Oracle Value Chain Planning

Integration globaler Supply Chain-

Prozesse in heterogenen ERP-
Landschaften

Henrik Sobolewski
PROMATIS AG, Switzerland
Hamburg, 20. Juni 2017
 Agenda

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

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 Generic Constraints to consider for SCM integration
Non integrated ERP, multiple regions and ERP to cover

Area Problem to consider

Target Area Regional Planning, global planning, both?

Maturity of the involved systems, status of ongoing

Status of the involved ERP systems projects, can the ERP combine properly with the VCP-
Suite?

Value Chain Modules required Selection of modules from (Oracle`s) VCP-Suite

Master Data, routing, formulas, does it fit into

Do the ERP systems follow a common approach
planning model, does everybody follow the same
(MDM)
approach?

Planning Approach Unconstrained Planning, constrained, which design?

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 The VCP Suite of products
Overview

Product range selection based on

Supply Chain Intelligence (APCC)
requirement and approach
Implementation must review: Demand Planning / Demantra

(Detail to Summary)
Planning level
- the detail level Inventory Optimization
- the network to consider (subset, whole
supply network) Advanced Supply Chain Planning (ASCP)
- specific requirements e.g.
Rapid Planning
tolling, production or markets
Production
Review of short to long range planning Scheduling (PS)

Structure to cover (MRP, distribution Order Promising

between sites in the supply chain
Collaborative Planning
network, DRP)
Minutes Hours/Days Weeks/Months Quarters Years
Time

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 The VCP Suite of products
Core Products to review

ASCP as the core backbone module to

Supply Chain Intelligence (APCC)
integrate different ERP (multi-user, multiple
sites) Demand Planning / Demantra

(Detail to Summary)
Production Scheduling (single site usage,

Planning level
Inventory Optimization
typically production site)
Advanced Supply Chain Planning (ASCP)
Supply Chain Intelligence (APCC), Business
Intelligence tool to cover handling, analysis Rapid Planning
and evaluation of plan results
Production
Other tools to cover specific requirements Scheduling (PS)

Order Promising

Collaborative Planning

Minutes Hours/Days Weeks/Months Quarters Years

Time

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 The VCP Suite of products
Core Products, ASCP Key Questions

ASCP Key Questions: Oracle VCP 12.2.5

Excel
Excel
Long or short term planning?

Excel
Demantra
Constrained or unconstrained? Demand planning

VCP Data Collection

Multiple plans to cover specific

Forecast
needs or single plan eg. global

ERP X

Short range scheduling

Production Scheduling
distribution plan and regional Master data
Transactional
level ASCP plans?

APCC
data

Common model across all ASCP

sites? ERP2 Long range
Work orders network

MDM
planning
Work orders -
ERP1

rescheduled

New work orders

New purchase orders

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 The VCP Suite of products
Core 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
ERP1 ERP2 Excel Excel
planners in various sites

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 The VCP Suite of products
Core Products, Advanced Planning Command Center (APCC)
APCC is a VCP content-rich
Oracle VCP 12.2.5

Excel
Excel
Business Intelligence (BI) tool.

Excel
Excel
It is used for:

Excel
Excel
Demantra
Interface to do day to day
planning activities for different Demand planning

VCP Data Collection

types of users

Forecast
Reporting tool
Ad-hoc analysis tool

X
ERP X

Short range scheduling

Production Scheduling
ERP
Master data
KPIs tool Transactional

APCC
data
APCC has the main features
Pre-built VCP content world ASCP
ERP2
ERP2
of dimensions and measures
with pre-built aggregation of Long range
information Work orders network

MDM
Modern, appealing user interface Work orders -
planning
Flexible, can be changed to
ERP1

rescheduled
support changing needs.
History of planning for trend New work orders
New purchase orders
analysis

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 The VCP Suite of products
Core 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 enables
fast reconciliation of conflicting business
priorities.

