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Whats New in Advanced Supply Chain Planning

R12 and R12.1
August 26, 2010
Michael Barrette, Solution Consulting Manager, Value Chain Applications

Agenda
Whats New

R12.0 Enhancements
R12.1 Enhancements

New R12 Features

New R12 Features in ASCP

New UI
Distribution planning
Fair Share Allocation
Item attribute simulation sets
Gantt chart enhancements
Lot Based Material Requirements
Actual Start Times
Sequence-dependent setups
Order queries

A New User Experience for R12

Reduced pop-ups and
duplicate screens

Re-designed and streamlined

entire workflows

Reduced the number of steps

to complete key tasks

Improved overall look & feel

and visual style

Increased personalization
capabilities

ASCP Distribution Planning

RDC3

Demand
Mgt
Demand

RDC4
Distribution
Planning

Multi-Plant
Planning

Supply

DC1

Distribute

RDC1

Fair share allocation

Inventory policy at multiple
levels (max, target, safety
stock)
Inventory rebalancing
Shipping method selection and
load consolidation
Global forecast -> local
allocation of supply across
distribution network

DC2
RDC2

Determine optimal supply

allocation from plants to
distribution centers using:

Automatically generate transfers

Create internal transfers

Create consolidated shipments
Integrated with Oracle
Transportation Management for
carrier and mode selection

Fair Share Allocation

Equitable partial demand satisfaction to key customers and sites

Use fair share allocation to automatically allocate

scarce supplies improving customer service levels
Fair share allocation based on
Current demand ratio
Equal allocation %
Inventory policy (relative safety stock levels)
Example: available supply is 120
Without Fair Share
Priority 1 Demands

Supply

120 at Customer 1

120 to Customer 1

100 at Customer 2

Current Demand Ratio Fair Share

Priority 1 Demands

Supply

120 at Customer 1

65 to Customer 1

100 at Customer 2

55 to Customer 2

Manage Distribution Plans

Adjust Allocations to DCs and RDCs
Right click horizontal
plan to open supply
allocation details

Allocation details displays

demands and allocated supplies
for an allocation bucket

Improved ASCP Gantt Charts

Improve Planner Productivity

Highlight
Critical path
Late and early activities

Link
Peg up, down, partial
Orders and related resource
activities
Primary and simultaneous
resources

Manipulate
Drag and drop rescheduling
Offload

Use all screen space

Single row for resource
Zoom

Personalize
Filter, sort, color, label
Layout
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Gantt Chart Enhancements

Comparison between old and new Gantt chart
Only one view open at a time
Activities on a resource shown
one below the other

Activities on a resource shown on

same horizontal line

Orders View always shows set

of orders pegged top down

Ability to see orders independent

of pegging

Pegging always shown from

top to bottom

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Two views open at a time

Ability to peg up or down from any

level in the supply chain

Item Attribute Simulation Sets

Improve Planner Productivity

Enter criteria

Apply changes

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Lot Based Material Requirements

Users can specify a component in a BOM to be of
basis type Lot
Lot basis type signifies a fixed component usage
Item basis type signifies a component usage that scales
according to the quantity of finished goods produced
Planning (ASCP and GOP) as well as the execution system
(WIP and OSFM) will take the basis type into account when
creating component requirements
Component yield is honored

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Lot Based Material Requirements

Examples of lot basis type modeling Fixed usage of components required in the assembly
Components needed to stabilize the start of a process,
destructive testing, customer samples, and so on
Fixed usage of components not required in the assembly
Issue of test kits, jigs and fixtures, and indirect materials
(cleaning solution, containers), and so on

Global Order Promising (GOP) promises orders based

on the lot basis requirements, while performing
Capable to Promise (CTP)

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Actual Start Time of Jobs

WIP and OSFM capture the actual start and end times of
activities
Job operators perform Clock in / Clock out or Report my time
transactions in WIP
Job operators in OSFM perform move in and move out transactions

ASCP supports the actual start times as part of the

planning process
The activity start times are firmed as the actual start time
Activities are scheduled forward from the firm start time, using the total
hours assigned to the activity
The completion time of the activity is projected based on the actual start
time

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Actual Start Time of Jobs

Benefits
Improve accuracy of the schedule output in ASCP by
leveraging the actual start time information
Improve stability of the planning process
Reduce the amount of reschedule in and out of activities

