it basics for supply networks it basics for supply networks/2 dr. withalm 6-aug-15

IT Basics for Supply NetworksIT Basics for Supply Networks

IT Basics for Supply Networks/2IT Basics for Supply Networks/2

Dr. Withalm Apr 19, 2023

IT Basics for Supply Networks19.04.23 Dr.Withalm2

Lectures at the University of Bratislava/Autumn 2014

30.09.2014 Lecture 1 Introduction in CNO’s & Basics of Supply Networks

07.10.2014 Lecture 2 Kanban & Essential Supply Chain Processes

21.10.2014 Lecture 3 Business Processes & Semantic Web

11.11.2014 Lecture 4 SOA and SOA basing on J2EE

18.11.2014 Lecture 5 B2B & Cloud Computing including SaaS


Today’s Agenda

ITA COIN Collaboration

Kanban SCPP (Supply Chain Process Platform)

Challenges & Requirements on CDCP

DCP (Demand Capacity Planning)

CDCP (Collaborative Demand Capacity Planning


ITA COIN Collaboration/1History and Motivation

COIN:COIN:

AAs an EU FP7 Project COIN leverages from the experience of it‘s members and the results of other EU projects (ECOLEAD, ATHENA and others as well). One of the goals of COIN is to show relevance of the COIN results in reality.

ITA:

ITA represents IT & Consulting companies and their experts giving service to the Automotive Industry and is affiliated with VDA – the association of the German Automotive Industry with more then 600 members.

Odette:

Odette International is an organization, formed by the Automotive Industry for the Automotive Industry. It links the 4000 plus businesses in the European Automotive Industry and their global trading partners. Odette released a „Demand Capacity Planning - DCP“ recommendation 2004 which is accepted by the European Automotive Industry as a standard.

ITA/VDA:

ITA/VDA started a project to add collaborative elements to DCP and enriched the processes with interoperable and state of the art technologies and methods – „Collaborative Demand Capacity Planning – CDCP“. First draft will be released first quarter of 2010. ITA/VDA could be viewed as a „COIN Multiplier“ for COIN to leverage from the outcome of the CDCP project (Model and Processes) to show the practical relevance of COIN results.


Experiences in the past have proven that suppliers in the Automotive Industry are not really mature to apply EI Services, which were selected in the CDCP sub project PoC and which will be provided via a Generic Service Platform. These EI Services will be elicited, evaluated, designed and partly implemented by the EU project COIN and adopted to the specific requirements of the Automotive Industry by the CDCP sub project PoC.

The first sub project ECMM will assess the maturity level of suppliers concerning the ability to apply EI Services in the context of CDCP.

To introduce CDCP within the Automotive Industry different accompanying actions are taken. These accompanying measures will be performed in sub projects of the CDCP main project. Especially the synergy with the EU project COIN will utilized in order to execute these sub projects. The sub projects which are described later on in detail will deal on the one hand with Enterprise Collaboration Maturity Model (ECMM) assessments and on the other hand with Serious Gaming.The second sub project Serious Gaming in turn will establish concrete SG’s to overcome weaknesses which were revealed in the preceding ECMM assessment. ECMM has been developed during the COIN project and is a derivate of the CMMI assessment methodology, while SG was also applied in the course of the COIN project.

As both of the sub projects will be jointly headed by ITA and COIN members. It will be suggested that in the case of the sub project ECMM ESI should be the leader of the COIN part while BIBA should be heading SG.

Both sub projects are structured in WP’s where WP1 will always tackle project management issues. The efforts of WP1 will be estimated by 10% of the effort of the whole sub project.

ITA COIN Collaboration/2Two sides of the COIN


ITA COIN Collaboration/3CDCP Programme

BIBA is a Scientific Organization COIN represents EU experts in Collaboration &

Interoperability ITA represents Automotive IT & Consulting Companies Odette represents European Automotive Industry

Logistics Technikum is a Scientific Organization VDA represents the German Automotive Industry

Related Projects DCP - Demand Capacity Planning

Verbal Description of DCP Model & DCP Process Recommendation released 2004 by Odette

SCI - Supply Chain Interoperability Recursive Modeling Principles for Supply Networks Interoperable Messaging for Supply Networks Interoperability Architecture

COIN – Enterprise Collaboration & Interoperability The mission of the Coin IP is to study, design, develop and

prototype an open, self-adaptive, generic ICT integrated solution in the field of Enterprise Interoperability and Enterprise Collaboration.

