<Insert Picture Here>
R12 Update For Israel Process SIG MeetingKaren Theel - Senior Strategy Director, Manufacturing
© 2011 Oracle Corporation – Proprietary and Confidential
“Manufacturers have been plagued with islands of systems
and processes that are isolated within sites or departments. Such silos don’t allow for easy collaboration across the manufacturing value chain—internal departments like sales, operations, and marketing, as well as partners and customers—as
manufacturers strive to make quality products correct the first time and on demand in today’s highly competitive marketplace.” -- Demand Driven Mfg (C. Masson, A. Smith, S. Jacobson) Jan
‘07
Multiple Plants w/ Different Systems
Factory
Automation
Homegrown /
3rd Party MES
Quality
/ SPC
Maintenance
/ Service
Multiple Contract Mfgrs
Corporate
Customer
Relationship Mgmt
Supply ChainManagement
Business
Intelligence
Enterprise
Resource Planning
DisconnectedDisconnected
“Manufacturers have been plagued with islands of systems
and processes that are isolated within sites or departments. Such silos don’t allow for easy collaboration across the manufacturing value chain—internal departments like sales, operations, and marketing, as well as partners and customers—as manufacturers strive to make quality products correct the first time and on demand in today’s highly competitive marketplace.”
Today’s Operations RealityLack of Visibility, Flexibility, and Insight with Disparate Systems
© 2011 Oracle Corporation – Proprietary and Confidential
What are Mfg companies investing in?….
© 2011 Oracle Corporation – Proprietary and Confidential
Manufacturing Applications Continued Investment
EBS 12 EBS 12.1 EBS “Post 12.1.3”
•• Rapid ReturnRapid Return
•• Standardize & SimplifyStandardize & Simplify
ThemesThemes
•• Think GloballyThink Globally
•• Work GloballyWork Globally
•• Manage Systems GloballyManage Systems Globally
Global Business ReleaseGlobal Business Release
�F o u n d a t i o n f o r t h e f u t u r e
•• Ongoing InnovationOngoing Innovation
•• Lifetime SupportLifetime Support
Key MessagesKey Messages
2006 2007 2009
Preview Today
2010 2011
EBS 12.2
ThemesThemes
•• Improved TechnologyImproved Technology
CurrentCurrent FutureFuture
© 2011 Oracle Corporation – Proprietary and Confidential
New in 11i.10Base Differentiators…New in R12…
• Collaborative, rules-based recipe development
• Ingredient and process variability management
• Multiple cost methods
• Real-time WIP visibility
• Lot traceability
• Co-products & by-products
• Shelf-life and status control
• Potency / grades
• Integrated process quality workbench
• Manufacturing scheduler with process production
• Electronic signatures and records for 21 CFR part 11
• HACCP quality test points
• Graphical recipe designer
• Lot specific costing
• Computer-aided formulation
• Electronic records and signatures document control
• Enhanced customer quality specification matching
• Mass quality control result entry
• Enhanced co-product planning (via advanced planning integration)
• Environmental testing
• Multiple drum receipt with automatic lot numbering
Evolution of Oracle Process Manufacturing
• Common inventory system with process attributes
- Pricing on secondary UOM
- Item revisions
- Move orders
- High level reservations
• Common item master
• Least cost formulation
• MES for Process Manufacturing
- Operator-centric workbench
- Dispensing / pre-mix
- Device integration
- Electronic MBR / CBR
- Non-conformance tracking
• One-step electronic signature
• Planning complex routings
• Manufacturing Operation Center
© 2011 Oracle Corporation – Proprietary and Confidential
Order Management Procurement ASCP
OPM Recipe / Quality
OPM
Costing
OPM
Production
BOM /
QualityCostingWIP
OPM
Inventory
Discrete
Inventory
Single Source of Truth for Inventory Availability Advanced Inventory Management
Order Management Procurement ASCP
OPM Recipe / Quality
OPM
Costing
OPM
Production
Oracle Inventory
BOM /
QualityCostingWIP
• Single Inventory Model
• Process features
include:
• Tracking in two units
of measure
• Grade
• Expiration/ Maturation
Dates
• Material Status
• Enhanced inventory
allocation rules
• Indivisible lots
• Support for “child lots”(replace “sublots” in OPM)