Improve synchronization of information between

planning and execution systems

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Sequence Dependent Setups

Changeover Matrix

Calculation of sequence dependent setup times

ASCP calculates a changeover time on a resource, when the
resource completes an activity of a certain setup type and
moves to an activity of a different setup type

Creation of optimal sequences

ASCP makes key planning decisions on the correct
sequence of activities to be performed on a resource that
minimizes the time lost to setups and maximizes on time
demand satisfaction

Trade-offs, Lateness Penalty

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Sequence Dependent Setups

Example
Sequence batches of alloy steels for a heat
treatment furnace such that successive batches
require minimal cleanup
Cleanup

Time

HEAT TREAT
FURNACE
Steel
From

Changeover Times
(Hours)

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Manganese Steel
To:

Stainless Steel

Steel

Manganese Steel

Stainless Steel

Steel

Manganese Steel

10

Stainless Steel

10

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Sequence Dependent Setups

ASCP calculates a Preferred Sequence
Preferred sequence is calculated based on the changeover
times specified
It represents a sequence of changeovers that allows the
resource to make each product at least once with minimal
total changeover time
If there are activities of different setup types in a daily,
weekly or period time bucket, the changeover time
calculated for that bucket will be consistent with the
preferred sequence

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ASCP Order Queries

Improved Planner Productivity
Find orders that require
attention

Sub-Query

Late demands to key customers

Unreleased purchase, make, or
transfer recommendations
within lead time

Act
Results shown in supply /
demand detail window
Edit and release right from there

Personalize
Criteria

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Partition orders by planner

Different logic for production
planners, buyer-planners

New R12.1 Features

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New Features in R12.1

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Oracle Transportation Management Integration

Day Level Planning Mode
Contiguous processing
Minimum remaining shelf life
End item substitution enhancements
Production schedules as inputs
Safety lead time
Customization of horizontal plan
Supply tolerance enhancements

ASCP / OTM Integration

Leverage Oracle Transportation Management (OTM)

Supply Chain Event Management to obtain real-time,
projected material arrival dates
Generate planning exceptions to provide planners
real time visibility to transportation delays
Use the updated dates in ASCP interactive planning
calculations to calculate the impact of transportation
delays on downstream orders and take corrective
action

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R12.1 Day Level Planning Mode

A new "day-level" planning mode allows ASCP to
generate planning results at the day level of granularity.
When day-level planning is sufficient, this is a way to
run plans in a shorter amount of time as the final
detailed Scheduling phase is skipped.
When needed you can run ASCP with Scheduling

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R12.1 Optimization Enhancements

ASCP Planning Modes

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a. Unconstrained

Planning Phase only

b. Constrained (Classic)

Planning Phase + Scheduling Phase

c. Constrained (Classic)
with Decision Rules

Optimization phase + planning phase + scheduling

phase
In this mode, the optimization phase considers only
rankings of alternates (sources, BOMs/routings,
resources, substitute components, end item
substitutes) and not costs

d. Optimized (Classic)

Optimization phase + planning phase + scheduling

phase
In this mode, the optimization phase considers full
relative cost data for all alternates

e. Constrained (Without
Scheduling)

Optimization Phase + Order Modifier Phase

Day level planning

f. Constrained (With
Scheduling)

Optimization Phase + Order Modifier Phase +

Scheduling Phase

Optimization Enhancements
Process View / Analyze ASCP Output
Planning Mode Gantt Chart Availability

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Unconstrained

No

Constrained
(Classic)

Yes No changes

Constrained
(Classic) with
Decision Rules

Yes No changes

Optimized (Classic)

Yes No changes

Constrained
(without
Scheduling)

Yes But no sub-day detail

Constrained (with
Scheduling)

Yes Same as Constrained

(Classic)

Scheduling Contiguous Operations

With R12.1, ASCP respects Oracle

Process Manufacturing standard and
maximum delays between routings.
This allows you to cap the maximum
time durations and enforce contiguous
processing. You can also enforce a
minimum (standard) delay in order to
accurately reflect processing
constraints such as cool-down periods.

