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Optimize Manufacturing Operations

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Optimize Manufacturing Operations

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    2. 2 Safe Harbor Statement

    3. 3 5 of the top 10 global Chemical Companies run Oracle Applications - Reuters On Line in Jan 2005 8 of the top 12 High Performance Chemical Companies run Oracle Applications - Accenture Differentiation: Driving High Performance, 2005 5 of the top 10 global Chemical Companies run Oracle Applications - Reuters On Line in Jan 2005 8 of the top 12 High Performance Chemical Companies run Oracle Applications - Accenture Differentiation: Driving High Performance, 2005

    4. 4 Leadership in Chemicals Optimize Manufacturing Operations Results Achieved by Oracle Customers Agenda

    5. 5 “Our growth strategies: market-driven science, differentiated marketing, customer centric fullfillment.” Mark Vergnagno, Group VP DuPont Safety & Protection, Citigroup Global Chemical Conference, 2006 “Rising and volatile purchased feedstock and energy costs increase Dow’s operating costs and add variability to earnings.” Dow Chemical 2005 Form 10K, Risk Factors “As the chemical industry becomes increasingly global, issues related to the supply chain are increasingly critical to industrial competitiveness.“ Technology Vision 2020, The U.S. Chemical Industry “Our growth strategies: market-driven science, differentiated marketing, customer centric fullfillment.” Mark Vergnagno, Group VP DuPont Safety & Protection, Citigroup Global Chemical Conference, 2006 “Rising and volatile purchased feedstock and energy costs increase Dow’s operating costs and add variability to earnings.” Dow Chemical 2005 Form 10K, Risk Factors “As the chemical industry becomes increasingly global, issues related to the supply chain are increasingly critical to industrial competitiveness.“ Technology Vision 2020, The U.S. Chemical Industry

    6. 6 “Our growth strategies: market-driven science, differentiated marketing, customer centric fullfillment.” Mark Vergnagno, Group VP DuPont Safety & Protection, Citigroup Global Chemical Conference, 2006 “Rising and volatile purchased feedstock and energy costs increase Dow’s operating costs and add variability to earnings.” Dow Chemical 2005 Form 10K, Risk Factors “As the chemical industry becomes increasingly global, issues related to the supply chain are increasingly critical to industrial competitiveness.“ Technology Vision 2020, The U.S. Chemical Industry “Our growth strategies: market-driven science, differentiated marketing, customer centric fullfillment.” Mark Vergnagno, Group VP DuPont Safety & Protection, Citigroup Global Chemical Conference, 2006 “Rising and volatile purchased feedstock and energy costs increase Dow’s operating costs and add variability to earnings.” Dow Chemical 2005 Form 10K, Risk Factors “As the chemical industry becomes increasingly global, issues related to the supply chain are increasingly critical to industrial competitiveness.“ Technology Vision 2020, The U.S. Chemical Industry

    7. 7 Agenda Leadership in Chemicals Optimize Manufacturing Operations Results Achieved by Oracle Customers

    8. 8

    9. 9 Oracle Process Manufacturing Increase Insight and Control of Manufacturing Processes You can immediately react to production issues, and optimize capacity and ingredient usage. Ingredients are associated to each operational step and the operation duration is automatically adjusted based on the ingredient quantity in each step. Step level management allows you to compare planned versus actual, record process parameters, and make iterative real-time adjustments You can immediately react to production issues, and optimize capacity and ingredient usage. Ingredients are associated to each operational step and the operation duration is automatically adjusted based on the ingredient quantity in each step. Step level management allows you to compare planned versus actual, record process parameters, and make iterative real-time adjustments

    10. 10 Advanced Inventory Management for Process Industries Single Inventory Model Org specific attributes Process features include: Flexible balance tracking in two units of measure Grade Expiration/ Maturation Dates Material Status Enhanced inventory allocation rules Indivisible lots Support for “child lots” (replace “sublots” in OPM) Process Manufacturing flags In R12 and beyond there will be only one inventory module supporting both process and discrete organizations. Note that the organization type distinction (process vs discrete) will still be required as the manufacturing, costing and quality applications are not converging in this release. Although Oracle Inventory will integrate with both product suites, users must still determine their organization type in order to indicate which costing application, which production application and which quality application they will use. In R12 and beyond there will be only one inventory module supporting both process and discrete organizations. Note that the organization type distinction (process vs discrete) will still be required as the manufacturing, costing and quality applications are not converging in this release. Although Oracle Inventory will integrate with both product suites, users must still determine their organization type in order to indicate which costing application, which production application and which quality application they will use.

