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EMPOWERING MOTOROLA SOLUTIONS’ SUPPLY CHAIN TRANSFORMATION

Sept. 26, 2013. EMPOWERING MOTOROLA SOLUTIONS’ SUPPLY CHAIN TRANSFORMATION. CHRIS ARMBRUSTER SENIOR DIRECTOR, BUSINESS TRANSFORMATION MOTOROLA SOLUTIONS KURT KLUSCH TRANSFORMATION MANAGER & PROCESS ARCHITECT MOTOROLA SOLUTIONS MIKE MORSCH SENIOR DIRECTOR, SUPPLY CHAIN SYSTEMS

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EMPOWERING MOTOROLA SOLUTIONS’ SUPPLY CHAIN TRANSFORMATION

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  1. Sept. 26, 2013 EMPOWERING MOTOROLA SOLUTIONS’ SUPPLY CHAIN TRANSFORMATION CHRIS ARMBRUSTERSENIOR DIRECTOR, BUSINESS TRANSFORMATIONMOTOROLA SOLUTIONSKURT KLUSCHTRANSFORMATION MANAGER & PROCESS ARCHITECTMOTOROLA SOLUTIONS MIKE MORSCHSENIOR DIRECTOR, SUPPLY CHAIN SYSTEMS MOTOROLA SOLUTIONS

  2. 83 CALL TO ACTION FOR + = 2011CHANGES TRANSFORMATION YEARS MOTOROLA SOLUTIONS Renamed Remaining Government & Enterprise ALIGN PROCESSES & I.T. WITH MORE FOCUSED BUSINESS Spun Off Mobile Devices and Home MOTOROLA MOBILITY Divested Wireless Network Infrastructure NOKIA SIEMENS NETWORKS

  3. MOTOROLA SOLUTIONS MISSION-CRITICAL COMMUNICATIONS FOR GOVERNMENT AND ENTERPRISE CUSTOMERS 2012 REVENUE: $8.7 BILLION 22,000 EMPLOYEES MANUFACTURING IN 4 COUNTRIES CUSTOMER FOCUSED VERTICALS GOVERNMENT MANUFACTURING & FIELD MOBILITY TRANSPORTATION & LOGISTICS RETAIL & HOSPITALITY ENERGY & UTILITIES EDUCATION & HEALTHCARE SOLUTIONS DRIVEN PRODUCT + APPS + SERVICES TECHNOLOGY LEADERS GOVERNMENT ENTERPRISE NEXT GENERATION PRIVATE BB iC&C PCR iDEN ADC SW EMC ASTRO TETRA RFID ENC

  4. OUR SUPPLY CHAIN FOOTPRINT 3PL 3PL 3PL 3PL 3PL 3PL 3PL 3PL MOTOROLA MANUFACTURING MOTOROLA DISTRIBUTION 3RD PARTY DISTRIBUTION

  5. BREAKING THE LEGACY CYCLE BREAKHERE

  6. 2011 - TRANSFORMATION BEGINS INITIALSTATE DESIREDSTATE

  7. MANAGING CHANGE GRADUALLY

  8. TEAM STRUCTURE IS A CRITICAL SUCCESS FACTOR • GLOBAL PROCESS OWNERS • FUNCTIONAL TRACK LEADS • AMBASSADORS OF CHANGE • ALREADY KNOW WHO THESE PEOPLE ARE LEADERSHIP SUPERUSERS TRADING PARTNERS PROCESS PRACTITIONERS • SUPPLIERS, 3PLS & MFG PARTNERS • COLLABORATION OPPORTUNITIES • END USERS • KEY FOCUS OF CHANGE MANAGEMENT

  9. INTERIM PROCESS Create Forecast Position & Level Demand BLUEPRINT Demand Planner Plan Safety Stock Collect Plan Inputs A Central Planner CRSD Plan ASCP ASCP APCC APCC IO ASCP ASCP Run Plans Validate Plans Load Data Warehouse SSD Plan Resched. Plan Rel. Planned Orders to IRs Review CRSD- SSD Gaps Rev. Resched. Exceptions Implement New SSD Review Delinquencies Analyze Revenue APCC BLUE BOX DC Planner Adjust Sales Order Priorities DEMANTRA Review Total Site Demand Review Exceptions Rel. Planned Orders to IRs Rel. Planned Orders to DJs ASCP ASCP ASCP ASCP ASCP ASCP RP PS ASCP ASCP Production Plnr Simulate Plans & Scenarios Clear To Build ApplyFair Share Optimize Prod. Schedule Review Exceptions Manage Shortages Update Supply Commit A = ORACLE VCP LEVERAGE Buyer Rel. Planned Orders to DPO

