Discrete Manufacturing What’s New in R12

1. Discrete Manufacturing What’s New in R12 Tom Greene Principal Solution Consultant

2. Abstract & Agenda • ABSTRACT: Discrete Manufacturing in R12 benefits from several valuable enhancements, including: • expanded genealogy tracking • a new MES interface for expanded WIP control • unified inventory tracking across Process and Discrete • costing enhancements • sub-ledger accounting • and much more • AGENDA: • Walk through all the new R12 features at a very high level • Highlight in more detail the most notable ones • Demonstrate the new R12 MFG MES

3. Safe Harbor Statement 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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. You never saw me. I was never here. None of this ever really happened. It was all a dream.

4. Some things will never change…MRP, ENG, CAP, Mfg Sch are all unchanged in R12

5. R12 Inventory Overview

6. R12 Inventory Features • Dual Unit of Measure Control • Material Status Control • Advanced Lot Control • Picking Rules Enhancements • Enhanced Manual Material Allocations • Material Aging Workflow • Support for Indivisible Lots • Enhanced Lot Transactions • Copy Organization Enhancements • Telco Recurring Charges • e-Tax • Deferred COGS Recognition • Depot Repair Enhancements • Genealogy Enhancements • Ledger Architecture Uptake • Legal Entity Uptake • Multi Org Access Control • Enhanced Reservations • Inventory Packing Slip • Material Workbench Enhancements • Organization Parameter Changes • Asset Tracking Transaction Attributes • Performance - Pick Release Parallelization • Telecommunications Service Orders with Equipment

7. Serials and Lots now have status …

8. R12 Discrete WIP Overview

9. Planning & Scheduling ProductLifecycle Mgmt Warehousing / Transportation AssetLifecycle Mgmt Service PartnerCollaboration and Visibility Contract Mfgrs Suppliers Shop Floor Sys Oracle Discrete Manufacturing Solution Manufacturing Intelligence Flexible, Mixed Mode Manufacturing Repetitive Flow / Lean ETO ATO / CTO MTS Standard Discrete Lot-Based Manufacturing Execution Quality Mgmt Sample Analyze Adjust Lot / Serial Genealogy Tracking Visibility from Shop Floor to Top Floor Project Tracking CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

10. R12 Discrete Manufacturing Features • Fixed Component Usage Independent of Build Quantity • Optional Inclusion or Exclusion of Component Shrinkage in Material Transactions • Inverse Component Usage • Scheduling Workbench Enhancements • Mobile Return of Assembly Reserved to a Sales Order • Reservation of Discrete Job as Source of Supply through Inventory Reservation Form • Reservation of Completed Serialized Assemblies through Inventory Reservation Form • Serial-Lot Genealogy Enhancements  

11. Fixed Quantity Components

12. Reservations Against WIP

13. Serial / Lot Genealogy and TrackingAlways Know the Source and Placement of Each Part ManufacturingPartner Server (S.No. 512) Ireland Suppliers PCI Board (S.No. 717) Storage (S.No. 929) Boards R’ Us Denver, CO Composition Where Used Disk Array (S.No. 892) Memory (Lot No. 115) CPU (S.No. 232) Acme ChipFab 12 E. StorageAustin, TX SKD Co.S. Korea Disk A (S.No. 676) Disk B (S.No. 339) Nippon FabJapan • Trace a customer shipment back to the original source • Trace a lot or individually serialized product through supply base

14. Serial / Lot Genealogy and Tracking

15. R12 Quality

16. R12 Quality Features • E-Records Usability Enhancement Redlining of Changes to E-Record • ERES support for 21 CFR Part 11 Compliance in Service, Field Service & Quality • Genealogy Enhancements Output • Quality Charts in HTML UI • Quality Audits Solution • Quality Enhancements for Multiple Organization Access Control • Quality Enhancements for Process-Discrete Inventory Convergence • Quality Integration for OPM Batch Process Nonconformance • Quality Integration with Asset Operational Status • Quality Integration with Depot Repair Tasks • Quality Integration with Shop Execution Workstations in WIP, FLM, OSFM

17. HTML Quality Charts

18. Quality Audits

19. R12 Cost Accounting Overview

20. Comprehensive Costing MethodsAnalyze Product Cost and Profitability • Support for multiple costing methods • Develop comprehensive standard or simulation product costs • Rollup costs across the enterprise • Costing transactions transparent to shop floor personnel • Proactively identify, monitor, and analyze potential variances • Track periodic average cost simultaneously with other methods • Recognize COGS and revenues in the same proportion and accounting period Standard LIFO FIFO Average Periodic Avg Deferred COGS

21. R12 Cost Management Features • Multi Organization Access Control • Deferred Cost of Goods Sold • Sub Ledger Accounting (SLA) • Accrued Liability • Period End Accrual for Receipts • Periodic Average Cost Enhancements • Inventory Value Report Enhancements • Period Close Diagnostics • Process / Discrete Inventory Transfer Accounting • Supply Chain Cost Rollup Enhancements • Fixed Components • Component Yield

