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FUJITSU CONSULTING 1
Fujitsu Consulting Oracle Practice Presentation By: Ravi Kadu
CTO Solution
FUJITSU CONSULTING 2
Agenda n CTO n Business Pressures n Operational Challenges n Process Flow
n Define n Plan n Procure & Manufacture n Manage Configurations
n Case for ATO/CTO Review n Phases in CTO Implementation n Application View n Q&A
FUJITSU CONSULTING 3
CTO- Definition
Configure-to-Order (CTO) represents the ability for a user to define the component make-up (configuration) of a product at the very moment of ordering that product, and a vendor to subsequently build that configuration dynamically upon receipt of the order
FUJITSU CONSULTING
Business Pressures
Customer Focus • How do I accommodate constantly
shifting customer expectations? • How can I improve service of
configured products to build lasting customer relationships?
Excess/Obsolete Inventory • How can I improve forecasting
and planning for options? • What strategies can I deploy to
optimize inventory of both production and spare parts?
Personalized Offerings • How can I provide complete
solutions via configurable goods and services?
• What is the best way to manage high volumes of unique orders?
Cost of Goods Sold • How can I reduce the number
of order exceptions requiring manual intervention?
• How do I create a flexible production environment?
Configure and Order
Procure and Manufacture
Service and Maintain
FUJITSU CONSULTING 5
Operational Challenges
Sales Configuration
Planning and Manufacturing
Configuration Rule Authoring
Install Base Service
• Poor demand visibility to custom orders
• Excessive order errors
• Complex supply and outsourcing processes
• Manual ordering processes
• Out of date product information
• Inability to promise accurate delivery dates
• Complex CTO* modeling tools
• Proliferation of ordering options
• Rampant engineering changes
• Incomplete installed base records
• Slow service responsiveness
Fragmented Data, Complex System Integration, Outdated Information
*Configure-to-Order
FUJITSU CONSULTING 6
Complete CTO-to-Service Flow
= Order = Manufacturing = Maint. & Service
Forecast & Plan
D e s i g n
Configuration (Product and Pricing)
Opportunity Definition
Available to Promise
Schematics and Drawing Generation
Configured Quote
Automatic Order Creation
Match
Automatic Config Item, Bill & Routing Creation
Automatic Supply Order Creation
Flow Schedule
Manufacture & Reserve
Pick and Ship
Needs Assessment
Populate Installed Base
Update Sales and Service Contracts
Customer Initiates Service Request
Assign Field Tech
Initiate RMA
Define Service Rqmt And Dispatch Work
Repair & Debrief
Receive & Repair
PO Work Order
Int Req
R12 New Feature
FUJITSU CONSULTING
Œ Define Configurations to Capture Customer Requirements
� Plan for Complex Configurations
� Procure and Manufacture to Demand
� Manage Configurations for Installed Base Service
Enables you to…
Oracle CTO-to-Service Solution
FUJITSU CONSULTING 8
BOM Model
Pre-Configured New Item “A”
Available for Order
Pre-Configured New Item “B”
Available for Order
Config “A”
Config “B”
Common Configuration
Model
Updated Sales Catalog
• Derive new product from existing designs
• Add commonly requested configurations to standard catalog
• Forecast and stock common configurations
• Enter orders for stock configuration, or match based on models and options chosen
Extend Offering Pre-Define Items for Frequently Used Configurations
FUJITSU CONSULTING
Configurator Driven Guided-Selling Guide the Customer to the Best Solution
Valid follow-on questions and default selections from previous choices
Rules link Guided Selling questions
to product options
Questions and flow
tailorable to buying
audience
Intuitive UI hides complexity
FUJITSU CONSULTING
Global Order Promising Accurately Promise Orders During Order Capture
Promise Orders Based On: - Material / component availability - Manufacturing capacity - Supplier capacity - Option specific sourcing definition - Transportation capacity
Drive Fulfillment Decisions Based on Demand and Supply Plans
- Promise based on optimal supply decisions - Promise based on global availability
Allocate Available Supply & Capacity - By channel, customer, or product - Priority and stealing rules
Make Commitments to Key Customers - Re-schedule / -sequence your backlog
FUJITSU CONSULTING
Œ Define Configurations to Capture Customer Requirements
� Plan for Complex Configurations
� Procure and Manufacture to Demand
� Manage Configurations for Installed Base Service
Enables you to…
Oracle CTO-to-Service Solution
FUJITSU CONSULTING 12
• Global ATP for ATO models & ATO items • Match during ATP and pre-configuration
forecast consumption
Enter SO for model & options
(ATP/CTP)
Create configuration
Order or build configurations and options
SO history
Forecast PTO/ATO models & specific
configurations
Explode forecast to options
Demand Planning
Consume forecast
Plan configurations
and options
Adv SC Planning
Ship to customer
Global Order Promising
Supply Chain Planning ERP
Schedule orders Match, schedule,
or un-schedule
Release orders
Solve Problems Involved in Complex, CTO Environments
FUJITSU CONSULTING
Multi-Tier Sourcing Accommodate Complex, Supply Options
Sub- Model
Sub- Model
ATO Model
ATO Model
Customers
Distributors
OEM Suppliers
Sub- Model
ATO Model
Plan Multiple Sources for an Assemble-to-
Order (ATO) Model at Any Level of the BOM
Structure
FUJITSU CONSULTING 14
Agenda n CTO n Business Pressures n Operational Challenges n Process Flow
n Define n Plan n Procure & Manufacture n Manage Configurations
n Case for ATO/CTO Review n Phases in CTO Implementation
FUJITSU CONSULTING
Œ Define Configurations to Capture Customer Requirements
� Plan for Complex Configurations
� Procure and Manufacture to Demand
� Manage Configurations for Installed Base Service
Enables you to…
Oracle CTO-to-Service Solution
FUJITSU CONSULTING
Closed-Loop CTO Production Enable Efficient Mass Customization
Select Mfg Source
In-House?
