Leveraging Value Chain Planning Session ID:

(VCP) Product Capabilities Using 10231

‘Analytics’ For Better Productivity

Prepared by:
Michelle Moorhouse
Supply Chain Manager
• Role of Analytics in Value Chain Planning (VCP) Cummins Engines Plant, Darlington, UK

• Contribution to the Global Supply Chain Solution Ashish Bhatnagar

VCP – Solution Architect
• A Success Story - ‘Order Promising Case Study’ Aniket Dhamane (@Aniket_vd)
VCP – Sr. Business Analyst
KPIT Technologies Ltd.

Date: Thursday, April 26 2018

Remember to complete your evaluation for this session within the app!
Speakers

Ashish Bhatnagar Aniket Dhamane

Solution Architect Sr. Business Analyst
(VCP) (VCP)
KPIT Technologies Ltd. KPIT Technologies Ltd.

23 Years Experience in Industry 13 Years Experience in Industry

and Oracle Applications and Oracle Applications
Industry Focused End-to-End IT Business Process
that Drives Digital Innovation Across the Oracle Landscape

Presence in Europe Japan

People with passion London Tokyo
countries for Technology Paris South Korea
USA Munich Seoul
25 10,200+ Portland, OR
Detroit, MI
Frankfurt
Amsterdam
Middle East
Dubai
China
Shanghai
Iselin, NJ Stockholm
Santa Clara, CA India Singapore
Sacramento, CA Pune

7 Columbus, IN Mumbai

34 Development Richmond, VA
Houston, TX
Austin, TX
Noida
Bangalore
Hyderabad
Offices Centers South Africa Chennai Australia
Johannesburg Sydney

Consumer &
Automotive & Energy & Life
Industrial High Tech Utilities
Transportation Resources Sciences
Products

Advisory - ERP- Talent Management – Asset Management – Supply Chain – Infrastructure – Project Management - Reporting & Analytics Digital
Transformation – Business Transformations – M&A – Engineering – Managed Services – Mobility

Cloud JD Edwards E-Business Suite Master Data Management

Supply Chain Planning and Optimization Product Lifecycle Management Digital Transformation

3
4/
Agenda:
1 Cummins Engines Business Unit (EBU) at a Glance

2 EBU Value Chain Planning (VCP): Solution

3 EBU Supply Chain Planning Analytics: Overview

4 EBU Supply Chain Planning Analytics : Offerings

5 EBU Order Promising Solution and Case Study

6 Achievements and Business Value

Cummins EBU at a Glance
Cummins at a Glance:

2017 Revenues:
$20.5 billion
2017 Net Income:
$1.77 billion

Mode of Manufacturing: Build to order and Build to stocks

EBU: Supply Chain Planning Solution
EBU Supply Chain Planning Journey:
EBU ASCP Upgrade
 Planning Central – Oracle Cloud
2017  Version Upgrade – 12.2.6

2014
2013
2012

EBU ASCP & Planning Analytics

 4th EBU Plant go Live
 Constrained MPS plan
EBU ASCP  Operational Reports delivered through
Planning Analytics
& Planning Analytics  EBU ASCP Servers migrated to EXA-Data
 3RD EBU Plant Go live.
EBU ASCP  Planning Analytics went live
for US Plants
 2ND EBU Plant Go Live  1st Plant to use ATP/CTP.
EBU ASCP  APCC implementation
 1st ASCP Implementation
 Unconstrained Plans
EBU Supply Planning Data Flow :

Legacy Applications Oracle EBS Oracle ASCP Planning BI Analytics

• PLM(Mainframe), MES MPS and MRP : • Custom
• Oracle 11i, R12 Dashboards
• Production Sequencing • Constrained
• Oracle Global- • Operational
• Unconstrained
Order Management Reports

