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Process Manufacturing Drivers, Concepts & Overview

August 18th, 2008

AGSS Process Manufacturing Sales Support Team

The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. 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 for Oracle’s
products remains at the sole discretion of Oracle.

2
Oracle Process Manufacturing

Key Business Challenges in Process Manufacturing Industries

Evolution to Information Driven Manufacturing
Design to Deliver Process Manufacturing Flow

3
 Food & Beverage Process Industry Value Chain

Suppliers Finished
Growers
Raw
Manufacturers Product Mfgr
Materials
Brokers

Distributors

Retailers

Business

Distribution
Channels Web Direct Consumer Customers
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
 Today’s Value Chain is Complex
• Geographically Distributed • Increasingly Collaborative
• Dynamically Networked • Product & Service Oriented

Value Creation
Suppliers Customers

Value Creating
Activities
Inbound Outbound Marketing
Operations Service
Logistics Logistics & Sales

Innovation
Procurement

Supporting
Activities
Human Capital Management
Financial Management

5
 Information is Critical to Your Value Chain

Historically, Companies Resulting in Rigid

Focused on Perfecting Processes Optimized for
Internal Operations… Static Market Conditions

Unplanned Disruptive
Scenarios Changes

External
Corporate
Processes &
Objectives
Information Internal Process Focus

Inbound Outbound Marketing

Operations Service
Logistics Logistics & Sales

Undefined,
Cross-LOB
Ambiguous
Programs
Information

6
 Information is Critical to Your Value Chain
Information • PREDICT Market Requirements and Risks
Enables • INNOVATE & ADAPT to Drive Leadership
You to… • ALIGN Operations to Comply and Achieve
Business Goals
Changing
Market Unplanned Disruptive
Conditions Scenarios Changes

External Predict Innovate , Adapt Align,

Corporate
Processes & Comply Objectives
Information Value Chain Focus

Inbound Outbound Marketing

Operations Service
Logistics Logistics & Sales

Undefined,
Cross-LOB
Ambiguous
Programs
Information

7
Oracle Process Manufacturing

Key Business Challenges in Process Manufacturing Industries

Evolution to Information Driven Manufacturing
Design to Deliver Process Manufacturing Flow

8
 Process Industry Business Drivers
Variability Regulatory Compliance
• How do I create consistent • How do I comply with global
products using inconsistent and local requirements?
ingredients? • How do I ensure lot traceability and
• How do I achieve process and adhere to standards such
reaction stability? as 21 CFR Part 11?

Raw Materials, Value-Added Finished

Ingredients Transformation Goods

Reduced Time to Market Lowest Total Cost

• How can I manage a growing list of • How can I meet quality, delivery,
key product attributes? and service demands at a
competitive price?
• How can I efficiently mass • How can I minimize waste and
customize my products?
emissions?
• Achieve global visibility with ability
• Manage the production process to
to manage plant specific variability
deliver profitable, regulatory-
• Create and execute an optimal compliant, high-quality products
production plan
9
 Escalating Cost Pressures

1. Labor costs rising globally – resulting in outsourcing to

lower cost labor markets
2. Energy Prices continue to Rise resulting in cost increases
in downstream products due to energy consumption in
manufacturing process:
– Gasoline
– Electricity
– Plastics
– Paper
3. Raw Material
Costs rising
Rising raw material costs put a crimp in first-quarter profits at paints and
coatings companies. The first quarter is typically the slowest for
paintmakers, particularly in the architectural coatings sector because of the
weather, producers say.

Dull Finish*
(in millions of dollars)
Company Sales % Change Earnings % Change
Akzo-Nobel $1,597.0 0% $79.8 -26%
Sherwin-Williams 1,540.0 17 83.3 62
DuPont¹ 1,536.0 8 166.0 -12
PPG Industries² 1,332.0 5 9.0 -95
ICI 961.9 2 94.1 2
BASF 607.5 -7NA NA
RPM³ 516.3 9 4.5 -25
*First quarter sales and earnings for paints and coatings operations. NA=Not available. 1) Pretax
operating profit. 2) Includes $150-million pretax charge for nonrecurring legal settlement. 3) Fiscal
third quarter ended Feb. 28.

10
A Need for Change
Leading Business Trends

• Accelerating Time to Market

• Managing Variability and Consistency
• Optimizing Capacity and Ingredients
• Controlling Product Cost and Quality
• Reducing Complexity
• Getting Timely Information to Make Decisions

11
 Traditional ERP Manufacturing Solution
MRP

Manufacturing

Process Discrete

Analysis via Inventory

Spreadsheets Management
Bills of Materials
Recipes
Routings
White Board / Spreadsheets

Work Orders

LIMS / Quality
System Shop Floor System

14
 Oracle Information Driven Manufacturing Solution
Global Order Promising Planning & Scheduling
Analytics
Predict Demand Innovate
Manufacturing Product
Intelligence Flexible, Mixed Mode Manufacturing Lifecycle Mgmt
Standard
Process ETO Discrete
ATO / CTO Warehousing /
MTS Lot-Based Transportation
Flow / Lean

Manufacturing Execution Asset

Lifecycle Mgmt
Sample Analyze Adjust Quality Mgmt

Visibility from Lot / Serial Genealogy Tracking Adaptive Quality

Shop Floor to Project Tracking Service
Top Floor

Collaboration
MES Partner
Collaboration
Shop Floor Sys
and Visibility
Contract Mfgrs Suppliers
15
 Process vs. Discrete Manufacturing

Process
• Variable ingredients, by-/co-products
• UOM are material specific
• Use multiple recipes and formulas
• Need lot, grades, potency, shelf-life
• Mixes, blends, transforms
• Makes “STUFF”
Discrete
• Standard parts, components
• UOM are by unit or by lot
• Use complex multi-level BOMs
• Need serial numbers, ECNs
• Builds, assembles, fabricates
• Makes “THINGS”

Beverages, Chemicals, Paper,

Foods 24% Pharma 36% Metals, 20%
Fibers

Process: 40%
Discrete: 60%
 Process vs. Discrete Manufacturing

Process Discrete
• Item/Ingredient • Part Number
• Formula/Recipe • BOM
• Yield • Scrap
• Dual UOM • UOM Conversion
• Non Linear Routing • Linear Routing
• Lot Trace • Serial Number
• Production Batch • Work Order
• Quality Assays • Pass/Fail
• Parent Lot/Child lot/Grade • Serial Number
• Gallons, Pounds, Pounds Solid • Each, Pieces
Oracle Process Manufacturing

• Process Inventory Model

• Parent/Child Lots,Status, Grade, shelf life
• Concurrent UOMs
• Full bi-directional Lot Tracing
• Process Cost Model
• Concurrent tracking of standard and
actual costs
• ABC style allocations
• Unlimited calendars, periods, methods,
elements
• True Co-packer/Tolling cost
• Stability Studies
• Least Cost Formulation

18
Oracle Process Manufacturing
• Formula based planning
• Multiple versions
• Scaling, Theoretical Yields
• By-products/co-products
• Planning, Production, Costing types
• Recipe workbench
• 21 CFR Part 11 Compliant
• Electronic Signatures
• Electronic Batch Records
• World class Audit Trail
• Unbreakable Security
• Quality Control Workflows
• Process Oriented Production

19
 Why is it Hard? Lot Genealogy

Multiple Units of Measure

Yields

Complex
Costing

Lot Sizes
Shelf Life
Seasonality
pH Factor
Circular Processing Catch Weight
20
Oracle Process Manufacturing Overview

Key Business Challenges in Process Manufacturing Industries

Evolution to Information Driven Manufacturing
Design to Deliver Process Manufacturing Flow

21
 Design to Deliver Manufacturing
Supply Chain Management Flow

Demand Inventory Quality-Oriented

Management Management Process Management

Sales Comprehensive
Process Mfg
Cost
Management Management
Solution

Process
Recipe & Formula Management Performance
Development (MES for Process) Analysis

Supply Chain Electronic Batch Shipping &

Planning Record/E-Signature Transportation

Multi-Level
Procure Manufacturing Material/Resource
Materials Operations Center Traceability

