DWMS Implementation Case Study 3PL

Oracle R12 dWMS Implementation
Success Story for Implementing Oracle R12 Distributed WMS
Dale Welsh, Ron Wind August, 2010
Agenda
Introduction Evaluation Process to define and deliver dWMS Implementation Infrastructure Implementation Implementation Road Map Benefits of dWMS Questions
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MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. 2010 Motorola, Inc. All rights reserved.
Introduction
Motorola Solutions is a global communications leader providing next-generation mobile communication solutions. A few products in our portfolio include, two-way radios, mobile computers, secure public safety systems, barcode scanning and wireless network infrastructure to enterprises and governments. Motorola has a global footprint with manufacturing and fulfillment facilities in the United States, Mexico, Brazil, Central Europe, Malaysia, and Israel. As we are trying to rebuild our supply chain systems footprint and because our operations footprint is global, it makes the concept of a distributed WMS all the more relevant.
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Project Background
In 2009 Motorola decided to cease the outsourcing of the Schaumburg warehousing operations and return it back to in house. Since 2005 the warehousing operations that support the Schaumburg, IL manufacturing site had been outsourced to a 3PL. With the decision to no longer outsource warehousing operations, the need for a WMS system became evident. Outsourced operations to Third Party Logistics provider Performed Receiving, Putaway, Replenishment, Picking and Cycle Counting in proprietary warehouse management system. Integrated with Motorola 11.5.8 ERP Decision to in source operations based in internal cost savings
Focus on top tier WMS solution versus custom one off Fit within the long term strategic design and architecture
Evaluation
Upgrade Oracle 11.5.8 ERP to 11.5.10

Use WMS module in the 11.5.10 EBS Other regions had already upgraded to 11.5.10 11.5.8 had many extensions and enhancements to consider in regression testing Concern upgrade would take longer than original project timeline
Configure WMS module in the 11.5.8 instance

Several point releases old Significant patching required and impact to other schemas Reduced functionality as compared to R12.1.2
Implement 3rd party WMS package

Step away in long term strategic direction Software and licensing costs Increase support costs
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Evaluation
Implement Oracle R12.1.2 Distributed Warehouse Management System (dWMS)

After evaluating all four options the decision to implement dWMS was best based on the following key points:
Host ERP will still be on 11.5.8 dWMS fits into long term strategy Ability to leveraged existing internal and external resources familiar with Oracle WMS Licensing costs covered with existing 11.5.10 WMS implementation in EMEA Decoupled from ERP, no dependency on 11.5.8 patching and maintenance Quick to deploy with full WMS functionality
Weighing all the aforementioned key points, the selection of Oracle dWMS was the right choice for Motorola.
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Process to Define and Delivery R12 dWMS

Leverage EMEA Oracle WMS Implementation
Although EMEA WMS was considerably different the team analyzed what could be leveraged from EMEA in terms of design, setup and configuration, and conversion code reuse.
Fully defined customer requirements Conducted several structured workshops Very experienced in warehousing operations Bring in lessons learned from EMEA
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Stay Standard Oracle
Standard Oracle met requirements Understand new features in R12.1.2 ODI provides advantages with pre-built maps Understand how dWMS is different than WMS using Oracle standard interfaces dWMS white papers from Oracle were valuable aids
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Conversion
The section will list the conversion data that was required from 11i and from the former 3PL legacy WMS.
Open POs in 11i All Suppliers in 11i All Items in 11i (excluding phantoms, options, option class) Item Categories 11i Item costs (for cycle count ABC only, no Financial) in11i Warehouse Locators Locator max capacity from 3PL Min/Max values from 3PL for home slot items On hand values from 3PL Sub inventory creation
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Interfaces
This section will list the interfaces that were created between 11i and the dWMS system. Informatica Power Center was the approved ETL tool and therefore new maps where required for this project.
PO new, change, includes an inspection DFF flag (11i to R12) PO Receipts (R12 to 11i) Item New, Change (11i to R12) Subinventory Transfers WIP picks in 11i (11i to R12) Ship Confirm (R12 to 11i) Return to Stock (R12 to 11i) New Suppliers (11i to R12)
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Implementation
Aggressive Schedule, but Skilled Resources
Oracle Data Integrator (ODI) evaluation Recommend approach by Oracle, with provided Maps for integration No in house expertise Resistance Informatica Power Center selected Existing Integration Challenges Previous Integration between 3PL WMS and Oracle 11i Custom application acting as part ETL-forced to retain Retain file format Used open interfaces with staging table approach Five month implementation Tight schedule- condensed system integration testing and UAT Skilled resources leveraged Functionality that met all business requirements
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Deployment Ramp
Once deployed operations quickly began to realize the systems capabilities and rapidly began to ramp to normal operating transactional volumes.
The following graph illustrates the ramp up for sales order picks. Within 3 full days of application use, operations were just slightly below the target MFG picking goal.
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Post Deployment Ramp

