PSImetals Production Management Solutions for Metals Industries

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1 PSImetals Production Management Solutions for Metals Industries

2 Global activities & local presence Customers first 2

3 PSI - more than 40 years of software & metals excellence Prepared for tomorrow with production management solutions! PSI is the leading IT company for production management solutions in the metals industry combining supply chain management, advanced planning & scheduling, production execution and logistics optimization. For more than 40 years, we have been delivering addedvalue solutions to maximize the plant performances of numerous metal producers around the globe. PSImetals software solutions enable metal producers to ensure their competitive edge by delivering products as agreed in quantity, quality and time whilst considering inventory, productivity and performance targets. Our roots - our expertise Founded in 2000 as a joint venture between the Stahlinstitut VDEh (Verein Deutscher Eisenhüttenleute) and PSI Group, these days the PSI Metals GmbH is a wholly owned subsidiary of PSI AG. The mergers of 4Production (in 2008) with its special expertise in aluminum production as well as of AIS (in 2009) with proven knowhow in steel planning solutions rounded up PSI Metals holistic solution portfolio specializes in optimizing metals production. PSI Metals today has more than 250 specialists for the global support of metals production processes and is the world s largest supplier for production management solutions in the metals industries. Focus on production management Production is our customers core process. This is where value is added, where customers have a lead over competitors, where optimum utilization of resources is necessary, and where demanding, high-quality products are produced within strict time frames. We hence focus on IT solutions for production, i.e. production management. Our systems integrate production processes with machines, PLCs and process control systems into the commercial world of ERP systems. Niche: Metals Best Solution for Core Business Processes: Production & Logistics. Global & local partnership A big player in a very specialized market We are concentrating on the metals producing industry with its markets steel, aluminum and copper. This is our home ground. These are the markets for which we supply highly specialized, tailor-made IT systems based on a proven product architecture. Our key competence PSI solutions and services in the area of Metals specific Business Consulting Business Planning Production Planning Production Execution Material Logistics Energy Management are increasing the competitiveness of our customers by optimizing their overall production processes. PSI will continue to expand its position as the world s strongest provider of solutions in this field based on global presence, leading technology and the best scale effects in the market. 3

4 People & Industry excellence Being in favour of satisfied customers People are the key to success With a track record in the industry that goes back more than 40 years, we know our customers well and our customers know us. Not just our sales people, but also each and every employee involved in a project is in direct contact with the customer. In this way, we come to understand how our customers work and find solutions to make their work easier with PSI solutions. Available around-the-clock We are convinced that you will be totally satisfied with our systems and services. To achieve this, we offer a host of services to ensure project continuity and subsequent operation of our solutions 24 hours a day, 365 days a year. the requirements of the metals industry. In many cases, the implementation of the products has proven an extremely short Return on Investment sometimes less than six months. Especially in these challenging times for both our customers and us, we pay special attention to secure the investments made by our customers. Therefore, all existing product lines will be continued and converged for forward compatibility with the aim to exploit synergies and create an even stronger, joint solution. We are on our customer s site With its extensive knowledge of the metals industry on the process and on the logistic challenges PSI can count on strong references with worldclass players of the metals industry. Our success lies in the ability to transform a classical customer-supplier-relationship into a long-term partnership with our customers, driven by continuous improvements of the performance. An efficient support acting globally but being present locally allows PSI to remain fast and flexible in addressing customer issues. Our service portfolio Consultancy Mission Business Process Analysis Requirement definition and Fit & Gap analysis Prototyping & Pre-studies Solution Implementations Maintenance Software development Training Secured investments With its dedication to the metals industry PSI develops high-quality, configurable, user-friendly and easyto integrate products fitting perfectly Affinity with metals Focussing on and specialising in the industry, we support all stages of metal production and processing: ore and scrap processing, prime and alloys management pig iron and steelmaking, hot and cold rolling, brazing and foil doubling, surface treatment and finishing, heat treatment. 4

