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What’s New in Advanced Supply Chain Planning – R12 and R12.1August 26, 2010Michael Barrette, Solution Consulting Manager, Value Chain Applications

AgendaWhat’s New

• R12.0 Enhancements• R12.1 Enhancements

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New R12 Features

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New R12 Features in ASCP

• New UI• Distribution planning • Fair Share Allocation• Item attribute simulation sets • Gantt chart enhancements • Lot Based Material Requirements• Actual Start Times• Sequence-dependent setups • Order queries

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A New User Experience for R12

• Reduced pop-ups and duplicate screens

• Re-designed and streamlined entire workflows

• Reduced the number of steps to complete key tasks

• Improved overall look & feel and visual style

• Increased personalization capabilities

ASCP Distribution Planning

• Determine optimal supply allocation from plants to distribution centers using:

• Fair share allocation• Inventory policy at multiple

levels (max, target, safety stock)

• Inventory rebalancing• Shipping method selection and

load consolidation• Global forecast -> local

allocation of supply across distribution network

• Automatically generate transfers• Create internal transfers • Create consolidated shipments• Integrated with Oracle

Transportation Management for carrier and mode selection

Supply

Demand

Multi-PlantPlanning

Demand

Distribute

DistributionPlanning

DC2

RDC2

DC1

RDC3

RDC4

RDC1

Supply

DemandMgt

Multi-PlantPlanning

Demand

Distribute

DistributionPlanning

DC2

RDC2

DC1

RDC3

RDC4

RDC1

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Fair Share AllocationEquitable partial demand satisfaction to key customers and sites

• Use fair share allocation to automatically allocate scarce supplies improving customer service levels

• Fair share allocation based on• Current demand ratio• Equal allocation %• Inventory policy (relative safety stock levels)

Without Fair Share

Priority 1 Demands Supply

120 at Customer 1 120 to Customer 1

100 at Customer 2

Current Demand Ratio Fair Share

Priority 1 Demands Supply

120 at Customer 1 65 to Customer 1

100 at Customer 2 55 to Customer 2

Example: available supply is 120

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Manage Distribution Plans Adjust Allocations to DCs and RDCs

Right click horizontal plan to open supply allocation details

Allocation details displays demands and allocated supplies for an allocation bucket

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Improved ASCP Gantt ChartsImprove Planner Productivity

• Highlight• Critical path• Late and early activities

• Link• Peg up, down, partial• Orders and related resource

activities• Primary and simultaneous

resources

• Manipulate• Drag and drop rescheduling• Offload

• Use all screen space• Single row for resource• Zoom

• Personalize• Filter, sort, color, label• Layout

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Gantt Chart Enhancements

Comparison between old and new Gantt chart

Only one view open at a time Two views open at a time

Activities on a resource shown one below the other

Activities on a resource shown on same horizontal line

Orders View always shows set of orders pegged top down

Ability to see orders independent of pegging

Pegging always shown from top to bottom

Ability to peg up or down from any level in the supply chain

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Item Attribute Simulation SetsImprove Planner Productivity

Enter criteria

Apply changes

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Lot Based Material Requirements

• Users can specify a component in a BOM to be of basis type “Lot”• “Lot” basis type signifies a fixed component usage• “Item” basis type signifies a component usage that scales

according to the quantity of finished goods produced • Planning (ASCP and GOP) as well as the execution system

(WIP and OSFM) will take the basis type into account when creating component requirements

• Component yield is honored

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Lot Based Material Requirements

• Examples of lot basis type modeling - • Fixed usage of components required in the assembly

• Components needed to stabilize the start of a process, destructive testing, customer samples, and so on

• Fixed usage of components not required in the assembly • Issue of test kits, jigs and fixtures, and indirect materials

(cleaning solution, containers), and so on

• Global Order Promising (GOP) promises orders based on the lot basis requirements, while performing Capable to Promise (CTP)

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Actual Start Time of Jobs

• WIP and OSFM capture the actual start and end times of activities • Job operators perform “Clock in / Clock out” or “Report my time”

transactions in WIP• Job operators in OSFM perform move in and move out transactions

• ASCP supports the actual start times as part of the planning process• The activity start times are firmed as the actual start time• Activities are scheduled forward from the firm start time, using the total

hours assigned to the activity• The completion time of the activity is projected based on the actual start

time

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Actual Start Time of Jobs Benefits