    11. Quality Attributes The OPM process inventory model enables precise inventory management. Items can exist in many warehouses with different rules. Some of the main inventory options available to you include: ·        Warehouse Definition: A warehouse can be a tank farm, rail siding, a racked warehouse, a floor space, or any designation that you choose. ·        You can choose to divide your warehouse into locations which can further breakdown the physical location of the inventory. Examples of locations are Tank 1, Tank 2, Aisle3/Rack4. ·        Lot control is another option that provides a traceability number for inventory. When you choose to use lot control, you turn on an additional option of sublot control which allows you to manage your inventory at an additional level of granularity. For example, you may have a production quantity as a lot but the actual drum is a sublot. ·        User-defined status rules allow the usage restriction of inventory and segregation and analysis; for example, you may define item-specific shelf life and retest intervals, and potency. ·        You can subdivide lot and sublot-controlled items into user-defined grade control, for example Grade A, B, or C. For quality purposes, quality specifications can be defined for a lot, and they can be specific to a production batch and step, customer, or supplier. This allows an unlimited set of quality measures and tests for analysis purposes. ·         To help you maximize inventory usage and minimize costs, rule-based allocation procedures can be established. At the item and warehouse level, OPM can automatically allocate inventory on a first in-first out or first expired-first out basis. This is especially critical in the food and beverage industry where shelf-life is a critical consideration. ·         Maximum flexibility is provided for classification of items into an unlimited number of categories. Track & Trace To ensure compliance with government regulations, market demands, or internal quality assurance mandates, Oracle Process Manufacturing Release 11i delivers bi-directional lot genealogy inquiry, reporting and analysis capabilities that enable users to trace materials enterprise-wide from receipt through customer shipment. OPM provides intuitive user access to lot genealogy information, improves responsiveness to lot quality problems, and minimizes the cost of product recalls, by answering these critical questions: ·        “What products were delivered to which customers?” ·        “Which other customer shipments may be at risk?” ·        “What were the quality test results for this lot of product and the ingredients which went into making it?” ·        “Which supplier lots were the source of the contamination?” ·        “What other material was stored near the contaminated material?” ·        “Which lots of product passed through this refrigeration unit whose temperature dropped out of tolerance last Tuesday?” Quality Attributes The OPM process inventory model enables precise inventory management. Items can exist in many warehouses with different rules. Some of the main inventory options available to you include: ·        Warehouse Definition: A warehouse can be a tank farm, rail siding, a racked warehouse, a floor space, or any designation that you choose. ·        You can choose to divide your warehouse into locations which can further breakdown the physical location of the inventory. Examples of locations are Tank 1, Tank 2, Aisle3/Rack4. ·        Lot control is another option that provides a traceability number for inventory. When you choose to use lot control, you turn on an additional option of sublot control which allows you to manage your inventory at an additional level of granularity. For example, you may have a production quantity as a lot but the actual drum is a sublot. ·        User-defined status rules allow the usage restriction of inventory and segregation and analysis; for example, you may define item-specific shelf life and retest intervals, and potency. ·        You can subdivide lot and sublot-controlled items into user-defined grade control, for example Grade A, B, or C. For quality purposes, quality specifications can be defined for a lot, and they can be specific to a production batch and step, customer, or supplier. This allows an unlimited set of quality measures and tests for analysis purposes. ·         To help you maximize inventory usage and minimize costs, rule-based allocation procedures can be established. At the item and warehouse level, OPM can automatically allocate inventory on a first in-first out or first expired-first out basis. This is especially critical in the food and beverage industry where shelf-life is a critical consideration. ·         Maximum flexibility is provided for classification of items into an unlimited number of categories. Track & Trace To ensure compliance with government regulations, market demands, or internal quality assurance mandates, Oracle Process Manufacturing Release 11i delivers bi-directional lot genealogy inquiry, reporting and analysis capabilities that enable users to trace materials enterprise-wide from receipt through customer shipment. OPM provides intuitive user access to lot genealogy information, improves responsiveness to lot quality problems, and minimizes the cost of product recalls, by answering these critical questions: ·        “What products were delivered to which customers?” ·        “Which other customer shipments may be at risk?” ·        “What were the quality test results for this lot of product and the ingredients which went into making it?” ·        “Which supplier lots were the source of the contamination?” ·        “What other material was stored near the contaminated material?” ·        “Which lots of product passed through this refrigeration unit whose temperature dropped out of tolerance last Tuesday?”

