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Oracle Fusion Middleware Best Practice Adoption for Manufacturing

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Agenda
• Industry Overview • Key Priorities and best practices for Implementation
• • • • Real Time Inventory Management Operational Efficiency Process Streamlining Using BPM-SOA Enabling Business Transformation

• Oracle’s Industry Leadership • Why Oracle

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Agenda: Industry Overview

the valuation of a company will be strongly affected by how it executes change.Meeting Today’s Business Challenges • Costs • Pace of business • Innovation "In a time of accelerating turbulence." .

This theme will continue into the future as margin becomes a key measurable for business survival.MRD Industry Business Challenges COST CONTAINMENT … Businesses are constantly looking at how to reduce costs by removing redundancies through consolidation and business efficiency strategies INNOVATION Businesses are under pressure to bring new products. businesses are being measured on the value and authenticity of their intellectual property . COMPLIANCE AND SECURITY …Compliance with new regulations will become the prerequisite of doing business. Added to that. services and delivery methods to market to maintain their premium business and drive customer service EFFICIENCY Removing inefficient processes has been a key driver for CIO’s since 2005.

complex point-point integrations. PC. and run on aging expensive hardware COMPLEX APPLICATIONS ENVIRONMENTS …Years of custom development and decentralized solutions development has led to complex application environments with multiple data sources.MRD Industry IT Challenges DEPENDANCE ON LEGACY SYSTEMS … Critical business processes (manufacturing. costly to maintain. flight operations. retail applications) depend on legacy systems that are hard to modify. and several point solutions with poor documentation and support AGING FRAGILE INFRASTRUCTURE …Strong focus on costs and low investments have left businesses with aging server. and network infrastructure making it difficult to support 24*7 operations across multiple continents SHRINKING IT BUDGETS …Shrinking IT budgets leave little room for new investments in platforms although airlines need to replace and improve their aging applications and IT infrastructure .

pervasive networks. Inc. Manufacturing architectures that capitalize on existing investments by using manufacturing SOA instead of ripping and replacing them with monolithic applications.0 and Enterprise 2. intelligent sensors. search. and software maintenance. reconfiguration. This will engage younger generations in manufacturing as well as enhance software usability and collaboration. | . Convergence of product data management and process development models for rapid development of new products and manufacturing processes to accelerate time to market. tagging.0 Characteristics User-centric interfaces that not only streamline activities.and inter-enterprise) platforms.0 technologies and constructs such as blogs. mashups. always-connected mobile devices. Event-driven. and mobile workers. Support for low-cost tags.Emerging Manufacturing 2. and cool. © 2007 AMR Research. Incorporation of Web 2. but take advantage of available shop-floor talent for deployment. wikis. instant messaging. supply network collaboration (intra.

0 .Demand Driven Manufacturing 2.

<Insert Picture Here> Agenda: Key Priorities and best practices for Implementation .

Key Priorities for Manufacturing Controlling Inventory and Monitoring Real Time Status Measuring Operational Efficiency Lower IT Costs. Integrate Business processes and Drive business innovation Enable business transformation “Oracle Provides Solutions and Best Practices to meet the above priorities for manufacturers” .

<Insert Picture Here> Best Practice Adoption For Manufacturing – “Real Time Inventory Visibility” .

compounded by demanding customers. US Dept. of Commerce. expanding product lines.2005 Large US Manufacturers carry inventory worth of $830B.Inventory management for Manufacturers is a perennial challenge. but unable to improve service levels beyond 80% Sources: Annual State of Logistics Report. US Dept of Transportation. & longer supply chains Inventory Reduction: $250B Opportunity 100% 80% 60% 40% 20% 0% 2001 2002 2003 2004 2005 400 Inventory Value (Billion $) 350 300 250 200 150 100 50 Raw Material Work-In-Process Postponement Distribution Average Order Fill rates: Large US Manufacturers Inventory Levels by type (US Manufacturing sector . June 2005. Council of Supply Chain Management Professionals. 13 .

the most effective measure of Supply Chain performance – Increase inventory planning accuracy & tighten inventory control – Develop deep supply chain visibility that leverages views into partner planning and execution. and real time data access * Source: AMR Research 14 . The Oracle Response: – Focus on inventory. complex event correlation.The typical manufacturer carries 20-25% more inventory in their supply chain than necessary to satisfy demand effectively The Issue is widespread: – Affects over 65% of large manufacturers – Inventory charges dominant cost structure component – Root Cause: Outdated systems and processes for inventory visibility and supply chain control.

modeling.Inventory Visibility and Control is a comprehensive solution Technology and methodology for rapid development of deep supply chain visibility: • Real time access capturing inventory data at a ‘microscopic’ level of detail • Incorporates sensory network data including inputs generated by EDI / Bar Codes & other devices • Views into partner planning and execution • Complex event correlation transforms data into information Reporting and decision support for root cause analysis. and simulation Event Processing and BI platform for aggregating and analyzing supply chain data Deep Visibility BPEL Process manager OEM MDM tool KPI Monitoring Contract Manufacturer A Contract Manufacturer B Contract Manufacturer C Distributor Optimized Results 3 P/L Component MFG CMs Sensors Analytics Escalation BAM Data Store Event Processing 3PL ESB OBIEE 15 .