The next graph illustrates how operations were to ramp to the target pick volumes in just 7 days from actually go live. Ramping to this volume with the previous 3PL and WMS system took over a month to accomplish.
Daily WMS Activity GMT Day

Completed Pick/Rcpt
4000 3500 3000 2500 2000 1500 1000 500 0

/2 6/ 010 1/ 2 6/ 010 3/ 2 6/ 010 5/ 2 6/ 010 7/ 2 6/ 010 9/ 6/ 201 11 0 / 6/ 201 13 0 / 6/ 201 15 0 / 6/ 201 17 0 / 6/ 201 19 0 / 6/ 201 21 0 / 6/ 201 23 0 / 6/ 201 25 0 / 6/ 201 27 0 / 6/ 201 29 0 /2 7/ 010 1/ 20 10
Pick/drop MFG Warehouse/Rcpt Total Sch MFG Goal
5/ 30
Date
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Deployment Ramp
This last graph illustrates how operations ramped with Oracle WMS compared to a previous experience with a custom WMS application utilizing an outsourced 3PL
Operation's comments:
Daily WMS Activity vs 3PL Logistic ramp
- 3PL startup was difficult, nearly zero week 1. - R12 dWMS in the first week = 3PL first month. - 3PL used a lot of OT to keep up (historically) Operations doesnt use much OT even now.
4000 3500 3000 2500 2000 1500 1000 500 0
Completed Pick/Rcpt
Total Sch
f
MFG Goal 3PL Ramp
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/2 0 6/ 10 1/ 20 6/ 10 3/ 20 6/ 10 5/ 20 6/ 10 7/ 20 6/ 10 9/ 2 6/ 01 11 0 /2 6/ 01 13 0 /2 6/ 01 15 0 /2 6/ 01 17 0 /2 6/ 01 19 0 /2 6/ 01 21 0 /2 6/ 01 23 0 /2 6/ 01 25 0 /2 6/ 01 27 0 /2 6/ 01 29 0 /2 0 7/ 10 1/ 20 10
Date
5/ 30
Infrastructure Design and Implementation

The Schaumburg, IL warehouse - 24 x 5 operation Need solution that would be scalable, provide high availability, and fit within the Motorola architecture framework Selected low cost Sun solution using Oracle Enterprise Linux on x86-64 servers First implementation for Motorola in using a smaller, yet robust Linux solution. Linux x86-64 OS platform.
Sun Green Server X4170. 2 x 2 architecture design. Load balancing for application and using hardware load balancer and database server using Oracle RAC. Oracle 11g RAC with 11g Grid (ASM and Oracle Clusterware) Warm standby DR site with Oracle data guard and Rsync for DB and file replication respectively. SAN Raid 5 for business data, and internal disks for OS binary and temp files.
The advantage of this architecture solution is providing for high availability (no single point of failure), both application and database layers are load balanced to fully utilize the hardware and incremental capacity can be added with no downtime.
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Infrastructure Design and Implementation
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Implementation Road Map

