Integration between Service Parts Planning and Advanced Supply Chain Planning

This chapter covers the following topics:

Overview

The manufacturing facility at an OEM would have to plan the production of parts that go into the new products that they manufacture. In addition, often an OEM may include a service supply chain where defective products are returned, repaired, and sent back to the field. Also, unrepairable parts may need to be manufactured from scratch. Thus the manufacturing facility could have two sets of demands: 1) one coming from the manufacturing supply chain, and 2) a second one from the service supply chain.

However, the two business models are inherently different and require separate planning applications. Oracle Advanced Supply Chain Planning allows planning for the manufacturing supply chain, and Oracle Service Parts Planning for the service supply chain. These products can be integrated together for independent and synchronized planning, enabling the manufacturing facility to handle demand from both streams.

Independent Supply Chains

As seen below, the manufacturing (upper) and service (lower) supply chains are treated as distinct businesses, but the service organization may place orders for parts against the manufacturing organization. Typically, the Manufacturing and Service Supply chain are managed as quasi-independent businesses, and transfers or purchase orders are placed between the respective organizations.

An SPP / ASCP integration follows this approach and considers the two supply chains as independent. Oracle Service Parts Planning plans for the Service organizations, and Advanced Supply Chain Planner for the manufacturing organizations. The two would be integrated in a hub-and-spoke model, with Oracle Service Parts Planning as the hub plan feeding one or multiple Oracle Advanced Supply Chain Plans.

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Integration as seen from Service Parts Planning to Advanced Supply Chain Planning

In addition to the repair and new buy sources, in an integrated environment Oracle Service Parts Planning considers the manufacturing organizations as a source of parts. This is accomplished by including a "Transfer-from" sourcing rule in the sourcing for the Central Warehouse in the Service Parts Plan, with the source as the Manufacturing plant.

Note: The Manufacturing plant will not be planned in the Service Parts Plan.

When SPP sees the "Transfer from" sourcing rule with the Manufacturing Plant as the source, it creates a Planned Transfer for an appropriate quantity with the source as the Manufacturing Plant. This Planned Transfer is always for usable parts, and respects the applicable lead times such as the inter-organization transit time and processing lead time. It also respects the appropriate calendars, and dates are set accordingly.

Note: In service planning, repair is usually the preferred source for parts.

After repairing defectives, the service department could either procure parts from the manufacturing plant, or buy them from a supplier. Thus SPP would typically do either a "repair / transfer from manufacture plant" or a "repair / buy" decision.

Note: SPP does not support splitting (for example, manufacturing plant and new buy supplier).

Integration as seen from Advanced Supply Chain Planning to Service Parts Planning

In ASCP, the SPP plan is fed in as a demand schedule. The Plan Options > Organizations tab in ASCP contains the list of organizations planned for in ASCP, and the SPP plan is available here as a demand schedule to all organizations where the service organization places demands on the manufacturing organization.

When an SPP plan is included as a demand schedule in an ASCP plan, only the Planned Transfers with the Manufacturing Plant as the source organization should be considered as demand in the ASCP plan. This requires that the "Interplant" checkbox for the demand schedule be checked. Since this is the only supported scenario where an SPP plan would be included as a demand schedule in an ASCP plan, the UI automatically checks this box and grays it out when an SPP plan is selected as the demand schedule.

All Planned Transfers with the Manufacturing Plant as the source organization are considered as demands in the ASCP plan.

Note: The inline forecasts in the SPP plan (or the forecasts fed as a demand schedule to the SPP plan) are not considered as demands in the ASCP plan.

Demand Consolidation

In cases where SPP consolidates planned transfers to different end demands into a single transfer from the manufacturing plant, these can either be consolidated into a single demand, or considered as individual demands. Which behavior occurs is determined by the "MSC: Consolidate Interplant Demands" profile option.

If the profile is set to "By End Pegged Demand", ASCP will split the planned transfer based on the end demand quantity and plan supplies for them independently. The ranks of these individual "demands" in ASCP correspond to the ranks of the end demands in SPP.

If the profile is set to "By Demand Schedule Supply", then ASCP considers the consolidated Planned Transfer as a single demand, and plans supply to meet that demand. The rank of this demand in ASCP is set to the rank of the highest end demand that it goes to.

Consideration of Planning Method and Plan Type

There is no difference in behavior. Depending on the plan type, all eligible items based on the Planning Method setting are be selected for planning.

Consideration of Supersession

SPP will only request manufacture of the highest revision. Beyond this, ASCP will not consider the supersession chain. It will look at the BoM of the highest revision and plan manufacture of the same.

Constrained Versus Unconstrained

When the ASCP plan is run in a constrained mode, resource constraints are respected for planning demands coming from either stream. Thus, when the ASCP plan is run in constrained mode, parts sourced from the Manufacturing plant to the Central Warehouse in the SPP plan are constrained by the capacities in the plant, even if SPP is run in an unconstrained mode.

Release of Planned Orders

Repair (and new buy) orders are released from the SPP plan, and make and buy orders are released from the ASCP plan.

Note: Since both SPP and ASCP can theoretically have Buy sourcing rules, there might be New Buy / Purchase Orders against the same supplier for the same item in the two plans. These will not be consolidated.

The Planned Transfer from the Manufacturing Plant to the Central Warehouse is enabled for release in SPP. When the Planned Transfer is released, IR-ISO pair is created. In the next planning run (after collections), the IR is interpreted as a supply in SPP. The sales order is read in as a demand in ASCP, and that constitutes the execution document to ship the supply of parts to the Central Warehouse against.

Reporting

If an integrated reporting interface is required for both ASCP and SPP plans, APCC can be leveraged to build such reports.

Should also include a section about Release of Planned Orders (IR-ISO being created in SPP, and being the execution document in ASCP).