Overview To Advanced Supply Chain Planning: ASCP Fundamentals

Overview to Advanced Supply Chain Planning
ASCP Fundamentals
Copyright © 2007, Oracle. All rights reserved.

Objectives
After completing this module, you should be able to do the

following:
• Identify planning business issues
• Describe outcomes of using Oracle Advanced Supply
Chain Planning
• Describe plan types
• Describe implementation progression
• Describe planning business flow
• Describe planning data flow
1-2 Copyright © 2007, Oracle. All rights reserved.

Module Overview: Topics
• Planning business issues

• Oracle Advanced Supply Chain Planning
• Plan types
• Implementation progression
• Planning business flow
• Planning data flow

Topic Overview: Planning Business Issues I
• Today: A Changing Global Landscape

• Traditional planning engine multi-step, high latency,
limited collaboration
• Business impacts implications of the traditional
planning model
• Oracle Advanced Planning zero latency, real-time
collaboration

Topic Overview: Planning Business Issues II
• Oracle Advanced Planning complete e-business

planning solution
• APS business flow: Plan
• APS business flow: Execute
• APS business flow: Compare performance to targets
• APS business flow: Corrective action
• Oracle Advanced Planning key capabilities
• Oracle Advanced Planning component architecture

Business Trends Toward Demand-Driven
Adaptive Planning
EVOLVING CHALLENGES IMPACTS TO SUPPLY CHAIN
Older business models are Move from static demand planning to demand
challenged by decentralized sensing and shaping
• Capture demand signals more frequently and closer to
global network model the point of sale – drive to consensus demand number
New challenges and focus areas: • Shape your demand with profitability and capacity as
key drivers
• Globalization and global sourcing,
leaner supply networks, increased • Implement continuous and collaborative sales and
operations planning process
demand variability and cost
volatility Multi-tier decision support replaces enterprise
• Increased customer expectations, plans
faster product life cycles with local • Materials and logistics are both primary constraints
market requirements • Cross-enterprise synchronized view of demand signal
encompassing both supply and demand visibility
• Mergers and acquisitions, and
continued consolidation of Focus on more frequent supply network flow
suppliers and customers analysis
• Increasing compliance • Analyze optimal flows for market response, changing
requirements such as Sarbanes- geo-political situations, and unplanned events
Oxley • Rationalize suppliers to minimize risk
• Determine postponement strategies

Demand-Driven Adaptive Planning
The demand driven company runs on real-time

information.
Sense
Demand
Shape
Demand
Respond to
Demand

Disconnected Systems Cannot Enable Demand-
Driven Adaptive Planning
• Maintain excess inventory
• Reserve production capacity
• Expedite everything!
CUSTOMERS SUPPLIERS
Supply chains built
on Inventory
Tier 2
Tier 1
Fax Paper Paper
Distribution Production Manufacturing

Marketing
plans plans plans
?
Sales
Manufacturing
Long planning cycles
Manual
Demand Planning reconciliation of Supply Planning
different numbers

Demand-Driven Adaptive Planning Platform
• Real-time end demand visibility – Quickly sense and respond to demand changes
• Shape demand and align business plans quickly
• Manage your business with real-time sales and operations planning
• Monitor performance to drive continuous improvement SUPPLIERS
CUSTOMERS Tier 2
Supply Chains built
on Information Tier 1
Portal Portal
Internet
Marketing Automated Exceptions
Single
holistic plan
Sales
Demand hub & multi- Consensus demand

dimensional analysis and production plan Manufacturing
Manufacturing
Real-Time S&OP Holistic Supply Planning
Embedded Analytics

Oracle Advanced Planning Solution
Complete, best-in-class e-business planning process platform
Best in
class Supply Chain Demand driven Sales and Operational Multi-Enterprise
Business Risk Management adaptive planning Operations Excellence Collaboration
Processes Planning
Role-based Portals
Network
Design Demand Sensing
Integrated And Shaping Postponement
Planning Optimization Holistic Preconfigured
Functions Supply Worksheets &
Promise,
Planning Distribute, and Workbenches
Replenish
Execute to plan
SNO IO RT DM PTP ASCP PS GOP CP

Products
S&OP
Connectors Embedded
Platform
Common planning Analytics
WFL data model
1 - 10 Copyright © 2007, Oracle. All rights reserved.

