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Oracle Advanced Supply Chain Planning
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Integrated Supply Planning Processes
Supply Planning ProcessesSupply Planning ProcessesSupply Planning ProcessesSupply Planning Processes
1. Distribution Requirements Planning
(DRP)
The quantity I plan to produce at each facility by SKU by week [constrained]
3. Master Production Scheduling
(MPS)
2. Deployment Planning
The quantity I plan to move from location A to location B by SKU by day
[constrained]
The quantity I need at each location by SKU by day [typically unconstrained requirements]
Supply Planning consists of four primary planning and scheduling processes:
4. Finite Scheduling
The quantity I schedule to produce for each
production line by SKU sequenced by day
[constrained]
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Module Overview: Topics
• Planning business issues
• Oracle Advanced Supply Chain Planning
• Plan types
• Implementation progression
• Planning business flow
• Planning data flow
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EVOLVING CHALLENGES IMPACTS TO SUPPLY CHAIN
Business Trends Toward Demand-Driven Adaptive Planning
• New challenges and focus areas:
• Globalization and global sourcing, leaner supply networks, increased demand variability and cost volatility
• Increased customer expectations, faster product life cycles with local market requirements
• Mergers and acquisitions, and continued consolidation of suppliers and customers
• Increasing compliance requirements such as Sarbanes-Oxley
Move from static demand planning to demand sensing and shaping
• Capture demand signals more frequently and closer to the point of sale – drive to consensus demand number
• Shape your demand with profitability and capacity as key drivers
• Implement continuous and collaborative sales and operations planning process
• Multi-tier decision support replaces enterprise plans
• Materials and logistics are both primary constraints• Cross-enterprise synchronized view of demand signal
encompassing both supply and demand visibility
Focus on more frequent supply network flow analysis
• Analyze optimal flows for market response, changing geo-political situations, and unplanned events
• Rationalize suppliers to minimize risk• Determine postponement strategies
Older business models are challenged by decentralized global network model
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Sense Demand
Respond toDemand
ShapeDemand
Demand-Driven Adaptive Planning
• The demand driven company runs on real-time information.
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Long planning cycles
Supply PlanningSupply Planning
Demand PlanningDemand Planning
Distribution plans
Sales
Marketing
Manufacturing
Fax
Tier 2
Tier 1
CUSTOMERS SUPPLIERSSupply chains builton Inventory
Production plans
Manufacturing plans
Paper Paper
?
Manualreconciliation of
different numbers
Disconnected Systems Cannot Enable Demand-Driven Adaptive Planning
• Maintain excess inventory• Reserve production capacity• Expedite everything!
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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
Supply Chains built on Information
Consensus demand and production plan
Holistic Supply PlanningHolistic Supply Planning
Demand hub & multi-dimensional analysis
Automated Exceptions
Real-Time S&OPReal-Time S&OP
Singleholistic plan
Embedded Analytics
Sales
Marketing
Manufacturing
PortalPortal
Tier 2
Tier 1
CUSTOMERS
SUPPLIERS
Manufacturing
Internet
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Oracle Advanced Planning Solution
• Complete, best-in-class e-business planning process platform
IntegratedPlanningFunctions
Products
Platform
WFLCommon planning
data model
Connectors
HolisticSupply Planning
Promise,Distribute, and
ReplenishExecute to plan
Embedded Analytics
PreconfiguredWorksheets &Workbenches
Operational Excellence
Sales and Operations Planning
Demand drivenadaptive planning
Multi-EnterpriseCollaboration
Best in classBusinessProcesses
Supply ChainRisk Management
SNO IO RTS&OP
DM PTP ASCP PS GOP CP
Role-based Portals
NetworkDesign Demand Sensing
And Shaping PostponementOptimization
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Oracle Advanced PlanningComplete 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)
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Integrated Oracle Advanced Supply Chain Planning
Advanced Supply Chain Planning
E-Business Suite Advanced Planning
StrategicNetwork
Optimization
ProductionScheduling
DemandManagement
Real-Time Sales and
Operations Planning
Collaborative Planning
GlobalOrder
Promising
Demandforecast
Constrainedsupply
• Items and categories
• Bills of material
• Routings
• Resources
• Production and inventory costs
• Organizations
• Customers
• Calendars and shifts
• Units of measure
• WIP discrete jobs
• OPM process batches
• OPM complex routings and recipes
• OSFM lot-based jobs
Safetystock
Trade Promotion Planning
Inventory Optimization
Sourcingrules
Planned orders
Order forecastSupply commit
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APS Business Flow: Plan
DemandManagement
BISPerformance
KPI targets
Sales demand
Forecasted demandCustomer demand forecast
ASCP
Optimized plans
OrderManagement
Supply Chain
Sourcing rules
Existing supply
InventoryOptimization
Safety stock demand
Bills of Material
Production capacityProduct structure
CollaborativePlanning
Supplier capacityInventory
WIP
Purchasing
Shop Floor Mgt.
