2008 Automation Summit Siemens Plant Information Needs in Turbulent Times Julie Fraser, Principal Industry Analyst
Agenda Production Challenges Engineering & IT Converge Why Plantwide Systems are Critical Information From Outside Production
21 st Century Manufacturing
21 st Century Manufacturing Global supply, demand, production, competition
21 st Century Manufacturing Global supply, demand, production, competition Capable, complex, configurable products
21 st Century Manufacturing Global supply, demand, production, competition Capable, complex, configurable products Well informed customers
21 st Century Manufacturing Global supply, demand, production, competition Capable, complex, configurable products Well informed customers Increasing regulations
21 st Century Manufacturing Global supply, demand, production, competition Capable, complex, configurable products Well informed customers Increasing regulations Delivering solutions
21 st Century Manufacturing Global supply, demand, production, competition Capable, complex, configurable products Well informed customers Increasing regulations Delivering solutions Demand-driven responsiveness
Project Management Engineering Prototyping Tooling Quality Assurance Product & Order Needs Converge in the Plant Product planning Product development Sales Planning Purchasing Production Control Production Production -Assembly -Test QA In-Service market and product development Delivery Service
Project Management Engineering Prototyping Tooling Quality Assurance Time to Market Product & Order Needs Converge in the Plant Product planning Product development Sales Planning Purchasing Production Control Production Production -Assembly -Test QA In-Service market and product development Delivery Service
Project Management Engineering Prototyping Tooling Quality Assurance Time to Market Product & Order Needs Converge in the Plant Product planning Product development Sales Planning Purchasing Production Control Fulfillment Time Production Production -Assembly -Test QA In-Service market and product development Delivery Service
Project Management Engineering Prototyping Tooling Quality Assurance Time to Market Product & Order Needs Converge in the Plant Turbulence! Product planning Product development Sales Planning Purchasing Production Control Fulfillment Time Production Production -Assembly -Test QA In-Service market and product development Delivery Service
What is Your Top Production Plant Challenge? Ramping up: time to quality & volume Gaining repeatability and predictability Lowering costs to compete Matching output to demand Improving yield & quality with higher mix
End of Industrial Era: to Knowledge-based Revolution
End of Industrial Era: to Knowledge-based Revolution Bar rising for quality, service & efficiency
End of Industrial Era: to Knowledge-based Revolution Bar rising for quality, service & efficiency Customization displacing mass production
End of Industrial Era: to Knowledge-based Revolution Bar rising for quality, service & efficiency Customization displacing mass production Outsource and manage partner network to deliver customer experience
End of Industrial Era: to Knowledge-based Revolution Bar rising for quality, service & efficiency Customization displacing mass production Outsource and manage partner network to deliver customer experience The new frontier: Flexibility, Teamwork and Visibility
Agenda Production Challenges Engineering & IT Converge Why Plantwide Systems are Critical Information From Outside Production
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management Inbound & outbound logistics
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management Inbound & outbound logistics
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management Inbound & outbound logistics Consortium bids for projects
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management Inbound & outbound logistics Consortium bids for projects Joint innovation with customers & partners
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management Inbound & outbound logistics Consortium bids for projects Joint innovation with customers & partners
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management Inbound & outbound logistics Consortium bids for projects Joint innovation with customers & partners
Sales Distribution Procurement Development Cross-Discipline Teamwork as a New Core Competence The innovation network Supplier quality & visibility Supply chain event management Inbound & outbound logistics Consortium bids for projects Joint innovation with customers & partners All need plant input!
Information Flow In-house engineering and manufacturing
Information Flow In-house engineering and manufacturing Specialist finishing process
Information Flow Suppliers participate in product and process design In-house engineering and manufacturing Specialist finishing process
Information Flow Suppliers participate in product and process design In-house engineering and manufacturing Specialist finishing process Customers help specify, review, and forecast
Information Flow Suppliers participate in product and process design In-house engineering and manufacturing Specialist finishing process Customers help specify, review, and forecast 3PL needs packaging adjustment and implements VMI service
Information Flow Suppliers participate in product and process design In-house engineering and manufacturing Specialist finishing process Customers help specify, review, and forecast 3PL needs packaging adjustment and implements VMI service
Information Flow Suppliers participate in product and process design In-house engineering and manufacturing If your diagram doesn t show everything Specialist finishing process happening in parallel, it s wrong Customers help specify, review, and forecastcambashi interview 3PL needs packaging adjustment and implements VMI service
Production, Engineering & IT are Converging Fewer resources dictate leverage Engineering: Manufacturing, Process, Controls, Mechanical, Electrical, etc. New product needs Ongoing stable production Product & Process Change
The Hard Hats and the Suits
The Hard Hats and the Suits Stock, capacity, shipments, production schedules
