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Release 12 Field Readiness Workshop

Flow Manufacturing

Valerie Dubois - Flow Mfg Product Strategy Steve Morgan - Flow Mfg Product Manager

Copyright 2006, Oracle. All rights reserved.

Purpose: This document provides an overview of features and enhancements included in Release 12. It is intended solely to help you assess the business benefits of upgrading to Release 12. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

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R12 Field Readiness Agenda


Lean / Flow Primer Product Review Business Needs Product Enhancement details Wrap Up/Q&A

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Lean Primer

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<Insert Picture Here>

James Womack Author, Lean Thinking"


Pure and simple, lean is reducing the time from customer order to manufacturing and delivering products by eliminating non-value added waste in the production stream. The ideal of a lean system is a one-piece flow. A lean manufacturer is continuously Improving in the direction of that ideal.

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Oracle Discrete Manufacturing Solution


Cost Analysis Integrated Intelligence Productivity

Planning

Mixed Mode Mfg Execution Repetitive, Flow / ETO Project Lean ATO / CTO MTS Standard WIP Lot-Based
Sample Analyze Adjust

Real-Time WIP Visibility Model Shop Floor Contract Mfgrs

Product Lifecycle Mgmt

Warehousing / Transportation

Planned Orders Schedule Changes Component Resources


Substitutes Substitutes

Suppliers
Quality Management

Asset Maintenance

Lot / Serial Genealogy Tracking


Service

Demand Schedules Configured Order Quality Specifications

MES APIs, Direct Access

Production Status Material Availability Mfg Capacity Schedules / Changes Ship Notices Invoices / Payments

Partner Collaboration
Customer Enterprise Shop Floor Contract Mfgrs Suppliers

Flow Manufacturing -- Definition


Who is it For?
Demand-driven manufacturers in any industry

What Problems Does it Solve?

What Does it Do?

Lack of formalized, sustainable


lean processes Lack of Lean Mfg integration with core ERP data (e.g., cost accounting and order management)

Framework to document flow mfg processes Simulates and calculates flow line design Designs material replenishment processes Sequences demand directly to production line Simulates daily demand for resource planning Provides line performance metrics

Benefits:

Lean processes that are sustainable and repeatable on a global scale Speeds the introduction of new products to the Flow Mfg process Supports continuous improvement in manufacturing processes Integrated software that directly supports lean mfg / lean supply chain mgmt

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How Do I Recognize a Customer Might Need Flow?


If you hear any of the following, your should talk to your customer about flow manufacturing:

Relentless talk of eliminating waste, or Muda Aversion to lots of WIP moves, queues, etc Customer asks about TAKT time, Kanban, Value Stream Mapping,
Linearity, Balanced Production

Customer talks about Demand Flow Technology or Toyota Production


Systems

Customer ask about level loading, Heijunka, or sequencing production


based on item, order or component attributes

Customer talks about synchronizing supply, or Just in Time (JIT) supply You meet or hear about a Sensei, Lean Evangelist or Lean
Champion

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Oracle Flow Manufacturing Solution


Value Stream Analysis

Lean Planning
Lean Execution

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Value Stream Analysis


Best of Breed Functionality that Drives Manufacturing Flexibility and Efficiency

Value Stream Mapping

Define and associate standard processes with product families, items, or configurable models. Add alternate paths & rework loops Add standard events Identify TQC and value-add events Associate work instructions Calculate line & operation takt, and reqd resources; highlight imbalances Eliminate non value-added work, regroup events into balanced operations, add IPKs, add resources Review TQC events for mistake proofing. Create quality collection plans

Graphical Line Designer

Standard Work Definition

Standard Machine and Labor Calculations Cell Design and Operator Balancing Mistake Proofing

Mixed Model Map Workbench

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System-wide Planning, Differentiated with Inventory Optimization


Line Design TAKT time calculations, operator balancing, cell and assembly line balancing, buffer analysis for configured and standard products Identifies primary and FIFO processes, identifies pacemaker processes Kanban Planning Pull chain design, loop and supermarket sizing Supports both fixed quantity/variable interval and variable quantity/fixed interval kanban systems Demand Leveling and Smoothing Order Promising Supply Chain Planning Product family or configurable model planning. Long range plans constrained to the designed line rate, short range schedules constrained and sequenced Constrained by the line rate and forecasted mix Collaborative Planning reduces lead time and waste, improves agility, automates inventory replenishment for VMI and consigned material Inventory Optimization accounts for demand, supply, and leadtime variability when determining the point of postponement and inventory levels in the supply chain. Demand Planning calculates product family and configurable model planning percentages

