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• Industry Overview
• Key Priorities and best practices for Implementation
• Real Time Inventory Management
• Operational Efficiency
• Process Streamlining Using BPM-SOA
• Enabling Business Transformation
• Oracle’s Industry Leadership
• Why Oracle
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Agenda:
Industry Overview
Meeting Today’s Business Challenges
• Costs
• Pace of business
• Innovation
INNOVATION
COST CONTAINMENT
Businesses are under pressure to
… Businesses are constantly looking
bring new products, services and
at how to reduce costs by removing
delivery methods to market to
redundancies through consolidation
maintain their premium business
and business efficiency strategies
and drive customer service
COMPLIANCE AND
EFFICIENCY SECURITY
Removing inefficient processes has …Compliance with new
been a key driver for CIO’s since regulations will become the
2005. This theme will continue into prerequisite of doing business.
the future as margin becomes a key Added to that, businesses are
measurable for business survival. being measured on the value and
authenticity of their intellectual
property
MRD Industry IT Challenges
COMPLEX APPLICATIONS
DEPENDANCE ON LEGACY ENVIRONMENTS
SYSTEMS …Years of custom development
… Critical business processes and decentralized solutions
(manufacturing, flight operations, development has led to complex
retail applications) depend on legacy application environments with
systems that are hard to modify, multiple data sources, complex
costly to maintain, and run on aging point-point integrations, and
expensive hardware several point solutions with poor
documentation and support
Agenda:
Key Priorities and best
practices for
Implementation
Key Priorities for Manufacturing
Controlling Inventory and Monitoring Real Time Status
350
80%
300
250 60%
200
40%
150
100 20%
50
0%
- 2001 2002 2003 2004 2005
Raw Material Work-In-Process Postponement Distribution
Inventory Levels by type (US Manufacturing sector - 2005 Average Order Fill rates: Large US Manufacturers
Large US Manufacturers carry inventory worth of $830B, but unable to improve service levels beyond 80%
Sources: Annual State of Logistics Report, June 2005, Council of Supply Chain Management Professionals, US Dept. of Commerce, US Dept of Transportation.
13
The typical manufacturer carries 20-25% more inventory in their
supply chain than necessary to satisfy demand effectively
14
Inventory Visibility and Control is a comprehensive
solution
Technology and methodology for rapid development of deep supply chain visibility:
• Real time access capturing inventory data at a ‘microscopic’ level of detail
• Incorporates sensory network data including inputs generated by EDI / Bar Codes & other devices
• Views into partner planning and execution
• Complex event correlation transforms data into information
Reporting and decision support for root cause analysis, modeling, and simulation
Event Processing and BI platform for aggregating and analyzing supply chain data
Contract
Sensors
3 P/L Manufacturer B
Analytics
Data Store BAM Contract
Component Manufacturer C
MFG Escalation
Distributor
CMs
Event Processing 3PL
ESB OBIEE
15
Solution Landscape
Transportation Collaborative
B2B Infrastructure BPEL Management Planning
(TIBCO) Manager
AIA Infrastructure Oracle
Applications
Process Orchestration
Rosetta Net
Adapter
Message
Validation
Customers
Message ASCP / Demantra Order
Routing Management Inventory Visibility
AIA Infrastructure
Error
Management Oracle
Applications
Purchase Management Inventory Management
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Pratt & Whitney
Results
• Better visibility into preventative repairs
Enters Request
for Service Oracle BPM Tech
Customer Order Automatically runs reviews Job
Process Ticket
Customer
Delighted
Invoice Process
begins
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Operational Challenges
Lack of Manufacturing Agility to Respond to Changing
Corporate
Relatively Stable Supply Chain Enterprise
Customer Business
Environment Management
Planning and Relationship Mgmt Resource Planning Intelligence
Schedule-Driven
Standard Systems
Real-Time, Exception
Prone Environment
Dominated by Older
Homegrown / Factory Quality Maintenance Legacy Systems
3rd Party MES Automation / SPC / Service
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Oracle Manufacturing Operations Center
MES
Business
Business Manufacturing
QMS Process Operations Activity
Management Data Model Monitoring
Logistics Contextualization
Engine
Manufacturing
Scope
Flat Products PLC CNC DCS SCADA Advanced Human
Systems
Tubes Division Machines Process Machine
Device-Generated
Data Control Interface
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32%
Of companies with revenues over $1billion say
“IT’s Top Technology
standardizing and consolidating their IT infrastructure is a
Priorities for 2008” top technology priority—more than any other.
