E-Business Suite Manufacturing Applications Strategy, Update, and Roadmap

1. E-Business Suite Manufacturing ApplicationsStrategy, Update, and Roadmap Ramchand RamanVice President, Applications Development

2. Safe Harbor Statement The following is intended to outline our general product direction. It is intendedfor 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

3. Agenda • Manufacturing Business - Current Challenges • Next Generation Manufacturing - Key Drivers • Highlights of EBS Manufacturing - Release 12 and 12.1 • Future Directions • Q&A

4. Today’s Manufacturing EnvironmentIncreased Business Pressures with Globalization Global Customer Base Management Manage varied expectations and service demanding customers spread across the globe Rapid Product Innovation & Supply Constantly innovate and rapidly deliver highly customized, quality products at competitive prices for a broader customer base Complex Supply Chain Network Management Manage complex, dynamic global supply chain networks of partners and suppliers to operate in harmony Global Demand and Supply Coordination Manage demand variability and coordinate supplies internally and externally from different geographical locations Regulatory Compliance Management Comply to standards like S-OX, 21 CFR Part 11, RoHS, WEEE, ISO 9000 and other local, country specific regulatory norms Supply Chain Cost Containment Reduce supply chain costs to stay competitive in an ever expanding global marketplace

5. Corporate Supply ChainManagement Enterprise Resource Planning Customer Relationship Mgmt Business Intelligence Disconnected Homegrown / 3rd Party MES Factory Automation Quality / SPC Maintenance / Service Multiple Plants w/ Different Systems Multiple Contract Manufacturers Typical Information Technology LandscapeOperational Challenges with Disparate Systems

6. The Need for ChangeFrom Fragmented Shop Floor to Integrated Value Chain Demand Driven Lean Manufacturing Lean Execution Automated Management Performance Manual Processes 1 2 3 4 Limited Collaboration Standardization, Foundational Selective Improvements Multi-Enterprise Orchestration

7. Roadmap: Continued Releases & Innovation Ongoing Point Releases Easy to Uptake Planned Released … Major Release 11.5.10 12.0 12.1 12.2 EBS for Endeca Minor Release 12.1.2 12.1.3 12.2.2 12.2.3 12.2.x … Nov 2004 Jan 2007 May 2009 Dec 2009 Aug2010 Nov 2012

8. Oracle E-Business Suite Support Timelines Updated Support Policies for 11.5.10 and 12.1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Dec ‘14 Nov ’13 Nov ‘10 Risk Mitigation for Customer if Upgrade Runs Long 11.5.10 Premier Extended Sustaining Exception Jan ‘15 Jan ‘12 Jan ‘07 Offer Exception to Sustaining Support for first 13 months Longer Support Timeline on Upgraded R12.1 System Premier Extended 12.0 Sustaining GA May ‘17 Dec ‘18 May ‘14 May ‘09 Premier Extended 12.1 GA Extend 12.1 Extended Support thru Dec 2018 Today Waive all uplift fees for 12.1 Extended Support 12.2 GA will start new support timeline For More Info on Announcement, see MOS Doc ID 1495337.1

9. E-Business Suite Manufacturing

10. Model ShopFloor Suppliers EBS Manufacturing at a GlanceIntegrated Planning, Manufacturing, and Supply Chain Execution IntegratedIntelligence Cost Analysis Productivity Integrated Intelligence Integrate with Distribution, Transportation ProductLifecycle Mgmt Planning Real-TimeWIP Visibility Mixed Mode Mfg Execution Mixed Mode Manufacturing For Flexibility Integrate Planning and Execution Repetitive,Project Flow/Lean ETO ATO / CTO MTS Warehousing / Transportation Contract Mfgrs Discrete,Process Lot-Based AssetMaintenance • Planned Orders • Schedule Changes • Component Substitutes • Resources Substitutes Quality Management Sample Analyze Adjust Service Lot / Serial Genealogy Tracking Collaboration with Suppliers, Contractors • Demand Schedules • Configured Order • Quality Specifications • Production Status • Material Availability • Mfg Capacity • Schedules / Changes • Ship Notices • Invoices / Payments MES APIs,DirectAccess EnterpriseShop Floor Suppliers Contract Mfgrs Customer

11. Enabling the Information Driven Value ChainDelivering on Core Principles – Fulfillment Excellence E-Business Suite Manufacturing Drive Compliance Align Value Chain Improve Productivity • Integrated Shop Floor and Logistics Execution • Mixed Mode Manufacturing Operations • Optimized In House and Contract Manufacturing • Demand Driven Planning, Scheduling and Execution • Top to bottom Supply Chain and Financial Integration • Enterprise Quality and CAPA Management • Genealogy, Electronic Records and Signatures • Real-time Shop Floor Controls and Analytics

