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Implementation Experiences: Oracle Manufacturing Analytics

Daniel Allen – Qualcomm - Director, IT

Eric Lloyd – Qualcomm - Systems Analyst, Senior Staff

Harry George – Oracle - Sales Consultant

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1. Consolidate manufacturing data to provide ultimate business value

2. Leverage existing BI Applications investment

3. Focus on strategic, top-down business analytics

Manufacturing Analytics

Themes

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Headquarters – San Diego, CA

Offices – Worldwide

Employees – 31,000

Key Business Areas:

− CDMA Chipsets

− Technology Licensing (IP)

− Snapdragon Processor

FY 2013 Revenue $26.3B – Up 9% YoY

FY 2014 Q3 Earnings Growth – 41.6% YoY

Qualcomm Overview

Highlights

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2009

• OBIEE 10g

2010

2011

• OBIEE 10g

• BI Applications 7.9.6.2

2012

2013

• OBIEE 11g

• BI Applications 7.9.6.3

2014

• OBIEE 11g / Noetix replaces Oracle Discoverer

2015

Oracle BI stack at Qualcomm

Increasing OBIEE and OBIA footprint

Corp. Finance

Spends, Finance

GL and Revenue

Corp. Finance

OBIEE

OBIA

Inventory,

Service, Planning

and Quality

Carousel reports

Corp. Finance

Spends, Finance

GL and Revenue

BU Expansion,

Projected Spends

QMT Noetix

Carousel reports

Corp. Finance

Inventory,

Service, Planning

and Quality

Spends, Finance

GL and Revenue

Corp. Oracle

Answers with

Noetix GV

Asset Analytics,

R12 Integration

QMT Noetix

Carousel reports

Corp. Finance

BU Expansion,

Projected Spends

Inventory,

Service, Planning

and Quality

Spends, Finance

GL and Revenue

• OBIEE 11g

• BI Applications 7.9.6.4

Corp. Oracle

Answers with

Noetix GV

Asset Analytics,

R12 Integration

QMT Noetix

Carousel reports

Corp. Finance

BU Expansion,

Projected Spends

Inventory,

Service, Planning

and Quality

Spends, Finance

GL and Revenue

Manufacturing

Analytics

Conflict Minerals

Corp. Oracle

Answers with

Noetix GV

Asset Analytics,

R12 Integration

QMT Noetix

Carousel reports

Corp. Finance

BU Expansion,

Projected Spends

Inventory,

Service, Planning

and Quality

Spends, Finance

GL and Revenue

Manufacturing

Analytics

Conflict Minerals

Exalytics

• Exalytics

6 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

BI Applications

Rapid Performance Insight

CRM ANALYTICS

ORACLE BUSINESS INTELLIGENCE FOUNDATION OTHER OPERATIONAL AND ANALYTIC SOURCES

SOURCE ADAPTERS:

SALES

• Pipeline Analysis

• Forecast Accuracy

• Up-sell/Cross-sell

• Cycle Times

• Lead Conversion

• Sales Team Effectiveness

MARKETING

• Campaign Effectiveness

• Customer Insight

• Product Propensity

• Market Basket Analysis

• Campaign ROI

SERVICE &

CONTACT CENTER

• Service Effectiveness

• Customer Satisfaction

• Resolution Rates

• Service Rep Efficiency

• Service Cost

• Service Trends

PRICE

• Price Segments

• Price Waterfall Analysis

• Deal Life Cycle

• Deal Desk Analysis

• Product Pricing Performance

LOYALTY

• Member Demographics

• Membership Trends

• Promotion Cost

• Promotion Effectiveness

• Points Analysis

ERP ANALYTICS

FINANCIALS

• General Ledger

• Accounts Receivable

• Accounts Payable

• Cash Flow

• Profitability

• Expense Management

PROCUREMENT &

SPEND

• Direct & Indirect Spend

• Buyer Productivity

• Contract Compliance

• Supplier Perf.

• Purch. Cycle Time

• Employee Expense

SUPPLY CHAIN &

ORDER MGMT

• Revenue & Backlog

• Inventory Analysis

• Fulfillment Status

• Customer Status

• Order Cycle Time

• BOM Analysis

PROJECTS

• Project Funding and Budget

• Product Cost

• Project Revenue

• Project Billing

• Project Profitability

HUMAN

RESOURCES

• Employee Productivity

• Compensation

• Talent Management

• Recruiting Analysis

• Learning Analysis

• Workforce Profile

MANUFACTURING

• Plan to Produce

• Work Orders

• Inventory and WIP

• Quality

• Resource Usage

• Bill of Material

• Costing

• Kanban

ENTERPRISE

ASSET

MANAGEMENT

• Maintenance History

• Maintenance Costing

• Asset Genealogy

• Breakdown & Preventive

• Quality

• Inventory

7 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

Manufacturing Execution

• Provides executives, operations managers, productions supervisors with a

broad overview of performance across the plant operations

• Discrete, Hi-tech, OSFM, Repetitive and Process Manufacturing

Quality

• Manufacturing Quality, both discrete and process: test plans, collection

elements, test results, process samples, process specifications and process

specification test results.