API Interfaces
22

OPM Bundle
 Becoming More Demand-Driven is High on
our Customers’ Agendas…

• Increasing margin pressure

• Supply chains are notoriously inefficient

• Need better and more timely product distribution data

Leading companies are looking to become more

demand-driven as a key enabler of profitable growth

23
…but Difficult to Achieve with a Traditional
Disconnected S&OP Approach
High latency, limited collaboration, no consensus
forecasting
Your Company
Financial Production New Product Sales Marketing Measurement
Planning Planning Planning Quotas Forecasting and Reporting

Multiple,
Manual processes non-integrated
Multiple data sources systems

No connection between plans, plans not tied to execution

? Misalignment between metrics and objectives
Unreliable forecasts and production plans

24
Improved Demand Management
Sense Demand: Arrive at a More Accurate Number

Gain real-time visibility to all demand signals

• Accommodate multiple units of measure and currencies for
Sales, Marketing, Customers, Suppliers
• Include point of sale information in real time
• Forecast at a more detailed level – store, shelf, etc.
• Move from a regimented periodic to a continuous demand
planning process

Accurately predict demand via adv. analytics

• Establish baseline forecast from quantitative & qualitative data
• Utilize high precision statistical forecasting without requiring a statistical
background
• Forecast based on attributes and characteristics

Rapidly reach a better consensus-based forecast

• Use multi-dimensional analysis to adjust, allocate, and rollup
• Collaborate with internal and external constituents
• Ensure responsiveness via workflow-driven forecast exceptions
• Capture contract win assumptions w/ assumption-based forecasting

25
Real-Time Sales & Operations Planning
Shape Demand: Leverage More Frequent POS Data to
Drive Supply-Demand Balancing Decisions

Profitably balance supply, demand & budgets

• Make allocation decisions while trading off service levels & cost
• Balance the needs of many customers in different channels
• Examine throughput on the most critically constrained resources or
suppliers, and profitability by product family

Monitor performance, manage exceptions

• Adjust demand or supply plan as conditions change
• Create sales incentives and promotions to close gaps
• Drive continuous improvement

Use workflow-driven collaborative planning

• Enable a workflow-driven multidisciplinary collaborative process that
includes Manufacturing, Finance, Sales, Marketing, and external
stakeholders
• Adapts to business process via configurable planning platform
• Achieve internal & external collaboration via web-based portal

26
 Demand Signal Management
Critical Feed into S&OP

The Opportunity
• Drive sales and improve inventory
management by:
Oracle Collaboration Consumer Response
• Reducing demand latency
Pricing &
Promotion
Demand
Planning Supply Chain
• Providing data-driven, actionable
Management
Category
Management
Planning
Order
Fulfillment
intelligence
Consumer
Marketing Distribution
The Challenge
Product Retail

• Disparate downstream data sources

Innovation Execution
Consumer
Patient
• Data cleansing, harmonization and
Performance
Supply
Network
integration
Management Design

Sales &
Operations
Inventory
Optimization
• Integration with enterprise applications
Planning

• Readiness of enterprise applications to

drive specific operational changes
The Solution
Oracle Demand Signal Management
27
 Oracle DSR Solution Concept
Retail Store Data
• POS sales
• Price TPM
• Store inventory
• Promotional plans • More timely data
TPO

Aggregated Demand Signals

• Store replen. rules to better sense,
• Store forecasts
shape and respond

Respond
Integrate
Capture

Analyze
Manage

– SOA Messages –
Retail DC/ Distributor Data APS to demand
• DC shipments
• DC inventory • Reduced manual
• DC replen. rules S&OP effort and cost
Other External Data
• Consistent data
• Retail loyalty DRP
• IRI/AC Nielsen more easily
• 3rd party leveraged across
demographic Oracle Demand SNO
Signal Repository teams and
• Causal (weather,etc.)
• RFID/EPC applications
• IMS, NDC, EDI (867, • Data sources centrally cleansed, PLM
852), Scripts, harmonized and aggregated
Pedigree • Pre-built dashboards and reports
• Unstructured text
• Powerful BI capabilities
• “Sense & Respond” event management
28
 Closing the Sales & Operations Planning Loop
DSM will offer “out of the box” integration with Oracle Demantra
Sense Plan Demand Plan Supply
Sales & Inventory
Marketing Optimization

Strategic
Promotion
Network
Distributors / Consumers

Planning
Optimization

Market Evaluate Consensus

Demand Consensus
Signal Demand Supply Supply Plan
Forecast
Mgmt. Forecasting Constraints

Suppliers
New Product Constraint
Forecasting Based
Scheduling

Manufacturing Design for

Execution Quality
Measure
Performance Warehouse
Management Manufacturing Hub
Track & Trace
Process In-Process
Transportation
Control Analytics
Management

DCS / PLC Oracle Today

Oracle Strategy
Analyze Execute Partner Solutions
29
The Great Information Divide Is Still There
How do the supply chain executives get
access to actionable information?
Volatility Compliance Chaos Operational Efficiency
Virtualization Risk Uncertainty Risk management and Compliance
Globalization Consolidation Continuous Innovation

Emails, Phone calls Spreadsheets, Reports

Manual Co-ordination Across Functional Groups

• Typically, they don’t have access to correlated and aggregate planning data unless it is presented in a
comprehensive spreadsheet or on paper
• Often, the decision is made to design and build a custom data warehouse that has no integration to the
source of the data and that is a limited representation of the data
• Supply chain executives have no time to learn power user interfaces that we developed for purposed
planning applications

30
Solution: Advanced Planning Command Center
Enables cross-planning process management,
decision making and automation
Volatility Compliance Chaos Operational Efficiency
Virtualization Risk Uncertainty Risk Management and Compliance
Globalization Consolidation Continuous Innovation

Pre-built, configurable Dashboards and Reports Scenario, Activity and Process Management

Preconfigured Analytics Model

Planning
Workbenches

• Provides integrated analytics combined with process and activity management enable a more structured
approach to cross planning discipline processes, analysis and decision making – Everyone looks at the
same picture, no learning curve!
• Enables informed decision making through the ability to correlate data quickly and the provided drill downs
to the lowest level of detail
• Pre-built – Get started quickly for quick ROI

31
 Advanced Planning Command Center
Key capabilities that enable cross-discipline
process management and analysis
Pre-Built Dashboard Pre-Built Dashboard
• Scenario Analysis
• Compare different scenarios, or plans, in customizable
analytical dashboards
• Configure exceptions (ibots) for alerting
• Scenario Management
• Define planning scenarios that span multiple constituents of the
planning community
• Assign scenario activities for execution by the planning
community
Output of Analytical Data • Optionally group scenarios together
Executed and Exceptions Activity Lists
• Combine plans together into scenarios after the fact
Archived Plans Executed Scenarios
• Copy scenarios for execution of new scenarios
Activities (tied to • Optionally, define Scenario Sets to group scenarios – Define
Scenarios) new scenarios for execution in the set; leverage Sets to search
Scenario for limited set of Scenarios
Management
Preconfigured Planning Processes • Activity Management
• Manage assigned activities; assign new activities to users
Plans linked to Scenario and Plan • Process Management
Scenarios output from executed • Link multiple planning processes together for automated or
processes manual execution
• Use Plan Archive to archive plan summary information
Planning Data Archived Plans • Optionally, configure to tie in non-Oracle systems
Plan • Optionally model and use approval and review steps
Archive
• Use system defined (BPEL) or user defined process activities
• Execute the process - plan results are stored and automatically
aggregated into analytical data

32
Dashboard: Demand & Supply

33
 Demantra Real-Time S&OP
Enabling the next generation best-in-class S&OP
process
Sales and Operations Planning Process
• Move from a periodic reactive
process to a real time proactive
process

Demand Review Product Review

• Start quickly with best practice
Management
Shape
templates and easily adapt to your
Review business
Respond
Sense
• Sense, shape, and respond to
demand

