demantra casestudy

Presented by Sunday Ichie

Implementing Demantra as a replacement to a legacy

forecasting tool:

A TI Success Story

http://www.doug.org/

IntroductionIntroduction

Business EnvironmentBusiness Environment

Agenda

Legacy System BackgroundLegacy System Background

Business CaseBusiness Case

Implementation ExperienceImplementation Experience

Case Study ConclusionsCase Study Conclusions

Introducing Education Technology (Ed Tech division)

Revenue $500+M Product lines:

Calculators (graphic, scientific and business) Classroom learning systems, Data collection devices & computer software

World leader in products focused on bridging the gap between education and technology

Works with educators throughout the world in designing and developing technology for classrooms

A well-managed company and great place to work

http://www.sxc.hu/browse.phtml?f=download&id=1003809

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TI InterActive!

TI Connect

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Product Lines

TI-Presenter



Agenda





Suppliers Manufacturers

INVENTORY

Distribution

INVENTORY

End CustomersChannel

INVENTORY

INVENTORY

Supply Chain Operations

Three primary suppliers (Far East)

Sourced from

China

4 global distribution Centers

Major Retail chains and Distributors

Students, teachers, end users

Supply Chain Overview

Seasonal business (back-to-school) Forecast at calculator level Data collection fed into ASCP. Output is pushed back to MRP (PO, WIP) Supplier schedules generated for suppliers every two weeks. Schedules are in 13 weekly buckets and 9 monthly buckets. Suppliers commit to schedules and are manually input into Apps Primary Supplier Schedule for 300 Item/Supplier Finished

Goods combinations• Forecast at detail level (Item/Customer/Country) for 1300 Items,

1000 Customers and 23K combinations

Planning Systems Summary

Where we were in 2008…

Full Oracle E-Business suite -Live since 1999 -Currently on 11.5.10.2 Modules = Financials, OM, MWA, many CRM modules Oracle Planning (MRP) – 1999

Integration with ASCP 2003 Yantra WMS Data Warehouse Legacy Demand Planning: Manugistics -1999

ERP SystemsOracle ERP Applications (Oracle 11.5.10) Environment

Order Management Oracle iStore iPayment Payables Financials Purchasing Warehouse Management System

WMS (Europe) Manufacturing Oracle Mobile Web App (MWA) Shipping and Logistics

Chainware Loftware Vendor Connect

Demand Planning: Manugistics Oracle Planning: Oracle Discoverer View and Plus (Reporting) Data Warehouse (Reporting) Oracle Single Sign-On (SSO)



Agenda





Legacy System

Manugistics NetWORKS Demand and Collaborate

(Scheduling and Demand loading)

Statistical forecast engine Graphical and data table interface One forecast in and one forecast out Provides the ability to add an override at a higher level

and allocate that override to the lower levels 3 separate modules – equated to long batch processing

and forecast load times

Operational Decisions (Daily/Hourly or shorter)

Tactical Decisions (Monthly/Weekly)

OrderCommitment

Manugistics FunctionalityTM

Strategic Decisions (Annually/Quarterly)

Sales Planning

Strategic Planning

Master Planning

Detailed SchedulingOrderCommitment

Supplier Planning

Transportation Management

Forecasting Process Flow

•Manugistics•Data Warehouse

•Oracle ASCP

Sales & Marketing Inputs

Reporting: Finance (Revenue, Margins, Costs…) SCP (Quantity, Dates) …

ASCP: E2E Planning

Reporting: Reviews & Consensus

DatabaseServer Client

RPCs

ApplicationServer

Databases

SQL*Net

Manugistics Infrastructure –Hardware & Software

Sun Solaris 2.6SCPO Server V6.02Oracle RDBMS 8.0.6.0Transarc DCE V2.0

NT Server 4.0NetWORKS Collaborate v6.0.1BEA WebLogic Server v4.0.3Manugistics ODBC driver for Oracle 8

