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Overview on i2 Five.Two SCM Solution Suite. Hyun-Woong Jin Global Customer Solution Management i2 Technologies. Agenda. Introduction on i2 Dynamic Value Chain Management SCM Solution Suite Implementation Methodology Case Study. i2 Mission. $75 billion of value for the customers by 2005

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Overview on i2 five two scm solution suite l.jpg

Overview on i2 Five.Two SCM Solution Suite

Hyun-Woong Jin

Global Customer Solution Management

i2 Technologies


Agenda l.jpg

Agenda

  • Introduction on i2

  • Dynamic Value Chain Management

  • SCM Solution Suite

  • Implementation Methodology

  • Case Study


I2 mission l.jpg

i2Mission

  • $75 billion of value for the customers by 2005

    • Based on Value creation

    • The only company that assesses and monitors the values for the customers

    • $29.9 billion of value as of 2001


I2 is the undisputed market leader in scm l.jpg

i2 is the Undisputed Market Leader in SCM

“Once again, i2 Technologies is the only vendor in the Leaders Quadrant…. “

  • “i2 maintains its position by exhibiting unrivaled vision and delivering deep planning solutions tailored to vertical industry requirements”

Gartner Group Research 2001


Industry leaders are i2 customers over 80 of fortune top 1000 companies are i2 customers l.jpg

Industry Leaders are i2 Customers : Over 80% of Fortune Top 1000 Companies are i2 Customers

Automotive

9 out of top 10

GM

Ford

Daimler- Chrysler

Toyota

Volkswagen

Renault

Mitsubuishi

Fiat

Honda

BMW

Hyundai Motors

Chemical

6 out of best 10

du Pont

Dow Chemical

Monsanto

Oxychem

Union Carbide

Sherwin-Williams

GE plastic

Eastman

Rohm & Haas

Polimeri

Computer

10 out of top 10

Dell

IBM - PSG

HP

Apple

Compaq

NEC

Acer

Gateway

Micron

Toshiba

Semiconductor

15 out of top 16

Intel

Samsung Elec.

Texas Instruments

Motorola

Toshiba

Philips

Micron

Hynix

Advanced Micro- Devices

Amkor

Fujitsu

IBM

National Semi

NEC

On Semi

STM

Metal

6 out of top 6

Nippon Steel

POSCO

British Steel

US Steel

LTV

Timken Steel

Data Networking

5 out of top 5

Cisco

Nortel

3COM

Nokia

Lucent

Yellow : i2 Customer


I2 korea l.jpg

i2 Korea

  • Started on Feb. 1997

  • Organization : 50 Employees – Pre-Sales / Sales / Localization / Consulting / GCSM

  • Korean Customers :


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Agenda

  • Introduction on i2

  • Dynamic Value Chain Management

  • SCM Solution Suite

  • Implementation Methodology

  • Case Study


Introducing dynamic value chain management dvcm l.jpg

Introducing Dynamic Value Chain Management (DVCM)

  • It is businessphilosophy

    • Like “Total Quality Management” was back in 80’s

  • The main goal is to allow business partners to better collaborate with each other to eliminate the inefficiencies not only within the companies but also between their boundaries to achieve mutual benefits

  • It embodies workflows, methodology and enabling technology (software) to help value chains better compete in the marketplace

    In the end, it is value chains that compete against each other in the marketplace.


Velocity the key weapon against variability l.jpg

Velocity the Key WeaponAgainst Variability

Monitor

Velocity

Act

Decide

  • How well you fight variability depends on the speed and quality of the following cycle

Speed and quality depend on your internal

n

capability and the cooperation of your customers

and suppliers


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DVCM Basics

  • DVCM monitoring characteristics

    • The ability differentiate important from unimportant

    • Track variability within your company and outside your company

    • Focus on tracking the appropriate variables.

    • Forecast and Predictive monitoring.