• Drive tactical decisions into

execution and monitor
Execute and Supply Review performance
Measure

34
Oracle Demantra Demand Management
Real-time demand sensing and collaborative
consensus forecasting

• Sense demand real-time

CHANNEL DATA • Capture demand more frequently, closer to the point of consumption
• Capture demand and forecast at more granular level (store, shelf,
attributes, product characteristics)
• Achieve consensus demand number more quickly by involving all
constituents at the same time, including customers
• Quickly identify and react to demand changes and exceptions

• Improve forecast accuracy

Collaboration • Leverage advanced statistics for more accurate demand number
Workbench • Use any combination of quantitative or qualitative data to establish your
base line forecast
Marketing Order
• High precision statistical forecasting, no statistical background required –
forecast history
Superior Bayesian-Markov forecast analytics
• Forecast based on attributes and characteristics
Customer Shipments • Leverage Advanced Forecast Modeling for promotion lift decomposition
sales and causal analysis

• Shape demand for profitability

• Plan new product introductions
• Plan promotions and sales incentives
• Identify cross selling opportunities

• Evolve to real-time S&OP

• Profitably balance supply, demand, and budgets
Demand Hub and Seeded Worksheets • Align strategic and tactical plans
• Role based process, proactively managed via workflow

35
Align With Real-Time S&OP
Leverage best-in-class Sales and Operations
Planning from Demantra
• Analytics-based demand management
• Capture all demand data in a central place
• Use analytics to develop a bottom-up forecast
• Workflow-driven collaborative planning
• Enable a workflow driven multi-disciplinary
collaborative process with all stakeholders
• Adaptable, configurable planning platform
• Web-portal based internal & external collaboration
• Profitably balance supply, demand
• Make allocation decisions,
• Tradeoff service levels & cost
• Monitor Performance
• Adjust demand, supply plans as conditions change
• Create incentives and promotions to close gaps
• Drive continuous improvement

36
Oracle Order Management
Customers Forecasting
Suppliers Order Accuracy

Complete Integrated
Collaboration Info Intelligence

Web Store Planning

Check
Availability
Call Center Price Purchasing
Schedule
Discrete
Field Sales
Tailorable, Manufacturing
Con-
figure Workflow Plan Process
Service Driven Ship- Manufacturing
Process ment
EDI Invoice/ Finance
Payment
Pick, Pack
Customer Track & & Ship
Logistics
Systems Deliver

Multi-Channel Enterprise
Demand Complete Business Flow Integration
37
 Recipe & Formula Development
Recipe & Formula Development
Process Manufacturing Product Development delivers
comprehensive and powerful tools that allow process manufacturers
to manage the product lifecycle from inception through production.
With OPM Product Development, you can accelerate innovation to
market, assure consistent, quality products, and minimize costs and
compliance risks.

Enables Benefits
• Compliant approval authorization, e- • Secure and manage data
records & e-signature, mass search and • Accelerate recipe development
replace
• Manage variability and product
• Change management, recipe designer, consistency
least cost formulation
• Reduce costs and optimize formulas
• Process details, computer-aided
formulation, item substitution
• Least cost formulation, formula analysis

38
 Process Product Development
Reducing Time to Market and Costs
Recipe & Formula Development
Internal
Testing Web-Based
(Stability W
Studies)
o Formulate Access
r
k

Concept
Engineering Manufacturing
Document f
l Validate
Mgmt
o
(MSDS)
w
Approve & Requirements
Electronic Release Sales & Mktg
D Specifications Purchasing
Digital r
Records Studies
i
v Schedule Schedules
e Defects
Process n

Retire
Mfg Records Orders Service Finance
S Produce
O
Recipe & P
External
Knowledge Secure s Test &
Access Maintain
Repository Web-Based
Access
Suppliers Customers
Process
Improvement
40
 End-to-End Multi-Mode Execution Process Management
• Collaborative Research • Production Recipes
• Formula / Recipe Mgmt • Change Control Processes • Parent Lot, Child Lot, Contaminant Tracking
• What-If Analysis • Workflow Driven • Special Packaging / Toxicity Insert Included
• Least Cost Formulation • Least Cost Formulation in Bill of Materials
• Computer Aided Formulation • Computer Aided formulation • MES

Formulate Validate Approve

Schedule Produce Test
& Release

• Lab Batches / Pilots • Supplier Mgmt • Lot Quality / Consistency

• Master Batch Records • Production Planning • Cert. of Analysis
• Tracking & Reporting • Multiple Plants • Cert. of Conformance
• Specification Matching

Monitor & Adjust Performance • Lot Genealogy

• Process Repeatability
Complete Support
Manage ingredient
• Yield Performance
and process • Product Data Management
for FDA 21 CFR Part 11
variability • Role-Based Responsibilities EU &TGA Gap Guidelines
• Lot Costs S88
ISA 95 41
Recipe & Formula Development
Recipe Structure
Validity Rules

•Recipe Types
Costing Quality
•Effectivity Dates
•Capture Simultaneous Cost Methods •Planning Rules •Specifications
•Least Cost Formulation •Samples
•Evaluate / compare costs by method •Results

Recipe
•Graphical Recipe Designer

Formula -
Routing
Material List Resources
Requirement
INPUTS OUTPUTS Processing
Operations
•R/M •FG Instructions
•Int •By Text / Parameters Activities
•PKG •Co MES for Process Resources

Step/Material Association

42
 Collaborative Access to Product Details
Quickly Develop New Formulations
Graphical Recipe Designer
Easily view complete /
modify product details
Search, retrieve and copy
from existing formulas
Drag and drop items,
operations, and
process instructions
Complete Support
for FDA 21 CFR Part 11
Automatically compute
material quantities and
anticipated yield
Define conditions for
recipe component use
Initiate status change
and approval process
• Formulas, Recipes & Routings
• Ingredients and Operations
PLM for • Process Instructions
• Documents (e.g., MSDS)
Process
• Issues and Changes
• Customer Specs & Reqts
43
 Computer-Aided Formulation
Model Production Requirements to Target Specifications

Inventoried In-Process
Lot Properties QC Metrics

Computer-Aided Formulation
• Recalculate Material
and Yield Quantities
Target Product /
Product Recipe • Compute Batch
Characteristics (e.g., fat Customer Specs
content, potency, etc.)
• Automatically Revise
Lot Allocations

• Model & analyze impact of formulation change before producing expensive

and time consuming laboratory test batches
• Perform ‘what if’ new or revised formulations without interfering with
production
• Optimize using specify product target properties and allow software to
reformulate ingredients
44
Least Cost Formulation
Speed Innovation though Quality and Cost Optimization

VARIABILITY & QUALITY

• Optimize variability of material characteristics
• Select alternative ingredients for use-up
• Formulate based on product target attributes

COST & COMPLIANCE PRESSURES

• Select price-optimal formulas and batches
• Reduce costs by using least cost ingredients
• Fulfill regulatory requirements for products

INNOVATION & COMPETITIVENESS

• Leverage existing architecture
• Meet product specifications every time
• Eliminate guesswork from formulation process

45
Least Cost Formulation
Optimize Costs while Complying with Product Requirements

• Generate formulations based on material, compositional, and

technical requirements
• Analyze formulations using Product Requirements
• Load cost from any source
• Create formulas or production batches directly
Product
Requirements
• Quality Least Cost Formulation
• Regulatory Item Weight Cost Brix
• Chemical ----------------------------------------------------
• Nutrients Milk 15 825.07 0.3080 12.000 Formula
Milk 23 825.07 0.5234 14.600
• Costs Milk 12 825.07 0.3080 12.000
Sugar 329.31 0.3100 65.000
Chocolate 4.38 0.3200 33.000
Alternate Stabilizer 4 36.22 0.3800 0.000
---------------------------------------------------
Ingredient
Listing Batch
46
 Focus on Product Targets
Assure customer satisfaction at target cost

Typical Formulation Process – Start with Ingredients

•Ingredients •Qty
•Apricot Juice •5
•Grapefruit Juice •25

•Water •55 Fruit Juice

Product

Least Cost Formulation Process – Start with Product

•Product: Fruit Juice •Ingredients •COST •BRIX •%MOIST •SWEET

•COST •Apricot Juice •10.00 •28 •70 •30

•BRIX
•Grapefruit •8.00 •27 •70 •29.5
•%MOISTURE Juice
•SWEETNESS •Water •.75 •0 •100 •0

47
 Recipe & Formula Development
Recipe & Formula Development
Process Manufacturing Product Development delivers
comprehensive and powerful tools that allow process manufacturers
to manage the product lifecycle from inception through production.
With OPM Product Development, you can accelerate innovation to
market, assure consistent, quality products, and minimize costs and
compliance risks.