Lean Planning

Flexible Component Replenishment Supports a Wide Range of Business Needs Full Support for Configured Products Kanban Execution Cards generated and printed Single and dual card kanban. One time kanbans Internal, production, supplier and inter-plant kanbans Out of the box integration with Mobile Supply Chain Apps Single step replenishment process Uses standard PO business logic to source material and communicate to supplier through iSupplier portal, fax, edi, XML or print Status of supply visible on the card, and history is tracked throughout the life of the card Synchronized Components Synchronize component pull by generating supplier and feederline kanbans based on the final assembly sequence Generate feeder line schedules directly from the parent line assembly sequence Generate a pick plan for low usage or large parts to pick components based on flow schedule sequence. Integrated with WMS

Lean Execution

Pick Components

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Advanced Sequencing and Simplified Execution Full Support for Configured Products
Production Sequencing Sequence sales orders or planned orders using simple level loading sequence rules Or create constraint based sequencing rules on any item, order, or component attribute Re-sequence flow schedules created by kanban pull or feeder line synchronization for a more optimal mix

Lean Execution

Operator Work Station

Enables a paperless factory Simplified user interface presents all pertinent information and transactions to the shop floor worker Dynamic work instructions that change as configurations vary In R12, assembly and component serial and lot numbers can be assigned at any operation and use that information during work orderless completion
Dashboards provide performance to schedule, inventory reports, on time delivery and quality metrics Linearity report and performance to schedule available within the flow application

Reporting

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Key Differentiators
Full Support for Configured Products Best of Breed Value Steam Analysis Functionality that Drives Manufacturing Flexibility and Efficiency

System-wide Lean Planning, Differentiated with Inventory Optimization

Flexible Component Replenishment Supports a Range of Business Needs

Advanced Sequencing & Simplified Execution

Part of a Complete Lean Enterprise Solution

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Biggest Flow Manufacturing Myth

Flow is harder to implement then WIP, so customers should defer it until after go live

FALSE - If a customer is ALREADY operating in a lean environment, it is


actually more expensive and time consuming to implement WIP first and then transition to flow (biggest barrier is lack of knowledge by the implementer not the product itself)

But also sometimes TRUE - If a customer has not yet physically adopted
the lean principles on the shop floor, then it may be wise to implement a discrete process first, so they are adopting one new process at once

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Want to Know More?


http://apps.oraclecorp.com/products/manufacturing.html

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Flow Manufacturing
Functional Deep Dive

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Review Business Needs Market Drivers


Enhanced Flow Execution Workstation capabilities
Extends the concept of the paperless shop floor by allowing the operator to record actual production information as it happens and improves efficiency by directly embedding the completions and quality collection transactions into the flow execution workstation.

Fixed Component Usage support


Supports fixed component usage which allows the component quantity to remain fixed regardless of the parent assembly quantity.

Maintain Schedule number when rolling Flow Schedules


Ensures that any pre-printed documentation is still valid with the rolled flow schedule.

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Flow Manufacturing Delta Summary


Enhanced Flow Execution Workstation capabilities
Record actual production details
Actual production details such as component usage , component lot / serial information and flow schedule updates can now be recorded at each operation step when the work is performed. This information will be defaulted in at schedule completion time.

Flow Schedule Completion


The ability to complete a schedule directly within the Flow Execution Workstation has been added. This can be done either via an express completion which requires no additional input from the user or a normal completion where the assembly and component information can be reviewed and/or updated prior to completion.

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Flow Manufacturing Delta Summary


Enhanced Flow Execution Workstation capabilities
Built in quality collection
The collection of quality data related to the flow operation completions and flow schedule completion transactions is now integrated directly into the flow execution workstation for seamless collection of quality data.

Support for non unit schedules


The ability to view schedules on all workstations so that even though a partial quantity of the schedule has been completed at the operation , the operator will have visibility into all uncompleted schedules.

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Enhanced Flow Execution Workstation


Setup

Ability to define set up at three levels Organization , Org / Line and Org /Line / Operation Options available are different depending on level selected.

