Process Manufacturing Development Update

Russ Bayles, EBS Manufacturing Product Strategy Manager

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.

Agenda
OPM Development Update
R&D Investments Future Direction

MOC

Continued Investment for Process Industries

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Oracle Process Mfg (OPM) Release 11 Oracle Technology

Release OPM 11i ASCP* Order Mgmt

New Recipes

Prod Data Mgmt

PIM*

Demand Planner Deduction Mgmt Promo Fund Global Mgmt ATP Trade Mgmt Maintenance Mgmt

Datalogix Acquisition

Advanced Pricing

* ASCP = Advanced Supply Chain Planning * PIM = Product Information Management

POS High Integration Volume LCM for Order 1SYNC Process Mfg. Processing Cert Customer Sales Data Contracts Mgmt Demantra MES for Acquisition Process Mfg. UCC Net GDSN G-Log Agile Acquisition Acquisition RFID Transactions Siebel Psft/JDE Acquisition Acquisition

MOC for Process Mfg.

2008 Oracle Corporation Proprietary and Confidential

R12: Update

OPM R12 Customer update

Live OPM 53 New Installs 48 Upgrades 5 3 migration 2 re-install

Current R12 Implementations: R12 in progress - 14 Upgrading - 9

Summary of OPM R12 Features

Common Inventory
Dual unit of measure control Advanced lot control Material status Enhanced inventory allocation rules Migration Scripts Views for historical data

Process Quality
Enhanced receiving inspections Corrective action request and processing

Process Execution
Item Revisions Reservations Move orders More MSCA transactions Dispatch List

Process Product Development

S88 Compliant Org Structure Item Revisions Least Cost Formulation Ingredient Substitutions

MES for Process Manufacturing

Batch Journal/Electronic Batch Records Dispensing and Pre-weigh Label Management Deviation Management Improved UI/ Processing instructions

Regulatory Integration to Third Parties

Resource Dispatch Report

Post - R12: Update

Summary of OPM 12.0 RUP Features

MES for Process Manufacturing Touch Screen Dispensing Supervisor Workbench (Dispense Planning) Process Execution LPN Support in Desktop Forms Fixed Process Loss Regulatory Extended Regulatory Data Support Process Quality LPN Support in Desktop Forms Common Inventory Intercompany Shipping Flows for Process

Touch Screen Dispensing

Single screen, step by step processing, reducing processing time and risk R12.0 - RUP
Touch Screen design Bold Graphics to view status across room Process guides operators through work instruction view, progress reporting, and material consumption tracking Integration to Scales and other devices Check in check out locks operation Electronic Signatures Quality data collection and lot data capture for genealogy

Complete Process Support for Work Instruction Display, Dispensing, Batch Progress Tracking, and Ingredient Consumption Reporting

Supervisor Workbench (Dispense Planning) Graphical Mode

R12.0 - RUP

Display Bucket (Daily / weekly)

Dispense Planning details at Area/booth, Resource, Storage Area

Dispense Capacity Plan Vs Actual

LPN Support in OPM Desktop Forms

Streamline operator actions through online support of container management
R12.0 - RUP

LPN Support added for Item Reservations for Process organizations LPN Support added to Select Available Inventory LPN Support in the Batch Material Transactions form LPN Support added for Item Samples, LPN Support added to all of the Sample Group related forms Support of Delayed LPN Entry added for Quality Samples, independent of Delayed Lot Entry.

13

Fixed Process Loss

Adjust batch quantities to account for material loss due to changeovers R12.0 - RUP
Fixed Process Loss represents the production loss quantity that is fixed irrespective of the quantity of product being produced or ingredient being consumed. For example, residual material left in pipelines during production changeovers. Fixed Process Loss can be defined in Routing Class, Routing, Recipe and Recipe validity Rules levels, with the default values coming from the level above, similar to Variable Process Loss. The Fixed Process Loss is applied after calculating the variable loss and it is added to the ingredient quantity or reduced from the product quantity.

14

Extended Regulatory Data Support

Provides the ability to define, import and store user-defined Regulatory data values R12.0 - RUP
Users can create new field names, field name classes, and field name properties and then enter organization specific values for the new field name properties against a Regulatory item. Users can associate text based risk and safety phrases to organization specific Regulatory items. Users can maintain property values in multiple languages without the installation of the languages in the application . Users have the ability to create new field names, field name classes, field name properties, risk phrases and safety phrases through the use of APIs.

15

Intercompany Shipping Flows for Process

Simplified Financial processing through automatic creation of Invoices R12.0 - RUP
Users can identify the chain of operating units and associated inventory organizations involved in the costing, transfer of liability, and revenue so intercompany invoices can be automatically created when material is shipped from source to destination. Users can define logical transactions that may differ and be independent from the physical flow of goods Users can define different accounts for Trade and Intercompany COGS and Sales Revenue to eliminate intercompany profits Users can leverage Advanced Pricing to define which rules, based on price list, are used to derive the invoice price for an item.

