241802936-Oracle-Demand-to-Plan-Overview.pptx

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1. Executive ERP Training Program

2. Training Project Plan Session Agenda Duration (Mins) Track Leads 1 Key Concepts in Oracle ERP 60 Ratan/Alberto 2 Inquiry to Order (ITO) / Order to Revenue (OTR) 60 Molly 3 Demand to Plan (DTP) 60 Ankush 4 Procure to Fulfil (PTF) 60 Preyshi 5 Schedule to Build (STB)/Engineer to Release (ETR) 60 Rangnath 6 Project to Close (PTC) 60 Dileep 7 Bill to Collect (BiTC)/Budget to Close (BuTC) 60 Talat 8 Service to Resolution (STR) 60 Ratan 9 Technical Architecture/Extensions/Conversions 60 Cheslyn

3. Agenda Demand To Plan (DTP) Overview Oracle Value Chain Planning (VCP) Overview Oracle Demantra (DM and RTSOP) Oracle Advanced Supply Chain Planning Other Oracle VCP Modules Example (Distributed Power)

4. Demand to Plan (DTP) Overview

5. DTP Overall Processes (Solution Print) Develop Consensus Demand Plan Develop Supply Plan Commercial Support Process Develop Sales & Operations Plan Pre-Forecast Activities Baseline Forecast Generation Forecast Review Pre-Planning Activities Generate Supply Plan NPI / Product Lifecycle Review Demand Review Supply Review Operational / Financial Review Run Global Order Promising Run Planning Scenarios / Alternatives 5 Consensus Demand Generation Executive Review Review and Release Master Production Schedule Review and Release Material Requirements Plan Review Inventory and Capacity Plan

6. DTP Business Flow

7. DTP Business Flow Demand Planning Supply Planning

8. Oracle Value Chain Planning

9. What is Value Chain Planning (VCP)? Determine the overall demands on an enterprise and plan the activities to fulfill those demands in a profitable manner. To accomplish this, an enterprise may: Forecast demand by product/category, by customer groups/geography, by time period, and by fulfilling plant/warehouse Decide customer service levels the enterprise wants to achieve and plan inventory to support those levels Determine when, where, and how products are procured or made to meet the demands & service levels Communicate the plan with trading partners (such as vendors) and incorporate their feedback into your plans Promise availability dates to your customers Determine detailed factory schedules and plan for human and machine resources Plan distribution of products from plants to warehouses (and possibly customer locations) …Performing all of the above in a manner as efficient, responsive, and effective way as possible

10. VCP Product Suite Demand Management (DM) Demantra Advanced Forecasting and Demand Modeling (AFDM) Demantra Real-Time Sales and Operations Planning (RTS&OP) Predictive Trade Planning (PTP) Advanced Supply Chain Planning (ASCP) Rapid Planning (RP) Inventory Optimization (IO) Global Order Promising (GOP ) Collaborative Planning (CP) Service Parts Planning (SPP) Strategic Network Optimization (SNO) Production Scheduler (PS) Advanced Planning Command Center (APCC ) VCP

11. Integration with other modules

12. Demantra (DM and RTSOP)

13. Demantra (DM) Features Foundation of Demantra’s technology Collect data from Source Load Dimension, Level values and Transaction values Pre-seeded hierarchies, worksheets and workflows to analyze and disseminate critical forecast information. Includes state-of-the-art Bayesian statistical forecasting Collaboration Platform - alerts & exceptions Unlimited Hierarchies, Dimensions, Levels and Attributes

14. Demantra DM Process Flow

15. S&OP - Complete and Integrated Process Demantra RT S&OP brings together forecasts, supply plans, inventory investment, production schedules,  product revenue and profit  into a series of worksheets enabling management to evaluate alternatives and optimize the best supply profit and customer service goals

16. Demantra RTSOP Features W orks on the same data model as Demantra DM module Repository for Supply & Demand information Supports Consensus based Demand Planning Workflow based process Canned worksheets to define process Top Down and Bottoms up Plan validation Financial Gap Analysis Exception based reporting Notes and Audit Trail tracking Export to Excel

