Oracle Advanced Supply Chain Planning
Oracle Advanced Supply Chain Planning
Table of Contents
Summary
Oracle Advanced Supply Chain Planning
Oracle Advanced Supply Chain Planning (ASCP) is a part of Oracle E-Business Suite. It is a web-based application that performs planning, managing our business issues, and balancing the supply and demand. Oracle ASCP gives a clear picture and ease of decision-making. It elaborates when and where supplies are required and what is the most efficient way to manage our inventory, purchase orders, and work orders. Using Oracle ASCP, we can identify what is required on an immediate basis and what should be kept.
Oracle Advanced Supply Chain Planning process
The flow of Oracle Advance Supply Chain starts when we collect the transactional data from Oracle E-Business Suite, and completes on changes we make according to the planning recommendations.
Collections
The process of transferring data from the transaction instance to the planning instance is called thecollection process in Oracle Advance Supply Chain Planning. The source of the transaction can be an Oracle E-Business Suite or some legacy system.
Some target and collection methods are as follows:
In Oracle Advance Supply Chain Planning (ASCP), we can create different types of plans, for example, unconstrained plan, constrained plan (enforce capacity constraints, enforce demand due dates, decision rule, and so on), and optimized plan.
Different options of planning in ASCP are as follows:
- Material Requirement Planning (MRP)
- Master Production Scheduling (MPS)
- Master Production Planning (MPP)
Oracle Advanced Supply Chain Planning
Oracle Advanced Supply Chain Planning (ASCP) is a part of Oracle E-business Suite. It is a web-based application that performs planning, managing your business issues, and balancing your supply and demand. Oracle Advanced Supply Chain Planning gives a clear picture and ease of decision-making about when and where supplies are required, and what is the most efficient way to manage our inventory, purchase orders, and work orders. It tells us that what is required on an immediate basis and what should be on hold for future dates.
The key functionalities of Oracle Advanced Supply Chain Planning
Oracle Advance Supply Chain Planning is a Planning Engine, which empowers you in decision-making. It plans your end-to-end supply chain management process using a single plan. The process initiates when we sense the demand and then we shape it while comparing the planned demand to the actual demand, and eventually respond to that demand. For planning using ASCP, we can include all the manufacturing and distribution organizations so it is easier to plan all necessary organization. The key functionalities that are offered by Oracle Advance Supply Chain Planning are as follows:
- Using Oracle Advance Supply Chain Planning, we can achieve demand-driven planning as well as reduce the risks and threats that arise in the planning process.
- Using ASCP we will sense the demand that is generated from our customers and we will respond to that demand by comparing the planned demand to the actual demand.
- Due to integration with Oracle E-Business Suite and legacy systems, it provides the optimal level of planning, which eventually gives excellence in supply chain management process.
- Oracle Advance Supply Chain Planning works on analytical processing. So it provides a real-time sense of demand and we can respond to the demand in no time due to the holistic supply planning available.
- With Oracle Advance Supply Chain Planning, we can create different types of plans like Unconstrained plans, Constrained plans (enforce capacity constraints, demand due dates, decision rules, and so on), and optimized plans.
- We can receive workflow-generated exception messages and alerts in a notification summary.
- The Oracle Advance Supply Chain Planning module stores its data in a centralized location making it easier to access the data using a web browser. Due to its centralized and web-based architecture, multiple planners can access their plans from multiple locations at the same time.
- Oracle Advance Supply Chain Planning has an extensive workbench, which gives planners an easy way to create, analyze, change, launch, and edit their plans at the same time.
Design and architecture of Oracle Advanced Supply Chain Planning
Oracle Advance Supply Chain Planning is designed and structured to meet complex demands in real time and it gives a high performance deployment due to the following effective features:
- Process-based memory allocation
- Materialized view
- Multi-thread snapshot
- Hot backup and recovery available
- Ease of integration with Oracle E-Business Suite
- Integration with legacy systems
- Centralized database for faster and easier access from anywhere
As we can see in the previous figure, Oracle Advanced Supply Chain Planning efficiently integrates with Oracle E-Business Suite as well as any other legacy instance. Data is transferred using XML to Oracle ASCP. In Oracle ASCP, there are workflows and Key Performance Indicators, and plans are set up, using which proper planning can take place. Users, customers, and suppliers can interact using their respective logins.