CDCP Processes - Collaborative Demand Capacity Planning Processes Update of DCP with collaborative elements Formal description of CDCP Model & CDCP Process Executable processes and well defined messages Executable Processes will be published on ITA Portal for the Automotive

community Draft of update of recommendation and executable processes will be

released 2010 by ITA/VDA

CDCP Rollout - Collaborative Demand Capacity Planning Validation & Service RolloutA CDCP Service Rollout

A1 Process Model VerificationProof of Concept for CDCP with a significant sub network of a Supplier Network

A2 Portal ElementsOffer of elements for interoperable use of CDCP services in federated portals

B CDCP Supplier EncouragementB1 Supplier Assessment

Use of ECMM assessment method - a CMMI derivate - in order to appraise their ability to take advantage of CDCP.

B2 Serious GamingTraining and education of CDCP by use of state of the art e-learning methods

C CDCP Business FacilitationC1 Business Models

Evaluate business models to lower the barrier to bring CDCP to the market

C2 Marketing ModelsEvaluate marketing models to decrease the time to market of CDCP

Process Model Verification

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CDCP RolloutCOIN/ITA/VDA/

Technikum/BIBA

CDCP ProcessesITA/VDA

DCP/SCI/COIN

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PortalElements

Core Collaborative Processes

CDCP Business Facilitation

CDCP Supplier Encouragement

CDCP Validation & Service Rollout


ITA COIN Collaboration/4CDCP Roll Out

ITA will support COIN in:

Collecting of EC/EI requirements of suppliers within the Automotive Industry

Recommended by VDA Member (OEM or 1. Tier)

Reviewing EC/EI Services, which have been collected in D6.1

Holding a workshop together with WP6.1 members in order to

Elicit, prioritize, and order requirements for EC/EI Services

What are the premises for suppliers to apply EC/EI Services from the GSP (Generic

Service Platform)

Infrastructural, knowledge, training (i.e. serious gaming), consulting

Definition of real life demonstrators, take up in order to verify the requirements including:

Deployment of a specific server for accessing GSP

Real life scenarios (story book) of a take up

Providing a help desk/tutor by ITA in order to support suppliers

Establishing training programs i.e. serious gaming for specific EC/EI Services


WP1: Project Management The project is headed by ITA and EsoCe and follows the usual tasks of project management as planning and

monitoring.

WP2: Collection of requirements for EC/EI Services. VDA Member (OEM or 1. Tier) together with BIBA will held a workshop, where the most essential EC/EI Services for

Supply Networks focused on the Automotive Industry will be collected independently of the already collected within the COIN project. Focus is on CDCP PProcesses.

Participants: ITA, VDA Member (OEM or 1. Tier), BIBA together with suppliers.

WP3: Reviewing of COIN requirements by ITA. All COIN requirements concerning EC/EI Services for supply networks will be analyzed regarding:

Are they characteristic respectively important for the Automotive Industry May they modified/updated to be usable within the Automotive Industry

Afterwards requirements will be modified/updated. Participants: ITA (VDA Member (OEM or 1. Tier) together with selected suppliers), BIBA, EsoCe

WP4: Eliciting, Prioritizing, and ordering of requirements. Both new requirements collected in WP2 and modified requirements of WP3 will be elicited, prioritized, and ordered to

be implemented within the COIN project. Participants: ITA (VDA Member (OEM or 1. Tier) together with slelected suppliers), BIBA, EsoCe

WP5: Definition of minimal premises for supplier in order to apply EC/EI Services Primarily the status quo of suppliers must be evaluated by means of corresponding questionnaires.

Not only infrastructural (IT issues) premises must be defined but also which knowledge is expected which training issues must be provided which consulting tasks should be proposed

Participants: ITA (VDA Member (OEM or 1. Tier) together with selected suppliers), TxT, EsoCe

WP6: Definition of real life demonstrations, take ups. Purpose of this work package is the final test, if requirements for EC/EI Services are effectively applicable by suppliers

of the automotive industry. With help of this WP the verification of usage of the implemented EC/EI Services should be proven. Following tasks are expected:

Establishing of story boards and real life scenarios Specific server for providing the GSP must be deployed Help desk/tutors for supporting the suppliers must be trained

Participants: ITA (VDA Member (OEM or 1. Tier) together with suppliers), BIBA,TxT, EsoCe

ITA COIN Collaboration/4 CDCP Process Model Verification (PoC): Structure of Work


ITA COIN Collaboration/5 CDCP Service Rollout: CDCP Portal Elements

CDCP Portal Elements are a special offer for the suppliers to use the CDCP processes portal invariant based on international portal standards for federated portals.