17. Demantra S&OP Process Flow Workflow Flexible Process – Through Workflow modifications Empower Stakeholders – Bring needed information to make good decisions Unified Objectives – All stakeholders march to the same beat

18. Advanced Supply Chain Planning (ASCP)

19. Advanced Supply Chain Planning Constraint Based Supply & Distribution Planning (MRP, DRP, MPS, CRP – in one tool) Supply Chain and Distribution Planning Product family and item level planning Alternate components, resources, processes, suppliers, facilities, and ship methods End-item substitution Critical items and resources; aggregate resources Bills of distribution and transfer rules Circular sourcing, load consolidation, allocation rules Include customer and supplier facilities Manufacturing Planning Sequence dependent setups/changeovers Simultaneous resources Batch resources Alternate resources Minimum transfer quantities Complex, network routings By-products and co-products Suppliers Manufacturing Transportation Transportation Transportation Customers Distributors

20. ASCP Capabilities Holistic Optimization Planning and Scheduling Finite Capacity Planning and Scheduling Optimization Workflow Driven Exception Messaging Global Accessibility Integrated Planning & Execution Simulation Capability

21. ASCP Planning Data Flow Transaction data Planning data Data Collection Launch Supply Chain Planning Process Planner Workbench Release Planned Orders/ Recommendations Collections Workbench

22. Other VCP Modules

23. Oracle Advanced Planning Command Center Get the right answers Self service, pre-built Rich content and KPIs Seamless integration with planning apps Business Insight for Supply Chain Executives Pre-Built Dashboards and Reports Scenario and Activity Management Plans and Archived Plans Analyze Plan Orchestrate Analyze and compare scenarios and plans Execute scenarios Execute automated processes Archive plans Web Service enabled Planning Processes Analytical Data Forecasting Supply Planning Planning Analytics for Supply Chain Decision Makers Business scenario planning Decide which scenarios to plan Compare baseline to alternative scenarios Assign scenarios to planners for execution Preconfigured Planning Processes Planning process automation Notify constituents of assigned activities Link processes for manual or automated execution Auto-archive plans

24. Oracle Strategic Network Optimization Consider all costs and constraints that impact the decisions Costs ($): Variable and Fixed Transportation (inbound, outbound) Storage and inventory carrying costs Fixed costs (startup, shutdown, operating) Material supply Manufacturing and labor Price (for profit optimization) Capacity Constraints (Hard and Soft) Supply constraints Manufacturing constraints Transportation constraints Storage and inventory constraints Target service levels Dynamic safety stock Answering the tough questions: How do I manage my supply chain risk more effectively? What impact do changing costs have on my inventory, production and/or sourcing strategy? Can I meet demand profitably? Where should I hold how much inventory, when? Should I close down a facility? How could I react to a disruption in supply due to unforeseen events? What are my most profitable channels or products to invest in? What is the impact of mergers and acquisitions on my supply network and capital asset budget?

25. Increase global visibility and reduce supply shortages Multi-enterprise visibility Monitor supplier performance Implement vendor managed and consigned inventory Provide value-add services as a competitive differentiator Reduce inventory carrying costs through automation Reduce planning cycle time through multi-enterprise planning Collaborative supply planning Comprehensive waterfall analysis React quickly to supply chain exceptions Seeded and user configurable exceptions Fully integrated with Oracle E-Business Suite Oracle Collaborative Planning Improve global visibility and react quickly to changes through collaboration with trading partners

26. Maximize throughput of bottleneck resources Automatic detection of bottlenecks Minimize setup with intelligent sequencing Improve shop floor performance Minimize the effect of unplanned downtime Easy identification of issues What-if rescheduling Drag and drop Quickly determine the best schedule Fast easy simulation Scenario comparison and key performance indicators Implement quickly by leveraging out-of-the-box integration Integrated manufacturing planning and scheduling Fully integrated with Oracle E-Business Suite Oracle Production Scheduling Maximize shop floor throughput and optimize resource utilization