5 Intelligence for metals Best-fit solutions aligning to the complexity of metals production As a manufacturer of steel, aluminium or copper products, you as our customer ensure your competitive edge by delivering the products to your customers in the agreed quantities and on schedule. The PSImetals solution line is an end-to-end approach for the overall supply chain caring for all the needs of the metals industry. Our solutions are always the result of combining three key areas: technology, system integration and products. Technology core competence for metals production 40 years of experience with business and production processes; more than 1,000 man-years of industry expertise are the basis for our solutions. Industry-specific models for process management and best-practice business processes are implemented in our products. Our software technology also reflects the specific nature of the industry, i.e. high degree of automation, high availability, high performance. PSI Products addressing our customers requirements From your supplier to your customer, our solution suite PSImetals offers powerful and tailor-made products to support all processes from planning to execution within your supply chain always considering the complexity of metals production. Our close collaboration with customers guarantees continuously improved leading-edge functionality. PSImetals provides solutions for Planning, Production Execution, Quality Management, Material Logistics, Energy Management and Process Automation and provides a comprehensive perspective of all information in our Production Management Cockpit. System integration the key to consistent processes IT solutions must be integrated into IT environments that are often extremely complex. The quality and flexibility of this integration strongly determines the long-term safety of such systems. Furthermore integration becomes increasingly important from a cost perspective consuming nearly 50 to 70 % of the overall implementation costs. To overcome these challenges we focus on the complete, vertical and horizontal integration of the production process into customers commercial business processes. Our infrastructure ensures full integration of the production process into commercial applications notably SAP as well as the systems and protocols of the automation level across system and platform boundaries. As many metals producers use solutions from SAP, PSI can review on a long-time partnership with SAP. Thanks to the integration of PSImetals and SAP our customers benefit from consistently implemented business processes. 5

6 Metals Specific Business Consulting Clear view and vision in your supply chain PSI s consulting offer for metal production covers the whole supply chain. For over 15 years our consultants have managed to come up with feasible SCM concepts that are welltried and tested and do not depend on specific tools or IT. Every change is always preceded by setting objectives, analysis, the concept and planning. And when it is time to put changes into practice, every firm will be glad to have an experienced consultant at its side. That is where our consultants come in - specialised in intelligent, responsive and flexible Supply Chain Management (SCM) solutions for the metal industry. Suppose you want to modify, extend or modernise your company. You d like to respond to change and meet the needs of the market faster and with greater flexibility. You want to boost production capacity or incorporate new equipment more effectively. Who do you contact? The perfect candidate is someone with years of experience who has already created and implemented many SCM concepts. Someone who knows and has developed long-term approaches in the market and works with welltried and tested procedure models. In other words, an experienced architect who can produce a realistic picture of your visions, take charge of the tender process and compare the available solutions. If necessary they will also act as Construction Manager to ensure the client really gets what he wants. Our business consulting method can be divided into three phases. First Phase: Screening Here it is important to know exactly where the problems lie and to identify the bottlenecks within the supply chain. Using well-tried check lists or specific data scanning and of course in personal discussions and workshops, our specialists are soon able to find potentials and often competing targets in the same plant. This analysis of potentials comes along with relatively low effort and large effects: Only after two to four weeks the management gets facts and figures concerning saving of costs, reduction of working capital and thus increase of liquidity and profit. Second phase: Concept This phase always includes Supply Chain Customizing, Inventory Design & Engineering as well as System Integration Concept. A holistic approach and taking into account all levels in a plant is crucial for a successful concept. Third phase: Implementation The third phase finally includes Change Management and Implementation Coaching. We will act as your partner, helping you with Change Management in the introduction phase as well as with implementation. Changes are initiated using clear, well-structured procedures, including training for staff to get everyone involved on board. Step by step, functionalities are introduced, old planning and decision making processes replaced by new processes with lasting effect and a policy of continuous improvement set in place. We increase the competitiveness of our customers by optimizing their supply chain processes with PSI solutions. 6

7 PSImetals Planning Ensuring delivery reliability for your customers Companies in the metal producing industries are facing increasing customer requirements in terms of product diversity, delivery capability, on-time delivery and constant quality whilst cost pressure continues to increase. Producers and processors are hence being forced to dramatically reduce cycle times and to set and monitor ever-tighter time schedules as well as processing and quality standards. Our planning solution follows an integrative approach that covers the whole life cycle from sales to production order to the finished product over all process stages in metals production. Thanks to the integrated planning process quick responsiveness from shopfloor-level to the superior sales level can be ensured every time. Strategy Planning & Scenario Optimization Strategy planning takes into account your market-, products & pricingstrategies, alternatives for the development of your supply chain and the corresponding product costing & procurement strategies. The integrated optimization approach accounts for the corporate strategy and delivers a value contribution through transparent decision-making for the long-term horizon. These are the guidelines for all further decision in planning and execution processes. Balancing productivity & customer service The result of the sales & demand planning is an optimal balance between productivity and customer service. The integration of sales planning and production planning whilst considering all production constraints as well as restrictions of the supply chain delivers the basis for optimizing profitability of products whilst respecting the market demands. Order fulfilment as promised No matter whether your objectives are less/more throughput, better customer service or cost optimization, our production planning solution optimizes the material flow for confirmed orders along the process chain. It includes an inventory optimization that allows the planning adhering minimum and maximum target stocks. Using stock level constraints as planning conditions, the workload can be optimized regarding deadlines and throughput ratios within the tolerance specified. Our solution takes into account also the optimizing of assignment as well as minimizing of material losses and maximizing productivity (e.g. in the case of cutting and slitting processes or in the case of plate nesting challenges). Scheduling for all lines In your every day operation you need a scheduling solution that deals with the high variance of constraints, specific for the metals industry (caster optimization, coffins, set-up optimization for cold rolling mill a.o.). PSImetals can master these complex scheduling tasks using tried-and-tested algorithms in realtime. This makes prompt and safe responses to deviations in scheduling. PSImetals Planning solutions balance production targets and company targets during the whole life cycle of an order. 7