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Scheduling Contiguous Operations

OP 30 Routing A
Act 1 Act 2 Act 3

Act 4
OP 20 Routing B
Act 1 Act 2 Act 3
X
Y

Act 4

MTQ
Max Time Offset
Min Time Offset

Example: Injection molding process:

A mixture is heated with a liquid catalyst in a vat
The mixture has only 5 minutes after reaching
the proper temperature to be injected into the
molds This 5 minutes is the maximum delay
(maximum time offset).

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End Product Remaining Shelf Life

Customer Specified

The remaining shelf life of products sent to a customer site

should be greater than or equal to the Minimum Remaining Shelf
Life (MRSL) specified by the customer site with respect to the
arrival date or ship date.
The MRSL can be specified at the item-customer level as well as
sales order level.
The MRSL is measured in calendar days.

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End Product Remaining Shelf Life

ASCP models end item substitution with respect to
shelf life requirements.
ASCP chooses substitute supply that is not expired and the
remaining shelf life is greater than or equal to the MRSL.
ASCP may ignore the available supplies in the substitution
window to respect shelf life requirements.

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End Item Substitution

Pass substitute item recommendation to Order
Management
With a sales order release, ASCP passes the substitute item
in case of end-item substitution recommendation. This
changes the item on the sales order line.
This is in addition to releasing date, organization, and ship
method changes
Priority sequence for substitute item list is inferred from the
Effective Date From attribute in the Item Relationships
window

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End Item Substitution

Business Value
Automatic reflection of ASCP end item substitution
recommendation in Oracle Order Management
Manual intervention is not needed to change the item on the
sales order line

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PS Sends Firm Planned Orders to ASCP

Integration
This enhancement enables the planner to input a production
schedule from PS as a source of firm planned orders to ASCP.
The PS schedule published to ASCP includes planned orders
that are beyond the shop floor release time fence. These are
planned orders that are not released to the shop floor for
execution, but are to be considered firm by ASCP when
generating new plans.
Planned Orders
Planned Order
Demands
Sales Orders
Forecasts

Production
Scheduling

Firm Planned
Orders

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ASCP

R12.1 ASCP Safety Lead Time

Safety lead time is the amount of time that ASCP
schedules supplies in advance of the corresponding
demand due dates
This results in an inventory buffer during the span of
the safety lead time which can hedge against demand
uncertainty
Use of safety lead time is an alternative to planning to
safety stock target levels

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Safety Lead Time

Description
The following table presents how supply is generated
for an item with safety lead time of 2 days:
Item A

Day 1

Day 2

Deman
d

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Supply

1000

1000

BOH

1000

2000

Day 3

Day 4

1000

1000

1000

1000

1000

1000

1000

2000

1000

1000

Day 5

1000

Day 6

Day 7

Day 8

Day 9

1000

1000

1000

Day 10

Safety Lead Time

Business Value
Better hedge against demand uncertainty
Fewer shortages
Fewer excesses

Better on-time delivery

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Customization of Horizontal Plan

Ability to add a custom row in Material Horizontal Plan
New Preference to enable/disable the user-defined row
Ability to label / re-name the user-defined row
Ability to populate to custom data into user-defined row

Ability to pre-process data in existing rows in

Horizontal Plan
User hook to invoke custom logic to modify data

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Customization of Horizontal Plan

Business Value
Visibility to Business specific measures
Enable easy, quick comparisons

Enable display logic that is specific to each item

Display in different UOMs or display units

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Customization of Horizontal Plan

Process Open Workbench and View
Horizontal Plan
User-defined row
shows up in the Item
horizontal plan
Data
Updated
based on
custom
logic

New userdefined
row

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Updated data shows

up in all the rows
based on the custom
logic defined by the
user

Supply Shortage Tolerance

When an existing supply is almost enough to fulfill a
demand, dont recommend producing or procuring
extra supply
Avoids spurious production and procurement
Supply shortage tolerance is expressed as item/orglevel user inputs
previously, only available as global-level user inputs

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Supply Shortage Tolerance

Business Value
Reduce excess inventory by avoiding excess
production or procurement

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Supply Excess Tolerance

When an existing supply is just a little larger than a
demand quantity, allocate the entire supply to the
demand and dont allocate (peg) the small excess to
another demand
Creates cleaner planning output that is easier to
understand
Supply excess tolerance is expressed as item/orglevel user inputs
previously, only available as global-level user inputs

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Supply Excess Tolerance

Business Value
Improve quality of plan output by ignoring negligible
remaining supply quantities

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Q&A