achieving full manufacturing integration sustainable, effective and agile operations Your business technologists.

Transcription

1 achieving full manufacturing integration sustainable, effective and agile operations Your business technologists. Powering progress

2 The greatest gains in manufacturing over the next five to 10 years will be made by companies that understand the value of integration across function, department and process. Only integration can deliver the actionable intelligence needed for enterprise-wide collaboration and that collaboration is the key to the reduced time-to-market and greater flexibility needed to satisfy customer demand. 2 Achieving full manufacturing integration sustainable, effective and agile operations

3 Integrated manufacturing: what and why? Manufacturing has made huge progress in recent years: automation levels have increased in all manufacturing sub-sectors and third party suppliers now have better vertical skills, geographical coverage and greater scalability. The number of products and product variants has exploded. Globalized capability has become the foundation of cost reduction. Manufacturers have managed all these pressures. They have achieved high-level optimization across all areas of the value chain: in product development, in production planning and execution, in logistics and post-sales services. As manufacturers seek to outperform the competition, they are now strongly focused on the challenge of achieving new levels of integration. Future growth is driven by not accepting the disconnected functional silos. The best and most advanced companies are taking the tough, but rewarding route of integrating, redesigning and streamlining processes and systems into one unified business platform. Technology will enable smooth integration of the full sustainable value chain and operations: product development (PLM), production planning (ERP), production execution (MES / MOM). Systems that used to be called MES (Manufacturing Execution Systems) have now evolved into encompassing, integrated solutions for the shop floor: Manufacturing Operations Management (MOM) solutions. As business technologists, Atos are experienced in all these areas of the manufacturing value chain. With deep experience in industry-specific system integration, manufacturing is in our DNA Atos is ready to help you achieve the full integration that will be the foundation of your future success. Integrated manufacturing: not just IT, but transformation Integrated information availability; increased production flexibility; supplier integration; managing global production networks. To achieve all these things, you must do more than simply adjust IT. This can mean transforming the way you operate today. Integrated manufacturing uses the data and information from multiple discrete systems to build a complete and actionable picture, spanning operational planning and business performance analysis. In part, this is about IT systems and applications, and demands: Comprehensive knowledge and understanding of the IT systems and applications used in production and in business administration The ability to create accurate and timely shop floor to top floor intelligence, monitoring manufacturing performance and linking to business processes The ability to use this intelligence to make meaningful decisions in real-time. IT skills and knowledge are indispensable in achieving manufacturing integration but they are secondary to cultural and operational understanding. Atos has the skills and proven capabilities needed to manage these transformation programs on an enterprise-wide scale. Manufacturing is not one industry Manufacturing is massively varied. Not only are the sub-sectors very different every individual enterprise has a different starting point. Atos understands these differences, and has deep knowledge of best practice in many manufacturing sub-sectors. This depth of knowledge delivers clear benefits for our customers: Implementation is fast and secure We apply sub-sector best practice for every customer We have an end-to-end approach, managing change effectively throughout the transformation. IT is the enabler for integrated manufacturing, but for successful implementation you must align processes, organization, and culture. Achieving full manufacturing integration sustainable, effective and agile operations 3

4 Full scope integration Full scope integration focuses on interoperability between business planning and shop floor operations. We enable synchronization between machine-to-machine systems and production planning, aligning engineering and production operations. Case for action Manual and time-consuming alignment between different functional teams is substituted by seamless workflow across the underlying systems. Suppliers Supply chain Business planning and logistics Customers The IT challenge is to enable personalized collaboration between operators using ERP, PLM, and MES / MOM platforms, along with other legacy systems involved. Engineering Product & process definitions Production orders Production workflow Reporting Shop floor operations Atos answer As business technologists with proven experience in this field, we know that there is no simple off-the-shelf solution for integrated manufacturing: every engagement will reflect your specific manufacturing environment. The starting point will always be a collaborative examination of your business, with focus on your existing levels of process and information integration. We will then map this formal analysis against the best practice of your industry sector peers. As an example, our patented and proven M4MES methodology has been developed to formalize the Atos approach for manufacturing execution environment, implementing best practices, industry sub-sector libraries and methods. Applications Factory equipment and devices Communication/ Collaboration PLM Enterprise Content Management ERP MES / MOM Control systems Sensors & Actuators Business Intelligence After sales 4 Achieving full manufacturing integration sustainable, effective and agile operations