The Hard Hats and the Suits Stock, capacity, shipments, production schedules Products, parameters, partners, sales forecasts
The Hard Hats and the Suits Stock, capacity, shipments, production schedules BOM/recipe, routings, production plans, change requests, change orders Products, parameters, partners, sales forecasts
Agenda Production Challenges Engineering & IT Converge Why Plantwide Systems are Critical Information From Outside Production
Why Care about MES? 400 350 300 Use MES Do Not Use MES Plants using MES increased profitability 4X more than others 250 200 150 Continuous Improvement 100 50 0 Change in plant-level profitability (annual value of shipments minus materials and manufacturing costs) over the past 3 years*, % 2004 Industry Directions et al MES Performance Advantage: Best of the Best use MES
Why Care about MES? 400 350 300 Use MES Do Not Use MES Plants using MES increased profitability 4X more than others 250 200 150 Continuous Improvement 100 50 0 Change in plant-level profitability (annual value of shipments minus materials and manufacturing costs) over the past 3 years*, % 2004 Industry Directions et al MES Performance Advantage: Best of the Best use MES
Why Care about MES? 400 350 300 Use MES Do Not Use MES Plants using MES increased profitability 4X more than others 250 200 150 Continuous Improvement 100 50 0 Change in plant-level profitability (annual value of shipments minus materials and manufacturing costs) over the past 3 years*, % 2004 Industry Directions et al MES Performance Advantage: Best of the Best use MES
S-95 Defines MES or MOM Enterprise Product definition Production capability Production schedule Production performance Production MES/MOM Factory/ Plant Automation Production resource management Product definition management Source: ISA S95 Committee (modified) Detailed production scheduling Production dispatching Production execution Level 2 Control (Batch, Discrete, Continuous) Production tracking Production Performance analysis Production data collection
Plant Sends Key Information to Enterprise Applications Serial History Resource Use Order Status Output Quality Costs Scrap ERP CRM Order status Spec issues Genealogy SCM Purchased Materials issues Actual inventory levels, location Actual to schedule, dynamic updates Production Order Cycle Eng Change Requests As-built History Comments to Specs PLM 50
% of respondents increasing by 1% or more annually MES Users are More Likely to Improve on Financial Measures 70% 60% 50% 40% 30% 20% 10% 0% Net operating profit Source: MESA Metrics that Matter: Uncovering KPIs that Justify Operational Improvements 2006 MESA International & Industry Directions Inc. EBITDA Use MES ROA/RONA No MES
Agenda Production Challenges Engineering & IT Converge Why Plantwide Systems are Critical Information From Outside Production
Enterprise Applications Provide Plant Information, Too! Raw materials inventory BOM Routings Orders ERP CRM Customer specs Configurations Issues/Feedback Plan Updates Expected receipts Replenishment triggers SCM Production Order Cycle Engineering Changes Bill of Materials (BOM) Process specification Drawings/Specs PLM 53
Enterprise Applications Provide Plant Information, Too! Raw materials inventory BOM Routings Orders ERP CRM Customer specs Configurations Issues/Feedback Plan Updates Expected receipts Replenishment triggers SCM Production Order Cycle Engineering Changes Bill of Materials (BOM) Process specification Drawings/Specs PLM Synch. Opportunity and risk! 54
Product Development is Key Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture
Product Development is Key Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture Functional or phase based departments
Product Development is Key Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture Multi-disciplinary or product teams Functional or phase based departments
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation CAM Factory layout and sim. Process simulation CAPP
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation CAM Factory layout and sim. Process simulation CAPP LIMS CMM reporting Trials management
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation CAM Factory layout and sim. Process simulation CAPP LIMS CMM reporting Trials management BOM Approval Routing Procurement Schedule
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation CAM Factory layout and sim. Process simulation CAPP LIMS CMM reporting Trials management BOM Approval Routing Procurement Schedule ERP SCM CRM MES
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation CAM Factory layout and sim. Process simulation CAPP LIMS CMM reporting Trials management BOM Approval Routing Procurement Schedule ERP SCM CRM MES Document management, product data management, workflow, engineering change order, approvals, product visualization
Some typical IT Applications Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation CAM Factory layout and sim. Process simulation CAPP LIMS CMM reporting Trials management BOM Approval Routing Procurement Schedule ERP SCM CRM MES BI, focus groups, forecasting Publications, distribution, forecasting Project management, business planning, cost control Document management, product data management, workflow, engineering change order, approvals, product visualization
The PLM footprint Research & Concept Development Detailed Design & Analysis Manufacturing Process Design Prototype & Validation Testing Production Ramp up Volume Manufacture System modeling CAD Styling Rapid prototype Chemical simulation MCAD EDA CFD FEA EMC Process simulation CAM Factory layout and sim. Process simulation CAPP LIMS CMM reporting Trials management BOM Approval Routing Procurement Schedule ERP SCM CRM MES BI, focus groups, forecasting Publications, distribution, forecasting Project management, business planning, cost control Document management, product data management, workflow, engineering change order, approvals, product visualization
Plant Information Needs in Turbulent Times Two-way transfer to: Stay in Sync with Sales Design Eng. Supply Chain Strategy Contribute to New Products Customer Service Business Success EventTitle
Cambashi Inc. Thank you! Julie Fraser, Principal Industry Analyst Julie.fraser@cambashi.com