Processing flow of Oracle Advanced Supply Chain Planning
The process through which the information flows in Oracle Advance Supply Chain Planning is as follows:
The process starts with the creation of a new plan and ends at implantation on the source instance that is recommended by the Planning Engine. Initially, a new plan is created in Oracle ASCP that contains the information that matches the business. This newly created plan will then be launched, which makes it available for the planner to perform planning. In the next phase, the adjustments that were recommended by the Planning Engine are analyzed and applied on the source instance.
In this phase, we will launch the newly created plan so that the plan can be available for us in the planner's workbench and we can perform analysis and adjustment on the basis of the plan. Upon launching of the plan, the existing demand and supply is available to us from the source instance and modification or adjustments can be done using the result obtained from the plan.
We will get the recommendation from the plan in the forms of exceptions and we can analyze the plan on the basis of the Key Performance Indicators that are set. In this phase, on the basis of the recommendation from the plan, we will make the adjustments. The supply and demand process changes accordingly. To achieve the maximum out of the recommendation, we will run the plan in the simulation mode.
In this phase we will make the actual changes in the transactional data to define an accurate and optimal process. For example, modification of the sourcing rules, changes in the orders and cancellation on the orders, changes in the inventory according to the suggestions, and simulation.
Planning with Oracle ASCP in different business environments
Using Oracle Advance Supply Chain Planning, different types of planning can be done for different types of business, whether you are a manufacturing company that produces finished goods using its manufacturing process or a distribution company that distributes goods, which can be made within the organization or finished goods purchased from other companies for distribution. In Oracle ASCP we can create plans for both types of organizations separately.
If you are both a manufacturing and distribution company at the same time you can perform planning for your organization using Oracle ASCP.
There are various kinds of plans that can be used.
Material Requirements Planning (MRP) and Master Production Scheduling (MPS) are mainly used for manufacturing, where we can streamline and schedule our production.
Distribution Plans (DRP) are used for distribution. These plans are driven by the master production scheduling plans and material requirement plan.
Oracle Advance Supply Chain Planning is fully integrated with other Oracle EBS modules. Using Oracle Advance Supply Chain Planning we can perform manufacturing and distribution planning. Advance Supply Chain Planning can be fully integrated with a hybrid environment, where we can plan the manufacturing and the distribution at the same time.
As we can see, Oracle Advanced Supply Chain Planning is integrated with different Oracle E-Business Suite modules. As we know the Planning Engine requires information related to the supply and demand of the organization, in order to produce an optimized plan. Oracle ASCP receives information like Items, Bills of Material, Resources, Purchase orders, Work orders, and Sales orders from Oracle Purchasing, Inventory, Order management, and Manufacturing suites. In the same way, in the case of production scheduling, it returns planned orders and forecasts.
ASCP integrates with Oracle Process Manufacturing and enforces time offsets between two processes. Operation time constraint can be set between two operations while multiple operations can be executed at the same time.
Using ASCP, we can plan our raw materials and finished goods in an efficient manner. When pegging for demand, ASCP takes care of our lot expiration and shelf life, which are set for the simulation ending.
Integrating Oracle Advance Supply Chain Planning with Oracle Project manufacturing, we can plan our supply and demand by project. This can be achieved by segmenting the supply and demand by project. We can execute our plans by projects and planning group-wise, we can generate our plan orders associated with project and task numbers. We can also track our inventories by project, so we can get a clear visibility of supply and demand.
Oracle Demand Management (Demantra) generates forecast and demand priority for Oracle ASCP. For producing the forecast and priorities Oracle Demand management and ASCP should be on the same database instance.