22. Report Enhancements

23. R12 Discrete MES

24. Oracle Manufacturing Execution Options Confidently Deploy Oracle to Run and Monitor Your Shop Floor In-House Mfg Outsourced Mfg • Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management • Reduce TCO / Complexity via Integrated MfgMgmt & Production Execution with 3rdParty MES MfgPartner Use Directly You OracleDiscrete Mfg ModelShopFloor OracleDiscrete Mfg as the MES Oracle/Legacy/ 3rd PartyMES MES APIs OracleDiscreteMfg Legacy/3rd PartyMES Share Info Shop Floor Shop Floor Shop Floor • Leverage Oracle Discrete Mfg on the Shop Floor in Any Capacity & Gain… • Enterprise-wide quality mgmt with complete serial / lot genealogy & traceability • Complete configurations mgmt: as designed, as sold, as built, as maintained • Compliance with regulations such as RoHS and 21 CFR Part 11 • Decision making through built-in business intelligence

25. Focus: Discrete Mfg with MES Increase OPERATOR Efficiency with Intuitive Workstation Displays Dispatch list type Authorization through badge number entry Jobs not ready to betaken up for production Work Content

26. Focus: Discrete Mfg with MES Increase OPERATOR Efficiency with Intuitive Workstation Displays Work Content Actions View Instructions View Current Employees working Work Content is all the information required to perform work on an operation. It includes component and resource requirements, work instructions, attachments and other job property information.

27. The logical starting point for a Supervisor • Provides a snapshot of the current shop floor status and issues requiring resolution • Immediate “one click” access to supervisory functions • Resolve exceptions • Expedite orders • Reorder dispatch list • Report resource usage • Review shop floor trxns Focus: Discrete Mfg with MES Empower SUPERVISORS with Quick Access to Shop Floor Status Exceptions-basedmanagement View jobs in process and projected capacity shortages with drill downs to dispatch list CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

28. R12 Flow, Project, OSFM Manufacturing Overview

29. Planning & Scheduling ProductLifecycle Mgmt Warehousing / Transportation AssetLifecycle Mgmt Service PartnerCollaboration and Visibility Contract Mfgrs Suppliers Shop Floor Sys Oracle Discrete Manufacturing Solution Manufacturing Intelligence Flexible, Mixed Mode Manufacturing Repetitive Flow / Lean ETO ATO / CTO MTS Standard Discrete Lot-Based Manufacturing Execution Quality Mgmt Sample Analyze Adjust Lot / Serial Genealogy Tracking Visibility from Shop Floor to Top Floor Project Tracking CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

30. R12 Project Manufacturing Features • Project Manufacturing Inquiry Enhancements  • Purchasing Summary Lines in Project Mfg Inquiries • Transfer Project Invoice Charges Enhancements • Changes related to Multi-Org Access Control

31. R12 Flow Manufacturing Features • Enhanced Flow Execution Workstation • Fixed Component Usage Support • Maintain Schedule Number when Rolling Schedules Forward

32. R12 Shop Floor Management (OSFM) Features • Component Shrinkage • Enhanced BOM to Capture Inverse Usage • Enhanced Shop Floor Execution Capabilities • Fixed Component Usage Support for Lot-Based Jobs • Genealogy Enhancements • Planning Enhancements for OSFM • Sales Order Reservation for Lot-Based Jobs • Support for Lot Attributes During Inventory Lot Transactions • Support for Lot and Serial Controlled Assemblies • Support for Partial Move Transactions • Support for RosettaNet Transactions

33. R12 Purchasing Overview Bonus!

34. Oracle Advanced ProcurementThe Integrated Suite that Dramatically Cuts All Supply Mgmt Costs Reduce Spend on Goods and Services Spend Categories SupplierCollaboration SpendAnalysis CategoryManagement OnlineSourcing Orders Indirect Goods SupplierPortal Streamline Procurement Processes Logistics ApprovalRouting TouchlessBuying Automated Payment Services Settlement EngineeredGoods SupplierNetwork Budget-BasedProcurement ContractManagement SupplierPerformance ProfileManagement DirectMaterials Enforce Policy Compliance

35. R12 Purchasing Features • Material Status Control • Sub-lot Control • Depot Repair Enhancements • E-Business Tax • Professional Buyer's Work Center • Procurement for Complex Services • Multi-Org Access Control (MOAC) • Document Publishing Enhancements • Communicate Document Attachments to Suppliers • Maintain Sourcing Rules/ASLs for Agreement Items • Support for Contractor Purchasing Users • Compliance to Packaging Constraints • Auto-Approval Tolerance for Change Orders • eAM Support for Services Procurement • Model Complex Pricing for Blanket Line Items • Advanced Approval Support for Requisitions • Subledger Accounting for Budgetary Control Actions • New User Interface for Oracle Purchasing Setups

36. R12 Advanced Supply Chain Planning Overview Bonus!

37. What does ASCP do? • Oracle Advanced Supply Chain Planning (ASCP) is a comprehensive, internet-based planning solution that decides when and where supplies should be deployed within an extended supply chain (for example, inventory, purchase orders and work orders). This is the supply planning function. Oracle ASCP addresses the following key supply planning issues: • Purchased parts planning • Capacity Modeling and Forecasting • Supplier Demand Forecasting • Production Planning and Scheduling • Available to Promise calculation • Sourcing Optimization, Supply Constrain Resolution • Excess and Obsolete Planning and Simulation • Distribution Planning

38. R12 Supply Chain Planning Features • Distribution planning • Item attribute simulation sets • Sequence-dependent setups • Gantt chart enhancements • Order queries • Reports • Discrete Manufacturing integration enhancements • Forecast spreading for Gregorian calendars