Order Fulfillment Using Gop 6q2v2p

Enhanced Order Fulfillment using Oracle Global Order Promising Navneet Goel Development Manager Oracle Corporation

Traditional Approach Customers

Suppliers Tier 2

Multi-step planning processes, high latency, limited collaboration

• Response 1:

Tier 1

Maintain Excess Inventory

• Response 2: Distribution Plans

Marketing Forecast

Production Manufacturing Plans Plans

Reserve Production Capacity

• Response 3: Expedite Everything!

Sales Forecast

Mfg Forecast Demand Planning Process

? t = weeks Supply Planning Process

Supply Chain Built on Inventory

A Better Way

Move to a More Competitive Model Customers

Suppliers

Oracle’s APS: zero latency, real-time collaboration

Tier 2

Tier 1 Internet

Portal

Portal Collaborative Planning Process

Collaborative demand plan

Collaborative supply plan Automated exceptions

Automated exceptions

Marketing forecast

Single holistic plan

Automated exceptions

Sales forecast Mfg forecast

• Enable closed loop planning processes across your value chain

• Provide total supply chain visibility

• Make better decisions Consensus forecast

Demand Planning Process

t = hours Supply Planning Process

• React immediately to changes in supply chain

Build your Supply Chain on Information not Inventory

Agenda • APS Overview/ Architecture • Oracle’s ATP flavors • Set up – Profile Options – Key Concurrent Requests

• • • •

Core GOP features GOP Computation Diagnostics Q&A/

APS Architecture Internal s

Trading partners

Portals Internet

Oracle ERP Oracle ERP 10.7 Oracle ERP 11.0

Order Promising Engine

Oracle ERP 11i

Analytical Workspaces A P I S

XML EDI Flat file

Legacy Systems

KPIs

Workflows

Advanced Planning

Plans

Oracle’s ATP Flavors • Setup via profile “INV: Capable to Promise” – ATP based on Collected Data (ODS) • Single Level ATP • s simple supply chain

– ATP/CTP based on Planning Data (PDS) • • • •

Single Level ATP CTP across supply chain using Sourcing/BOM/Routings Based on AS plan in APS s complex supply chain model

Collection Based ATP (ODS) • Single Level ATP in requested org/ Global ATP • Need to run “Data Collection” – Complete – Net Change

• ATP Rule determines: – Supply/Demand to be included – Infinite Supply Fence

• May use a Supply Schedule, e.g., MPS

Planning Based ATP (PDS) • Promise orders based on: – – – – – –

Material availability Manufacturing capacity Supplier capacity End-Item/Component Substitution Product Family Infinite Supply Time Fence

• Manage commitments to key customers – Re-schedule and re-sequence your backlog

Planning Based ATP (PDS) • Global statement of availability – All facilities, material, resources, and suppliers – Region-Based Sourcing – Summary Based ATP

• Allocate available supply – By channel, customer, or product – Priority and stealing rules – Time phased

GOP Setup • • • •

Profile Options ATP Flag Setup Sourcing/ BOM/ Routings ATP Rule – Time Fence – supply/demand sources (ODS)

• Plan Options • Request Date Type • Ship/Arrival Sets

Profile Options  INV: Capable To Promise  INV: External ATP  MRP:ATP Assignment Set  MRP: Calculate Supply Demand  MRP:Include Substitute Components  MSC:ATP Assignment Set  MSC: ATP Debug Mode

 MSC: Enable Allocated ATP  MSC: Class Hierarchy  MSC: ATP Allocation Method  MSC: Enable ATP Workflow  MSC: Enable ATP Summary Mode  MSC: Plan co-products

Concurrent Request/Set • System Responsibility – Gather Schema Statistics – Create APS Partitions

• OM Responsibility – For ODS ATP (no APS) – ATP Data Collection – Load ATP Summary Based on Collected Data

Concurrent Request/Set • Run from Advanced Supply Chain Planner Responsibility – – – – – –

Planning Data Collection Launch AS Plan Create ATP Partitions (Only during upgrade) ATP Post Plan Process Refresh Allocation Hierarchy Materialized View Analyze Plan Partitions

Core GOP Features

Global Availability - Example Customer1, Site1 Requests Item A Rank 1

Rank 2

A/Org1 (M1)

A/Org2 (M2) Sourcing Rule(SR-A)

Assignment Set Type Item

Item A

SR SR-A

Type Org/Sup Percent Rank Transfer M1 100% Transfer M2 90%

1 2

Cum ATP Org M1 M2

Day10

Day11 80 90

Day12 85 95

Day13 90 100 100 110

ATP Request Info: Request Qty 100, Request Date Day10, Latest Acceptable Date Day12

ATP Result: Qty 100 from M2 on Day12

Global Availability • Availability Information across warehouses • Best option based on – Availability – Rank

• Sourcing via Region-based rules • Computes Delivery LT and Ship/Arrival Date • s calendar for – Shipping – Receiving – Carrier/In-transit

