The document discusses Oracle's manufacturing solutions including Oracle BPM Suite. It provides examples of how Oracle BPM Suite has helped companies like Pratt & Whitney optimize engine maintenance processes, The Babcock & Wilcox Company improve their sales processes, and a manufacturing company streamline their accounts payable approval process. The document also discusses how BPM can help with challenges like inventory optimization, new product introduction, customer centricity, and channel operational efficiencies.

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Drive manufacturing excellence – Enable process-
centric approach for next generation manufacturers
G. Sudhir Menon
Head – Industry GTM Solution

2. 2
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. 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 for Oracle’s
products remains at the sole discretion of
Oracle.

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Today’s Agenda
1 Manufacturing Trends and BPM
2
Key Take Away
3
4
Use Cases
Oracle Middleware Solutions for Manufacturing

4. Demand Driven Manufacturing 2.0
“Four factors to drive the manufacturing sector in the near future are supply chain agility, open
standards, globali-sation and customer responsiveness, predicting there will be more investment in
people, processes and systems”

5. Business
Unit Driven
I
Internally
Focused
Externally
Focused
Cost Focused
Extended &
Cross-
Functional
Integration
Value Driven
Processes
II
III IV
Revenue Focused
Cycle of Business Transformation
Integrate
& Consolidate
Core Functions
Single Company Model
• Shared Services
• Single Instance
• Process Standardization
•Network Centric
Model
•Customer and
Channel Driven
(Outside-In)
•Supply Chain
Collaboration
•New Product
Development &
Launch
Profitable GrowthMargins
Source: AMR Research 2007
•Performance Driven Model
• Real-time Decisions (Sense and Respond)
• Knowledge Centric
• Integrated, Adaptive Processes

6. Differentiation GapBusinessDifferentiation
Time
Company Integration
III
III IV
Performance
Integration
III
III IV
Network Integration
III
III IVIT is Here
Business is
Here
Gap

7. Standardized Business Processes a Top
Priority
“IT’s Top Technology
Priorities for 2008”
32%
Of companies with revenues over $1billion say
standardizing and consolidating their IT infrastructure is a
top technology priority—more than any other.
“State of the CIO 2008” survey

8. Oracle: Driving Differentiation & Re-use
Process
Complexity
Automation
Based,
Transactional
Process Reach
Knowledge
Based,
Collaborative
Internal,
Power Users
External,
Universal
- Customer Self Service
- Network Centric Product
Innovation
- Collaborative Supply Execution
- Employee Self Service
- EDI / VMI
- Sales & Operations Planning
- Demand Sensing & Shaping
- Forecasting
- Order Entry
- Basic Accounting
- Distributed Order Management
- AP
- AR - E-Commerce
- Account Management (SFA) - Channel Management
- Employee Tracking
- Supplier Development
- New Product Development
& Launch
- Personalized Customer
Service
Differentiated Business
Processes
(20% of IT Budget)
Commodity Business
Processes
(80% of IT Budget)
Service Oriented Architecture
Business Process Mgt
Enterprise 2.0
Client/Server Architecture
Enterprise Applications

9. Driving Business Efficiency & Expansion
The Impact of BPM
Business Process
Management
Efficiency Expansion
• Competition
• Cost-Of-Goods &
Workforce
• Governance &
Accountability
• Process Efficiency
• IT Costs
• Systems Lifetimes
• Market Aggregation
• Innovation
• Expanding Supply
Chain
• Acquisition=Integration
• New service delivery
• Process Visibility

10. Customer
Relationship
Management
Sales and
Marketing
Production
Planning
Manufacturing Inventory &
Logistics
Finance & HR
SFA Product LMS
Inv
MGMT
B2B
Enterprise Infrastructure Services
(Portal, SOA, IDRS, LDAP, EAI, E-mail, IT Operations)
product SCM product DB ERPCRM
Organizational Units
Real-World Business Processes span
organizations, systems, and applications.
ERP MES
What is the Problem?
Processes
Product Configuration
Order Management
Warranty & Returns Management

