Appsworld 2003 Integrating the Supply Chain in Process Industries Cesare Kim 26 June 2003

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Appsworld 2003Integrating the Supply Chain in
Process IndustriesCesare Kim26 June 2003
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Oraplus Background
We leverage Oracle technology in order to
achieve major cost reductions and provide
strategic advantage to our clients

• Founded in 1997
• Offices in Italy, France, USA and the UK
• Specialised in the implementation of Oracle based
  solutions
• Vast repository of technical and functional
  expertise
• Participation in over 40 major projects in 8
  countries in 3 continents
• Oracle Certified Partner
• Extensive experience in Remote Oracle Support and
  Hosting
• Certified ISO 9001 EN2000 for the design,
  development, management and support of solutions
  based on Oracle Technology

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Agenda
Introduction The OPM Solution The Oracle APS
Solution ASCP and Manufacturing Scheduler
Integration Case Study for a Bio-Chemical
Company QA
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Introduction
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Third-party APS systems

• OPM has traditionally integrated with i2 and
  other packages such as Manugistics
• Different look and feel for the different modules
• Three points of failure
• OPM
• Links
• Third-party APS system
• Different vendors with different support policies
• Different vendors with different upgrade and
  technology stategies

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An Integrated Solution

• Same look and feel
• Single sign-on
• Single-vendor interface
• Integrated support/upgrade strategy
• No need for customization/data cleaning due to
  architectural differences
• Lower TCO

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The OPM Solution
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Native Planning Capabilities

• Static lead-time and standard lot size definition
• Identification of standard procurement leadtimes
  and lot sizes
• Auto-calculation of standard leadtimes for
  manufactured goods
• Quick single planning run
• OPM MRP runs can be multi-warehouse and are very
  quick to produce a single MPS/MRP
• Infinite Capacity Planning
• Infinite Capacity capability only.
• Graphical drag and drop interface allows quick
  manual leveling
• Inter-organization transfer capability
• Creation of an internal distribution network with
  specific transfer rules

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Modelling Considerations

• Model creation based on simplification Occams
  razor
• Identify critical processes
• Identify critical resources
• Model creation based on standard Client processes
• Pareto Principle (80 of the issues are resolved
  with 20 of the effort)
• Model by increasing complexity
• Initial model should be limited to simple
  processes to enhance Client understanding of OPM
• As processes and resources increase, so do their
  interactions, and a model that approaches reality
  is developed collaboratively

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Bio-Chemical Process Modelling

• Chemical and Biological synthesis processes are
  different for assembling and mixing processes
• Reactor planning requires fixed leadtimes -
  resource capacities have different meanings
• The interaction between different operations can
  be very complex as constraints are not fixed but
  depend on the interaction of all processes

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The Oracle APS Solution
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Supply Chain Modelling

• Multi-server Architecture
• Multi-site
• Planning across time-zones
• Resource and Supplier capacities
• Single-Cycle Planning run
• Model Procurement and Manufacturing
  simultaneously
• Optimise by Objectives

Ingredients and Resources
Intermediate or Bulk Products
Supplier
Finished Product
Customers
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Manufacturing Scheduling

• Modelling environment on top of Transactional
  System
• Capacity-constrained fine scheduling
• Setup optimization
• Resource rather than Material-centric

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ASCP Manufacturing Scheduler Integration with
OPM
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ASCP Architecture

• Logical segregation of Transactional and Planning
  Data
• Data can be on one or two physical machines
• Integration between the two worlds by Data
  Collection
• Normalisation of data from heterogeneous
  Transactional systems
• Return to Transactional system as recommendations

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ASCP OPM Integration

• Model Formulas and Routings from OPM
• Model Effectivities using OPM Recipes
• Model Resource Capacities using OPM
• Model Suppliers using Supply Chain Planning

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ASCP OPM Integration Limits

• Cannot model charges
• Powerful but delicate sinergy
• Information is distributed over many modules
• Significantly more maintenance at the technical
  level

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Manufacturing Scheduling OPM Integration

• Take a snapshot of current jobs
• Calculate resource availabilities
• Manually level resources by drag and drop
• Automatically schedule using optimization
  objectives and constraints

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Case Study
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Common Bio-Chem Requirements

• Need to
• Plan reactors
• Coordinate extremely long and complicated
  routings with significant resource overlaps
• Manage maintenance
• Manage cleaning and setups
• Schedule operations over inactive periods
• Plan across a very long horizon for procurement

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Modelling Reactors

• Chemical and biological synthesis processes are
  quantity independent
• The reactor volumetric capacity will only dictate
  maximum quantity
• Reaction time is based on process not quantity
• Charge functionality partially addresses issue
• Reactor volumetric capacity is modelled but this
  is often insufficient
• Many companies manage different levels of detail
  for planning and fabbrication modelling

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Generic Resource
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Plant Resource
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Operation Header Information
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Operation Detail Information 1/2
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Operation Detail Information 2/2
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Objective Complete Reactor Saturation
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Maintenance Management

• Can use Resource Exceptions for basic scheduled
  maintenance
• Enterprise Asset Management will be interfaced
  with ASCP to have a completely integrated
  Management suite

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Manage Reactor Cleaning and Setup

• Cleaning operations and setups depending on the
  material processed in the previous batch
• Modelling different recipes is a possible
  solution
• Manually inserting downtimes is another
  possibility
• Using Manufacturing Scheduler for fine scheduling
  is probably the best solution

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Break Management

• Special cleaning processes may be required if
  reactors are inactive for too long
• Some operations may not be interrupted
• Model operations for minimum length to complete
  operations

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Procurement

• Many tipologies of ingredients can be purchased
  at cheaper rates in relatively distant countries
• Need to plan for long procurement cycles
• Use ASCP long-term Procument Planning

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Prototype Solution

• Use ASCP to develop a long-term infinite capacity
  plan
• Actuate mid-term finite capacity procurement and
  manufacturing
• Fine schedule using Manufacturing Scheduler
• Minimal level of detail necessary to schedule and
  plan
• Complete automation is difficult using a
  simplified model so a graphical drag and a drop
  interface becomes crucial for planners

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Lessons learned

• Stay up to date with latest rollups during
  implementation
• ASCP is an integrating force
• Include a heavy patch installation and testing
  contingency
• Unexpected results are often due to setup issues
• Profile Options!

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• QA