Oracle Advanced Planning
Enables transformational business processes:

• Demand-driven adaptive planning
• Global supply chain design and risk management
• Drive operational excellence
• Improve demand fulfillment
• Drive continuous improvement

Oracle Advanced Planning
Complete E-Business Planning Solution
• Oracle Advanced Supply Chain Planning (ASCP)

– Oracle Constraint Based Optimization (CBO)
• Oracle Collaborative Planning (CP)
• Oracle Demantra Demand Management (DM)
– Oracle Demantra Advanced Forecasting and Demand
Modeling (AFDM)
– Oracle Demantra Real-Time Sales and Operations
Planning (RTS&OP)
• Oracle Global Order Promising (GOP)
• Oracle Inventory Optimization (IO)
• Oracle Production Scheduling (PS)
• Oracle Strategic Network Optimization (SNO)

Integrated Oracle Advanced Supply Chain Planning
E-Business Suite Advanced Planning

• Items and categories Advanced Supply Chain Planning
• Bills of material Demand Demand
• Routings forecast Management
• Resources Constrained Real-Time
• Production and supply Sales and
inventory costs Operations
Planning
• Organizations Order Safety Sourcing Planned
forecast stock rules orders
• Customers Supply
• Calendars and shifts commit
• Units of measure Global
Strategic
• WIP discrete jobs Inventory Production
Network Order
Optimization Scheduling
• OPM process batches Optimization Promising
• OPM complex routings

and recipes Collaborative Planning Trade Promotion Planning
• OSFM lot-based jobs

APS Business Flow: Plan APS Source
Order
Collaborative Management
Planning Sales demand
Supplier capacity
Inventory
WIP
Demand
Management Shop Floor Mgt.
Forecasted demand Purchasing
Customer demand forecast
Existing supply
Inventory
Optimization Supply Chain
Safety stock demand Sourcing rules
BIS Bills of Material

Performance ASCP
Production capacity
KPI targets Optimized plans Product structure

APS Business Flow: Execute
APS Source
Global Order Promise dates

Promising Order
Global forecasting Management
Inter organization transfers

Inventory
Purchase requisitions
ASCP Purchasing
Planned rates, process
batches, project orders,
Execution
discrete and lot-based jobs
Flow
Process
Project
Production Reschedule OSFM
Scheduling WIP - Discrete

APS Business Flow: Compare Performance to
Targets APS Source
Planner
Workbench Purchasing
Exceptions Supplier
and KPI targets performance
Performance
Inventory
Management
Investment
WIP
Compare to
KPI targets
Completions
Cost

APS Business Flow: Corrective Action
APS Source
Planner Global Order Order

Workbench Promising Management
Analyze KPIs,
and exceptions
Global forecasting
ASCP
Purchasing
Replan
Simulation
Optimization
WIP

Oracle Advanced Planning Key Capabilities
• Demantra Demand Management

• Supply Chain, Distribution, and Manufacturing
Planning
• Global Order Promising
• Production Scheduling

Oracle Advanced Planning Key Capabilities
• Inventory Optimization
• Collaborative Planning
• Strategic Network Optimization

Oracle Advanced Planning Component
Architecture
• High performance
TRADING PARTNERS • Reliable INTERNAL USERS
• Open and
standards based
Portal Portal
Internet
Order Promising
Oracle ERP Engine
APIs
Legacy XML EDI KPIs Workflows Plans

Systems Flat file
Advanced Planning Instance

Advanced Supply Chain Planning
Supply Chain and Distribution Planning Manufacturing Planning
• Product family and item level planning • Sequence dependent
• Alternate components, resources, processes, setups/changeovers
suppliers, facilities, and ship methods • Simultaneous resources
• End-item substitution • Batch resources
• Critical items and resources; aggregate • Alternate resources
resources • Minimum transfer quantities
• Bills of distribution and transfer rules • Complex, network routings
• Circular sourcing, load consolidation, • By-products and co-products
allocation rules • Line rates and takt times
• Include customer and supplier facilities
Transportation Transportation Transportation