MS WindowsDP/EE ClientMDAC Version 2.1

Business Application

Application

End of LifeOperating

System (OS)OS

End of LifeHardware

Hardware

End of Life

Manugistics Core

De-Supported

Solaris 2.6 De-Supported Sun Ultra-450 De-Supported

Oracle RDBMS 8.0.6

De-Supported

SCPO Server V6.02

De-Supported

NetWORKS Collaborate v6.0.1

N/A Windows NT 4.0De-Supported

HP Server

De-Supported

Manugistics ODBC driver for Oracle 8

N/AWindows NT 4.0

De-Supported

Manugistics System Support Lifecycle

End of Support Life Near End of Support Life

Forecast accuracy and visibilityCollaborationLots of manual work

Challenges/ Opportunities

Op

erat

ion

al S

up

po

rt

Vendor Support

Integ

ration

Limita

tions

Business Need

No DR – poor business continuity provision

Legacy system out-dated and not sustainableEnd-of-Life Manugistics software

End-of-Life Sun Hardware End-of-Life Solaris OS

No integration to APS No integration to ERP

No support for sales and operations planning



Agenda





Business Case

Forecast Tools in Need of an Overhaul Integrated Supply Chain Planning environment, Forecast accuracy and out of stock occurrences

Key applications were in various states of disrepair, and the risk of affecting business had become very real.

Business faces a risk of the loss of Demand Planning capabilities due to multiple de-support scenarios.

Did not want to rely on EOL Legacy System to forecast $500 million of revenue?

The executive team could not accept the increasing risk of a forecast process breakdown, so a decision was made to take action.”

Action Plan

Run maintainreadiness

Manugistics Infrastructure

Upgrade

Demand Planning

Discovery

Demantra & ASCP Projects

Proactive activities to ensure system availability: keeping the lights on

Vendor Selection

Planning Organization 2008 strategic Projects

Infrastructure upgrade project POC

Improve current operations Freeze development Minimize changes

Explore feasibility of upgrading existing infrastructure: OS and database versions

Define Selection Process

Vendor Selection Process

Vendor Research

Vendor List

Engagement

Evaluation

Select Vendor

Conducted vendor research Internet Whitepaper Gartner (Best of Breed, Magic Quadrant) Past relationships Solicited peers


Vendor Research

Vendor List

Engagement

Evaluation

Select Vendor

Met with stakeholders Engaged selected vendors Requested RFP


Vendor Research

Product Features

Engagement

Evaluation

Select Vendor

Product Features

Ora

cle

DP

De

ma

ntr

a +

Ora

cle

Ma

nu

gis

tic

s

Demand management

Statistical forecasting

Multi-dimensional analysis and reporting

Consensus forecasting

High volume forecasting

Demand shaping (NPI, phase-outs, adjustments etc.)

Trade promotion planning and optimization

Promotion modeling to estimate volume lifts

Scenario analysis to evaluate promotional impact

Optimal promotional spend

Sales and operations planning

Alerts, workflows, and KPIs based automation

Revenue and margin analysis

Demand and supply matching


Vendor Research

Vendor List

Engagement

Evaluation

Select Vendor

Executed vendor evaluations, based on the defined approach evaluation criteria, and scoring. Determined point totals and published final scores internally


Vendor Research

Vendor List

Engagement

Evaluation

Select Vendor

Selected vendor. Notified all other vendors of status. Made plans for the execution of the contract, pending reviews of terms and conditions

Next Steps

Charter a Business Systems Project Identify Business Sponsor Set Measurable Objectives Identify Implementation Partner

CHALLENGES

Years of customizations had resulted in a complex platform, but one that was familiar and comfortable for its resident users. Manugistics ,while out of date and in danger of imminent failure, was getting the job done for the Planners

The biggest challenges associated with this project were user-focused. Convincing the Planners that replacement software was vital to the success of the company was the first hurdle, and introducing the selected solutions would require user preparation

TI Confidential 28

Project – Wish List

Provide the ability to load and archive a Salesman, Consensus, and Statistical forecast

Automated Copy History – update actual sales to particular SKU’s Ability to allocate (dis-aggregation) the statistical forecast at a high

level to a lower level using historical data, proportions, and other appropriate methods

Ability to generate and override multiple forecasts Provides extensive report writing and graphing capabilities. Reduction in batch processes and total run times



Agenda





Project Steps

EVALUATE

EXECUTE

PREPARE

MAINTAIN

PLAN

Upgrade Steps

EVALUATE

EXECUTE

PREPARE

MAINTAIN

PLAN

Evaluate

Replace EOL System

integrated Supply Chain

Planning

Enable Real Time Sales & Operations Planning

Upgrade ASCP

Implement Demantra

DM

Reduced manual

processes

Identify and Prioritize

Project Driversand Objectives

Project Scope (ASCP)