8 PSImetals Production & PSImetals Quality Ensuring production quality at shop floor The production process in metals is driven by a cumulative complexity. The high number of different end products leads to high variations in the specification of the manufacturing procedures with typical issues of: Final and intermediate products, that are defined by a large number of attributes and characteristics. A high vertical range of manufacturing steps including continues, batch and discrete processes. Material types and their describing attributes vary through all levels of production. There are often multiple ways to produce the same product. Non stable yield due to non reproducible quality results. Standardized production Due to high complexity in manufacturing real time tracking with integrated operational quality processes becomes substantial for metals producers. Adherence to process specifications in conjunction with additional set points and requirements related to the different process stages and production units are the main task of our innovative MES solution. Our solution supports process management for coke making, blast furnaces, steel making plants (liquid phase), for smelter, refinery and caster in aluminium and copper plants as well as for production of final or intermediate products with batch and/or material tracking for single pieces or lots. Other main features are the upto-date quality management as well as the feedback processing from production. Our customers can effectively track and control production processes for the entire metals production (from ore to tailored product), so that the transparency of processes can be dramatically enhanced. The use of PSImetals means significantly improved process efficiency, higher yield and cost savings thanks to: Improved transparency overall. Vertical integration of business and manufacturing processes. Horizontal integration of all production management processes across the supply chain. Cross functional decision alignment by comprehensive and consistent reporting and KPI benchmarking. A closed loop of quality planning, production tracking and quality control based on the integrated factory model. Integrated processes Furthermore the integration of business to manufacturing is crucial to achieve the required agility and responsiveness on management level. Therefore, detailed and complex information from manufacturing has to be reported in a transparent, homogenous and timely way to the commercial management in charge. Ensured quality from ore to tailored product Our shopfloor solution comprises the following components: Product Configuration & Order Dressing Scrap Yard Management Charge & Alloy Optimization Process Automation incl. Process & Metallurgical models Production Order Management Operational Planning & Line Sequence Execution Material & Stock Management Production Tracking. Quality Management Equipment Management Shopfloor Monitoring 8

9 PSImetals Logistics Tweak your logistics for a smooth-running production Be it slabs, heavy plates, billets, coils, tubes or other products - PSImetals Logistics optimizes product stocks, supports the improved utilization of existing warehouse capacities, optimizes all internal transports at both ends of production facilities, and makes decisions for the optimum use of the means of transport available in each case. Our logistics management solution comprises the following components: Stock & Warehouse Management Transport Order Management Transport Optimization & Execution Shopfloor Monitoring Costs can be reduced and the throughput can be increased by an optimized warehouse & transport management between lines & plants. Keep production running As a stock yard is not only a storage facility in the sense of a material reserve, it represents even more the main logistical part within metals production. The target is to provide an optimized material supply and material removal to and from lines whilst ensuring that there will be no downtime due to logistic reasons. No more lost materials To ensure that requested materials are supplied in time and to avoid a waste of time for searching materials one always needs to know where the material is located. Not only the place in yard is of interest, especially in slab, plate or billet yards it is essential to know the exact position of a material in pile to avoid subsequent rearrangings. For material tracking all modern coordinate detection systems like GPS, radar, crane coordinate systems and others can be integrated. The system is based on a flexible warehouse topology that allows to give a yard overview by logical or coordinate driven positions. All warehouse and transport management processes whether they are manually processed or fully automated (e.g. transport optimization for forklifts, driverless transport systems or highbay storages) are covered by our solution. Optimized material supply Integrated business processes between planning, execution & logistics ensure the material supply and disposal for plants as required for the particular line program to be executed. Specific requirements for the storage and transport of materials, such as multi-layered storage and restrictions in terms of dimensions, quality, weight as well as constraints for means of transport will be considered whilst generating the optimized storage place and choosing the optimum transport route as well as the best means of transport. Reduced material damages Due to the minimization of material movements by storing materials always in proper order concerning the subsequent processing material damages can be reduced significantly. 9