APS Source
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Advanced Supply Chain Planning
• Supply Chain and Distribution Planning
• Product family and item level planning
• Alternate components, resources, processes, suppliers, facilities, and ship methods
• End-item substitution
• Critical items and resources; aggregate resources
• Bills of distribution and transfer rules
• Circular sourcing, load consolidation, allocation rules
• Include customer and supplier facilities
• Manufacturing Planning• Sequence dependent
setups/changeovers
• Simultaneous resources
• Batch resources
• Alternate resources
• Minimum transfer quantities
• Complex, network routings
• By-products and co-products
• Line rates and takt times
Suppliers
Transportation
Manufacturing
Transportation Transportation
CustomersDistributors
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Advanced Supply Chain Planning
• Evolve at your own pace to a best-in-class solution.
Eliminatespreadsheets
Start anywhere
From less complex to best-in-class -->
• Unconstrained MRP Planning
• Material and capacity planning
• Personalized exceptions and queries
• Tailor workbench for individual users
• Automate release processes
• Automate selection of alternates
• Collaborate with suppliers
• Constrained finite planning
• Multi-facility supply chain planning
• Interactive what-if simulation
• Cost-based optimization
• Advanced decision rules
• Transportation constraints
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Topic Overview: Oracle Advanced Supply Chain Planning
• Oracle Advanced Supply Chain Planning
• Oracle Advanced Supply Chain Planning features
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Oracle Advanced Supply Chain Planning
Respects constraints… …while meeting organizational objectives
…across the supply chain
Balanced supply and demand…
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Oracle Advanced Supply Chain Planning Features
• 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
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Oracle Advanced Supply Chain Planning Features
• Optimization objectives– Maximize inventory turnover ratio– Maximize plan profit– Maximize on-time delivery
0 1
0.230.23
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Oracle Advanced Supply Chain Planning Features
• Planner Workbench:– Decision-support tool– Flexible, intuitive, and easy to use interface– Navigation paths to related information– Designed to streamline common activities of planners
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Oracle Advanced Supply Chain Planning Features
• 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
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Oracle Advanced Supply Chain Planning Features
• Integrated Performance Management:– Multiplan KPI comparisons– Multiplan exception comparisons– Integration with Oracle Workflow:
— Notification and corrective action alerts
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Oracle Advanced Supply Chain Planning Features
• Supporting all manufacturing methods in mix mode:– Oracle Discrete Manufacturing– Oracle Project Manufacturing– Oracle Flow Manufacturing– Oracle Process Manufacturing– Oracle Shopfloor Management (OSFM)
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Topic Overview: Plan Types
• Unconstrained
• Constrained– Enforce capacity constraints– Enforce demand due dates– Decision rules
• Optimized
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Unconstrained
…across the supply chain
Balanced supply and demand…
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Constrained
Respects constraints…
…across the supply chain
Balanced supply and demand…
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Optimized
Respects constraints… …while meeting organizational objectives
…across the supply chain
Balanced supply and demand…
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Plan Class Example: Unconstrained
Machine constraint
Labor constraint
1 2 3 4 5
Production
Dem
and
P
roduction
D
emand
Dem
and
Production
D
emand
P
roduction
Dem
and
Production
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Plan Type Example: Constrained
Machine constraint
Labor constraint
1 2 3 4 5
Production
Dem
and
P
roduction
D
emand
Dem
and
Production
D
emand
P
roduction
Dem
and
Production
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Plan Type Example: Optimized with Maximum On-Time Delivery
Machine constraint
Labor constraint
1 2 3 4 5
Production
Dem
and
D
emand
Dem
and
Production
D
emand
P
roduction Dem
and
Production
Overtime
P
roduction