What is the Problem?
Organizational Units
Customer Sales and Production Manufacturin Inventory & Finance & HR
Relationship Marketing Planning g Logistics
Management
Product Configuration
Processes
Order Management
Product Configuration
Processes
Order Management
Process
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Process Life Cycle Management
Continuous Process Innovation
Business Process
Analyst
Developer
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Process Centric Solutions
•DriveManufacturing
consistent customer interactions via
integrated service channels
Operational
Efficiencyl
Channel • Optimally schedule resources, manage spare
Cheannel
parts, and deploy field personnel to reduce overall
Operational service costs
Efficiencies • Uniform experience across channels by
delivering consistent quality & service for
improve efficiency
SOA enables a cost effective , flexible
and efficient IT foundation that
promotes faster development and lower Sy
maintenance costs through reusable
services
Optimization
Inventory • Improve demand mgmt with consensus-based
Inventory
Optimization forecasts
• Reduce cycle time / waste and optimize inventory
via single, holistic production plan
Introduction
requirements, competition and company that are not a key capability.
changing market conditions by New Product
t New Product • Reduce time to market of new products &
services
responsive Business-IT alignment Introduction • Improve retention through analytics & align
products with customer needs
Centricity
Results
• Increased turnaround, data accuracy and consistency, audit trails and quality assurance
• Cost per transaction reduced by 80%, realized ROI of 300% over two years
• Maximized cash flow and reduced personnel costs
Accounts Payable Approval Process
FileNET Up to 3,000
Approved
vendors have self
service web portal invoices are
BPM polls Oracle DB posted to SAP
(FileNET representation) access
1,000 Invoices are for payment
for new invoices
mailed, faxed and
sent via EDI to the
Tulsa Processing
Center each day
Increase predictability of
business results Enterprise Performance
Management/ Business Intelligence
Process
Enable integrated and
adaptable business processes Business Process Management
1 2 3
Visualized, Proactive Prediction / Collaboration / Best
Decision Support Simulation Practice Sharing
• Reduce IT • Enhance and accelerate • Improve re-use and
costs decision-making knowledge-sharing
Example: Procter & Gamble
STORYBOARD SUMMARY
SCENARIO
IDENTIFICATION INVESTIGATION EXECUTION COMPLETION
PLANNING
• Receive • Visualize impact • Predict impact • Take action • Save work for
proactive • Uncover root of alternate • Track project future re-use
notification cause scenarios and process
execution
Example: Procter & Gamble
SOLUTION ARCHITECTURE
UI (Role-Based
Cockpits)
Business
Business
Process
Ale rt myCo ckpit | Pag e 1 Page 1
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Intelligence
My Bo o kmarks
Pampers Lithuania Value Share – Jan.06 (.xls)
Prediction / Simulation
NA MDO Cockpit - Delphi
What’s Ne w
BRW 2.0 available
PLIT update
New s
Press Reports
New Product
Pro file
Transactional Applications
Middleware
Database
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Agenda:
Oracle’s Industry
Leadership
Oracle in Oracle
Manufacturing leads the way
9 of the top 10 global manufacturing
conglomerates run Oracle applications
MILL PRODUCTS
CONSUMER ELECTRONICS
SEMICONDUCTORS
OIL & GAS DOWNSTREAM
AUTOMOTIVE OEM
CONSUMERS
What Manufacturing Customers are Achieving…
Agenda:
Why Oracle
Oracle Fusion Middleware
Complete, Integrated, Hot-Pluggable, Best-of-Breed
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Oracle Fusion Middleware
The Leader in Middleware – Gartner Magic Quadrants
• Enterprise Application Servers
• Application Infrastructure
• Application Infrastructure for Composite-Applications
• Application Infrastructure for New Service-Oriented
Business Application Projects
• Application Infrastructure for Back End Application
Integration Projects
• User Provisioning
• Web Access Management
• Horizontal Portal Products
• Enterprise Content Management
• Corporate Performance Management Suites
• Business Intelligence Platforms
45
Certified with Oracle’s Applications
Industry Applications
46
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