Title: Overview on i2 Five.Two SCM Solution Suite
1Overview on i2 Five.Two SCM Solution Suite
- Hyun-Woong Jin
- Global Customer Solution Management
- i2 Technologies
2Agenda
- Introduction on i2
- Dynamic Value Chain Management
- SCM Solution Suite
- Implementation Methodology
- Case Study
3i2 Mission
- 75 billion of value for the customers by 2005
- Based on Value creation
- The only company that assesses and monitors the
values for the customers - 29.9 billion of value as of 2001
4i2 is the Undisputed Market Leader in SCM
Once again, i2 Technologies is the only vendor
in the Leaders Quadrant.
- i2 maintains its position by exhibiting
unrivaled vision and delivering deep planning
solutions tailored to vertical industry
requirements
Gartner Group Research 2001
5Industry Leaders are i2 Customers Over 80 of
Fortune Top 1000 Companies are i2 Customers
Automotive 9 out of top 10 GM Ford Daimler-
Chrysler Toyota Volkswagen Renault Mitsubuishi Fia
t Honda BMW Hyundai Motors
Chemical 6 out of best 10 du Pont Dow
Chemical Monsanto Oxychem Union
Carbide Sherwin-Williams GE plastic Eastman Rohm
Haas Polimeri
Computer 10 out of top 10 Dell IBM - PSG HP
Apple Compaq NEC Acer Gateway
Micron Toshiba
Semiconductor 15 out of top 16 Intel Samsung
Elec. Texas Instruments Motorola
Toshiba Philips Micron Hynix Advanced Micro-
Devices Amkor Fujitsu IBM National
Semi NEC On Semi STM
Metal 6 out of top 6 Nippon Steel POSCO British
Steel US Steel LTV Timken Steel
Data Networking 5 out of top 5 Cisco Nortel
3COM Nokia Lucent
Yellow i2 Customer
6i2 Korea
- Started on Feb. 1997
- Organization 50 Employees Pre-Sales / Sales /
Localization / Consulting / GCSM - Korean Customers
Area Year Company Solutions
SCM 1997 SEC SemiConductor SCP, DP, DF, FP, RL
SCM 1998 Anam Semi. MANDO SKC LG Elec. PC Div. FP FP, RL FP FP, RL
SCM 1999 SEC Display Div/ SEC AMLCD POSCO SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL, PO, TO, TM, PP
SCM 2000 SEC Home Appliance Div. LG Elec. Display Div. LG IC HMC SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL SCP, FP, ADW, RL SCP, FP, Sequencer
SCM 2001 Hankook Tire Hynix Dongbu Steel LG Elec. DigitalAppliance FP DF, SCP, FP, ADW, RL FP, RL FP, RL
eBiz 2000 / 2001 / 2002 eNtoB Autoever.com LG Elec. SEC Private Marketplace CRM Private Marketplace SRM Private Marketplace SRM Private Marketplace SRM
7Agenda
- Introduction on i2
- Dynamic Value Chain Management
- SCM Solution Suite
- Implementation Methodology
- Case Study
8Introducing Dynamic Value Chain Management (DVCM)
- It is business philosophy
- Like Total Quality Management was back in 80s
- The main goal is to allow business partners to
better collaborate with each other to eliminate
the inefficiencies not only within the companies
but also between their boundaries to achieve
mutual benefits - It embodies workflows, methodology and enabling
technology (software) to help value chains better
compete in the marketplace - In the end, it is value chains that compete
against each other in the marketplace.
9Velocity the Key WeaponAgainst Variability
- How well you fight variability depends on the
speed and quality of the following cycle
Speed and quality depend on your internal
n
capability and the cooperation of your customers
and suppliers
10DVCM Basics
- DVCM monitoring characteristics
- The ability differentiate important from
unimportant - Track variability within your company and outside
your company - Focus on tracking the appropriate variables.
- Forecast and Predictive monitoring.
- DVCM Decision Making Characteristics
- Integrated decision support at the strategic,
tactical and execution level - Decision making response at the speed of business
- Constraint driven, multidirectional
planning/scheduling - Iterative multi participant planning, supporting
what-if scenarios - Event Based Planning to enable realistic
commitment - DVCM Execution Characteristics
- Enable multi company transaction/state management
- Enable embedded decision-making within an
execution workflow - Enable alerts to facilitate monitoring of
execution to close the DVCM cycle
11Dynamic Value Chain Management Funnel
12ERP vs DVCM
- ERP
- Single division only
- No multi Company processing
- Very slow processing
- Can not scale
- Not open
- Antiquated processes
- DVCM
- Total Company
- Total Value chain
- Realtime processing
- Highly scalable
- Service architecture
- 100 pull system
13Dynamic Value Chain ManagementThe Solution
14Different ways to go to market with i2 Five.Two
solutions
i2 SCM
i2 CRM
i2 SRM
Solution suites
i2 Collaborative Supply Management
i2 Service Management
i2 Transportation, Distribution Logistics
i2 Collaborative Demand Management
i2 Factory Planning Scheduling
Solutions
- Factory Planning
- Scheduling
- Allocation Planning
- Master Planning
- Supply Collab.
