1. introduction to selling oracle manufacturing operations center the foundation for continuous...

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Introduction to Selling Oracle Manufacturing Operations Center

The Foundation for Continuous Improvement in Manufacturing Operations

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This document is for informational purposes. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development,

release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. This document in any form, software or printed matter, contains proprietary information

that is the exclusive property of Oracle. This document and information contained herein may not be disclosed, copied,

reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement

with Oracle or its subsidiaries or affiliates.

Safe Harbor Statement

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Agenda

Roll-out plan

Target Market : Up-sell Opportunities

Licensing Model

Early Adopter Program

Solution Overview

Positioning

Competition

Q&A

Appendix: Manufacturing Hub Screenshots

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Roll-out Plan

Oracle Manufacturing HubOracle Manufacturing Hub

May - June, ‘08March – April, ‘08 Beyond June

Apps Unplugged

Datasheet

Positioning Presentation

RCD

FAQs

Propduct Capability Sheet

Internal Landing Pad

TOIs

Analyst Reports – AMR, ARC

Product Release

Press Release

Magazine Interviews

Sign up Early Adopters

Early Adopter Press Releases

Documentation

Web Based Field Training (TBD

Partner Training (TBD)

In-person Field Training TBD)

More Partner Training

ADS Instance

More Analyst Reports

www-apps.oracle.com/mth)

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Agenda

Introductions

Roll-out plan


Licensing Model


Solution Overview

Positioning

Competition

Q&A


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Target Market Sell Mfg Hub as both – Edge Solution, also part of EBS

EBSInstall Base

JDEInstall Base

The Mfg Ops Center is a key component of our Future Manufacturing Strategy to lead in Greenfield accounts and cross sell into existing EBS

and JDE install base

Greenfield &SAP

Install Base

Edge SolutionsMOCMOC

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Agenda

Introductions

Roll-out plan


Licensing Model


Solution Overview

Positioning

Competition

Q&A


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Licensing Model

Mfg Ops Center Pricing Objectives• Minimize complexity of pricing model for the field• Create link between Mfg Ops Center and size and complexity of customer’s manufacturing

operations• Allow a low end entry level pricing for ‘Pilot’ projects creating significant up sell opportunities

Maintain consistency with pricing approaches of other related applications• Position MOC as price competitive relative to competitors such as SAP and Activplant

Scope of Pricing Model• Release 1 price includes all Oracle functionality in Release 1 – I.e., Data model, all available

dashboards, reports, EBS Adaptor, etc.• The price does not include technology pre-requisites• Release 1 price does not include partners solutions such as Kepware

New Application Name

Release Date

Price Metric Technology Prerequisites

Oracle Manufacturing Operations Center

May 2008

$1500 Per $ 1M COGS with a min of $50M in COGS

• OWB Paris version • OWB DQ • OBIEE 10.1.3.2 (Maui)

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Agenda

Introductions

Roll-out plan


Licensing Model


Solution Overview

Positioning

Competition

Q&A


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Early Adopter Program SIP (Strategic Implementation Partner)

• Early adopters program on• Up to first 4 customers due to resource limitations

• Timeline• Sign up in Q4• Implement immediately following the product release in May 2008

• Other Details• Customers would implement licensed, released, GA code • Customer would be willing to be referenceable • Oracle Development would be involved all the way through go-live

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Agenda

Introductions

Roll-out plan


Licensing Model


Solution Overview

Positioning

Competition

Q&A


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DisconnectedDisconnected

Supervisory Process Control

Advanced Controls, Process Models, Supervisory Control

Distributed Plant Systems

MES, Shop Floor Control, Maintenance Mgmt., LIMS, Quality

Enterprise Resource Planning Systems

Corporate Planning, Financials, Purchasing, Inventory

Manufacturing Operations Manufacturing Operations CenterCenter

Sensors and Actuators

Switches, Motors, Gauges, Probes, etc.

Shop Floor to Enterprise Bridging The Great Divide

Level 0,1

Level 2

Level 3

Level 4

Based on ISA-95 Hierarchy Model

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Mfg Integration & Intelligence Opportunity

Source: AMR Research, 2003

Production efficiency improvement -- 25%

Cycle time improvement -- 13 to 20%

Increase in asset utilization -- 10%

Annual payback potential -- 10x

Plus…• Eliminate discrepancy between manual data and machine data

• Perform preventive maintenance based on machine “actuals” vs. “best guess”

• Achieve visibility for lean and six-sigma programs

• Progressively eliminate on-hold and other production issues

• Gain competitive edge by sharing quality information with customers

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Mfg Intelligence & Integration : Market Size

