This article Summarizes the Best Practices in a Process Manufacturing Industry, which can be achieved by implementing Oracle Process Manufacturing (OPM) Solution. OPM is part of Oracle E-Business Suite of Applications
Business Challenges in a Process Industry
The following two critical Challenges faced by a Process manufacturing organization and the ways to address them using OPM are dealt with.
How to address Regulatory requirements
Regulatory requirements in a Process manufacturing industry can be achieved by implementing the following best practices.
Track your Materials efficiently so that they can be recalled at any point in time during the manufacturing process. This can be achieved by leveraging OPM features shown in the figure below. These features not only enable your organization to track your Materials but also address your Regulatory and Compliance requirements.
Create precise control over the Inventory and Manufacturing Process
Achieve precise control over your Inventory and Manufacturing process by
Tracking the movement of the materials between your Inventory warehouse and your shop floor
Scale production batches up or down to meet the changing demand.
Update production raw material issue and inventory receipts in real time and track Inventory items precisely
Implement Detailed Classification of Item & location
Enable Lot Control on an Item for easy traceability
Enhance Real Time Data collection
Enhance your data collection on the formulations and recipes by adopting real time data collection thru RF hand held devices which can push data into your OPM system while you are
On the Shop floor
In the Warehouse
In the Loading Dock
Leverage Oracle Built-in Device capability and Operators Workbench
OPM Built-in Mobile Interface
Manage Product consistency
Any Process manufacturer has to ensure that the product that is developed is consistent over its entire life cycle to meet Customer satisfaction. Any deviation in this will not only lead to customer complaints bus also compliance violations. Strict compliance requirements of products can be addressed by enhancing the quality monitoring procedures of your Product development. The following features (shown in the table below) of OPM solution can help you control the quality of Products manufactured by your organization and also meet your compliance requirements.
Leverage OPM’s Integrated Quality Management
Integrate quality checks in production process using Automated sampling and approval workflow
How to Achieve Operational excellence
Achieve Operational excellence by maximizing Production efficiency
Use following OPM Process Execution and OPM Production Scheduler features (show in table below) to increase your Operations efficiency
Optimize Cost & improve margin by using following OPM Cost management features
Capture precise product costs and monitor actual product costs
Optimize product cost structure by minimizing ingredient costs
Use Multiple cost methods and improve inventory valuation
Conduct detailed cost analyses for current and historical purchased material costs, applied resource costs and batch costs
In process improvement, a SIPOC (sometimes COPIS) is a tool that summarizes the inputs and outputs of one or more processes in table form. The acronym SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers which form the columns of the table.
When we want to start some process management or improvement activity, it’s crucial to get a clear overview of the top level stages of the process. SIPOC helps provide a natural but structured way to discuss a process and get consensus on what it involves before drawing process maps.
SIPOC is often presented at the outset of process improvement efforts such as Kaizen events or during the “define” phase of the DMAIC process.
It has three typical uses depending on the audience:
To give people who are unfamiliar with a process a high-level overview
To reacquaint people whose familiarity with a process has faded or become out-of-date due to process changes
To help people in defining a new process
SIPOC is best accomplished in Team Work and Brainstorming Sessions. To conduct a successful SIPOC session, first provide participants a brief overview of the SIPOC Process, Purpose, Tools/Templates, and especially the keys to an effective SIPOC.
SIPOC Diagrams are very easy to complete. Here are the steps to follow:
Create an area that will allow the team to post additions to the SIPOC diagram. This could be a transparency (to be projected by an overhead) made of the provided template, flip charts with headings (S-I-P-O-C) written on each, or headings written on post-it notes posted to a wall.
Begin with the process. Map it in four to five high level steps.
Identify the outputs of this process.
Identify the customers that will receive the outputs of this process.
Identify the inputs required for the process to function properly.
Identify the suppliers of the inputs that are required by the process.
Here is a simple example of SIPOC for an Automobile Repair process:
In line with the above example, Oracle Hyperion Planning Application (a web-based Planning and Budgeting Solution that integrates Financial and Operational Planning Processes) is explained through SIPOC
Benefits of Using SIPOC Analysis
SIPOC is an effective visual tool for defining a process by identifying key activities, outputs and inputs of the process, which gives an overall view of the business scope and enables all team members to view the process in the same light.
It provides an understanding of the various process steps and process owners that make up the system for the stakeholders, project sponsors and team members, giving clarity on the scope of the process at an early stage in the project.
It associates together the suppliers and customers with the main process, to study and investigate as a whole body, thus analyzing and developing the system from a comprehensive view.
It quickly and easily captures the current state of the organization and processes in question, and defines the improvement efforts.
About the Author: Remesh Padmanabhan is a Senior Functional Consultant, Oracle Hyperion Platform, at KARYA Technologies. He is an Accounting Professional with more than 25 years of experience in serving various industry verticals such as Manufacturing, Automobile and IT. His specializations include Quality Control Measures like Six Sigma, ISO 9001 Standards and Business Continuity Management. Remesh is an avid reader and he likes to watch classic movies.