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Plan Type Example: Optimized with Minimize Inventory Carrying Costs
Machine constraint
Labor constraint
1 2 3 4 5
Production
Dem
and
P
roduction
D
emand
Dem
and
Production
D
emand
P
roduction Dem
and
Production
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Plan Type Scenario
25 25
75 75
50 50 50 50
60 60 60 60
Planning Period
Day 1 Day 2 Day 3 Day 4Sales Orders
Priority 1, $1.00
Priority 2, $2.00
Supply constraint
Material capacity
Resource capacity
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Plan Type Scenario - Unconstrained
Planning Period
Day 1 Day 2 Day 3 Day 4
25 25
75 75
50 50 50 50
60 60 60 60
25 25
75 75
Sales orders
Priority 1, $1.00
Priority 2, $2.00
Supply constraint
Material capacity
Resource capacity
Planned supply
P1 Order, $1.00
P2 Order, $2.00
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Plan Type Scenario – Constrained - Enforce demand due dates
Planning Period
Day 1 Day 2 Day 3 Day 4
25 25
75 75
50 50 50 50
60 60 60 60
25 25
25 25 50 50
Sales orders
Priority 1, $1.00
Priority 2, $2.00
Supply constraint
Material capacity
Resource capacity
Planned supply
P1 Order, $1.00
P2 Order, $2.00
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Plan Type Scenario : Constrained - Enforce capacity constraints
Planning Period
Day 1 Day 2 Day 3 Day 4
25 25
75 75
50 50 50 50
60 60 60 60
25 25
35 35 60 20
Sales orders
Priority 1, $1.00
Priority 2, $2.00
Supply constraint
Material capacity
Resource capacity
Planned supply
P1 Order, $1.00
P2 Order, $2.00
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Plan Type Scenario : Optimized
Planning Period
Day 1 Day 2 Day 3 Day 4
25 25
75 75
50 50 50 50
60 60 60 60
50
50 50 50
Sales orders
Priority 1, $1.00
Priority 2, $2.00
Supply constraint
Material capacity
Resource capacity
Planned supply
P1 Order, $1.00
P2 Order, $2.00
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Topic Overview: Implementation Progression
• Implementation progression
• Benefits of implementing in phases
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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
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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
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Topic Overview: Planning Business Flow
• ASCP business flow
• ASCP business flow: Prepare
• ASCP business flow: Execute
• ASCP business flow: Analyze
• ASCP business flow: Implement
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ASCP Business Flow
Determine consensus forecast
1. Prepare
4. Implement
2. Execute
3. Analyze
Run production plan
Analyze plan
Implement revised constraints
Release schedule
Adjust plan
Simulate with revised constraints
Collaborate on revised constraints
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ASCP Business Flow: Prepare
Determine consensus forecast
1. Prepare
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ASCP Business Flow: Execute2. Execute
Run production plan
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ASCP Business Flow: Analyze
3. Analyze
Analyze plan
Adjust plan
Simulate with revised constraints
Collaborate on revised constraints
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ASCP Business Flow: Implement
4. Implement
Implement revised constraints
Release schedule
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Topic Overview: Planning Data Flow
• Planning data flow
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Planning Data Flow
TransactionData
PlanningData
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Planning Data Flow
TransactionData
PlanningData
Source Instance/Server
Destination Instance/Server
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Planning Data Flow
Instance/Server
TransactionData
PlanningData
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Planning Data Flow
Transactiondata
Planningdata
Data Collection
Launch Supply Chain Planning ProcessPlanner Workbench
Release Planned Orders/ Recommendations Collections Workbench
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65410
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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
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Demand and Supply
ASCP Fundamentals
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Objectives
• After completing this module, you should be able to do the following:
– Describe demand types– Describe sales orders– Describe forecast consumption– Describe supply types– Review demand and supply
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Independent
Forecast
Customer Order