• Improve accuracy of the schedule output in ASCP by leveraging the actual start time information

• Improve stability of the planning process • Reduce the amount of reschedule in and out of activities

• Improve synchronization of information between planning and execution systems

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Sequence Dependent SetupsChangeover Matrix

• Calculation of sequence dependent setup times• ASCP calculates a changeover time on a resource, when the

resource completes an activity of a certain setup type and moves to an activity of a different setup type

• Creation of optimal sequences• ASCP makes key planning decisions on the correct

sequence of activities to be performed on a resource that minimizes the time lost to setups and maximizes on time demand satisfaction

• Trade-offs, Lateness Penalty

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Sequence Dependent Setups Example

• Sequence batches of alloy steels for a heat treatment furnace such that successive batches require minimal cleanup

HEAT TREAT FURNACE

Time

Steel Manganese Steel Stainless Steel

Cleanup

From To: Steel Manganese Steel Stainless Steel

Steel 0 2 6

Manganese Steel 10 0 4

Stainless Steel 10 10 0Changeover Times

(Hours)

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Sequence Dependent Setups

• ASCP calculates a Preferred Sequence• Preferred sequence is calculated based on the changeover

times specified• It represents a sequence of changeovers that allows the

resource to make each product at least once with minimal total changeover time

• If there are activities of different setup types in a daily, weekly or period time bucket, the changeover time calculated for that bucket will be consistent with the preferred sequence

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ASCP Order QueriesImproved Planner Productivity

• Find orders that require attention• Late demands to key customers• Unreleased purchase, make, or

transfer recommendations within lead time

• Act• Results shown in supply /

demand detail window• Edit and release right from there

• Personalize• Partition orders by planner• Different logic for production

planners, buyer-planners

Sub-Query

Criteria

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New R12.1 Features

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New Features in R12.1

• Oracle Transportation Management Integration• Day Level Planning Mode• Contiguous processing• Minimum remaining shelf life• End item substitution enhancements• Production schedules as inputs• Safety lead time• Customization of horizontal plan• Supply tolerance enhancements

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ASCP / OTM Integration

• Leverage Oracle Transportation Management (OTM) Supply Chain Event Management to obtain real-time, projected material arrival dates

• Generate planning exceptions to provide planners real time visibility to transportation delays

• Use the updated dates in ASCP interactive planning calculations to calculate the impact of transportation delays on downstream orders and take corrective action

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R12.1 “Day Level” Planning Mode

•A new "day-level" planning mode allows ASCP to generate planning results at the day level of granularity.

•When day-level planning is sufficient, this is a way to run plans in a shorter amount of time as the final detailed Scheduling phase is skipped.

•When needed you can run ASCP with Scheduling

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R12.1 Optimization Enhancements

ASCP Planning Modesa. Unconstrained • Planning Phase only

b. Constrained (Classic) • Planning Phase + Scheduling Phase

c. Constrained (Classic) with Decision Rules

• Optimization phase + planning phase + scheduling phase

• In this mode, the optimization phase considers only rankings of alternates (sources, BOMs/routings, resources, substitute components, end item substitutes) and not costs

d. Optimized (Classic) Optimization phase + planning phase + scheduling phase

In this mode, the optimization phase considers full relative cost data for all alternates

e. Constrained (Without Scheduling)

• Optimization Phase + Order Modifier Phase• Day level planning

f. Constrained (With Scheduling)

• Optimization Phase + Order Modifier Phase + Scheduling Phase

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Optimization EnhancementsProcess – View / Analyze ASCP Output

Gantt Chart AvailabilityUnconstrained No

Constrained (Classic)

Yes – No changes

Constrained (Classic) with Decision Rules

Yes – No changes

Optimized (Classic) Yes – No changes

Constrained (without Scheduling)

Yes – But no sub-day detail

Constrained (with Scheduling)

Yes – Same as Constrained (Classic)

Planning Mode

With R12.1, ASCP respects Oracle Process Manufacturing standard and maximum delays between routings. This allows you to cap the maximum time durations and enforce contiguous processing. You can also enforce a minimum (standard) delay in order to accurately reflect processing constraints such as cool-down periods.