  • DVCM Decision Making Characteristics

    • Integrated decision support at the strategic, tactical and execution level

    • Decision making response at the speed of business

    • Constraint driven, multidirectional planning/scheduling

    • Iterative multi participant planning, supporting what-if scenarios

    • Event Based Planning to enable realistic commitment

  • DVCM Execution Characteristics

    • Enable multi company transaction/state management

    • Enable embedded decision-making within an execution workflow

    • Enable alerts to facilitate monitoring of execution to close the DVCM cycle


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Dynamic Value Chain Management Funnel


Erp vs dvcm l.jpg

ERP

Single division only

No multi Company processing

Very slow processing

Can not scale

Not open

Antiquated processes

DVCM

Total Company

Total Value chain

Realtime processing

Highly scalable

Service architecture

100% pull system

ERP vs DVCM


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Dynamic Value Chain Management:The Solution


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DVCM

Different ways to go to market with i2 Five.Two solutions

i2 SRM

i2 SCM

i2 CRM

Solution

suites

i2 Factory

Planning &

Scheduling

i2 Collaborative

Supply

Management

i2 Service Management

i2 Transportation,

Distribution &

Logistics

i2 Collaborative

Demand

Management

Solutions

  • Factory Planning

  • Scheduling

  • Allocation Planning

  • Master Planning

  • Supply Collab.

  • Profit Opt.

  • Forecast Collab.

  • Promotions Collab.

  • Merchanidise Planning

  • Forecasting

  • Category Price Opt.

  • Markdown Opt.

Business

process

workflows

Products:

Supply CollaborationSupply Chain Planner

Merchandise AllocatorReplenishment Planner

Demand FulfillmentInventory Visibility and Execution

Scenario Analyzer


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Agenda

  • Introduction on i2

  • Dynamic Value Chain Management

  • SCM Solution Suite

  • Implementation Methodology

  • Case Study


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Some Trends in Supply Chain Management

Yesterday’s Critical Success Factors

Today’s Critical Success Factors

  • Pull environment

    • Power with Consumers

  • Collaborative Planning

  • Event driven planning

  • Hybrid supply chains

    • Made-to-stock, Made-to-order, Configure-to-order

  • True understanding of demand shaping factors such as pricing, promotions, and product lifecycle

  • Collaborative Inventory Management over value chain

    • VMI, Channel inventories

  • Competing supply chains

  • Push environment

    • Power with Manufacturers

  • Enterprise-centric planning

  • Fixed time period planning

  • Made-to-stock supply chains

  • Buffer inventory to safeguard against demand variability

  • Inventory managed within enterprise or pushed to suppliers

  • Competing companies


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ERP vs SCM

- ERP is a tool providing Backward Visibility by automating Account based

Transaction.

- APS is a tool providing Forward Visibility by optimizing the utilization of the

resources in Supply Chain to maximize the customer satisfaction.

Advanced Planning System

Enterprise Resource Planning

  • Transaction processing

  • Planning and optimization

  • Generating historical reports

  • Optimal execution with velocity

  • Answers “What did we do?”

  • Answers “What should we do?”

  • Designed for internal company use

  • Enables multi-enterprise eCommerce


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SCM Enabler: APS

  • APS(Advanced Planning System) is used to find the “optimal” solutions given competing constraints...

  • Return on assets

  • Profitability

  • Customer service

  • Fixed assets

  • Capacities

  • Inventories

  • Lead times

  • Labor

  • Government requirements

  • Supplier capabilities

  • Process variability

  • Labor productivity

  • Overtime

  • Premium Freight

  • Sales incentives

  • Rebates

  • Production volume

  • Production mix


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APS is Based on Some Simple Concepts...

  • Synchronous manufacturing and the theory of constraints

    • simultaneous consideration of constraints (material, capacity, demand, labor, setup, etc.)

