NCOAUG

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Orion Consulting, Inc.
Known for our expertise. Guided by our values of
Integrity, Innovation, Exceptional Achievement,
and Reliability.
I2 Technologies Integration with Oracle
Applications
NCOAUG August 27, 2001
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Orion Consulting
Orion Consulting, a division of SSI, provides
strategic, process, and technology consulting
services across all business disciplines. With
U.S. offices in Minneapolis, Atlanta, and
Chicago, we partner with many top software
vendors including Oracle and i2 Technologies.
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Advanced Planning Scheduling Systems

• Advanced Planning Scheduling (APS) systems are
  decision support systems which are designed to
  assist managers in selecting and evaluating
  courses of action by providing a logical, usually
  quantitative, analysis of the relevant factors
  for a given scenario.
• APS solutions employ the following technology
• Heuristic Based Algorithms
• Linear Program Solvers
• Mixed-Integer Program Solvers
• Non-linear Program Solvers
• Genetic Algorithms
• Optimization

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Advanced Planning Scheduling Systems
The graphic below depicts the typical breadth of
an APS solution. The boxes within the matrix
represent the general scope of each module.
Planning Horizon
Demand Planning
Demand
Order Promising
Allocation Planning
Master Planning
Enterprise Rationalization
Supply
Processes
Order Planning
Fulfill
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Advanced Planning Scheduling Systems

• Some of the leading APS software providers are
• I2 Technologies
• JD Edwards Active Supply Chain (formerly
  Numetrix)
• Manugistics
• Logility
• Oracle Advanced Supply Chain Planning
• SAP APO

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How does APS differ from ERP?
A Difference of Approach
Example Manufacturing Build Plan (What to Make
Where When)
ERP Solutions
APS Solutions
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A Difference of Activity and Audience
How does APS differ from ERP?
ERP Solutions
APS Solutions

• Transactions
• Order Entry
• Invoicing
• Production Work Orders
• Posting Production
• Receiving Goods
• General Ledger Accounting
• Financial Analysis

• User Groups
• Customer Service Reps
• Production Supervisors
• Purchasing Agents
• Laborers
• Accounting
• Finance

• Decision Support
• Strategic Network Design
• Forecasting
• Resource Planning
• Finite Scheduling
• Transportation Planning
• Material Planning

• User Groups
• Business Analysts
• Sales Marketing
• Production Planners
• Logistics Managers
• Procurement Planners

• Reporting

• Everyone

• Reporting

• Everyone

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Benefits of APS
Some examples of the types of decisions that APS
systems help with are

• Where is the best place to make a product for a
  specific customer, taking into account capacity,
  costs of manufacturing, customer service level
  requirements, and transportation costs and lead
  times?
• When is the best time to pre-build inventory for
  seasonal products taking into consideration costs
  of carrying inventory, maximum storage
  constraints and spoilage or obsolescence factors?
• How should I sequence products to minimize
  changeovers and inventory?
• How should I design my transportation network to
  meet customer service levels while minimizing
  costs and considering operating constraints?

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Benefits of APS
I changed this slide to make the words larger -
easier to read for audience
The Return on Investment of APS systems is
significant
Inventory Reduction
Working Capital Reduction
Improved Fleet Utilization
Increased Capacity Utilization
Asset Performance ROA Improvement
Customer Service Level
Revenue Growth
Integrated with Customers
Operating Income
Proactive Customer Management
Direct and Indirect Labor Cost Decrease
Cost Reductions
Lower Transportation and Distribution Costs
Overhead Cost Reduction
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The i2 Solution Overview

• Supply Chain Management (SCM)increases supply
  chain velocity through better planning and
  execution across partners
• Customer Relationship Management (CRM) optimizes
  marketing, sales, fulfillment, and service
  processes across all demand channels
• Supplier Relationship Management (SRM) optimizes
  sourcing, design and procurement processes in
  collaboration with suppliers
• Contentcomplete content management and
  publishing capabilities for products and
  suppliers in all industries, as well as custom
  database development for enterprises and
  e-marketplaces
• i2 TradeMatrix Platformthe foundation that
  integrates i2 and other industry-leading
  solutions, enabling collaborative
  business-to-business commerce

Source i2 Technologies
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I2 Supply Chain Management

• I2 has over 100 separate modules. However, many
  are similar in function, customized to a specific
  industry or depth in a functional area.

Source i2 Technologies
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I2 Supply Chain Management

• The APS functions of the i2 Supply Chain
  Management (SCM) solution offer functionality
  that may overlap with portions of the standard
  Oracle Manufacturing modules.
• For example, the typical manufacturing
  information flow of standard Oracle mfg modules
  is depicted below

WIP
Demand (OM)
Financials
Supply (PO)
Inventory
Forecasting
Prod. Orders
MRP
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I2 Supply Chain Management - FP

• and the same information flow using one of the
  primary i2 modules, Factory Planner (FP), would
  enhance the cycle in several ways.

