CTO Solution - Twin Cities Manufacturing OAUGtcmoaug.communities.oaug.org/multisites/tcmoaug/media/Documents/... · R12 New Feature . FUJITSU CONSULTING ... BOM Model Pre-Configured

FUJITSU CONSULTING 1

Fujitsu Consulting Oracle Practice Presentation By: Ravi Kadu

CTO Solution


Agenda n  CTO n  Business Pressures n  Operational Challenges n  Process Flow

n  Define n  Plan n  Procure & Manufacture n  Manage Configurations

n  Case for ATO/CTO Review n  Phases in CTO Implementation n Application View n Q&A


CTO- Definition

Configure-to-Order (CTO) represents the ability for a user to define the component make-up (configuration) of a product at the very moment of ordering that product, and a vendor to subsequently build that configuration dynamically upon receipt of the order

FUJITSU CONSULTING

Business Pressures

Customer Focus • How do I accommodate constantly

shifting customer expectations? • How can I improve service of

configured products to build lasting customer relationships?

Excess/Obsolete Inventory • How can I improve forecasting

and planning for options? • What strategies can I deploy to

optimize inventory of both production and spare parts?

Personalized Offerings • How can I provide complete

solutions via configurable goods and services?

• What is the best way to manage high volumes of unique orders?

Cost of Goods Sold • How can I reduce the number

of order exceptions requiring manual intervention?

• How do I create a flexible production environment?

Configure and Order

Procure and Manufacture

Service and Maintain


Operational Challenges

Sales Configuration

Planning and Manufacturing

Configuration Rule Authoring

Install Base Service

•  Poor demand visibility to custom orders

•  Excessive order errors

•  Complex supply and outsourcing processes

•  Manual ordering processes

•  Out of date product information

•  Inability to promise accurate delivery dates

•  Complex CTO* modeling tools

•  Proliferation of ordering options

•  Rampant engineering changes

•  Incomplete installed base records

•  Slow service responsiveness

Fragmented Data, Complex System Integration, Outdated Information

*Configure-to-Order


Complete CTO-to-Service Flow

= Order = Manufacturing = Maint. & Service

Forecast & Plan

D e s i g n

Configuration (Product and Pricing)

Opportunity Definition

Available to Promise

Schematics and Drawing Generation

Configured Quote

Automatic Order Creation

Match

Automatic Config Item, Bill & Routing Creation

Automatic Supply Order Creation

Flow Schedule

Manufacture & Reserve

Pick and Ship

Needs Assessment

Populate Installed Base

Update Sales and Service Contracts

Customer Initiates Service Request

Assign Field Tech

Initiate RMA

Define Service Rqmt And Dispatch Work

Repair & Debrief

Receive & Repair

PO Work Order

Int Req

R12 New Feature

FUJITSU CONSULTING

Œ  Define Configurations to Capture Customer Requirements

�  Plan for Complex Configurations

�  Procure and Manufacture to Demand

�  Manage Configurations for Installed Base Service

Enables you to…

Oracle CTO-to-Service Solution


BOM Model

Pre-Configured New Item “A”

Available for Order

Pre-Configured New Item “B”

Available for Order

Config “A”

Config “B”

Common Configuration

Model

Updated Sales Catalog

•  Derive new product from existing designs

•  Add commonly requested configurations to standard catalog

•  Forecast and stock common configurations

•  Enter orders for stock configuration, or match based on models and options chosen

Extend Offering Pre-Define Items for Frequently Used Configurations

FUJITSU CONSULTING

Configurator Driven Guided-Selling Guide the Customer to the Best Solution

Valid follow-on questions and default selections from previous choices

Rules link Guided Selling questions

to product options

Questions and flow

tailorable to buying

audience

Intuitive UI hides complexity

FUJITSU CONSULTING

Global Order Promising Accurately Promise Orders During Order Capture

Promise Orders Based On: -  Material / component availability -  Manufacturing capacity -  Supplier capacity -  Option specific sourcing definition -  Transportation capacity

Drive Fulfillment Decisions Based on Demand and Supply Plans

-  Promise based on optimal supply decisions -  Promise based on global availability

Allocate Available Supply & Capacity -  By channel, customer, or product -  Priority and stealing rules

Make Commitments to Key Customers -  Re-schedule / -sequence your backlog

FUJITSU CONSULTING





Enables you to…



•  Global ATP for ATO models & ATO items •  Match during ATP and pre-configuration

forecast consumption

Enter SO for model & options

(ATP/CTP)