    • coordinated material release and synchronized schedules at each point in the process

  • Advanced warning of problems

  • Extensive what-if analysis for dealing with process disruptions (i.e. downtime, absenteeism, late material deliveries, demand mix and volume volatility)

  • Interactive problem solving and optimization

    • Marrying the knowledge of the human planner with the speed of the system

  • Automatic problem solving and optimization

  • leverage existing legacy systems

  • Speed

  • Sequential Planning → Concurrent Planning


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What is APS (Advanced Planning System)?

Develop an accurate,

reliable view of market

demand by identifying

market trends

and predicting changes

in customer preferences.

Ensure that the

enterprise is

prepared to meet

the forecasted

demand by

generating a

constrained,

optimal supply plan

Demand

Planning

Value

Supply

Planning

Provide fast, accurate,

and reliable delivery

commitments to

customer orders, and

manages these

commitments in a

profitable way.

Velocity

Visibility

Demand

Fulfillment

APS involves the effective anticipation market demand, the optimal positioning of enterprise resources to meet demand, and the efficient fulfillment of demand as it is realized.


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SCM Solution Footprint

Demand Planning

Supply Planning

Demand Fulfillment

Forecast and Manage the accurate and reliable market demand

Make an optimized Supply plan against the given demand (Product,Material,Capa, Logistics..)

Demand

Forecasting

DP

Allocation and Order Promising based on customer classification

Forecast

Supply Allocation

Forecast

Netting

NettedForecast

Allocation

Planning

Operational

Planning

DF

DF

Order

Promising

FP

SCP

FP

Supply Plan/Allocations

DF

Latest Available To Promise

Supply Plan

Order

Planning

Production and material replenishment plan per each line/facility

Order

Creation

New Orders, Promise Information

Frozen Plan

FP

SCP

FP


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Benefit

Improved forecasting accuracy based on consensus.

Reduction of the inventory

Demand Planning

  • Objective

    • Develop an accurate, reliable view of market demand based on the understanding how products are organized and how they are sold

  • Characteristics

    • Providing the global visibility.

      • Multi-Dimension view

      • Multi-Hierarchy view

    • Collaboration to make the consensus.

      • Statistical Estimation or Simulation

      • Pick Best

      • Tracking Forecast adjustment


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Master Planning

  • Objective

    • Generate an optimal supply plan (Global Capacity Plan, Product Mix, Material Plan, MPS, Logistics Plan) that helps the enterprise to position its resources to meet the forecasted demand generated by demand planning process

  • Characteristics

    • Planning Validity and Optimality

      • including production, distribution, transportation, procurement.

    • Planning Velocity

      • memory resident architecture to execute the planning calculation

      • iterative What-if simulation

      • considering diverse objective (facility utilization, inventory, order promising, etc.)

  • Benefit

    • Improved Profitability

    • Improved Facility Efficiency

    • Reduced WIP


Slide24 l.jpg

Demand Fulfillment

  • Objective

    • Provide fast, accurate, and reliable delivery date response to customer orders, and to manage this activity in a profitable way.

  • Characteristics

    • Dynamic Order Fulfillment

      • promise on a dynamic, real-time supply plan

    • Various Model for Customer/Product Allocation

      • customer/product based allocation to manage the order in a profitable way

    • Forecast Netting

      • prioritizing demands for the optimal allocation

  • Benefit

  • Improved Order Promising Capability

  • Improved Customer Service


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Production Planning / Scheduling

  • Objective

    • Provide PCT for each order and the detailed schedule for each facilities by considering all the constraints on facilities, tools, materials.

  • Characteristics

    • Generating a plan considering multiple constraints.

      • Facility Capacity, Tool, Order Priority, Alternate Material, Batch, etc.

