Cipla APO PPDS project

9 November 2020
Project Objectives and Scope

Objectives

• To implement SAP PPDS solution at 2 Pilot plants in India with a standardized production scheduling
process
• To define global blueprint which will be applicable to all the factories to be rolled out in future

Scope

Prepare PPDS blueprint for all 40 own manufacturing plants in India (Both formulation and API)

Implement PPDS at 1 Formulation Unit at Goa (Unit # 3)

Implement PPDS at 1 API Unit at Kurkumbh (Unit # 3)

Integrate PPDS and ECC for seamless flow of master data and transaction data

© 2020 Deloitte Touche Tohmatsu India LLP 2

Project Timelines for Pilot Implementation

Nov’20 Dec’20 Jan’21 Feb’21 Mar’21 Apr’21 May’21 Jun’21 Jul’21

M1 M2 M3 M4 M5 M6 M7 M8 M9

Track 0: Current state Blueprint sign-

Global off completion
Blueprinting and Data modeling
Master data
System design
readiness for
Master data Master data for Pilot plants should be
Pilot plants
readiness ready in ECC Quality

Track 1: Testing and train the User

Realization and Build Cutover PGLS
trainer Training
Go-live for Pilot
Formulation
PPDS clients Unit test SIT UAT Go-live
Plant
are ready completion completion completion

Testing and train the User

Track 2: Build
trainer Training
Cutover PGLS
Realization and
Go-live for Pilot
API Plant PPDS clients Unit test SIT UAT Go-live
are ready completion completion completion

Stage gate condition Milestone

© 2020 Deloitte Touche Tohmatsu India LLP 3
 Plant layout showing existing work Process flow diagrams, User requirements specification
stations/resources/suit Samples of current production (URS)
Track 0: Planned activities structures/module structures etc. schedules etc.

Task Name Duration Day count

Track 0: Blueprinting and master data readiness 192 days Mon 02-11-20
Introduction between Cipla team and Deloitte team + Overview of PPDS 2 hours Day 1
Overview of PPDS Master data 3 hours Day 1
Overview of PPDS transaction data (incl. integration) 3 hours Day 2
Walkthrough of ECC master data (material master, work center, BOM, receipe, production version) using sample example (Formulation) + Process
3 hours Day 2
order confirmation
Walkthrough of ECC master data (material master, work center, BOM, receipe, production version) using sample example (API) + Process order
3 hours Day 3
confirmation
Understanding of Pilot DF plant layout, physical resources, resource definition in ECC, major products, recipe, production flow, other relevant
3 hours Day 4
master data (OSD)
Understanding of Pilot DF plant layout, physical resources, resource definition in ECC, major products, recipe, production flow, other relevant
3 hours Day 5
master data (Cream, others)
Understanding of Pilot DF plant current scheduling process, scheduling documents/sheets, horizon, conditions, sequencing criteria, break-ins,
3 hours Day 6
frequency, levels, efforts, challenges, production confirmation
Review of URS for DF plants and start updating requirements in RTM 2 hours Day 7

Complete server installations, network connectivity checks, access to Deloitte consultants to Cipla network etc.
Understanding of Pilot API plant layout, physical resources, resource definition in ECC, major products, recipe, production flow, other relevat
3 hours Day 8
master data

Understanding of Pilot API plant current scheduling process, scheduling documents/sheets, horizon, conditions, sequencing criteria, break-ins,
3 hours Day 9
frequency, levels, efforts, challenges, production confirmation

Review of URS for API plants and start updating requirements in RTM 2 hours Day 10

Readiness of PPDS development instance and access to Deloitte Day 10

© 2020 Deloitte Touche Tohmatsu India LLP 4

How the advanced planning and scheduling takes place in APO PPDS

Standard integration architecture Planning/ Scheduling

SAP integration with core interface
(CIF)
SAP Heuristics
SAP PPDS IBP
 Advanced planning and
Execution Planning scheduling algorithms present in
Month level rough Master and APO PPDS system
cut supply plan transaction data
(Planned orders)  Logic driven functions set up the
base of the heuristics
 Custom heuristics can be
developed in PPDS
CIF Channel
• Periodic unidirectional SAP ECC
master data PPDS Optimizer
• Bidirectional online
transaction data
 Optimization function that can
Un-scheduled Master and do simultaneous material and
SAP Execution planned orders transaction data
PPDS Planning capacity planning
Material Master Product Master  Tries to minimize setup time
Scheduled
Plant Location planned orders based on master data
Work center capacity Resource SAP
Production version Production Data
Structure PPDS PP/DS

© 2020 Deloitte Touche Tohmatsu India LLP 5

Key features and benefits of PPDS

Some of the advanced functionalities Key Benefits

Standardized/Common scheduling
Planning by exception Day level granularity
planning with exact 1 process for the factories with similar
product portfolio
timings

Seamless
integration with
2 Ability to plan campaigns to minimize
change over
Changeover cost ECC for Plant
minimization maintenance and
algorithms Production 3 Maximizing production throughput to
fulfill market demand
execution

SOP driven step by

step schedule
4 Ability to introduce process controls
for break-ins in the schedule
preparation in
simplified UI Auto selection of alternate resources
Campaign planning
5 based on priority