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Dependent
Forecast
Customer Order
Independent Demand
Subassemblies, Buy Components,
Transfer Components
Dependent Demand
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Safety Stock: Inventory Optimization
CustomersDistributioncenters
Fabricationplant
Assemblyplant
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Safety Stock: Inventory
• PERIODS
• Gross Requirements
• Scheduled Receipts
• Net Requirements
• Planned Order Due
• Projected Available
1
100
140
140
50
2
300
300
300
50
3
50
4
500
500
500
50
Manual
Mean absolutedeviation
Safety Stock = 50
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Safety Stock: Planning
• PERIODS
• Gross Requirements
• Scheduled Receipts
• Net Requirements
• Planned Order Due
• Projected Available
1
100
157
157
67
2
300
367
367
134
3
134
4
500
450
450
84
Item attributesSafety Stock Percent = 50%
Safety Stock Bucket Days = 3
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Topic Overview: Sales Orders
• External and internal
• Plan to request/schedule/promise dates
• Sales order entry process
• Processing cycle
• Demand priority
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External and Internal
Final assemblyplant
Feeder plant
External
Internal
Distribution center
Distribution center
Customer
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Plan to Request/Schedule/Promise Dates
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Sales Order Entry Process
• Enter Sales order header information:– Customer name or number– Order type
• Order line information:– Item– Quantity– Unit of Measure
• Book the sales order
• Schedule the sales order
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Processing Cycle
Enter
Schedule
Book
Invoice
Pick Release
Ship Confirm
Oracle Shipping Execution
Oracle Order Management
Oracle Receivables
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Demand Priority
Priority 1
Priority 2
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Topic Overview: Forecast Consumption
• Forecasts: Demand Planning
• Forecasts: Transaction Data Store
• Forecast consumption overview
• Consumption days
• Days
• Weeks
• Periods
• Multiple bucket types
• Forecast consumption flow options
• Forecast bucket consumption
• Demand classes
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Forecasts: Demand Planning
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Forecasts: Transaction Data
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Forecasts: Transaction Data
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Forecasts: Transaction Data
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Forecast Consumption Overview
Current forecast
Original forecast
Customer orders
= -
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July1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Backward consumption limit
day
Forward consumption limit
day
Sales Order #143A Jul 8 120
Consumption Days
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Days
Backward consumption days = 5 from Day 8 (Days 5, 4, 3, 2, 1)
Forward consumption days = 5 from Day 8 (Days 9, 10, 11, 12, 15)
Overconsumption entryin forecast seton July 8for quantity - 40
July
20
0
Original
Current
20
0
20
0
20
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
12 4
5
3
Sales Order #143A Jul 8 120
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Demand Classes
Material plan(MPP, MPS, MRP)
Mail orderforecast
Mail ordersales orders
Retail forecast
Retailsales orders
Wholesaleforecast
Wholesalesales orders
DC = MO DC = WS DC = WSDC = MO DC = RT DC = RT
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Demand Classes
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On Hand
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Scheduled Receipts
• ITEM A
• Gross Requirements
• Scheduled Receipts
1
80
110
2
80
110
3
200
110
4
200
110
5
200
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Purchase Requisitions
Manual Entry and Production
Plan
Buyer
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Purchase Orders
ReceivingSupplierBuyer
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Scheduled Receipts for Make Items
InventoryShop Floor
Production Plan
Planner
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Summary
• In this module, you should have learned how to:– Describe demand types– Describe sales orders– Describe forecast consumption– Describe supply types
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Planning Information and Planner Workbench
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Topic Overview: Planner Workbench