11. People and Systems Work Differently
How People Work
• Creative
• Never the same
• Ad-hoc
• Collaborative
• Adaptable
• Shades of Grey
How Systems Work
• Transactional
• Standardized
• Programmed
• Processes
• Rigid
• Black or White

12. Business Process Management (BPM)
Goals
Process
BPM is a structured approach employing
methods, policies, metrics, management practices and software tools to
manage and continuously optimize
an organization's activities and processes.
BPM promotes
operational excellence
by bringing together
people, systems, information,
and
business policies
Strategy Policies Compliance
Systems People Information
12

13. Order Management Process
Enterprise Infrastructure Services
(Portal, SOA, LDAP, EAI, E-mail, IT Operations)
Customer
Relationship
Management
Sales and
Marketing
Production
Planning Manufacturing
Inventory &
Logistics Finance & HR
SFA Prodict LMS
Inv
MGMT
B2Bproduct
ERP.
SCM
producti
nfo.
MES
DB ERPCRM
BPM models, simulates, executes, manages,
monitors, & optimizes those Business Processes.
BPM Solution – Across Apps, Functions and
People
Customer
Relationship
Management
Sales and
Marketing
Production
Planning
Manufacturing Inventory &
Logistics
Finance & HR
SFA Product LMS
Inv
MGMT
B2B
Enterprise Infrastructure Services
(Portal, SOA, LDAP, EAI, E-mail, IT Operations)
product
ERP
SCM product
MES
DB ERPCRM
Organizational Units
Real-World Business Processes span
organizations, systems, and applications.
Product Configuration
Order Management
Warranty & Returns Management
Processes

14. EfficiencyVisibility Agility
BPM Value Proposition
MetricsResults
Utilization, capacity
Throughput, speed
Quality, yield, exceptions
Ease of access to data
Freshness of data
Accuracy of data
Speed to create &
change processes
Time to market
Reduced Cost
Improved
productivity/ROI
Effective resource
utilization
Better quality of service
Managed, lower risk
Compliance
Financial accountability
Lower capital reserves
Better visibility
New revenue growth
Market share growth
Increased
competitiveness
Thought leadership
14

15. Process development
and systems integration
Process
Developer
Business dashboards and
historical & trend analysis tools
Business
Owner
Process
execution and
management
Process modeling, simulation
and documentation
Business
Analyst
Enterprise
applications
and
databases
Business User
Interaction
Process
Participants
BPM : Framework for Business Optimization
15
BPM
Lifecycle
Monitor
Optimize
Business
Implement
Deploy
Execute
Model
Simulate

16. BPM ROI Drivers
Source: Survey over 200 Oracle customers worldwide, November 2007. Respondents can choose up to 3 answers.

17. Front end
Applications
Biz Processes
/ Workflows
Service
Orchestration
Implementation
Services
Business Services
(“Composite”)
Applications
Packaged/Legacy
/Custom
 BPM provides a great
abstraction for building
business systems
 SOA provides the
platform that bridges
the business processes
and operational
resources
 BPM optimizes the use
of SOA across core
business processes
that impact business
objectives
BPM increases the business value of
SOA
BPM
SOA

18. BPM Maturity and Adoption Model -
Evaluate Your Position, Create a Vision, Assess Your CSFs,
Determine Your Focus
0 1 2 3 4 5
Acknowledge
Operational
Inefficiencies
Intraprocess
Automation
and Control
Interprocess
Automation
and Control
Enterprise
Valuation
Control
Agile
Business
Structure
Process-
Aware
Generally, where we are today
Directly link
process
model and
rules to
execution
Compare
alternatives
driven by
various
optimization
techniques in
real time
Craft process
automation
and control
across the
enterprise,
customers
and trading
partners
Create a
business
performance
framework that
dynamically
links the
valuation of the
business to
process
execution
Innovate new
businesses,
products and
services
through an
agile business
structure
Model and
analyze
business
processes
Measure
and monitor
business
activities
Identify
process
owners
Integrate
activity-based
accounting
with process
steps
Establish
process
governance
Realign
process with
market
strategy
Goal-driven
processes
Source: Michael Melenovsky. Gartner Expo – Sydney - Nov 2006