Solution Landscape B2B Infrastructure (TIBCO) BPEL Manager Transportation Management AIA Infrastructure Collaborative Planning Oracle Applications Process Orchestration Rosetta Net Adapter Message Validation Customers Message Routing ASCP / Demantra Order Management Inventory Visibility AIA Infrastructure Error Management Oracle Applications Purchase Management Inventory Management 16 .

Pratt & Whitney Opportunities & Challenges • • • Better manage inventory on engine repair and overhaul Automate tracking of engine maintenance milestones Bridge engineering. support. manual effort and tracking Allow for real-time updates and comprehensive fleet-wide status tracking Results • • • • Better visibility into preventative repairs Reduced errors on tracking and manual input Cost avoidance savings – engine performance monitoring saves per event Allows for fleet-wide issue tracking – ID bad parts or processes holistically . operations and finance to ensure better customer support and satisfaction Solution Powered by Oracle • • • • Oracle Solution manages engine maintenance process worldwide 24/7 Allows for better preventative maintenance – avoiding higher-cost repairs Eliminates extensive paperwork.

Inventory Visibility Solution Customer Enters Request for Service Order Oracle BPM Automatically runs Process Tech reviews Job Ticket Customer Delighted Increased Cash Flow Job completion notification sent Work is performed Invoice Process begins .

<Insert Picture Here> Best Practice Adoption For Manufacturing – “Operational Efficiency” .

Alison Smith.What is Next-Generation Manufacturing Operations Architecture? Next-Generation Architecture ERP Abstraction Layer • Built on a common abstraction layer of production / equipment data • Leverage existing investments in plant IT infrastructure – no rip & replace • Allows for gradual upgrade of plant systems Mfg Operations Ctr Distributed Plant Systems Automation & Control “It is often more expedient to install an abstraction layer built on a plant-level data store than to reengineer the plethora of existing applications to achieve normalization. We see this approach rapidly emerging as a best practice. February 2008 20 .” -.

disconnected & disparate systems 21 . Exception Prone Environment Dominated by Older Legacy Systems Multiple Contract Mfgrs Homegrown / Factory Quality / SPC Maintenance / Service 3rd Party MES Automation Multiple Plants w/ Different Systems Multiple sources of truth Poor production performance visibility Knowledge not shared across resources Rigid.Operational Challenges Lack of Manufacturing Agility to Respond to Changing Corporate Relatively Stable Environment Planning and Schedule-Driven Standard Systems Customer Relationship Mgmt Supply Chain Management Enterprise Resource Planning Business Intelligence Point to Point connection Real-Time.

Oracle Manufacturing Operations Center Contextualize Plant Floor Data and Synchronize with ERP Provide Real-Time Intelligence for Plant Operations Leverage Next Generation Manufacturing Operations Architecture .

Solution Architecture SAP ERP (PP/PM) Corporate BI Production Confirmation SAP Adaptor Production Orders Role-Based Dashboards MES QMS Logistics Business Process Management Manufacturing Operations Data Model Contextualization Engine Business Activity Monitoring Manufacturing Shop Floor Communication Drivers Operations Center Scope Flat Products Tubes Division PLC CNC Machines DCS SCADA Advanced Human Systems Process Machine Control Interface Device-Generated Data 23 .

<Insert Picture Here> Best Practice Adoption For Manufacturing – “Process Streamlining Using BPM-SOA” .

Standardized Business Processes a Top Priority “State of the CIO 2008” survey 32% “IT’s Top Technology Priorities for 2008” Of companies with revenues over $1billion say standardizing and consolidating their IT infrastructure is a top technology priority—more than any other. .

