jda innovation forum discrete manufacturing excellence · pdf filejda innovation forum...

JDA Innovation ForumDiscrete Manufacturing Excellence

Pari Annamalai, VP Presales and Industries

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL

Discrete Footprint Overview

S&OP Process Deep Dive

S&OP Case Study

JDA’s Innovation Process

Q & A


Our Discrete Manufacturing

Solutions

Integrated Business Planning (S&OP)

Supplier Management

Data and Workflow Management

One Synchronized View

Collaboration, Visibility, and Exception Monitoring

DemandSupplyLogistics Customer Collaboration

Demand Planning

AATP/CTP Order Promising

Forecast Netting and Allocation Management

Demand Classification

Sense & Respond Forecasting

Network and Inventory Optimization

Master Planning

Production Planning and Scheduling

Logistics Sourcing and Procurement

Transportation Planning and Management

Fleet Management

Shipment Execution

Transportation Modeling

Web Commerce

Pricing and Promotion Management

Category Management

Fulfillment (DRP, VMI, CPFR, CPM)

Shelf-Connected Collaboration

Sourcing Management

Supplier / ODM Collaboration


Discrete Manufacturing Solution Capabilities, Differentiators, and Customers

Customer Collaboration

Web Commerce

Pricing and Promotion

Management

Category Management

Fulfillment (DRP, VMI, CPFR,

CPM)


Key JDA Differentiators for Discrete Manufacturing• Only solution that enables demand sensing, demand shaping and responsive

fulfilment from supplier through the store shelf• Only solution that provides flexibility and scalability to meet your needs • Only proven solution deployed globally for web, enterprise, retail channels

Key Discrete Manufacturing Customers

Key Capabilities for Discrete Manufacturing• Collaborate from ideation, through order fulfilment • Enable CPFR, VMI, customer programs• Target, market, sell and fulfil across retail, distribution, web, dealer, enterprise • Manage pricing through the product lifecycle and optimize trade promotions• Understand customer buying behaviour through POS and drive product

assortment, promotions, replenishment and fulfilment


Key JDA Differentiators for Discrete Manufacturing• Multi-dimensional forecasting with integrated attach rate forecasting

and forecast netting• Demand, price, order patterns, and product transitions are all

interconnected• Integrated allocation and order promising – allocated available-to-

promise for profitable, optimized promising

Key Capabilities for Discrete Manufacturing• Multi-dimensional forecasting by product, geography, time• Product transition planning• Attach rate planning• Intelligent forecast netting• Configurable product promising

Demand

Demand Planning








Key Capabilities for Discrete Manufacturing• Intelligent network design based on global cost-benefit tradeoffs• Demand-driven master planning, factory planning and scheduling• Comprehensive understanding of numerous supply planning parameters• Integrated multi-echelon inventory optimization for differentiated service• Intelligent product transition planning• Configurable, hierarchical optimization based on multiple input parameters• Total landed cost and carbon footprint optimization• Rich supplier collaboration from sourcing, strategic forecasting to orders

Key Discrete Manufacturing CustomersSupplier

Management

Supply

Network and Inventory

Optimization

Master Planning


Sourcing Management


Key JDA Differentiators for Discrete Manufacturing• The most comprehensive representation of your physical supply chain reality• The best optimization algorithms generating the highest quality supply plans• Intuitive, easy-to-use, role-based planning workbenches with rich diagnostics • Largest number of successful, happy customers in your industry



Key JDA Differentiators for Discrete Manufacturing• Proven scalability, performance, and extensibility • Integrated suite from network modeling through freight audit and payment• Integrated to JDA supply suite

Key Capabilities for Discrete Manufacturing• Rich constraint representation including capacity at a lane level and

dock scheduling• Multi-modal modeling across divisions, inbound and outbound,

private and common carrier• Combinatorial bid optimization taking into account lane bundling,

capacity, service, performance, and price• Transportation network modeling with scenarios and what-if analysis• Shipment order planning and management integrated to freight audit

and payment and fleet management


Logistics



Fleet Management

Shipment Execution





Key JDA Differentiators for Discrete Manufacturing• Flexible process orchestration, calendaring, and event management• Sophisticated, multi-dimensional seller network• Rapid integrated supply analysis• Easy adoption through Excel interface