- Profit Opt.
- Forecast Collab.
- Promotions Collab.
- Merchanidise Planning
- Forecasting
- Category Price Opt.
- Markdown Opt.
Business process workflows
Products Supply Collaboration Supply Chain
Planner Merchandise Allocator Replenishment
Planner Demand Fulfillment Inventory Visibility
and Execution Scenario Analyzer
15Agenda
- Introduction on i2
- Dynamic Value Chain Management
- SCM Solution Suite
- Implementation Methodology
- Case Study
16Some Trends in Supply Chain Management
Yesterdays Critical Success Factors
Todays Critical Success Factors
- Pull environment
- Power with Consumers
- Collaborative Planning
- Event driven planning
- Hybrid supply chains
- Made-to-stock, Made-to-order, Configure-to-order
- True understanding of demand shaping factors such
as pricing, promotions, and product lifecycle - Collaborative Inventory Management over value
chain - VMI, Channel inventories
- Competing supply chains
- Push environment
- Power with Manufacturers
- Enterprise-centric planning
- Fixed time period planning
- Made-to-stock supply chains
- Buffer inventory to safeguard against demand
variability - Inventory managed within enterprise or pushed to
suppliers - Competing companies
17ERP vs SCM
- ERP is a tool providing Backward Visibility by
automating Account based Transaction. - APS
is a tool providing Forward Visibility by
optimizing the utilization of the resources in
Supply Chain to maximize the customer
satisfaction.
Advanced Planning System
Enterprise Resource Planning
- Planning and optimization
- Generating historical reports
- Optimal execution with velocity
- Answers What should we do?
- Designed for internal company use
- Enables multi-enterprise eCommerce
18Production/Material Planning Process
Only ERP
ERP SCM
BOM
Inventory
Inventory
Routing, Resource
Optimizing Engine
MRP
BOM
Material Plan
Material Plan
Production Plan
Routing, Resource
CRP
ERP
Production Plan
MRP
SCM
19Planning Algorithm
- SCM
- Concurrent Planning (Optimization)
- Simultaneous material and capacity
- Processing
- Bi-directional
- Time phased Yield, Cycle Time, Capacity, routing
- Hard and Soft constraints
- Global ATP(Policy based)
- Memory resident
- ERP-Planning
- Sequential Planning (MRP II)
- MPS MRP CRP MPS
- Material ? Capacity ? Material
- Processing
- Uni-directional
- Fixed Yield, Cycle Time, Capacity, routing
- Soft constraints
- Local ATP
- DB work
20SCM Enabler APS
- APS(Advanced Planning System) is used to find the
optimal solutions given competing
constraints...
- Return on assets
- Profitability
- Customer service
- Fixed assets
- Capacities
- Inventories
- Lead times
- Labor
- Government requirements
- Supplier capabilities
- Process variability
- Labor productivity
- Overtime
- Premium Freight
- Sales incentives
- Rebates
- Production volume
- Production mix
21APS is Based on Some Simple Concepts...
- Synchronous manufacturing and the theory of
constraints - simultaneous consideration of constraints
(material, capacity, demand, labor, setup, etc.) - coordinated material release and synchronized
schedules at each point in the process - Advanced warning of problems
- Extensive what-if analysis for dealing with
process disruptions (i.e. downtime, absenteeism,
late material deliveries, demand mix and volume
volatility) - Interactive problem solving and optimization
- Marrying the knowledge of the human planner with
the speed of the system - Automatic problem solving and optimization
- leverage existing legacy systems
- Speed
- Sequential Planning ? Concurrent Planning
22What is APS (Advanced Planning System)?
APS involves the effective anticipation market
demand, the optimal positioning of enterprise
resources to meet demand, and the efficient
fulfillment of demand as it is realized.
23SCM Solution Footprint
Forecast and Manage the accurate and reliable
market demand
Make an optimized Supply plan against the given
demand (Product,Material,Capa, Logistics..)
Demand Forecasting
DP
Allocation and Order Promising based on customer
classification
Forecast
Supply Allocation
Forecast Netting
NettedForecast
Allocation Planning
Operational Planning
DF
DF
Order Promising
SCP
FP
FP
Supply Plan/Allocations
DF
Latest Available To Promise
Supply Plan
Order Planning
Production and material replenishment plan per
each line/facility
Order Creation
New Orders, Promise Information
Frozen Plan
SCP
FP
FP
24Demand Planning
- Objective
- Develop an accurate, reliable view of market
demand based on the understanding how products
are organized and how they are sold
- Characteristics
- Providing the global visibility.
- Multi-Dimension view
- Multi-Hierarchy view
- Collaboration to make the consensus.
- Statistical Estimation or Simulation
- Pick Best
- Tracking Forecast adjustment
- Benefit
- Improved forecasting accuracy based on consensus.