12. E-Business Suite ManufacturingKey Highlights Release 12/12.1

13. EBS ManufacturingRelease 12 and 12.1 – Key Highlights Discrete Manufacturing/MES Outsourced Manufacturing Manufacturing Quality • Operator and Supervisor functions • Exceptions Management • Electronic Records and Signatures • Operator Skill Validation • Serialized Mfg Enhancements • Time Entry Enhancements • Extensibility • MES Integration • Shop floor device integration • Performance/Usability Improvements • Electronic Records and Signatures • Enhanced Receiving Inspection & CAPA • Chargeable/Shikyu Subcontracting • Buy/Sell Subcontracting • Non-Chargeable Subcontracting Endeca Extensions • Discrete Manufacturing • Process Manufacturing • Inventory Management • Cost Management Converged Inventory • Common Item Master • Dual Unit of Measure Control • Material Status and Advanced Lot Control • Enhanced Inventory Allocation Rules • Deferred ERES & Global Lot Attributes Process Manufacturing/MES • Landed Cost Management • Least Cost Formulation • Ingredient Substitutions • Electronic Batch Records • Touch Screen User Interfaces • Dispensing/Pre-Mix Engineered Systems • In-Memory Cost Management (phase 1) Lot Based Manufacturing (OSFM) Manufacturing Analytics • UI and Open Interface Enhancements • Production Scheduling Support • MES, Quality, Costing, Planning & Inventory

14. Manufacturing Execution System (MES)

15. Optimize Manufacturing OperationsManufacturing Execution Systems for Discrete and Process Industries MES for Discrete Mfg MES for Process Mfg ERP • Operator • Work from dispatch list • Record transactions, qualityinfo, work completion, and time • View work instructions andcomponent info • Report production exceptions • Skills certification • Process Engineer • Manage recipes & advanced process instructions • Production Supervisor • Create & manage batch status • Log non-conformances • Dispensing / Production Operator • Touch Screen User Interface • Pre-weigh designated ingredients • Process batch operations • Operator Certification Corp Mgmt MES Converged Inventory Production Mgmt Shop Floor Control • Supervisor • Review & resolve exceptions • Monitor shop floor progress System Automation & Control • Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management • Reduced TCO / Complexity via Integrated Mfg Mgmt & Production Execution

16. MES Usability Improvements Converged Inventory • Discrete MES • Reduced Screens, Mouse Clicks • Express Transact Components • Assembly Serial# centric Work Order Detail Page • New Extension Hooks – Mass Move • Process MES • More capabilities for Touch Screen UI • Additional Transactions Support

17. Order Management Procurement ASCP Order Management Procurement ASCP Discrete Inventory OPM Inventory Oracle Inventory OPM Recipe / Quality OPM Production OPM Costing BOM / Quality WIP Costing OPM Recipe / Quality OPM Production OPM Costing BOM / Quality WIP Costing Common Inventory for Discrete and Process Mfg • Single Inventory Model • Process features include: • Dual Units of Measure • Grade • Expiration/ Maturation Dates • Material Status • Enhanced inventory allocation rules • Indivisible lots • Support for “child lots” (replace “sublots” in OPM)

18. Outsourced Manufacturing

19. EBS Outsourced Manufacturing • What is it? • A new product in E-Business Suite 12.1.3 that provides original equipment manufacturers (OEM) the ability to model key set of industry standard outsourced manufacturing business processes to track and manage all aspects of the outsourcing business with one or many contract manufacturers. • Who is it for? • The solution is for original equipment manufacturers in all discrete industries such as Industrial Manufacturing, Hi-tech, Medical Devices, Automotive, Aerospace and Defense etc who have outsourced part or all of their manufacturing activities to contract manufacturers and need the visibility into those activities. • What are the key capabilities? • Endeca visualization layer provides accurate and real-time visibility into the overall health of the outsourced manufacturing business related to inventory balances, financial positions, and production bottlenecks such as quality issues, delays, and material shortages that could help mitigate risks to key customer commitments.

20. EBS Outsourced ManufacturingFour categories of visibility into outsourcing business 1 2 Subcontract Order Status Inventory Balances EBS Outsourced Manufacturing Main Point 3 4 Financial Positions Quality

21. Visibility into Outsourced Manufacturing • Key Performance Indicators

22. RMS RMS RMS B B B C C C MP MP MP OEM OEM OEM Outsourced Manufacturing Business Practices Outside Processing (Step Level) Non-Chargeable Outsourcing Drop Ship Components OEM MP A Manufacture Assembly Ship Partial Product A Process Inhouse 10 C B C B Process Outside 20 20 Buy Components Receive Finished Product 30 Process Inhouse Ship Components B C Chargeable/Shikyu Outsourcing * Receive Assembly A Drop Ship Components A Buy/Sell Outsourcing C B Buy Components Virtual Sale of Components Drop Ship Components B C A Virtual Purchase of Assembly A C B Buy Components * Applicable only for Japan, Korea, Taiwan Sell Components (with Markup) B C Buy Assembly A

23. Endeca based Visualization

24. Subcontract Order Status • View status of subcontract orders (delayed, on-time) and component allocations across manufacturing partners