19. Oracle’s Middleware Solutions
for Manufacturing

20. Manufacturing
Messaging for Manufacturing
SOA Enables Smart Innovation
i.e. Adaptive to business changes with faster development cycles , lower costs and less risks
SOA enables a cost effective , flexible
and efficient IT foundation that
promotes faster development and
lower maintenance costs through
reusable services
SOA enables organizations to
respond quickly to new customer
requirements, competition and
changing market conditions by
responsive Business-IT alignment
• Drive consistent customer interactions via
integrated service channels
• Optimally schedule resources, manage spare
parts, and deploy field personnel to reduce overall
service costs
• Uniform experience across channels by
delivering consistent quality & service for
improve efficiency
Sy
• Improve demand mgmt with consensus-based
forecasts
• Reduce cycle time / waste and optimize inventory
via single, holistic production plan
• Streamline operations and outsource portions of the
company that are not a key capability.
• Reduce time to market of new products &
services
• Improve retention through analytics & align
products with customer needs
• Personalization of products to fit their needs and
are expecting faster deliveries of these product.
• Make relationship profitability as primary
growth
• Customers are finding more options for suppliers.
Decreasing prices are a result of this globalization
and increased competition.
Cheannel
Operational
Efficiencyl
Inventory
Optimization
NewProduct
Introduction
Customer
Centricity
Customer
Centricity
Channel
Operational
Efficiencies
t
Inventory
Optimization
New Product
Introduction

21. Channel Operational Inefficiencies
Partnering Processes
Channel
Marketing
Dealers
Alliances
Service
Contractors
Partner Certifications
Partner Program Mgmt
Collaborative Selling
Partner Recruitment,
Registration, and
Profiling
Joint Business Planning
Joint Marketing / MDF
Opportunity Mgmt
Service Management
eCommerce / Order Mgmt
Performance Mgmt /
Analytics
Training
Sales Tools & Collateral
Incentive Compensation
Inconsistent business
processes
Homegrown systems &
portals
Poor alignment
with partners
Channel
Executive
Resellers
Brand Owner Channel Roles Partners
Channel
Sales
Channel
Operations
Channel
Service Franchisees
Developers
Distributors

22. BP
• Oracle BPM Suite is used to streamline client accounts payable interaction and approval
process
• Automatically assigns invoice to appropriate approvers
• Enables approval notification e-mails to curb cost reductions
• Provides a self-service Web portal for 3,000 primary vendors
• Automate and process accounts payable for over 30,000 non-recurring transactions
• 2,500 AP approvers in numerous time zones provide user support and handle exceptions for
over 10,000 vendors
• Streamline the hodgepodge of invoicing systems and approval processes
Opportunities & Challenges
• Increased turnaround, data accuracy and consistency, audit trails and quality assurance
• Cost per transaction reduced by 80%, realized ROI of 300% over two years
• Maximized cash flow and reduced personnel costs
• Eliminated data re-entry and reduced processing bottlenecks
Results
Solution Powered by Oracle BPM Suite

23. BPM polls Oracle DB
(FileNET representation)
for new invoices
After performing validation and business
logic, BPM assigns invoice to one of over
2,500 approvers and where appropriate,
sends email with a “1 click” approval button
Approver can email “1 click”
approvals or change account info,
forward, etc in the Work Portal
Approval notification emails are
sent to the approver for where
BPM approved the invoice
without human intervention
Exceptions are handled
by 30 “super users”
Paper Invoices are
routed for manual
coding in FileNET
1,000 Invoices are
mailed, faxed and
sent via EDI to the
Tulsa Processing
Center each day
FileNET Approved
invoices are
posted to SAP
for payment
Up to 3,000
vendors have self
service web portal
access
• Modify Vendor Record
• Conduct Payment
Inquiry
• Submit Electronic
Invoice
Aging reports are
generated and accessible
on demand via the Work
Portal
Accounts Payable Approval Process