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Enhanced Flow Execution Workstation


Setup new options

Ability to view All schedules

Control backflush method

View all schedules provides ability to view all uncompleted schedules on all operations. Backflush option determines whether all components are backflushed or only the components on the primary routing.

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Enhanced Flow Execution Workstation


Setup Org / Line

Setup at the Org / Line level showing additional options

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Enhanced Flow Execution Workstation Setup

Action selection is fully configurable within the workstation setup. User can determine which actions are buttons are which actions appear in the drop down list. Page Regions , Tab Regions , Instructions and Actions are all fully configurable. Express Complete Schedule allows fast schedule completion with minimal user input.

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Enhanced Flow Execution Workstation Process Line operation flow


Select schedule at Line Op. Assembly lot/serial required ? No Component updates required? No Yes Component lot/serial required No Mandatory line op . quality No Complete line op for schedule Yes Record quality information Yes Record component lot/serial Yes Record component usage Yes Record assembly lot/serial

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Enhanced Flow Execution Workstation Process Record Actual Production

Additional actions available are Scrap Assembly and Express Complete Schedule. Actions appear as buttons or in the action drop down list based on setup preferences.

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Enhanced Flow Execution Workstation Process Record Actual Production

Select the Update Schedule action to review or modify the Flow Schedule header information

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Enhanced Flow Execution Workstation Process Record Actual Production

. Can update Flow schedule details at any time including entering lot and serial information. Calls Inventory functions to generate lot or serial numbers.

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Enhanced Flow Execution Workstation Process Record Actual Production

. The update components button is accessible from the event page.

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Enhanced Flow Execution Workstation Process Record Actual Production

. Ability to record component usage , add or delete components and record component lot or serial information at each operations Ability to associate component serials to parent serials for serial genealogy tracking.

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Enhanced Flow Execution Workstation Process Record Actual Production

. Allows multiple lot and serial numbers to be entered for the Item.

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Enhanced Flow Execution Workstation Process Record Actual Production

. Assembly scrap information can be entered on this page including scrap amount, scrap reason and lot/ serial information.

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Enhanced Flow Execution Workstation Process Flow Schedule completions

. Express completions will attempt to complete the Flow schedule with all of the default settings. Normal completions allows for review and update of the Flow schedule header information including lot and serials. Any information changed/added at prior operations will be defaulted here.

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Enhanced Flow Execution Workstation Process Flow Schedule completions

. If component usage or lot / serial information has been recorded at a prior operation , then the list of backflush components will reflect these changes. For each component that is lot or serial controlled, can drill down and enter multiple lot / serial numbers and link those to parent lot / serial numbers for lot / serial genealogy.

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Enhanced Flow Execution Workstation Process Quality collection

Need quality screen capture

. In line quality collection can be done from the Line operation completion or Flow schedule completion transactions. If the quality plan is mandatory, then quality information must be entered before completion can be finalized.

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Enhanced Flow Execution Workstation Dependencies and Interactions


Oracle Work in Process
WIP provides support for the new completion transactions. Also the eligible operations for which components and resources will be charged are based on preference to include all operations or only actual/primary path operations. This applies to both forms and mobile.

Oracle Quality
Oracle quality provides the framework that allows viewing and entering the quality data related to flow operation completion and flow schedule completion transactions. This module is integrated with flow execution workstation to allow seam less collection of data.

Oracle Inventory
Allows recording of lot and serial numbers for assembly and components. This module is integrated to allow data recording while doing the work order less completion transaction.

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Enhanced Flow Execution Workstation Summary


The Flow Execution workstation has been enhanced to : Allow recording of actual production details at the operation level.
Provide in line quality for seamless collection of quality data. Incorporate Express and Normal completions directly into the workbench. Provide ability to view schedules on all workstations.

Benefits

Extends the concept of the paperless shop floor by allowing the operator to record actual production information as it happens Improves performance and efficiency by directly embedding the completions and quality collection transactions into the flow execution workstation so that all transactions can be executed within the workstation.

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Flow Manufacturing Delta Summary Fixed Component Usage Support


As part of the R12 release, it is now possible to add lot based components to the bill of material. A lot based component is one whose usage quantity is fixed irrespective of the build quantity of the assembly item. The following Flow Manufacturing functions are impacted :

Feeder Line synchronization Outbound Broadcast Sequencing Kanban Planning Flow Execution workstation Flow Sequencing

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Fixed Component Usage Support


Setup Bill of Materials

Bill of Materials new basis of lot to indicate fixed component usage.

