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Doug SouzaVice President – Process Manufacturing DevelopmentHolger MuellerVice President – AGSS / SAP BattledeskDavid BallinAGSS Solution Architect – SCM, Process Manufacturing

OPM Differentiators over SAP

Summary of OPM R12 Features

• Common Inventory• Dual unit of measure control • Advanced lot control• Material status• Enhanced inventory allocation

rules• Migration Scripts• Views for historical data

• Process Product Development• S88 Compliant Org Structure• Item Revisions• Least Cost Formulation • Ingredient Substitutions

• Regulatory Integration to Third Parties

• Process Quality• Enhanced receiving inspections• Corrective action request and

processing

• Process Execution• Item Revisions• Reservations • Move orders• More MSCA transactions

• Process Operations• Batch Journal• Dispensing and Pre-weigh• Label Management• Deviation Management• Improved UI/ Processing instructions

Order Management Procurement ASCP

OPM Recipe / Quality

OPM

Costing

OPM

Production

BOM /QualityCostingWIP

OPM

Inventory

DiscreteInventory

Advanced Inventory Management for Process Industries

Order Management Procurement ASCP

OPM Recipe / Quality

OPM

Costing

OPM

Production

Oracle Inventory

BOM /QualityCostingWIP

• Single Inventory Model• Org specific attributes• Process features include:

• Flexible balance tracking in two units of measure

• Grade• Expiration/ Maturation Dates• Material Status• Enhanced inventory

allocation rules• Indivisible lots• Support for “child lots”

(replace “sublots” in OPM)• Process Manufacturing flags

New Features for Process

• Central item master• Organization specific item attributes• Leverage Product Data Hub (PDH) Additional License

• Improved Physical and Cycle Counting methods• Vendor-Managed and Consigned Inventory• Warehouse Management Additional License

• Mobile Supply Chain Applications Additional License

• Labor Management• Additional Lot Management Transactions via MSCA

• Lot Merge• Lot Split• Lot Translate• Flexible Attribute Definition / Attribute Inheritance

• Leverage move orders and reservations in Batches

Plant to Enterprise Strategy

OPM + MES for Process

Process Instructions & SOPs, Dispensing, Nonconformance Mgmt.,

Electronic MBR and CBR, Mobile, Labeling, Device Integration

OPM

MES for Process

Devices

Electronic batch records, process-centric, low-med shop floor

automation, standardization and data visibility across plants

Oracle Edge Server

OPM + integration other MES

APIs and Web Services enable integration based on

S95

OPM

MES

Devices

Electronic batch records, decentralized plants, highly automated, accept costs of maintenance of interfaces

Web Services

3rd Party Integration

OPM

Existing Process Manufacturing Suite

OPM

Paper batch records, material-centric, minimal automation and manual

data entry

Pharma Plant to Enterprise (P2E) Transparency

ERP

MES

Process

Controls

Corporate Management

Plant Management

Process Management

Oracle Process Operations (R12)Operator-Centric User Interface

SOP IntegrationDispensing & Pre-Weigh

More Comprehensive E-Batch RecordsNonconformance Management

Shop Floor Equipment IntegrationLabeling

More Mobile Transactions

Oracle Process Operations (R12)Operator-Centric User Interface

SOP IntegrationDispensing & Pre-Weigh

More Comprehensive E-Batch RecordsNonconformance Management

Shop Floor Equipment IntegrationLabeling

More Mobile Transactions

MES is a Success

• "Oracle’s E-Business Suite (EBS) Release 12 MES functionality for process and discrete manufacturers has been a poorly kept secret. Oracle MES is a tangible reflection of the company putting its investments where customers want them and enhancing the products they already own.The addition of deep MES focuses the spotlight on Oracle’s Applications Unlimited strategy, rather than the intangible benefits of a new generation of Fusion technologies. Nevertheless Oracle EBS customers are already seeing some of the early benefits of Fusion in a new HTML user interface and embedded analytics in Oracle MES."

• "While it’s too early to declare this yet-to-be-released product an unqualified overnight success, there was more than enough highly configurable role- and site-based Release 12 Oracle MES functionality on display  at OpenWorld 2006 to worry pure-play MES independent software vendors (ISVs)—particularly those offering transactional, paper-on-glass MES products, or application frameworks." 