The ITA Portal is designed to support collaboration of ITA members as well as organizations affiliated with ITA (VDA, Odette and others).

Therefore the ITA Portal will leverage from this collaborations because of the number of members of the affiliated organizations.

Key point is the ITA Portal offer for ITA members and members of affiliated organizations.


ITA COIN Collaboration/5 CDCP Supplier Assessment

Structure of Work The whole project consists of 4 work packages.

WP1: Project Management The project is headed by ITA ESI and follows the usual tasks of project management as planning and

monitoring. WP2: Preparation of ECMM Assessment

In this work package it must be clarified which suppliers will be assessed. Moreover the maturity level and the corresponding process areas of the assessment must be selected.

Participants: ITA, ESI, Tier Leader. WP3: Assessment.

The assessment will be performed according the following process: 1st day: management of tier leader and respective suppliers will be interviewed. 2nd day: according the outcome of the 1st day middle managers of tier leader and respective suppliers will be

asked to specific issues which remain unclear. 3rd day: to critical issues employees of suppliers will be asked and finally the outcome presented. Participants: ITA , ESI, Tier Leader (manager, middle manager), suppliers (managers, middle managers,

employees) WP4: Recommendation.

According the outcome of the assessment an improvement program will be established. Typical improvements could be training and consulting issues i.e. Serious Gaming.

Participants: ITA , ESI, Tier Leader.


ITA COIN Collaboration/6CDCP Serious Gaming

In order to expand the use of Supply Network Processes (Focal Point: CDCP Processes) Serious Gaming will be introduced by COIN and ITA.

This will help suppliers to understand the business value and the use of the Supply Network Processes delivered by ITA/VDA.

It will also lower the barriers in introducing a specific Supply Network Process (Focal Point: CDCP Processes) not only for the large suppliers (tier one to three) but also for the smaller one (tier 4 for 6 ff).


ITA COIN Collaboration/7CDCP Business Models

This sub project should develop and value some scenarios of business models

One could be to deliver the CDCP processes for suppliers for free and charge for additional services – possibly sponsored by OEMs and 1 tiers

An other business model could be to sell the CDCP Process and the additional services as well

Pro’s and con’s should be categorized and valued


ITA COIN Collaboration/8Innovative Aspects

Combination of innovative approaches enables a breakthrough innovation

Following innovative approaches will be combined EC/EI- Services provided by a GSP and applying the

emerging SaaS-U paradigm Serious Gaming enabling both eliciting the

requirements concerning EC/EI Services as well as training of them

ECMM as derivate of CMMI (focused on SW engineering) focuses on collaborative behavior


Kanban/1

Kanban, also spelled kamban, and literally meaning “signboard" or “billboard„ is a concept related to lean and Just In Time (JIT) production. Invented by Taiichi Ohno working within Toyota

Kanban is not an inventory control system but a scheduling system deciding what to produce when to produce it how much to produce.


Kanban/2

The need to maintain a high rate of improvements led Toyota devise the Kanban system.

Kanban became an effective tool to support the running of the production system as a whole.

In addition, it proved to be an excellent way for promoting improvements.


Kanban/3


Kanban/4Origins/1

In the late 1940s, Toyota began studying supermarkets with a view to applying store and shelf-stocking techniques to the factory floor based on the idea that in a supermarket customers get what they need at the needed time and in the

needed amount Furthermore, the supermarket only stocks what it believes it will

sell, and customers only take what they need because future supply is assured.


Kanban/5Origins/2

This led Toyota to view a process a customer of preceding processes the preceding processes as a kind of store.

The customer process goes to this store to get needed components and the store restocks.

Originally, as in supermarkets, signboards were used to guide "shopper" processes to specific restocking locations.

"Kanban" uses the rate of demand to control the rate of production passing demand from the end customer up through the chain of

customer-store processes. In 1953, Toyota applied this logic in their main plant machine shop.


Kanban/6Operation/1

An important determinant of the success of production scheduling based on "pushing" the demand is the quality of the demand forecast that can receive such "push."

