Enhanced Order Fulfillment using Oracle Global Order Promising

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Enhanced Order Fulfillmentusing Oracle Global
Order Promising

• Navneet GoelDevelopment ManagerOracle
  Corporation

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Traditional Approach
Customers
Suppliers
Multi-step planning processes, high latency,
limited collaboration
Tier 2

• Response 1 Maintain Excess Inventory
• Response 2 Reserve Production Capacity
• Response 3 Expedite Everything!

Tier 1
Distribution Plans
Production Plans
Manufacturing Plans
Marketing Forecast
Sales Forecast
?
Mfg Forecast
t weeks
Supply Planning Process
Demand Planning Process
Supply Chain Built on Inventory
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A Better Way
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Move to a More Competitive Model
Customers
Suppliers
Oracles APS zero latency, real-time
collaboration
Tier 2
Tier 1

• Enable closed loop planning processes across your
  value chain
• Provide total supply chain visibility
• Make better decisions
• React immediately to changes in supply chain

Internet
Portal
Portal
Collaborative Planning Process
Collaborative supply plan
Collaborative demand plan
Automated exceptions
Automated exceptions
Marketing forecast
Single holistic plan
Automated exceptions
Sales forecast
Consensus forecast
Mfg forecast
t hours
Supply Planning Process
Demand Planning Process
Build your Supply Chain on Information not
Inventory
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Agenda

• APS Overview/ Architecture
• Oracles ATP flavors
• Set up
• Profile Options
• Key Concurrent Requests
• Core GOP features
• GOP Computation
• Diagnostics
• QA/ Feedback

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APS Architecture
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Oracles ATP Flavors

• Setup via profile INV Capable to Promise
• ATP based on Collected Data (ODS)
• Single Level ATP
• Supports simple supply chain
• ATP/CTP based on Planning Data (PDS)
• Single Level ATP
• CTP across supply chain using Sourcing/BOM/Routing
  s
• Based on ASCP plan in APS
• Supports complex supply chain model

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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

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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

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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

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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

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Profile Options

• INV Capable To Promise
• INV External ATP
• MRPATP Assignment Set
• MRP Calculate Supply Demand
• MRPInclude Substitute Components
• MSCATP 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

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Concurrent Request/Set

• System Administrator Responsibility
• Gather Schema Statistics
• Create APS Partitions
• OM Responsibility For ODS ATP (no APS)
• ATP Data Collection
• Load ATP Summary Based on Collected Data

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Concurrent Request/Set

• Run from Advanced Supply Chain Planner
  Responsibility
• Planning Data Collection
• Launch ASCP Plan
• Create ATP Partitions (Only during upgrade)
• ATP Post Plan Process
• Refresh Allocation Hierarchy Materialized View
• Analyze Plan Partitions

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Core GOP Features
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Global Availability - Example
Customer1, Site1 Requests Item A
Rank 1
Rank 2
A/Org1 (M1)
A/Org2 (M2)
Sourcing Rule(SR-A)
Assignment Set
Cum ATP
ATP Request Info Request Qty 100, Request Date
Day10, Latest Acceptable Date Day12
ATP Result Qty 100 from M2 on Day12
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Global Availability

• Availability Information across warehouses
• Best option based on
• Availability
• Rank
• Sourcing via Region-based rules
• Computes Delivery LT and Ship/Arrival Date
• Supports calendar for
• Shipping
• Receiving
• Carrier/In-transit

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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
• Supports flexible hierarchical setup via
  assignment set/ sourcing rules
• Profiles
• MRP ATP Assignment Set
• MSC ATP Assignment Set

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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

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Capable to Promise (CTP) - Example
A (Customer 1, Site 1)
A (Org 2)
A (Org 1)
B (Org 2)
B (Org 1)
R2 (Org 2)
R1 (Org 1)
B (Supplier 1)
B (Supplier 2)
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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

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

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Allocated ATP

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

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End-Item Substitution

• Improved demand fulfillment/ inventory
  utilization
• Supports
• 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

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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
  time-phased PF ATP
• Supports Allocated ATP

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Supplier Capacity

• Supplier Capacity may be checked during CTP
• defined in ASL
• Infinite Capacity after last date in ASL
• Sourcing Rule/Assignment Set per ASCP Plan
• Creates Planned Orders for Supplier-Site in ASCP
  Plan
• Planned Orders may be released prior to next plan
  run

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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

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Summary Based ATP

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

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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

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GOP Computation

• Example
• D1 D2 D3 D4
• Supply 10 10 10 10
• Demand 4 18 6 7
• Net Qty 6 (-8) 4 3
• Backward 0 (-2) 4 3
• Forward 0 0 2 3
• Cum Qty 0 0 2 5

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Summary
Pegging Info
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Supply/Demand Details
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ATP Period Info
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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

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Diagnostics Debug/Trace File

• Set user 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-ltngt) or trace/tkprof file
  (from DB trace location)
• Re-set profile to 'None' to avoid any performance
  issues

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Questions/ Feedback

• Navneet.Goel_at_oracle.com

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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)
• ASCP (Advance Supply Chain Plan)
• ODS (Operational Data Store)
• PDS (Planning Data Store)
• LAD (Latest Acceptable Date)
• AATP (Allocated ATP)
• ATF (Aggregate Time Fence)