RapidResponse Capacity Planning (Constraints) Application

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1 This document outlines the RapidResponse Capacity (Constraints) Application Kinaxis RapidResponse allows companies to concurrently and continuously plan, monitor, and respond in a single environment and across business functions. Kinaxis offers a broad array of supply chain applications supported by RapidResponse s single data model and analytics engine, and accessed through a common user interface. This allows our customers to use one product to holistically manage multiple supply chain processes. By using a single product instead of combining individual disparate software solutions, our customers gain visibility across their supply chains, can respond quickly to changing conditions, and ultimately realize significant operating efficiencies. Operational Strategic Sales and Operations Demand Aggregate Supply Capacity (Constraints) Inventory Management Inventory and Optimization Order Fulfillment Master Production Scheduling Supply Action Management Capacity (CRP) Supplier Collaboration Engineering Change Management Integrated Project Management The Building Blocks RapidResponse applications can be deployed individually or in conjunction with other applications. Each of the RapidResponse applications are based on best-practices and standard process flows established by our years of successful deployments at a multitude of world leading manufacturers. The out-of-the-box applications can enable quick implementations, or can act as an advanced starting point for a tailored solution. Designed to be highly configurable, an application can be adapted as desired to meet a company s unique needs without the heavy and ongoing burden of custom coding. The unified set of applications present the building blocks to leveraging RapidResponse across the end-to-end supply chain, maximizing the crossfunctional value that can be delivered by the product.

2 Capacity (Constraints) The objective of the RapidResponse Capacity (Constraints) application is to generate a realistic supply plan that considers various types of capacity limitations. The Capacity (Constraints) application can be used to automatically suggest a constrained plan or can provide load only information on resource utilization so that planners can take appropriate actions. The process includes identifying the key constraints to model in RapidResponse, assigning those constraints to parts, and defining constraint availability. The Added Value of Integrated Applications Among the greatest advantages of any given RapidResponse application is the ability to leverage it in conjunction with other applications as part of a broader, integrated solution. Depending on the need, significant added benefits can be achieved by using the Capacity (Constraints) application alongside one or more related applications to ensure synchronization across interrelated planning processes. Companies that use the Capacity (Constraints) application can achieve advantages and broader value by using it with connected applications such as (but not limited to): Aggregate Supply Master Production Scheduling Supply Action Management Capacity (CRP) Inventory & Optimization Engineering Change Management Supplier Collaboration Integrated Project Management Order Fulfillment Supply Action Management Sales & Operations Inventory Management Supplier Collaboration Aggregate Supply Capacity (Constraints) Demand Master Production Scheduling Integrated Project Management The RapidResponse and Simulation Engine

3 Performing Capacity (Constraints) with RapidResponse The functional capabilities of the Capacity (Constraints) application include: Master Data Management Identify/create new constraints that represent bottlenecks in the supply chain Define time-phased availability for the constraints in various units of measure (e.g. units, hours) Update properties on new or existing constraints (e.g. rate, effectivity) Assign linkage between parts (part sources) which have demand and constraints in order to generate load on the constraints Utilize the same constraint at different levels of the product structure (e.g. finished goods and sub-assembly) and Analysis Use constraints either in an unconstrained model (load only) or a constrained model Consider and configure constrained planning in a variety of ways to suggest action alternatives (e.g. suggesting pre-build to overcome capacity limitations or late build if there is a hard capacity limit) Review load by period versus available constraint Simulate changes to constraint-related properties and view results Simulate changes in other RapidResponse applications and view output results on constraints for business processes such as aggregate supply planning, master production scheduling, and supply action management Manage assumptions In the Capacity (Constraints) application, collaboration occurs across these functional roles: Role Operations Supply Planner Responsibility The operations representative is responsible for providing input on rates by period and effective dates for all constraints. They are also responsible for associating specific parts with constraints. The supply planner is responsible for creating the supply plan, collaborating with operations on key constraints. The RapidResponse Capacity (Constraints) application provides the following benefits: Early identification and proactive management of over or under utilized assets Quick and complete evaluation of cause and effects of constraints on operations Integration of capacity planning and constraint impact analysis with aggregate supply planning and master production scheduling processes to ensure plan feasibility