25. Inventory Balances • View quantity and value of components in-transit or at manufacturing partner locations

26. Quality • View reasons for poor quality of outsourced products and their value across manufacturing partners.

27. Financial Positions • View financial positions of subcontract and replenishment orders for a manufacturing partner

28. E-Business Suite Outsourced Manufacturing Business Benefits • Gain full visibility into the overall health of outsourced manufacturing • Quickly view and analyze financial transactions related to subcontract orders • Track quality issues related to supplied components and finished products • Monitor sales and procurement activities to meet on-time customer delivery • Collaborate effectively with approved suppliers and contract manufacturers • Analyze and negotiate service level agreements and pricing to optimize costs • Mitigate risks related to inventory bottlenecks across manufacturing partners

29. Endeca Information Discovery

30. Oracle Endeca Fully Integrated Within EBS E-Business Suite Applications Extensions EBS Endeca In-Memory Information Discovery Structured and Semi-Structured Data Unstructured Data E-Business Suite Database Files Social

31. E-Business Suite Extensions for Endeca Enterprise Asset Mgmt Field Service Supply Chain Management Channel Revenue Management Projects Procurement Order Management HCM • Discrete Manufacturing • InventoryManagementProcess ManufacturingWarehouse Management • Cost Management • Projects Management • Spares Planning • IncidentsDepot Repair • Asset Performance • Work Orders • MaterialsInstalled Base Management • Order Returns • Claims • iProcurement • Candidate Job SearchLearning Management • Order Delays Available Now!

32. Demo Order Management Integration with Manufacturing and Inventory Management Demo

33. Youtube Channel Subscribe Now http://www.youtube.com/OracleEBSdemos

34. Manufacturing Analytics

35. Manufacturing Analytics Pre-packaged KPIs and Dashboards Manufacturing Quality Plan to Produce Process Manufacturing Manufacturing Execution Converged Inventory Manufacturing Quality Production Costing Inventory Sample Reports • Plan to Produce • Production Attainment • Past Due Work Orders • Planned Production • Manufacturing Quality • Quality Summary • Quality Results • Non Conformance • Manufacturing Execution • Work Order Detail • Open Work Orders • WIP Operation Analysis • Scrap Summary • Rework and First Pass Yield • Process Manufacturing • Formulation Yields • Adjusted Formulation Variance • Scaled Formulation Variance • Inventory • Inventory Expirations • Excess and Obsolete Inventory • Inventory Aging • Production Costing • Cost Metrics KPI • Manufacturing Cost Summary • Manufacturing Cost Variance Summary • Cost Trend

36. Mobility

37. EBS Mobile Applications Strategy • iPad access to EBS Self-Service: • OA Framework being certified on Safari • Application Examples: • Expenses • HR Self-Service • Projects time entry • iProcurement • Order Information Portal • Specialty Mobile Applications for EBS: • ADF Mobile-Based • Native Mobile UIs • Mobile device services • Disconnected access • Application Examples: • Mobile Field Service • Mobile Maintenance • Mobile Shop Floor Manager • Mobile Warehouse Manager • Endeca for EBS enhances user experience: • Endeca Applications: • Order Management • Asset Maintenance • Projects • Discrete Manufacturing • Field Service • Channel Management • Oracle Business Intelligence Mobile: • Business Intelligence content on iPhone & iPad

38. In-Memory Cost Management

39. Cost Impact Simulator Impact on product costs from BOM, Routing, Resource, Overheads Cost Comparison Tools Detailed cost elemental comparison and derivations across entities Gross Profit Analyzer What-If simulation capability for cost impact on the product gross margin Inventory Period Health Check Real-time monitoring and mitigation for Period Close bottlenecks View and search Receiving/Inventory/WIP transactions and accounting distributions Solution Summary In-Memory Cost ManagementBuilt and optimized for Oracle Engineered Systems

40. Cost Planning & Optimization Ability to quickly set up and derive resource andoverhead rates Cost Forecasting Predict item costs and inventory valuation using statistical techniques and external factors Cost Variance Analyzer and Reconciliation Cost variance analysis from Manufacturing, Procurement, Landed Costs Streamlined reconciliation for accrual and inventory value across transactional distributions, sub ledger accounting and GL Solution Summary In-Memory Cost ManagementBuilt and optimized for Oracle Engineered Systems

41. Roadmap

42. EBS ManufacturingRoadmap Manufacturing Execution System Endeca Information Discovery Outsourced Manufacturing Manufacturing Quality Manufacturing Quality • Discrete Manufacturing -- Operator centric dashboards • Process Manufacturing -- Operator centric dashboards • Cost Management-- Variance Analyzer-- Reconciliation • Manufacturing Defect Analysis • Project Manufacturing • Lot Based Manufacturing (OSFM) • Master Data Management -- Product, Supplier, Site • ATO/CTO support • iSupplier Portal Integration • Serial and Lot Genealogy • Support for Process Manufacturing • Electronic Kanban • Support for contingent workers • Oracle Time and Labor integration • Usability Improvements • Serialized Manufacturing -- Automatic dekit -- Express transact improvements Process Execution/Financials Converged Inventory • Open interfaces for batches and transactions • Improved OPM Financials -- Performance Improvements -- Functional Enhancements Engineered Systems • In-Memory Cost Management (phase 2)