Key Capabilities for Discrete Manufacturing• S&OP process orchestration and calendaring• Integrated alerting and event management• Demand-supply matching with scenarios and what-if analysis• Demand shaping• Consensus decision making







Key JDA Differentiators for Discrete Manufacturing• Scalability and performance (grid computing for Demand)• Extensibility for all modules• Integrated master data management for SCM data• Multiple on-demand deployment options (hosted, SaaS, managed services)

Key Capabilities for Discrete Manufacturing• Workflow editing and configuration• Module-based extensibility• Open, standards-based integration• On-demand deployment options




Discrete Manufacturing Solution Business Differentiators Summary

• People

– Easier to use and reduce change management with Excel Look and Feel

– Ability to consolidate plans and drill down

– User Friendly “What-If” analysis

• Process

– Supports a corporate wide S&OP process

– Facilitates closed loop planning

– Supports optimization for material and capacity intensive manufacturing processes

– Supports “End to End” Supply Chain Processes like Quote to Cash (Q2C)

• Tools

– Scalable from few users to several hundred users

– Supports multiple deployment models (Licensed, Cloud On-Site, Cloud Off-Site)


Discrete Manufacturing Solution Product Mapping


Supplier Management





Demand Planning






Master Planning




Fleet Management

Shipment Execution


Web Commerce


Category Management



Sourcing Management


� JDA Supply Chain Strategist

� JDA Inventory Optimization

� JDA Supply Chain Planner

� JDA Planning on Demand

� JDA Scenario Analyzer

� JDA Factory Planner

� JDA Order Sequencing and

Slotting

� JDA Component and

Supplier Management

� JDA Product Sourcing

� JDA Strategic Sourcing

� JDA Collaborative Supply

Execution

� JDA Sales and Operations Management

� JDA Promotions

Management

� JDA Promotions

Optimization

� JDA Trade Promotions Management

� JDA Configurator

� JDA Pricer

� JDA Web Commerce

� JDA Space Planning

� JDA Shelf Assortment

� JDA Fulfillment

� JDA Shelf-Connected

Collaboration

� JDA Demand Manager

� JDA Demand

� JDA Demand

Decomposition

� JDA Dynamic Demand

Response

� JDA Collaborate

� JDA Order Promiser

� JDA Transportation Modeler

� JDA Bid Collaboration

� JDA Transportation Manager

� JDA Transportation Planner

� JDA Freight Order Management

� JDA Enterprise Architecture

� JDA Supply Chain Visibility

� JDA Analytics

� JDA Reporting

For a comprehensive cross reference to JDA product names, see the cross-reference workbook on the JDA Discrete Manufacturing SharePoint website




S&OP Case Study


Q & A


Our Discrete Manufacturing

Solutions

Supplier Management





Demand Planning






Master Planning




Fleet Management

Shipment Execution


Web Commerce


Category Management



Sourcing Management




Customer

Advantage

Excel UI with editable pivotsCentralized alerts and monitoring – impact analysisSupports S&OP process with pre-built templatesScenario analysis – demand, supply and financials

JDA

Differentiator

Consensus plan to meet business/financial objectivesManage by exception and identify root causesAdaptable to desired workflowsSupports qualitative and quantitative decision making

Sales and Operations Planning


� Lack of alignment

� No consensus view

� Lack of problem solving discipline

� Inability to assess impact of different decisions on overall plan

� Disconnect between volume and financial views

Key Challenges

S&OP Process Largely Remains Fragmented


Key Challenges

Root Causes for Lack of Synchronization

■ Data spread across multiple systems■ Most effort spent in collecting and collating information■ Large disconnects between detailed and aggregate plans

■ Limited participation from sales or finance ■ No structure to enforce a repeatable process■ Ability to see plan represented in functional stakeholders

language

■ Outdated, incomplete or incorrect data ■ Poor ability to assess impact of any shaping decision■ Capturing qualitative insights attached to the plan

Data challenge

Managing consensus

process

Enforcing accountability

■ Executive sponsorship and on-going senior level participation■ No ‘performance to plan’ analysis or enforcement ■ High variance in plan leading to finger-pointing

Assess Impact of changes

1

2

4

3


Definition & Maturity Model

What is JDA’s Definition of S&OP?

