1-1 Copyright © Oracle Corporation, 1999. All rights reserved.

Oracle Advanced Planning & Scheduling

Plan

Execute

Measure

Improve

1-2 Copyright © Oracle Corporation, 1999. All rights reserved.

The Tool we used MRP

• Sequential process

• Unconstrained production, storage, and transportation capacity

• Not optimized

• No capacity decision support

• Re-planning is not triggered by events

1-3 Copyright © Oracle Corporation, 1999. All rights reserved.

Evolution of Advanced Planning Systems

• MRP / MRP II

• Fast, cheap computing power

• Finite capacity scheduling

• Supply chain

• Optimization

MRP MRP II APSAPSfor

e-business

1970 1980 1990 Y2k

1-4 Copyright © Oracle Corporation, 1999. All rights reserved.

History of Oracle APS

• Manufacturing and supply chain planning products

• Third generation of memory based planning products

• Release 11, simultaneous material and capacity planning, online simulation

• Release 11i, optimization and constraint based planning

1-5 Copyright © Oracle Corporation, 1999. All rights reserved.

What is Optimization?• A model represents the essential elements of a

system• Objective criteria are used to evaluate alternative

feasible solutions & feasible solutions satisfy all of the system constraints

• Constraints specify feasibility boundaries for the solution to the model, for example: – resource constraints limit the ability to produce

• Assumptions state conditions that must be met for the solution to be valid

• The optimal solution to a model best satisfies the objective criteria

1-6 Copyright © Oracle Corporation, 1999. All rights reserved.

Optimization Example

• Wire World - World Leader in– Dip Sticks – Croquet Wickets

• Material Constraint = 24 meters of wire– .6 meters for each product

1-7 Copyright © Oracle Corporation, 1999. All rights reserved.

Material Constraint Optimized

OA

B

Wickets

Sticks

FeasibleSolutions

P10

20

30

10 20 30 40 50

X

Material

40

1-8 Copyright © Oracle Corporation, 1999. All rights reserved.

Optimization Example

• Wire World– Make Dip Sticks and Croquet

Wickets• Material Constraint = 24 meters of wire

– .6 meters for each product• Resource Constraint = 300 minutes

– 10 minutes for Dip Stick– 6 minutes for Wickets

1-9 Copyright © Oracle Corporation, 1999. All rights reserved.

Material and Resource Constraint Optimized

O A

B

Wickets

Sticks

FeasibleSolutions

P

S

W

10

20

30

A10 20 3040 50

40

1-10 Copyright © Oracle Corporation, 1999. All rights reserved.

Objective: Maximize Revenue

Point

A

P

S

Wickets@ $0.10

40

25

0

Sticks@ $0.15

0

15

30

Total Revenue

$4.00

$4.75

$4.50

•Objective = Maximize Revenue From Sales

–.15 for Dip Sticks–.10 for Wickets

1-11 Copyright © Oracle Corporation, 1999. All rights reserved.

Optimal Solution

• Use the available resources to produce 25 wickets and 15 sticks

• Assumptions: – Constraints are linear and continuous– Single, linear objective– Only two decision variables (sticks

and wickets)

1-12 Copyright © Oracle Corporation, 1999. All rights reserved.

Objectives of APS Systems

• Global visibility

• Rapid planning cycles

• Better plans

• Fewer plans to synchronize

• Rapid return on investment

1-13 Copyright © Oracle Corporation, 1999. All rights reserved.

Non-Synchronized Architecture

Aggregatedata

Transactiondata

High levelplan

Transactiondata

Transactiondata

Transactiondata

Semi-aggregate

data

Detaileddata

Mid rangeplan

Near termplan

Source: AMR Research

1-14 Copyright © Oracle Corporation, 1999. All rights reserved.

Best in Class APS Architecture

Transactiondata

High levelplan

Transactiondata

Transactiondata

Transactiondata

Aggregatedata

Semi-aggregate

data

Detaileddata

Mid rangeplan

Near termplan

Source: AMR Research

1-15 Copyright © Oracle Corporation, 1999. All rights reserved.

Single Common Data Model

Multi-levelsupplychainplan

Aggregatedata

Semi-aggregate

data

Detaileddata

Common data

model

Common memory model

1-16 Copyright © Oracle Corporation, 1999. All rights reserved.

Big Picture

D2Miami

Supplier

D1Singapore

M2Boston

S1

Chicago

Supply ChainPlanning Engine

Supply ChainAvailable to Promise

BIS, SCPPI

Demand Planning

TransactionSystems

R11i

R10.7

R11

Other

D1

D2

M2

S1

Supl.

Multi- Org.PlanningServer

Net C

hange Snapshot

1-17 Copyright © Oracle Corporation, 1999. All rights reserved.

Holistic Planning, Scheduling and Optimization

• Features

One plan

Suppliers ConsumersMFG

partner

Virtual manufacturer

Logistics partner

Internet

InternetInternet

Internet

1-18 Copyright © Oracle Corporation, 1999. All rights reserved.

Oracle APS

Global ATPServer

ManufacturingScheduling

DemandPlanning(OLAP)

AdvancedSupply Chain

Planning

Internet-basedcollaboration