User:Kthapelo/ORACLE Threatening SAP

History: How the manufacturing business came to assemble
Assembly lines began to appear in the mid 19th century but it was not until 1913 that the moving assembly line that is now in common practice was first put to use. Henry Ford had seen the system used to process meat in Chicago and adapted it to fit the production of the Model T automobile, revolutionizing commercial production.

The manufacturing industry strives for continuous improvement. The day that the first Model T came to the stationary worker is significant, it is certainly not the last major milestone in the development and improvement of assembly line manufacturing though the basic concept adopted in 1913 remains essentially the same.

All manufacturing follows the same general path regardless of product. Manufacturing is a cyclical process. The basic manufacturing process (SEE: Fig. 1)i1:

Fig.1 Manufacturing Cycle Model 2

The process, as illustrated, is from a very high level and each step is comprised of sub-processes. A customer and need is identified and sales and marketing places the order. Manufacturing (or production) gets the order and the material required to make the product is ordered. The product is built and shipped the customer is billed, money collected and the cycle begins again.

Ford had made the Model T in essentially the same way since it was introduced.

It was once said “you could get a Model T in any color you wanted as long as it was black.3” That worked for a long time but Ford and its engineers knew that that would not last forever. The Model A debuted in 1927 and the Model T phased out4.

Responsiveness to changing market needs is vital to successful manufacturing and this truism is even more valid today than it was in 1927.

While this is a good basic model for day-to-day operations, there are peripheral activities not shown here that keep the process (and the business) growing and progressing with the passage of time and changing market demands. Ford introduced the Model T in 1908. It (and Ford) ruled the roads until interest started to wane and competition grew in the mid 1920s.

Today, markets change with the speed of the data streaking through cyber space. While the moving assembly line vastly improved the speed of productivity in its day, it was handled manually. There are engineering students today who have only seen blueprints in frames or museums. Information is stored and transferred and manipulated and analyzed by computers, those electronic helpers that the world learned not to live without in just a few decades. Moving assembly lines are now run by computers and manufacturing software. Processes are stored and managed by computer and distribution, shipping, research and development, drawings, design and testing, business and production processes, finance, accounting and communications all are done by computer. Software that runs the system that drives the lines and bills the customer, and keeps the records, and so on and so forth has a monumental task and must be robust enough to address the needs of various functionality requirements.

ORACLE: What is it and what can it do?
ORACLE is gaining ground on SAP (Systems, Applications and Products in Data Processing), which currently occupies the number one spot in market software market. As the end-to-end business software in the medium to large general manufacturing Oracle is giving SAP a run for its money and SAP often.

When a business chooses ORACLE as its business software or ERP system it that business is making an enormous commitment not only in terms of capital outlay but also in terms of scale. ORACLE is a sophisticated and extremely powerful tool with few limitations and those limitations are often only dictated by end-users.

ORACLE is described as an end-to-end business software solution due to its extensive functionality, configurability and interfacing flexibility. This module-based software offers something for virtually every department of an organization. Within the realm of day-to-day manufacturing operations, ORACLE can handle most parts of the process on its own and with an increase in functionality by the use of interfaces.

The basic manufacturing process (SEE: Fig. 1) needs are easily met with the functionality of ORACLE modules and interfaces. Like the process, ORACLE modules and interact smoothly through each transaction.
 * 1) Account Management: ORACLE’s Customer Relationship Management (CRM) Module
 * 2) Sales/Marketing: ORACLE’s CRM Module with the addition of self-contained forms for order entry.
 * 3) Order Receipt: ORACLE automatically routes order.
 * 4) ORACLE sends order information to manufacturing module where production is scheduled.
 * 5) Procure Material: ORACLE checks specs and sends order requirements to supply chain. Bills of Materials (BOM) are managed by a system like Agile and linked via interface.
 * 6) Build Product: ORACLE provides specs and delivery schedule. Line sequencing, packaging and labeling (ZEBRA printers interface nicely with ORACLE).
 * 7) Ship Product: ORACLE processes distribution, fulfills order and ships. Accounting receives billing information.
 * 8) Accounting receives distribution confirmation and ORACLE issues invoice to customer.
 * 9) ORACLE accounts receivable collects payment from customer.
 * 10) Cycle begins again.

This rudimentary description of ORACLE manufacturing capability describes it in its simplest form. However, ORACLE should not be mistaken as a simple tool. The ORACLE arsenal is loaded with peripherals and foundational contributors that are indispensable to a manufacturing concern.

Being used in virtually every type of business environment, Oracle shines particularly bright in technology manufacturing.

ORACLE: Beyond Manufacturing
Human resources, payroll and benefits administration are all areas for which ORACLE has a module. Administration of benefits, including health care, workers compensation, unemployment insurance, employee data, time reporting, vacation and sick time records, employee handbooks, confidentiality agreements, the ORACLE HR and payroll modules including direct deposit and printing of live checks can be configured to meet all these needs. In addition, government and ISO regulations can also be factored in to automate compliance to a high degree and minimize risk posed by potential violations.

Engineering functions are also well addressed in ORACLE. PLM (Product Lifecycle Management), test administration, intellectual property management, ISO procedure maintenance through interface with a document manager like Content Management Server BOM administration via Agile and CAD software – ORACLE works and plays well with others with proper system administration.

For finance, ORACLE tracks assets, applies depreciation models, tax administration, customizable capital and expense budget planning that allows for finely tuned spending, forecasting and finance analysis, planning and management and growth of both the business itself and bottom line profitability.

ORACLE: Training and Support
ORACLE training is available worldwide. Consultants circle the globe and ORACLE offers seminars, classes and numerous opportunities for technical staff to grow their knowledge and capability to troubleshoot.

The ORACLE bench is as deep as they come and knowledgeable support is readily available. End-users can often be supported internally with the help of designated power users or in-house support personnel.

Training packages are often negotiated into the purchase agreement. ORACLE is written in is Java.

Often, business users keep Java Programmers and ORACLE Administrators on staff as it is well worth the investment. ORACLE consultants and Java programmers are highly specialized and very expensive and any business tool is only as good as those who administer and configure it. This consideration should be factored in as a part of the total cost of ownership.

ORACLE: Licensing, Cost and Implementation
ORACLE is expensive. It is a major capital investment not only in terms of the software. ORACLE is a powerful tool requiring sophisticated infrastructure. Licensing is processor based and must be purchased piece by piece.

It can be tricky to remain compliant as functionality dictates licensing and achieving the most cost effective licensing structure is dependent upon truly knowing a job description and its technology needs and requires hands-on attention by administrators to get it right.

By default, newly created Oracle accounts generally give end-users far more privileges than they need so the technical staff is charged with customizing accounts by taking away rather than granting privileges.

Implementation is a complicated process that ORACLE is very skilled in. If implementation consultants have not seen it all they have certainly seen most of it. Careful planning and methodical attention to detail will make for the smoothest implementation.

Conclusion: ORACLE: Is it worth it?
Apparently, many companies have concluded that Oracle is, indeed, worth the cost of implementation and total cost of ownership (TCO) and confident that Oracle promises a favorable return on investment (ROI). The graphic representation below illustrates Oracles position in the market and is based on recent statistics.

Fig. 2. Manufacturing software market distribution5

NOTE: Tier II represents the total market share for custom, proprietary, and specialized packages

The more relevant question here might be, “ORACLE: Is the business ready for it?” ORACLE is big. It’s big and it’s powerful and requires major commitment in terms of money, time and personnel. If a business is ready, ORACLE is ready to deliver and keep delivering for years to come.