- Oracle Bill of Material
- Oracle Shop Floor Management
- Oracle Inventory Optimization
- Oracle Purchasing
- Oracle Order Management
- Oracle Inventory Management
- Production Scheduling
- Strategic Network Optimization
- Flow Manufacturing
Hardware configuration for Oracle ASCP
Oracle Advance Supply Chain Planning has a component-based architecture by which we can use the data of demand and supply on separate instances and processing on another instance. For example, all of our sales orders, purchase orders, work orders, and receipts reside on the source instance and the processing for plans and calculation can be performed on the destination instance before we go for the core setup. It is necessary that we decide the architecture, which will either be a single machine implementation or a multi-machine implementation.
Single machine is considered to be a small implementation where source and destination are on the same machine instance. All the transactional data and plan processing is done on the same machine. No separate hardware is required in this kind of architecture. This implementation scenario is usually used for a small implementation where there is not much requirement of a separate instance for planning.
For a comparatively larger implementation where the transaction data is huge, we can use the two machine implementation structure. In this type of architecture, the transactional data that would be considered as the source will be set up on a separate instance and the destination, where planning and plan processing is done, is installed on a separate instance. This kind of implementation structure is ideal for large-size implementation; there would be less burden on the transaction machine as well as on the planning instance.
For extremely large amounts of data we can use separate machines for source and destination, and on the destination server we should also separate the planning server and Advance Supply Chain Planning Concurrent programs for high-level efficiency and performance.
Setup steps for configuring Advanced Supply Chain Planning
In Oracle Advance Supply Chain Planning, planning is done on one instance whereas the transactions are processed in another instance; so source and destination are considered to be separate instances. While we follow this scenario that the source is on one instance and the destination is on another instance, we have to keep in mind that the source and destination must be on the same database release, else if they are on different database releases, they cannot communicate with each other.
Now we will start the setup by configuring the source Instance. As seen in the previous figure, we first need to patch the source instance. For that we need to make a responsibility with SCP_TOP_4.0 menu attached to it.
The responsibility that should be created must contain the following information and specification. The responsibility name should be exactly matched when we are running the process for collections on the destination instance, else the collection program will not fetch the data properly.
The following information should be given at the time of creation of the responsibility in the source instance:
In the next step, the following profiles need to be set according to their required parameters and business process requirements of our business:
- MRP: Penalty cost factor for late demands
- MRP: Penalty cost factor for exceeding material capacity
- MSO: Penalty cost factor for exceeding material capacity
- MSO: Priority for substitute items
- MSO: Cost of using a BOM/Routing
- MSO: Penalty cost factor for late forecasts
- MSO: Penalty cost factor for late sales orders
Now after applying the profile options navigate to the responsibility of Advance Supply Chain Planner.
Enter the parameter to run the report for Create Planning Flexfield. This request will run other requests as well the ones that are descriptive Flexfield view creations.
After setting up the source, run the refresh snapshot program with your desired criteria. You can run the program for all snapshots as well as use the responsibility created with the name of Advance Supply Chain Planner. This concurrent program will refresh the snapshot of all the programs or a specific program selected in the Snapshot Name parameter.
Setting up the destination instance for Oracle ASCP
As the source is now configured, we have to go forward with the second part of setting up Oracle ASCP; that is, configuring the destination instance where the actual planning process takes place.
While configuring the destination instance, we again have to follow the same diagram through which we have initiated the setup for the source instance.
After the successful application of the patch to the destination instance, navigate to Instances from theAdvanced Planning Administrator responsibility. Select the instance and organization that needs to be planned and give the name for the collection group.
- Instance Code: This is just a three-character code, which should be unique.
- Instance Type: This defines the type of data. This can be discrete manufacturing data. Process manufacturing data and both at the same time can also be selected.
- Version: This is the Oracle application's version of the instance.
- Organization: Select the Item master organization in the organization form.
After setting up the Instance information, we will run the collection. The collection contains the following processes:
The collection process lets you collect data from the Oracle application as well as from legacy instances.