    • Scheduling

    • Issuing Work Order

      • Daily,Shift, Facility

    • Considering Setup time

      • Sequence dependent setup time

    • What-if Simulation

  • Benefit

    • Improved Facility Efficiency

    • Prompt response on Changed Order

    • Reduced Cycle time

    • Reduced WIP


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Average Quantified Benefits Range of SCM (Industry General)

  • Increase customerservice 5% to 15%

  • Increase throughput 2% to 5%

  • Reduce operating expenses10% to 50%

  • Reducelogistics spend 5 – 20%

expenses

revenues

ROA

assets

  • Reduce inventory (raw, WIP, FG) 10% to 25%

  • Reduce planning cycle times 70% to 95%

  • Reduce order lead times 10% to 40%

  • Reduce production lead times 10% to 50%


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Agenda

  • Introduction on i2

  • Dynamic Value Chain Management

  • SCM Solution Suite

  • Implementation Methodology

  • Case Study


New innovation methodology l.jpg

New innovation methodology

  • Tinkering Approach

  • Transforming Approach

Visioning

To-Be

Process

Design

Solution

Package

Selection

Project

Implementation

Process Consulting Firm’s Involvement

Solution Provider’s Involvement

To-Be

Process

Design

Visioning

Project

Implementation

Solution

Package

Selection

Process Consulting Firm’s Involvement

Solution/Concept Provider’s Involvement


I2 implementation methodology tmpm trade matrix project methodology l.jpg

i2 Implementation Methodology:TMPM (Trade Matrix Project Methodology)

Business Release Activities

  • Establish implementation strategy through Value Assessment (VA) or Strategic Opportunity Assessment (SOA)

    • Presents As-Is analysis and implementation road map

    • Presents implementation benefit analysis (by specific value)

  • Phase implementation strategy byBusiness Release Methodology

    • Break down implementation project into manageable phaseswhich are called Business Release (BR): 3~6 months

    • Each BRdefines clear Business Target (ex: inventory reduction)

    • Rapid implementation strategy which focuses on realization of specific business value-return

  • Use ofTemplate

    • Provides industry specific SCM solution template

    • Best Practice, Test Plan,Data, and Documents

    • Reduces implementation period

VA /

SOA

Mobilize

Design

Develop

Accept

Go Live

SIA

Less than 6 Months


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i2’s Approach to Integration

  • Through its 9000+ customer implementations, i2 has built a good understanding of various aspects associated with integration.

    • i2 has come up with a framework that integrates not only i2 internal systems such as SCM, CRM and SRM but also external systems such as ERP and Legacy systems.

  • Integration needs to be flexible and should allow

    • Specification of the workflow steps to follow

    • Configuration at each stage in the workflow based on specific business needs

  • Integration needs to be extensible

    • Objective is not only to deliver fully integrated solutions of i2 products covering SCM, CRM and SRM, but also to provide a solution to integrate seamlessly with other packaged applications and legacy infrastructure

  • The goal is to adopt an integration approach and architecture for integrating diverse systems that will become an integration advantage to customers


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Common Integration Services

  • CIS Framework is an i2 abstraction on top of many underlying integration platforms (such as webMethods, Informatica)

    • It is a set of services enabling enterprise applications to participate in integrated environment

    • List of services: communication, logging, monitoring, data transformation, workflow design & runtime, single sign-on, etc.

    • Complete integration framework to interact with any i2 product or 3rd party system.

    • It is specifying common meta-data format used to simplify TMAPI based collaboration.


I2 integration architecture l.jpg

i2 Integration Architecture

Role based Common User Interface

OMx

IMx

ERP

Sub-system

(SAP)

Legacy

Sub-system

(OS390)

Design Source

Sub-system

SRM

Customer

Management

Sub-system

CRM

Planning

Sub-system

SCM

Transactional

Platform

Explore

ODS

Work

flow

ETL-Bulk Data Transfer (back) Bus

Enterprise Messaging (front) Bus

Common Integration Services

Firewall

Public Internet

TMOCN

Exchanges

Hosted Services

Content

FreightMatrix

Trading Partners


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Agenda

  • Introduction on i2

  • Dynamic Value Chain Management

  • SCM Solution Suite

  • Implementation Methodology

  • Case Study


  • Login