Scheduling Contiguous Operations

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Scheduling Contiguous Operations

• Example: Injection molding process:• A mixture is heated with a liquid catalyst in a vat

• The mixture has only 5 minutes after reaching the proper temperature to be injected into the molds – This 5 minutes is the maximum delay (maximum time offset).

OP 30 – Routing AAct 1 Act 2 Act 3 Act 4

Min Time OffsetMax Time Offset

OP 20 – Routing BAct 1 Act 2 Act 3 Act 4

MTQX Y

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End Product Remaining Shelf LifeCustomer Specified

• The remaining shelf life of products sent to a customer site should be greater than or equal to the Minimum Remaining Shelf Life (MRSL) specified by the customer site with respect to the arrival date or ship date.

• The MRSL can be specified at the item-customer level as well as sales order level.

• The MRSL is measured in calendar days.

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End Product Remaining Shelf Life

• ASCP models end item substitution with respect to shelf life requirements. • ASCP chooses substitute supply that is not expired and the

remaining shelf life is greater than or equal to the MRSL.• ASCP may ignore the available supplies in the substitution

window to respect shelf life requirements.

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End Item Substitution

• Pass substitute item recommendation to Order Management• With a sales order release, ASCP passes the substitute item

in case of end-item substitution recommendation. This changes the item on the sales order line.

• This is in addition to releasing date, organization, and ship method changes

• Priority sequence for substitute item list is inferred from the “Effective Date From” attribute in the Item Relationships window

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End Item Substitution Business Value

• Automatic reflection of ASCP end item substitution recommendation in Oracle Order Management• Manual intervention is not needed to change the item on the

sales order line

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PS Sends Firm Planned Orders to ASCPIntegration

• This enhancement enables the planner to input a production schedule from PS as a source of firm planned orders to ASCP.

• The PS schedule published to ASCP includes planned orders that are beyond the shop floor release time fence. These are planned orders that are not released to the shop floor for execution, but are to be considered firm by ASCP when generating new plans.

ASCP

Planned OrdersPlanned Order DemandsSales OrdersForecasts

Production Scheduling

Firm Planned Orders

R12.1 ASCP Safety Lead Time

• Safety lead time is the amount of time that ASCP schedules supplies in advance of the corresponding demand due dates

• This results in an inventory buffer during the span of the safety lead time which can hedge against demand uncertainty

• Use of safety lead time is an alternative to planning to safety stock target levels

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Safety Lead Time Description

• The following table presents how supply is generated for an item with safety lead time of 2 days:

Item A Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10

Demand

1000 1000 1000 1000 1000

Supply 1000 1000 1000 1000 1000

BOH 1000 2000 1000 1000 1000 1000 2000 1000 0 0

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Safety Lead Time Business Value

• Better hedge against demand uncertainty• Fewer shortages• Fewer excesses

• Better on-time delivery

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Customization of Horizontal Plan

• Ability to add a custom row in Material Horizontal Plan• New Preference to enable/disable the user-defined row• Ability to label / re-name the user-defined row• Ability to populate to custom data into user-defined row

• Ability to pre-process data in existing rows in Horizontal Plan• User hook to invoke custom logic to modify data

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Customization of Horizontal Plan Business Value

• Visibility to Business specific measures• Enable easy, quick comparisons

• Enable display logic that is specific to each item• Display in different UOMs or display units

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• User-defined row shows up in the Item horizontal plan

• Updated data shows up in all the rows based on the custom logic defined by the user

Data Updated based on custom

logic

New user-defined

row

Customization of Horizontal Plan Process – Open Workbench and View Horizontal Plan

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Supply Shortage Tolerance

• When an existing supply is almost enough to fulfill a demand, don’t recommend producing or procuring extra supply

• Avoids spurious production and procurement• Supply shortage tolerance is expressed as item/org-

level user inputs• previously, only available as global-level user inputs

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Supply Shortage Tolerance Business Value

• Reduce excess inventory by avoiding excess production or procurement

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Supply Excess Tolerance

• When an existing supply is just a little larger than a demand quantity, allocate the entire supply to the demand and don’t allocate (peg) the small excess to another demand

• Creates cleaner planning output that is easier to understand

• Supply excess tolerance is expressed as item/org-level user inputs• previously, only available as global-level user inputs

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Supply Excess Tolerance Business Value

• Improve quality of plan output by ignoring negligible remaining supply quantities

Q & A