WIP
Demand (OM)
Financials
Supply (PO)
Inventory
Forecasting
Prod. Orders
MRP
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I2 Supply Chain Management - FP
MRP - MRPII are sequential solutions
Master Planning
as an isolated problem separate from the other
elements in the plan. Each module is then
linked in a time consuming, iterative process.
MRP is modularized and sequential.
Planners address each element of the plan
Rough Cut Capacity
Material Planning
Capacity Requirements
Detailed Scheduling
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i2 FP is a simultaneous solution
I2 Supply Chain Management - FP
Master Planning
Rough Cut Capacity
Material Planning
Capacity Requirements
Detailed Sequencing

• Pegs demand to supply while considering material
  and capacity constraints.
• employs a management technique that
  simultaneously anticipates and accounts for
  multiple and changing constraints in a Factory
  Setting. (Theory of Constraints)
• Rapidly explodes MRP
• depends on Random Access Memory (RAM) to quickly
  resolve problems.

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I2 Supply Chain Management - FP

• Factory Planner (FP) is a set of tools for
• Master production planning
• Master production scheduling
• Material requirement planning
• Dynamic finite scheduling
• FP enables rapid what-if analysis and not only
  identifies problems, but can be used to
  automatically solve them or to help users
  interactively solve them.
• FP does not store data, it uses it to recommend a
  feasible plan.

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I2 Supply Chain Management - FP
Uses data from existing systems
Factory Planner
SAP
Legacy
Oracle Financials, OM, Purch, Transactional
Manufacuting
Database
Hardware
Hardware
Hardware
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I2 Supply Chain Management - FP
Factory Planner uses static and dynamic
transactional data to provide intelligent
recommendations.
Internal Processing
Input Data Source
Output Data
Input Data

• Develop feasible operating plan for plant,
  multiple plants, departments, production lines,
  or work centers
• Create detailed constraint based production
  schedule
• Re-adjust prior plans / schedules based on
  changes in demand or supply variables
• Simultaneously manage dynamic material and
  capacity constraints

• New mfgr. orders
• Suggested procurements
• Procurement expedites
• Sub-contract plan

• Purchase orders
• Manufacturing orders
• Inventory balances
• Demand data
• Bill of materials and routings

Oracle, SAP, Legacy
Oracle, SAP, Legacy

• Manufacturing run strategy
• Bottleneck resource

• Planning horizon and frequency
• Scheduling horizon and frequency

• Procurement guidelines
• Plan freeze horizon

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FP Integration
The data from host systems must be mapped to
the format and content required by Factory
Planner. A variety of technological options can
be employed to transfer data to and from host and
FP systems using this translation definition. A
simplified example of this mapping is represented
below for the bill of material flat file.
Example Data Map
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FP Integration

• Mapping definitions such as the one illustrated
  in the previous slide, must be created for each
  record required by FP. The minimum seven records
  required by FP and the corresponding Oracle
  modules containing this data are listed below.
  FP can use more than 100 records, each having an
  average of 10 individual data fields.
• Bill of Material Data BOM module tables
• Supply data PO module tables
• Demand data OM module tables
• Routing information BOM module tables
• Resource information BOM module tables
• Part number data Inventory module tables
• Inventory quantity on-hand Inventory module
  tables

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FP Integration ROI for Oracle

• I2 Tradematrix Rapid Optimized Integration for
  Oracle
• Event driven
• Standard adaptors to Oracle v10.7 to latest
  generally available v11x
• I2 commits to support future Oracle releases
  within 6 months of general availability
• Also has standard interfaces with SAP R/3
• - technical architecture - push, pull, closed
  loop
• - Benefits of using it - i2 support, upgrades

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FP Integration ROI for Oracle

• Three components to the technical architecture
• Extract
• Does not need to use any existing Oracle outbound
  interfaces.
• Can be triggered by Oracle ERP or from ROI for
  Oracle.
• Oracle ROI initiates Pulls of data from Oracle
  ERP.
• Synchronous call to the Extraction Interface
  procedures installed on the Oracle database
  server of the Oracle ERP. Pulled from the
  backend tables/fields.
• Oracle ERP initiates Pushes to i2 (FP)
• ROI ADP Active Data Publisher- allows user to
  enable Oracle database events that are triggered
  by the changes to master and transactional
  events. Can be real-time or batch.

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FP Integration ROI for Oracle

• Upload i2 (FP) output back to Oracle ERP
• Uses Oracle Open Interfaces for close looping.
  Updates Purchase Requisitions, Purchase Orders,
  Operation Schedules, Sales Orders, Internal
  Requisitions/ Stock Transport, Master Production
  Schedules, Forecasts, and Production Orders.

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FP Integration ROI for Oracle
ORA_i2_BILL_V This view describes the standard
bills. It is based on the BOM_BILL_OF_MATERIALS
and gives all the standard bills header data.
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FP Integration ROI for Oracle
Bills of Material Entities Bom
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I2 Integration to Oracle Real Life Examples
Real life Examples Pending client approval
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Conclusion

• - Data accuracy is key regardless of integration
• To have APS be a competitive advantage, a company
  must implement fast, at lower cost, be able to
  maintain and support the live system, and be able
  to keep up with the ever improving technology.
• - Oracle Advance Supply Chain Planning Suite is a
  new APS option. Learn more at the Fall2001 OAUG!