5 The Atos system target for integrated manufacturing is primarily focused on creating information transparency across three application and process areas: MES / MOM, ERP and PLM. Manufacturing Execution Systems / Manufacturing Operations Management MES / MOM has already come a long way since its original inception as a means of managing work in progress on the individual factory floor. The real return will only become evident, however, when: MES / MOM is used to drive consistency and best practice across all sites MES / MOM production data is able to immediately influence the quality of overall Enterprise Resource Planning Production learnings are bonded to Product Lifecycle Management systems. Enterprise Resource Planning Although ERP in manufacturing is highly sophisticated, the physical disconnect with production systems remains problematic. When, for example, one of the main objectives of ERP is to maximize utilization, how can this be achieved when the real-time view of machine status is hidden in a different system? Product Lifecycle Management Although PLM usage is as diverse as the output of the many different manufacturing sub-sectors, certain themes are common. The need to track an individual product or batch, for example, is critical. This can only be done intelligently and effectively if the circumstances of production are in sync and that demands integration with the wider production picture. Although MES / MOM, ERP and PLM are our main targets, the scope of Atos Integrated Manufacturing extends further into processes and systems that in even the most advanced manufacturing enterprises are generally regarded as self-contained. This is not a patch Many of the world s best-known brands in manufacturing trace their roots back a hundred years and more. Even the stars of digital technology have now moved from adolescence to early middle age. All serious manufacturers want to build long-term reputation and sustained success and all understand that the killer application is an illusion. Achieving information integration across business and operational systems is not about installing the latest package. It s about commitment and vision, underpinned by clear and well-founded expectations of the results. Atos will ensure that realistic expectations are set and results measured accordingly. In recent integrated manufacturing engagements in the automotive sector, for example, our clients have made significant and quantifiable advances: Cost reduction 2-5% Productivity 10-15% Resource utilization 10-20% Stock reduction 25-50% Throughput time 10-20% Delivery reliability 5-10% Planning accuracy 25-80% As business technologists, Atos has the technology skills, and the sector and process experience to make your integration initiative a success but this will only happen if we open up the partnership beyond pure IT. Achieving full manufacturing integration sustainable, effective and agile operations 5

6 Integration and sustainability: plant and planet The pursuit of sustainability in manufacturing cannot be separated from the pursuit of information integration. This is true at the level of both plant and planet the bigger the scope, the bigger the reward. Atos always regards sustainability from three perspectives. From each point of view, the importance of integrated approaches to manufacturing stands out clearly. Environmental sustainability Every manufacturing company needs to minimize negative environmental impact. The moment that information transparency is achieved between MES / MOM, ERP and PLM then new and immediately actionable possibilities will be revealed. How often, for example, do two half-filled trucks leave the same plant going to the same destination at the same time, simply because systems don t join up? Social sustainability All successful manufacturers know how to balance the proactive and reactive. You need to know what the market wants on the one hand, and you need to know how to drive market behavior on the other. Agility is the key here, and the ability to turn observation into action can only be effective when client-facing systems are able to interface intelligently with planning and production. How often, for example, does a competitor get to market before you simply because their information flow from observation and idea to action is more open than yours? Economic sustainability Integrated manufacturing is pivotal in achieving economic sustainability. It s always tougher to earn money than to spend it, and waste of any kind remains the perennial enemy in manufacturing. Only intelligent information transparency can minimize inventory and maximize utilization right across the extended enterprise. How often, for example, is routine maintenance carried out according to schedules that ignore actual production pressures or order books? Value enhancement and innovation are just as important as cost and waste reduction. Enabling new ways of operating, enhanced collaboration and information sharing, the open exchange of ideas with external stakeholders, and sustainable innovation all drive growth. 6 Achieving full manufacturing integration sustainable, effective and agile operations