10 PSImetals Energy Systematically reducing your energy consumption Our customers are large energy consumers. Some of them even produce gas as a by-product of their metallurgical processes. Energy costs account for a substantial share of production costs. PSI s energy management system includes an energy consumption forecasting function as well as a power demand control that considers all production phases of a metallurgical works. It supports activities designed to ensure adherence to the maximum consumption limits as agreed to in the relevant energy supply contracts. Keep your energy costs at bay The energy demand forecast of our solution provides important information that is used to minimize both the risk of exceeding the consumption limit and the costs of externally supplied energy. It enables companies to effectively track and control energy consumption processes, so that the cost transparency of energy consumption can be dramatically enhanced. All production phases in the metallurgical works are covered. The use of our energy management system means cost savings thanks to: Improved cost transparency by an early recording of performance data, Decreasing contract limits, Avoiding limit violation costs. Energy forecast calculation for your scheduled orders Our solution is able to calculate accurate energy forecasts for the scheduled parts of the metal production if there exist an integration to a detailed scheduling system. So information about steel grade or alloys, weight, temperature, material dimensions and others are considered in the specific forecast of energy demand. Well prepared for contract negotiations The conclusion of new, favorable energy supply agreements is supported by simulation calculations. Taking future supply agreements, the energy management system is to monitor the costs of the individual loads in a differentiated manner and try to minimize such costs. Managing your load peaks Price-Agreements are often based on the production volume as well as on the highest load peaks. A kilowatthour rate is charged for the energy actually consumed and a demand rate is charged for the provision of the standard energy to cover load peaks. Without having load peaks under control energy costs will rise. Our solution provides several functions for load management to control power demand during production and to avoid penalties for non-recurring exceeding of the agreed maximum value. The return of investment (ROI) of an energy management system project using PSImetals Energy is lower than one year. 10

11 PSImetals Cockpit At a glance: Control your business company wide With the PSImetals Cockpit, PSI Metals has adapted the control room technology from PSI AG for the energy management segment. Process optimization often starts in individual areas of a company. Optimization results achieved locally do not necessarily have to match the company s targets. An integrated view of production processes is required to create the conditions for optimum use of resources. The PSImetals Cockpit is a control room solution for the visualization of production processes across all areas of a factory. The solution networks information from the fields of planning, production, logistics, energy and quality presents retrospective The transparency in factories generated by our PSImetals Cockpit ensures a quick response to unforeseen changes and makes it possible to achieve an integrated optimum of material stock, plant utilization, energy consumption, quality and timeliness. and future processes in an integrated manner and in realtime on a graphic display. For different user perspectives of the company (executive management, works management, works engineers), the cockpit offers an area-spanning overview of all sites, plants and means of transport, and supports the timely management of the company. Information networking of this kind creates additional information which cannot be obtained from a conventional, local view. Our PSImetals Cockpit is available in two variants. The Control board presents the overall view on large-screen-displays. Operators in different works areas control the processes centrally via one display. The other alternative is the Control station where information is displayed on arrays of different operator terminals. Thanks to synchronization of all the stations in realtime, every user receives the same picture of the factory. Intuitive navigation and zoom functions direct the user from the factory overview to detailed plant views and thus offer precise information on the current state of production. Detail information can be displayed and rendered graphically on separate video display units. Role-based views All users access the data according to their functions in the company. Whilst management can access up-to-date KPI data along with aggregated historical and forecast information, other functions obtain information on data relevant for this, such as temperature curve, order data or inventory development information. 11

12 Why PSI?... Most Extensive Metals Industry Knowledge.... Most Extensive Reference Base.... Best-Fit - Solutions.... Effective, Global & Local Support.... Secured Investments. PSI Metals GmbH Headquarters: Heinrichstraße Düsseldorf Germany Phone: Further offices: Aachen, Berlin (Germany), Beijing, Shanghai (China), Brussels (Belgium), Ekaterinburg (Russia), Kolkata (India), Leoben, Linz (Austria), Pittsburgh (USA), Rio de Janeiro (Brazil). PSI Metals GmbH, 07/2014