16

R12.1: Update

Summary of OPM 12.1 Features

Process Execution Make to Order Multi-Batch Actions Process Financials/Costing Costed IBOM Report Regulatory Regulatory Partner Certification Process Planning OPM Batchable Resources Common Inventory Lot Genealogy Enhancement On-Hand Material Status

Make to Order - Process Manufacturing

Reduce Lead Time by Linking Supply and Demand Directly
Create a FPO/Batch from Sales Order Rules based Order creation Automatic reservation of supply to demand Workflow based messaging to production

R12.1

Group Multiple Batches for Mass Actions

Increased productivity for batch flow transactions
R12.1
Grouping multiple batches for a user selected criteria Simple and user friendly window to perform select action on a group of batches Mass transact batches for all Batch actions Release, Complete, Close, Un-Release, Re-Open, Revert to WIP, Auto Detail

Check off batches

Select Action Execute Change

Costed Indented Bill of Materials Report

Provides sound basis for performance management, control by exception reporting and establishing product margins R12.1

Robust cost reporting capability with drill-down to costing data from summary to cost component and item level details with multiple views Granular view of the costs, enables management to control costs and measure efficiencies

OPM Batchable Resource

Increase efficiency of resource usage
Define OPM Plant Resource as Batchable Batchable Resource in ASCP and Production Scheduling Plan & Schedule multiple batches together in a resource User defined attribute values, temperature, color, duration Min/Max spot capacity Pull forward window R12.1

Lot Genealogy Enhancement

Faster access to information through improved form navigation R12.1
Refresh Genealogy Tree with a different top level node, no longer needing to go back to the query window Expanded levels of detail in the Navigator Window

On-hand Material Status

Streamlines material handling, supports separation of material handling and quality control roles
On hand status
Loc: RECV

R12.1

Lot A: QCHOLD

Lot B: QCHOLD Loc: MFG-STAGE

Allows strict separation of responsibility between material transfer and status update, with material movement maintaining current status Allows multiple statuses for a lot in different locators AND multiple statuses for different lots in the same locator Track and update status of material at the on-hand level (e.g. item/subinventory/locator/lot combination) Track material status for the contents of a LPN

Lot A: USEATRISK

Lot C: ACTIVE

R12.1.2 Update

Summary of OPM 12.1.2 Features

User Interface Improvements Landed Cost Management Integration

User interface improvements

Redesigned Home Page Navigator and Favorites Links added to global header Look-ahead LOV enhanced to become suggestive
Inline list appears after user types in 1 or more characters and pauses Up to 200 rows are shown at a time with scrolling Inline list can be further filtered on typing more characters

InlineText Attachments

Oracles Landed Cost Management

Oracles Landed Cost Management application is a new product released on EBS r.12.1. Oracle Landed Cost Management captures extended supply chain costs (freight, insurance, duties, taxes, etc.) and attributes them back to the products which incurred them Costs can be estimated during PO creation and receiving Actual costs calculated when invoices arrive to identify variances Receiving estimates and any variances automatically update inventory valuation and accounting
Issue PO

China Manufacturing

Shipment to HK

Customer HK Port Vessel Carrier US Port Kansas City Buyer Duties $5

Broker Fees

$5

$100

$2

$3

$20

$3

$2

$140 Total Landed Cost

An additional 40% is added on to the purchase price

Landed Cost Functionality for OPM

Support of Landed cost for all receiving transactions
Receive Correction Return

Support LC adjustments
Actual Cost Process Lot Cost Process

Introduced new Profile GMF: Landed Cost Adjustments Transfer Method to Inventory In Actual Costing with
Apply whole LC Adjustment to Inventory Apply LC Adjustment based on the Period Opening Balance

Post LC Adjustment journal entries in OPM Accounting Pre-Process Introduced New event types:
LC Adjust Deliver, LC Adjust Receive, LC Adjust Expense Deliver LC Adjust Valuation

Future:

Future R&D Investment Considerations

Selected Key Initiatives Outsourced Manufacturing and Outside Processing PLM Integration A9 and PLM for Process Support for Lean Manufacturing Concepts independent of Flow Manufacturing Product
Make generic concepts available to other Mfg methods eKanban / Kanban Scheduling Lean Accounting

Analytics
Continued investment in MOC Manufacturing BI

More Mobile Supply Chain Apps for Process Industries

Now Recruiting R12 Customers for OPM CAB

Overview
Strategic

Oracle Pull

Average of 15-20 customers per CAB Management level of typical member: Manager/Director Number of meetings per year:
In person: 1-2 Virtual: 1-2

Customer Push Tactical

Managed by Oracles Product Management and Strategy Organizations

CAB Benefits
Benefits to Customers Direct influence on product designs and direction. Direct contact with product team. Inside track on future functionality and releases to help plan implementations better. Knowledge of industry best practices from participating companies.
Benefits to Oracle Development Direct customer feedback on product requirements and designs. Develop relationships for customer references. Feedback on competing solutions. Develop relationships for customer references. Customer quotes for marketing materials.

_ _

CAB Member Selection Criteria

Has licensed and implemented (or in the process of implementing) a current version of an Oracle Applications product or products. Must sign the Oracle Confidential Disclosure Agreement. Required to participate in both sales and marketing reference activities with Oracle. Has commitment and sponsorship of Customers executive management. Willing to travel at own expense to CAB meetings.

Q U E S T I O N S A N S W E R S