Outsource? Drop Ship?
Auto Create Mfg. BOM &
Routing Plan &
Schedule Production & Assembly
Quote, Capture & Validate Unique Configuration
Global ATP & Pricing
Web Direct
Retail & Dist
Availability, Price
Order Status, Shipping Status
Invoice
Component Inventory
Production Plan
• Seamless flow of information from order capture through production & assembly • Real-time WIP status and visibility provided to customer
FUJITSU CONSULTING 17
Integrate Configuration with Supply Chain Automatically Create Order-Specific Production Details
Option Dependant Purchasing
Option Dependant Routings
Multi-Level BOMs Customer
Configured Order
Master Configuration “Allowable Configuration”
Option 2
Model
Option 1 Option 3 Option 4
Option Class Option Class
FUJITSU CONSULTING
Flow Mfg for Configure-to-Order
Build a Mix of Models and Configurations
on the Same Line
Sequenced Demand
Customers
Sequenced POs
Inventory
Bin 1 Bin 2
Oper 10
Feeder Plant Feeder Line
Synchronized Production
Bin 1 Bin 2
Oper 20
Bin 1 Bin 2
Oper 30
Bin 1 Bin 2
Oper 40
Kanban Replenishment
Suppliers
Final Assembly Line
Production Lines
Support Lean Manufacturing Practices to Reduce Cycle Time and Waste
FUJITSU CONSULTING 19
Supplier Collaboration Provide Supplier Access to Configured Order Items
Suppliers have access to configuration details, component level attachments, and supplier
part numbers, etc.
FUJITSU CONSULTING
Œ Define Configurations to Capture Customer Requirements
� Plan for Complex Configurations
� Procure and Manufacture to Demand
� Manage Configurations for Installed Base Service
Enables you to…
Oracle CTO-to-Service Solution
FUJITSU CONSULTING 21
Know Installed Base Configurations Capture Information From Inception to Retirement
Plan, Market, & Sell
Manufacture
Service & Maintain
Design & Develop
“As Built”
“As Designed”
“As Maintained”
“As Sold”
• Convert configured product information as products evolve through lifecycle
- Create Sales BOM from Engr. BOM and use for guided-selling via online configurator
- Associate installed base failures with original product designs for root-cause analysis
- Track product designs through EOL
• Manage complex, multi-dimensional data (item types, location, platform, etc.)
Service BOM
Mfg BOM
Sales BOM
Engr BOM
FUJITSU CONSULTING
Oracle CTO-to-Service Solution
Intuitive configurator for model management and guided selling, integrated global ATP
Holistic supply chain planning with inventory optimization and global supply / demand visibility
Integrated mixed-mode manufacturing including flow, project, and outsourcing
BOM lifecycle management with preventive maintenance and in-house / on-site repair
Define Configurations to Capture
Customer Requirements
Plan for Complex Configurations
Procure and Manufacture to Demand
Manage Configurations for Installed Base Service
FUJITSU CONSULTING 23
Case for ATO/CTO Review Demand Fulfillment
n Improve “Manufacturing Replenishment Lead Time “ n Move to customer configurable product n Response to Customer order needs improvement n Modular configured pricing n Need to reach more customers
Planning n Forecasting accuracy n Complex Global Planning n Global Order promising
Cost n Global Mfg & Local Configuration n Reduce Obsolescence n Multiple BOM’s n Number of Orders Requiring Technical inputs
FUJITSU CONSULTING 24
Phases in CTO Solution Implementation PHASE Scope Duration ASSESMENT • Analyze Business Process
• Validate if ATO/CTO introduction will improve Process Capability • Check Organizations - Baseline. • SMART measurement Matrices • Prototype ATO/CTO to a small Product Segment
8 to 16 Weeks
DESIGN • Prototype ATO/CTO to a small Product Segment. • Solution Design to Build Capability • Target & Competency
3 to 6 Months
Deployment • Plan for Deployment • Test Solution • User Acceptance/Training
2 to 4 Months
ROLLOUT • Monitor & Correct • Measure against Design
Phased Approach with a Gap of 3 Months.
FUJITSU CONSULTING 25
CTO-Oracle Application View