Upgrade ASCP hardware environment to enable stable support for a combined ASCP and Demantra environment. The upgrade activity will bring the environment to the current (Solaris) Operating System and (Oracle ASCP) patch level

The Project end-state will be a combined Oracle ASCP/Oracle Demantra server configuration, enabling more native integration across modules and sharing Data Collection processes between the ASCP/Demantra and Oracle EBS environments

Project Scope (Demantra): Phase I and II

Phase I: Replace Manugistics with Demantra as the global forecasting tool for ET Sales forecasting

Enable a more integrated Supply Chain Planning environment, reduce manual processes, increase forecast accuracy

Enable a Phase 2 project to implement Demantra Real Time Sales & Operations Planning (RTS&OP)

Phase II: Development processes, reports and the enabling of the Demantra RTS&OP module to create a robust real time Sales & Operations Planning process (RTS&OP): Units and Dollars in one place – real time and interactive Support multiple Forecasts, Forecast Revisions & historical

Forecast Deltas In short, the ability to see how we have done in the past (accuracy

by units and dollars) and to factor current forecasts by historical patterns – in real time

Evaluate

Demantra is a completely independent product from Oracle ERP

Oracle Demantra Platform of 6 Solutions

Demand Management Advanced Forecasting and Demand Modeling Real Time Sales and Operational Planning Predictive Trade Planning Trade Promotion Optimization Deductions and Settlement Management

Elements of a Demantra Solution

ClientsA Demantra solution includes multiple client machines, each running a browser to access Demantra

Application ServerWeb server and a J2EE application server, which can be on the same or different machines; for supported software, see the Oracle Demantra Installation Guide

Database ServerEvery Demantra solution includes a database server

Analytical EngineOracle provides two different modes for the Analytical Engine:

In PE mode, the engine is suitable for use with Promotion Effectiveness. In DP mode, the engine is suitable for use in demand planning

applications.

Upgrade Steps

EVALUATE

EXECUTE

PREPARE

MAINTAIN

PLAN

Plan

ASCP Upgrade OS for existing hardware Deploy new ASCP hardware. (Change to multi-node configuration) ASCP Upgrade vs. Re-Implementation Source Side Requirements Replace customizations

Demantra Retool processes Take advantage of simplification opportunities in advance of

Implementation Phasing

Evaluate

Software Requirements Application Servers Client Requirements Licensed Modules

Hardware configuration Hardware Architecture

DB and AS Server Demantra Analytical engine (windows server)

Integration Options Connectivity Requirements (Performance

Requirement)

Hardware Sizing Use Oracle Demantra and ASCP Sizer

Total Locations [50]

Total SKU [200]

Average SKUs per Location [40]

Effective Avg. theoretical SKU/Location Combination [20000]

History Periods [36]

Future Periods [18]

Total Periods [54]

Number of Users [30]

1. EBS 11i10 sources instances + combined 11i10 APS/Demantra destination instance

2. EBS 11i10 sources instances + separate 11i10 APS + separate Demantra destination instance

Data collectors can be used to export the data from Oracle ERP to Demantra but it still needs to be transformed to fit the needs of Demantra.

EBS-Demantra Configurations Options

Data Model

Process & Functional Flow

•Demantra•Data Warehouse

•Oracle ASCP

Sales & Marketing Inputs

Reporting: Finance (Revenue, Margins, Costs…) SCP (Quantity, Dates) …

ASCP: E2E Planning

Reporting: Reviews & Consensus

Current Project Phase is focused on replacing Manugistics with Demantra while maintaining as much consistency with current processes as feasible.

