Appsworld 2003Appsworld 2003

Integrating the Supply Chain Integrating the Supply Chain in Process Industriesin Process Industries

Cesare KimCesare Kim

26 June 200326 June 2003

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Oraplus Background

– Founded in 1997 – Offices in Italy, France, USA and the UK– Specialised in the implementation of Oracle based solutions– Vast repository of technical and functional expertise– Participation in over 40 major projects in 8 countries in 3 continents– Oracle Certified Partner– Extensive experience in Remote Oracle Support and Hosting

– Certified ISO 9001 EN:2000 for the design, development, management and support of solutions based on Oracle Technology

“We leverage Oracle technology in order to achieve major cost reductions

and provide strategicadvantage to our clients”

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Introduction

The OPM Solution

The Oracle APS Solution

ASCP and Manufacturing Scheduler Integration

Case Study for a Bio-Chemical Company

Q&A

Agenda

Introduction

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Third-party APS systems

• OPM has traditionally integrated with i2 and other packages such as Manugistics

• Different look and feel for the different modules• Three points of failure

– OPM– Links– Third-party APS system

• Different vendors with different support policies• Different vendors with different upgrade and technology

stategies

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An Integrated Solution

• Same look and feel• Single sign-on• Single-vendor interface• Integrated support/upgrade strategy• No need for customization/data cleaning due to

architectural differences• Lower TCO

The OPM Solution

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Native Planning Capabilities

• Static lead-time and standard lot size definition– Identification of standard procurement leadtimes and lot sizes– Auto-calculation of standard leadtimes for manufactured goods

• Quick single planning run– OPM MRP runs can be multi-warehouse and are very quick to produce a

single MPS/MRP

• Infinite Capacity Planning– Infinite Capacity capability only.– Graphical drag and drop interface allows quick manual leveling

• Inter-organization transfer capability– Creation of an internal distribution network with specific transfer rules

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Modelling Considerations

• Model creation based on simplification – Occam’s razor– Identify critical processes– Identify critical resources

• Model creation based on standard Client processes– Pareto Principle (80% of the issues are resolved with 20% of the effort)

• Model by increasing complexity– Initial model should be limited to simple processes to enhance Client

understanding of OPM– As processes and resources increase, so do their interactions, and a

model that approaches reality is developed collaboratively

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Bio-Chemical Process Modelling

• Chemical and Biological synthesis processes are different for assembling and mixing processes

• Reactor planning requires fixed leadtimes - resource capacities have different meanings

• The interaction between different operations can be very complex as constraints are not fixed but depend on the interaction of all processes

The Oracle APS

Solution

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Supply Chain Modelling

• Multi-server Architecture• Multi-site• Planning across time-zones• Resource and Supplier capacities• Single-Cycle Planning run• Model Procurement and Manufacturing simultaneously• Optimise by Objectives

Ingredients and Resources

Intermediate or Bulk Products

Finished Product

Supplier Customers

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Manufacturing Scheduling

• Modelling environment on top of Transactional System• Capacity-constrained fine scheduling• Setup optimization• Resource rather than Material-centric

ASCP&

Manufacturing SchedulerIntegration with OPM

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ASCP Architecture

• Logical segregation of Transactional and Planning Data• Data can be on one or two physical machines• Integration between the two worlds by Data Collection• Normalisation of data from heterogeneous Transactional

systems• Return to Transactional system as recommendations

OPM

Application Data StoreStaging Tables

ASCP

Operational Data Store

Planning Recommendations

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ASCP OPM Integration

• Model Formulas and Routings from OPM

• Model Effectivities using OPM Recipes

• Model Resource Capacities using OPM

• Model Suppliers using Supply Chain Planning

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ASCP OPM Integration Limits

• Cannot model charges• Powerful but delicate sinergy• Information is distributed over many

modules• Significantly more maintenance at the

technical level

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Manufacturing Scheduling OPM Integration

• Take a snapshot of current jobs• Calculate resource availabilities• Manually level resources by drag and drop• Automatically schedule using optimization objectives and

constraints

CaseStudy

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Common Bio-Chem Requirements

Need to:– Plan reactors– Coordinate extremely long and complicated routings

with significant resource overlaps– Manage maintenance– Manage cleaning and setups– Schedule operations over inactive periods– Plan across a very long horizon for procurement

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Modelling Reactors

• Chemical and biological synthesis processes are quantity independent– The reactor volumetric capacity will only dictate maximum quantity– Reaction time is based on process not quantity

• Charge functionality partially addresses issue– Reactor volumetric capacity is modelled but this is often insufficient– Many companies manage different levels of detail for planning and

fabbrication modelling

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Generic Resource

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Plant Resource

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Operation Header Information

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Operation Detail Information 1/2

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Operation Detail Information 2/2

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Objective: Complete Reactor Saturation

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Maintenance Management

• Can use Resource Exceptions for basic scheduled maintenance

• Enterprise Asset Management will be interfaced with ASCP to have a completely integrated Management suite

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Manage Reactor Cleaning and Setup

• Cleaning operations and setups depending on the material processed in the previous batch

• Modelling different recipes is a possible solution

• Manually inserting downtimes is another possibility

• Using Manufacturing Scheduler for fine scheduling is probably the best solution

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Break Management

• Special cleaning processes may be required if reactors are inactive for too long

• Some operations may not be interrupted

• Model operations for minimum length to complete operations

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Procurement

• Many tipologies of ingredients can be purchased at cheaper rates in relatively distant countries

• Need to plan for long procurement cycles

• Use ASCP long-term Procument Planning

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Prototype Solution

• Use ASCP to develop a long-term infinite capacity plan• Actuate mid-term finite capacity procurement and

manufacturing• Fine schedule using Manufacturing Scheduler• Minimal level of detail necessary to schedule and plan• Complete automation is difficult using a simplified model so

a graphical drag and a drop interface becomes crucial for planners

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Lessons learned

• Stay up to date with latest rollups during implementation

• ASCP is an integrating force• Include a heavy patch

installation and testing contingency

• Unexpected results are often due to setup issues

• Profile Options!

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Q&A