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A Journey from Unconstrained to Constrained:

A Journey from Unconstrained to Constrained:. Implementing Manufacturing Scheduling and ASCP. At a Glance. Global leader providing mission critical time and frequency solutions Headquartered in San Jose, CA. Offices throughout the US, as well as the United Kingdom, Germany and Malaysia

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A Journey from Unconstrained to Constrained:

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  1. A Journey from Unconstrained to Constrained: Implementing Manufacturing Scheduling and ASCP

  2. At a Glance • Global leader providing mission critical time and frequency solutions • Headquartered in San Jose, CA. • Offices throughout the US, as well as the United Kingdom, Germany and Malaysia • Manufacturing in SF Bay Area, Massachusetts and Puerto Rico • FY05 revenue $181M • ~800 employees

  3. Enterprise and IT Networks WirelineNetworks Space, Defense and Avionics Government Communications Markets We Serve Wireless Networks

  4. A Sampling of Customers Telecom Government Enterprise

  5. Oracle Environment • Hosted by Oracle On Demand • E-Business Suite 11.5.10 CU1 • Dell Servers running Red Hat Linux • Live since June 2001

  6. Oracle Modules • Manufacturing • INV • WIP (Discrete) • ENG • BOM • MRP • Order Mgmt/CRM • OM • TeleService • Contracts • Miscellaneous • HR • ICM • Financials • AR • AP • GL • Projects • FA • Time&Labor • iExpense • Procurement • PO • iSupplier • iProcurement

  7. Project Madison • Overall Project Goal • Project Madison will implement three distinct yet interdependent modules of Oracle: Manufacturing Scheduling, Advanced Supply Chain Planning and Global Order Promising • Primary Project Goal • Provide accurate Ship Dates to our customers quickly

  8. Project Madison • Initial Rollout in our Aguadilla, PR facility • Includes about 80% of production • Focus on ASCP and Manufacturing Scheduling First • Fine tune GOP once ASCP and MS are stable • Use Internal Resources Primarily • Gain a deep understanding of products and processes • Less Expensive • Longer Project Timeline

  9. Selling It Operations Challenges

  10. Project Challenges • Dirty Data • PO & WO Dates not Maintained • Sales Order Ship Dates not Maintained • Short Orders Left Open (PO and WO) • Inaccurate Lead Times • Scrap not Scrapped • Systems and Application Issues • Team Resources • Change Management

  11. Keys to Capacity Planning • Accurate Routings • Accurate Capacity for Machines and People

  12. Routing Update • Existing Routings Primarily Supported Costing • Only contained Human Resources • Used “Transit” resource to simulate extended machine time • Resources and Departments used legacy nomenclature Sample Routing Here

  13. Routing Update • Rules of Engagement • Don’t Change Standard Costs • Don’t Interrupt WIP • Complex Process Steps to Model • Test Operations • Operator Attended and Autonomous Processes • Shared Resources • Batchable Resources • Variable Process Times

  14. Routing Update • Example: Test Fixture Example Here

  15. Routing Update • >1000 Routings to Update • Map Old Depts and Resources to New Depts and Resources • Insert Appropriate Machine Resources • Evaluate Scheduling Sequence for Depts with People and Machines • Prioritization • Items Averaging > 1 Job per Month • Items with Planned Orders

  16. Routing Update • Keeping Things Simple • All Updates Made on Spreadsheets

  17. Routing Update • More Simplicity • Use Standard Interface Tables and Processes • Insert Statements Created Using MS Word Mail Merge Functionality -- to add new resources insertinto bom_op_resources_interface (RESOURCE_SEQ_NUM,ASSIGNED_UNITS,USAGE_RATE_OR_AMOUNT ,SCHEDULE_FLAG,OPERATION_SEQ_NUM,ORGANIZATION_CODE ,ASSEMBLY_ITEM_NUMBER,RESOURCE_CODE,SCHEDULE_SEQ_NUM ,basis_type,EFFECTIVITY_DATE,PROCESS_FLAG,TRANSACTION_TYPE ) values (10 ,1 ,0.001 ,1-- need 1 or 2 , 50 ,‘PRT' ,‘TT-T654/RB/GPS' ,'STORE' ,NULL , 1-- basis_type ,to_date('07-SEP-2005','DD-MON-YYYY')+1/24/60 ,1-- process_flag ,'CREATE' ) ;

  18. Production Cutover • Challenges • Lots of Work in Process • Reporting • Scheduling Process During Transition • The Plan • Leave WIP Alone (for now) • Ensure All New Jobs have Updates Routings • Tweak Capacity to Create ‘WIP Resistance’ • After X Weeks Update any Open Jobs with Old Routings

  19. Open Issues • Production Control Reorg?? • Currently Personnel Segregated by Product Family • Maintaining Capacity • Fine Tuning • Mfg Sched Time Fence vs. ASCP Time Fence • Use of Penalties • Capacity/Usage/Assigned Units

  20. Lessons Learned • Separate Project for Routing Update • Allow Time for WIP to Fill with Updated Routings • Emphasize Clean and Well Maintained Data • Expect and Allow Changes to Standard Costs

  21. What We Did Right • Used Mostly Internal Resources • Completely Revamped Routings • Started in Largest Plant

  22. Questions? ? ? Questions?? ? ?

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