Aiming for Performance-Driven Manufacturing

PeopleSoft says new suite combines manufacturing analytics, supply chain planning, business planning

Las Vegas — May 7, 2003 — Enterprise solution provider PeopleSoft used its Las Vegas users conference this week to unveil a new application suite that aims to combine manufacturing analytics, supply chain planning and business planning onto a single enterprise performance management platform.

PeopleSoft said its Performance-Driven Manufacturing would allow manufacturers to leverage a single integrated platform to synchronize business and supply chain plans with manufacturing operations, helping them respond more quickly to customer demand.

The suite is comprised of three major components: Manufacturing Scorecard, Supply Chain and Predictive Operations Planning, and Demand Driven Manufacturing.

The solution provider argued that today's manufacturing systems do not address the need for real-time access to operational metrics critical to improving performance, and PeopleSoft asserted that its Manufacturing Scorecard will be the first solution to embed analytics directly into both production execution and supply chain planning processes, providing continuous feedback on operational performance. The solution is intended to let manufacturers detect and respond in real time to production challenges and opportunities.

Manufacturing Scorecard analytics will include lean manufacturing metrics and be based on industry standards such as Supply Chain Council's Supply Chain Operations Reference (SCOR) Version 6 specifications, according to PeopleSoft. These metrics will be delivered through a scorecard that can be personalized for each business function and aligned with corporate objectives through the balanced scorecard.

In addition, PeopleSoft said that until now supply chain planning systems have been isolated from enterprise performance management systems, resulting in quickly outdated and inaccurate operational plans. The provider said its Supply Chain Planning 8.8 would be the first solution built on a single performance management platform, which can enable manufacturers to use analytics to validate and continuously refine plan assumptions. Suppliers, customers and employees also will be able to collaborate and improve plan accuracy, resulting in a timely plan that directs the activities of the entire organization, PeopleSoft said.

With Predictive Operations Planning, information can be accessed in real-time through an executive portal that provides alerts, performance scorecards and "what-if" scenario modeling capabilities. PeopleSoft argued that this is the first solution to combine demand forecasts, business plans, budgets and supply plans on the same analytic platform, enabling executives to assess the financial impact of alternative supply chain decisions.

As for the Demand Driven Manufacturing component, PeopleSoft said that legacy manufacturing solutions focus on maximizing the efficiency of each production step in isolation but fail to measure the effectiveness in delivering to demand. As a result, management attention is consumed with optimizing internal processes at the expense of maximizing market responsiveness.

The provider said its Manufacturing 8.9 solution aligns the complete manufacturing process with actual demand. The solution also is designed to automate retail replenishment by directly linking customer point-of-sale data with vendor-managed inventory systems. In addition, the solution will enable Kanban management that extends process synchronization from factory to supplier, allowing production throughput to be maximized across the entire demand and supply chain, PeopleSoft said.

"Manufacturers need real-time information to maximize their operations and to align production with demand," said Patrick Quirk, general manager for PeopleSoft Manufacturing. "PeopleSoft's Performance-Driven Manufacturing suite will combine manufacturing planning and execution systems on a common analytical platform, addressing the significant limitations of existing manufacturing systems."

Supply Chain Planning 8.8 is scheduled for general availability in June 2003. Manufacturing Scorecard, Predictive Operations Planning and Manufacturing 8.9 are scheduled for release in the fourth quarter.