Collections in Advance Supply Chain Planning
The process of transferring data from the transaction instance to the planning instance is called the collection process in Oracle Advance Supply Chain Planning. The source of the transaction can be from Oracle E-Business Suite or a Legacy system.
The architecture of Collection is simple and it works on the following logic.
Oracle Advanced Supply Chain Planning provides different types of collection methods that reduce the collection time span. There are three collection methods:
- Complete Refresh method
- Targeted Refresh method
- Net Change Refresh method
The Complete Refresh method clears all transaction data for all business entities from the planning server and copies the new information about the user-selected entities. This method can be time-consuming if there are many planning-related activities.
As it is clear from its name, the Targeted Refresh method only updates the targeted data. The Targeted Refresh method clears transaction data for the entities that are selected by the users from the planning server, and then copies the entity information over from the Source instance. Information about unselected entities remains intact on the planning server.
- Standard
- Continuous
The standard process is a manually generated collection process through which we can run the three types of collection methods.
The continuous process is an automated process with minimal human intervention. It synchronizes the data on the planning server by verifying that data exists on the source and planning instance in a continuous system repeatedly running the type of collection that is required.
Creation of plans
Using ASCP, we can create different types of plans. For example, Unconstrained plans, Constrained plans (enforce capacity constraints, enforce demand due dates, decision rules, and so on), and optimized plans. Before we start planning our data the most crucial thing is the accuracy and reliability of the data. If our data is not accurate and clean then the suggestions of the Planning Engine will not be accurate due to the inaccuracy of the data. So before we start the planning process, we should make sure that our data is accurate.
Some common flaws that we see in the system, which cause data inaccuracy, are:
- Organization
- Items
- Bill of Material
- Resource
- Departments
- Calendar
A calendar consists of the work days. Using the calendar, we can differentiate which are working days and which are holidays.
Types of plans in Oracle ASCP
- Enforce capacity constraints:
- Enforce demand due date constraints:
- Decision rules:
In constrained plans, transportation duration is added.
An unconstrained plan uses formula and routings with high and low preferences that are effective for the date and quantity in range. For a planned order, an unconstrained plan uses only the primary Bill of Material.
Creating plans in Oracle ASCP
Navigate to the Advance Supply Chain Planner responsibility and add a new manufacturing plan in the plan Name and Plan Type.
After creating a new plan click on Save. Next, click on the Plan Options button to define the further processing options for the newly created plan.
Now we come to the Main tab where we have to select the checkboxes and values from the LOVs to make our plan work as per our desired requirement.
- Planned Items: Only those items should be considered that are planned.
- Material Scheduling Method: This will order the material as per the start date and as per order date.
- End Item Substitution Set: Using this option we can run a simulation for proper substitution.
- Assignment Set: This contains the rules for material flow.
- Item Simulation Set: Attach the Item Simulation set to plan.
- Schedule By: We can schedule the plan on the basis of sales order line using arrival date, shipping date, promise arrival and promise shipping date, and so on.
- Calculate Key Performance Indicators: To calculate the KPIs we will check this option.
- Lot for Lot: For creation of a separate supply for each demand and to avoid multiple supplies for multiple demands.
- Enable Pegging: Advance Supply Chain Planning gives you a graphical view of the demand of an item if we check this checkbox. The pegging engine pegs demand to supply.
Now we will move to the Aggregation tab, which holds the information related to plan date and buckets.
- Plan Start Date: Displays the date on which you run the plan and by default it will pick the system date.
- Plan End Date: This date is as per the defined bucket of your organization.
The options in this tab are:
- Global Demand Schedules: Enter the name of a demand schedule that is global, not organization-based.
- Organizations: Enter the organization that will be planned with the newly created plan.
- Net WIP: Discrete manufacturing job orders and planning receipts will be selected by the planning process.
- Net Reservations: If we enable this checkbox, the Planning Engine will not perform the planning for reserved items in the specific inventory organization.
- Net Purchases: All the purchase-related transactions like purchase requisition, purchase order, receipts, and so on will be considered by ASCP by clicking on this option.