Enables Benefits
• Compliant approval authorization, e- • Secure and manage data
records & e-signature, mass search and • Accelerate recipe development
replace
• Manage variability and product
• Change management, recipe designer, consistency
least cost formulation
• Reduce costs and optimize formulas
• Process details, computer-aided
formulation, item substitution
• Least cost formulation, formula analysis

48
 Supply Chain Planning
Supply Chain Planning
provides enterprise-wide coordination to balance material supply with demand and to
ensure timely delivery of finished products. To balance inventory supply and demand,
OPM Material Planning examines pending inventory transactions, applies demand to
current inventory balances, suggests specific actions based on user-defined sourcing
rules, and projects inventory availability dates based on Unconstrained ASCP
recommendations. OPM Material Planning is more than typical MRP system planning
material. It will also provide the user a Rough Cut Capacity view of resource loading.
For CRP (Capacity Resource Planning) OPM uses Oracle ASCP in a constrained and
optimized plan.

Enables Benefits
• Access real-time information from sales, • Material and rough cut capacity planning
production and inventory to make quick • Enhanced co-product planning
and accurate decisions.
• Ability to perform on-line simulations
• Perform “what if” calculations to view and • Perform “what if” calculations to view the
react to the effects of unanticipated orders
effects of unanticipated orders
or shop floor problems such as resource
breakdowns and overloading. • Access real-time information from sales,
production, inventory
• Evaluate Firm Planned Orders before
implementing by checking ingredient and
resource loading availability then commit
FPO’s to production.
49
 Supply Chain Planning
Optimize Inventory by Location and Quantity

Enterprise
Level

Region
Level

Plant
Level

• Leverage current enterprise-wide data • Customize planner-specific views

• Optimize inventory and resources across • Planner workbench enables drag and
supply chain in one step drop rescheduling, “what-if” simulations

50
 Planning in Process Industries

Rule-Based Recipes Support Sequence-

Accommodate Seasonality, Variability
• Specify Recipe Conditions for
Seasonality, Equipment capacity,
Plants: global vs. local data,
Preferences and Use
• Products May Have Multiple Valid
Recipes
• Alter Recipe for Each Production
Run Demand
Quantity & Date
Dependent Setup (SDS)
• Model SDS directly and schedule
activities to reduce changeover
time
• No need to reduce resource
efficiency or utilization as a
surrogate for changeover time
L H M H L

Recipe X
Formula X, v. 5
L L M H H
Route 1, v. 3
Validity Rules
v1 v2 v3

Production
Batch
51
 Distribution Planning
Optimize Supply Allocation to Distribution Centers

Demand Planning Determine optimal supply allocation

from plants to distribution centers
Demand
• Fair share allocation
• Inventory policy
• Circular sourcing
Multi-Plant Planning
• Shipping method selection and load
Supply consolidation
• Global forecast  local allocation of
supply across distribution network
Distribution Planning
Automatically generate transfers
DC
• Create internal transfers
• Create consolidated shipments
Distribute
• Integrated with Transportation Mgmt
RDC
for carrier and mode selection

52
 Enterprise-Wide Purchasing Automation
Drive Compliance and Manage Spending Behavior

Online Catalogs & Matching

Contracts Rules
Products

Services

Requisition Review / Create & Receive & Pay Supplier

Approve Route PO Reconcile
Designed
Equipment

Approval Policies Accrue / Relieve

(e.g., Funds Checking) Tax Encumbrance
Indirect
& MRO

Configurable, Pre-modeled Best Practice Purchasing Workflow

53
 Oracle Sourcing & Procurement

Demand Reduce Spend on Goods and Services Supplier

Collection Collaboration
Spend Category
Analysis Management
Online Orders
Indirect Sourcing
Goods

Supplier
Streamline Procurement Processes Portal
Logistics
Services Approval Touchless Automated
Routing Buying Payment

Supplier
Engineered Settlement
Network
Goods Budget-Based
Procurement
Contract Supplier
Management Performance
Direct Profile
Materials Management
Enforce Policy Compliance

54

Source
 Supply Chain Planning
Supply Chain Planning
provides enterprise-wide coordination to balance material supply with demand and to
ensure timely delivery of finished products. To balance inventory supply and demand,
OPM Material Planning examines pending inventory transactions, applies demand to
current inventory balances, suggests specific actions based on user-defined sourcing
rules, and projects inventory availability dates based on Unconstrained ASCP
recommendations. OPM Material Planning is more than typical MRP system planning
material. It will also provide the user a Rough Cut Capacity view of resource loading.
For CRP (Capacity Resource Planning) OPM uses Oracle ASCP in a constrained and
optimized plan.

Enables Benefits
• Access real-time information from sales, • Material and rough cut capacity planning
production and inventory to make quick • Enhanced co-product planning
and accurate decisions.
• Ability to perform on-line simulations
• Perform “what if” calculations to view and • Perform “what if” calculations to view the
react to the effects of unanticipated orders
effects of unanticipated orders
or shop floor problems such as resource
breakdowns and overloading. • Access real-time information from sales,
production, inventory
• Evaluate Firm Planned Orders before
implementing by checking ingredient and
resource loading availability then commit
FPO’s to production.
55
 Inventory Management
Inventory Management
With Inventory Management you can improve inventory visibility,
reduce inventory levels and control inventory operations. All of your
material in each line of business and stage of the inventory lifecycle
can be tracked in a single system. Increased transparency will
reduce the need for local buffer stocks, and inventory will be located
where it previously wasn’t known to exist.

Enables Benefits
• Multi-purposed single item, dual & multiple • Satisfy customer demand quickly and
UOM, auto lot allocation, grade control, accurately
divisible lot control • Reduce costs with efficient Inventory
• Dual UOM, shelf life management, grade Management
control, lot level status control, physical • Reduce risk with rapid lot genealogy
and cycle counting, APIs analysis
• Parent / child lot tracking and traceability
• Ensure Regulatory compliance
• Audit trail, strong security, ERES,
Inventory tied to Regulatory

56
 Inventory Management
Capture Location & Composition thoughout Lifecycle

Company ABC Company

Plant Manufacturing Location
Item Product
Inventory Org Inventory Location/Warehouse

Product Attributes Sub-inventory Area, Tank, Zone, etc.

 Shelf life Locator Row/Rack/Bin
 Retest interval
 Potency Parent Lot Traceable Quantity of Material/Heat
 Dual units of measure Child Lot Batch ID / Pallet #/Billet
 User-defined classifications
Lot Status Released, Hold, Quarantine
Grade Grade A,B,C w/in a Spec
Multi-Level • Improve Recall Responsiveness / Cost
Where Used / • Trace Materials Enterprise-Wide to Analyze Vendor Quality
Lot Source • Comply with International Regulations
57
 Single Source of Truth for Inventory Availability
Summary of Business Gains for Process Users

• Vendor-Managed and Consigned Inventory to reduce on-hand

inventory
• Improve picking and putaway process with Warehouse Management
• Leverage Mobile Supply Chain Applications to improve productivity
• Flexible account mapping with Subledger Architecture
• Real-time Lot Management Transactions
• Lot Merge
• Lot Split
• Lot Translate
• Flexible Attribute Definition
• Attribute Inheritance
• Advanced Unconstrained Advanced Supply Chain Planning replaces
Oracle Process Manufacturing MRP
• Subledger Architecture replaces Manufacturing Accounting Controller