• Introduction
• Navigation window
• Planning analysis windows
• Owning organization
• Navigation tips
• Preferences and folders
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Introduction
• Planner Workbench uses
• Windows
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D
D. Expand the ‘+’ to get the list of Actions for this plan.D. Expand the ‘+’ to get the list of Actions for this plan.
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Summary
• In this module, you should have learned how to:– Describe planner workbench– Describe how to research data for planning– Describe planning results– Describe planner strategies
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Modeling the Supply Chain
ASCP Fundamentals
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Objectives
• After completing this module, you should be able to do the following:
– View enterprise data– View item data– View material data– View resource data– View sourcing data– View supplier data– View calendar, lead time, and time fence data – View transportation data– Model the supply chain
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Overview
Order Mgt
CustomersPrice lists
Inventory
OrganizationsItemsItem attributesOrg. assignment
Engineering
BOMDepartmentsResourcesRoutings and standards
Supply Chain
Shipping networksSourcing rulesBills of distributionAssignment sets
Purchasing
Supplier listSupplier capacityDelivery calendar
Cost
Item costsResource ratesAccounts
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Topic Overview: Enterprise
• Instances
• Operating units
• Organizations
• Subinventories and locators
• Setting up organizations
• Organizations and subinventories
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Instances
Single InstanceR12
Planning
D2
Miami
D1Singapore
S1Chicago
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Instances
• You can launch a supply chain plan to plan organizations regardless of the instances that they are in.
R11Instance
AAA
R12APS Instance
Database links
AAA:D1
AAA:D2
R11iInstance
CCC
Database links CCC:S1
D2
Miami
D1Singapore
S1Chicago
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Operating Units
• You can launch a supply chain plan to plan organizations regardless of the operating units or sets of books that they are tied to.
OperatingUnit
V1,Vision
InventoryOrganization
InventoryOrganization
S1,Chicago
M2,Boston
Item Master
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Organizations
Final assemblyplant
Feeder plant
Distribution center
Distribution center
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Organization Security
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Subinventories and Locators
• Subinventories
• Locators
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Setting Up Organizations
• Organization window
• Organization Parameters window
• Subinventories window
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Organizations and Subinventories
• While setting up organizations and subinventories, consider:
– Inventory transactions occur in subinventories– ASCP does not plan subinventory transfers– Inventory Optimization does not calculate safety stock at
the subinventory level– Demand Planning forecasts by organization, not by
subinventory– Global Order Promising calculates availability at the
organization level– Order Management designates one organization for item
validation across the operating unit
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Topic Overview: Items
• Items
• Item attributes
• Organization item
• Order modifiers
• Item attribute mass maintenance
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Items
Distribution
Items
Production
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Item Attributes
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Item Attributes for Planning
• Main Tab– Unit of Measure
• Inventory Tab– Inventory Item
– Stockable
– Transactable
• Bills of Material Tab– BOM Allowed
– BOM Item Type
• Purchasing Tab– Purchasable
– Use Approved Supplier
• Physical Attributes– Weights and measures
• Work In Process Tab– Build in WIP checkbox
– Supply Type
• Order Management– Customer Orders Enabled
– Internal Orders Enabled
– Check ATP
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Item Attributes for Planning
• General Planning Tab:– Make or Buy– Safety Stock Method– Order modifiers (lot-sizing rules)– Planner Code
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Item Attributes for Planning
• MPS/MRP Planning Tab– Planning Method– Forecast Control– Pegging– Exception Set– Time Fences
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Plan Type and Planning Method Attribute
MPP
MPS
MRP
• MPP Planned
• MPS/MPP Planned
• MRP/MPP Planned
• MPS Planning
• MPS/MPP Planning
• MRP Planning
• MRP/MPP Planned
• All planned items
IP • MRP Planning
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Critical Components
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Organization Item
OperatingUnit
V1,Vision
InventoryOrganization
InventoryOrganization
S1,Chicago
M2,Boston
Item Master
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Order Modifiers
Sold in pallets of 100
Net requirement
Item A = 72
Planned order
Item A = 100
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Item Attribute Mass Maintenance
• Planning item attribute values can be modified in the planning server.