24. The Babcock & Wilcox Company
• B&W deployed their new sales application using the Oracle BPM Suite
• IT and the sales force worked together to model the actual best practice
sales processes
• By combining BPM and collaboration, the sales force can quickly receive
input from the numerous parties involved throughout the various steps in
the complex sales process.
• The sales application leverages many of the existing resources currently
available in the MyB&W portal
• B&W supplies more than 40% of the coal fired capacity in the U.S.
• B&W’s sales cycles vary greatly in length of time and complexity of
the projects
• Off the shelf CRM systems were incapable of supporting the
organization’s highly specialized and geographically dispersed
sales force
• B&W desired to implement a sales application to enforce best
practices across sales processes
• New Sales Application replaced existing Lotus Notes
environment freeing up IT resources.
• Improved collaboration provides more accurate pricing,
increasing revenue
• Increased up-selling and cross-selling opportunities
“Business owners can request a change to the
process and test the actual process in moments.”
John Gerstenslager, Portal Solutions Manager
Results
Opportunities & Challenges
The Oracle BPM Suite Solution

25. DC 1 /
Customer
Consignment DC 2
Region 1 Region 2
Retail Stores
Suppliers
Finished
Goods
Contract
Mfgrs
Raw
Materials
Region 3 Region 4
Retail Stores
In-Transit
In-Transit
• Determine inventory
levels across the entire
supply chain
– Stores, including
Customer Consignment
– DCs and Warehouses
– In-Transit
– Suppliers
• Coordinate inventory
policies to reduce
inventory while
guaranteeing a desired
service level
Inventory Optimisation required - Reduce Inventory Across the Supply Chain

26. Run
plan
Demand
‘cereal’
Supply
forecast
Consensus
forecast
Run plan
Forecast
‘sugar’
Supply commit
‘packaging’
Supply commit
‘sugar’
Forecast
‘packaging’
VMI HubVMI HubVMI Hub
Visibility
SuppliersCustomer
Contract
MfgrsYou
• Extend Visibility to All Tiers
- Communicate requirements to all
contract manufacturers & suppliers
- React Faster to Supplier
Constraints
- Get visibility to supplier capacity
- Reallocate materials
- Make alternate sourcing decisions
• Reduce Obsolescence
- Understand impact of changes to your
contract manufacturer or supplier
• Reduce Non-value Added
Costs & Exception Overload
- User-configurable exceptions
- Automated exception handling via workflow
Trading partner collaboration in a Multi-Tier Supply Chain
Needed

27. Pratt & Whitney
• Oracle BPM Suite manages engine maintenance process worldwide 24/7
• Allows for better preventative maintenance – avoiding higher-cost repairs
• Eliminates extensive paperwork, manual effort and tracking
• Allow for real-time updates and comprehensive fleet-wide status tracking
• Better manage inventory on engine repair and overhaul
• Automate tracking of engine maintenance milestones
• Bridge engineering, support, operations and finance to ensure better customer
support and satisfaction
Opportunities & Challenges
• Better visibility into preventative repairs
• Reduced errors on tracking and manual input
• Cost avoidance savings – engine performance monitoring saves per event
• Allows for fleet-wide issue tracking – ID bad parts or processes holistically
• Customer satisfaction – over 100% increase in satisfaction score
Results
Solution Powered by Oracle BPM Suite

28. Customer
Enters Request
for Service
Order
Oracle BPM
Automatically runs
Process
Tech
reviews Job
Ticket
Work is performedJob completion
notification sent
Invoice Process
begins
Customer
Delighted
Increased Cash
Flow
BPM Vision – Gold Level Value

29. New Product Introduction Process Flexibility
Unix Linux HostedWindows
Applicants HR Staffers Management
New Product Introduction
B2B
Gateway
Customer
DB
Forecasting
System
CM’s
Excel
Portal
Item
Master
Promote
Slow
Painful
Error-
prone
$$$

30. B2B
Gateway
Customer
DB
Forecasting
System
CM’s
Excel
Portal Item Mst Promote
Oracle Fusion
MIddleware
New Product Introduction
Applications are standardised as Web services
Middleware orchestrates pieces into a new application
Applicants HR Staffers Management
Unix Linux HostedWindows
Fast
Simple
Accurate
Low $$$
New Product Introduction leveraging BPM

31. POSCO Steel - Korea
• POSCO is the most profitable steel maker in the world
today steel production of over 30 million tons equating
US$19Bil in revenue.
• In 1998 transformed from state-owned company to a
privatized customer-centric company.
• Six Sigma has been the driving force in executing on
this dramatic transformation.
• Phase I re-architected all enterprise processes including
all sales, purchasing, and financials in order to become
more customer-centric. All key processes are integrated
and streamlined in Oracle’s e-Business Suite.
• The second phase re-architected core Manufacturing
Execution System (MES), from traditional mainframe to
Oracle J2EE on Linux.