Push Plan Collections

Demand Planning - Legacy Oracle APCC

• I2 Demand Manager Dashboard: KPIs
• I2 Planning BOMs
 EBU: Supply Chain Plans
MPS
Plan
Features:
 Master Production Schedule
plans top level assemblies
using sales order demand
and resource constraints.
 The MPS plan is further
smoothened by production
planners to balance out
required capacities versus
available through
compressing or extending
processing lead times. This is
achieved using alternate
routing assignment to
production schedule and
using detailed model mix
planning outside Oracle.
Release Exception
Plan Plan
Features: Features:
 Release plan takes MPS as  Exception plan is also an
an input to create a MRP plan but does not
material requirement honor supplier lead times
plan. and planning time fence.
 This plan honors supplier  The objective of this plan is
lead times and a planning to generate exceptions for
time fences to generate expediting supplies and
recommendations for creating supplies with in
creating purchase orders supply lead time.
and supplier forecast for
BUY parts.  This plan generates BI
exceptional reports for
planners.
ATP
Plan
Features:
 Perform an Available To
Promise (ATP) check
within order management.
 System returns feasible
date and quantity for order
promising based on
capacity, material
resources checks done
online using ASCP ATP
Plan.
EBU Supply Chain Planning : Challenges

 Large volume of exceptions and recommendations from ASCP

 Multiple screens navigation to drill down to related exceptions

Pain Points

 Manual excel based planning and detailed scheduling

 No rapid simulations and impact analysis

 High latency in order promising

 No KPI and Dashboards for monitoring the health of supply chain planning
 Why Supply Chain Planning Analytics ?
 Exception messages dashboard
 From Exception messages in thousands (Overwhelming)

 To Parts in few hundreds

 Demand & Supply pegging simplified

Benefits

 From Navigate to different screens and details analysis for each order

 To Single self explanatory screen for quick decision making

 Shortens Order promising cycle time

 Root cause analysis based on historical data

 Leverage existing infrastructure of OBIEE

 Role based custom Dashboards for KPI and health check monitoring
EBU Supply Chain Planning Analytics: Overview
 EBU Planning Analytics Integration
Web Server (HTTP)

WebLogic Domain ORACLE BI DOMAIN Oracle BI System Components

Admin Server Managed Server Oracle BI Server

Admin Console Action Services Oracle BI

Presentation Server
O
Enterprise Mgr
Process
APS Collection

BI Office P Oracle BI Scheduler

APS 12.1.3.9

M
ERP 11i &

BI Publisher N Oracle BI Cluster

Reference Data
R12

Controller
Web Services
Oracle BI Java Host

BI Plugin

ASCP Security
PLANNING
ANALYTICS RPD &
Node Manager WebCatalog

MSC Schema XXMSC Schema

ODS – Collected ETL Extensions –

Data Dimension / Fact Supporting BIPLATFORM Schema(RCU Schema)
Tables For BI
PDS – ASCP Plan
Reports
Data
OBIEE RPD
ETL Custom Program
EBU Planning Analytics Schematic Diag.

BI Presentation Server Web Browser

• Data Source • 3 layer Data model file • Process inbound logical • Generates user interface
- Presentation SQL request.
- Oracle ASCP • Based on user selections,
- Mapping • Use repository to build it generates logical SQL
- Oracle EBS
and execute physical SQL
- Physical • Receives data from BI
against physical data
• Used by BI Server to source Server and displays to
transform logical SQL to user.
Physical SQL.