27. Increases flexibility and reduce costs by moving inventory away from the customer to the point of postponement Accounts for demand, supply, and lead-time variability when determining the point of postponement and inventory levels Synchronizes inventory levels and policies across the supply chain Helps you move from a push model to a pull model Increases visibility to supplier and contract manufacturer inventory Suppliers Contract Manufacturers Final Assembly Central Distribution Centers Regional Distribution Centers Customers Old way Push Inventory New way Postpone Inventory Oracle Inventory Optimization Respond quickly to demand, supply, and lead time fluctuations

28. Example (Distributed Power)

29. Houston Integrated Business Planning – Distributed Power 29 Jenbach Waukesha Parts Repairs Units Service/ Parts Repairs Units Product Management Consensus Demand Tomorrow Today Key Benefits Consensus Product Management Plan Consolidated , systemized demand forecasting Integrated real-time planning across DP Streamlined Fulfillment Plans Optimized capacity & capability across Fulfillment Network Distributed Power: 1 ERP and 1 Planning System Integrated Business Planning Demand Supply Gas Turbines Recip Engines Recip Engines Houston/Jenbach Reman Shops Opportunities Multiple disjointed demand streams flow into factories Fulfillment & inventory executed independently in silos Factories & Parts manage same suppliers separately Limited visibility across factories to optimize assets/inventory Distributed Power: 11 ERPs and 3 Planning Systems Gas Turbines Recip Engines Repair/ Reman Houston, Hungary , JV Jenbach, Waukesha, Pune Global Fulfillment Network Long Term Marketing Customer Orders Consensus Supply

30. Integrated Business Planning Vision – DP Oracle Contracts Blueprint financials Backlog commitments Opportunities History/Open orders Enablers Rules Master data PLM integration P6 & CMRO integration Outcomes On time delivery Inventory optimization Scenario planning Real time forecasting Predictive/projection of demand Supply Demand Repairs Field force Factory Warehouse Strategic supplier Projects Integrated Business Planning

31. Example – Distributed Power TO-BE Process high level Supply Constraints Demand Meeting Product Meeting Execute Plan Performance data ASCP Demantra Demantra ASCP ASCP Pre-Work Demand Mgmt. Product Mgmt. Supply Mgmt. Integrated Reconciliation Management Review Sales/ Product Mgmt / GSCM Sales / Marketing/GSCM/ Product Product Mgmt. / Eng./GSCM GSCM / Req Eng./ Projects Product Mgmt ./ GSCM/ Eng./Sales Executive Decision Supply Meeting Issue Resolution Business decision Y N Finance Demantra Demantra APCC APCC APCC ASCP – Advanced Supply Chain Planning APCC – Advanced Planning Command Center Performance data Unconstrained Forecast 1 st week 2nd week 3rd week 4th week 5 th / 1st week Monthly calendar PS

32. NPI/NTI Product inputs Publish Forecast Example – Distributed Power TO-BE Process w/ System Flow SFDC Oracle ERP Demantra ERP Historical data Oppty data ASCP Run MPS plan Oracle ERP Material, labor data Production Scheduler APCC Review what if’s Slots ASCP Execute MRP Plan Generate Forecast Demantra Reconcile Plan APCC Business Review Review ASCP recommendations Release /update planned orders Reschedule/ cancel PO/WO Execute work orders Manage Slots What if analysis Export what if analysis Approve slot Display Slot Plan MPS – Master Production Schedule MRP – Material Requirements Planning ASCP – Advanced Supply Chain Planning APCC – Advanced Planning Command Center SFDC – Sales Force PO/WO – Purchase orders/ Work orders Planners Planners Planners/Sourcing Mfg. ERP Master/Transactional data

