Kevin A. Brown Senior Business Analyst 2006 NorCal OAUG Training Day A Journey from Unconstrained to Constrained: Implementing Manufacturing Scheduling and ASCP

At a Glance  Global leader providing mission critical time and frequency solutions  Headquartered in San Jose, CA.  Offices throughout the US, as well as the United Kingdom, Germany and Malaysia  Manufacturing in SF Bay Area, Massachusetts and Puerto Rico  FY05 revenue $181M  ~800 employees

Markets We Serve Government Communications Space, Defense and Avionics Enterprise and IT Networks Wireline Networks Wireless Networks

A Sampling of Customers Telecom Government Enterprise

Oracle Environment  Hosted by Oracle On Demand  E-Business Suite CU1  Dell Servers running Red Hat Linux  Live since June 2001

Oracle Modules  Financials AR AP GL Projects FA Time&Labor iExpense  Procurement PO iSupplier iProcurement  Manufacturing INV WIP (Discrete) ENG BOM MRP  Order Mgmt/CRM OM TeleService Contracts  Miscellaneous HR ICM

Project Madison  Overall Project Goal Project Madison will implement three distinct yet interdependent modules of Oracle: Manufacturing Scheduling, Advanced Supply Chain Planning and Global Order Promising  Primary Project Goal Provide accurate Ship Dates to our customers quickly

Project Madison  Initial Rollout in our Aguadilla, PR facility Includes about 80% of production  Focus on ASCP and Manufacturing Scheduling First Fine tune GOP once ASCP and MS are stable  Use Internal Resources Primarily Gain a deep understanding of products and processes Less Expensive Longer Project Timeline

Selling It Operations Challenges

Project Challenges  Dirty Data PO & WO Dates not Maintained Sales Order Ship Dates not Maintained Short Orders Left Open (PO and WO) Inaccurate Lead Times Scrap not Scrapped  Systems and Application Issues  Team Resources  Change Management

Keys to Capacity Planning  Accurate Routings  Accurate Capacity for Machines and People

Routing Update  Existing Routings Primarily Supported Costing Only contained Human Resources Used “Transit” resource to simulate extended machine time Resources and Departments used legacy nomenclature Sample Routing Here

Routing Update  Rules of Engagement Don’t Change Standard Costs Don’t Interrupt WIP  Complex Process Steps to Model Test Operations Operator Attended and Autonomous Processes Shared Resources Batchable Resources Variable Process Times

Routing Update  Example: Test Fixture Example Here

Routing Update  >1000 Routings to Update Map Old Depts and Resources to New Depts and Resources Insert Appropriate Machine Resources Evaluate Scheduling Sequence for Depts with People and Machines  Prioritization Items Averaging > 1 Job per Month Items with Planned Orders

Routing Update  Keeping Things Simple All Updates Made on Spreadsheets

Routing Update  More Simplicity Use Standard Interface Tables and Processes Insert Statements Created Using MS Word Mail Merge Functionality -- to add new resources insert into bom_op_resources_interface (RESOURCE_SEQ_NUM,ASSIGNED_UNITS,USAGE_RATE_OR_AMOUNT,SCHEDULE_FLAG,OPERATION_SEQ_NUM,ORGANIZATION_CODE,ASSEMBLY_ITEM_NUMBER,RESOURCE_CODE,SCHEDULE_SEQ_NUM,basis_type,EFFECTIVITY_DATE,PROCESS_FLAG,TRANSACTION_TYPE ) values (10,1,0.001,1 -- need 1 or 2, 50,‘PRT',‘TT-T654/RB/GPS','STORE',NULL, 1 -- basis_type,to_date('07-SEP-2005','DD-MON-YYYY')+1/24/60,1 -- process_flag,'CREATE' ) ;

Production Cutover  Challenges Lots of Work in Process Reporting Scheduling Process During Transition  The Plan Leave WIP Alone (for now) Ensure All New Jobs have Updates Routings Tweak Capacity to Create ‘WIP Resistance’ After X Weeks Update any Open Jobs with Old Routings

Open Issues  Production Control Reorg?? Currently Personnel Segregated by Product Family  Maintaining Capacity  Fine Tuning Mfg Sched Time Fence vs. ASCP Time Fence Use of Penalties Capacity/Usage/Assigned Units

Lessons Learned  Separate Project for Routing Update  Allow Time for WIP to Fill with Updated Routings  Emphasize Clean and Well Maintained Data  Expect and Allow Changes to Standard Costs

What We Did Right  Used Mostly Internal Resources  Completely Revamped Routings  Started in Largest Plant

Questions?