© 2011 Oracle Corporation – Proprietary and Confidential
Model Actual Scenario of Shop FloorImprove inventory visibility at each stage of the Supply Chain
• Reservation supply
to assure inventory
meets customer
needs
• High level
• Detail Level
• Model plant areas
so that stock is
readily available
• Dispensing Locations
• Staging Locations
ProductionOperator
Materials ManagerProductionSupervisor
DispensingOperator
Review andApprove Schedule
Schedule FPO / Batch& Reserve Materials
Dispense Ingredients with
Detailed Reservations
Move IngredientsTo Staging Location
ReverseDispense Ingredients
Complete & Close Batch
Log Nonconformances
Review ControlBatch Record
Consensus forecast and
production plan
Lock Operation, Follow PI,
Execute Tasks
© 2011 Oracle Corporation – Proprietary and Confidential
Summary of Functionality Gains for Process Users
• Central item master
• Organization specific attributes
• Leverage Product Data Hub
• Vendor-Managed and Consigned Inventory
• Warehouse Management Additional License
• Mobile Supply Chain Applications Additional License
• Flexible account mapping with Subledger Architecture
• Additional Lot Management Transactions via MSCA
• Lot Merge
• Lot Split
• Lot Translate
• Flexible Attribute Definition
• Attribute Inheritance
• Reservations and Move Orders for Production Batches
• Unconstrained ASCP replace MRP
© 2011 Oracle Corporation – Proprietary and Confidential
Container and LPN* Support
• Supports infinite nesting levels
• Perform complex moves via a single scan
• Fully integrated with ASNs
Improves Efficiency,Accuracy, and Tracking
Barcode Support
• Record transactions at the point of use via RF Devices
• Eliminate data entry errors by scanning instead of typing
Reduces Cycle Time & Improves Accuracy
Single Unique Numberfor All Information
Multiple Packages and Products
=
*License Plate Number
RF, Barcode and License Plate SupportPerform Complex Inventory Transactions
© 2011 Oracle Corporation – Proprietary and Confidential 10
LPN Support in OPM Desktop Forms Streamline operator actions through online support of container
management
• Available with WMS
• Added for:
• Item Reservations for
Process organizations
• Select Available Inventory
• Batch Material
Transactions form
• Item Samples
• Sample Group related
forms
• Delayed LPN Entry added
for
• Quality Samples
© 2011 Oracle Corporation – Proprietary and Confidential
11
ATP
Check
GOPDay 1 Day 2
• Multiple facilities
• Which plant makes what products and when
• Pre-builds based on capacity shortages
• Alternate facilities, suppliers and processes
Day 3
Production Schedule Org 1
8am 12pm
• Schedule a single facility
• Sequence Production to meet demands on this facility
• Account for detailed production constraints and come up with an executable schedule
4pm
PS – Production Schedule Org 2
PS – Production Schedule Org 3
Constrained dependent demands
independent demands
planned orders
ASCP – Production Plan PS – Production Schedules
Production Plan Org 1, 2, and 3
Execution work orders
Process batches, and
Lots scheduled detailed
activities
Integrated Manufacturing Planning & SchedulingUnconstrained* Planning Replaced MRP
*Constrained planning require additional license
© 2011 Oracle Corporation – Proprietary and Confidential
Plant to Enterprise StrategyMultiple options for increased shop floor visibility
ERP + Integrated MES
Detailed Instructions & SOPs, Nonconformance Mgmt., Electronic MBR and CBR, Mobile, Labeling,
Device Integration
Oracle ERP
Integrated Oracle MES
Devices
Electronic records, process-centric, low-med shop floor
automation, standardization and data visibility across plants
Integration
ERP + Integration other MES + MOC
ISA 95 based Manufacturing Hub with Devices Integration
Oracle ERP
Legacy MES
Devices
Electronic records, decentralized plants, highly automated, accept costs of maintenance of interfaces
Manufacturing Hub / Analytics
Integration
Existing Manufacturing Suite
Oracle ERP
Paper batch records, material-centric, minimal automation and manual
data entry
© 2011 Oracle Corporation – Proprietary and ConfidentialThe above reflects Oracle’s current development plans which are subject to change at any time
Oracle Manufacturing Operation CenterReal-time Performance Visibility
