partner selection in end to end resource planning: an soa and data mining based approach min ni,...
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PartnerPartner Selection in E Selection in End to End Resource nd to End Resource PlanningPlanning: :
An SOA and Data Mining Based An SOA and Data Mining Based ApproachApproach
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MIN NI, PHD
Post-doctor research scientist
Digital China Post-doctor station
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
www.oasis-open.org
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
www.oasis-open.org
Changing of business environment
Business environment is tougher Rapid changing of market landscape Globalization
Companies want to: maximize their business results
Revenues up profits up costs down
Sustaining profit growth becomes critical
State of the enterprise
Crisis of Complexity No “green-field” development New applications must integrate with
existing heterogeneous “legacy” systems
IT Must Deliver Business Agility Support new business opportunities Leverage new technologies
Changes in IT Architecture… Business management pushes for better IT
utilization and greater ROI Re-Use of IT assets, integration of B2X and ERP.
Merger and acquisition have become a fact of life Integration of historically separate systems across
enterprise borders New systems must be developed with (current or
future) heterogeneity in mind Results driven.
Internet everywhere has created a set of new business models
Integration anywhere and anytime is possible.
Interoperability via SOA
Data, logic and infrastructure accessed by routing XML-based messages (Web Service) throughout Internet
Location is meaningless Multiples Services suppliers Ubiquitous computing Preserves and connects existing systems Using the Right Software Architecture brings
exponential productivity gains
SOA in Action (example)
PurchasePurchase
E-commerceE-commerceportalportal
CRM CRM
Fulfillment servicesFulfillment services
Authentication Authentication and and authorization authorization servicesservices
Credit authorizationCredit authorization
Billing servicesBilling services
Ack/ReceiptAck/Receipt
Triggers a Triggers a business processbusiness processImplemented by a Implemented by a
set of servicesset of services
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
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SOA has proven
Data level: Lower cost, and more efficient way to
integrate application across the enterprises. Application level
Development with Lower entry barrier, easier way to collaborate, and faster development cycle.
Next step of SOA
Business level: How to coordinate different services in
business context and achieve the best business model?
How to generate the most efficient business process automatically and intelligently?
The answer is EERP:
End to End Resource Planning
EERP concept: resource planning
With SOA and open standard, we can now help enterprises to improve their profits and sustain the profits, we introduce EERP:
End to end resource planning, optimize the resources along an specified value chain.
What does EERP do?
What is it? A new way to look at enterprise IT application
Integration inside and outside of a enterprise border. A new software architecture and platform
a collection of Web Services that perform various enterprise functions, data exchange, process integration, collaboration and other relevant work.
A self-healing, intelligent, and reliable service choreograph platform (SoftGrid)
Real-time Value Chain Optimization
SCMServices
CRMServices
ERPServices
MRP IIServices
…… Service layer
Real-time auditing
& measuring
EERP platformExtended
UDDI
QoSdesc
Intelligent searching & scheduling
Business goal
Optimize for time
Optimize for profit
Optimize for ……
Real-time Value Chain Optimization
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
www.oasis-open.org
EERP top-down service design and deployment strategy
Business process
discovery & definition
Business ontology definition
Service oriented analysis
Service oriented design
Service implementation
Service testing
deploy serviceto EERP platform
Step 1 Step 3
Step 2 Step 4
Step 5
Step 6
Step 7
EERP top-down business process orchestration strategy
Business goal Investigation/
definition
Business ontology definition
Service discovery
QoS deployment& calculation
Service orchestration
Service(business process)
execution
execute QoSauditing
Step 1 Step 3
Step 2 Step 4
Step 5
Step 6
Step 7
service QoSrecording & assessment
Step 8
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
www.oasis-open.org
Integrating the Supply Chain & Value Chain
A Supply Chain transforms into an integrated Value Chain when it….. Extends the chain all the way from all levels of
suppliers to customers. Integrates the back-office operations with those of
the front office. Becomes highly customer-centric, focusing on
demand generation and customer service. Is proactively designed by chain members to
compete as an “extended enterprise”. Seeks to optimize the value added by information
and utility-enhancing services.
Challenge of the problem——to build value chain agilely How to identify ‘voice of customer', and
satisfy them The complexity brought by the enormous
amount of suppliers (over 1000 suppliers for an automobile manufacturer)
The efficiency of decision-making The challenge of integrating enterprise
and it’s suppliers
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
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Selection strategy
1. Key Success Factors (QoS factors) -Quality -Cost -Delivery time -Innovation
2. Continuous Improvement3. Total Value-Chain Analysis4. Dual External / Internal Optimization Focus
Customer
Satisfaction
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
www.oasis-open.org
(QFD) Quality Function Deployment Process
How to capture customers’ requirements:
QFD (aka “House of Quality”) was first implemented by Yoji Akao integrate the “voice of the customer” into the design and delivery of products.
The House of Quality
• 6. Targets6. Goal & constraints
• 4. Inter• -• relationships
4. Customer Requirements
-Technical Characteristics correlation matrix
2. P
rod
uct
p
lan
nin
g m
atri
x
1. C
ust
omer
R
equ
irem
ents
• 3. Technical• Requirements
3. Technical Characteristics
• 5. Roof5. Technical Correlations
QFD & Suppliers Selection1. Draft a list of supplier requirements that
contribute to the fulfillment of customers needs.
2. Formulate evaluation criteria for suppliers.
3. Determine the importance (weight) of the criteria.
4. Rank your suppliers, and make appropriate selection that will accommodate customer needs.
Data Mining in supplier selection By data mining, frequent fault patterns under
different environments and different use patterns, critical requirements can be found;
As mining result, frequent fault patterns can be used to build a components correlation matrix;
Manufacturers can perform competitive product analysis based on information from customer profiles and the market in order to determine competitive products that greatly affect the concerned product.
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
www.oasis-open.org
An SOA-based System for supplier selection
Why use SOA?Data/Services are distributed/heterogeneous;
Why choose EERP?
To build real-time value chain and perform optimization;
An SOA-based System for supplier selection based on extended QFD and DM
Services implemented:
Data object services;
Mining services;
Decision-making services;
Optimizing services;
System implementationSystem requirements: Operation System: Windows
NT/2000/XP/2003, LINUX, UNIX; DBMS: IBM DB2, Microsoft SQL Server,
Sybase, Oracle, Informix and DBMS that support JDBC/ODBC;
Application server: WebLogic, websphere, etc;
Outline EERP
Background
Real-time Value Chain Optimization
Design & Implementation strategy
Supplier selection
Challenge of the problem
Selection strategy
QFD & Data Mining
Supplier selection implementation on EERP
Conclusion
www.oasis-open.org
Conclusion
1. SOA provides the possibility and flexibility to integrate heterogeneous systems;
2. EERP use information gathered from the product’s full life-cycle to perform real-time value chain optimization, which is needed in real-world business scenarios;
3. EERP will lead the trend of enterprise computing;
4. Data mining can discover useful and interesting knowledge in business context.