Definition of Sales and Operations Planning (S&OP)

� Set of planning and decision making processes used to

� Balance supply and demand (both volume and mix)

� Link business goals with operations, financial plans and business strategy

� Objective is to reach consensus on a single operating plan that allocates critical resources to

achieve corporate performance targets and market demand

� It impacts all business or brands, all factories and product lines

� Usually a monthly planning process with weekly adjustments - Planning horizon of 18 to 24 months

� Most effective when led and owned by senior executive

Issues and adjustments

Supply Targets

Response to Demand

Business plan targets

ProductPlans

Production, Procurement & Inventory Plans

FinancialPlans

ConsensusDemand Plan

Solution Footprint


Sales and Operations Planning drives profitable revenue growth through six business processes enabled through a combination of software and services• Our customers increase margins

and reduce supply chain costswhile improving customerservice levels

• Customer benefits areenabled by the followingcapabilities:

– Consensus ProcessOrchestration

– Rapid impact analysis

– Corporate memory to drive accountability

– Dynamic Plan Consolidation

– Excel User Interface thatenables enterprise adoption

JDA Sales and Operations

Management

Consolidated Demand Review

Consolidated Supply Review

Demand-Supply Integration

Financial Review

Continuous Plan Refinement

Business Performance Management

Definition of S&OP

Solution Covers Six Distinct Processes


Definition & Maturity ModelNine-Step Workflow

Finance

Customers

Sales

Marketing

Demand Planning

VPs/Executives/S&OP Committee

Manufacturing / Supply Chain

Operation & Execution People and Systems

Timeframe 2-14 days 2-5 days 3-5 days 1-2 days 1-2 days Ongoing Ongoing

Product Group& Engineering

Supply Plan

5

Financial Plan & Reconciliation

Phase-In / Phase Out Plans

Customer Forecasts

Sales Plan

Marketing Plan

1

2StatisticalForecasts

Consensus Demand Plan and

Scenarios

3

4

Demand / Supply Matchingand Scenarios

Demand Shaping

6

Financial Plan & Reconciliation

Consensus S&OP

(Exec Mtg)1.Demand

Review2.Supply

Review3.New

Product Review

4.Business Plan Review

7

Communicateand Execute

8

Financial Plan

Customer Forecasts

Sales Plan

Marketing Plan

Demand

Consensus

Supply Plan Scenario

Analysis

S&OP ConsensusBusiness

Functions

& Reports

Inventory Visibility

Shipment Tracking

Shop Floor Control

Financial Analysis

Waterfall Analysis

Actual Sales

Monitoring

Measure and

Revise

9


• Excel UI• Dashboards• Editable Pivots with

Graphs• On the fly hierarchy

and scope configuration

• Excel UI with editable pivot

• Intuitive navigation paths through Menus & Functions

• Single Plan Repository

• Price & financial analysis

• Product Life Cycle management Industry templates reports

• Alerts and Exceptions

• Process Playbooks

• Performance Dashboard & Action Item mgmt

• Audit Trail/User Log management

• Waterfall analysis and plan to plan comparison

• Reports and Business Functions for Demand, Supply and Executive Review

• Simplified hierarchy modeling with attributes

• MDM capability and local to global data translation

• What-if planning• Scenario creation

and comparison• Financial impact

analysis• Assesses the

feasibility of proposed changes

Plan Consolidation

Process Orchestration

Intuitive User Interface

Rapid Impact Analysis

Corporate Memory &

Accountability

Solution Capabilities

S&OP Enablement Using JDA S&OP

How does JDA S&OP Address Key Challenges

Managing consensus

process

Enforcing accountability

Assess Impact of changes

1 2 4

Typical S&OMChallenges

Data challenge

3

FEATURES



S&OP Process-Specific Dashboard



Qualitative Data Analysis

Qualitative Data

for Assumptions,

Risks and

Opportunities

Indicator for

Comments



Plan Consolidation - Supply


What if my Capacity

goes down?


Capacity What If Scenarios


S&OP Enablement Using JDA S&OPS&OP Calendar for Process Cadence (action items)




S&OP Case Study


Q & A


Case Studies

Example S&OP Product Customers


Thrs To

Mon.

Tue.

Wed.