Kanban, by contrast, is part of an approach of receiving the “pull” from the demand.

Therefore, the supply or production is determined according to the actual demand of the customers.


Kanban/7Operation/2

In contexts where supply time is lengthy and demand is difficult to forecast, Respond quickly to observed demand: This is exactly what a Kanban system can help with:

It is used as a demand signal that immediately propagates through the supply chain.

This can be used to ensure that intermediate stocks held in the supply chain are better managed, usually smaller.


Kanban/8Operation/3

Where the supply response cannot be quick enough to meet actual demand fluctuations causing significant lost sales then stock building may be deemed as appropriate

which can be achieved by issuing more Kanban. Taiichi Ohno states that to be effective Kanban must

follow strict rules of use monitoring of these rules is a never-ending task to

ensure that the Kanban does what is required.

IT Basics for Supply Networks

Kanban/9Six Rules

1. Do not send defective products to the subsequent process

2. The subsequent process comes to withdraw only what is needed

3. Produce only the exact quantity withdrawn by the subsequent process

4. Level the production

5. Kanban is a means to fine tuning

6. Stabilize and rationalize the process

19.04.23 Dr.Withalm22


Kanban/10Kanban Cards/1

Kanban cards are a key component of Kanban that utilizes cards to signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier to the production

facility. The Kanban card is a message that signals depletion of product,

parts or inventory that when received will trigger the replenishment of that product,

part or inventory. Consumption drives demand for more. Demand for more is signaled by Kanban card. Kanban cards thus, in effect, help to create a demand-driven

system.


Kanban/11Kanban Cards/2

Kanban cards, in keeping with the principles of Kanban, should simply convey the need for more materials. A red card lying in an empty parts cart means

that more parts are needed. In the last few years, Electronic Kanban systems, which

send Kanban signals electronically, have become more widespread.

While this is leading to a reduction in the use of Kanban cards in aggregate it is common in modern Lean production facilities to

still find widespread usage of Kanban cards.


Kanban/12Three - Bin System/1

A simple example of the Kanban system implementation might be a "three-bin system" for the supplied parts where there is no in-house manufacturing

1. one bin on the factory floor (demand point)2. one bin in the factory store3. one bin at the suppliers' store.

The bins usually have a removable card that contains the product details and other relevant

information — the Kanban Card.



When the bin on the factory floor becomes empty i.e., there is demand for parts

the empty bin and Kanban cards are returned to the factory store.

The factory store then replaces the bin on the factory floor with a full bin which also contains a Kanban card.

The factory store then contacts the supplier’s store and returns the now-empty bin with its Kanban card.

The supplier's inbound product bin with its Kanban card is then delivered into the factory store completing the final step to the system.



Thus the process will never run out of product and could be described as a loop providing the exact amount required with only one spare so there will never be an oversupply.

This 'spare' bin is used for the uncertainty that are inherent in the system in Supply Use Transport.

The secret to a good Kanban system is to calculate how many Kanban cards are required for each

product. Most factories using Kanban use the colored board system (Heijunka

Box). This consists of a board created especially for holding the Kanban

cards.


KANBAN/15 Summary of Basic Information

The KANBAN principle is a consumption control mechanism

KANBAN manages the material flow in a complex supply chain

KANBAN enables the „Just in time“ principle – every arriving KANBAN triggers supply and production

KANBAN optimizes consumption by strictly implementing a pull process.

KANBAN is simple and efficient– by establishing automatic control loops.

A consumption notification signal flows back to the producer - by returning the KANBAN

The inventory between two control points is limited by the number of container maps.


KANBAN/16 The Toyota Equation

An equation developed at Toyota Motor Car Company for calculating the initial number of KANBAN cards needed in a Just-in-Time manufacturing network.

In words, the number of KANBAN equals the number of production units to be made during the transportation lead time (to the next stage).

The equation is

n = (d*L* (1+b))/c

n number of cards, d number of units made per hour, L transportation lead-time in hours, b safety factor, usually initially set at 0.1, c number of units in a parts container, if one is used.

This number is a starting point – every effort must be made to decrease the number in order to continuously reduce the stock levels !