• Root cause analysis of Inspection plans and quality test results

Oracle Manufacturing Analytics Insight into the Plan to Produce Process

8 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

Costing

• Manufacturing cost breakdown

• Cost variances helps with root cause analysis

• Extends Manufacturing costs reconciliation with GL

Planning

• Forecasts and forecast accuracy, along with production to plan adherence

and support for hard and soft pegging of demand and supply

Inventory and Kanban • Lot analysis and serial control tracking

• Inventory transactions by lot, Inventory aging, excess and obsolescence

• Kanban performance tracking and kanban replenishment cycles

Oracle Manufacturing Analytics Insight into the Plan to Produce Process

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San Diego facility for board build, final assembly, unit provisioning and test

− 5 advanced SMT lines, various assembly areas

Potential to expand to various contract manufacturers serving APAC market

Produce hardware for Qualcomm Engineers and External Partners

− Prototype devices (phones/tablets), test boards, emulators, NPI/first run emerging consumer products

− Support “early entry” of product launches and global market for devices

− Facilitate in-house build process by managing material and resource costs

High mix, low volume discrete manufacturing

− Dynamic demand / BOM requirements based on customer requests and approved components

− Enablement of Qualcomm’s time-to-market business advantage – improved turnaround time

− Primary goals are flexibility, delivering to customer schedule and product quality requirements

Background

Qualcomm Hardware Manufacturing

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Qualcomm’s Manufacturing Applications

Manufacturing Systems

In Place BI App

Manufacturing App

Legend:

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Single Source of truth for all manufacturing data

− Streamline overall reporting solutions and data gathering efforts

Support operational and KPI-base reporting needs

Elimination of high cost queries against transactional systems

Movement toward strategic, top down management tools for manufacturing

Provide executive visibility and access to key business data

Reduced inventory costs and production delays

Improved productivity and product quality

− Better quality, elimination of waste, smoothing of operational processes

Implementation

Expected Value / Benefit

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Partner with Oracle and KPI Partners on a Proof of Concept

BI Steering Committee approval for project and investment

Implement out-of-box Manufacturing Analytics BI Application

Add ETL, RPD, and Web Cat content for FactoryTalk MES data

Train manufacturing users to be self-sufficient in OBIEE report development

− Facilitate user driven reporting through bi-weekly report building workshops

Implementation

Key Steps

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kh

Manufacturing Analytics Timeline

Jan / 2014 Feb / 2014 Mar / 2014 Apr / 2014 May /

2014

June /

2014

July /

2014

Aug /

2014

Sept /

2014 Oct /2014 Nov /2014

User Training Out of Box BI App - Order Aging

- Inventory

MES Integration - SMT Aging

- Queue Metrics

- WIP Metrics

- Yield

Proof of

Concept - BI App /

QCOM Data

Steering Committee

Continued Report Development / Work Shops - Order Aging

- Inventory

The information contained in this document is subject to change without notice. This document is not warranted to be error free.

Joint Proof of Concept

• Reviewed Standard Content with Business User SME

• Determined what out-of-the-box content was useful to show

• Identified new content to add to existing dashboards

• Identified product functionality to highlight (trellis charts, mobile, etc.)

• KPI Partners conducted ETL effort for POC

• Plant leadership demonstration

• 2 joint review sessions to refine content and storyline

• Kickoff by Qualcomm IT leadership

• Demonstration showed how to get ahead of their customer issues

and to root cause problems early on in the delivery cycle

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Implementation

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2

3

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5

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BI App Implementation MES Implementation Sustaining

Re

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urc

e C

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Project Phase

Resources By Project Phase

On Shore Consulting

Off Shore Consulting

On Shore Qualcomm

Off Shore Qualcomm

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Implementation – Out of Box Manufacturing Executive

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Implementation – Out of Box Production Performance

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Implementation

MES Dashboards/Reports

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Implementation

MES Dashboards / Reports - WIP Metrics

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Implementation

MES Dashboards - WIP Metrics

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Focus on BI fundamental skill vs. OBIEE or BI Apps specific

When building a team, evaluate where complementary skills can be applied. E.g.

SOA or TIBCO developer transition to Informatica

Use consulting to jumpstart projects by leveraging BI Apps specific knowledge

Distribute/share responsibility with offshore

Leverage source system expertise and business knowledge

Implementation

Notes on Staffing / Resources

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Top down BI through use of Oracle BI at Operations Reviews

− Execs now have strategic, KPI focused dashboards that align to strategic initiatives

Exceptions are managed as they happen, rather than “after the fact”

− Manufacturing Execs are prepared to meet with their customers and have already addressed

gaps/problems

Integration of BI in to planning meetings

Operational changes are being driven

− Focus is on queue counts and durations

− Bottlenecks are being seen and addressed

Implementation

Realized Business Value

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Quarterly BI Steering Committee

− Director to Senior Director level sponsors

− Focus on 3-4 month projects

− Approve priority across numerous business units, primarily Supply Chain and Finance related customers

Monthly IT Summit

− Ensures alignment across IT system owners – e.g. Procurement , Supply Chain, Sales Ops, etc.

− Pull system related changes/concerns from BI team

− Push BI initiatives/concerns to system teams

Deliver at the Right Level

− Partner with Execs to drive BI down through their organizations

− When the boss is measuring his/her folks, those below will quickly get on board

Qualcomm BI Apps Practice

Strategic Approach to BI Implementation / Management

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Enable BI maturity in the business

− Show, rather than ask (leverage initial OOTB capabilities)

− Users only really understand BI when they can see it, especially when it’s their data

Manage ERP and BI systems as a “connected” services

− Reduction of ERP customizations allows better leveraging of BI applications

− View BI capabilities as a natural extension of ERP projects

Utilize Agile project methodologies - Scrum

− Drive change through quick releases

− Rapidly respond to changing business priorities

− Continuously improve the capabilities of your team

Qualcomm BI Apps Practice

Tactical Approach to BI Implementation / Management

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Make your customers your partners

− Make customers responsible for creating and managing their BI content

− Recognize and reward the business for positive results

Create BI solutions that are integrated in to business process

− Drive business decisions, don’t simply provide reports

− Enable more efficient services and higher product quality

Qualcomm BI Apps Practice

Tactical Approach to BI Implementation / Management

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Other products and brand names may be trademarks or registered trademarks of their respective owners

Thank you