Master Data Input(Demand, Result)

Supply Planning(Production Target)

Review planCheck Issue

S&OPMeeting

Weekly S&OP Meeting

Participant

- S&OP team (chairing meeting)

- Domestic sales, oversea subsidiary (video

conferencing), Masslam sales

- Manufacturing, quality assurance, procurement

- General manager, executives, president

KPI Review

- Weekly sales forecast accuracy, weekly and

daily W/H In fulfillment rate

- Inventory aging: 30 days, 60 days, 90 days

- On-time delivery

- Cause and counter plan for not selling, not

producing, and excess production

- Finished goods inventory reduction rate, urgent

order rate and inventory reduction rate

Plan Review

- Supply plan and shortage review

- Target fulfillment rate of demand

- Demand prioritization for excess demand

- Production plan change due to material

shortage

- Projected Inventory

ETC

- Issues on NPI, EOL, Product Quality Issue

Monthly S&OP Meeting (Last Wednesday Every Month)

Plan Review- Next 3 month plan, demand and supply

plan review

� Sales and production target for next

month, operating days determination

- Revenue, Profit, PSI

- Pre-building decision making

- Long lead time materials

KPI Review- Monthly KPI + management related

KPI review, EOL per end item discussion

Market and Competitor Trend

S&OP Meeting

Calendar and Agenda

Case Study

S&OP Discipline Across the Entire Organization


Case Study

Example Results

40% Reduction in FGI 58% Reduction in RM Inventory

Fulfillment Rate Increase: 90% to 98% Inventory Aging Reduction

Four Week

Clearance

Improved from

80% to 98%


• Partnered with JDA & Oliver Wight for S&OP

• Currently deploying Executive S&OP With Senior Leadership’s Bonus on the Line

• Standardized Globally on JDA

– Replacing SAP, Logility and others as they roll out JDA SCP

• “End to End” Supply Chain Processes

– Statistical forecasting to plant floor scheduling

• Realized “seven digit savings” through network optimization in Europe

Business Overview� ~ $10B Global medical device and

pharmaceutical manufacturing company

� Diverse portfolio including surgical,

respiratory, patient care devices, imaging

solutions, and pharmaceutical products

� Global manufacturing to serve local markets

(145 countries and territories)

� Top 10 Global pharmaceutical manufacturer

Case StudyStrategically Linking Supply Chain to Business Planning


Case Study

Consolidate Regional Data for Global Visibility

1. Consolidate global supply & demand data from regional spreadsheets

2. Apply rules to account for missing or duplicate data

3. Map and load data into a common, global, product-market-plant hierarchy

4. Generate business views of the global data set

5. Create executive reports for demand-supply analysis

NA Demand

NA Production

EU Production

and Demand

APAC

Production

APAC Demand

LAAM Production

and Demand

Global Production

Report

Global Demand Report

Peak and Valley Charts at Global and

BU levels

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08

Global T-2XX

Cumulative Monthly

Surplus

Shortage

Production vs. Requirements in Units [000] 15-Feb-08


• 5 - 10% Reduction in Inventory

• 5 - 10% Reduction in Carrying/Logistics Costs

• 30 - 40% Productivity Improvements

*These metrics represent a conservative range of actual client benefits achieved

• 1 - 5% Increase in Revenue

• 5 - 15% Improvement in Gross Margin

• 15 - 30% Improvement in Forecast Accuracy

• Reduced Out-of-stock and Overstocks

Cost Containment

Asset

Productivity

Revenue

Enhancement

Increase

Shareholder

Value

JDA Value Impact

Sales & Operational Planning




S&OP Case Study


Q & A


SuppliersSuppliers ProductionProduction ShippingShipping DistributionDistribution RetailRetail ConsumerConsumer

End-to-end Supply Chain

A Focus on Profitable Innovation

SUPPLY

CHAIN

EXPERTISE

SUPPLY

CHAIN

EXPERTISE

Ideation

Technology

& Process

CommercializationCollaborative

Development

Continuous

Improvement


Value-Based Delivery

Delivers a superior ownership experience and better results by:

Who better to manage JDA applications than JDA!

Achieving business benefit faster with quick access to the latest technology

Significantly reducing IT risks and costs

Lowering total cost of ownership and capital outlay

Unlocking greater value from your JDA investments

Helping you stay focused on your core business

Q & A

37

Thank You!!!!

38

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