KANBAN/17Integration with SCPP

Material Flow

Information Flow

per SCPP

Barcode ReaderBarcode Reader ConsumerProducer


SCPP/1

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Actual No. of KANBANs

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Upper Limit of KANBANs

Lower Limit of KANBANs

Signalization


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SCPP/3Process Model Exception States

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SCPP/4Normal States

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SCPP/5Principles

SCPP is a set of interoperable Internet Technology Services (Webservices) for cross border Supply

Chain Processes

SCPP supports distributed Supply Chain Processes across system boundaries applying Internet

interoperability principles

SCPP especially supports "Ready to Use" interoperable processes and models for the Automotive

Industry

iKANBAN – interoperable KANBAN processes and control

iVMI – interoperable Vendor Managed Inventory

iDCP – interoperable Demand Capacity Planning

iSCMo – interoperable Supply Chain Monitoring


SCPP/6 Scope

Supply Chain Process examples in the Automotive Industry VMI – Vendor Managed Inventory (Odette Project) CMI – Collaborative Managed Inventory (AIAG/Odette/Jama Project) DCP – Demand Capacity Planning (based on Odette Specification) SCMo – Supply Chain Monitoring (based on Odette Specification) ….. Just in Time or KANBAN in various characteristics

Supply Chain Processes in the Automotive Industry are by nature spanning across the Supply Chain Processes involve multiple parties Complexity influenced by material -, information - and process work-flow Existing Information systems are not designed for these processes

Open for custom Supply Chain Processes

Use of predefined Interoperable Process Components (IPCs) Use of flexible predefined recursive sub models Use of Webservice Templates Communication via high level Internet Protocols (e. g. SOAP)


SCPP/7Interoperability - Benefits

Interoperability - the implementation completely based on internet technologies

All Documents locally defined in XML (e. g. messages, states, exceptions etc.)

Webservices (using WSDL – Web-Service Definition Language)

Internet Protocol Stack (from TCP/IP to SOAP)

Scalability – there is no leading system across the Supply Chain

every node in the Supply Chain is loosely coupled with other nodes

Consistency – there is no central database, each database is bund able

Stateless design

No synchronization issues

Safe transactions

there are no batch processes across the supply chain – everything is “online” and “real-time”

Inherent security

Every party may implement a proprietary security policy due to the purely local data storage

Communication via Internet Protocols like SOAP


SCPP/8Architecture Service Types and Interoperability Hub

Four types of services are available for each specific Supply Chain Process acting on the iHub

Rendering Service

Specific view for actors in the process Can be used in several applications, portals etc.

along the Supply Chains Docking Services

Docking to other systems such as ERP systems (SAP, Oracle, …) MRP systems (Material requirements planning

(QAD, …) Office Applications (MS Excel, OpenOffice, …) Or simply keying in the data

Process Service Standard-handling of spanning Supply Chain

Processes Exception-handling of spanning Supply Chain

Processes Model Service

Recursive Model for a specific spanning process in Supply Chains

iHub

iHub needs to be defined

Docking ServicesDocking Services

Model ServiceModel Service

Process ServiceProcess Service

Rendering ServiceRendering Service

Model ServiceModel Service

Process ServiceProcess Service


Technology

Material Flow

Information Flow

SCPP/9Interoperability Architecture: Information Flow - Material Flow - Technology

Process ServiceModel Service

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Lean Implementation

PHPApache http ServerMySQLVirtual SOAP Server

85%

Light Weight Implementation

JavaApache http ServerMySQLTomcat, ESB

10%

Rich Implementation

JavaApache http Server, MS IIS, …MySQL, DB2, Oracle, MS SQLTomcat, ESB, Weblogic, Websphere, .Net, …

5%

Tier 1

OEMTier 2Tier 3

Tier 1


SCPP/10Service Implementation Levels Dependent on Infrastructure

Lean Implementation Simple IT-infrastructure Simple packaged installation Manual data input or transfer of text files

Tier 3ff

Light Weight Implementation Given IT-infrastructure Scalable and simple installation Data input through standard adapters

Rich Implementation Complex enterprise IT-infrastructure Highly scalable installation ERP Connectors secure online data transfer Multiple presentation level requirements

Tier 2

OEM

Customers IT-InfrastructureProvider orIn house


SCPP/11Multi Stage KANBAN Process Model with Consolidation

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Consolidation of

KANBAN States


SCPP/12Multi Stage KANBAN Process Model Loosely Coupled KANBAN Models

Coupling of KANBAN Models


SCPP/13“Interoperable KANBAN” Predicting System Behavior through online Simulation