Suppliers Manufacturing Distributors Customers

Evolve at your own pace to a best-in-class solution.
Start
anywhere
• Interactive what-if simulation
• Cost-based optimization
• Advanced decision rules
• Transportation constraints
• Automate release processes
• Automate selection of alternates
• Collaborate with suppliers
• Constrained finite planning
• Multi-facility supply chain planning
• Unconstrained MRP Planning

• Material and capacity planning
Eliminate • Personalized exceptions and queries
spreadsheets • Tailor workbench for individual users
From less complex to best-in-class -->

Adaptable:
Segment the Problem As Needed
• Adapts to your current One holistic plan

business model
Supply chain plan
– Single plan or multiple plans for all Organizations
– Hub-and-spoke planning
models One MRP, multiple MRP
• Evolve planning model at your
own pace Production Plan for all Manufacturing Orgs
– Re-configure easily by
modifying plan options
instead of re-implementing or
re-modeling Multiple production plans
• Multiple models can co-exist MPS for BU 1 MPS for BU 2
MRP for MRP for

Org 1, Org 2, Org 3 Org 4, Org 5

Planners Collaborate On A Single Plan
• Unlimited number of planners
• Collaborate from anywhere
• Preserve each planner’s work
• Immediate visibility to changes
• Full undo capability
Plans and
KPIs Workflows Schedules
Advanced Planning

Integrated Manufacturing Planning and Production
Scheduling
ASCP – Production Plan PS – Production Schedules

Orgs 1, 2, and 3
ATP
Check
Day 1 Day 2 Day 3 8am 12pm 4pm

GOP
• Multiple facilities • Schedule a single facility
• Which plant makes what • Sequence Production to meet
products and when demands on this facility
• Pre-builds based on capacity • Account for detailed production
shortages constraints and come up with
an executable schedule
• Alternate facilities, suppliers and
processes
PS – Production Schedule Org 1
• Constrained dependent
• Execution work orders PS – Production Schedule Org 2
demands
• Process batches, and • Independent demands
• Lot scheduled detailed • Planned orders
activities PS – Production Schedule Org 3

Topic Overview: Oracle Advanced Supply Chain
Planning
• Oracle Advanced Supply Chain Planning

• Oracle Advanced Supply Chain Planning features

Oracle Advanced Supply Chain Planning
Balanced supply
and demand… …across the
supply chain
Respects …while meeting

constraints… organizational objectives

Oracle Advanced Supply Chain Planning Features
Holistic Planning and Scheduling
Internet collaboration
Virtual enterprise
Consumers
Suppliers
Manufacturing Logistics
partners partners

Optimization:
• iLOG solver and optimization technology automates
decision making:
– Optimizes plans to strategic objectives
– Generates coordinated sourcing, production, and
distribution plans for supply chain partners
– Recommends alternate suppliers, components, routings,
and resources
• Incorporated with third-generation memory-based
planning

Optimization objectives
• Maximize inventory turnover ratio
• Maximize plan profit
• Maximize on-time delivery
0.23
0 1

Planner Workbench:
• Decision-support tool
• Flexible, intuitive, and easy to use interface
• Navigation paths to related information
• Designed to streamline common activities of planners

Simulation:
• Quickly simulate plans with modified parameters (item
simulation sets, plan options)
• Use key performance indicators (KPIs) to evaluate
alternate plans:
– Inventory turnover
– On-time delivery
– Plan profit
– Resource utilization
• Graphical KPI display

Integrated Performance Management:

• Multiplan KPI comparisons
• Multiplan exception comparisons
• Integration with Oracle Workflow:
– Notification and corrective action alerts

Supporting all manufacturing methods in mix mode:

• Oracle Discrete Manufacturing
• Oracle Project Manufacturing
• Oracle Flow Manufacturing
• Oracle Process Manufacturing
• Oracle Shopfloor Management (OSFM)

Topic Overview: Plan Types
• Unconstrained
• Constrained
– Enforce capacity constraints
– Enforce demand due dates
– Decision rules
• Optimized

Unconstrained
Balanced supply
supply chain

Constrained
Balanced supply
supply chain
Respects
constraints…

Optimized
Balanced supply
supply chain
Respects …while meeting

constraints… organizational objectives

Plan Class Example: Unconstrained
Labor constraint
Machine constraint
Production
Demand
Production
Demand
Demand
Production
Demand
Production
Demand
Production
1 2 3 4 5