AMR – Colin Masson – Oct 2006

Oracle in S95

Oracle Fusion Middleware

OPMCreate Batch

MES

Complete Batch

Pro

duct

ion

Sch

edule

B2M

ML

Bat

ch In

form

atio

n -

Mat

eria

l &

Res

ourc

e

Req

uirem

ents

Oracle Enterprise Service Bus

BAMAdaptersB2B BPEL PMSecurity

RoutingTransformationMessaging

Oracle Enterprise Service Bus

BAMAdaptersB2B BPEL PMSecurity

RoutingRoutingTransformationTransformationMessagingMessaging

ISA95 Solution Components For Oracle

• Catalog of service events (Web Services)• Batch Services on top of existing public APIs

(Create/Complete batch, Material/Resource consumption)• ISA95 Services (B2MML messages such as Production

Schedule etc)

• Orchestrate by Fusion Middleware Components• Cookbook / Implementation guide

Is Process Manufacturing lost to SAP?

• No way!• Through a workshop with a German SMB we

confirmed many of our so far ‘suspected’ differentiators

• They spend close to 1.5M to customize SAP to provide the following functionalities

• Not to mention that they did not need to purchase and implement a - formula management system (Selerant / Devex)- shop floor management system (Wonderware)

OPM Key Differentiators

Oracle Functionality … drives Business Benefits

Real-Time Batch Adjustments Efficiency at Plant Floor Level

Formula Simulation and Optimization Superior Quality Management

Lot/Sublot Capabilities Effective Control of Inventory

First Expired First Out (FEFO) Allocation Higher Customer Satisfaction

Least Cost Formulation Optimize Profit

Simultaneous Multiple Units of Measure User Productivity (internal)Customer Intimacy (externally)

Multiple Costing Methods Optimize Pricing and Total Cost Transparency

Specification Matching for Customer Shipments

Superior quality

Electronic Records/Electronic Signatures Internal Efficiency and Compliance

MES for Process Manufacturing Automation of Manufacturing

Oracle -Handling Unplanned Variability during Production

-Interactive scheduling via Process Manufacturing Scheduler Workbench

SAP -SAP needs to stop running batch, correct it and release batch again

Difference -Record process parameters, automatically calculate step quantities, capture electronic signatures as required, compare and report

planned vs. work in process vs. actual, make iterative real-time adjustments, in- progress samples and tests

-Drag and drop manual rescheduling – batches and operations, resource load versus capacity graph, Gantt chart, firming of batches, sequence

dependent setups, Intelligent selection of alternate resources, Priority- based scheduling of batches

Benefit with Oracle -Batch corrections can be made to meet target characteristics, and production schedule can be re-optimized

-Product quality can be continuously ensured – in each stage of the production process

Efficiency at Plant Floor LevelThrough Real-Time Batch Adjustments

• Record process parameters

• Automatically calculate step quantities

• Capture electronic signatures as required

• Compare and report planned vs.work in process vs. actual

• Make iterative real-time adjustments

• In-process samples and tests

40 Test

10 Weigh

30 Blend 50 Package

20 Heat

E-Sign Resource+ActivityUsage/Qty

Resource+ActivityUsage/Qty

Resource+ActivityUsage/Qty

Resource+ActivityUsage/Qty

E-Sign

E-Sign E-Sign E-Sign

Start to Start

Finish to Start

Ingredient 1 Ingredient 2

Ingredient 4 Ingredient 5

Ingredient 3

Product 2By-Product 1 Product 1

Efficiency at Plant Floor LevelThrough Real-Time Batch Adjustments

Oracle -Formula Simulation and Optimization

SAP -SAP does not have the formula and optimization capabilities as Oracle have; therefore 3rd Party Tools need to implemented and specially

integrated for Formula Copy towards Production System

Difference -Ability to Simulate, predict and make changes down to batch level

Benefit with Oracle -Computer-aided formulation based on technical and cost parameters may be run prior to and concurrently with production. Results can be used to Rebalance formulation of Batch in Real-Time environment.

-Integrated System in this area allows error-free and Enterprise wide Change Order Management System, because no Interfaces are

there. In addition to this Impacts of Formula-Changes can be evaluated before Change is implemented. Optimized Change Order Date regarding

Costs and other criteria can be specified.

Superior Quality ManagementThrough Formula Simulation and Optimization

Drilldown to view all properties for the selected record

Drilldown to view all properties for the selected record

Use only the selected record for calculating the product rollup values.

Use only the selected record for calculating the product rollup values.

Data Source easily accessibleData Source easily accessible

• Recalculate Materialand Yield Quantities

• Compute Batch Characteristics (e.g. fat content, potency, etc.)

• Automatically Revise Lot Allocations

Computer-Aided Formulation

Superior Quality ManagementThrough Formula Simulation and Optimization

Oracle -Lot/Sublot Capabilities

SAP -SAP does not have the Lot/Sublot Capabilities

Difference -Ability to track inventory at a granular level with defined quality attributes to the Sublot level.

-The Lot can define the Sublots and its Attributes

-Sublots can carry Inventory Status

-Flows through Lot Genealogy

Benefit with Oracle -Allows the splitting of Lots into Sublots and to have Quality attributes associated to the Lot/Sublot.