Collaborative setup of the iKANBAN “Game”

Supply Chain nodes at “Any time, any place, no matter”

Number of actors is unlimited

Multi stage, multi tier KANBAN

Excellent training effect

With or without real data

Time-lapse function

Optimization of KANBANs

Predicting of KANBAN systems behavior

Simulation of change management and exception handling

Last but not least a lot of fun in playing iKANBAN Transport

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Scan Pointsat

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Challenges in Automotive/1Source: ITA & ILIPT Intelligent Logistics for Innovative Product Technologies

Customers’ demands – A shift from bigger to more energy efficient („green“) models

OEM’s react internally very fast on changes

Flexible internal manufacturing devices

OEM’s leeway for reaction strongly limited

20% of parts of a car are produced directly by the OEM

80% are delivered by suppliers in different tiers

Usually 6 to 10 tiers in a Supply Chain and

Approximately 3000 - 5000 partners in the Supply Network

Suppliers lagging behind in producing their sub parts

Lack of information and slow processes

Customers’ requirements – A shift from BTS (Build to Stock) to BTO (Built to Order)

Research in US indicates

74% of consumers would rather specify and order a customer built car and wait

Build-to-order (BTO) customers in Europe

Delivery time :48 days (European cars), 63 days (Japanese models)


Challenges in Automotive/2

Mastering logistical networks becomes increasingly difficult increasing dynamics (e.g. engineering changes) increasing number of involved partners due to increased

product complexity and outsourcing increasing number of variants

In spite of introduction of optimized/new logistic concepts still high cost and efforts in terms of logistics all over the

supply network trouble shooting activities considered as normal slow communication due to numerous interfaces

(organizational, technical, cultural) no transparency / no optimization across enterprises

Brief Description of a Typical SC Project follows CDCP (Collaborative Demand Capacity Planning)


Challenges in Automotive/3

At present times buyers demands radically changed from big cars to more fuel efficient ones.

A long term paradigm shift from Built to Stack (BtS) to Built to Order (BtO) up to Just in Sequence (JIS) is increasing especially in the lower levels.

Supply Chain processes have to be more agile as in the past because of fast changes of the demand planning and capacity planning as well.


Challenges& Requirements/1

Some enterprises have not implemented a collaborative agreement among capacity and demand overcapacity and delivery shortage are at hand

Only particulary problems are identified by enterprises CDCP approaches are both within a single company as well as

cross organizational of big interest Generally suppliers confirm more than 100% of their capacity to

their customers CDCP could visualize this contradiction but would weaken

substantially the position of suppliers Actually the time frame of the cycles of planning are about 1

week taking into account 4 tiers an agreement will last at least 4 weeks

Generally customers demand’s are too high Therfore suppliers respond with capacity more than 100%

CDCP will not visualize this entrepreneurial risk



DCP (Demand Capacity Planning) describes methodologies and models among OEM and tier 1 respectively among tier (n) and tier (n+1)

CDCP will provide an approach for the whole supply network Basing on DCP and by means of collaborative services

Such collaborative services should enable quasi online planning



Internal business processes will not be considered Stochastic methods and risk analyses will also not be

taken into account Moreover the visibility of risk will be excluded Tier (n) is steering tier (n+1) and backwards covers the

demands of tier (n-1)



Improve visibility for all stake holders within the supply network Direct data exchange restricted to direct business partners Definition of information which are forwarded from tier (n-1) via

tier (n) to tier (n+1) CDCP must fulfill specific online requests

Must be specified exactly The visibility within the network will be accomplished

By mutual exchange of demand/capacity information from tier to tier

Sufficient efficient planning activities are requested Introduction/integration of collaborative services for planning

agreement Communication within the supply network should be automated DCP must be enlarged about vertical multitier abilities



A process for DCDP will be developed Containing types for messages, protocols, milestones

Access via service platforms Enabling the interface to internal business processes

(PP) Supporting the mid/long term agreement of capacity

and demand



Web Services, SaaS, Business Processes, Modeling of BP, Standards as BPMN, xPDL,BPEL

Actually respective processes will be analyzed and established definitions/recommendations seem very likely

COIN results will be available in a further project DCP is a central approach but covers two tiers Generally SCMo comprehends multiple tiers

SCMo’s primary goal is the whole demand of OEM’s along the supply chain A target value for optimization should available