Demantra Integration with Oracle E-business Suite and ASCP 11.5.10 (Decentralized Architecture)

Upgrade Steps

EVALUATE

EXECUTE

PREPARE

MAINTAIN

PLAN

Prepare

Took Advantage of Available ASCP and Demantra Content (https://metalink.oracle.com/)

ASCP Oracle Advanced Planning and Scheduling Suite (118086.1) 11.5.10 - Oracle Advanced Planning Implementation and Users

Guide (B-10144-08) List of High Priority Patches for the APS Suite – (223026.1)

DEMANTRA Oracle Demantra Documentation Library" Metalink. (Doc Id:

443969.1)EBS-Demantra Integration Installation Overview and Diagram (434991.1)

Demantra SIG group website: (http://demantrasig.oaug.org/knowledgebase.php?page=knowledgebase)

https://metalink.oracle.com/

Upgrade Steps

EVALUATE

EXECUTE

PREPARE

MAINTAIN

PLAN

AnalyticalEngine

HP Server (380G5)

Brower (Client)

ASCP Forms/Web OAS 10g R3 (SOA)

OC4J_DemantraSun v880

Existing Hardware

New Hardware

Key

HTTP /HTTPS

OracleNET 8

ASCP DB/CCM &Demantra DB / Services

Sun V890

Architecture

Oracle 11.5.10

Sun SolarisDB/CCM – 8x32 SFe4900

Forms/Web – 3-4x16 SFv440Login via SSO

WMS Yantra YCS/DCS

Sun Solaris2x8 SFv880

Data Warehouse

Sun SolarisSun v890

dblink

dblink

dblink

dblink

OracleNET 8

Execute ASCP

1. Install APS - 11.5.10 CU2

2. Apply APS patches ATP Patch for J -Rollup Data Collections patches (RUP#24 Patch – 6625126) ASCP Engine/UI Rollup patch #27 - 6444221

3. Create DB link between transaction source (ERP) server and APS(Advanced Planning & Scheduling) server

4. Setup/configure/verify EBS/APS Profiles

5. Setup Collection Instance

6. Setup collection program

7. Run collection to copy supply chain model from source instance to APS server

8. Define an ASCP plan and setup plan options (with no constraints)

9. Launch the plan

Execute Demantra

EBS-Demantra Installation Install OracleAS 10.1.3 Application Server Middle Tier On the Windows Server

1. Install Oracle 10g Client

2. Install Oracle Demantra 7.2

3. Create and Deploy demantra.war file to Oracle AS 10.1.3 Middle -Run Create_war.bat (%DEMANTRA_HOME%\Collaborator\demantra)

4. Run Tamcat WebServer -%DEMANTRA_HOME%\Collaborator\Tomcat\bin\startup.bat

Upgrade EBS/APS 11i (11.5.10.2) applications to J2SE 1.5.0.12 Upgrade EBS/APS 11i (11.5.10.2) applications Dev6i to Patch 18 or

newer Install Latest ASCP Collections and Engine Patches on EBS/APS Install EBS Demantra Integration Patch

EBS Demantra Integration Patch Install on both EBS and APS Applications Instances. Source ------

6625126 Data Collections Patch (Rup#24) 5997112 EBS-Demantra Integration Patch

Destination ----------- 5985614 Oracle Demantra Release 7.1.1 6444221 Engine/UI Rollup Patch (Rup#27) 6625126 Data Collections Patch (Rup#24) 5997112 EBS-Demantra Integration Patch

The Integration Patch installs Demantra (MSD_DEM_XXXXXX) objects into the APS Database / Demand Planning MSD Schema.

Setup Demantra Profiles

Source Side ProfilesProfile Name Value -------------------------------------------------- --------------- MSD: Enabled Organization for Item Collections MSD_ALL_ORG

MSD: Two-Level Planning 2

Destination Side ProfilesProfile Name Value -------------------------------------------------- --------------- MSD_DEM: Currency Code USD

MSD_DEM: Data Profile for Price Lists EBS Price List MSD_DEM: Debug Mode N

MSD_DEM: Host URL

http://dlek40.itg.ti.com:8888/demantraMSD_DEM: Schema DEMANTRA

Execute Demantra

Run Download Calendars concurrent program) The Download Calendars concurrent program downloads

collected manufacturing and fiscal calendars, in Advanced Supply Chain Planning collections, to Oracle Demantra.