-Ability to Maintain Inventory at the Lot/Sub Lot Level

-Allow to Reduction of recall liability

-Better and more flexible usage of your inventory -Better and more flexible usage of your warehouse

Effective Control of InventoryThrough Lot/Sublot Capabilities

Multi-Level Where Used /

Lot Source

Multi-Level Where Used /

Lot Source

Product Attributes Shelf life Retest interval Potency Dual units of measure User-defined classifications

Plant

Item

Warehouse

Location

Lot

Sublot

Grade

Company ABC Company

Manufacturing Location

Product

Inventory Location

Batch ID / Pallet #

Traceable Quantity of Material

Area, Tank, Zone, etc.

Grade A,B,C w/in a Spec

• Improve Recall Responsiveness / Cost

• Trace Materials Enterprise-Wide to Analyze Vendor Quality

• Comply with International Regulations

Status Released, Hold, Quarantine

Effective Control of InventoryThrough Lot/Sublot Capabilities

Variable Lot Attributes

– Customers can update lot specific unit of measure conversions to account for various business scenarios

• Potency, aging, evaporation, reformulation, etc.

• Entry of quality results which determine lot UOM conversion

• Correct lot UOM conversion data entry errors

OPM Lot/Sublot Characteristic Information Creation Date

• Retest Date• Expiration Date• Action Date• Action Code• Grade• User Defined Fields• Unlimited Text• Auto Lot Numbering

Effective Control of InventoryThrough Lot/Sublot Capabilities

Oracle -First Expired First Out (FEFO) method of Allocation. The ATP check goes down to Lot / Sublot level and across all Operating Units

SAP -SAP does not support First Expired First Out (FEFO) method of Allocation down to Lot / Sublot level and across Operating Units

Difference -With Oracle the User can allocate or reserve inventory for Shipment for specific shelf life dates. Some Customers needs to be done by Expiry Notification within certain date tolerance.

Benefit with Oracle -Within Oracle you Reserve Inventory at shipment, based on specific FEFO allocations by Customer!-Higher customer satisfaction guaranteeing customer requested expiration dates

-Avoid returns and higher shipping costs due to wrong shipments-Empower the order agent to do what is right for the customer

Higher Customer SatisfactionThrough First Expired First Out (FEFO) Allocation

Oracle Process Manufacturing selects ingredient lots based on FIFO or FEFO methods

2/1/20032/1/20032/5/20032/5/2003Creation Date

1/1/20031/1/2003FIFO

2/15/20032/15/20033/5/20033/5/2003

Lot ALot A Lot CLot CLot BLot B

Expiration Date

Production batchProduction batch

ShipmentShipment

2/10/20032/10/2003

FEFOAdditionally, for customer shipments:• Preferred Grade• Match on Quality Specification• Remaining Shelf Life

Higher Customer SatisfactionThrough First Expired First Out (FEFO) Allocation

Oracle -Least Cost or Maximum Cost Formulation

SAP -SAP has to customize to have a Maximum Cost Formulation Capability

Difference -Minimizes / Maximizes formula cost, utilizes on-hand inventory, plans production, plans procurement, enforces product specifications

-please see next slide for illustrating that point in more detail

Benefit with Oracle -Allows Minimization or Maximization of Manufacturing Cost to be adhered based on rules applied to Formulation

-For shipments outside the EU using maximum costs formulation will allow optimizing of tax payments

Optimize ProfitThrough Least Cost Formulation

Potential Ingredients

(Sub) Lots 100 – 150

Least Cost FormulaItem Weight Cost Silicon---------------------------------------------------- SOLID SOW-3 825.07 0.3080 2.7500CRUSHED CASTINGS 329.31 0.3100 9.5000CLIPPED ALLOY 4.38 0.3200 0.6000COPPER HARDENER 36.22 0.3800 0.0000NICKEL HARDENER 5.03 2.0600 0.0000GATES & SPRUES 800.00 0.4800 12.0000----------------------------------------------------Gross: 2000.01 LB 765.73466 7.49997025

GeneratesNutrients

Quality

Regulatory

Chemical

Product Specification

Composition

•Minimizes/Maximizes formula cost

• Utilizes on-hand inventory

• Plans production

• Plans procurement

• Enforces product specifications

An annual 2% - 10% savings of the total value optimized can

be achieved by implementing LCF.

Optimize ProfitThrough Least Cost Formulation

Oracle -Simultaneous Dual Units of Measure

SAP -SAP does not support the use of Dual Units of Measure for items

Difference -Package / liquid / Solid contents can vary by containers, track on hand inventory in two units of measure simultaneously, formulate and transact in any convertible UOM, unlimited types of UOM´s associated with item (lb, kg, cases, rolls, bags, trucks). May record different quantities for

each lot (Each case, may have different amount of Gallon.

