Keefe Ho Principal Consultant

1
(No Transcript)
2
(No Transcript)
3
(No Transcript)
4
Keefe HoPrincipal Consultant
5

• Move from MRP to Advanced Planning
• Case Sharing
• The Coverage of Advanced Planning in Industry
• Operation Dilemma - Industry Drivers
• Why Advanced Planning, Not MRP
• Case Background - The Problem Business
  Requirement
• How we approach it
• Share Lessen Learnt with You

6
The Coverage of Advanced Planning in Industry
Component Mfg
2nd Suppliers
Supply Base
You
Contract Mfg
Sitex
3rd PL
Sub Assy Mfg
Retail
Hubx
Distribution
Customers
7
Operation Dilemma - Industry Drivers
DemandVariability
IncreasingProductComplexity
Custom and Highly Integrated Product Designs
Late and Often Incorrect Customer Forecasts
Fast Product Obsolescence Limited Profit
Opportunity
Continued Emergence of Lower Cost Producers
DecreasingProductLifecycles
MarginErosion
8
Industry Transformation
Today
Tomorrow

• Customer forecast errorsresult in missed
  deliveries
• Excessive inventories
• Outsource to fill product line gaps and reduce
  cost
• Independently developed products for broad use
• Manual and point-to-point collaboration

• Demand variability does not adversely impact
  service levels
• Planning for strategic inventory management
• Outsource anything that is non-core and not
  proprietary
• Customer-specific designs and products
• Pervasive network collaboration

9
Industry Goals
Improve Customer Responsiveness Accept Your
Customers Bad Forecasts Gain Real-Time Global
Supply Demand Visibility
Sustain Profitability Improve Margins Focus on
Core Competencies Streamline Operations, Manage
Costs

• Reduce Time-to-Market
• Invest in RD for Next Gen Technologies
• Convert Design Ins into Design Wins

10
Industry Opportunities

• Forecast Accuracy 25-80
• Productivity 30
• Profit Margin 5-15
• Inventory Carrying Cost 25-60
• Order Fulfillment Time 30-50
• Total Supply Chain Costs 25-50

Source Pittiglio Rabin Todd McGrath (PRTM)
11
Why ASCP, Not MRP
Oracle Tools
Features
12
Move from MRP to Advanced Planning
Factory
Supp1
Hub1
RT-SMT
Cust1
RT-DIP
RT-ASY
TR
Comp
Supp2
Outsourcing
Cust2
RT-Outside
Comp
Factory
Hub1
Cust3
RT-SMT
RT-DIP
RT-ASY
Supp2
TR
Comp
Cust4
13
Move from MRP to Advanced Planning

• Case Background
• The Problem Business Requirement
• Multiple Legal Entity Multiple Inventory
  Organization spread in TW CN
• Frequent product updates
• High consumer demand
• Limited manufacturing capacity
• Long lead times (Long Planning Cycle)
• Powerful retailers

14
Move from MRP to Advanced PlanningThe Problems
or Pains
Factory
Supp1
Hub1
RT-SMT
Cust1
RT-DIP
RT-ASY
TR
Comp
Supp2
Outsourcing
Cust2
RT-Outside
Comp
Factory
Hub1
Cust3
RT-SMT
RT-DIP
RT-ASY
Supp2
TR
Comp
Cust4
Problem Size Num of Org 9 Num of
Item 50000 Num of Suppliers500
Level of BOM 8 Level of Routing 35
Num of Operation/per Routing 12

15
Move from MRP to Advanced Planning

• Business Requirement
• Multi-Org Planning Single global supply chain
  plan to execute from
• Intelligent Substitution of Items To be able to
  optimize the inventory by minimizing the creation
  of new supplies when the demand can be satisfied
  by substitution, thus reducing inventory carrying
  cost, reducing obsolescence and increasing the
  service levels.
• Alternate Routing Optimal use of resources to
  build the products by selecting the best
  available alternate routings.
• Capacity fulfillment for Internal production
  outside supplier
• Accurate Order Promising
• Building a well defined forecasting process and
  ability to consume the sales orders from the
  forecast.

16
Move from MRP to Advanced PlanningBusiness
Requirements
Factory- TW
Supp1
RT-SMT
Cust1
RT-DIP
RT-ASY
TR
Comp
Supp2
Outsourcing
Cust2
RT-Outside
6. Bonded vs non-Bonded
Comp
Factory- CN
Hub3
Cust3
RT-SMT
RT-DIP
RT-ASY
Supp3
TR
Comp
Cust4
17
Move from MRP to Advanced Planning

• Business Gains

18

• Move from MRP
• to Advanced Planning
• How we approach it

19
A Planners Daily Life in a Week

• Wed FCST SO Enter
• Run Consume plan( Data
  Collection , ODP generate FCST)
• Sales review consumption report
  and modify FCST
• Run ASCP-I (capacity critical
  item )
• Host Interlock Meeting between
  GPMCLPMCSales
• ------------------------------------------
  --------------------------------------------------
  ----
• Thu Interlock meeting (Check ASCP-I Modify
  SO, FO Shipping Date)
• GPMC run Net Change (modify
  capacity, make item schedule)
• PO release for Critical Item
  Commit Critical Item Schedule
• Data Collection (SO/INV/WIP/PO
  only)
• Run ASCP-II (capacity All item
  )
• --------------------------------------------------
  --------------------------------------------------
  ----
• Fri Release PO,IR,WO

20
Move from MRP to Advanced Planning

• Share Lessen Learnt with You
• Phase Approach for Advanced Planning

21
From MRP to Advanced PlanningA Rapid ROI Approach

• Constrained single holistic plan for the entire
  supply chain
• Improve plan quality by recommend alternates
• Generate feasible plans

• Priority based decisions
• Cost based optimization

Added Value

• Constrained global master plan for key components
  and resources
• Plus constrained site level detailed plan
• Improve plan quality by recommend alternates
• Generate feasible plans

Optimized ASCP (Plan Optimization)
Optimized
Option 2
Constrained ASCP (Single Holistic Plan)

• A single plan across all sites
• Reduce planning cycle time
• Improved exception resolution
• Online planning
• Integrated performance management

Constrained
Constrained ASCP (Multiple Sequential Plan)
Option 1
Readiness Assessment
Unconstrained ASCP (Multi-Site MRP)
Unconstrained
Time
Phase 0 1 Wk
Phase 1 2.5 Month
Phase 2 2.5 Month
Phase 3 1 Month
Oracle Applications (10.7, 11.0, 11i)
You Are Here
22
Q

A
23
(No Transcript)