The manufacturing operations software application market, currently tremendously underserved, will continue to grow, experiencing a five-year 13% CAGR and surpassing the $8B mark by 2011. - AMR Research

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The Foundation for Continuous Improvement in Manufacturing

Operations

Automation& Process

ControlSystems

ERPSystems

Users

PLC CNCMachines

DCS SCADASystems

AdvancedProcessControl

HumanMachineInterface

- MES- Quality- Cost Mgmt…

ManufacturingOperationsData Model

ManufacturingOperationsData Model

Role-BasedDashboards

Contextual-izationEngine

Corporate BI

Cross-PlantKPIs

HistoricalTrends

Plant-SpecificKPIs

Real-TimeUpdates

Device-Generated Data

Production ActualsSchedules

Item Master Data

ProductionManager

Plant Mgr /VP of Mfg

MES Shop Floor Communication Drivers

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Partner (Kepware) SolutionShop Floor Communication Drivers, OPC Server

DATA SERVICES & CONNECTIVITY

JMS QueueJMS Queue PL/SQL APIsPL/SQL APIs

Oracle Warehouse Builder

Contextualization Rules EngineContextualization Rules Engine

S-95 Data Model

Core Engine and Data ModelCore Engine and Data Model

Set-up UIs

Hub AdminHub Admin

OWB

EBS EBS AdaptorAdaptor

OBIEE (Analytical Data Model

and Dashboards)

Role Based Role Based DashboardsDashboards

MANAGEMENT&

MONITORINGBAM

Real-time Real-time DashboardsDashboards

AdaptorsData Historians

Interface TablesInterface TablesWeb ServicesWeb Services

CEP OAF OWBESB

AIA Stack

JDE JDE AdaptorAdaptor

AIA Stack

Other ERP Other ERP AdaptorsAdaptors

Tag Processing Contextualization Excel Integration

Error Correction

ESB/BPEL

Event Event ProcessingProcessing

AdaptorsThird Part MES

Flexible Hierarchies

Extensible Attributes

Manufacturing Hub –Release 1.0

Complete Partial Future

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Developed with Industry Leaders…Design Partners and Customer Advisory Board Members

DiscreteIndustries

ProcessIndustries

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Single Repository for Mfg Operations DataProvide Consistent Information for All Manufacturing Users

• Generic data model supports hierarchical structure for reporting or building KPIs and metrics

- Leverages ISA-95 standard reference model

- Out-of-the-box hierarchical dimensions: time, product, and equipment

- Flexible and configurable

• Open and extensible to meet the requirements of different industries

- Capture process variables

- Capture additional parameters for Item, Equipment, and Work Orders

Manufacturing

Operations

Data Model

Manufacturing

Operations

Data ModelGra

nula

rity

Enterprise Level- Products- Orders- Plans / Schedules

Plant Level- Work Orders- Batches- Mfg Routing

Equipment Level- Availability- Status- Output- Quality- Parameters

Device Level- I/O Tags- Sensor ID

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Integration with Manufacturing Equipment and Distributed Plant SystemsGather High Resolution Data Directly from Source

PLC CNCMachines

DCS SCADASystems

AdvancedProcessControl

HumanMachineInterface

Mfg OperationsCenter

Error Handling

OPC Servers

MESShop Floor

Communication Drivers

Adapters

OtherConnectors

3rd PartyOPC Client

• Support adapters for 3rd party systems, like data historians

• Build additional adapters using Fusion Middleware

• Tag data mapping

• Data filteringrules engine

Capture and process errors at every stage of data collection

Support broad range of devices

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Partner Solution Component - Kepware

Oracle Manufacturing Operations Center• The Ultimate Repository of Operations Information

KEPServerEX by Kepware Technologies • Plant Floor / Device – Data Collection Software

• First Level of Data Aggregation

• Store and Forward of Transactions Oracle MOC

• Optional Data Persistence through BBR

Kepware provides interfaces to all plant floor devices through existing device drivers or an OPC Client to third party OPC Servers. Kepware provides basic data aggregation – timers, counters and math and logic for machine level analytics. Results are aggregated to transactions which are passed to the Manufacturing Operations Center through a Store and Forward mechanism. Real-time persistence is optional and is provided through Battery Backed RAM (BBR), to preserve calculated or transactional data in the event of a system upset during operation. www.kepware.com .