58
 OPM Multiple Units of Measure

L0t 001
2 Case = 20 Ltr 20.0 Ltr

vs

Lot 001- A Lot 001- B

1 Case = 8 Ltr 1 Case = 12 Ltr 20.0 Ltr

• Package / Liquid / Solid contents can vary by containers

• Track onhand inventory in two units of measure simultaneously
• Formulate and Transact in any convertible UOM
• Unlimited types of UOMs associated with item (lb, cases, rolls, bags, trucks)
• May record different quantities for each lot (Each case, may have different amount
of Gallons
• Unlike other software, works with Purchasing, Order Management, and Costing
• Not a modification, inherent to entire application

59
 Automatic Lot Allocation

OPM selects ingredient lots based on FIFO or FEFO methods

Production batch

Creation FIFO
2/5/2008 2/1/2008 1/1/2008
Date

Lot A Lot C
Lot B

Expiration 3/5/2009 2/10/2009 2/15/2009

Date

FEFO
Additionally, for customer shipments: Shipment
• Preferred Grade
• Match on Quality Specification
• Remaining Shelf Life
60
 Inventory Management
Inventory Management
With Inventory Management you can improve inventory visibility,
reduce inventory levels and control inventory operations. All of your
material in each line of business and stage of the inventory lifecycle
can be tracked in a single system. Increased transparency will
reduce the need for local buffer stocks, and inventory will be located
where it previously wasn’t known to exist.

Enables Benefits
• Multi-purposed single item, dual & multiple • Satisfy customer demand quickly and
UOM, auto lot allocation, grade control, accurately
divisible lot control • Reduce costs with efficient Inventory
• Dual UOM, shelf life management, grade Management
control, lot level status control, physical • Reduce risk with rapid lot genealogy
and cycle counting, APIs analysis
• Parent / child lot tracking and traceability
• Ensure Regulatory compliance
• Audit trail, strong security, ERES,
Inventory tied to Regulatory

61
 Comprehensive Process MFG Solution
with MES
Comprehensive Process MFG Solution
Process Execution ensures manufacturing consistency throughout the production cycle by
providing tight control over ingredients and processes, balanced with the flexibility to
respond to changing plant conditions
MES for Process Manufactring
(MES) provides intensive, multifaceted shop floor execution capabilities. The application
allows process manufacturers to deploy Oracle Process Manufacturing directly on their
shop floors as the manufacturing execution system (MES) as well as use Touch Screen
based devices.. MES for Process manufacturing eliminates many unnecessary and non-
value-added activities by providing a structured and standards-based shop floor execution
toolset.

Enables Benefits
• Model complex process flows, rule based • Maximize production flexibility
recipes, scaling • Drive efficient, compliant shop floor
• Automated reservations and lot production
allocations, incremental backflush, • Streamline production and compliance
dispensing / pre-weigh, operators reporting
workbench
• Manage variability and product
• Operators workbench e-records and e-
consistency
signature, non-conformance
• Computer-aided formulation, least cost
formulation
62
 Production Scheduling in Process Industries

Schedule Schedule Operations Schedule

Complex Routings with Hard Links Charges
Yields co-product
OP 10
D to routing Y
Act 1 Act 2 Act 3 Act 4
60 80
Product A1 A2
Mixer
10 40 110 A OP 20
70 90 Act 1 Act 2 Act 3 Act 4
20 50
Product B1 B2 Packaging
100 120 B
30
Yields co-product
Standard Delay Max Delay Single activity, multiple charges
C to routing X

• Enable operations to run • Support minimum and maximum • Schedule a charge as a

simultaneously, feed one or more
operations, or be fed by one or
more operations
• Specify multiple starting operations
and multiple terminal operations for
routings
• Yield products at other operations
in addition to
the last one
time offsets between operations
• Apply minimum and and
maximum offsets to charges
• Respect shelf life of items
purchased from suppliers
• Respect on hand lot expiration
date when planning the use of
the lot
to meet demands
continuous process
• Apply operation dependencies
to charges
• Overlap operations by
incremental feeding to and
from chargeable resources

63
 Comprehensive Process Mfg Solution
Manage Production to Ensure Optimal Conditions

Ingredient 1 Ingredient 2

10 Weigh

Ingredient 4 Finish to Start Ingredient 5

Resource+Activity  E-Sign
Usage/Qty 40 Test
30 Blend 50 Package

Start to Start
Resource+Activity  E-Sign  E-Sign Resource+Activity  E-Sign
Usage/Qty Usage/Qty
20 Heat
By-Product 1 Product 1 Product 2

Resource+Activity  E-Sign
Usage/Qty

Ingredient 3
• Compare and report planned vs.
• Record process parameters work in process vs. actual
• Automatically calculate step quantities • Make iterative real-time adjustments
• Capture electronic signatures as required • In-process samples and tests
64
 Computer-Aided Formulation
Model Production Requirements to Target Specifications

Inventoried In-Process
Lot Properties QC Metrics

Computer-Aided Formulation
• Recalculate Material
and Yield Quantities
Target Product /
Product Recipe • Compute Batch
Characteristics (e.g., fat Customer Specs
content, potency, etc.)
• Automatically Revise
Lot Allocations

• Model & analyze impact of formulation change before producing expensive

and time consuming laboratory test batches
• Perform ‘what if’ new or revised formulations without interfering with
production
• Optimize using specify product target properties and allow software to
reformulate ingredients
65
MES for Process Manufacturing
Control Demand-Driven Mfg with Integrated
Shop Floor Execution

ERP
Process Engineer
• Manage recipes & advanced process
Corp Mgmt instructions

Production Supervisor
MES • Create & manage batch status
• Log non-conformances

Production Mgmt Dispensing / Prod Operator

• Pre-weigh designated ingredients
Shop Floor Control • Process batch operations

System Automation & Control

 Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management

 Reduced TCO / Complexity via Integrated Mfg Mgmt & Production Execution
66
Enforce Manufacturing Best Practices
New MES Product Guides Operator
through Operations

Corporate
Management ERP
OPM +
MES for
Process
Mfg Plant
Management MES

Process Process
Management Controls
67
 Model Actual Scenario of Shop Floor
Improve inventory visibility at each stage
of the Supply Chain
Production Dispensing Production

• Reservation supply
Materials Manager
Supervisor Operator Operator

Complete &
Close Batch to assure inventory
meets customer
Review Control
needs
• High level
Batch Record
Lock Operation,
Follow PI,

• Detail Level
Execute Tasks
Reverse
Consensus forecast Dispense
Log Ingredients

• Model plant areas

and
production plan Nonconformances

Move Ingredients
To Staging
so that stock is
Location

Review and
Schedule
Dispense
Ingredients with
readily available
FPO / Batch
Approve Schedule & Reserve
Materials
Detailed Reservations
• Dispensing Locations
• Staging Locations

68
 Supervisor Workbench
Graphical Dispense Planning View

Display Bucket
(Daily / weekly)

Dispense Planning
details at Area/booth,
Resource, Storage Area

Dispense Capacity
Plan Vs Actual

69
Dispensing Workbench
Improve Accuracy & Compliance While Reducing Risk
• Touch Screen enabled

• Improve accuracy by
removing human
interaction

• Generate Labels
• Enforce compliance
Multiple methods - Configurable level of
supported control on process
instructions enforce best
practices and regulatory
compliance

• Reduce complexity & risk

- Simplified task- based
operator interface
- Consolidate systems

Complete Process Support for Work Instruction Display, Dispensing,

Batch Progress Tracking, and Ingredient Consumption Reporting
70
Operator Workbench Provides Next Task
Forces Compliance with mandatory acknowledgment rules

Focus on the Operator

Links to SOPs Configurable acknowledgement:

• Optional • Touch Screen
• Required Acknowledgement enabled
• E-Signature(s)
• Process guides
operators through
everything to
complete their work
• Configurable level of
acknowledgement
One-Click Access to • All responses logged
Transactional Forms in Electronic Batch
Record
Online Process
Instructions

Complete Process Support for Work Instruction Display, Batch

Progress Tracking, and Ingredient Consumption Reporting
71
Operator Certification

Certification
Setup for
Override Status
Organization,
Transaction

Criteria for
Enabling
Operator
Certification

72
 Oracle MES for Process Mfg.
Additional Benefits

• Board Room to Shop Floor Visibility

• Process Repeatability
• Enforce Best Practice SOPs
• Reduce Labor - Remove a Level of Approvals
• Eliminate Massive Amounts of Paper
• Advanced Search Capability
• Eliminate Errors
• Lower Training Costs
• Lower Cost of Compliance

73
 Comprehensive Process MFG Solution
with MES
Comprehensive Process MFG Solution
Process Execution ensures manufacturing consistency throughout the production cycle by
providing tight control over ingredients and processes, balanced with the flexibility to
respond to changing plant conditions
MES for Process Manufactring
(MES) provides intensive, multifaceted shop floor execution capabilities. The application
allows process manufacturers to deploy Oracle Process Manufacturing directly on their
shop floors as the manufacturing execution system (MES) as well as use Touch Screen
based devices.. MES for Process manufacturing eliminates many unnecessary and non-
value-added activities by providing a structured and standards-based shop floor execution
toolset.