- Plan Safety Stock: Safety stock will also be considered by ASCP and it plans the safety stock during the planning process.
If we enable the Constrained Plan checkbox, we have to enable either constraint by demand due date or by capacity constraints. We also have to enable values for resource constraints, capacity constraints, and so on.
Launching the plan
After the creation of our plan we have to launch the plan so that it will be available for us in the Planner Workbench.
For launching the plan, we will navigate to Names | Launch plan. A new request will be run from the request window, so we need to give the parameter for this request and submit the request.
After we press OK and submit our request, the following requests also initiate as shown in the next screenshot:
Planner Workbench
The Planner Workbench is the basic form that is used by the planner so we can analyze and edit the data that is suggested by the Advance Supply Chain Planning. Using the Planner Workbench we can see the suggested recommendation as well as edit the given information.
We can also filter out the data as per our given and written queries and criteria.
In Advance Supply Chain Planning's Planner Workbench, a drill-down facility is also available, so we can go to the transaction level to see the order history and information.
To view the newly created plan, we will navigate to the Planner Workbench, Supply Chain Plan |Planner Workbench.
The Planner Workbench offers two different tabs:
- Plans
- Queries
In the Plans tab, we see the plans that we have created. For viewing the plans in the plan region we have different viewable criteria options under View By, such as:
- Actions
- Items
- Projects
- Resources
- Suppliers
We can also view our plan in the plan region using the hierarchy tree, where we can sort the plan according to the exception messages and recommendations by ASCP. By selecting the Queries tab we can write queries and fetch the data according to our preselected requirement. These queries can be saved as well as modified and edited for future use. In the Queries tab, we have different filter criteria using which we can get the appropriate results.
Queries in Oracle ASCP
Using the Oracle ASCP queries, we can filter out our required information as per our required format.
We can create queries and save the queries for further use and processing. Using queries we can filter the data according to the following criteria:
- Items
- Resources
- Suppliers
- Exceptions
- Initiate or write a query
- Execute the query
- Obtain the result
- Start processing it
- Save and rerun for future use
The queries created can be saved as private queries or as public queries.
Queries created by any user using Oracle ASCP responsibility cannot be seen by other users or planners who have the Oracle ASCP planner responsibility attached to their users.
These queries are private to the owner or the person who has created the query as per his or her requirement.
Personal queries made by planners are normally more specific and detailed on item-level, which is specific and could be less beneficial for other users.
Public queries are queries that are not hidden from the other planners or users who have access to Oracle ASCP Planner responsibility. These queries are shared and due to being public in nature, any user can use these queries at any point to query the results accordingly.
Public queries are generally queries with generic requirements, which are normally in routine need by the planners and management.
Oracle Advanced Supply Chain Planning simulations and analysis
In Oracle ASCP we can perform simulations to see the results of our plans. Simulations give us an idea and by changing the parameters of the simulation we can get near desired results and requirements.
While simulating the plans we can add and subtract resources and quantities. We can change the machine hours and work hours, add new orders, discrete job orders, and purchase orders.
We can use the Planner Workbench to see the changes in orders along with supplier and resource capacity.
While simulating, we can plan and analyze the what-if scenario as to what would be the result of the plan if we change the supplier capacity to this level, and resource and item to this level. So we can get a clear picture of the what-if analysis.
On the basis of the simulation we can make adjustments in our plan to view the changed and updated information.
We can also make a graphical comparison between different scenarios in the plans and after making the comparison we can select the final plan. So the result in the actual scenario gets more accurate and meets the objective of planning.
Net Change plan in Oracle ASCP
Only the changed and updated plan is considered in the Net Change plan. The Net Change plan processes the outputs for only those plans that have been changed from the base plans.
The Net Change plan generates a baseline plan with the help of the Planner Workbench and we can make changes in the plan.
The Net Change process gives us two different modes to re-plan:
- Batch mode planner
- Online mode planner
Full re-plan simulation works in a different manner. It completely renews the plan unlike the Net Change re-plan process, which just processes the output for the changed plan.
