Infosys’ blog on industry solutions, trends, business process transformation and global implementation in Oracle.

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March 23, 2010

Demand to Deliver Solution—Remedy for Supply Chain Cost Inflation in Hi-Tech Companies

Previous post:

"May you live in interesting times"—Chinese curse or not, this adage is truer for the recession hit Hi-Tech companies in recent times, as they struggle with challenges around shrinking margins, pressures on new product introductions, globalization and increased supply chain complexity. Our recent experience in the field has shown that Hi-Tech Clients are increasingly looking at process centered open framework driven IT investments to serve as a source of competitive advantage instead of taking a module centric approach to Enterprise Applications. The expectation is to have a seamlessly integrated, end to end ecosystem of applications that provide visibility to all demand signals, balance demand, supply and budgets in one system, reduce inventory carrying costs, enable partner negotiations and have access to concurrent analytics and Business Intelligence. The Demand to Delivery (D2D) solution jointly developed by Infosys and Oracle caters to this paradigm shift in expectations from the players in the Hi-Tech value chain. The solution comprises of 8 key process sub areas, namely—Sales and Operations Planning, Demand Management Sensing and Shaping, Strategic Sourcing, Operational Planning and Production Scheduling, Fulfillment and Warehouse Management, Logistics and Retail Execution.

What’s in it for Hi-Tech players and what is the value proposition of the solution, one might ask. The value levers for the D2D solution primarily centers on Net Revenue Improvement and Cost Reduction. In an earlier blog post on the D2D solution, we covered the operational levers through which Net Revenue Improvement can be achieved and how the D2D solution enables them. The solution can also be used derive value on the cost of side of the P&L statement and the operational levers for cost reduction primarily come under the following categories:

  • Optimized Inventory using a combination of Sales and Operations Planning, Production Planning & Scheduling
    • Complete visibility to support revenue and margin growth plans leading to Inventory Optimization
    • Optimized production plan integrated with shop floor execution
  • Higher Efficiency using Sales and Operations Planning, Strategic Network Optimization and Manufacturing Execution
    • Due to a balanced network to support strategic business objectives
    • Ability to React immediately to disruptions in the supply chain
    • Reduced manufacturing costs with integrated MES
    • Ability to Manufacture the most profitable product mix
  • Lesser Capital expenses using Manufacturing Execution System and Warehouse Management Systems
    • Ability to integrate outsourced manufacturing to reduce capital expenses
    • Improved manufacturing productivity through integrated and balanced MESIncreased asset utilization
    • Improved warehouse space, labor and resource utilization
    • Maximized utilization of labor, space and equipment
  • Lower Sourcing Cost using Strategic Sourcing applications like Oracle Sourcing, Sourcing Analytics, Price Protection and Ship and Debit
    • Online negotiations and bids with automatic recommendations
    • Cross-functional collaboration with internal and external partners
    • Sourcing knowledge capture and total cost analysis
    • Reduce sourcing event times and sourcing costs
    • Drive sustainable savings by enforcing negotiated terms
    • Improve effectiveness and efficiency of sourcing
  • Lower Transportation Cost using features of Oracle Transportation Management
    • Reduced transportation costs resulting from load optimization
    • Ability to Assess the financial impact of proposed rate changes
    • Reduced transportation costs by optimizing bid execution
    • Reduced claims management costs

While this provides a 20,000 feet view of the benefits, watch this space for more ground level details on the solution……


March 15, 2010

Is it possible to achieve "Zero" breakdown in Maintenance World?

In maintenance world when we talk of "Zero Break down" most of the time maintenance crew says that it is not possible to achieve zero break down.  So is it really possible to achieve "Zero Break down" for a Machine /Equipment?  The answer is "Yes". 

What is breakdown? :- When a Machine (M/c)is working and suddenly something fails for e.g. in case of CNC M/c hydraulic hose pipe rupture and it leads to heavy oil leakage, thus Beak down due to hydraulic leakage occurs on the M/C.
Above Failure could have been anticipated by doing regular check of hydraulic hose piping by carrying out proper preventive, predictive maintenance.
What is "Zero Breakdowns"? :- When the Maintenance Department hand over a M/C to Production Department for the Production activities, that time maintenance department can confidently say the M/C would not fail due to "Hydraulic leakage" for another 24 Hrs as they have done a proper inspection/rectification through Preventive and Predictive Maintenance on the M/C  on Hydraulic side. This 24 hrs of running time without any Hydraulic failure is said to be "Zero Break Down" in Hydraulic piping area.
 After 24 Hrs again maintenance team would take the machine in their custody to do preventive and predictive maintenance to ensure that there would not be any failure due to "Hydraulic leakage" for another 24 hrs, thus maintenance team take over the control of M/C after certain running period of the M/Cs and do preventive/Predictive maintenance to achieve "Zero Breakdown" in specific area e.g. 'Hydraulic Pipe failure'. Over a period of time by doing proper, regular preventive maintenance on almost all the areas of M/C instead of specific area leads to achieve Total "Zero Breakdown" on an asset for certain mentioned period time frame by the Maintenance department.