To reduce WIP by reducing waiting

Auto sequencing of
Minimum and 6 time between FG and BFG plans
maximum intervals
the orders between operation
Ability to monitor scheduling
7 adherence
© 2020 Deloitte Touche Tohmatsu India LLP 6
 Illustrative

Forward scheduling in PPDS

Demand P1 P2 P1 P2

Scheduling
Packing P1 P2 P1 P2

Coating P1 P2 P1 P2

Direction
Compression P1 P2 P1 P2

Granulation P1 P2 P1 P2

Scheduling Horizon- Inside Scheduling

Demand Horizon Capacity loss due to leadtime
of preceeding operation
Planned order (Packing)
P1- Product 1
Planned order
P2 – Product 2
(Manufacturing)
© 2020 Deloitte Touche Tohmatsu India LLP 7
 Illustrative

Forward scheduling with alternate resources

Demand P1 P1

Scheduling
P2 P2

Without Primary
Resource P1 P2
alternates

Direction
Alternate 1 P2

Alternate 2 P1

Scheduling Horizon- inside Scheduling

Horizon
Demand P1- Product 1

Planned order P2 – Product 2

© 2020 Deloitte Touche Tohmatsu India LLP 8

 Illustrative

Campaign planning with forward Scheduling

P1 P2 P1 P2
Demand

C1

Scheduling
C2
Packing
P1 P1 P2 P2

C1 C2
Coating

Direction
P1 P1 P2 P2

C1 C2
Compression
P1 P1 P2 P2

C1 C2
Granulation
P1 P1 P2 P2

Scheduling Horizon- Inside Scheduling

Demand Horizon Capacity loss due to
campaigns
Planned order (Packing)
P1- Product 1 C1- Campaign P1

Planned order P2 – Product 2 C2- Campaign P2

© 2020 Deloitte Touche Tohmatsu India LLP
(Manufacturing) 9
 Illustrative

Campaign planning with alternate resources

P1 P1
Demand

Scheduling
P2 P2

C1
Primary
Resource P1 P1

C2

Direction
Alternate 1
P2 P2

No alternate Resource Utilization as campaigns can not be interrupted

Alternate 2

Scheduling Horizon- Inside Scheduling

Demand HorizonP1- Product 1 C1- Campaign P1

Planned order P2 – Product 2 C2- Campaign P2

© 2020 Deloitte Touche Tohmatsu India LLP 10

Illustration: Importance of the campaign size while planning with alternates

 Consider orders of a single SKU in this example

 Consider that each order has only one operation – duration 1 day
 Consider this operation is validated in two alternative resources

Alt. Resource 1
Longer campaigns
Max batches = 3 Alt. Resource 2 (large campaign sizes)
Total Orders = 6
may restrict the
alternate usage options
Total Lead Time = 3 days
Number of cleaning = 2 (1 per resource) and result in longer
Alternate Usage = Yes total lead time.

Alt. Resource 1

Max batches = 6
Alt. Resource 2

Total Lead Time = 6 days

Number of cleaning = 1
Alternate Usage = None

© 2020 Deloitte Touche Tohmatsu India LLP 11

Illustration: Importance of scheduling SOP

Example: We want to schedule ongoing orders first, then kitted orders (all materials available)
and then non-kitted orders

Kitted Order Current Date

Non-Kitted Order Scheduling Horizon
Process Order Iteration # 1

(1) Before Schedule (2) Free up Capacity (3) Schedule Process Orders

Iteration # 3 Iteration # 2

(6) Spillover to the Horizon End (5) Schedule Non-Kitted Orders (4) Schedule Kitted Orders

Note: Identification of planned orders as kitted/non-kitted is a Deloitte proprietary solution and has been deployed at Cipla.

© 2020 Deloitte Touche Tohmatsu India LLP 12

Key takeaways

© 2020 Deloitte Touche Tohmatsu India LLP 13

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and
each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about
for a more detailed description of DTTL and its member firms.
This material has been prepared by Deloitte Touche Tohmatsu India LLP (“DTTILLP”), a member of Deloitte Touche Tohmatsu Limited, on a specific request from you and contains proprietary
and confidential information. This material may contain information sourced from publicly available information or other third party sources. DTTILLP does not independently verify any such
sources and is not responsible for any loss whatsoever caused due to reliance placed on information sourced from such sources. The information contained in this material is intended solely
for you. Any disclosure, copying or further distribution of this material or its contents is strictly prohibited.
Nothing in this material creates any contractual relationship between DTTILLP and you. Any mutually binding legal obligations or rights may only be created between you and DTTILLP upon
execution of a legally binding contract. By using this material and any information contained in it, the user accepts this entire notice and terms of use.
©2020 Deloitte Touche Tohmatsu India LLP. Member of Deloitte Touche Tohmatsu Limited
Deloitte Touche Tohmatsu India Private Limited (U74140MH199 5PTC093339), a private company limited by shares, was converted into Deloitte Touche Tohmatsu India LLP, a limited liability
partnership (LLP Identification No. AAE-8458),with effect from October 1, 2015.