IDRS. systems. SOA. E-mail. LDAP.What is the Problem? Organizational Units Customer Relationship Management Sales and Marketing Production Planning Manufacturin g Inventory & Logistics Finance & HR Processes Product Configuration Order Management Warranty & Returns Management CRM SFA Produc t SCM product ERP product DB MES LMS B2B Inv MGMT ERP Enterprise Infrastructure Services (Portal. EAI. IT Operations) Real-World Business Processes span organizations. and applications. .

simulates. executes. Manufacturing produc tinfo. and applications. EAI. LDAP. & optimizes those Business Processes. SOA. IT Operations) Real-World Business Processes span organizations. E-mail. IT Operations) Enterprise Infrastructure Services (Portal. E-mail. LDAP. SOA. Functions and People Organizational Units Customer Relationship Management Sales and Marketing Production Planning Manufacturing Inventory & Logistics Finance & HR Order Management Process Processes Product Configuration Order Management Warranty & Returns Management Customer Relationship Management Produc t produc t ERP produc t MES Sales and Marketing Production Planning produc t ERP. systems. BPM models.BPM Solution – Across Apps. monitors. . EAI. MES Inventory & Logistics Finance & HR CRM SFA SCM DB LMS B2B ERP CRM SFA Prodict SCM DB LMS B2B ERP Inv MGMT Inv MGMT Enterprise Infrastructure Services (Portal. manages.

information. and business policies Strategy Goals Policies Compliance Process Systems People Information 28 . systems.Business Process Management (BPM) BPM promotes operational excellence by bringing together people.

Business Process development simulation Model and systems integration and documentation Process Simulate execution andOptimize BPM management Lifecycle Business Owner Monitor Implement Deploy Execute Business User Interaction Enterprise applications And databases Process Participants Business dashboards and historical & trend analysis tools 29 .Process Life Cycle Management Continuous Process Innovation Business Process Analyst Developer Process modeling.

manage spare parts. • . • Make relationship profitability as primary growth • Customers are finding more options for suppliers.Process Centric Solutions Drive consistent customer interactions via Manufacturing integrated service channels • Optimally schedule resources. and deploy field personnel to reduce overall service costs • Uniform experience across channels by delivering consistent quality & service for improve efficiency • Channel Operational Efficiencies SOA enables a cost effective . competition and changing market conditions by responsive Business-IT alignment • Streamline operations and outsource portions of the company that are not a key capability. flexible and efficient IT foundation that promotes faster development and lower maintenance costs through reusable services Cheannel Operational Efficiencyl Sy Inventory Optimization Inventory Optimization • • Improve demand mgmt with consensus-based forecasts Reduce cycle time / waste and optimize inventory via single. holistic production plan New Product t Introduction Customer Centricity New Product Introduction SOA enables organizations to respond quickly to new customer requirements. Decreasing prices are a result of this globalization and increased competition. • Reduce time to market of new products & services • Improve retention through analytics & align products with customer needs Customer Centricity Personalization of products to fit their needs and are expecting faster deliveries of these product.

000 primary vendors Results • Increased turnaround.500 AP approvers in numerous time zones provide user support and handle exceptions for over 10. data accuracy and consistency. realized ROI of 300% over two years • Maximized cash flow and reduced personnel costs .BP Opportunities & Challenges • • • Automate and process accounts payable for over 30.000 non-recurring transactions 2. audit trails and quality assurance • Cost per transaction reduced by 80%.000 vendors Streamline the hodgepodge of invoicing systems and approval processes Solution Powered by Oracle BPM Suite • • • • Oracle BPM Suite is used to streamline client accounts payable interaction and approval process Automatically assigns invoice to appropriate approvers Enables approval notification e-mails to curb cost reductions Provides a self-service Web portal for 3.

BPM assigns invoice to one of over 2. forward. etc in the Work Portal After performing validation and business logic. sends email with a “1 click” approval button Exceptions are handled by 30 “super users” Aging reports are generated and accessible on demand via the Work Portal Approval notification emails are sent to the approver for where BPM approved the invoice without human intervention .000 Invoices are mailed.000 vendors have self service web portal access Approved invoices are posted to SAP for payment FileNET 1. faxed and sent via EDI to the Tulsa Processing Center each day BPM polls Oracle DB (FileNET representation) for new invoices Approver can email “1 click” approvals or change account info.Accounts Payable Approval Process • Modify Vendor Record Paper Invoices are routed for manual coding in FileNET • Conduct Payment Inquiry • Submit Electronic Invoice Up to 3.500 approvers and where appropriate.

<Insert Picture Here> Best Practice Adoption For Manufacturing – “Enabling Business Transformation” .

completeness and accuracy of enterprise data .0 technologies to enable employees to collaborate on-demand and build social networks Implement an insight-to-action closed loop management framework that seamlessly links real-time alerts to root causes.Enabling Business Transformation Business Priority Empower employees and improve employee productivity People Enhance internal and external collaboration Increase predictability of business results Process Enable integrated and adaptable business processes Data Harmonize data as a single version of the truth Business Imperative Deploy role-based cockpits to give employees all the information they need to do their jobs. workflowbased notifications and external news alerts Leverage web 2. predictive scenarios and corrective actions Build integrated processes to unlock the value of existing investments Implement a data harmonization strategy to ensure timeliness. including KPIs.