What is Preventive and Predictive Maintenance? How Oracle eAM address it?


Preventive Maintenance(PM):- A maintenance activity done on a machine at regular interval based on the Preventive Maintenance strategy designed by Maintenance Planning Department by taking inputs from OEM(Original Equipment Manufacturer) recommendation ,Past Maintenance experience and  from  Reliability Centered Maintenance Department,generally at the beginning of each financial year to formulate the Preventive Maintenance execution time frame (PM frequencies) . It does not change frequency of Preventive activities frequently /on ad hoc basis, based on changes and findings during inspection once the PM stagey is defined for the year, which are generally taken care by other type of Maintenance like Predictive Maintenance work.

Case 1
Preventive Activity:- Hydraulic Oil Top up on CNC M/c  once in a month
Why Preventive Maintenance required:- This preventive maintenance  is required to avoid a breakdown due to less oil level which leads to less hydraulic pressures during M/c operation,doing so you can at least achieve Zero Break down due to "Low Hydraulic Oil level", similarly you can indentify frequent failures on M/Cs and try to work on preventive measures  as motioned below
How Oracle eAM Helps to achieve Preventive Maintenance Process:-
In Oracle eAM you can generate Preventive Maintenance Work Orders automatically based on meter readings, runtime and/or calendar days. An example of meter-based preventive maintenance is your vehicle oil changes. Most vehicle manufacturers recommend that you have to change your engine oil every 3,000 miles or six months, whichever comes first. A preventive maintenance definition having combination of meter and calendar days can be defined to achieve engine oil replacement activity based on the manufacturer's recommendation.


Predictive Maintenance: - A maintenance activity done on a Machine at regular interval along with Preventive maintenance or on continuous basis inputs from online system e.g. SCADA (supervisory control and data acquisition) or based on the inputs from other sources (e.g. Machine Operator's observation)  .In predictive maintenance the  detailed analysis of the inspection data is done and based on the analysis results prediction of the Failure is determined . To avoid the Failure Machine is taken for the Predictive Maintenance  work which may involve some major overhauling or shutdown .
Case 1
Predictive Maintenance carried out along with regular PM
Predictive Activity:- Oil Inspection & inspection result's detail analysis
Preventive activity: - Hydraulic Oil Top up on CNC M/c one in a month 
Why Predictive Maintenance required: - As a part of normal Preventive Maintenance  activity  oil is topped up every month  in hydraulic power pack, in case of Predictive maintenance oil sample analysis is done in detail e.g. for presence of  metal partials, color of the oil due to contamination etc. Based on the detailed analysis of the oil if it is found that oil is getting contaminated due to small quantity of coolant leakage and it may lead to change in the oil viscosity and ultimately loss of Hydraulic pressure and thus lead to Break down in future. This failure could be avoided by informing Production department to carryout Oil replacement and arresting  of coolant leakage work as predictive maintenance work.
Case 2

Predictive Activity:- Abnormality Observation by a M/C Operator 

Why Predictive Maintenance required: -Other than statistical Method as mention in Case 1,you need a mechanism to record any abnormality observed by operator/cleaner of the machine, as they work on M/Cs on daily basis and knows it's behavior very well and they are first level people who can immediately find  any abnormal behavior in the M/Cs  e.g. suppose the hydraulic hose clamping bolts loosen due to vibration and hosepipe start rubbing against  M/Cs part , this kind of observation could be taken as input to the Predictive maintenance ,M/c could be taken for the tightening of the clamping bolts as Predictive work to avoid the failure due  to sudden rupture of the hose pipe due to rubbing against machine part.

How Oracle eAM Helps to achieve Predictive Maintenance Process :-
Using Oracle eAM and Quality module:-  You can define the collection which would collect the data during Preventive maintenance and in case of deviation in the inspection results system would automatically generate one system generated work order( Predictive work order ).
Using work Request feature:-The inputs from the M/C operators could be recoded as "Predictive work request". Also the Vibration analysis or other external Tools statistical data analysis result can be entered as "Predictive work request "by configuring request type "Predictive" and maintenance manger can approve it for the Predictive work order.


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