In the full re-plan simulation mode, we can compare different types of plans with each other. We can even compare a constrained plan with an unconstrained plan and we can analyze the resultant output of both.
The simulation process
To start the simulation process, first of all we will navigate to the Planner Workbench and select the plan that we have created.
After we have found our plan, we now have to make a bookmark to keep track of the changes that we have made in our plan. This will help us review the processes and the changes that we have made in our plan.
After creating a bookmark, we will now navigate to the Undo Summary to check if our bookmark exists or not. It is a confirmation for us that we are going on the right track.
When we have reviewed the bookmark in Undo Summary, we will navigate to Plan and select Start online plan from the options in the plan. This will start a concurrent process through which the planner gets ready. It will take some time and then display the message Ready for Planning.
As we can see in the next screenshot, the file loading which was at 0% in the previous screenshot has now completed to 100%, and the status which was Pending on concurrent request is now Ready for Planning.
After these steps we will navigate to Undo Summary again to see and confirm the changes that we have made in our plan.
Now after entering the planned order with quantity in the supply screen, we will go to Undo Summaryagain to review the changes that we have made in the supply of a particular item.
After reviewing the summary using the Undo Summary screen, we will navigate to Batch Replan and run the request for the batch again.
Run the Comparison report between the newly created plan and the previous plan to see the difference.
Oracle Advanced Supply Chain Planning exceptions
On the basis of plans and collection, Oracle ASCP throws exception messages. These exceptions are normally system-generated alerts, which are considered to be recommendations from the Planning Engine.
The planning server only throws exceptions for those items on which we have previously assigned an exception set.
Using Oracle ASCP, we can make planning exception sets so that we can group the exceptions as per our convenience. We can create as many planning exception sets as we want, on the basis of our requirement, using the exception set form.
Assign the newly created exception set to items and resources, only for those items and resources with an exception set assigned with them.
Key Performance Indicators
Key Performance Indicators (KPIs) are a set of targets and exceptions which we set in Oracle Advance Supply Chain Planning. It automatically updates and notifies us when certain conditions meet.
In Oracle Advance Supply Chain Planning, KPIs are used to compare the plan. Some common KPIs in Oracle ASCP are:
- On-time delivery:
Subtract the number of late orders from the total number of orders in the system. Multiply the difference by one hundred and divide the result by the total numbers of the orders.{(Total number of orders - Number of late orders) * 100} / Total number of orders
- Inventory turns:
The total inventory turns annually equals the value of MDS in between the period of T1 and T2, divided by the value of the average inventory in the period of time range T1 and T2. This is multiplied by the annual number of days (that is, 365) and divided by time period difference T1 and T2.Total Inventory Turns = the Value of MDS demand in the period [T1, T2] / Value of Average inventory in Period [T1,T2] * 365 / (T2-T1)
- Cost breakdown:
- Production cost: Production cost is the sum of resource time into the resource cost in the organization.
- Inventory carry cost: Inventory carry cost is the average inventory of period into the percentage of carry cost.
- Penalty cost: Penalty cost is the late demand cost into the difference of demand satisfied rate and requirement rate into quantity demanded and multiplied with item price.
- Purchasing cost: Purchasing cost is the sum of list price into the supply quantity against the purchase order. If the items do not have the list price available then the standard cost of items will be used.
Summary
In this chapter we understood the purpose of Oracle Advanced Supply Chain Planning (ASCP). We saw how demand and supply are managed using Oracle ASCP and how to balance the purchase, production, and sales using Oracle ASCP Suite. We also saw what is the logic behind the Oracle ASCP Planning Engine, how different types of Plans for production and distribution can be made in Oracle ASCP, and how they are managed using the Planner Workbench. We had a look at the design and architecture of Oracle Advanced Supply Chain Planning as well as at the end-to-end process of Oracle ASCP and the step-by-step setup of Oracle Advanced Supply Chain Planning.
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