    12. 12 New Features for Process Central item master Organization specific item attributes Leverage Product Data Hub (PDH) Improved Physical and Cycle Counting methods Vendor-Managed and Consigned Inventory Warehouse Management Mobile Supply Chain Applications Labor Management Additional Lot Management Transactions via MSCA Lot Merge Lot Split Lot Translate Flexible Attribute Definition / Attribute Inheritance Leverage move orders and reservations in Batches Of course a main component of the converged model is a single item master. The OPM item master will be removed and we are enhancing the Oracle Inventory item master to support all of the process features you currently have. You will no longer need to worry about any item synchronization triggers, nor any dual setups. Your items will also be organization-specific, so you can choose many of the item attributes to be org-specific as well, including units of measure. You will also have additional control to limit the items that users can access, based on their organization access. You will be able to use reservations, which are a guarantee of inventory availability for sales orders, or production batches. These are considered hard allocations, as opposed to OPM’s typically soft allocations. Reservations also allow you to better link supply with demand for several types of transactions. Oracle inventory also offers consigned and vendor-managed inventory management, which you will be able to leverage. We know that many of you are interested in warehouse management and mobile supply chain applications. By virtue of the fact that we will be working with a single inventory model, you will be able to use these products as well, should you choose to license them. We are currently reviewing the designs to incorporate process functionality, like dual UOMs and grade control into these applications, as appropriate. You will also be able to freely transfer material between process and discrete manufacturing entities, if you need to use multiple manufacturing products, like, OPM, WIP and Flow manufacturing. OPM MAC will be replaced with a new subledger architecture, which actually took a lot of the flexibility of OPM MAC and built on it. The new subledger architecture will be common the E-Business Suite and Leslie Hershey will talk more about it later in the presentation. You will also gain additional query and reporting capabilities, including the inventory workbench, which gives you a multi-level look at your inventory positions in a flexible, hierarchical tree-structure user interface. Of course a main component of the converged model is a single item master. The OPM item master will be removed and we are enhancing the Oracle Inventory item master to support all of the process features you currently have. You will no longer need to worry about any item synchronization triggers, nor any dual setups. Your items will also be organization-specific, so you can choose many of the item attributes to be org-specific as well, including units of measure. You will also have additional control to limit the items that users can access, based on their organization access. You will be able to use reservations, which are a guarantee of inventory availability for sales orders, or production batches. These are considered hard allocations, as opposed to OPM’s typically soft allocations. Reservations also allow you to better link supply with demand for several types of transactions. Oracle inventory also offers consigned and vendor-managed inventory management, which you will be able to leverage. We know that many of you are interested in warehouse management and mobile supply chain applications. By virtue of the fact that we will be working with a single inventory model, you will be able to use these products as well, should you choose to license them. We are currently reviewing the designs to incorporate process functionality, like dual UOMs and grade control into these applications, as appropriate. You will also be able to freely transfer material between process and discrete manufacturing entities, if you need to use multiple manufacturing products, like, OPM, WIP and Flow manufacturing. OPM MAC will be replaced with a new subledger architecture, which actually took a lot of the flexibility of OPM MAC and built on it. The new subledger architecture will be common the E-Business Suite and Leslie Hershey will talk more about it later in the presentation. You will also gain additional query and reporting capabilities, including the inventory workbench, which gives you a multi-level look at your inventory positions in a flexible, hierarchical tree-structure user interface.

    13. 13 Plant to Enterprise Strategy

    14. 14 Optimize Profit Through Least Cost Formulation

    15. 15 Automation of Manufacturing

    16. 16 Automation of Manufacturing

    17. 17 Wild Chooses Oracle to Replace Existing mySAP ERP

    18. 18

    19. 19 Computer Aided Formulation

    20. Capture and Meet Unique Customer Requirements

    22. 22 Superior Quality Management Through Formula Simulation and Optimization

    23. 23 Colorcon Achieves Manufacturing Excellence COMPANY OVERVIEW Pennsylvania-based global manufacturing company with 1100 employees Develops and supplies specialty products for the pharmaceutical, food, and non-toxic printing industries SOLUTIONS Implement best practices in conjunction with Oracle Process Manufacturing A single global instance of Oracle E-Business Suite SOLUTIONS Implement best practices in conjunction with Oracle Process Manufacturing A single global instance of Oracle E-Business Suite

    24. 24 Summary

    25. 25

    26. 26

    27. 27 Market-Leading Middleware Platform

    28. 28 Oracle’s People Advantage We work with thousands of customers to ensure that our products are designed with your needs in mind. User communities are around the world, in every industry, across product linesWe work with thousands of customers to ensure that our products are designed with your needs in mind. User communities are around the world, in every industry, across product lines

    29. 29 Chemical Industry Partners

    30. 30 Leadership in Chemicals Optimize Manufacturing Operations Results Achieved by Oracle Customers Agenda

    31. 31 5 of the top 10 global Chemical Companies run Oracle Applications - Reuters On Line in Jan 2005 8 of the top 12 High Performance Chemical Companies run Oracle Applications - Accenture Differentiation: Driving High Performance, 2005 5 of the top 10 global Chemical Companies run Oracle Applications - Reuters On Line in Jan 2005 8 of the top 12 High Performance Chemical Companies run Oracle Applications - Accenture Differentiation: Driving High Performance, 2005

    32. 32 What Customers are Achieving in Optimizing Manufacturing and Logistics

    33. 33 Industry Quotes “Adopting the Numetrix applications as part of the SCP suite makes sense for Oracle because these products are more mature and functionally rich. Building on its investments during the past several years and Oracle's strength in process ERP with Oracle Process Manufacturing, Oracle has been gaining momentum in process manufacturing.” “Adopting the Numetrix…” quote is from Magic Quadrant for Supply Chain Planning in Process Manufacturing Industries, March 2006 “Adopting the Numetrix…” quote is from Magic Quadrant for Supply Chain Planning in Process Manufacturing Industries, March 2006

    34. 34 The Oracle Difference

    35. 35

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