New Features in R12.1.2:
•EBS R12.0.6 Adapters
•Event Management Framework
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
© 2011 Oracle Corporation – Proprietary and ConfidentialThe above reflects Oracle’s current development plans which are subject to change at any time
- Red-yellow-greenindicators
• 55+ KPIs, 90+ measures, reports and alerts out of the box
• Pre-built role-specific dashboards
• CO2 emissions tracking with Sustainability Sensor Data Management (SSDM) – 12.1.3
• 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
Role-Based Dashboards Deliver Performance Measures by Responsibility
© 2011 Oracle Corporation – Proprietary and Confidential
System Automation & Control
� Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management
� Reduced TCO / Complexity via Integrated Mfg Mgmt & Production Execution
MESMES
ERPERP
Corp Mgmt
Shop Floor Control
Production MgmtProduction Mgmt
Process Engineer
• Manage recipes & advanced process instructions
Production Supervisor
• Create & manage batch status
• Log non-conformances
Dispensing / Prod Operator
• Touch Screen User Interface
• Pre-weigh designated ingredients
• Process batch operations
Operator
• Work from dispatch list
• Record transactions, qualityinfo, work completion, and time
• View work instructions andcomponent info
• Report production exceptions
Supervisor
• Review & resolve exceptions
• Monitor shop floor progress
MES for Discrete MfgMES for Discrete Mfg MES for Process MfgMES for Process Mfg
Optimize Manufacturing OperationsOracle Manufacturing Execution Systems (MES) for Discrete & Process Mfg
© 2011 Oracle Corporation – Proprietary and Confidential
Process MES Operations
• Process Engineer/ Formulator
• Manages recipes and advanced process instructions
• Production Supervisor
• Creates and manages batch status
• Logs nonconformances
• Dispensing
• Pre-weighs designated ingredients
• Production Operator
• Processes batch operations
ProductionOperator
ProcessEngineer
ProductionSupervisor
DispensingOperator
Create Recipe
Add New Enhanced Process Instructions
Create/UpdateValidity Rule& Review
Master Batch Record
Schedule Batch& Reserve Materials
Dispense Ingredients
Lock Operation, Follow PI,
Execute Tasks
ReverseDispense Ingredients
Complete & Close Batch
Log Nonconformances
Review ControlBatch Record
© 2011 Oracle Corporation – Proprietary and Confidential
Facilitate Compliance with Operator WorkbenchTouch Screen enabled
Operator is stepped through instructions and tasks
Direct link to SOPs
Configurable acknowledgement: -Optional
-Required Acknowledgement
-E-Signature(s)
One Click Access to Transactional Forms: -
© 2011 Oracle Corporation – Proprietary and Confidential
Read Values Read Values Direct from Direct from
DevicesDevices
Generate Generate
LabelsLabels
Multiple methods Multiple methods
supportedsupported
Dispensing / Pre-WeighImprove Accuracy & Compliance While Reducing Risk
• Improve accuracy by
removing human interaction
• Enforce compliance
- Configurable level of control on process instructions
enforce best practices and
regulatory compliance
• Reduce complexity & risk
- Simplified task- based operator interface
- Consolidate systems
© 2011 Oracle Corporation – Proprietary and Confidential
Nonconformance ManagementCapture and Record Deviations
• Access directly from batch
• Capture and document nonconformances / deviations
• Configurable criticality
- Informational
- Resolution required prior to completing batch or step
- Configurable e-signatures
• Included in control batch record
- Critical nonconformances must be reviewed and signed prior to close of the batch
- Leverages Oracle Quality
“Any deviation from the written pro-cedures
shall be recorded and justified.” --
21 CFR Part 211.100, Written procedures
for deviations
© 2011 Oracle Corporation – Proprietary and Confidential
Group Multiple Batches for Mass ActionsIncreased productivity for batch flow transactions
• Grouping multiple
batches for a user
selected criteria
• Simple and user friendly
window to perform
select action on a group
of batches
• Mass transact batches
for all Batch actions
• Release, Complete,
Close, Un-Release,
Re-Open, Revert to
WIP, Auto Detail
Check off Check off batchesbatches
Select Select ActionAction