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Shop Floor Data ContextualizationConvert Raw Data into Useful Business Information

• Define data transformation rules - Rules by tag type- Business-oriented aliases for tags- Additional tag attributes like rollover

values

• Use pre-built rules or create new rules

• Apply context to time series data- Work Order- WO Segment

• Apply out-of-the-box rules ordefine new rules

- Product- Shift

Automation& Process

Control Systems

Transform

Business Events

BuildContext

AnalyzableBusiness

Data

PLC

DCS

SCADA

…

IntelligenceSystems

CorporateBI

HubDashboards

Business ContextData

ERPSystems CRM SCM ERP

High ResolutionTag Data

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Integration with ERPEnable Seamless Information Flow

• Simplify integration to ERP -- rely on Manufacturing Operations Center for data cleansing, error handing, etc.

• Reduce the cost of ERP integration -- eliminate one-to-one integrations

Manufacturing Hub

Oracle EBS Mfgor Other ERP

Leverage…

- Metadata-driven integration toOracle EBS

- Fusion Middleware for SOA-based integration with other ERP

Shop floor transactions

Master data, plans,and schedules

ERP Adaptor

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Contextualize Plant Floor Data and Synchronize with ERP

Provide Real-Time Intelligence for Plant Operations

Enable Next Generation Manufacturing Operations Architecture


Oracle Manufacturing Hub – Key Messages

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Role-Based Dashboards and KPIsDeliver Performance Measures by Responsibility

• Pre-built role-specific dashboards, reports, and alerts

• Graphical views

- Trend charts- Graphs- Tables

• Embedded best-practice calculations and KPIs

• Analytic workflows to drive actions

• Drill-downs into details forroot-cause analysis

• Leverages OBIEE+

• Configurable and customizable

Are we achieving our costand productivity targets?

What is happening now?What happened last shift?

How is the machine performing?

VP of Operations

Plant Manager

Production Manager

Production Supervisor

Operator

QA Engineer

- Red-yellow-greenindicators

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Production Capacity Analysis - OEE Identify Improvement Opportunities

Overall Equipment Effectiveness Summary Analysis of Production Loss Types

Details of Causes for Each Loss Type

- VP of Operations

- Plant Manager

- Production Supervisor

For

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Production Throughput Analysis Track Production and Identify Potential Bottlenecks

• Track against targets for shift, day, week, or month

• Monitor backlogs by individual equipment

Supervisors,Line Managers

Plant Managers,VP of Manufacturing

• View throughput by product, plant, line,and equipment

• Analyze monthly trends to ensure aggregate performance

Click to Click to view alert view alert

detailsdetails

Visual cues Visual cues quickly indicate quickly indicate

production production status status

Determine Determine equipment statusequipment status

Monitor production Monitor production volumes & throughput from volumes & throughput from anywhere in the enterpriseanywhere in the enterprise

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Manufacturing Delivery PerformanceMonitor Compliance within a Demand Driven Environment

Deliver Consistent Manufacturing Service Level Information to Customer Facing Organizations

- VP of Operations

- Plant Manager

- Customer-Facing Orgs

For

Track On-TimeCompletions

• % of orders completed on-time• Average batch cycle time• Actual production to schedule

Track vs. CustomerOrder Ship Dates

• Mfg performance to customer schedule date• Mfg performance to customer promise date• Mfg performance to customer request date

ManufacturingCustomer

Facing TeamsProduction Data Customer Order Info

KPIs & Trends KPIs & Trends

Hub Dashboard

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360º View of Equipment PerformanceMaximize Performance of Your Manufacturing Assets

Understand Key Factors that Impact Production Output and Quality

- Production Supervisor

- Line Manager

- Maintenance Supervisor

For

• Equipment downtime• Mean time to failure• Effective run-time

• Pressure• Temperature• Humidity

• Quantity produced• By hour, shift, week

• Quantity rejected• Quantity scrapped• Defects by reason code

Process Parameters

Availability

Production Quality

Production Output

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Production Process Monitoring Proactively Detect and Avoid Potential WIP Problems

• Define your own unique process parameters

• Generate control charts

• Define control limits and track violations

• Trigger workflows based on violations

- Production Operators

- Quality EngineersFor

Violation

Monitor TriggerWorkflow

Equipment SPC / SQC Charts Work Queue

03/17/2008

03/14/2008

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Extensible Analytical Engine and Dashboarding Tool Build a Decision Support System Unique to Your Environment

• Accelerate deploymentand adoption

• Easily adapt dashboards andmetrics to different types of production environments & roles

• Provides a comprehensive Operational Intelligence framework

Most standard Most standard KPIs availableKPIs availableout-of-the-boxout-of-the-box

Easy to use dashboarding tool Easy to use dashboarding tool enables users to identify, select, enables users to identify, select, modify, and format relevant KPIsmodify, and format relevant KPIs

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Agenda

Introductions

Roll-out plan


Licensing Model


Solution Overview

Positioning

Competition

Q&A


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Oracle ® Manufacturing Operations Center

Contextualize Plant Floor Data and Synchronize with ERP

Provide Real-Time Intelligence for Plant Operations

Enable Next Generation Manufacturing Operations Architecture


Oracle Manufacturing Hub – Key Messages

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What is Next-Generation Manufacturing Operations Architecture?

