ABC Company

Demand Planner – Actuals by RSM

ABC Company

ABC Company

ABC Company

John Smith

John Smith

Demand Planner – Actuals by Product Family

Demand Planner – ASP by Product Family

• Who are you designing the tool for?

• Get sales involved early & own the project

• Establish Corp. product grouping (families)

• Identify key worksheet layouts & reports

• Hierarchy design

• Performance trade-offs

• Special Thanks to Oracle Development

• 5.10 Architecture – No Express Server

Demand Planner – Lessons Learned

ASCP & GOP (ATP)

ASCP & ATP - Today’s Process

RSM

Inside Sales

3rd party Rep.

• Planning• Purchasing• Inventory

Production

“The Answer”

When?

How much?

Customers

The Virtual Way

RSM

Inside Sales

3rd party Rep.

When?

How much?

Customers

ATP Engine Generates the Commit Real Time!!!

• Key Component Availability

• Work Order Completion Date

• Available Inventory

• Planned Order Completion Date

• Lead-times

Let the world look into the factory!!!

• Planning• Purchasing• Inventory

Production

Multi-Org MPS

Today’s Architecture

Sales Forecast

Ipoh Production

Plan (Oracle Forecast)

SNY Production

Plan (Oracle Forecast)

SNY MDSIpoh MDS

Ipoh SNY

Multi-Org MRP

Ipoh SNY

Sourcing

Sourcing

Graphical Pegging

From Supply to Demand

Sales Orders

Consume

Forecast

WIP

Purchasing

Planned

Orders

Planned

Orders

AOC Production

Plan (Oracle Forecast)

AOC MDS

AOC Sourcing

AOC Sourcing

Top-Line Forecasting Tool

ASCP Plan

Overall Demand Planner & ASCP Model

Ipoh SNYSourcing

Advanced Graphical Pegging

From Supply to Demand

WIP Purchasing

Planned

Orders

AOC Sourcing

Demand

Planner

Sales Forecasting

Cycle

Loads Material

Family Forecast

Planned

Orders

Supplier Collaboration

Nice ASCP & GOP Features

• Horizontal Plan

• Product Family / Members

• Preferences

• Drill Through

• Multiple Time Buckets

• View Multiple items / Copy

• Forecast Consumptions

• Product Family Consumption

• Plan / View Substitutes

• “Related Exceptions”

• Pegging Layout, Speed

• Latest Acceptable Date

Cautions

• ATP inquiry – not for sales

• ATP reschedules (“pull-ins”) & date checks

• ATP forward & backward scheduling

• Substitutes & partials

• Execute substitute recommendations (WIP)

• WIP loops

• DATA, DATA, DATA

• Establish architecture upfront

• Understanding

Profile Options

ODS & PDS (ATP)

Override – (ATP)

Plan Options

• ECC vs EDD (Material Constrained Plan - sorry no capacity)

• Pegging (Demand Priority & FIFO)

• Plan Buckets – (Impact on LT & Reschedules)

• Plan Items (Demand & Supply Items, Demand/WIP Components..etc)

Summary Lessons Learned

• Configure 80% POC design

• Validate, assess business impact, adjust

• Documentation

• Choose the right consultants

• APS Solutions (Raghu Manjunath)

• Solutions Partners (Jim Hardman)

• USJade (Sanjay Agrawal)

• Keep it simple

END

Summary Lessons Learned

Overview Available-to-Promise Order Fullfilment R

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Pla

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Ins

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Sa

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No

Planner

Reviews

Exceptions

ATP Inquiry/

Response to

Customer

#2 Book a Sales Order (with and without Ship Set)

Book Partial

Sales Order

Accepts

ATP Date

Planner Adjust

Supply & Resolves

Exception

Can Resolve

Exception &

Meet SSD

Accepts

New ATP

Date

#1 ATP Inquiry

Override ATP

& Manually

Enter SSD

#6 Cancel a Sales Order Line

Book Order

(w/ Ship Set)

#9 Cancel Line of Ship Set on a Booked Order

#8 Add Line to Ship Set on a Booked Order

#10 Book a Partial Sales Order

#1 ATP Inquiry

ATP Inquiry /

Enter Order

with Customer

Request Date

(CRD)

Cancels Sales

Orders/Order

Lines

Customer

Cancels Order or

Order Lines

#3 Overriding Schedule Ship Date

Changes

Orders/Order

Lines

(w/ Ship Set)

#5 Change Orders with Ship Set

Communicates

with Inside Sales

#7 Cancel a Sales Order

Customer

Request

Changes to

Order

(w/ Ship Set)

#4 Change Orders without Ship Set

Email

Notification

Email

Notification

Sends

PO with

Request

Date

Yes

ATP Can

Meet CRD

Yes

No

Inquires

about Item

Availability

No

Yes

No

Yes