-Not a modification, inherent to entire application, made for Process Industry

Benefit with Oracle -Ability to track inventory in multiple units of measure, fixed quantities and variable quantities

-supplier delivers in bags, visibility total number of bags and quantity, visibility at order management time price, better visibility,

better control of inventory

- Higher Productivity of internal users as they can work in the UoM they want

- Know more about the customer and store their preffered UoM

User Productivity (internal)Customer Intimacy (externally)Through Simultaneous Multiple Units of Measure

• 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 UOM´s associated with item (lb, kg, 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

L0t 0012 Case = 20 Ltr 20.0 Ltr

vs

Lot 001- A1 Case = 8 Ltr

Lot 001- B1 Case = 12 Ltr 20.0 Ltr

User Productivity (internal)Customer Intimacy (externally)Through Simultaneous Multiple Units of Measure

Oracle -Multiple Costing Methods Maintained for Items

SAP -SAP can only show one costing method

Difference -Ability to understand Costs from Multiple Perspectives

Benefit with Oracle -Multiple Costing Records can be tracked simultaneously by the System: Standard, Weighted Average, Actual, Actual Lot, etc.

-Measure direct and indirect labor costs

-Capture resource and utility costs

-include all material costs (e.g. direct, contract)

IndirectAcquisition Overhead ResourceMaterial

ActualActual StandardStandard PeriodPeriodLotLot

CostDevelopment

Monitoring& Analysis

Allocation Valuation

IndirectAcquisition Overhead ResourceMaterial

ActualActual StandardStandard PeriodPeriodLotLot

CostDevelopment

Monitoring& Analysis

Allocation Valuation

Optimize Pricing and Total Cost Transparency Through Multiple Costing Methods

Allows for Multiple Cost Methods

to be Viewed Simultaneous

Optimize Pricing and Total Cost Transparency Through Multiple Costing Methods

Oracle -Specifications Matching

SAP -SAP does not have Specifications Matching on quality attribute measurements within given customer specific tolerances

Difference -Ensure Quality conformance to Customer Requirement prior to Shipment

Benefit with Oracle -Capture and Meet Unique Customer Specifications for Production & Shipping

-Match on specific inventory at lot/sublot level,

-Ship to meet customer specific needs, which will result in less Returns

Superior Quality Through Specification Matching for Customer Shipments

• Define internal and customer products specifications

• Match available inventory to customer specifications

• Provide Certificate of Analysis (COA) with each shipment

CustomerSpecification

ItemSpecification

Min Max

Match

In-Spec Out-of-SpecOut-of-Spec

Superior Quality Through Specification Matching for Customer Shipments

Oracle -Batch Records/Electronic Signatures are Standard features of the EBS

and working in conjunction with Oracle Workflow

SAP -SAP E-Signature is a third party application that is not part of that standard package

Difference -Inline Navigation and inherent to EBS

Benefit with Oracle -Ability to Capture Electronic Signature with in Standard Workflow

Internal Efficiency and Compliance Through Electronic Batch Record / E-Signature

1. Submit transaction

2. List of Signers

4. Authentication 3. View e-record

details

Internal Efficiency and Compliance Through Electronic Batch Record / E-Signature

Oracle -Manufacturing Execution System (MES) Operations for Process Manufacturing

SAP -SAP does not have weighing and dispensing functions within their manufacturing execution system that integrates to their MES

Difference -Integration to plant floor within Application

-Instruction Driven Workbench for Operator Tasks with defined SOP’s

Benefit with Oracle -Support for Work Instruction Display, Dispensing, Batch Progress Tracking, and Ingredient Consumption Reporting

-Oracle offers many of the required MES Functions, at least the ones could considered through Oracle and not a 3rd Party System,

-Lower Costs for error-prone integration.

Automation of Manufacturing Through MES for Process Manufacturing

Complete Process Support for Work Instruction Display, Batch Progress Tracking, and Ingredient Consumption Reporting

Focus on the Operator

• Process guides move operators through work instruction view, progress reporting, and material consumption tracking

• Configurable level of acknowledgement

• All responses logged in Electronic Batch Record

Links to SOPs

Online Process Instructions

Automation of Manufacturing Through MES for Process Manufacturing

Complete Process Support for Work Instruction Display, Dispensing, Batch Progress Tracking, and Ingredient Consumption Reporting

Supporting Deep Manufacturing Operations Management

• Process guides move operators through work instruction view, progress reporting, and material consumption tracking

• Quality data collection and lot data capture for genealogy

• Integration to process equipment

Automation of Manufacturing Through MES for Process Manufacturing

Flujo de Desarrollo de Productos