– Use query criteria to select the items for which planning attributes need to be updated.
– Selectively update one or more of the item planning attributes.
– Create multiple versions of item attributes for simulation purposes.
— Group and save item attribute changes as a Simulation Set.
— Maintain Simulation Sets independently.– Link a Simulation Set to a plan in the Plan Options.
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Item Attribute Mass Maintenance
• The Simulation Set only holds the changes for the collected planning item attributes.
• When running a plan, these changes overwrite the collected data values for that specific simulation plan.
– Note: The collected data itself does not change. Update the source data if a permanent change is required.
Advanced Planning
Plans
Collected data
Simulation Sets
Oracle ERPsource data
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Item Attribute Mass Maintenance
• Use the “Query” feature to retrieve items for updates:– Query and display the items included or not included in
the simulation set.– Base the Query on original values or updated values.– Save the Query as a folder for later retrieval.
• Use the “Select all” feature to select all displayed records for mass updates.
• Modify the values of attributes: – Directly set a new value.– Increase and decrease original values.– Restore original values.
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Item Attribute Mass Maintenance Benefits
• Improve simulation capability.– Modify item attributes to perform what-if analysis.– Multiple simulation scenarios can be created, each with
its own set of item attributes.
• Reduce Planning cycle time.– Rapidly correct or change item attributes without re-
collecting data.
• Update planning specific attributes that are not available in ERP such as:– Minimum Remaining Shelf Life (Days)
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Item Attributes Supported for All ASCP Plans
– Critical Component
– Preprocessing Lead Time
– Processing Lead Time
– Post processing Lead Time
– Fixed Lead Time
– Variable Lead Time
– Fixed Order Quantity
– Fixed Days Supply
– Shrinkage Rate
– Fixed Lot Multiple
– Minimum Order Quantity
– Maximum Order Quantity
– Service Level
– Carrying Cost
– Demand Time Fence Days
– Forecast Control
– Planning Time Fence Days
– Standard Cost
– Net Selling Price
– PIP Flag
– Selling Price
– Substitution Window
– Safety Stock Days
– Unit Weight
– Unit Volume
– Safety Stock Method
– Safety Stock Percent
– ABC Class
– Planning Method
– Minimum Remaining Shelf Life
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Item Attributes Supported for DRP Plans Only
– DRP Planned
– Max Inventory Days of Supply
– Max Inventory Window
– Target Inventory Days of Supply
– Target Inventory Window
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Topic Overview: Material
• Bills of material
• Indented bills of material
• Alternate bills of material
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Bills of Material
A
B C
D E
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Indented Bills of Material
• Seattle Manufacturing, M1:• AS41001
• CM86234• CM41102• SB41101
– CM41201
– MC41203— SC94043
– MC41204— SC94043
– MC41205— SC94043
– SB41202
• Chicago Subassembly, S1• SB41202
• CM41301• SB41302
– CM41401
– CM41402
• CM41303
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Alternate Bills of Material
A
B C
D X
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Topic Overview: Resource I
• Workday calendar, work patterns, and shifts
• Defining work hours for a work shift
• Departments and resources
• Routings
• Modeling resource constraints
• Non critical patch resources
• Sequential resources
• Overlapping resources
• Simultaneous resources
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Topic Overview: Resource II
• Alternate resources
• Scheduling time window width for alternate resource
• Resource selection dependency
• Multiple resource scheduling
• One resource to one unit at a time
• Batch resources
• Minimum transfer quantity
• Modeling production resource capacity
• Multiresource scheduling
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Workday Calendar, Work Patterns, and Shifts
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Defining Work Hours for a Work Shift
• Define work calendar
• Attach work calendar to organization
• Define shift name, attached to calendar
• Define workday pattern for the shift name
• Define work shift hours for the shift name
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Departments and Resources
• Define resources
• Define departments
• Assign resources to departments
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Operation 20Dept: ShippingResource: Warehouse LaborResource: ForkliftMaterial:
Operation 10Dept: AssemblyResource: Assembly LaborResource: Tool kitMaterial:
Routings
AS41001
SB41101 CM41102 CM86234
Packaging
AS41001
SB41101 CM41102 CM86234
Parent
Work order
Components
Bill
Routing
PackagedPDA
StylusPDA Asm
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Modeling Resource Constraints
• Operation Resource Schedule:– Yes– No– Prior– Next
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Non Critical Path Resources
• Machine paced operation:– Drill: Schedule = Yes– Machinist: Schedule = No
• Only the machine time is scheduled
Drill
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Sequential Resources
• Operation 10: Finishing– Sander, Schedule = Yes– Paint sprayer, Schedule = Yes
• Usage time is scheduled consecutively
Sander Paint Sprayer
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Overlapping Resources
• Operation 10: Finishing – Sander: Schedule = Yes– Paint Sprayer: Schedule = Prior Offset 30%
• Resources are consumed during an overlapping time period.
30% Offset
Sander
Paint Sprayer
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Simultaneous Resources
• Resources are scheduled for the same time period
• Primary resource group:
Hammer
Chisel
Direct labor
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Alternate Resources
• Replacement resource group
Hammer
Chisel
Direct labor
Rock
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Scheduling Time Window Width for Alternate Resource
• MSO: Schedule Window Width
• Time period that you are willing to wait for the primary resource to become available
Alternate Resource(available)
Primary Resource(not available)
Window
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Resource Selection Dependency
Operation 10 Setup (Primary Resource)
OR
Operation 10 Run (Primary Resource)
Operation 10 Setup (Alternate Resource)
Operation 10 Run (Alternate Resource)
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Multiple Resource Scheduling
• Task duration inversely proportional to number of resources applied
– Assigned units– Maximum available resource units
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One Resource to One Unit at a Time
• Round Order Quantities checkbox = selected:– Operation can not work on a fractional unit – Operation time can not be reduced by increasing the
number of resources applied
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Batch Resources
• Critical issues for scheduling batch operations are:– Grouping items for scheduling– Constraining resources along multiple dimensions– Honoring minimum and maximum batch sizes– Delaying or building in advance to make up a batch
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Batch Resources
• Batching window
• Minimum and maximum batch capacity
• Batchable unit of measure
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Minimum Transfer Quantity
Operation 10 Operation 20Minimumtransferquantity
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Modeling Production Resource Capacity
• Define work time available
• Define production resources available
• Use efficiency and utilization factors to modify capacity
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Multiresource Scheduling
Processing Resources Operation Duration
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Topic Overview: Sourcing I
• Modeling the supply chain
• Virtual enterprise structure
• Supply chain structure
• Modeling shipments between organizations
• Modeling shipments between organizations and external sites
• Supply chain links
• Sourcing rules
• Allocating demand to suppliers
• Sourcing splits
• Allocation rules
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Topic Overview: Sourcing II
• Bills of distribution
• Assignment sets
• Sourcing assignment hierarchy
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Modeling the Supply Chain
Internet-based supply chain collaboration
Suppliers Manufacturing Distribution Consumers
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Virtual Enterprise Structure
OperatingUnit
V1,Vision
InventoryOrganization
InventoryOrganization
S1,Chicago
M2,Boston
Item Master
Consumers
Suppliers Customers
Suppliers’Suppliers
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Supply Chain Structure
Manufacturing Plants
Distribution Centers
Chicago, S1
Boston, M2
Miami, D2Singapore, D1
SubassemblyPlant
AdvantageSuppliers
Seattle, M1
Allied
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Modeling Shipments Between Organizations
• Shipping methods
• Shipping networks
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Modeling Shipments Between Organizations and External Sites
• Inter-location transit time
• Inter-location transit capacity
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Supply Chain Links
• Sourcing rules
• Bills of distribution
• Assignment sets
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Sourcing Rules