Execute Execute ChangeChange
© 2011 Oracle Corporation – Proprietary and Confidential
Gain Visibility into Real CostsLanded Cost and Cost Management Visibility
Kansas City US Port
Vessel CarrierHK PortShipment to HK
Customer
$100 $2 $3 $20 $3 $2 $140
China Manufacturing
Buyer
An additional 40% is added on to the purchase price
$5Duties
$5Broker Fees
Total Landed Cost
Issue PO
Capture extended supply chain costs (freight, insurance, duties, taxes, etc.) and attributes them back to the products which incurred them
• Costs can be estimated during PO creation and receiving
• Actual costs calculated when invoices arrive to identify variances
• Receiving estimates and any variances automatically update inventory valuation and accounting
© 2011 Oracle Corporation – Proprietary and Confidential
• Robust cost reporting capability with drill-down to costing data from
summary to cost component and item level details with multiple views
• Granular view of the costs, enables management to control costs and
measure efficiencies
Costed Indented Bill of Materials ReportProvides sound basis for performance management, control by
exception reporting and establishing product margins
© 2011 Oracle Corporation – Proprietary and Confidential
SEESEE ITIT TRY ITTRY IT KNOW ITKNOW IT DO ITDO ITUser User
ModesModes
Financials• Payables
• Receivables
• General Ledger
• Assets
• Internet Expenses
• Advanced Global Intercompany
System
• E-Business Tax
• Subledger Accounting
• Bank Account Setup/Maintenance
Procurement• Purchasing
• iSupplier Portal
• iProcurement
Distribution • Inventory
• Order Mgmt
• Shipping Execution
Projects• Project Costing
• Project Mgmt
• Project Resource
Mgmt
Applications Technology• Applications Mgmt
• Forms Personalization
Manufacturing• Discrete Bill of Materials
• Shop Floor Management
• Work In Process
• Discrete MES
• Discrete Quality Mgmt
• OPM Product Development
• OPM Process Execution
• OPM MES
• OPM Cost Management
• OPM Regulatory Mgmt
1,575 Pre1,575 Pre--delivered Topicsdelivered Topics
Self-Running Demo Interactive Simulation Testing for Competence Context-Sensitive Help
Drive Greater End User ProductivityPre-Built End-User Documentation
© 2011 Oracle Corporation – Proprietary and Confidential
Drive Greater End User ProductivityBetter Document Publishing
Oracle Business Intelligence Publisher for Oracle E-Business Suite
24
© 2011 Oracle Corporation – Proprietary and Confidential
Future Proposed Projects
• Technology Enhancements:
• On-line patching
• OA Framework enhancements
• OSP / Contract Mfg
• PLM Integration –
• PLM for Process for Food and Bev
• Analytics
• Continued investment in MOC
• Manufacturing BI
• Quality BI
• Mobile Transactions for Quality
• OPM device integration to non-TCP/IP devices
© 2011 Oracle Corporation – Proprietary and Confidential
OPM R12 Customer update
Live OPM – 68
New Installs – 60
Upgrades – 8
• 4 migration
• 4 re-implement
Current R12 Implementations:
• New R12 in progress - 12
• Upgrading - 20
Last updated 1/20/2011
© 2011 Oracle Corporation – Proprietary and Confidential
OPM Customer Migrations/Re-implementations
• Migration
• Not making major changes
• Currently 3 have migrated using OPM scripts
• For 2010 – 9 are currently in the process of upgrading
• Re-implementation reasons
• Changing formula structure, add recipes
• Lessons learned from initial set ups in GEMMS
• Bringing up foreign operation
• Changing chart of accounts (advised by consulting firm)
• Simplify item structure
• Current hardware wouldn’t support production & running
upgrade scripts
© 2011 Oracle Corporation – Proprietary and Confidential
Oracle Migration Team
• Proposed Calls
• Oracle Development group
• Support group
• Strategy Product Management
• Customer
• Before you begin the Migration Process
• Arrange for your call
• Contact
914-524-1606
© 2011 Oracle Corporation – Proprietary and Confidential
OPM 11.5.10 to 12.1 Migration DocumentsMetalink note 376683.1
These documents are available to help customers understand the migration process and to help guide them through the process.
• OPM Migration Overview and Business Needs GuideThis document contains an overview of the OPM Migration process and the business needs that are met by this process.
