copyright © sierra atlantic, inc. material contained within this document is confidential and may...

Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent.

Optimize Disposition Costs and Reduce cost of Product changes in your PLM

Satya RavadaGovinda Krishnan

January 21, 2009

Copyright © Sierra Atlantic, Inc. Material contained within this document is confidential and may not be reproduced without prior written consent.

Agenda

Problem Definition Introducing ECO Lens - Goals and

Business Value ECO Lens Technical Overview Demo –Screen Shots ECOLens - Accolades Q&A

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Problem Definition

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The Problem Defined

ECOs created and released in PLM system ECOs implemented in ERP system Disconnect between Engineering and

Manufacturing

Create Change Order

Submit to Change Analyst

Route to CCB

Route to CCB

Route to CCB

ApproveRelease

Change OrderImplement

Change OrderImpact on BOM

ManufacturingAgile PLM

Impact on Demand

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Challenges of ECO Implementation

Lack of Visibility into impact of ECOs on manufacturing Cost of Material Disposition (Scrap, Rework etc) Supplier liability / cancellation costs

Collaboration challenges Distributed manufacturing across multiple sites Outsourced manufacturing with various subcontractors

Material Disposition Challenges Coordinating material disposition Benchmarking, analysis and optimization

Impact of ECOs Downward spike in demand of items Inventory may be hedged to high levels Open orders need to be cancelled Quantities at subcontractors need to be disposed

Demand

Impact of ECOs

On-hand + On order

Qua

ntit

y

Demand

ECO Implementation

Demand

Use-up

Excess

ECO Implementation

Use-up

Excess

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On-hand + On order

Qua

ntit

y

ECO Implementation

Use-up

Excess

Impact of ECOs

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Introducing ECOLens – Goals and Business Values

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Goals

Minimize excess inventory & obsolescence cost Reduce ECO implementation cycle time Identify and mitigate risks associated with ECOs

and product transitions Facilitate faster analysis and effective decisions

by CCB

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ECO Lens

Assess ECOImpact

Create ECOImplementation

Scenarios

DetermineEffectivity

Date

ResolveConflicts

Generate Transition Plan

ECO Information

Inventory DataWIP DataPO DataMRP Data from ASCP/ MRP planning

Effectivity dateMaterial DispositionTransition Plan

1

2

Create ECO

SubmitTo Analyst

CCB

CCB

CCB

ApproveRelease

ECO

Agile Product Collaboration

Implement ECO

Adjust Mfg Plans

ERP

31

Business Process with ECO Lens

Extract and make ECOs available for analysis Focus on specific ECO Lines (Affected Items)

Filter out ECOs with a specific Reason Code Filter out ECO Lines with a specific lifecycle phase such as

Prototype Filter out ECO lines releasing new items

Extract ERP Data Specific Item Attributes such as Standard Cost, Planner, Buyer etc. Inventory Data such as “On Hand” by Site/Warehouse Purchasing Data such as Open POs, PO details WIP Data such as open work orders MRP Data such as Planned Orders, Gross requirements etc. Where-used data

Business Process with ECO Lens

Monitoring by ECO Lens

ECO updates, inside Agile, before release Status updates Addition/deletion of ECO Lines

Change in ECO Line status, inside Oracle, after release Specific ECO Line being implemented ECO being implemented

Significant change in Total Disposition Cost Change in Supply/Demand Scenario

Significant change in Effectivity date Any new ECO Conflict due to latest MRP run

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ECO Lens in a Nutshell

Highly configurable browser-based application Deploys without production downtime Pulls ECOs from Agile and Supply/Demand information from ERP

systems like Oracle Apps Ability to import supply/demand data retrieved from other ERP

systems or from subcontractors in text files Supports multiple organizations Creates default optimization scenarios Provision to create what-if scenarios and refine existing scenarios Manipulate material disposition at a granular level Considers the demand and supply for both MRP and ASCP

planning

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ECO Lens Technical Overview

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ECO Lens Architecture

Background Interface Process

Background Interface Process

ECO LensECO LensRepositoryRepository

AgileAgilePLMPLM

RepositoryRepository

OracleOracleERPERP

RepositoryRepository

ECO Lens Engine(Java)

ECO Lens GUI(JSP)

Cost Analysis

External Flat File import(Demand / Supply)

Scheduling import to ECO Lens

Fetching PLAN / WIP/ INV / PO / Cost

Pending ECOPending ECO

Release ECORelease ECO

ECO Lens Supported Versions

Supported Versions Oracle Apps : 11.5.5, 11.5.10 or higher Agile PLM : 8.5, 9.0, 9.2.0,9.2.2.x Java : JDK 1.4.2 Web Server : Tomcat 5.0

Latest released version of ECO Lens ECO Lens for MRP 2.5 ECO Lens for ASCP 2.6

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Demo - Screen Shots

ECO Details in Agile PLM

Invoke ECO Lens from Agile PLM

ECO Details in ECO Lens

View BOM Changes: Red lining by Item

View BOM Changes: Red lining by Quantity

Implementation options for generating scenarios in ECO Lens

Supply details from ERP

Rework cost can be given

Implementation Scenarios at a glance: effectivity date vs cost

System generated dispositions

Ability to override suggested recommendation for each item

Supply Data from ERP

Demand Data from ERP

Reports for analyzing the disposition cost on daily/weekly/monthly basis

Total Cost Impact

Cost Breakdown

Action Items for Buyers, Planners etc.

Transfer ECO analysis back to Agile PLM

Analysis summary ( Transition plan) to be

transferred to Agile PLM

Agile PLM: Copy of Transition Plan attached

to the ECO

Agile PLM: Selected scenario’s effectivity date automatically populated on the ECO Line

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ECOLens - Accolades

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Real value – Ask Market Experts

Oracle Partner Solution of the Year - 2004

Nasscom has recognized

ECO Lens under its

TOP 100 IT Innovators List

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Real Results – Ask Finisar

“ “ECO Lens recovered its cost many times over in terms of ECO Lens recovered its cost many times over in terms of reduced E&O inventory within the first few weeks after reduced E&O inventory within the first few weeks after deployment. The instant availability of the cost-impact of deployment. The instant availability of the cost-impact of ECOs is a priceless resource for both engineers and ECOs is a priceless resource for both engineers and materials personnel to gauge the feasibility of each ECO.” materials personnel to gauge the feasibility of each ECO.”

- Finisar Corporation- Finisar Corporation

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