BI - Repository
EBU Supply Chain Planning Analytics: Offerings
EBU Supply Chain Planning Analytics:
Build new process control for measuring the health of Supply Chain:

New Metrics for segregating the Parts as per

PAB (Projected actual balance)
• Above Max: Inventory PAB is above upper
Total Number of Parts 1000 100% control limit with in the lead time
Above Max Inventory • Below SS: Inventory PAB is below safety stock
$$ on Hand

50 5% $$$
>$10K level with in the lead time
Above Max Inventory • Below Zero: Inventory PAB is negative with in
100 10% $$
$1KInventory
Above Max - $10K
Above Max Inventory
the lead time
< $1K 150 15% $
Max Inventory
Y axis: Quantity on Hand

Within Upper control limit

Control Limits 400 40%
(Cycle Stock)
Safety Stock
Below Safety Stock Lower control limit
150 15%
> 50%
Below Safety Stock
Below Safety Stock
100 10%
< 50%
Zero Qty
Below Zero 50 5%

17
EBU Planning Analytics: Dashboards
What is in Supply Chain Analytics: Covers the day in life of Planner/Buyer
1 2
Inventory Management
50 K Dashboard:
• Overall distribution of item
count by exception, filter by
snapshot date and planner
Below Zero:
• All Item with below zero
exception within lead time
Above Max:
• All items with above max
exceptions within lead time,
launch link to other tabs.
Also shows ASCP exceptions
3 4
Production Scheduling
and Order Fulfilment
Build Smoothing:
 All open sales order demand
pegged to firm / un firm
supplies with start and due
date with ROUTING
REFERENCES extracted to
create a feasible production
schedule
Order Lateness
 Indicator to identify Sales
order at risk is ORDER
LATENESS, difference
between Buy Part “Need by
Date” LESS Supply available
Date, this report shows only
those Sales order supply
pegging that have “–ve”
Order lateness.
Supplier Management
Past Due Supplies
 Past Due Supply – All the
information about the past
due supplies
Expedite Report
 Vertical plan of buy parts
sorted on suppliers, gives
expedite orders, new orders
and projected actual
balances with in its total
lead time
Root cause Analysis
and Simulations
Pegging Analyzer
 Demand - Supply Pegging of
BUY parts that are below zero
provides causal effect of
shortages on end demand
Root Cause Comparison
 Compare data from 2 dates for
Planner – Supplier and then
drill down to Item data
comparison. Very effective to
do ‘What Changed?’ analysis
Simulation Plans and impact
Analysis:
 Multiple scenarios and
comparison to base line plans
1
Inventory Management: 50K view and Horizontal Plan

50 K dashboard

Item Below Zero

(Within Lead Time)
Horizontal Plan
1
Inventory Management: Material Shortages and Expedite report (Vertical Plan)

• Flexible report – Opportunity to filter on various parameters. Part, Planner, Supplier and many more

Filters for pulling

Demand Pegging
or Supply Pegging

• Shortage reports in various formats – For supplier components and customer ordered parts

Filter for
pulling only
those
records
where
PLANNER
ACTION=YES

Vertical Plan with PAB and Order details

for expediting, new order placement etc.
2
Production Scheduling: Build Smoothing

• Simplified dashboard reports to fetch demand - supply data and capacity management

Routing
Reference=
Alternate vs
Standard
Routings
2
Order Fulfillment: Available to promise

• Order Lateness – As a measure for Order promising and demand Fulfilment

Order Lateness=
Part Supply Need by
Supply pegging of End Item Demand: Shows Date-Old Due Date
Part Short to meet Sales order/Forecast demand
3
Supplier Management: Past Due Supply
4
Root Cause Analysis and Simulations

Simulation Plan for comparing with

Base Line plan
EBU Supply Chain Planning Analytics:
Case Study on Order Fulfillment
EBU Sales Order Promising Cycle :
5 Step Process

Order
Booking
1
Order
Promising/Scheduling

Data-Collection
5 2 & Plan Runs

Planning Analytics: dashboards-

Reports 4 3 ETL Load for
• Build Smooth Planning Analytics
• Expediting
• Simulation Planning
5 Step Order Promising :
Sales Order Booking

Sales Order

Customer
places order on DEP.
Sales order gets
created with
Schedule Ship Date
equals Request Date

Sales Order Item=SO23855

Order # 511050, Line# 52.1
5 Step Order Promising :
BI Report- Demand Extract

ASCP Plan Run:

Analyze BI Reports

Production Control
Analyze BI Report:
• Demand Extract

Check Sales Order

“ORDER
LATENESS”

Sales Order of SO23855 with

Order Lateness* = -64 days

*Order lateness= Supply Need by Date- Old Due Date

5 Step Order Promising :
BI Report – Shop-order Expedite

ASCP Plan Run:

Analyze BI Reports

Production Control
Analyses BI Reports:
• Shop Order
Expedite Report

Check Parts causing

Order lateness

List of supply parts not available to

Build complete SO23855 by request date:7/28/17
5 Step Order Promising :
BI Report – Part Expedite Report

Resolve

Production Controller
understands there
are material short
and contacts material
Team to expedite
or place new orders.
Simultaneously
Production controller
checks capacities.

List of Purchase orders to expedite for meeting

Order # 511050, Line# 52.1 demand as per Customer Date: 7/28/17
5 Step Order Promising :
Build Smooth and Simulation
Build Smooth: Alternate Routing
Smoothening
And Simulations

Production controller
felt there could be a
way to achieve better
value by shrinking/
extending lead times
by using alternate Simulation: Sales order new date scenario
routings.
Production controller
proceeds to build
smooth. Also they can
simulate and takes
action accordingly .
5 Step Order Promising :
Sales Order Promising

Order Promising

On the basis of
confirmation from
materials team and
capacity checks, she
does order promising
or re-promising.
Production controller
also updates the
schedule ship date to
avoid further Plan
exceptions.
• Material team confirms : Supplier Expedites Part Shipment to meet build start date.
• Prod. Controller Promises Order to 7/28/17 and EDI acknowledges promise date to customer
EBU Supply Chain Planning Analytics:
Achievements & Business Value
EBU Planning Analytics: Achievement
Substantial Improvement Stable Performance Sustainable Model

 Aggregate to detail analytical view

 Multiple layouts for specific business processes and data analysis

 Dense information rich pages- relevant for planners daily usages

Achievements

 Improve productivity by quickly switching between page layouts

 Eliminates need of Oracle based custom reports and custom forms

 Multiple filters available to segregate data

 Easy to add conditions, data columns as per business needs

 Planners focus on value added activity v/s cumbersome data mining

and maintenance
EBU Planning Analytics: Business Value
Key Testimonials
" On behalf of Darlington Operating team, We would like to recognize the significant Contribution from KPIT towards the
preparation and implementation ASCP. The New System brings improved levels of Stability and Functionality, Supporting business
needs and Process Development Opportunities. KPIT’s Commitment and Effort in Achieving this was greatly appreciated“
John Osborn, Supply Chain & Quality Leader, Cummins DEP.

" In partnership with KPIT, we deployed a comprehensive value chain transformation incorporating solutions for discrete
manufacturing. By leveraging KPIT's extensive experience we deployed Supply Chain Planning Analytics“
Michelle Moorhouse, Supply Chain Manager, Cummins DEP.

" The implementation of ASCP has allowed business users to Become much more analytical by providing a vast number of
reporting tools though APCC BI interface. Through the use of these reports, we now have the ability to enhance current processes
and make better business decisions“
Daniel Snaith, Supply Chain Planner, Cummins DEP.

" ASCP integration has provided a solid planning platform across the DEP Supply Chain, it allows users to closely analyse Forecast
levels through the use of APCC BI reporting and Workbench Queries, these tools collectively allow for forecast tracking at a
daily/monthly part volume level, with Excel exporting functionality users can cross reference multiple data sets and effectively
analyse inputs/outputs, permitting for a leaner supply chain model and ultimately improving customer delivery stream and
inventory optimisation “
Nicholas Horn, Supply Chain Graduate, Cummins DEP.
 Ashish.Bhatnagar@kpit.com
Aniketvd@kpit.com
Session ID:
10231

Remember to complete your evaluation for this session within the app!