change order process
TRANSCRIPT
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Collaborative Engineering
Change Order Process
By
Himanshu Jain Neopoint Consulting
Tony Miller Metro
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Metro Overview
Metro Integrated Environment
Standard ECO Process
Metro ECO Requirements
Collaborative ECO Process
How we did it
Lessons Learned
Agenda
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St. Louis Metropolitan areas public transit operator
42.5 miles Light rail system
467 Buses
65 LRV
120 Para-transit vans
6 Garage/Maintenance facilities
Metro spends $96 million annually to operate and maintain
Metro Material Organization Structure
Metro Overview
CENTRAL Metro Link
Brentwood Debalivere Illinois Saint Clair
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Oracle 11.5.9 Public Sector
Financials, INV, WIP, BOM, OM, MSCA, CST, ENG, PO etc.
Operational Environment
Maintenance Operations Group
Materials Management
Integrated with Maximus Fleet-focus M5
Collaboration between Operations and Materials Close to real time integration
Validated material issues
Job costing in M5 based on material issued
Complete visibility of inventory on hand and transactions
Controlled change process for any BOM changes
Complete tracking and visibility of outside processing
Integrated planning and scheduling
Metro Integrated Environment
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Oracle Integration with M5
Vehicle in forMaintenance
Work OrderCreated in M 5
Work Order
Interfaced as
Discrete Job
Material Issued tothe Job
MaterialAvailable ?
Procure materialon Urgent basis or
Hold the Job
Y e s
N o
Cost
Transactions
Interface Issuetransaction to M 5
Apply Material
Issues to WorkOrder
Accumulate JobCost
E n d
M5VehicleMaintenance
System
(Operations)
OracleApplictions
(MaterialsG
roup)
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Problems with ECO Process
Initiated on verbal communication from Operations
No record in system of suggested changes
Miscommunication Lead to wrong BOM & downstream effects
Obsolete Inventory after changes
POs not corrected appropriately
At times lead to reactive process
Waited for the material request from Operations
Ordered material
On receipt of material changed the BOM
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Standard ECO Life Cycle
ECO process uses two Statuses
ECO Status
ECO Approval Status
Standard ECO Life Cycle
Sequence ECO Status Approved Status
Start creating new ECO Hold Not Submitted for Approval
Complete data entry Open Not Submitted for Approval
Submit approval process N/A Approval Required
Oracle W orkflow controlsapproval process
N/A Approval Required
Approve and release Released Approved
Production updates date Scheduled N/A
Effective date arrives Implemented N/A
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Standard ECO Approvals
ECO Approval using workflow: In this approval process, the ECO type incombination with ECO priority is linked to an Oracle workflow process. Once the
ECO is submitted for approval the workflow takes over and controls the process till
approval is granted. Once that happens workflow automatically updates the status.
ECO Approval using approval list: In this approval process, a simple approval list
is used and submission for approval an Oracle alert is send out to all the members of
the list. Once appropriate members approve the ECO, the status of the ECO is
changed manually.
No Formal Approval: In this case no formal approval is required and status is set toapproved
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Standard ECO Approval Workflow
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Metro ECO Requirements
Multi level approval process
Approval across departments
Allow collaboration and communication between operations and
material group Track and record all BOM changes
FYI notifications to managers and planners
Notification to creator on approval
Controlled Implementation of changes
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ECO Approval Workflow
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How we Did It?
Customized ECO Approval Workflow Passed Approval Hierarchy to custom workflow
Defined ECO priorities
Linked Priorities with ECO Type
Associated Custom workflow to ECO Type and Priority
Created Approval Hierarchy Defined First Approval List
Superintendents of maintenance
Defined Second Approval List VP of Maintenance
Director of product development
Defined For Information Only List Superintendent of maintenance
VP of maintenance
Forecast and production scheduler
Manager production and inventory control
Defined Approval Hierarchy in Manufacturing Lookups
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Metro ECO Approval Workflow
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Define ECO Priorities
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Define ECO Change Type
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Linking Workflow to ECO Type and Priority
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Define First Approval List
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Define Second Approval List
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Define ECO For Information OnlyList
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Approval Hierarchy in Manufacturing Lookup
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Profile Options
Profile Settings for Changing Bills Only With ECOs
To limit users access to bills of material only through ECOs, set the
following Bills of Material profile options to No:
BOM: Standard Item Access
BOM: Planning Item Access
BOM: Model Item Access
And the following Engineering profile options to Yes:
ENG: Standard Item Change Order Access
ENG: Planning Item Change Order Access
ENG: Model Item Change Order Access
ENG: Engineering Item Change Order Access.
Profile Settings for Changing Bills With or Without ECOs
With the same seven profile options listed above all set to Yes, bills can
be changed with or without ECOs.
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Benefits of Collaborative ECO process
Intangible Benefits
Better planning and Forecast is possible
MRP is used to drive requirements
Reduced material handling and warehouse management cost Operations can plan better with communication changes
Operations validates and confirms changes
No stock-outs because of better communication
No loss of time waiting for material
Shared responsibility of the change as everything is tracked andmaintained in the system
Allows to collaborate with Operations to ensure all in stock material isused before change is implemented
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Benefits of Collaborative ECO process
Tangible Benefits
Reduced Obsolete material from $300,000 to $40,000 on an annual basis.
Reduced inventorying of material by 25% because of better coordination.
Before ECO only 11% of material was on Kits, After ECO almost 80%of it is on Kits
Improved material availability to 99%
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Approvers did not log in to Oracle to approve on a regular basis.
Changed to use of email notification
Effective use ofWhere used parts list as part of the verificationprocess.
Coordination between purchasing and product forecasters
Setting up alerts to facilitate this process
Changes to approval hierarchy as organization structure changes.
Simple configuration changes to Approval list and Approval hierarchyenabled this easily
Lessons Learned
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AQ&Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S
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Thank You
Himanshu Jain [email protected]
Tony Miller [email protected]