33. Back Up Slides

34. Demand Supply Independent and Dependent Demand Forecasts Planner Workbench VCP Demand is the need for an item examples: Customer Order, Forecast Supply is satisfaction of a demand examples: On-hand inventory, Work Order, Purchase Order Dependent demand is demand for an item that depends on the need for another item. Independent demand is demand for an item that does not depend on the need for another item. example: Customer Order - Independent, Tire for an automobile –Dependent demand Forecasts are used to state expected shipments of goods due to customer orders that you expect to receive The Planner Workbench is a powerful graphical tool that lets you perform advanced simulation, review plan performance, and take actions based on system recommendations. VCP (Value Chain Planning) is the new name for Oracle's suite of planning applications Key Oracle Demand to Plan Terms

35. DTP Core Module Mix 36 Oracle Module Mix Level 2 Processes Advanced Planning Command Center Demantra Real-time Sales and Operations Planning Advanced Supply Chain Planning Demantra Demand Management Develop Consensus Demand Plan Develop Supply Plan Develop Sales and Operations Plan

36. Demantra Tools & Terminology TOOLS Collaborator Workbench Business Modeler Demand Planner Workflow Manager Engine Administrator User Management TERMINOLOGY Item Hierarchy Location Hierarchy Levels Series Worksheets Workflows

37. VCP Architecture

38. Oracle Advanced Planning Key Capabilities Demand Planning -- DEMANTRA Achieve consensus forecast through a collaborative demand planning engine Inventory Optimization Determine where to hold which inventory in your supply chain, at what level in the bill of material (postponement optimization) Supply Chain and Manufacturing Planning Determine optimal supply plan using a single holistic plan for all your facilities (unconstrained, constrained, and optimized) Global Order Promising Promise accurate dates while taking into account available material, manufacturing capacity, supplier capacity, and transportation capacity

39. Oracle Advanced Planning Key Capabilities Manufacturing Scheduling Determine optimal resource schedules for your plant Transportation Planning: Reduce transportation cost by: Combining deliveries into consolidated trips Combining trips into continuous moves Selecting the most effective carrier and mode Collaborative Planning Reduce inventory cost and automate inventory replenishment by using vendor and customer managed inventory (including consigned) Improve visibility through multi-tier collaborative planning Monitor supply chain fluctuations through comprehensive supply chain exception management Supply Chain Intelligence integration Drive continuous improvement

40. Demantra Demand Management (DM) Features Core Application Statistical Forecasting 9 Models 23 Causal factors Attribute Based Forecasting Analyze and group by attributes Business rules for product level modeling Manage at any Level Time Product Location New Product Introduction Assumption Planning Supports qualitative forecasting Current & past assumptions modeled Shape modeling Use comparable products Generate and align to demand Editing, Reporting, Analysis, Collaboration, Events & Exceptions

41. Demantra’s Statistical Forecasting Capabilities

42. Workflow enabled Collaboration Web based Workflow development tool Forecast Generation Workflow to Share information Workflow to handle exceptions Workflow to integrate external system

43. Disaggregating Higher Level Entries to Lower Level SKU/Location Proportional (Based on another series) Proport Mechanism (Custom methods)

44. Expressions / Color Coding Server Client Color Edit Lock

45. Standard Levels at which you view Data

46. ASCP Business Flow Determine consensus forecast 1. Prepare 4. Implement 2. Execute 3. Analyze Run production plan Analyze plan Implement revised constraints Release schedule Adjust plan Simulate with revised constraints Collaborate on revised constraints

47. APS Business Flow: Plan Demand Planning Sales demand Forecasted Demand Order Management BIS Performance KPI targets ASCP Optimized plans Supply Chain Sourcing rules Existing supply Inventory Optimization Safety stock demand Bills of Material Production capacity Product structure Collaborative Planning Supplier capacity Inventory WIP Purchasing Shop Floor Mgt. APS Source

48. S&OP Screenshots

49. S&OP Screenshots

50. S&OP Screenshots

51. S&OP Screenshots

52. S&OP Screenshots