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GEN-11: Enabling Manufacturing Execution Standards In a Multi-site Environment Marc Vermette Bill Schiel Enterprise Software Solutions social.invensys.com @InvensysOpsMgmt / #Social Revolution /InvensysVideos /InvensysOpsMgmt /company/invensys Operations Management 2013 Invensys. All Rights Reserved. The names, logos, and taglines identifying the products and services of Invensys are proprietary marks of Invensys or its subsidiaries. All third party trademarks and service marks are the proprietary marks of their respective owners.
Introduction of Speakers Marc Vermette Director, Enterprise Software Sales Slide 3 Bill Schiel Director, Global Business Development Sree Hameed Marketing Strategist
Session Overview Organic growth and record levels of M&A activity have resulted in a plant portfolio with varying levels of IT and automation infrastructure. As companies seek to optimize and streamline their operations, the focus of MES shifts from within the plant to enabling standardization across multiple plants. This session covers lessons learned from numerous client successes in the multi-site MES journey. Slide 4
Definitions Standardization: Select, acquire, install, and maintain a solution based on a fixed set of technology Multi-Plant: 20-500+ sites across regions, business units Rollout: A program to deploy a solution in many to all plants Product: A software or hardware product, part of a solution Project: A near-term effort to deploy a solution in a single instance Program: A long-term effort, which includes multiple phases or projects, to rollout a standardized solution Slide 5
Macro Trends for Fast Moving Consumer Goods (FMCG) Leading to MES Standardization Need In General Buying stakes in emerging economies Glocal Business Model Assimilating/Integrating acquired plants Lower cost of IT system maintenance and enhancement IT Driven initiatives Standardization Towards Standardization Why/When? Supply Chain Standardization Uniform/Standard Approach to Execution and Measures /Benchmark Easier deployment of best practices, new functionality addition and enhancement Common application and standards across manufacturing enterprise Reduced TCO / Economies of scale Slide 6
IT Driven Approach Key Stakeholders Purchasing RFI/RFQ IT Contributing Engineering & Operations Suppliers Focus on Lifecycle cost Mass deployment Life cycle management Level 1,2 Internal Support IT Standards Application integration Business continuity Focus on Functional requirements Empowering Users / Usability Business Process Automation integration Engineering standards Manufacturing Industry standards (S95) Critical Decision Criteria Solution Robustness, Scalability and Sustainability (incl. COTS/Custom Ratio), Plug n Play Vendor Reliability, Flexibility, Innovation and Cooperation Technology Alignment with Microsoft Roadmap and SAP evolution Ease of Deployment Governance Model Slide 7
Challenges Wide range of site readiness- infrastructure, skills, attitude Each site/plant/operation is unique Each deployment team does things differently Lifecycle Change Management Software Updates Application Updates Change in operations, equipment, procedures Slide 8
Critical Considerations Cross Functional Organization MES Center of Excellence Politics MES impacts and support of Mfg & Business Processes Program Governance Coordination Maintaining Alignment Business Improvement vs Transformation Strategy Key Business Drivers & KPIs (Ops & Finances) IT/Business Blueprinting and Long Term Strategy Slide 9 Lower TCO Governance Sustainability, Scalability Virtualization Readiness Stakeholders Involvement Perceived Uniqueness Adoption Empowerment
Traditional Approach Select Technology Do small pilot or POC Cons Pilot focused on one line or plant Failure to Rollout Slide 10 Plan rollout Rollout (hopefully)
Innovation Approach Select Technology Build Template Deploy at first site Rollout Update Template Start the Way you Intend to Continue Develop a configurable solution that will evolve Design configurable modules based on requirements from representative plants Early Site assessments/remediation investments Deploy, commission- on premise, cloud Remote lifecycle support Consider OpEx payment models Slide 11 Maintain/Enh ance
A Typical Global MES Opportunity Strategic Initiative Template-based Approach Transformational initiative Standard solution Configured and deployed across sites Run as a program 3 parallel streams Template Management, Rollouts and Long term support Participation from Corporate (IT, Manufacturing, Business & Finance) and Plant (IT, Automation Management & SMEs) Slide 12 Trade-offs Dimensions such as: Stakeholder Needs & Business Process Architecture & Design Constraints Product Capability Program Evolution / Roadmap Incremental approach rather than big-bang Start with low-risk, high-gain modules Tangible benefits from one phase fuels initiation of next Proven success in one plant / module justifies deployment in other plants / modules Sizing For a large enterprise with multiple plants, typical value of template solution is $23M Software to Service Revenue Ratio of 1:3 Each site rollout will be $100-500 K Productivity gain expected in rollout as the solution matures
