A Journey from Unconstrained to Constrained:

1
A Journey from Unconstrained to Constrained

• Implementing Manufacturing Scheduling and ASCP

2
At a Glance

• Global leader providing mission critical time and
  frequency solutions
• Headquartered in San Jose, CA.
• Offices throughout the US, as well as the United
  Kingdom, Germany and Malaysia
• Manufacturing in SF Bay Area, Massachusetts and
  Puerto Rico
• FY05 revenue 181M
• 800 employees

3
Markets We Serve
Wireless Networks
4
A Sampling of Customers
Telecom
Government
Enterprise
5
Oracle Environment

• Hosted by Oracle On Demand
• E-Business Suite 11.5.10 CU1
• Dell Servers running Red Hat Linux
• Live since June 2001

6
Oracle Modules

• Manufacturing
• INV
• WIP (Discrete)
• ENG
• BOM
• MRP
• Order Mgmt/CRM
• OM
• TeleService
• Contracts
• Miscellaneous
• HR
• ICM

• Financials
• AR
• AP
• GL
• Projects
• FA
• TimeLabor
• iExpense
• Procurement
• PO
• iSupplier
• iProcurement

7
Project Madison

• Overall Project Goal
• Project Madison will implement three distinct yet
  interdependent modules of Oracle Manufacturing
  Scheduling, Advanced Supply Chain Planning and
  Global Order Promising
• Primary Project Goal
• Provide accurate Ship Dates to our customers
  quickly

8
Project Madison

• Initial Rollout in our Aguadilla, PR facility
• Includes about 80 of production
• Focus on ASCP and Manufacturing Scheduling First
• Fine tune GOP once ASCP and MS are stable
• Use Internal Resources Primarily
• Gain a deep understanding of products and
  processes
• Less Expensive
• Longer Project Timeline

9
Selling It
Operations Challenges
10
Project Challenges

• Dirty Data
• PO WO Dates not Maintained
• Sales Order Ship Dates not Maintained
• Short Orders Left Open (PO and WO)
• Inaccurate Lead Times
• Scrap not Scrapped
• Systems and Application Issues
• Team Resources
• Change Management

11
Keys to Capacity Planning

• Accurate Routings
• Accurate Capacity for Machines and People

12
Routing Update

• Existing Routings Primarily Supported Costing
• Only contained Human Resources
• Used Transit resource to simulate extended
  machine time
• Resources and Departments used legacy nomenclature

Sample Routing Here
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Routing Update

• Rules of Engagement
• Dont Change Standard Costs
• Dont Interrupt WIP
• Complex Process Steps to Model
• Test Operations
• Operator Attended and Autonomous Processes
• Shared Resources
• Batchable Resources
• Variable Process Times

14
Routing Update

• Example

Test Fixture Example Here
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Routing Update

• gt1000 Routings to Update
• Map Old Depts and Resources to New Depts and
  Resources
• Insert Appropriate Machine Resources
• Evaluate Scheduling Sequence for Depts with
  People and Machines
• Prioritization
• Items Averaging gt 1 Job per Month
• Items with Planned Orders

16
Routing Update

• Keeping Things Simple
• All Updates Made on Spreadsheets

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Routing Update

• More Simplicity
• Use Standard Interface Tables and Processes
• Insert Statements Created Using MS Word Mail
  Merge Functionality

  -- to add new resources insert into
bom_op_resources_interface (RESOURCE_SEQ_NUM,ASSIG
NED_UNITS,USAGE_RATE_OR_AMOUNT ,SCHEDULE_FLAG,OPER
ATION_SEQ_NUM,ORGANIZATION_CODE ,ASSEMBLY_ITEM_NUM
BER,RESOURCE_CODE,SCHEDULE_SEQ_NUM ,basis_type,EFF
ECTIVITY_DATE,PROCESS_FLAG,TRANSACTION_TYPE ) valu
es (10 ,1 ,0.001 ,1 -- need 1 or 2 ,
50 ,PRT' ,TT-T654/RB/GPS' ,'STORE' ,NULL , 1 --
basis_type ,to_date('07-SEP-2005','DD-MON-YYYY')1
/24/60 ,1 -- process_flag ,'CREATE' )
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Production Cutover

• Challenges
• Lots of Work in Process
• Reporting
• Scheduling Process During Transition
• The Plan
• Leave WIP Alone (for now)
• Ensure All New Jobs have Updates Routings
• Tweak Capacity to Create WIP Resistance
• After X Weeks Update any Open Jobs with Old
  Routings

19
Open Issues

• Production Control Reorg??
• Currently Personnel Segregated by Product Family
• Maintaining Capacity
• Fine Tuning
• Mfg Sched Time Fence vs. ASCP Time Fence
• Use of Penalties
• Capacity/Usage/Assigned Units

20
Lessons Learned

• Separate Project for Routing Update
• Allow Time for WIP to Fill with Updated Routings
• Emphasize Clean and Well Maintained Data
• Expect and Allow Changes to Standard Costs

21
What We Did Right

• Used Mostly Internal Resources
• Completely Revamped Routings
• Started in Largest Plant

22
Questions?
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Questions??
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