22
ASCP Workshop JANUARY 6, 2015 Using Oracle ASCP Engine Developing a Successful Global Sourcing Strategy

ASCP Workshop

Embed Size (px)

Citation preview

Page 1: ASCP Workshop

ASCP Workshop

JANUARY 6, 2015

Using Oracle ASCP Engine Developing a Successful Global Sourcing Strategy

Page 2: ASCP Workshop

2

Agenda

• Introduction

• Forecast Upload (Manual)

• VCP Data Collection & Plan Run (Automatic) Planners Workbench

• Review Supply/Demand, Pegging, Vertical & Horizontal Plan, Exceptions

• Planned order release (Purchase requisitions)

• Question & Answer

Page 3: ASCP Workshop

3

Global Supply Chain Issues

• How do we manage reliable delivery lead times to the customers, in the face of varying supply lead times from factory?

• How do we manage inventory required to respond to fluctuating customer demand, so that the inventory is available when we need it, but it is not necessarily “on the books”?

• How do we provide supply chain visibility to internal and external supply chain partners?

• How can we automate the entire Supply Chain process from initial Sourcing through PO generation, material receipt, quality inspection, to create the “touchless PO” (Cisco) or “virtual supply chain” (Qualcomm)?

• Companies continue to install software before rethinking their underlying processes and expect root cause problems to be eliminated

Page 4: ASCP Workshop

4

• Improve Forecasting Process & Accuracy• Increase Inventory Turns, • Reduce Excess & Obsolete (E&O) Inventory• Provide More Accurate Ship Dates to Customers at point of Order

Entry• Enable a faster, more effective Sales & Operations Planning

process• Accurate, Global Inventory Visibility• Issue correct PO prices and receive acknowledgements and

commits from suppliers• Automate Manual Processes & Transactions

ASCP Objectives

Page 5: ASCP Workshop

5

• Design Globally – Implement Locally• 80/20 rule; Implement quickly, evolve quickly• No Customizations – Work within the software• Software based re-engineering• Get to decisions quickly; avoid decision paralysis• Resources available per required allocation to drive and

participate in project• Project participants have real ownership to make decisions • “Self Service” project information warehousing• Team environment – Win as a team, Lose as a team

Key Methodologies & Assumptions

Page 6: ASCP Workshop

6

ASCP Functional Footprint

• Demand driven by forecasts and Sales Orders

• Business Process: Demand drops into the Planners Workbench, Planners route “make” orders to the Shop Floor Control System and Buyers “buy” items to the supplier; PO’s are created and transmitted to Suppliers via EDI

• Entire production procurement process is automated, end-to-end

- Timely, - Reliable, - Accurate & - Complete Information

• TRAC information in Oracle E-Business Suite helps us become more efficient

• Efficiency directly contributes to bottom line by reducing inventory and minimizing cost due to rework and reducing administrative lead time

Process – Our Core Philosophy TRAC

Page 7: ASCP Workshop

7

How do I Simplify My Job?

Planner – Need for Change

Buyer & Planner

Can I Get a Better Report?I Need

More Time

Page 8: ASCP Workshop

8

Planner – Information Management & Processing

• Supplier can’t deliver on time and need to know the impact on Sales Orders

• Manual processing of the data: Time consuming and prone to errors

• Order Promise Date difficult to calculate and difficult to follow

• Supply Demand picture changes too frequently

• Has to work with several excel data sheets

• Uncertainty of information

• Decision making latency

Page 9: ASCP Workshop

9

How Oracle ASCP Can Help

• ASCP Plan can be run based on ‘Enforce Demand Due Dates’ or ‘Enforce Capacity Constraints’

• Run separate plans and reports for Sales Order ATP, Manufacturing and Purchasing

• Graphical supply chain pegging to Identify and resolve problems

• Late order report for Sales Orders

• Global Order Promising

• Exception Messages

Features of ASCP to Solve the Problem

Process

People

Technology

Page 10: ASCP Workshop

10

Crawl, Walk, Run - Adjust your model without reimplementation

ASCP can be implemented using an incremental deployment approach.

Planning organizations that are comfortable with straightforward unconstrained material and capacity planning can start with unconstrained planning, which still provides many benefits, as the planners get to use a more productive tool that provides a foundation for moving to more advanced planning processes.

Constraint based planning is typically the next step. This requires more accurate data but in return provides better quality plans. From constrained planning we can easily evolve to optimized planning. In both cases there is no need to retrain planners or to reconfigure the system.

ASCP enables planners to run different models at the same time. The coexistence of models will enable the ability to compare the current unconstrained planning decisions to the ‘future’ constraint based planning decisions during a transition period, and enable more sophisticated planning.