• Simple from - to relationships
Buy from
Transfer from
Make at
Chicago, S1
Boston, M2
AcmeRank 240%
Rank 1100%
Rank 260%
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Allocating Demand to Suppliers
Supply
60%
40%
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Sourcing Splits
Buy from
Transfer from
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Allocation Rules
• The total allocation percentage for all sources within a rank must be 100%
• The planning engine sources with the highest rank have the highest priority in allocation
• Optimization sources with the lowest penalty adjusted cost have the highest priority in allocation
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Bills of Distribution
• Model relationships that would otherwise require multiple sourcing rules to describe
SR3
SR2
SR3
SR4SR1
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Assignment Sets
• ASCP Plan: XYZ
• Assignment Set: ASN-S1
• Item: CM41401
• Organization: S1
• Sourcing Rule: SR-S1
• Supplier: Acme
Chicago, S1
CM41401
Acme
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Item Category - organization
Item - organizationSpecific
General
Item Category
Item
Organization
Global
Sourcing Assignment Hierarchy
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Topic Overview: Suppliers
• Approved supplier list
• Approved supplier list functions
• Enhanced sourcing
• Supplier sourcing setup
• Supplier-item attributes
• Supplier capacity
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Approved Supplier List
Commodity
Items
Ship-ToOrganization or
Global Organizations
Approved Supplier List
Supplier Site
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Approved Supplier List Function
• Traditional MRP functionality:
• Align– due date with– date of need
• Approved supplier list functionality:
• Supplier- and item-specific:– Lead times – Delivery calendars– Order modifiers
Item averageprocessing lead time
Supplier-Item specificprocessing lead time
Valid deliverycalendar date
Plannedorder release
Demand need date
Supply due date
Plannedorder release
Supply due date
Demand need date
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Enhanced Sourcing
• Based on capacity constraints
• Use flexible tolerance fences to model supplier capacity constraints that can change with advance notice
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Enhanced Sourcing
• Based on historical allocations
• Disable ASL entries
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Supplier Sourcing Setup
• Define approved suppliers
• Define receiving calendar
• Assign supplier-item attributes – Delivery calendar – Order processing lead time and quantity modifiers – Supplier capacity and tolerance
• Define sourcing rules and bills of distribution
• Specify the assignment set
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Supplier-Item Attributes
• Delivery calendar
• Processing lead time
• Order modifiers
• Supplier flexible capacity tolerance fences
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Supplier Capacity
Required Available
Required
Available Required
Available
Balanced Underloaded Overloaded
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Topic Overview: Lead Times and Time Fences
• Lead times
• Lead times in requirements explosion
• Cumulative lead time
• Time fences
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Lead Times
• Preprocessing
• Processing
• Post processing
• Fixed
• Variable
• In-transit
• Lead time lot size
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Lead Time Offset
• Total lead time:– Preprocessing– Processing– Post processing
• Cumulative manufacturing lead time
• Cumulative total lead time
• User-defined lead time
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Time Fences
• Time fences should be set to the lowest values that are practical.
• Planning
• Demand
• Release
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Topic Overview: Transportation
• Shipping methods
• Shipping network
• Transit times
• Zones and regions
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Shipping Methods
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Shipping Network
Manufacturing Plants
Distribution Centers
Chicago, S1
Boston, M2
Miami, D2Singapore, D1
SubassemblyPlants
Suppliers
Seattle, M1
Customers
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Transit Times
• Inventory organizations
• External site and inventory organization
• Ship method
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Zones and Regions
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Summary
• In this module, you should have learned how to:
• View enterprise data
• View item data
• View material data
• View resource data
• View sourcing data
• View supplier data
• View calendar, lead time, and time fence data
• View transportation data