Plan Type Example: Constrained
Labor constraint
Machine constraint
Production
Production
Demand
Production
Demand
Production
Demand
Production
Demand
Demand
1 2 3 4 5

Plan Type Example: Optimized with Maximum On-
Time Delivery
Overtime
Labor constraint
Machine constraint
Production
Production
Demand
Production
Demand
Production
Demand
Production
Demand
Demand
1 2 3 4 5

Plan Type Example: Optimized with Minimize
Inventory Carrying Costs
Labor constraint
Machine constraint
Production
Production
Demand
Production
Demand
Production
Demand
Demand
Demand
Production
1 2 3 4 5

Plan Type Scenario
Planning Period
Sales Orders Day 1 Day 2 Day 3 Day 4
Priority 1, $1.00 25 25
Priority 2, $2.00 75 75
Supply constraint
Material capacity 50 50 50 50
Resource capacity 60 60 60 60

Plan Type Scenario
Planning Period
Sales orders Day 1 Day 2 Day 3 Day 4
Priority 1, $1.00 25 25
Priority 2, $2.00 75 75
Supply constraint
Planned supply
P1 Order, $1.00 25 25
P2 Order, $2.00 75 75

Plan Type Scenario
Planning Period
Priority 1, $1.00 25 25
Priority 2, $2.00 75 75
Supply constraint
Planned supply
P1 Order, $1.00 25 25
P2 Order, $2.00 25 25 50 50

Plan Type Scenario
Planning Period
Priority 1, $1.00 25 25
Priority 2, $2.00 75 75
Supply constraint
Planned supply
P1 Order, $1.00 25 25
P2 Order, $2.00 35 35 60 20

Plan Type Scenario
Planning Period
Priority 1, $1.00 25 25
Priority 2, $2.00 75 75
Supply constraint
Planned supply
P1 Order, $1.00 50
P2 Order, $2.00 50 50 50

Topic Overview: Implementation Progression
• Implementation progression
• Benefits of implementing in phases

Implementation Progression
• Unconstrained plans: Verify setup

• Constraint-based plans: Quick benefits
• Decision rules: Consider alternates
• Optimization: Continuous improvement

Implementation Progression: Unconstrained
• Create database links to establish communication

• Set up collection programs
• Run collection programs to copy supply chain models
to the APS instance
• Define supply chain plan names and plan options
• Launch named supply chain plan

Implementation Progression: Constrained
• Constrained planning recognizes constraints during

plan generation that otherwise would require manual
adjustments and iterations of planning processes
• Source instance setup is similar to that for
unconstrained supply chain planning
• Set plan options to:
– Consider material constraints
– Consider resource constraints
– Simultaneously consider supplier and resource
constraints
– Consider purchasing lead time constraints

Implementation Progression: Decision Rules
• Additional instructions
• Substitute items
• Alternate bills of material and routings
• Fewer constraint violations

Implementation Progression: Optimized
General — Internal default

— Profile option
— Plan
— Organization
Specific — Resource

Implementation Progression
The plan profit key performance indicator may decrease as

implementation progresses to create better plans, model
more costs, and consider more issues.
• Purpose of penalty costs is to steer the solution away
from undesirable events
• Some penalty costs are intentionally inaccurate:
– Not derived from cost accounting
– Motivated by business reasons
– Penalty costs are relative
• Plan profit is only loosely related to the financial
bottom line

Benefits of Implementing in Phases
• Fast Forward implementations of supply chain

planning and constraint-based planning quickly begin
return on investment
• Analyze costs and benefits before committing to
additional implementation phases
• Realized benefits pay for advanced implementation
phases

Topic Overview: Planning Business Flow
• ASCP business flow

• ASCP business flow: Prepare
• ASCP business flow: Execute
• ASCP business flow: Analyze
• ASCP business flow: Implement

ASCP Business Flow
1. Prepare 2. Execute
Determine consensus forecast Run production plan
3. Analyze
Analyze plan
Adjust plan
Simulate with revised constraints
Collaborate on revised constraints
4. Implement
Implement revised constraints
Release schedule

ASCP Business Flow: Prepare
1. Prepare
Determine consensus forecast

ASCP Business Flow: Execute
2. Execute
Run production plan

ASCP Business Flow: Analyze
3. Analyze
Analyze plan
Adjust plan
Simulate with revised constraints
Collaborate on revised constraints