Page 11: ASCP Workshop

11

ASCP Options

Planning Options• ATP and manufacturing plans based on enforce demand Due Date

constraint• Purchasing plan based on all demands (Optional, Unconstrained Plan)• ATP plan solely based on Sales Order demand• Manufacturing plan based on all demands

Minor Customizations or Enhancements • Small customization to the plan output to give ‘Scheduled Ship Date’

based on actual completion date of supply• Custom program run after ASCP plan run is complete, choice of viewing

plan output • Custom Late Order Report

Page 12: ASCP Workshop

12

ASCP Activities

• On a daily basis, Run a ‘Vertical Plan’ report for manufacturing plan and export the ‘Vertical Plan’ report to MS Excel

• Periodic (weekly) forecast uploaded into ERP

• On a weekly basis, get new Due Dates from Suppliers for late supplies and ‘Firm’ the due dates in Oracle

• On a weekly basis, generate a Horizontal Forecast report for suppliers and forward it to suppliers

• Follow ‘Planner Action’ on the report: Release, Reschedule In, Reschedule Out, Cancel, None and communicate with suppliers to follow ‘Planner Actions’

• Communicate with shop floor to follow ‘Planner Actions’

• Change the work order Completion Dates based on feedback from Shop Floor and ‘Firm’ Work Orders that cannot be rescheduled

Page 13: ASCP Workshop

13

Reporting Examples

Sample Vertical Plan Report Purchasing

Sample Horizontal Forecast Report Suppliers

Page 14: ASCP Workshop

14

• Resistance to Change (not embracing new business processes/System)

• “Jump Ship” mentality at the first sign of struggle• Competing Departmental Interests (projects, etc.) • Scope Creep• Discipline to new processes• Availability of resources

Project Risks to Manage

Page 15: ASCP Workshop

15

Keys to Success

Super users are critical Core team involvement and support is

paramount Executive support is critical Change Mgt, Communication & Training

are always underestimated

Process

People

TechnologySoftware Based Process Re-engineering

People

Process

Technology

Process is the glueA bad process is even worse with the right

technology.

Page 16: ASCP Workshop

16

Lessons Learned

• Change is hard…don’t under estimate change management (clear/frequent communications, set expectations, Listen to concerns & document..etc.)

• Very important to take the time to educate and Train the users on both System and Process –Keep it Simple

• Pre –Implementation:- Senior Management Support is Critical- Define To Be Processes- Strong Cross Functional team

• Make good on promise for future releases for features out of scope initially• Having the right partner -experienced Demantra/ Process consultants• Good Performance is key to good User Experience & Adoption• Archiving / Plan of Record (POR) needs to be understood• Workflow (bouncing the server) Performance• Be willing to Travel and educate on Vision

- collaborate effectively internally to optimize processing- work closely with key suppliers and customers- effectively apply technology as an enabler

Page 17: ASCP Workshop

17

Supply Chain Management

• Oracle Sourcing module works in tandem with Oracle Procurement

• Once a supplier has been identified and the contract negotiated, the relationship with the supplier is maintained through the Approved Supplier List (ASL) functionality in Oracle

• Oracle Sourcing allows users to:• Source globally• Conduct auctions on-line • Rank responses• Qualify winner• Negotiate contracts

Page 18: ASCP Workshop

18

Global Supply Chain (context)

• A Supply Chain describes the facilities and systems that support the flow of information between a company and it’s suppliers –and their suppliers

• As supply chains become more global, companies find themselves challenged managing sales, manufacturing and distribution across companies and region

• A company’s operations may be divided into sales, distribution and manufacturing operations with modern multinational corporation (MNC), facilities are scattered around the world

• Supply chain management (SCM) efforts deliver the greatest results when SCM is part of an overall business strategy –not a stand alone effort

• SCM is most likely to under deliver when there is poor connection between functions across a total business – poor supply chain visibility and lack of best practice sharing internally

Page 19: ASCP Workshop

19

How ASCP Can Help

• Enable ‘Calculate Resource Requirement’ Option for ASCP Plan• Plan Computes OSP Resource Requirement Data Based on Demand• ERP Source has OSP Supplier Information• Utilized the Two Data Sources to Get a Combined Report. A Forecast Report

Can be Created for Suppliers Based on Company’s Production Plan Data

Outside Processing Resources (Partners and CMs)

Page 20: ASCP Workshop

20

Business & Systems Constraints

Business• We don’t have resources to use more tools like Collaborative Planning• Capacity Planning not planned until the Phase II of implementation• Implementation not scoped for major customization

System• Outside Processing Items are not handled the same way as purchased items• No Standard Report or data for Forecast to the Suppliers• ATP calculations consider the reschedule dates suggestions of supply by ASCP

plan as material available dates• Standard Late Order Report considers reschedule dates as material availability

dates

Page 21: ASCP Workshop

21

Discrete Job Definition

• Assembly: Item to be stocked at completion of Discrete Job

• BOM: Creates the Discrete Jobs Parts List (11 levels deep)

• Routing: Applies the Discrete Jobs Lead Time

• Supply Type: Dictates how components are issued to the Job• A) Push= issue components to job at job start• B) Assy Pull= backflush components at job

Completion

• C) Bulk= ‘‘as required‟ components, no issue• D) Operation Pull= not in use in phase 2

• WIP Acct Class: Contains accounting information for the discrete job

Page 22: ASCP Workshop

22

Change Control – Executive Sponsor Approval required

Change Request Instructions1. Provide a succinct explanation to justify this change request.

2. The Change Request must be assessed for scope, schedule and budget impact both to this project and to other L1 and or L2 Products in the ITqueue.

3. The project team must make best efforts to accommodate the change request within the published project parameters (Scope, Schedule, and Budget) where possible.

4. Changes having either schedule or budget impact must be approved by both the business and IT project sponsors.

5. If there are external impacts to other projects, approvals must be obtained from the respective business & IT project sponsors and project managers.

6. Approved changes will be prioritized for implementation and tracked as part of the overall project deliverables.

7. The Change Request number is a running sequence number reflecting the number of changes submitted for this project to date.