4 Capacity (Constraints) Process Components 1 Create and maintain constraints; Assign source constraints Consider constraint availability and effectivity 2 Review overloaded / underloaded periods 3 4 Level load the constraint Simulate moving load to alternate constraints or by prebuilding Adjust constraint properties Iterative Process Level load constraints or increase constraint available 5 Adjust sourcing If necessary, determine whether a source constraint can be modified to use a different constraint or if a part can be sourced as a buy instead of a make Capacity (Constraint) Dashboard Processes in RapidResponse are enabled by the creation and sharing of collaboration scenario(s), notification to responsible user(s), review/edit by user(s), and the acceptance or rejection of proposed adjustments. Capacity (Constraint) Worksheet

5 Unique RapidResponse Capabilities Rapid What-If Analysis and Deep Supply Chain Analytics Our patented what-if simulation technology enables users to rapidly create many versions of their supply chain environment (called a scenario), regardless of data size, to simulate changes in real-time without impacting the live data. Thousands of simulations can be supported concurrently within a single instance of RapidResponse. Users can test numerous what-if scenarios against key performance indicators and compare them to each other or to a baseline. Scenario parameters are not limited, so users can simulate any number or combination of changes related to supply, demand, bill of material, business policy, capacity, costs and/or pricing. RapidResponse analytics continuously and automatically calculate results in response to changing inputs. RapidResponse has the ability to mimic ERP data models to ensure calculations are consistent across disparate systems. What-if Analysis Supply Chain Analytics Collaboration and Responsibilities Collaboration in RapidResponse is event-driven and is achieved through the creation and sharing of scenarios with all responsible parties. Users collaborate around a particular what-if analysis and are doing so in the same system from which they are drawing the data, and in which they will execute the resolution. Users create a scenario and share it with the appropriate users and include a message about what issue they require assistance on, or feedback for. The Responsibility capability will automatically identify the users who have ownership over certain data, who can then be invited to participate in a collaborative Role-Based Collaboration Consequence Evaluation and Alerting scenario simulation. Collaborators can create a child scenario of the parent collaboration scenario in order to simulate any required actions. The requestor can keep track of the collaboration progress, the alternatives that are being considered, and which changes should be made. Exception-Driven Analysis RapidResponse s exception-based analysis focuses on evaluating events and actions based on their potential impact to the business. It is never enough to know that something has occurred. You need to understand the context, the consequence, and the next steps. Results of what-if scenario simulations are presented in the context of their impact to performance. Users can monitor and be alerted to specific supply chain risks (e.g. late supply) or specific conditions (e.g. a certain metric will be negatively impacted as a result of a particular event or the cumulative effects of a series of events). RapidResponse resources are configured to ensure attention is given to actions that are both manageable and will provide the greatest impact to corporate performance metrics such as revenue or margin.

6 Managing Performance In addition to the standard corporate measures of revenue, margin, inventory value, and on-time delivery metrics associated specifically with capacity planning are also included in the application s out-of-the-box dashboards. This allows for focused management of the performance measures that are most applicable to the function at hand. Measures presented in the Capacity (Constraints) dashboard include: Constraint Utilization: A summary of the source constraint load, by period, and expressed as a percentage of the available load. Overloads: A summary of the number of constraints that are overloaded, by period. Underloads: A summary of the number of constraints that are underloaded, by period. Supply Plan Volume: A summary of the number of units in the supply plan, by period, as compared to the annual plan.

7 Getting Results Kinaxis RapidResponse enables customers to drive tangible business outcomes by both improving and accelerating analysis and decision making within and across supply chain functions. Improved Scenario [RapidResponse] dramatically improved our scenario planning, both in speed and analytical capability. We now make capacity decisions in days vs. weeks, respond to customer upsides the same day, and reduced our S&OP analysis time for operations from 7 days to 3. Source: Laura Dionne, Sr. Director, Global, TriQuint Semiconductor TechValidate ID: CB5-EB3-6D9 Research by

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