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CPM and Operations

CPM and Operations

CPM and Operations

Management

“Manufacturers Need Plant Software Now –

CPM and Operations

Management

“Manufacturers Need Plant Software Now –Manufacturers Need Plant Software Now More Than Ever”

Manufacturers Need Plant Software Now More Than Ever”

February 9, 2010

Greg Gorbach

Vice President ARC Advisory Group [email protected]

(2)

Today’s Business Environment

Makes Innovation and Responsiveness A Necessity Today’s Business Environment

Makes Innovation and Responsiveness A Necessity

A Turbulent Marketplace:

Global Competition

Impact on Production:

Re-tool for new productsGlobal Competition

 Customers have many alternatives

 Price pressure

 More products and variations needed

p

Rapid Introduction of New

Production Processes

More AutomationMore Plant Software

Re tool to Reduce Energy &

 More product info: Traceability, Pedigree, Carbon footprint, etc.

 Consistently high quality is critical

 Fast turnaround

Re-tool to Reduce Energy &

Emissions

Re-Tool for Green PackagingRe-tool for more flexibility

 Complex delivery terms and schedule

 Green  Increasing Costs  Energy  Energy  Natural resources  Regulatory Pressure

 Growing Climate Change Pressure

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The Manufacturing Balance Has Changed Plant IT is Necessary and Cost-Effective

The Manufacturing Balance Has Changed Plant IT is Necessary and Cost-Effective

$$$

YESTERDAY:  Cheap Energy  Cheap Water  Cheap Waste

 ‘Free’ Emissions  Expensive Controls &

YESTERDAY:

 Energy Cost Swings

 Cheap Controls &

Automation Technology

 Cheap Software and IT TODAY:

ee ss o s

 Predictable

Raw Materials

 Available Talent Pool

pe s e Co o s & Automation Technology

 Expensive Software and IT  Water Cost Rising

 Expensive Waste

 Expensive Emissions

 Unpredictable Raw Materials

 Limited Talent PoolLimited Talent Pool Manufacturing Software andManufacturing Software and

Automation are Essential Tools for Compliance and Cost Control

(4)

Manufacturing Performance Pillars

3 Strategies for a Turbulent Marketplace

Manufacturing Performance Pillars

3 Strategies for a Turbulent Marketplace Manufacturing Business Performance

e on & e

Execution Innovation Compliance

E ti g p erating cellenc e y namic e Creati e rnanc e m plianc e •Execution – Plant, Enterprise, SC •Enterprise Visibility & Control •Quality

•Efficiency & Cost

• Collaboration • Business Innovation • Product Innovation • REACH, 21CFR, etc. • Emissions Mgt, Carbon O p Ex c D y Valu e Gov e Co m Control •Flexibility •Energy, Resource Management • Mfg Process Innovation Tracking

Plant Software is a Critical Tool for Achieving Plant Software is a Critical Tool for Achieving

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Operations Management/MES Trends Operations Management/MES Trends

1. Deals Driven Top-Down • Governance

P I

• Process Improvements

• Manufacturing Excellence

• Visibility, End-to-End Performance

2 Business Decision to Invest in Plant IT

2. Business Decision to Invest in Plant IT • Ops Platform

• Legacy replacement

• Needed for responsiveness flexibility quality etc

• Needed for responsiveness, flexibility, quality, etc. 3. Integration with PLM Needed

• Customer-driven, not industry hype

• No standards means implementation costNo standards means implementation cost 4. Sustainable Manufacturing Dawning

• Energy Management

• Carbon tracking, accountability, complianceCarbon tracking, accountability, compliance

• Integrated, Flexible Packaging Management

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Four Disciplines of CMM Four Disciplines of CMM

Supply Chain Product

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Operations Management and CMM Operations Management and CMM

Operations Management

(8)

Operations Management Operations Management

O ti M t

Operations Management

Production Business Regulatory Management Integration Complianceg y

Automation

(9)

Manufacturers’ Needs Extend Well Beyond Traditional MES Applications

Manufacturers’ Needs Extend Well Beyond Traditional MES Applications

n ctionality reasing Fu n MOM Inc r MES CPM Performance Enterprise & Business Network Line/Plant

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What’s Needed?

A Holistic IT Approach to Managing Operations

What’s Needed?