ASCP Business Flow: Implement
4. Implement
Implement revised constraints
Release schedule

Topic Overview: Planning Data Flow
• Planning data flow

Planning Data Flow
Transaction
Data
Planning
Data

Planning Data Flow
Transaction Planning
Data Data
Source Destination
Instance/Server Instance/Server

Planning Data Flow
Transaction Planning
Data Data
Instance/Server

Planning Data Flow
Transaction Data Collection Planning

data data
Release Planned Orders/

Recommendations Collections Workbench
Launch Supply Chain

Planner Workbench Planning Process

Summary
In this module, you should have learned how to:

• Identify planning business issues
• Describe outcomes of using Oracle Advanced Supply
Chain Planning
• Describe plan types
• Describe implementation progression
• Describe planning business flow
• Describe planning data flow

Overview To Advanced Supply Chain Planning: ASCP Fundamentals

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Overview to Advanced Supply Chain Planning

Copyright © 2007, Oracle. All rights reserved.

After completing this module, you should be able to do the

1-2 Copyright © 2007, Oracle. All rights reserved.

• Planning business issues

1-3 Copyright © 2007, Oracle. All rights reserved.

• Today: A Changing Global Landscape

1-4 Copyright © 2007, Oracle. All rights reserved.

• Oracle Advanced Planning complete e-business

1-5 Copyright © 2007, Oracle. All rights reserved.

1-6 Copyright © 2007, Oracle. All rights reserved.

The demand driven company runs on real-time

1-7 Copyright © 2007, Oracle. All rights reserved.

Fax Paper Paper

Distribution Production Manufacturing

1-8 Copyright © 2007, Oracle. All rights reserved.

Demand hub & multi- Consensus demand

1-9 Copyright © 2007, Oracle. All rights reserved.

Complete, best-in-class e-business planning process platform

SNO IO RT DM PTP ASCP PS GOP CP

1 - 10 Copyright © 2007, Oracle. All rights reserved.

Enables transformational business processes:

1 - 11 Copyright © 2007, Oracle. All rights reserved.

• Oracle Advanced Supply Chain Planning (ASCP)

1 - 12 Copyright © 2007, Oracle. All rights reserved.

E-Business Suite Advanced Planning

• OPM complex routings

1 - 13 Copyright © 2007, Oracle. All rights reserved.

BIS Bills of Material

1 - 14 Copyright © 2007, Oracle. All rights reserved.

Global Order Promise dates

Inter organization transfers

1 - 15 Copyright © 2007, Oracle. All rights reserved.

1 - 16 Copyright © 2007, Oracle. All rights reserved.

Planner Global Order Order

1 - 17 Copyright © 2007, Oracle. All rights reserved.

• Demantra Demand Management

1 - 18 Copyright © 2007, Oracle. All rights reserved.

1 - 19 Copyright © 2007, Oracle. All rights reserved.

Legacy XML EDI KPIs Workflows Plans

1 - 20 Copyright © 2007, Oracle. All rights reserved.

Transportation Transportation Transportation

1 - 21 Copyright © 2007, Oracle. All rights reserved.

Evolve at your own pace to a best-in-class solution.

• Unconstrained MRP Planning

From less complex to best-in-class -->

1 - 22 Copyright © 2007, Oracle. All rights reserved.

• Adapts to your current One holistic plan

MRP for MRP for

1 - 23 Copyright © 2007, Oracle. All rights reserved.

1 - 24 Copyright © 2007, Oracle. All rights reserved.

ASCP – Production Plan PS – Production Schedules

Day 1 Day 2 Day 3 8am 12pm 4pm

1 - 25 Copyright © 2007, Oracle. All rights reserved.

• Oracle Advanced Supply Chain Planning

1 - 26 Copyright © 2007, Oracle. All rights reserved.

Respects …while meeting

1 - 27 Copyright © 2007, Oracle. All rights reserved.

Holistic Planning and Scheduling

1 - 28 Copyright © 2007, Oracle. All rights reserved.

1 - 29 Copyright © 2007, Oracle. All rights reserved.

1 - 30 Copyright © 2007, Oracle. All rights reserved.

1 - 31 Copyright © 2007, Oracle. All rights reserved.