“It is often more expedient to install an abstraction layer built on a plant-level data store than to reengineer the plethora of existing applications to achieve normalization. We see this approach rapidly emerging as a best practice.” -- Alison Smith, February 2008

• Built on a common abstraction layerof production / equipment data

• Leverage existing investments in plant IT infrastructure – no rip & replace

• Allows for gradual upgrade of plant systems

Next-Generation Architecture

AbstractionLayer

ERP

Distributed Plant Systems

Automation & Control

Mfg Ops CenterMfg Ops Center

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Scenario: Distributed Manufacturing Provide Autonomous Performance Management for Each Plant

• Support 24x7 mfg in a high volume environment

• Employ local hubs to capture high resolution plant floor data

• Real-time operational intelligence via local hubs

• Plus, cross-plant intelligence via global visibility layer

Global Visibility Layer (via OBIEE+)Global Visibility Layer (via OBIEE+)

Plant 1Ops Center

Plant 1Ops Center

Plant 2Ops Center

Plant 2Ops Center

Plant 3Ops Center

Plant 3Ops Center

MES MES MES

Oracle / 3rd Party ERP

Shop Floor Devices / SCADA



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Scenario: Outsourced Manufacturing Achieve Centralized Performance Mgmt Across Plants & Partners

• Emphasis on global coordination over local execution

• Provide visibility in a virtual manufacturing environment

• Support multiple plants in a single, central instance

• Simplify contract manufacturer integration and on-boarding

Legacy ERP Systems

Global Manufacturing Operations Center

Global Manufacturing Operations Center

MES

OutsourcedManufacturer

OutsourcedManufacturer


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Implement Based on Business PrioritiesGenerate Value Regardless of Implementation Scope

Tactical OEEfor Line or Cell

Manage Plant-Wide Performance

Manage Network of Plantsor Fleet of Assets

ScopeLocal Global

Val

ue

Identify opportunities for streamlining operations

Focus on line and machine performance

Provide decision support for executives and supervisors

Move emphasis to service levels and on-time delivery

Build common manufacturing operations architecture

Move from emphasis on local execution to global coordination

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Contextualize Plant Floor Data and

Synchronize with ERP

Contextualize Plant Floor Data and

Synchronize with ERP

Provide Real-Time Intelligence for

Plant Operations

Provide Real-Time Intelligence for

Plant Operations

Leverage Next Generation Manufacturing

Operations Architecture

Leverage Next Generation Manufacturing

Operations Architecture

• Consistent mfg information for all users

• Convert equipment data into useful business info

• Ensure rapid response to manufacturing issues

• Leverage existing plant IT infrastructure

• Enable gradual upgrade of plant systems

• Simplify IT support for your core mfg strategy

• Deliver performance metrics & trends by role

• Easily build dashboards to your unique needs

• Identify performance improvement opportunities

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Agenda

Introductions

Roll-out plan


Licensing Model


Solution Overview

Positioning

Competition

Q&A


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Competition

Category Company• Niche

Players• Activplant

• Informance

• Incuity

• ERP Vendors

• SAP - xMII

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Differentiators Against SAP xMII

• We leverage ISA-95 as a reference model• First solution in the industry leveraging the reference as a data

model

• Complete solution not just a toolkit• SAP xMII is only a toolkit – customers have to build the content• We offer pre-built KPIs and dashboards with flexibility of a toolkit

• Data model, Data model, Data Model• SAP xMII does not have a persistent operational data store

• High cost of deployment• Each xMII deployment starts from scratch• No pre-built content

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Contacts….

AGSS

David [email protected] : Phone: 201.218.3245

Larry [email protected] Phone: 214.636.7758

Linda [email protected] Phone: 949.466.8401

Product Strategy

Amit K. [email protected]: 650 506 3693

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Key Takeaways

• Oracle Manufacturing Operations Center is now released.

• Oracle Manufacturing Operations Center is an edge solution• Distributed architecture, separate install from EBS• Sell into EBS and JDE install base• Potentially sell into SAP install base

• We do have space for early adopters

• Close more manufacturing business in Q4 and Q1,09• Makes us more competitive in greenfield accounts• Great opportunity in install base

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