Region Level Sourcing • Multiple levels of Geographical Hierarchy • Region based Inter-Location Transit times/ ship methods for customer-site and shipping warehouse • Enable sourcing/ lead time calculation for new customers • s flexible hierarchical setup via assignment set/ sourcing rules • Profiles – MRP: ATP Assignment Set – MSC: ATP Assignment Set

GOP with No Downtime (24X7 ATP) • Zero downtime – No downtime when underlying supply chain plan is refreshed – No SO is lost, automatically re-promise SO against new plan

• Open, reliable, and scalable – – – –

Engine runs inside the database, No memory models to load! Multi-threaded Integrated with OM, Quoting, iStore, etc. Easy integration with legacy systems

Capable to Promise (CTP) - Example A (Customer 1, Site 1) 1 day lead-time

5 day lead-time

A (Org 1)

B (Org 1)

R1 (Org 1)

5 day lead-time

B (Supplier 1)

A (Org 2)

B (Org 2)

R2 (Org 2)

4 day lead-time

B (Supplier 2)

Capable to Promise (CTP) • Increased order fill rate using extra manufacturing and supplier capacity • CTP finds availability using make/buy/transfer info by request date (Backward Scheduling) • Forward Scheduling involves look ahead CTP, determines when orders for items can be fulfilled • Recursive check against BOM

Allocated ATP • Group/ Prioritize Customers per business need thru – Demand Class – Customer Class Hierarchy

• Material may be allocated to these groupings using – Pre-defined allocation rules – Forecast quantities as honored by AS Plan

• Stealing of supplies from lower priorities prior to CTP • Ensure target supply to key customers

Allocated ATP • Manage commitments to key customers • Allocate availability to more profitable channels

End-Item Substitution • Improved demand fulfillment/ inventory utilization • s – Single or Bi-directional Substitution, chaining – Time phased Substitution, substitution window – Rule Based/ Customer Specific substitution

• • • •

Availability of Requested vs. Substitute Item CTP for Requested vs. Substitute item Exception/ Workflow Notification for Item Substitution Stealing prior to Substitution with Allocated ATP

Product Family ATP • 2 Flavors – based on ATPable PF Item Only (Pre-11.5.10) – using member item within Aggregate Time Fence and PF item outside Aggregate Time Fence (11.5.10)

• Plan must contain PF Item as well • Forecasting may be done either for PF or member item • CTP will be done on member item, if needed, for timephased PF ATP • s Allocated ATP

Supplier Capacity • Supplier Capacity may be checked during CTP – defined in ASL – Infinite Capacity after last date in ASL

• Sourcing Rule/Assignment Set per AS Plan • Creates Planned Orders for Supplier-Site in AS Plan • Planned Orders may be released prior to next plan run

Resource Batching • Batch process: Same work on multiple items for a pre-set amount of time by same resource simultaneously, like heat treatment, sand blasting, etc. • Resources are constrained by product of time and weight or volume, i.e., capacity multiplied by time. • Only for constrained plans with routings • Setup: – Enable batchable flag, Capacity UOM in ERP – Profile: “MSO: Global Batchable Flag” in APS

Summary Based ATP • • • •

s enhanced performance with accuracy Profile: “MSC: Enable ATP Summary Mode” Post-plan process generates summarized data Run Concurrent program periodically for incremental summary

GOP Computation  Netting –

Net Supply-Demand for a given day/time period

 Backward Consumption –

Use surplus from past to cover existing shortage

 Forward Consumption –

Use future surplus to cover existing shortage

 Accumulation –

Carry over the availability

 Stealing (for AATP) –

Steal supplies from lower priority tiers for new demands

GOP Computation  Example Supply Demand Net Qty Backward Forward Cum Qty

D1 10 4 6 0 0 0

D2 10 18 (-8) (-2) 0 0

D3 10 6 4 4 2 2

D4 10 7 3 3 3 5

Summary

Pegging Info

31

Supply/Demand Details

32

ATP Period Info

33

Diagnostics – Setup • • • • • • •

Input Data Profile Options Item Attributes Regions/Zones Sourcing setup Lead Times Infinite Time Fence

• ATPable Plan Info • BOM/ Routings • Allocation Method/ Rule/ Percentage/ Priority • Resource Batching • End Item Substitutes • Component Substitutes

Diagnostics – Debug/Trace File • Set profile (MSC: ATP Debug Mode) before invoking ATP/ Scheduling as: – Functional issues: “Debug Only” – Performance: “DB Trace Only” or “Debug & DB Trace”

• Provide debug (session- ) or trace/tkprof file (from DB trace location) • Re-set profile to 'None' to avoid any performance issues

Questions/

[email protected]

Reference - Acronyms • Industry Standard – ATP (Available To Promise) – GOP (Global Order Promising) – CTP (Capable To Promise) – PTO (Pick to Order) – CTO (Configure To Order) – ATO (Assemble To Order) – CTD (Capable To Deliver) – BOM (Bill of Materials) – BOR (Bill of Resources)

• Oracle Specific – APS (Adv. Planning & Scheduling) – AS (Advance Supply Chain Plan) – ODS (Operational Data Store) – PDS (Planning Data Store) – LAD (Latest Acceptable Date) – AATP (Allocated ATP) – ATF (Aggregate Time Fence)