  10. PROCESS TRANSFORMATION

  11. PLANNING TRANSFORMATION APPROACH

  12. CAPABILITY ROADMAP

  13. OUR PLANNING JOURNEY START FINISH CUSTOMER CUSTOMER SUPPLIERS DEMAND DISTRIBUTION PRODUCT PARTS CENTRAL PLANNING MANUFACTURING MANUFACTURING DISTRIBUTION SUPPLIERS ASSEMBLY

  14. THE SIZE OF CHANGE REQUIRES AN INTERIM PROCESS CUSTOMER SUPPLIERS DEMAND PRODUCT LEGACY PROCESS TEMPORARILY COEXISTS WITH NEW PROCESS CENTRAL PARTS PLANNING MANUFACTURING DISTRIBUTION MANUFACTURING ASSEMBLY SUPPLIERS

  15. OUR ASCP PLAN RUNS MAKE-XFER (SSD) EXECUTION(CRD) MATERIAL (CRD) BACKLOG (CRD) ATP(SSD) SIGNAL TO LEGACY TOOLS SIGNAL TO FACTORY SIGNAL TO CUSTOMER SIGNAL TO DISTRIBUTION SIGNAL TO SUPPLIERS UNCONSTRAINED UNCONSTRAINED CONSTRAINED CONSTRAINED CONSTRAINED FIRST SSD FOR NEW S.O. DIRECT BUY RELEASES & SHORTAGE MANAGEMENT TRADING PARTNER COLLABORATION SSD IMPROVEMENT TRANSFER MFG TO DC

  16. TECHNOLOGY TRANSFORMATION

  17. ORACLE MODULES Advanced Planning Command Center • Close the loop with embedded analytics • Integration with operational planning applications • Leverage pre-built dashboards • Standard content and KPIs Global Order Promising Global Order Promising Order Management Trading Partner Collaboration Oracle Production Scheduling (Factory Scheduling) Production Scheduling Inventory Optimization Demantra (Demand Mgmt) Demantra (Real-Time S&OP) Inventory Optimization Advanced Supply Chain Planning (ASCP) Rapid Planning Alignment & Reporting Tool • Consensus Planning tool “What If” Scenarios Analysis Global Supply Planning Tool Demand Configurator Demand Positioning Tool

  18. START – REGIONAL ERPS & LEGACY PLANNING TOOLS CUSTOMER FACING SYSTEMS GLOBAL ASIA AMERICAS EUROPE (GOVERNMENT) (GOVERNMENT) (GOVERNMENT) (ENTERPRISE) ORACLE 11i ORACLE 11i SAP ORACLE 11i UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS SUPPLIER FACING SYSTEMS

  19. STEP 1 – EBS & CORE VCP APPLICATIONS FOR 1 SBU CUSTOMER FACING SYSTEMS ASIA AMERICAS EUROPE (GOVERNMENT) (GOVERNMENT) (GOVERNMENT) TRILOGY ORACLE R12 ORACLE 11i ORACLE 11i ORACLE 11i UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS VCP CORE UNIQUE LEGACY PLANNING TOOLS SUPPLIER FACING SYSTEMS

  20. STEP 2 – ADD ASIA AND COMPLETE VCP FOOTPRINT CUSTOMER FACING SYSTEMS AMERICAS EUROPE TRILOGY (GOVERNMENT) (GOVERNMENT) ORACLE R12 DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS ORACLE 11i ORACLE 11i SUPPLIER FACING SYSTEMS

  21. FINAL STEP – ADD EUROPE AND AMERICAS CUSTOMER FACING SYSTEMS TRILOGY ORACLE R12 DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS SUPPLIER FACING SYSTEMS

  22. Demantra - LessonsLearned • Are you CTO (Configure to Order)? • CTO is tough because… • Not a flat structure in the tool like non-CTO • Unique table structures affect reports, views, processes and worksheet • Historical data conversions are difficult • Lessons: • Allow significant time for data conversion testing • Carefully think through your planning hierarchy • Utilize standard Oracle interfaces, workflows and data series with limited modifications PAGE 22

  23. ASCP Lessons learned • Understand that ASCP is a complex analytical application • Model Supply Planning based on Holistic advance planning capabilities • Decision rules tailored to focus on: • Reduction of Inventory • Improve productivity • Supplier and resource capacities • Must understand implications of changes in many factors: • Master Data, Delivery decisions, Make changes, Purchasing/procurement decisions • Sourcing Rules, Order management rules, Demand Classes, Order priorities, lead times, etc… • Constrained vs Unconstrained Plans Well trained internal team With qualified System Integrator and Oracle a must! All must be considered simultaneously to tune ASCP PAGE 23

  24. ASCP Plan Process – Global schedule challenge Long plan run times limit work hours in a global environment INITIAL PLAN RUN TIMES WERE 14 HOURS AND MORE, BUT TUNING REDUCED TO 4 HOURS. PAGE 24

  25. VCP lessons learned PAGE 25

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