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TRANSCRIPT
Overview
Problem
Our client, a commercial brand which develops and executes enterprise targeted marketing programs globally, has been growing exponentially over past 3 years, needed to implement and streamline Manufacturing process to better fit Enterprise and Customer needs. Earlier, they used homegrown application stack, which had following challenges:
• Fragmented processes and disparate systems resulting in manual workarounds
• Lack of Integration with financial and Planning systems
• Unable to accurately plan due to missing sales order data in the system
• Home grown legacy systems take longer lead time for adopting new business processes and ramping up new customers
• Lack of Integrated Systems results in manual reconciliations and reporting
In a fast paced manufacturing environment, despite the promise of modern-‐day product planning and evolving manufacturing systems, production-‐oriented businesses face daunting challenges. Factories aren't going away, instead they are modernizing, changing and must evolve. The disciplines and capabilities of Product Lifecycle Management and Manufacturing Execution Systems play substantial roles in that evolution.
At our client, we implemented a standardized business processes vis-‐à-‐vis a fully integrated and scalable manufacturing execution system which can provide industry leader with real-‐time job operation details, jobs cost, quality tracking, COGS and Revenue matching, and improved analytics for effective decision making.
www.yantrainc.com
Case Study Oracle Discrete Manufacturing
The client spent a couple of months looking at possible replacements, including current ERP/CRM before selecting Oracle ERP Discrete Manufacturing Solution for Commercial Business line. Primary reason to implement Oracle Discrete Manufacturing was because it met all major requirements -‐ real-‐time job operation details, jobs cost, quality tracking, COGS and Revenue matching, and improved analytics. Additionally, they already used Oracle Financials and Planning system.
Solution
Why Discrete Manufacturing
Discrete manufacturing is a process in which individual products are built or manufactured in discrete batches on manufacturing floor. These physical products are then directly shipped to business and consumers. A typical characteristic of discrete manufacturing is the frequent switching from one manufactured product to another, which was a key requirement for this implementation. The products are typically manufactured in individually defined batches, the sequence of work centers through production varying for each one of these. Costs are calculated on the basis of orders and individual batches. Discrete manufacturing is also characterized by individual or separate unit production. Units can be produced in low volume with very high complexity or high volumes of low complexity. Low volume/high complexity production results in the need for an extremely flexible manufacturing system that can improve quality and time-‐to-‐market speed while cutting costs. High volume/low complexity production puts high premiums on inventory controls, lead times and reducing or limiting materials costs and waste
High Level Process
Detail Manufacturing Process
Before embarking on Oracle Manufacturing implementation journey, organizations need to make sure following pre-‐requisites are considered to reduce execution risks.
• Product/Bill of Material definition has to be done before you rollout Manufacturing • Validate all attributes Items, BOMs, and Cost so that once we start manufacturing implementation
we don’t need to revisit these over and over • If you have multiple brands and production facilities, consider going live with either one brand or
one production facility at a time • Apply learning from the first and replicate it to other brands or locations • Budget enough support hours; these projects are intensive and will need 6-‐9 months of post go-‐live
support
Things to Consider
A few months down the line, users noticed several big improvements with Oracle Discrete Manufacturing – not least the time it saves on certain tasks. Such as: • Real-‐time Operation Step for each Work Orders • Work Order Cost analysis and breakdown • Configurable work list driven execution system to perform work orders in desired priority to
improve production efficiencies • Ability to recognize and match Revenue and COGS at finished good level • Lower shipment cost leveraging consolidated routing and shipping • Summary and detail Reporting and Analytics
On a day to day basis, Oracle Discrete Manufacturing gives us a better understanding of what is going on in and outside the walls of our warehouse. But in the long term, it has provided the e-‐commerce business leader with a platform to roll out across their sites over time – so that they can integrate Manufacturing, Supply Chain and Financials. And that’s its real value.
Benefits
About Yantra
www.yantrainc.com
Yantra is a leading provider of business consulting; information technology, and business process out-‐ sourcing services, dedicated to helping companies build stronger businesses. Headquartered in Fremont, CA (U.S.), Yantra helps organizations assess how to maximize their performance and works with them to achieve their vision. Yantra draws on the extensive experience of its management consultants across industries, we help clients identify and deliver value with pace, certainty and strategic agility.
Leveraging technology platforms from established innovators such as Oracle, NetSuite, and SalesForce.com, Yantra delivers end-‐to-‐end solutions to its clients. Whether on-‐premise, Cloud, or Mobile, Yantra makes technology work for companies seeking to streamline business processes, extend currently deployed solutions, or implement new solutions. Utilizing technology as an enabler of growth and efficiency, Yantra helps its partners scale and grow their businesses.