Enables Benefits
• Model complex process flows, rule based • Maximize production flexibility
recipes, scaling • Drive efficient, compliant shop floor
• Automated reservations and lot production
allocations, incremental backflush, • Streamline production and compliance
dispensing / pre-weigh, operators reporting
workbench
• Manage variability and product
• Operators workbench e-records and e-
consistency
signature, non-conformance
• Computer-aided formulation, least cost
formulation
74
 Electronic Batch Record/E-Signature
Electronic Batch Record/E-Signature
E-Records is a configurable framework for secure capture, storage, inquiry, and
printing of electronic records and electronic signatures (ERES) in compliance with
government regulations, such as the United States Food and Drug Administration (US
FDA) 21 CFR Part 11.
.

Enables Benefits
• Built-in Compliance • Reduced cost of compliance
• One-step e-signature with optional e- • Increased speed
record view • Improved collaboration
• Manages critical information related to • Enforced best practices
production orders, quality records, or other • Advanced search and analysis for audit
information key to conformance with FDA
Good Manufacturing Practices (cGMP), • Controlled document printing

75
Electronic Batch Record

Operation details,
including Process
Nonconformances Instructions and
Dispensing details
Operator Comments

76
Eliminate Massive Amounts of Paper
Completely replace paper batch records
with Electronic Batch Records

• Master Batch Record is comprised of all Recipe info

• Control Batch Record is the record of each batch
• Documents all events & data generated during a batch’s life cycle
• Materials, resources, steps, deviations, QC samples, labels, process
instructions, e-signatures,etc.
• As events occur, they are appended to the CBR
• PDF format, securely stored in the E-Records Evidence Store

77
 Electronic Batch Record/E-Signature
Electronic Batch Record/E-Signature
E-Records is a configurable framework for secure capture, storage, inquiry, and
printing of electronic records and electronic signatures (ERES) in compliance with
government regulations, such as the United States Food and Drug Administration (US
FDA) 21 CFR Part 11.
.

Enables Benefits
• Built-in Compliance • Reduced cost of compliance
• One-step e-signature with optional e- • Increased speed
record view • Improved collaboration
• Manages critical information related to • Enforced best practices
production orders, quality records, or other • Advanced search and analysis for audit
information key to conformance with FDA
Good Manufacturing Practices (cGMP), • Controlled document printing

78
 Quality-Oriented Process Management

Quality-Oriented Process Management

Process Manufacturing Quality Management empowers
Process companies to achieve product consistency, enforce proactive
quality assurance, streamline quality lab productivity, and assure
customer and regulatory compliance.

Enables Benefits
• Stability studies, lot expiration • Achieve product consistency
management, process control points, • Enforce proactive quality assurance
quality throughout the supply chain
• Streamline quality lab productivity
• Standardized inspection methodology,
workflow, e-records and e-signature • Assure customer and regulatory
compliance
• Automated test/lab assignment, quality
workbench
• Customer spec matching, CofA / CofC, lot
traceability

79
Quality-Oriented Process Management
Manage Variability and Assure Product Consistency

Inspection Points Attributes

• Receipt, WIP, shipping • Lot status (quarantine, available)
• Lot expiration/retest • Order allocation (based on specs)
• Environmental monitoring/testing • Material usage decisions
• Input APIs

Pre-defined Workflow-Driven Processes and Electronic Records

Standardize Sample Analyze Disposition Report

Global Standards Results Compliance

• Tests & methods • Mass results entry • Certificate of analysis
• Sampling plans • Composite result statistics or conformance
• Specifications (min/max, std dev, average) • Lot genealogy
• Stability studies
• Output APIs
Process • Adjust batches
Improvement • Change formulation or procedures

80
 Pre-Defined Quality Workflows
Check Quality Throughout the Supply Chain

Receiving Inventory Shipping

 

Suppliers Customers
 
Automatic Workflow Notifications
Production at Each Quality Check Point for:
• Sample Creation
• Assay Testing
 Quality check points • Sample Disposition Decision

81
 Nonconformance Management
Capture 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

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Specifications Management
Capture and Meet Unique Customer Specifications

Customer
Out-of-Spec In-Spec Out-of-Spec
Specification

Item
Specification
Match
Min Max

• Define internal and customer products specifications

• Match available inventory to customer specifications
• Provide Certificate of Analysis (COA) with each shipment

83
 Stability Studies
Measure the Effects of Environmental Aging

Base Monitoring
Specification
0 1 3 6 9 12 18 24 months

Overlay Monitoring
Specification (1)
0 1 23 6 months
Production Stability
Batch Samples
Overlay Monitoring
Specification (n)
Study Definition 0 12 months
• Sample Numbering
• Monitoring Specs
• Storage Conditions
• Storage Packaging Work Flow Notices
• Testing Intervals Lab Study Lab
Study Execution Technician Owner Supervisor
• Item Specs
• Ensure Timely Execution of All Data Points
• Assess Product Quality Over Time and Varying Environment
• Capture Recommended Shelf Life and Storage Condition
• Support Research and Development Activities
• Comply With FDA Guidelines in Regulated Industries

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
 Compliant Approval Authorization
Ensure Participation by All Stakeholders

• Mandatory Version Control

• Automated Approval Cycle
• Define Conditions for Recipe Component Use
• Route Approvals to Groups / Individuals

Formulator Requests
Version 2 Finished
Good ‘Approved for Lab Use’

Packaging
By-product Intermediate
item

Ingredient 5 Ingredient 2 Ingredient 3 Ingredient 4 Approved

85
 Quality-Oriented Process Management

Quality-Oriented Process Management

Process Manufacturing Quality Management empowers
Process companies to achieve product consistency, enforce proactive
quality assurance, streamline quality lab productivity, and assure
customer and regulatory compliance.

Enables Benefits
• Stability studies, lot expiration • Achieve product consistency
management, process control points, • Enforce proactive quality assurance
quality throughout the supply chain
• Streamline quality lab productivity
• Standardized inspection methodology,
workflow, e-records and e-signature • Assure customer and regulatory
compliance
• Automated test/lab assignment, quality
workbench
• Customer spec matching, CofA / CofC, lot
traceability

86
 Cost Management

Cost Management
Process Manufacturing (OPM) Costing combines detailed cost-tracking features with
flexible analytical tools to help process manufacturers determine their true product costs.
OPM Costing supports Standard, Actual and Lot costing types to calculate costs and
create reports to analyze data at the most granular level. Using Oracle Sub-ledger
Application, necessary accounting entries are created for all the transactions.