A Holistic IT Approach to Managing Operationspppp g g pg g p

Operations Management = Modern Platform Broad Connectivity Broad Connectivity & Synchronization Comprehensive Application Suite

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MOM Platform MOM Platform Enterprise Technology CRM SCM FIN ERP EAM Content Enterprise g Platform Custom Integration

Enterprise Apps Platform

Custom Integration

Data WMS

Operations Apps Platform

PDM Drawings Equipment

Eng. & Design Apps Platform Operations PAM LIMS CPM/Automation Data TMS Equipment PDM P&IDs Models Equipment Specs Drawings Technology Platform

Eng & Design Technology Platform Operations Platform Eng & Design Platform

(12)

Operations Management Systems Global Perspective

Operations Management Systems Global Perspectivepp

Enterprise IT S/W Infrastructure

Operations IT S/W Infrastructurep /

Gl b l B i N d

Different Automation Systems

Different ‘MES’ systems

Different Automation Systems

Different Software Systems

Global Business Needs:

Inventory visibility Compare plantsBalance productionStandardizationBest PracticesBest PracticesCarbon compliance

(13)

MOM Connectivity

Required for Performance

MOM Connectivity

Required for Performanceqq oo oo

S h i i

Enterprise Synchronization of Manufacturing with other entities

Orchestration f B i P Operations Connects Product Support Design & Engineering of Business Processes Response to dynamic demands with: Operations Supply Collaboration

among all required parties

Alignment Operations Controls & Equipment Chain & External Operations

Source: ARC Advisory Group

of goals throughout the Enterprise

Visibility

of Manufacturing Information

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MOM Functions/Processes

Start With Detailed, Industry-Specific Functionality

MOM Functions/Processes

Start With Detailed, Industry-Specific Functionality

•Schedule •Processes

Plan Production

Processes Examples

Processes

•Data and Test Needs

Plan Production •Enforce Processes •Guide Operators •Collect Data Execute Production •WIP Tracking •WIP Tracking •Electronic History

•Traceability & Genealogy

Track Product Data

•Role-based Views •Drill-down & Analytics •Event-triggered Notification

Inform & Analyze

•CAPA •NCM •Supplier Quality Enforce Quality •WMS •Line-side

Move & Store Inventory •RFID

Move & Store Inventory

•Maintenance & Repair •Work Orders

•Synchronize w/Operations

Manage Assets

•RMA

S d h O •MRO

•Recovery & Recycling

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Operations Management Systems CMM Map

Operations Management Systems CMM Map B siness Inbound Doc CRM MDM ERP etc p p Business Systems Supply Chain Systems n d Mgt CRM SCP MDM ERP etc. Enterprise IT S/W Infrastructure Operations IT S/W Infrastructure n g, Outbou n Systems etc. SRM p / QMS LEAN etc. EAM (MES, EMI, SPC, Historian, CAPA, Recipe Mgt, etc.) CPM Design & Shippi n SC Operations Management Systems WMS Design & Engineering Systems Control and TMS

PLM RPO PAM EH&S LIMS etc.

HMI MPM Control and Automation Systems PLC DCS CNC etc.

(16)

Sustainability in the Plant

MOM Systems Improve Performance to Sustainability Targets Sustainability in the Plant

MOM Systems Improve Performance to Sustainability Targets

Business

Increasing need for energy efficiency, emissions ARC CMM Model

FIN ERP

HR

g gy y,

monitoring, and regulatory tracking…

requires new functionality, enhanced visibility and planning, and greater collaboration in and with

Manufacturing Operations Customers Suppliers CRM SCM Manufacturing Operations TMS Enterprise Infrastructure PLMProduction ExecutionDetail SchedulingEnergy Management Water Management E i t & Water ManagementWaste ManagementCompliance AssuranceProduction EfficiencyAsset Energy Monitoring

& Maintenance Operations Mgt Systems Equipment & Automation ProductionCarbon TrackingProcess Control etc

(17)

MOM Purchase Criteria MOM Purchase Criteria

(18)

MOM Purchase Criteria – Product Fit MOM Purchase Criteria – Product Fit

(19)

Thank You

Thank You

For more information, contact the author at [email protected] or visit our web pages at

www arcweb com www.arcweb.com

References

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