Remark: SCMo was established when Daimler must stop the producing process As carpeting material was not delivered Analyzes revealed that farmers in SA were the reason which

were in tier 7 SCMo considered only service chains and is not regular Problems in the supply chain are encountered mostly in the higher

tiers Specifics of customers diminish along the chain



Seamless implementation of CDCP along the supply chain is an urgent problem in the automotive industry which must be solved very fast especially in the case of the actual

situation. EC/EI Services will be provided on a GSP/Cloud following the ISU

principle combined with SG could substantially improve the acceleration of the implementation and reaction of supply chains

CDCP has many stakeholders in the automotive industry that could benefit CDCP meets its goal.

the most important stakeholders are OEM, their suppliers, and ICT providers

A Serious Game, which enables suppliers in the automotive industry to learn how EI services work will support meeting the CDCP goals

i.e. on the one hand supplier learn to apply EI services and on the other hand it will help to reveal missing EI services.


Tier nSupplier

Tier nSupplier

Tier 1Supplier

Tier 1Supplier

DealershipDealership ConsumerConsumer

Tier 2Supplier

Tier 2Supplier DealershipDealership

DealershipDealership ConsumerConsumer

ConsumerConsumer

10-30 Days 2-20 Days 1-10 Days

cascading information flowEDI, Phone, FaxPhone, Fax EDI

Weeks DaysWeeks

inventory buffer

OEM

Source: Goldman Sachs, Gentlemen Start Your Search Engines, 01/00;

Prudential Securities, E-Business and the Auto Industry, 01/31/00

engineering changes

slow information flow long lead times lack of transparency volatile forecasts

bull-whip effect, high effort and cost, limited reliability and flexibility

DCP/1Actual Situation


DCP/2Basic Idea

Program planning and demand forecast from customers

Capacity profile of supplier (planned capacity)

fcst/calloff[qty]

weeks months [time]

planned demand

planned capacity

AlertAlert

Alert


DCP/3Characteristics

Objective: Identify potential capacity shortfalls in time; Structured, collaborative procedure to find proactively

solutions for capacity issues; Enable scenario simulation

Benefits: Safeguard build plans Avoid non value adding activities and related cost

(customer and supplier side) Approach:

Check if production capacity of suppliers is sufficient to satisfy planned customer demand


DCP/4Basic Characterization of the SCM Building Blocks DCPand SCMo

Criteria SCMo DCPmedium-term

DCPlong-term

characteristics execution planning planning

demandinformation

releases / forecastout of MRP runs

releases / forecastout of MRP runs

planning onplatform / featurelevel

updates daily monthly 2-4 times per year

time frame* day 0 to 60 month 1 to 12 year 1,5 to 4

* may vary by company and product family


DCP/5Basic Process Steps

Suppliers update/declare maximum capacities by partnumber Suppliers create capacity families / hierarchies (e.g. based on the

actual/planned production structure) to show dependencies with

other part numbers within product group Analysis of planned demand versus most recently declared

supplier capacities System generates alerts in case of lack or excess capacity In case of potential lack of capacity, system delivers all relevant

information and standard template to systematically capture

supplier feedback or cross-company workflow


Additional inform. (parameters, BOM info, etc.) where

appropriate

Capacity Information 1

Demand Information 2

Customer, regular update

demand in capacity tole-rance?

Alert Generation (potential shortfall or over capacity)

no

Workflow to solve the issue

DCP System,automated real-time process

carry out corrective action(s)

yes

DCP/6Basic Process (Level 1) Demand Capacity Planning Static Model

execute plan

Supplier, regular update

relevant associates from supply network participants,promptly

relevant associates from supply network participants,promptly

1 Information from multiple suppliers in customer’s point of view and2 Information from multiple customers in supplier’s point of view


CDCP/1

Objectives Improvement of the supply network processes (especially exception

management) To grant supply chain visibility and collaboration To align demand planning and capacity planning for all members of

the supply network Interchange information on demand and capacity information based on

standardization of messages and communication


CDCP/2Enterprise Interoperability

Enterprise Interoperability is the ability of two or more systems or components to exchange information and to use the information that has been exchanged. Information Interoperability Knowledge Interoperability Business Interoperability

Improvement of the whole DCP Process in order to reach „Online Interoperability“ throughout the Supply Chain / Network

Prerequisites for EI Services Availability through COIN Generic Service Platform (GSP) Affordability through COIN Software as a Service Utility