Programmatic Approach Customer Expectations A Programmatic Approach to Execution & Governance Slide 13
Success Factors Slide 14
Pillars Collaborative Services Delivery The right framework The right team for the right job Slide 15
Pillars Build, Deploy, Support, Maintain Slide 16
Value Realization Reach or Maximize ROI Where do customers want to be?!!! Exceed Expectations!!! Failed to Meet Expectations Steady State How to get there? Continuously closing the loop Tight monitoring of ROI and KPI against initial business drivers Lean Initiatives Continuous Improvement Initiatives Operational Champion Slide 17
Invensys Team Global MES Delivery Global Consulting Slide 18 Software Delivery Center Enterprise Software Solutions Global Delivery Customer Partner Support Ecosystem
Global MES Delivery Encompasses highly skilled consultants who specialize in a number of advanced applications Includes technical expertise in developing solutions that use the following Wonderware technologies: WW System Platform (including InTouch and Historian) WW MES (Operations, Performance, Quality and InBatch) WW Intelligence & WW Workflow Includes delivery expertise in the successful implementation of both large scale and complex execution solutions Consisting of Regional Practices located throughout the world Slide 19 Expertise Team of Professional Resources Distributed Globally Driving Best Practices Application of Technology Project Execution and Quality
Global MES Delivery Unparalleled expertise in the application of our technology Provide guidance and consulting to the Ecosystem. We wrote the book on it authors of the MES Development Guide Extensive integration experience with ERP, WMS, LIMS, batch systems, control systems, etc. Dedicated access to Wonderware resources - shared office space with Development and Support organizations. Global Pool of Multi Disciplinary Resources Slide 20
Global Customer Support Value Proposition Montreal Foxboro Munich Lake Houston Fores Mexico City t Caracas Seoul Tokyo Chennai Singapore Global hub for WW technical support: Lake Forest, CA Close proximity to WW Product Development organization Global team of 130 support professionals dedicated to the Software brands Handle 25,000+ support cases per year and support 8,000+ customer sites Regional centers for handling issue resolution closer to customer locations (geography and language) Slide 21 Single point of contact for Product and Solution issues 24x7 access through toll-free number Global Support Capability Integrated handling of issues between Product and Solution experts Ticketing System for recording, tracking and reporting issues Maintenance and control of custom code and documentation Off-line test system Access to broader pool of expertise
Support Offerings Site Monitoring (Remote) Resident Engineer Proactive Monitoring Periodic Health Checks Dedicated On-Site Expert Monitoring, Issue Triage and Resolution Additional Services Site Support Site Maintenance Template Maintenance Customer FIRST for Solutions Customer FIRST Premium Level Slide 22 Remote Help Desk for Sites Answer, Triage and Address Support calls Support Local Integrations and apply Patches Version Control and adherence to Template Maintenance of template code and documentation Ongoing changes/enhancements Build and maintain offline test system Set-up support relationship Support and Maintenance of underlying products Access to support website and knowledgebase
Invensys Offering Products Software Licenses Customer FIRST Support Projects Consulting Services (ideal for newer products) Software Licenses Customer FIRST Support Programs Program Design Management Collaborative Delivery Design and Management Application Support Remote monitoring Consulting Services Software Licenses Customer FIRST Support Consulting Services Slide 23
Enterprise Software Solutions Team Formed in 2011 to address increase in Level 3 standardization by Global FMCG Leaders Solution based approach focusing on customer initiatives A global team to coordinate extensive regional resources Strong dependence on SI Partners using a Collaborative Services Delivery model Solutions based on software, hardware, and lifecycle services Have direct access to R&D, partners such as Microsoft, and industry experts Programs, not projects or small pilots To Date: 4 major programs initiated in Europe and Latin America Slide 24
How to Engage ESS Team Arrange through your account manager Slide 25
Conclusion - Invensys Value Proposition Delivery Through Results MES Leadership Industry Leadership Technology Leadership Global Structure & Strategy Lifecycle Services & Support Programmatic Multi Multi--Sites Approach Slide 26 People & Talent
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