Enables Benefits
• Multiple cost methods: standard, actuals, • Optimize profits and margins
lot, composite • Capture precise product costs
• Co-products, by-products, unlimited cost • Facilitate proactive cost management
elements, cost allocations
• Assure proper accounting of resources &
• Cost monitoring, cost analysis materials
• Flexible account mapping, sub-ledger flow,
drilldowns

87
 Cost Management
Analyze and Control Product Costs

• Maintain multiple cost

methods simultaneously
• Measure direct and
Material Acquisition Overhead Resource Indirect indirect labor costs
• Capture resource and
utility costs
• Least Cost Formulation
• Include all material costs,
Actual Standard Lot Period (e.g. direct, contract)
• Evaluate / compare
costs by method
Cost Monitoring - Standard vs Actual
Allocation Valuation
Development & Analysis - Weighted Avg vs Budget
- Period vs Standard
- Standard vs Actual Lot
88
 Cost Management

Cost Management
Process Manufacturing (OPM) Costing combines detailed cost-tracking features with
flexible analytical tools to help process manufacturers determine their true product costs.
OPM Costing supports Standard, Actual and Lot costing types to calculate costs and
create reports to analyze data at the most granular level. Using Oracle Sub-ledger
Application, necessary accounting entries are created for all the transactions.

Enables Benefits
• Multiple cost methods: standard, actuals, • Optimize profits and margins
lot, composite • Capture precise product costs
• Co-products, by-products, unlimited cost • Facilitate proactive cost management
elements, cost allocations
• Assure proper accounting of resources &
• Cost monitoring, cost analysis materials
• Flexible account mapping, sub-ledger flow,
drilldowns

89
 Performance Analysis
Performance Analysis
Daily Business Intelligence (DBI) for Manufacturing offers manager enhanced visibility
into their manufacturing operation. It enables them to maximize manufacturing
performance by enabling them to identify potential issues earlier and gives them a tool
to address them before they escalate into real problems.

DBI for Manufacturing provides reliable information directly from mission-critical

business applications in a self-service fashion freeing executives from hard-to-use,
error-prone custom solutions. Using DBI for Manufacturing, managers have rich,
integrated and up to the day information to improve manufacturing execution and meet
strategic objectives.

Enables Benefits
• Reliable information directly from mission- • Make better faster business decisions
critical business applications • Improve manufacturing execution
• Manufacturing management, plan • Meet strategic objectives
management • Manage by exception
• Complete supply chain intelligence
offering with:
Customer fulfillment, shipping, inventory,
manufacturing, product cost, plan,
transportation and warehouse
management pages
• KPIs, graphs, charts, tables, drill downs
90
 Performance Analysis

Real-Time
Results
Daily Business Intelligence
Reports for Manufacturing
Performance
Measures Comprehensive
presentation of real time
Manufacturing Data in
form of graphs, reports, etc

Capability to view and

analyze costs related to
manufacturing

Manufacturing Plans
comparison, Resource
Utilization tracking
Graphs

Performance Analysis through Oracle’s Daily Business Intelligence

for Manufacturing & Supply Chain
91
Performance Analysis

• Manufacturing Management KPIs :

• Production To Plan
• Production Value
•On-Time Production
•Manufacturing Cost Variance
•Material Usage Variance
•Resource utilization
•Resource Variance
• Manufacturing new reports :
•On-Time Production
•Current Production Delayed

92
Performance Analysis

• Inventory Management KPIs :

• Inventory Value
•Annualized Inventory Turns
•Hit/Miss Accuracy
•Gross Adjustment Rate
•Exact Match

• Inventory new reports :

•Inventory Days on-Hand
•Current Inventory expiration Status
•Current Inventory Status

93
 Performance Analysis
Performance Analysis
Daily Business Intelligence (DBI) for Manufacturing offers manager enhanced visibility
into their manufacturing operation. It enables them to maximize manufacturing
performance by enabling them to identify potential issues earlier and gives them a tool
to address them before they escalate into real problems.

DBI for Manufacturing provides reliable information directly from mission-critical

business applications in a self-service fashion freeing executives from hard-to-use,
error-prone custom solutions. Using DBI for Manufacturing, managers have rich,
integrated and up to the day information to improve manufacturing execution and meet
strategic objectives.

Enables Benefits
• Reliable information directly from mission- • Make better faster business decisions
critical business applications • Improve manufacturing execution
• Manufacturing management, plan • Meet strategic objectives
management • Manage by exception
• Complete supply chain intelligence
offering with:
Customer fulfillment, shipping, inventory,
manufacturing, product cost, plan,
transportation and warehouse
management pages
• KPIs, graphs, charts, tables, drill downs
94
 Integrated Warehousing and Logistics

Carriers / Global
3PLs Customers

Portal / Collaboration
Messaging & Event Mgmt

Continuous Planning

Plan Select Receive Manage

• Inbound Loads / Modes & Book / &
Pick & Pack & Track & Audit / • Outbound
Moves Carriers Tender Putaway Whs Label Ship Trace Settle
• Supply • Demand
• Source • Destination
Continuous On-Time Customer Carrier
Improvement Performance Satisfaction Analysis

Supply Chain Order

Production
Procurement / Enterprise
Planning Management Financials Integration

95
 Multi-Level Material/Resource Traceability
Multi-Level Material/Resource Traceability
OPM Quality Management offers comprehensive lot genealogy capabilities to trace
materials from receipt through customer shipment. It provides an easily accessible,
online record that indicates when lots were sampled for quality inspection and were
used in production, moved, or shipped as end products—the information needed to
prove compliance with government regulations, ISO 9000 requirements, or your
own internal quality standards.

Enables Benefits
• Reduce risk with rapid lot genealogy • Better Customer Responsiveness
analysis • Parent / child lot tracking and traceability
• Lot Genealogy with Sampling History • End to End Tracking

96
 Multi-Level Material/Resource Traceability
Comply with Stringent Regulatory Requirements

Lot Source

Supplier Ingredients Resources / Intermediate or Finished Customers

Equipment Bulk Products Product

Where Used

• Improve Recall Responsiveness / Cost

• Comply with International Safety Regulations
• Trace Materials Enterprise-Wide to Analyze Vendor Quality

97
 Multi-Level Material/Resource Traceability
Multi-Level Material/Resource Traceability
OPM Quality Management offers comprehensive lot genealogy capabilities to trace
materials from receipt through customer shipment. It provides an easily accessible,
online record that indicates when lots were sampled for quality inspection and were
used in production, moved, or shipped as end products—the information needed to
prove compliance with government regulations, ISO 9000 requirements, or your
own internal quality standards.

Enables Benefits
• Reduce risk with rapid lot genealogy • Better Customer Responsiveness
analysis • Parent / child lot tracking and traceability
• Lot Genealogy with Sampling History • End to End Tracking

98
 Pre-Built Process Manufacturing Mobile
Transactions
• Mobile Create Reservations
• Mobile Update Reservations
• Mobile Issue Ingredients
• Mobile Return Ingredients
• Mobile Complete Product
• Mobile Return Products
• Mobile Create Pending Lot
• Mobile Update Pending Lot
• Mobile Backflush
• Mobile Product Completion by LPN
• Mobile Product Completion by LPN
with directed drop
• Mobile Product Completion By LPN
with load
• Mobile menu for Process Execution
LPN Product Completion
• Mobile Resource Usage
• Mobile Start Resource
• Mobile End Resource
• Mobile Release Step
• Mobile Complete Step
99
 Pre-Built Inventory Transactions
• Receiving Transactions (Receive
PO, RMA, In-transit Shipment,
Internal Requisition & Receive
any document)
• Quality Inspection
• Inventory Delivery
• Miscellaneous Inventory
Transactions (Receipt & Issue)
• Subinventory Transfer
• Inter-organization Transfer
• On hand balance inquiry
• Locator inquiry
• Cycle Count Entry
• Physical Inventory Count Entry
• Consume Consigned Inventory
• Pick Confirm (sales orders,
replenishments & move order
requisitions)
• Ship Confirm
• Replenish Kanban Cards
• Kanban Card Status Inquiry
• Replenishment Count Entry
• Label Reprint Request
10
0
 Manufacturing Operations Center
Manufacturing Operations Center
is a new solution built on a next generation Manufacturing Operations architecture,
leveraging the ISA-95 reference model. The solution the divide between relatively
stable world of business users relaying on ERP and back office applications and real-
time exception prone world of the manufacturing users relying on variety of shop floor
systems. Manufacturing Hub provides real-time visibility in to shop floor operations by
connecting to disparate data sources available on the shop floor including MES,
Quality, and Maintenance, LIMs, Historians as well as the automation and control layer.
The solution is also designed to orchestrate data flow between ERP and back office
applications and shop floor systems. Oracle Manufacturing Hub is the first solution in
the industry that provides out of the box operational analytics with flexibility and
configurability of a toolkit.
Enables Benefits
• Eliminate discrepancy between manual • Contextualize Plant Floor Data and
data and machine data Synchronize with ERP
• Perform preventive maintenance based • Provide Real-Time Intelligence for Plant
on machine “actuals” vs. “best guess” Operations
• Leverage Next Generation Manufacturing
• Achieve visibility for lean and six-sigma
Operations Architecture
programs
• Progressively eliminate on-hold and
other production issues
• Gain competitive edge by sharing quality
information with customers
10
1
Mfg Integration & Intelligence Opportunity