(SaaS-U)Sergio Gusmeroli, TXT


CDCP/3Availability of Enterprise Interoperabiltity Services by GSP

EI Services will primary enable the i/op among CBP (Cross-organizational Business Processes) and PP (Private Process) Technically performed by Web Services Adhering to the SOA principle Complemented by Semantic Annotations

CBP calls Web Services from a subset of the whole PP which is called VP (View Process) VP is an essential construct, as suppliers will not like to offer the whole PP to

the corresponding CBP EI Services will be provided via a so called GSP (Generic Service Platform)

View Process

PrivateProcess

Action1Action2

Action3

Action4

input state object

output state object

process start

process end

private operation

transformation

Transformation of a private process into a view processCBPM – bp-based modelling vs. b/ip-based modelling


CDCP/4Affordability through SaaS-U

SaaS-U – a new implementation of the SaaS vision

Supporting the various collaborative business forms, from supply chains to

business ecosystems

Delivery of IT as services, becoming for them like a utility, a commodity, the

so-called Interoperability Service Utility (ISU)

ISU will not just create a service platform, but mainly a new business concept

– the Software-as-a-Service Utility (SaaS-U) model

Interoperability will be a utility-like capability for enterprises

Available at (very) low cost

Accessible in principle by all enterprises

(universal or near-universal access)

“Guaranteed” to a certain extent &

at a certain level in accordance with

a set of common rules

Not controlled or owned by any

single private entity


CDCP/6Use Case Example



CDCP/7University – Project Example



CDCP/8Project Teams


Student Group 1Student Group 1





PorschePorscheSimulation of a Supply Network

There will be 4 groups of student with 4 team members each, simulating a supplier network in the supply network.

Market demand will be simulated by the university professor.


CDCP/9Bill of Material - Definition



CDCP/10Project Phases


Phase I: Supply Chain SetupDescription of the student team company.Company environment descriptionDefinition of products and product attributesDefintion of the supply network and the collaborative processPresentation of the results from each project team

Phase II: CDCP Tool SetupSetup of the companies in the CDCP ToolCapacity planning and collaboration process expierenceCapacity optimizationSupply chain processes Presentation of the results from each project teamFirst: Project Report

Phase III: Capacity Pitfall SimulationCapacity Pitfalls and Risk ManagementExample: Supplier Delivery Problems from Japan vs. Increase in Market CapacitiesAlert Management and Problem solvingPresentation of the results from each project teamFinal Project Report


CDCP/11Tool


http://uni.cdcp3.com/


CDCP/12Tool Registration


http://uni.cdcp3.com/


CDCP/13University Program


Courses/Lecture concerning Collaborative Networked Organizations (CNO’s)Setup of Exercises/Training for Students regarding CNO‘sUse of the Collaborative Demand Capacity Platform (CDCP3) and establish of a virtual collaborative student community/simulationEnable Cross-Regional student projects, by contributing to the cross-regional university projects or industry partner projectsDivulgating the CDCP3 University Program concepts and results to a wider scientific and industrial communityTeaching CNO’s Business Strategies and Business Opportunities


CDCP/14Benefits/1

Following premises should be provided by leading partner: Establishment of definitions and regulations and foster

assessments (ECMM) and training (Serious Gaming) Economic benefits are recognized as the EC/EI Services will be

provided as SaaS Supplier have only to pay per usage Services will be available via Web Browsers

So all heavy installation procedures will be dropped Cload computing concepts might help

EC/EI Services will speed up the whole business chain among tier leader and suppliers within a tier Saving money multiple

Stack stay small Idle time is reduced

Clear business processes also minimizes unclear decisions


CDCP/15Benefits/2

EC/EI Services will enable to stay in business Tier leader will find portfolio of potential suppliers

By opening its PP (Private Processes) via a (VP) View Process to the CBP (Cross organizational Business Processes)

ECMM assessments will explore weaknesses so that automatically new EI Services will be deployed or goal oriented improvement programmes will be

initialized

IT Basics for Supply NetworksIT Basics for Supply Networks

Thank youfor your attention!


Farbpalette mit Farbcodes

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it basics for supply networks it basics for supply networks/2 dr. withalm 6-aug-15

Documents

eu project coin

cdcp project model

cdcp sub project poc

cdcp main project

european automotive

motivation coin

goals of coin

coin multiplier