CPM and Operations Management

CPM and OperationsCPM and OperationsCPM 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 GorbachVice President

ARC Advisory [email protected]

Today’s Business EnvironmentMakes Innovation and Responsiveness A NecessityToday’s Business EnvironmentMakes Innovation and Responsiveness A Necessity

A Turbulent Marketplace: Global Competition

Impact on Production:• Re-tool for new products Global Competition

Customers have many alternatives Price pressure More products and variations needed

p• Rapid Introduction of New

Production Processes• More Automation• More 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 Packaging• Re-tool for more flexibility

Complex delivery terms and schedule Green

Increasing Costs Energy Energy Natural resources

Regulatory Pressure Growing Climate Change Pressure

2© ARC Advisory Group

Other Environmental/Safety

The Manufacturing Balance Has ChangedPlant IT is Necessary and Cost-EffectiveThe Manufacturing Balance Has ChangedPlant 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 ITTODAY:

ee ss o s PredictableRaw 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 Pool Manufacturing Software and


Limited Talent Pool Manufacturing Software and Automation are Essential Tools for Compliance and Cost Control

Manufacturing Performance Pillars3 Strategies for a Turbulent MarketplaceManufacturing Performance Pillars3 Strategies for a Turbulent Marketplace

Manufacturing Business Performance e on &

e

Execution Innovation Compliance

E ti

gp

erat

ing

celle

nce

ynam

ice

Cre

ati

ern

ance

mp

lian

ce•Execution –Plant, Enterprise, SC

•Enterprise Visibility & Control

•Quality•Efficiency & Cost

•Collaboration•Business Innovation•Product Innovation

•REACH, 21CFR, etc.

•Emissions Mgt, Carbon

Op

Exc

Dy

Val

ue

Gov

eC

omControl•Flexibility•Energy, Resource Management

•Mfg Process Innovation

Tracking

Plant Software is a Critical Tool for Achieving


Plant Software is a Critical Tool for Achieving Enterprise Performance

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 IT2. 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, compliance


Carbon tracking, accountability, compliance• Integrated, Flexible Packaging Management

5. Cloud Computing/Services/SaaS on horizon

Four Disciplines of CMMFour Disciplines of CMM

Supply Chain Product

Plant & Equipment Operations


Operations Management and CMMOperations Management and CMM

Operations Management

Automation


Operations ManagementOperations Management

O ti M tOperations Management

Production Business Regulatory Management Integration

g yCompliance

Automation & Controls

Maintenance Management

Energy Management


Manufacturers’ Needs Extend Well Beyond Traditional MES ApplicationsManufacturers’ Needs Extend Well Beyond Traditional MES Applications

nct

ion

alit

yre

asin

g F

un

MOM

Incr

MES

CPM

Performance


Enterprise & Business Network

Line/Plant

What’s Needed?A Holistic IT Approach to Managing OperationsWhat’s Needed?A Holistic IT Approach to Managing Operationspp g g ppp g g p

Operations Management =

Modern Platform

Broad ConnectivityBroad Connectivity & Synchronization

Comprehensive Application Suite


Source: ARC Advisory Group

MOM PlatformMOM Platform

Enterprise Technology

CRMSCM

FINERP EAMContent

Enterprise gPlatform

Custom Integration

Enterprise Apps Platform

Custom Integration

Data WMS

Operations Apps Platform

PDM EquipmentDrawings

Eng. & Design Apps Platform

Operations

PAMLIMS

CPM/AutomationDataTMS

Equipment

PDM

P&IDsModels

EquipmentSpecs

Drawings

Technology PlatformEng & Design

Technology Platform


Operations PlatformEng & Design Platform

Operations Management SystemsGlobal PerspectiveOperations Management SystemsGlobal 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 plants• Balance production• Standardization• Best Practices


• Best Practices• Carbon compliance• S/W maintenance & rollout• etc

MOM ConnectivityRequired for PerformanceMOM ConnectivityRequired for Performanceq o oq o o

S h i iEnterprise

Synchronization of Manufacturing with other entities

Orchestrationf B i P

OperationsConnects

Product Support

Design & Engineering

of Business Processes

Responseto dynamic demands

with:

OperationsSupply

Collaborationamong all required parties

AlignmentOperations Controls & Equipment

Chain & External

Operations


of goals throughout the Enterprise

Visibilityof Manufacturing Information



MOM Functions/ProcessesStart With Detailed, Industry-Specific FunctionalityMOM Functions/ProcessesStart With Detailed, Industry-Specific Functionality

•Schedule•ProcessesPlan 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-sideMove & Store Inventory•RFID

Move & Store Inventory•Maintenance & Repair•Work Orders•Synchronize w/Operations

Manage Assets•RMA

S d h O


•MRO•Recovery & Recycling

Support Product thru EOL

… Then Configure to Your Situation

Operations Management SystemsCMM MapOperations Management SystemsCMM Map

B sinessInbound Doc

CRMMDMERP etc

pp

Business Systems

Supply Chain Systems

nd

Mgt CRM

SCP

MDMERP etc.

Enterprise IT S/W Infrastructure

Operations IT S/W Infrastructure

ng

, O

utb

oun

Sys

tem

s

etc. SRM

p /

QMSLEAN etc.

EAM(MES, EMI, SPC, Historian, CAPA, Recipe Mgt, etc.)

CPM

Design &

Sh

ipp

inS

C

Operations Management

Systems

WMS

Design & Engineering Systems

Control and

TMSPLM EH&S etc.PAM LIMSRPO

HMI

MPM


Control and AutomationSystems

PLC DCS etc.CNC

Plant Applications

Sustainability in the PlantMOM Systems Improve Performance to Sustainability TargetsSustainability in the PlantMOM Systems Improve Performance to Sustainability Targets

Business

Increasing need for energy efficiency, emissions ARC CMM Model

FINERP

HR

g gy y,monitoring, and regulatory tracking…

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

Manufacturing Operations

CustomersSuppliersCRMSCM

Manufacturing Operations

TMS

Enterprise InfrastructurePLM •Production Execution•Detail Scheduling•Energy Management •Water Management

E i t &

Water Management•Waste Management•Compliance Assurance•Production Efficiency•Asset Energy Monitoring & Maintenance

Operations Mgt Systems


Equipment & Automation

Production

•Carbon Tracking•Process Control•etc

MOM Purchase CriteriaMOM Purchase Criteria


MOM Purchase Criteria – Product FitMOM Purchase Criteria – Product Fit


Thank YouThank YouFor more information, contact the author at

[email protected] or visit our web pages atwww arcweb com


www.arcweb.com