Create configuration

Order or build configurations and options

SO history

Forecast PTO/ATO models & specific

configurations

Explode forecast to options

Demand Planning

Consume forecast

Plan configurations

and options

Adv SC Planning

Ship to customer

Global Order Promising

Supply Chain Planning ERP

Schedule orders Match, schedule,

or un-schedule

Release orders

Solve Problems Involved in Complex, CTO Environments

FUJITSU CONSULTING

Multi-Tier Sourcing Accommodate Complex, Supply Options

Sub- Model

Sub- Model

ATO Model

ATO Model

Customers

Distributors

OEM Suppliers

Sub- Model

ATO Model

Plan Multiple Sources for an Assemble-to-

Order (ATO) Model at Any Level of the BOM

Structure


Agenda n  CTO n  Business Pressures n  Operational Challenges n  Process Flow

n  Define n  Plan n  Procure & Manufacture n  Manage Configurations

n  Case for ATO/CTO Review n  Phases in CTO Implementation

FUJITSU CONSULTING





Enables you to…


FUJITSU CONSULTING

Closed-Loop CTO Production Enable Efficient Mass Customization

Select Mfg Source

In-House?

Outsource? Drop Ship?

Auto Create Mfg. BOM &

Routing Plan &

Schedule Production & Assembly

Quote, Capture & Validate Unique Configuration

Global ATP & Pricing

Web Direct

Retail & Dist

Availability, Price

Order Status, Shipping Status

Invoice

Component Inventory

Production Plan

• Seamless flow of information from order capture through production & assembly • Real-time WIP status and visibility provided to customer


Integrate Configuration with Supply Chain Automatically Create Order-Specific Production Details

Option Dependant Purchasing

Option Dependant Routings

Multi-Level BOMs Customer

Configured Order

Master Configuration “Allowable Configuration”

Option 2

Model

Option 1 Option 3 Option 4

Option Class Option Class

FUJITSU CONSULTING

Flow Mfg for Configure-to-Order

Build a Mix of Models and Configurations

on the Same Line

Sequenced Demand

Customers

Sequenced POs

Inventory

Bin 1 Bin 2

Oper 10

Feeder Plant Feeder Line

Synchronized Production

Bin 1 Bin 2

Oper 20

Bin 1 Bin 2

Oper 30

Bin 1 Bin 2

Oper 40

Kanban Replenishment

Suppliers

Final Assembly Line

Production Lines

Support Lean Manufacturing Practices to Reduce Cycle Time and Waste


Supplier Collaboration Provide Supplier Access to Configured Order Items

Suppliers have access to configuration details, component level attachments, and supplier

part numbers, etc.

FUJITSU CONSULTING





Enables you to…



Know Installed Base Configurations Capture Information From Inception to Retirement

Plan, Market, & Sell

Manufacture

Service & Maintain

Design & Develop

“As Built”

“As Designed”

“As Maintained”

“As Sold”

•  Convert configured product information as products evolve through lifecycle

-  Create Sales BOM from Engr. BOM and use for guided-selling via online configurator

-  Associate installed base failures with original product designs for root-cause analysis

-  Track product designs through EOL

•  Manage complex, multi-dimensional data (item types, location, platform, etc.)

Service BOM

Mfg BOM

Sales BOM

Engr BOM

FUJITSU CONSULTING


Intuitive configurator for model management and guided selling, integrated global ATP

Holistic supply chain planning with inventory optimization and global supply / demand visibility

Integrated mixed-mode manufacturing including flow, project, and outsourcing

BOM lifecycle management with preventive maintenance and in-house / on-site repair

Define Configurations to Capture

Customer Requirements

Plan for Complex Configurations

Procure and Manufacture to Demand

Manage Configurations for Installed Base Service


Case for ATO/CTO Review Demand Fulfillment

n  Improve “Manufacturing Replenishment Lead Time “ n  Move to customer configurable product n  Response to Customer order needs improvement n  Modular configured pricing n  Need to reach more customers

Planning n  Forecasting accuracy n  Complex Global Planning n  Global Order promising

Cost n  Global Mfg & Local Configuration n  Reduce Obsolescence n  Multiple BOM’s n  Number of Orders Requiring Technical inputs


Phases in CTO Solution Implementation PHASE Scope Duration ASSESMENT • Analyze Business Process

• Validate if ATO/CTO introduction will improve Process Capability • Check Organizations - Baseline. • SMART measurement Matrices • Prototype ATO/CTO to a small Product Segment

8 to 16 Weeks

DESIGN • Prototype ATO/CTO to a small Product Segment. • Solution Design to Build Capability • Target & Competency

3 to 6 Months

Deployment • Plan for Deployment • Test Solution • User Acceptance/Training

2 to 4 Months

ROLLOUT • Monitor & Correct • Measure against Design

Phased Approach with a Gap of 3 Months.


CTO-Oracle Application View