0 Collaboration Enterprise Performance Management/ Business Intelligence Business Process Management Master Data Management .Enabling Business Transformation Business Priority Empower employees and improve employee productivity People Enhance internal and external collaboration Increase predictability of business results Process Enable integrated and adaptable business processes Data Harmonize data as a single version of the truth Enablers Portals and Web 2.

Proactive Decision Support • Reduce IT costs 2 Prediction / Simulation • Enhance and accelerate decision-making 3 Collaboration / Best Practice Sharing • Improve re-use and knowledge-sharing .Example: Procter & Gamble 1 Visualized.

Example: Procter & Gamble STORYBOARD SUMMARY IDENTIFICATION INVESTIGATION SCENARIO PLANNING EXECUTION COMPLETION • Receive proactive notification • Visualize impact • Predict impact • Uncover root of alternate cause scenarios • Track project and process execution • Take action • Save work for future re-use .

4th 2006 by Pat Johnson Page 1 Prediction / Simulation Store myCockpit myBlackberry MyBriefcase What’s Ne w BRW 2.Example: Procter & Gamble SOLUTION ARCHITECTURE UI (Role-Based Cockpits) Business Intelligence Business Process Management Ale rt You have no alerts Menu myCo ckpit | Pag e 1 My Bo o kmarks Pampers Lithuania Value Share – Jan.Delphi Transactional Applications Middleware Database .xls) Updated: Jan.xls) Updated: Feb.8th 2006 by Jane Fonda Initiative Tracking Wallmart (.06 (.0 available PLIT update New s Press Reports New Product Pro file CEN Monthly Business Update (.doc) Updated: Feb.24rd 2006 by Jane Fonda NA MDO Cockpit .

<Insert Picture Here> Agenda: Oracle’s Industry Leadership .

Oracle in Manufacturing Oracle leads the way 9 of the top 10 global manufacturing conglomerates run Oracle applications 47 of the top 50 Electronic OEMs run Oracle Applications 60 of the top 80 Consumer Products Companies* run Oracle Applications 15 of the top 20 Food and Beverage Companies run Oracle Applications 9 of the top 10 oil field services companies run Oracle Applications (Reuters) .

Oracle Leadership in Manufacturing MATERIALS MINING OIL & GAS UPSTREAM CHEMICALS INDUSTRIAL MANUFACTURING AUTOMOTIVE SUPPLIER AGRICULTURE MILL PRODUCTS OIL & GAS DOWNSTREAM SEMICONDUCTORS AEROSPACE & DEFENSE PROCESS DISCRETE CONSUMER ELECTRONICS AUTOMOTIVE OEM FOOD & BEVERAGE CONSUMER PACKAGED GOODS CONSUMERS .

” -. we were lucky if we learned one month later how many tires of each type we had sold. We retrieve all sales information from the data warehouse the next day. right down to individual customers and product details.Rami Helminen. Financial Director .What Manufacturing Customers are Achieving… reduced inventory by 25% saved $5.3M in one year through improved efficiency improved business application user productivity by 10% Sammitr Motors reduced financial reporting time by 50% increased inventory turns via improved line sequencing “In the past. With Oracle the quality of information has reached a completely new level.

<Insert Picture Here> Agenda: Why Oracle .

Integrated.Oracle Fusion Middleware Complete. Hot-Pluggable. Best-of-Breed 44 .

Oracle Fusion Middleware The Leader in Middleware – Gartner Magic Quadrants • Enterprise Application Servers • Application Infrastructure • Application Infrastructure for Composite-Applications • Application Infrastructure for New Service-Oriented Business Application Projects • Application Infrastructure for Back End Application Integration Projects • User Provisioning • Web Access Management • Horizontal Portal Products • Enterprise Content Management • Corporate Performance Management Suites • Business Intelligence Platforms 45 .

Certified with Oracle’s Applications Industry Applications 46 .

com/middleware • Oracle Fusion Middleware on OTN .com/fusionmiddleware1 1g • Oracle Fusion Middleware on oracle.html • Manufacturing Services information: • http://www.For More Information Quote Attribution Title.html http://otn.com/technology/tech /soa/index.com/applications/sc m/manufacturing-operationscenter.oracle.oracle.html • Manufacturing Operation Center http://www.com/industries/index www.oracle. Company Get Started • Visit the Oracle Fusion Middleware 11g Resources • Technical information available at: web site at http://www.oracle.com/middleware © 2009 Oracle Corporation 47 .oracle.com http://www.oracle.

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