• OPM Migration Best PracticesThis document contains helpful tips to help ensure that the migration process proceeds as smoothly and as efficiently as possible.
• OPM Migration Reference GuideThis document provides information on how the 11.5.10 Oracle Process Manufacturing data is mapped to the converged R12.1 Oracle Inventory model, and the User Interface and options available for the mapping of that data.
• OPM Migration ChecklistThis document lists all steps and patches needed to migrate data from Oracle Process Manufacturing Release 11.5.10 to 12.1. in the order in which they must be applied.
• OPM Migration Messages and Technical ReferenceThis document lists the messages that can be logged during the running of the data migration and the actions required based upon those messages. The names of the individual migration scripts and Data Mapping tables are also available in this document.
The Checklist and Best Practices documents are live documents and will be updated as needed.
© 2011 Oracle Corporation – Proprietary and Confidential
R-12.1 Check List 1.Preparation
Review the Oracle Process Manufacturing (OPM) Migration Reference Guide – Release 11i to
12.1
Review the Best Practices Guide for OPM Migration from 11i to R12.0/12.1
Please see Metalink note# 376683.1 for OPM Migration related documents.
NotesNotesNotesNotesDate Date Date Date CompletedCompletedCompletedCompleted
Action OwnerAction OwnerAction OwnerAction OwnerActionActionActionAction
2.Pre-Migration
5750051Above patch fixes data corruption issues with Items that would affect migrating OPM entities.
ALL Customers
Install the latest Datafix patches.
NotesNotesNotesNotesDate Date Date Date CompletedCompletedCompletedCompleted
Action Action Action Action OwnerOwnerOwnerOwner
Applicable Applicable Applicable Applicable Patch and Patch and Patch and Patch and CommentsCommentsCommentsComments
ApplicabilityApplicabilityApplicabilityApplicabilityActionActionActionAction
© 2011 Oracle Corporation – Proprietary and Confidential
Go-Live USANA
Company Overview• USANA Health Sciences, Inc. develops and manufactures high-quality
nutritionals, personal care, energy, and weight management products that are sold directly to preferred customers and associates in nearly 15 countries worldwide.
• Employs over 900 people worldwide, including approximately 630 people at the corporate offices in Utah
Challenges • Support continuous improvement in operational efficiency across the
health sciences company’s business
• Unify discrete and process manufacturing inventories to enable complete visibility of inventory enterprise-wide
• Facilitate voluntary compliance with U.S. Food and Drug Administration (FDA) and Australia Therapeutic Goods Administration (TGA) guidelines on nutritional supplements
ORACLE PRODUCTS
– Inventory Management
– Advanced Supply Chain
Planning
– Mobile Supply Chain
Applications
– Discrete Manufacturing
– Process Manufacturing
– Manufacturing Execution
System
– Enterprise Asset
Management (eAM)
– Quality
– Production Scheduling *
– Advanced Pricing
Under NDA
© 2011 Oracle Corporation – Proprietary and Confidential
Usana Migration ExperienceGo Live Date: November 2009
Migration from 11.5.10 to 12.1.1
Total DB Downtime: Actual DB downtime was under 48 hours
Overall Impression: Happy with the overall process and the time that it took to be completed. Found migration documents to be very helpful – especially the Migration Checklist.
Volume Of Data• 13 companies/Sets of books
• 42 Warehouses (mapped to subinventories)
• 12,000 Items
• 114 Open Batches
Timings• SLA configuration took approximately 4 hours.
• In-line migration patch took roughly 15 hours for English and over 40 hours for 5 other languages
• OPM Data Transformation took about 30 minutes
• OPM Financials Data Transformation took just under 12 hours
© 2011 Oracle Corporation – Proprietary and Confidential
Cabot Migration ExperienceGo Live Date: November 2010
Migration from 11.5.10 to 12.1.1
Total DB Downtime: Pending
Bugs During Process:
8 Total
• 5 NAB – Did not follow checklist, setup issues
• 1 Fix – Migrating Forecasts
• 1 ER – Scripts to Check for ISOs and Internal Transfers
• 1 Doc bug
Volume Of Data• 5 Companies/Sets of Books
• 20 Organizations
• 22 Warehouses (mapped to subinventories)
© 2011 Oracle Corporation – Proprietary and Confidential
Complete ChoiceChoose Your Next Steps