Prior to the dWMS Implementation there was only one region leveraging the capabilities of Oracle WMS.
Motorolas Alsdorf, Germany facility running Oracle 11.5.10 with integrated Oracle WMS. Other regions using 3PL WMS solutions, home grown, or 3rd party solutions Prior implementation of Oracle WMS in EMEA provided the Motorola IT staff the necessary experience to implement R12 Oracle dWMS under an aggressive time line.
The implementation of the R12 dWMS in Schaumburg, IL has provided Motorola the first successful install of a distributed Oracle Warehouse Management System, as well as provided the initial footprint of an implementation road map to get all other regions on R12 dWMS.
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EBS and WMS Architecture Prior to dWMS Implementation
Schaumburg, IL
Berlin, Germany Alsdorf, Germany
11.5.10 ERP/wWMS 11.5.8 ERP McAllen, TX 11.5.10 ERP Tel Aviv, Isreal 11.5.10 ERP Penang, Malaysia
SAP
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EBS and WMS Architecture Post dWMS Implementation
Schaumburg, IL
11.5.10 ERP/wWMS 11.5.8 ERP McAllen, TX R12 dWMS 11.5.10 ERP Tel Aviv, Isreal 11.5.10 ERP Penang, Malaysia
SAP
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EBS and WMS Architecture- Future End State
Schaumburg, IL
Consolidated R12 ERP
R12 dWMS
R12 dWMS R12 dWMS Tel Aviv, Isreal R12 dWMS Penang, Malaysia
McAllen, TX R12 dWMS
Integration Layer
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Summary
Benefits of dWMS-IT View
Decoupled form ERP, which allows for periodic maintenance on the host, while the dWMS is fully operational Regional installation approach with the application, database, and MWA server residing in close proximity to the warehouse/factory reduced the concern of data latency Patching or future upgrades to the software require localized dWMS regression testing only Low Cost, quick deployment, maintain Oracle footprint The rollout of dWMS to other regional sites provides greater flexibility in deployment options as there are no dependencies on the host R12 system. This flexibility will provide Motorola a faster return on investment and greater internal customer satisfaction and allow replicated deliveries in other manufacturing and warehouse centers.
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Summary
Benefits of dWMS- Comments from Operations
Transfer of material from location to location is significantly faster. By not having pick levels (Previous 3PL had material stored as Pallet, Carton, Case and unit). They had to change the pick level of the material if moving from pallet to unit. They could only move 1 level at a time. Transaction efficiency -Receiving is done with a hand held. Previous 3PL received all via desktop computer Shipping is simpler as only 1 screen and transaction required. Use of Quick Ship by delivery id simplified ship confirm process Picking cycle time has increased by 20%. The picking process in dWMS is faster and has reduced the need for personnel overtime.
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Lessons Learned
dWMS has unique data interface needs from the Host ERP. Separate that Dependency from WMS functions and activities. . dWMS has a great benefit in decoupling patch set and other functionality from OM ERPs. Purchasing (PO) status should be managed (open/closed/reopen) Consider using 3rd party packages, such as Optio or Loftware for document bar codes, page breaks, sorts, and text location/format. Wireless Mobile application performance focus is key to user success. Schedule a re-boot of WMA daily to clear any active user tasks. WMS is easily extendible and will require understanding of Oracle data objects. dWMS activity monitoring via MTL table referenced flags. Oracle failover and DR architecture deployed for dWMS is rather new to Motorola. To reduce complexity deployed same architecture as production A strong post go-live team is essential for the subtle issues encountered. The DBA will be very active for the first 3 months monitoring table usage and system capacity as it will all be new.
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Questions ?
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Oracle R12 dWMS Implementation

Success Story for Implementing Oracle R12 Distributed WMS

Dale Welsh, Ron Wind August, 2010

Upgrade Oracle 11.5.8 ERP to 11.5.10

Configure WMS module in the 11.5.8 instance

Implement 3rd party WMS package

Implement Oracle R12.1.2 Distributed Warehouse Management System (dWMS)

Process to Define and Delivery R12 dWMS

Process to Define and Delivery R12 dWMS

Process to Define and Delivery R12 dWMS

Process to Define and Delivery R12 dWMS

Post Deployment Ramp

Daily WMS Activity GMT Day

4000 3500 3000 2500 2000 1500 1000 500 0

Pick/drop MFG Warehouse/Rcpt Total Sch MFG Goal

Daily WMS Activity vs 3PL Logistic ramp

4000 3500 3000 2500 2000 1500 1000 500 0

MFG Goal 3PL Ramp

Infrastructure Design and Implementation

Infrastructure Design and Implementation

Implementation Road Map

EBS and WMS Architecture Prior to dWMS Implementation

Berlin, Germany Alsdorf, Germany

EBS and WMS Architecture Post dWMS Implementation

Berlin, Germany Alsdorf, Germany

EBS and WMS Architecture- Future End State

Berlin, Germany Alsdorf, Germany

McAllen, TX R12 dWMS

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