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

Source: AMR Research, 2003

10
2
Leverage Next-Generation Manufacturing
Operations Architecture

Next-Generation Architecture
• Built on a common abstraction layer
ERP of production / equipment data
Abstraction
Manufacturing Hub
• Leverage existing investments in plant
Layer
IT infrastructure – no rip & replace
Distributed Plant Systems
• Allows for gradual upgrade of plant
Automation & Control systems

“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

10
3
 Oracle Manufacturing Operations Center

Users
- MES Corporate BI
ERP - Quality
Systems - Cost Mgmt
… Cross-Plant
KPIs
Schedules Historical Plant Mgr /
Production Actuals Trends VP of Mfg
Item Master Data

Contextual-
ization Manufacturing
Engine Operations
Plant-Specific
Data Model KPIs
(ISA-95) Role-Based Production
Real-Time
Dashboards Updates Manager

Distributed Plant Systems Shop Floor Communication Drivers

Device-Generated Data The Foundation
for Continuous
Automation
Improvement in
& Process Manufacturing
Control PLC CNC DCS SCADA Advanced Human
Systems Machines Systems Process Machine
Operations
Control Interface

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 Single Repository for Mfg Operations Data
Provide Consistent Information for
All Manufacturing Users

Enterprise Level • Generic data model supports

- Products hierarchical structure for reporting
- Orders
- Plans / Schedules or building KPIs and metrics
Plant Level - Support for industry standards
- Work Orders such as S-95
- Batches
Granularity

- Mfg Routing - Out-of-the-box hierarchical dimensions:

Manufacturing time, product, and equipment
Equipment Level
- Availability Operations - Flexible and configurable
- Status Data Model
- Output • Open and extensible to meet the
- Quality requirements of different industries
- Parameters
Device Level - Capture process variables
- I/O Tags - Capture additional parameters for Item,
- Sensor ID Equipment, and Work Orders

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Role-Based Dashboards and KPIs
Deliver Performance Measures by Responsibility

VP of Operations
Plant Manager • Pre-built role-specific dashboards,
reports, and alerts
Are we achieving our cost
• Graphical views
and productivity targets?
- Trend charts - Red-yellow-green
- Graphs indicators
Production Manager - Tables
Production Supervisor • Embedded best-practice
calculations and KPIs
What is happening now?
What happened last shift? • Analytic workflows to drive actions
• Drill-downs into details for
root-cause analysis
Operator
QA Engineer • Leverages OBIEE+
How is the machine • Configurable and customizable
performing?

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

• Accelerate
Most standard deployment
KPIs available and adoption
out-of-the-box
• Easily adapt
dashboards
and metrics
• Provides a
comprehensive
Operational
Easily identify, select, modify, Intelligence
and format relevant KPIs framework

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 Deploy Based on Business Priorities
Generate Value Regardless of Implementation Scope

Manage
Line-by-Line or Work Plant-Wide Network of Plants
Center Performance and/or Contract Manufacturers

Build common manufacturing

operations architecture
Move from emphasis on local
Provide decision support for execution to global coordination
Value

executives and supervisors

Move emphasis to service
levels and on-time delivery
Identify opportunities for
streamlining operations
Focus on line and
machine performance

Local Global
Scope
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 Manufacturing Operations Center
Manufacturing Operations Center
is a new solution built on a next generation Manufacturing Operations architecture,
leveraging the ISA-95 reference model. The solution the divide between relatively
stable world of business users relaying on ERP and back office applications and real-
time exception prone world of the manufacturing users relying on variety of shop floor
systems. Manufacturing Hub provides real-time visibility in to shop floor operations by
connecting to disparate data sources available on the shop floor including MES,
Quality, and Maintenance, LIMs, Historians as well as the automation and control layer.
The solution is also designed to orchestrate data flow between ERP and back office
applications and shop floor systems. Oracle Manufacturing Hub is the first solution in
the industry that provides out of the box operational analytics with flexibility and
configurability of a toolkit.
Enables Benefits
• Eliminate discrepancy between manual • Contextualize Plant Floor Data and
data and machine data Synchronize with ERP
• Perform preventive maintenance based • Provide Real-Time Intelligence for Plant
on machine “actuals” vs. “best guess” Operations
• Leverage Next Generation Manufacturing
• Achieve visibility for lean and six-sigma
Operations Architecture
programs
• Progressively eliminate on-hold and
other production issues
• Gain competitive edge by sharing quality
information with customers
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 API Interfaces
API Interfaces
Oracle® Process Manufacturing (OPM) has the unique functionality that process
manufacturers need to run their businesses efficiently and effectively. However, sometimes
integration with other application software may be desired to extend and complement Oracle
Process Manufacturing’s capabilities, while still fully benefiting from its robust data model. To
address these requirements, Oracle Process Manufacturing offers application programming
interfaces (APIs) to enable easier integration legacy systems, in-house developed
applications, and third party software.

Enables Benefits

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Standard Process Manufacturing APIs
Integrate Plant Devices and Legacy Systems

Recipe Development Costing

• Formula • Item Cost
• Insert Ingredients, (By)Products • Resource Cost
• Formula Usage Rules • Allocation Definition
• Resource • Burden Details
• Routing
• Operation Inventory
• Activity • Create Item
• Create Lot
• Create Item/Lot UOM Conversion
• Create, Adjust, or Move Inventory
Production / POC • Change Lot Status or QC Grade
• Start Resource Usage • Lot Split, Merge, Translate
• End Resource Usage
• Close Batch Quality
• Cancel Batch • Tests
• Release, Certify, and Close Step • Specifications
• Post Resource Transaction • Samples
• Incremental Resource Transaction • Sample Labels
• Timed Resource Transaction • Results

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Improve Accuracy
Capture data instead of typing it in

• Device Integration
• Provide standard integration points
• Weigh scales - Direct input during dispensing process
• Process equipment - Capture readings, such as temp, pressure,
speed
• Mobile Support
• Ingredient Issue
• Return Ingredient
• Return Product
• Create Product Lot
• Update Product Lot
• Backflush
• Update Resource
• LPN Transactions

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 API Interfaces
API Interfaces
Oracle® Process Manufacturing (OPM) has the unique functionality that process
manufacturers need to run their businesses efficiently and effectively. However, sometimes
integration with other application software may be desired to extend and complement Oracle
Process Manufacturing’s capabilities, while still fully benefiting from its robust data model. To
address these requirements, Oracle Process Manufacturing offers application programming
interfaces (APIs) to enable easier integration legacy systems, in-house developed
applications, and third party software.

Enables Benefits

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For More Information

http://search.oracle.com
Process Manufacturing

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 Additional Resources

• Vivian Lewis – AGSS – SCM Solution Specialist

Vivian.Lewis@oracle.com
Mobile 972-672-0254
• Andrew Hyers – AGSS – SCM Solution Specialist
Andrew.hyers@oracle.com
Mobile 502-836-1465
• David Ballin – AGSS – SCM Solution Architect
David.ballin@oracle.com
Mobile 201-218-3245

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 Course Agenda

• Welcome & Introductions

<Insert Picture Here>
• Process Manufacturing Drivers, Concepts, &
Overview
• Inventory for Process
• Process Quality
• Product Development
• Product Execution with MES
• Process Costing and DBI
• Process functions in other SCM applications
• Wrap up and Course Evaluation

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