32. Sample Metrics
• Took 700 developers, architects and testers requiring
24,000 total person/months. This is one of the largest
J2EE application in the world.
• Processes 9 million transactions per day.
• Built on 100% open-standard Oracle Application
Server and Oracle Database to ensure 24x365
operation and 3-second maximum response time
under all conditions.

33. MES Complexity

34. 81 plants, 2 locations, 1 integrated
MES

35. SUMCO – Silicon Wafer Mnf
• Sumitomo Mitsubishi Silicon Corporation (SUMCO) is the
world’s second largest silicon wafer manufacturer
• Key Biz Applications: SAP & Brooks Automation Manufacturing
Execution System
• Business Intelligence/ Reporting is key in the complex
manufacturing world (Statistical Process Control, Six Sigma!)
• Oracle Discoverer + Portal used for centralised plant-level
reporting, integrated with SAP Business Warehouse
• BPEL projects for Six Sigma quality processes and managing
customer requests for product modifications, leveraging SAP
Adapter to integrate Oracle BPEL with SAP
• Point to point integration using IONA CORBA was too complex
• Integration processes require human operator involvement

36. Sample Metrics
• At SUMCO BPEL automates
• QA (Quality Assurance) by firing processes to resolve
problems that originate during the manufacturing.
• Specifications Registration: Managing customer requests
for product modifications.
• Processes are complex due to
• Six Sigma requirements
• Numerous Human intervention
• Need to create Dynamic processes on the fly.
• High volume integration needs (2M records per day with
AS 400 system)

37. SUMCO’s Architecture
Order Submission /
Engineering
Documents
Enterprise Resource Planning
Manufacturing Execution Systems
Document Management
Operations /
Manufacturing
Diagnostics Pack
Adapters
Oracle Business Intelligence
Wafer Manufacturing Process
Application
Server

38. Complex Six Sigma Process

39. reduced inventory by 25%
saved $5.3M in one year through improved efficiency
improved business application user productivity by 10%
reduced financial reporting time by 50%
increased inventory turns via improved line sequencing
“In the past, we were lucky if we learned one month
later how many tires of each type we had sold. With Oracle
the quality of information has reached a completely new
level. We retrieve all sales information from the data warehouse the next day,
right down to individual customers and product details.”
-- Rami Helminen, Financial Director
Sammitr
Motors
What Manufacturing Customers are Achieving…

40. reduced new product development time by 63%
reduced inventory cost by $26M
reduced procurement costs by 14%
reduced purchase order processing time by 86%
decreased order entry costs by 40%
reduced order processing time by 83%
reduced WIP order volume by over 30%
increased inventory location accuracy to 98%
What Manufacturing Customers are Achieving…

41. • Key Takeaway

42. Vendor-Centric Model Customer-Centric Model
Homogeneity
• Organizing
principle: Vendor
lock-in
Oracle
Complete, Open &
Integrated
• Organizing
Principle:
IT as a source of
business innovation
Oracle’s Vision / Business Model

43. Business
Unit Driven
I
Internally
Focused
Externally
Focused
Cost Focused
Extended &
Cross-
Functional
Integration
Value Driven
Processes
II
III IV
Revenue Focused
Complete…..
Integrate
& Consolidate
Core Functions
Profitable GrowthMargins
Source: AMR Research 2007
Current ERP
Centric Vendors

44. Open
BEPL RBAC

45. … and Integrated
• Integrated business processes (SOA)
• Integrated user interface (Web 2.0)
• Integrated business intelligence