Register APS with OID/single sign-on server to enable single sign-on (Follow note Register Demantra applications with OID/single sign-on) -Run ssoreg Enable mod_osso (in httpd.conf file) Protect the required Demantra URLs in mod_osso.conf file Update mod_osso.conf in [ORACLE_HOME]\Apache\

Apache\conf

Restart Demantra Web Server

Execute

Notes on Testing

Test key business processes, flows and scenarios Execute multiple testing rounds and budget enough time for

issue resolution Performed 3 successful test cycles before production cutover

Perform load and volume testing Time the upgrade process to gauge duration required for

cutover

Upgrade Steps

EVALUATE

EXECUTE

PREPARE

MAINTAIN

PLAN

Maintain

Ensure that the Schema stats are up to date Gather Schema stats after every forecast run and essentially

before the forecast is run Forecast versioning : Keep it to the number that is absolutely

necessary Ensure that Sales_data, mdp_matrix are in their own

tablespaces. Monitor for growth as they are prone to performance issues

The Web Server must be restarted for most changes to be available in Oracle Demantra.



Agenda





Summary – a great success, a proven project model

A major hardware platform upgrade and software rollout in a live operational environment

http://www.itsupplies.net/images/sun/workstations/v890-med.gif

http://www.systemsourcetech.com/items/specials_images/sun/v490_g.jpg

So what are these other benefits?

Improved forecasting

and planning accuracy


Reduced out-of-stock occurrences




Forecast new items and/or customers

that have no sales history





Integrated Supply Chain Planning

environment







Integrated Supply Chain Planning

environment






Reduced cycle times

CHALLENGES

Primarily relied on self education and limited functional training Little documentation on Windows components (no sizing, tuning

or best practice for the engine) One of the first PMO managed projects meant new processes

Functional Manugistics expertise was no longer present in Demand

Planning Demand Planning staff home grown Business Analyst new to Demand Planning Consulting budget very limited

Used for business requirements development Process modification deeply extended

Training budget non-existent after economic downturn

TI Confidential 68

CHALLENGES (Technical) 1 Developer attended functional training and was out of country

for significant portion of development cycle Data Warehouse deemed as key role Client introduced java incompatibility challenges (Softgrid had

to be deployed) No eTRM

Outcomes Native integration not used (Mods & DW emphasis) Interface seen as intuitive No training issues with Sales No lost/reduced cycle Transition was perceived as a great success

TI Confidential 69

What worked well…

The new system! User group In general all users accepted the system 1 big team approach Steering board very supportive ‘Expertise’ involved Weekly project meetings Roll-out weekends Project management Post-implementation support Restricting project scope

Pending Phase 1 issues

DW Load Windows Launch of forecast engine Concurrent Request launch of Workflow Large list of unexplored features

Bullets Dodged

Tuning Forecast at customer, not customer site therefore tuning not

as challenging Limited Phase 1

Limited use of manugistics allowed scaled back phase 1 feature set

• Revenue $500+M• Product lines: calculators (graphing, financial & scientific),

classroom learning system, data collection devices & computer software

• Three primary suppliers (Far East)• Distribution Centers in Singapore, Australia, Netherlands,

Fort Worth, TX

Demand Planning• Primary Supplier Schedule for 300 Item/Supplier Finished

Goods combinations• 12+ month forecasting horizon• Forecast at detail level (Item/Customer/Country) for 23K

combinations

Supply Chain Planning• 8 orgs• 1300 items

• Legacy forecast tool -Manugistics version 2.6 • 3 separate modules – equated to long batch processing and forecast load

times • end-of-life system and de-support (HW & SW) • Forecast accuracy < 70%• Forecast engine run time is 8hrs • No system supported sales and operations planning process

WITH ORACLE

• Runs worldwide manufacturing and sales operations using ASCP and Demantra

• Single, global plan for 8 orgs, including worldwide distribution centers and manufacturing plants

• Reduce manual forecasting processes• Using real-time material constrained, multi-org, multi-level ATO order

promising process

Benefits

• Integrated Supply Chain Planning environment• Strongly reduced planning cycle time• Strongly increased forecast accuracy• Enabled sales and operations planning process

Texas Instruments - Education Technology Division (Ed. Tech.)

COMPANY PROFILE BEFORE DEMANTRA

AFTER DEMANTRAPLANNING BENCHMARK

In Summary…

Make Sure You’re Prepared and Test, Test, Test!

Integrated Supply Chain Planning environment

Increased accuracy with advanced forecast tuning

Excellent performance reduces cycle times

Richer functionality in Sales & Demand management

Demantra is the right direction….

Thank YouThank You

Questions?Questions?

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