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 The VCP Suite of products
Core Products, APCC, Samples II

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 The VCP Suite of products
Core Products, User Interface Comparison ASCP versus ACCP
Traditional ASCP New Supply Planning APCC
Workbench Work Area
Content richness ++ - +

Drill-to options ++ + +

Level of detail ++ ++ -

Aggregate information - + ++

Usability look and feel/, #clicks - ++ ++

Graphical presentations - - ++

Security ++ - ++

Trend analysis (keeps history) - - ++

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 The VCP Suite of products
Core Products, Production Scheduling (PS)

Options for integrated ASCP/PS Oracle VCP 12.2.5

Excel
Excel
Based on ASCP collected data

Excel
Demantra
(no ASCP Plan)
Demand Planning

VCP Data Collection

Collected ERP data perform

Forecast
schedule for work orders only
No forecast consumption

ERP X

Short range scheduling

Production Scheduling
Master data
PS is only a short term shop Transactional

APCC
data
floor scheduling application
Based on ASCP planned data ASCP
with plan reference ERP2 Long range
Work orders network
Schedule for work orders and
MDM
planning
planned orders Work orders -
ERP1

rescheduled
Firm planned orders flow
back flow back to ASCP for New work orders
New purchase orders
Material Planning

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 The VCP Suite of products
Core 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

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 The VCP Suite of products
Core 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, Create a production schedule for a single manufacturing
warehouses, suppliers and customers in the supply chain facility

Plan a mid to long term horizon Schedule the short term horizon
e.g. 6 months to 1 year e.g. 2 - 8 weeks

Model aggregate level production constraints Model very detailed production constraints

Make decision on procurement - Create new purchase Consider existing purchase orders as a source of supply. No
orders new purchasing decisions taken

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 The VCP Suite of products
Core Products, ASCP/PS Integration Sample
Run the ASCP plan.
Production Scheduling
No new orders in PTF in ASCP
Existing work orders treated as firm. Work Orders (re-schedules)
1.Work Orders New Work Orders
Release new orders from ASCP plan.
ERP 3.Planned Orders

Run Production Scheduling. Firm Orders 2.Release Orders

Extracts the latest data from ERP/ASCP

Work orders within the planning time
ASCP
fence. Not firm in PS unless firmed
Planning Time Fence
New work orders released/ASCP
Planned orders from ASCP that Release Time Window

exist within the scheduling horizon Scheduling Horizon

specified for PS schedule Planning Horizon

Run various scenarios in Production Scheduling, approve and schedule/reschedule to ERP systems
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 The VCP Suite of products
Core Products, PS Views, Sample Resource-Utilization Gantt

Combined view of resource utilization to

see scheduling of operations and resource
utilization
Display various buckets and switch
between different bucket types

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 The VCP Suite of products
Core Products, PS Views, Scenario Comparison View

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.

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 Summary VCP Issues if multiple ERPs are targeted
Issues to Review

Maintenance of Setup VCP is not consistent in the functionality (e.g. hard constraints, sequence dependency
where in VCP (and Oracle for production operations, bottleneck resource groups, scheduling on primary resource
ERPs involved) or primary / secondary resource)

Various functionality may be maintained either in ERP or in VCP

ERP or VCP setup Samples: Sourcing rules, lead time setup (ASCP / ERP), sequence dependency

Region specific differences Sample: region specific UOM (Pound / LB / KG / L) existing in parallel as base UOM,
to consider ASCP cannot handle out of the box such cases

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 Customer Sample
Pre-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 Oracles 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

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 Customer Sample
Pre-Requisites, ASCP/PS Approach
LATAM NA EMEA ANZ

Level 1 One global ASCP

Markets
distribution plan for key top CL
MX
US FR
.. UK AU NZ
products AR
BR CA
..
ES
DE
IT
Level 2 Regional level ASCP
plans (combined market and
production plan)
Level 3 Plant level
production scheduling for
selective sites NZ Plant
Plants

South CH
Plant LA
US North

France UK Australia

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 Customer Sample
Implementation 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.

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 Customer Sample
Challenges and Solution Approach

Problem:
VCP (ASCP, PS) does not support tank management (resource/storage at the same time, tank capacity/tank selection)
Tank Management Solution:
Set up of constraints for visibility, hard links between operations, repetitive throughput per hour, max inventory level per item and further

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
Planning and Consumption
most cases only to build the consumption logic
Formulas
Solution:
Align formula intermediates with planning logic for getting proper planning results

Problem:
Multiple ways to maintain master data (sourcing, constraints, sequence dependency).
Maintenance of Data 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

Problem:
ASCP can only handle one common base uom at a time
Limitations in VCP for UOM
Solution:
Issue
Customization

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 Contact

Henrik Sobolewski
Principal Consultant und Projektleiter

PROMATIS AG
Thurgauer Str. 40
8050 Zurich

Tel. +41 44 214 63 00

Fax +41 44 214 62 99

Email: henrik.sobolewski@promatis.ch
Web: www.promatis.ch

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