- Reduction of the inventory
25Master Planning
- Objective
- Generate an optimal supply plan (Global Capacity
Plan, Product Mix, Material Plan, MPS, Logistics
Plan) that helps the enterprise to position its
resources to meet the forecasted demand generated
by demand planning process
- Characteristics
- Planning Validity and Optimality
- including production, distribution,
transportation, procurement. - Planning Velocity
- memory resident architecture to execute the
planning calculation - iterative What-if simulation
- considering diverse objective (facility
utilization, inventory, order promising, etc.)
- Benefit
- Improved Profitability
- Improved Facility Efficiency
- Reduced WIP
26Demand Fulfillment
- Objective
- Provide fast, accurate, and reliable delivery
date response to customer orders, and to manage
this activity in a profitable way.
- Characteristics
- Dynamic Order Fulfillment
- promise on a dynamic, real-time supply plan
- Various Model for Customer/Product Allocation
- customer/product based allocation to manage the
order in a profitable way - Forecast Netting
- prioritizing demands for the optimal allocation
- Benefit
- Improved Order Promising Capability
- Improved Customer Service
27Production Planning / Scheduling
- Objective
- Provide PCT for each order and the detailed
schedule for each facilities by considering all
the constraints on facilities, tools, materials.
- Characteristics
- Generating a plan considering multiple
constraints. - Facility Capacity, Tool, Order Priority,
Alternate Material, Batch, etc. - Scheduling
- Issuing Work Order
- Daily, Shift, Facility
- Considering Setup time
- Sequence dependent setup time
- What-if Simulation
- Benefit
- Improved Facility Efficiency
- Prompt response on Changed Order
- Reduced Cycle time
- Reduced WIP
28Average Quantified Benefits Range of SCM
(Industry General)
29Agenda
- Introduction on i2
- Dynamic Value Chain Management
- SCM Solution Suite
- Implementation Methodology
- Case Study
30New innovation methodology
- Tinkering Approach
- Transforming Approach
To-Be Process Design
Visioning
Solution Package Selection
Project Implementation
Process Consulting Firms Involvement
Solution Providers Involvement
To-Be Process Design
Visioning
Project Implementation
Solution Package Selection
Process Consulting Firms Involvement
Solution/Concept Providers Involvement
31i2 Implementation MethodologyTMPM (Trade Matrix
Project Methodology)
- Establish implementation strategy through Value
Assessment (VA) or Strategic Opportunity
Assessment (SOA) - Presents As-Is analysis and implementation road
map - Presents implementation benefit analysis (by
specific value) - Phase implementation strategy by Business Release
Methodology - Break down implementation project into manageable
phases which are called Business Release (BR)
36 months - Each BR defines clear Business Target (ex
inventory reduction) - Rapid implementation strategy which focuses on
realization of specific business value-return - Use of Template
- Provides industry specific SCM solution template
- Best Practice, Test Plan, Data, and Documents
- Reduces implementation period
Business Release Activities
VA / SOA
Mobilize
Design
Develop
Accept
Go Live
SIA
Less than 6 Months
32i2s Approach to Integration
- Through its 9000 customer implementations, i2
has built a good understanding of various aspects
associated with integration. - i2 has come up with a framework that integrates
not only i2 internal systems such as SCM, CRM and
SRM but also external systems such as ERP and
Legacy systems. - Integration needs to be flexible and should allow
- Specification of the workflow steps to follow
- Configuration at each stage in the workflow based
on specific business needs - Integration needs to be extensible
- Objective is not only to deliver fully integrated
solutions of i2 products covering SCM, CRM and
SRM, but also to provide a solution to integrate
seamlessly with other packaged applications and
legacy infrastructure - The goal is to adopt an integration approach and
architecture for integrating diverse systems that
will become an integration advantage to customers
33Common Integration Services
- CIS Framework is an i2 abstraction on top of many
underlying integration platforms (such as
webMethods, Informatica) - It is a set of services enabling enterprise
applications to participate in integrated
environment - List of services communication, logging,
monitoring, data transformation, workflow design
runtime, single sign-on, etc. - Complete integration framework to interact with
any i2 product or 3rd party system. - It is specifying common meta-data format used to
simplify TMAPI based collaboration.
34i2 Integration Architecture
Role based Common User Interface
OMx
IMx
ERP Sub-system (SAP)
Legacy Sub-system (OS390)
Design Source Sub-system SRM
Customer Management Sub-system CRM
Planning Sub-system SCM
Transactional Platform
Explore
ODS
Work flow
ETL-Bulk Data Transfer (back) Bus
Enterprise Messaging (front) Bus
Common Integration Services
Firewall
Public Internet
Exchanges
Hosted Services Content FreightMatrix
TMOCN
Trading Partners
35Agenda
- Introduction on i2
- Dynamic Value Chain Management
- SCM Solution Suite
- Implementation Methodology
- Case Study