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Fixed Component Usage Support


Process
Kanban Engine - The kanban engine explosion considers the item basis type
of the component when it calculates the component usage. Feeder Line Synchronization The feeder line subassemblies requirement calculations consider the item basis type. For basis type lot , the subassembly requirement is not affected by the flow schedule quantity. For basis type Item , the subassembly requirement is calculated by multiplying the parent schedule quantity with the component usage. Outbound Broadcast Sequence - component basis type affects the calculation of component requirement used in outbound broadcast sequence process. For basis type lot component requirement is not affected by flow schedule quantity. For basis type item, component requirement is calculated by multiplying the flow schedule quantity with the component usage. Flow Execution Workstation -The workstation displays the item basis type in the component details page. Flow Sequencing The Item basis type determines the calculation of component requirement for the Component Availability constraint.
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Fixed Component Usage Support Summary


The following Flow Manufacturing processes have been enhanced to include support for fixed component usage :
Kanban Engine. Feeder Line Synchronization Outbound Broadcast Sequence Flow Execution Workstation Flow Sequencing

Benefits

Supports fixed component usage which allows the component quantity to remain fixed regardless of the parent assembly quantity.

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Flow Manufacturing Delta Summary Roll Flow Schedules


Maintain flow schedule number when rolling flow schedules
Current schedule number is maintained when rolling the schedule forward so that any labels or travelers that have been printed can still be transacted against. The main business driver here is that since most customers print their documentation out ahead of time, they want to retain the existing Flow Schedule after it has been rolled so they dont have to reprint all their barcodes and travellers.

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Roll Flow Schedules


Process

When the flow schedule is rolled forward, the new schedule will now be created with the original schedule ID to ensure that any existing documentation is still valid.

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Roll Flow Schedules Summary


Maintain flow schedule number when rolling flow schedules
Current schedule number is maintained when rolling the schedule forward so that any labels or travelers that have been printed can still be transacted against.

Benefits : Ensures that any pre-printed documentation is still valid with the rolled flow schedule.

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Flow Implementation Considerations

Steps to transition to a Flow /Lean environment :


Implement a kanban pull system. Implement a Flow line. Streamline the order to Delivery process. Sequence and synchronize production.

White papers available in class to provide more detail around transitioning to Lean and how Oracles Flow Mfg capabilities can enable this transition.

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Wrap Up/ Q&A

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Flow Manufacturing

Technical Deep Dive

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Technical Deep Dive Agenda


Data Model Changes / Database Relationships Wrap Up/Q&A

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Data Model and Database Relationship Changes


New Tables
FLM_EXE_REQ_OPERATIONS This table has been added to hold component changes record for flow execution workstation FLM_EXE_LOT_NUMBERS This table has been added to hold lot number records for assembly and components for flow execution workstation FLM_EXE_SERIAL_NUMBERS This table has been added to hold serial number records for assembly and components for flow execution workstation

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Data Model and Database Relationship Changes


Modified Tables
MRP_LOW_LEVEL_CODES Added two new columns- WIP_SUPPLY_TYPE (NUMBER) AND BASIS_TYPE (NUMBER) FLM_EXE_PREFERENCES Added two new columns - BACKFLUSH_OPTION (NUMBER) and VIEW_ALL_SCHEDULES (VARCHAR2) FLM_EXE_PREF_ENTITIES Introduced two new entity types Entity Type = 7 for button action Entity type = 8 for choice list actions

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Flow Manufacturing Data Model and Database Relationship Changes

FLM: Enable Flow Sequencing This profile option is added to determine whether flow sequencing is purchased and thus enabled.

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Flow Manufacturing Changed Programs


Roll Flow Schedules Schedule number will be maintained when rolling the schedules Kanban Planning Component Basis type will be considered while doing component requirements calculations Feeder Line Synchronization Component Basis type will be considered while calculating quantity of subassemblies for which sync schedule should be created.

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Flow Manufacturing Changed Programs (contd.)


Outbound Sequencing Component Basis type will be considered while calculating quantity of components for which Kanban cards should be created. Flow Sequencing Component Basis type will be considered while computing component requirements for use in component availability constraint.

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Wrap Up/ Q&A

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Thank You
Thank You

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