7 Achieving full manufacturing integration sustainable, effective and agile operations 7

8 Why trust Atos? The move to integrated manufacturing, in which information transparency and collaboration between MES / MOM, ERP and PLM is core, demands solid technical and process expertise. When making the transformation, the quality of integration with legacy systems will always be critical. Atos has technical, process and legacy system knowledge in abundance. In July 2011, we significantly extended these capabilities with the acquisition of Siemens IT Services and Solutions, which enabled us to grow our center of excellence for sustainable integrated manufacturing. The overarching application architecture is the technical foundation of any effective integrated manufacturing approach. Here too, Atos can point to strong working partnerships with key technology players, including Siemens, SAP and other third party specialists including Apriso, OSIsoft and Invensys Wonderware. Unlike many pure IT players, Atos focus extends right down to operation and control and production systems. We always consider technology in its specific business context. We can establish and exploit the bridge between operational and business systems in real-time and real-time is critical in fulfilling the potential of any integrated manufacturing approach. Beyond technology, however, where we really stand out is in terms of sector-specific knowledge on the one hand, and culture and geography on the other: In high-tech and engineering, automotive, aerospace, chemicals, pharmaceuticals, consumer packaged goods and pulp and paper, Atos has manufacturing consultants who will always lead with business and only then bridge to IT Like many of our manufacturing clients, we are a global company and that means knowing how to benefit from local difference while pursuing international consistency We have been leading major transformation projects for both local and global customers helping them to manage the soft factors so critical in successful business transformation Atos is recognized as a world leader in sustainability solutions. In 2012, we won SAP s Global Sustainability Partner of The Year Pinnacle Award due to our client value-add approach to sustainability solutions. MES / MOM: formal analysis and practical action MES / MOM is central to any integrated manufacturing approach. Among manufacturing businesses, MES / MOM maturity differs widely with larger enterprises often struggling with maintaining the consistency of multiple home-grown solutions and smaller businesses focussed on taking the first steps. Atos has invested in the development of a strong suite of practical MES / MOM consultancy and analysis services. These stand out because of their use of subsector profiles and best practice templates. This knowledge and experience in MES / MOM is embodied in our M4MES methodology and toolset. M4MES is not generic: its highly developed and industryspecific libraries allow you to map your own status and ambition against the best practice benchmarks of your industry peers. Best practice industrial libraries Process library Discrete library Chemicals Aerospace & defense Consumer packaged goods Automotive High tech electronics Libraries of industry best practice MOM templates Modeling framework ISA-95 BPM Framework repository SCOR Rational Unified Process Framework to capture business and IT best practice Start-up Initiate BPM Analysis Build Test Deploy Close Req Design Implementation methodology for consistent project execution 8 Achieving full manufacturing integration sustainable, effective and agile operations

9 First steps to integrated manufacturing The shift to integrated manufacturing is not a quick technical fix. Over the past four years, Atos has engaged in numerous large-scale integration initiatives with clients around the world. On every occasion, our success has been the result of two main factors: Mutual commitment to the strategic importance of integrated manufacturing Focused analysis of opportunity with quantified and qualified expectation of return. If you would like us to share our experience to date, we are ready to help. Open and transparent. Your business technologists. Powering progress. Achieving full manufacturing integration sustainable, effective and agile operations 9

10 Atos in action Automotive Supply Chain Pinpoint precision in order control was essential for this global provider of components to the world s leading automotive brands. Beginning with its European production facilities, Atos established the blueprint for a standardized MES / MOM approach, which now allows them to respond to dynamic order streams with unprecedented agility. Industrial Vehicle Assembly Despite great products and a highly motivated workforce, order fulfillment was at risk in this modern Central American assembly plant. Atos consultants produced an incisive and actionable response in just a few weeks, showing how a single application architecture can span ERP, MES / MOM and PLM to produce, among other benefits, clear factory simulations for senior management. Truck Best Practice This global truck manufacturer needed to establish a new engine manufacturing plant to produce an existing model in volume. They insisted on building in information best practice from the start. Atos showed how information integration was key to build the real-time interface between MES / MOM and the equipment control layer and Biztalk to join up PLM and ERP systems. Commercial Vehicles This award-winning truck builder runs plants in both the USA and Europe. With a new plant on the drawing board, they wanted to make it an object lesson in smart information integration. Partnering with Atos, they established a complete architecture model for ERP, MES / MOM and PLM, extending right through to the machine control layer. As a result, they have achieved unprecedented production agility and extremely smart reporting. Pharmaceutical Benchmark The reputation of every pharmaceutical company is underpinned by consistency, quality and traceability. For this global brand, Atos has undertaken numerous projects designed to increase control and agility through information integration. Logistics and material management systems have been tightly coupled with SAP to improve agility and throughput without compromising world-class quality and risk control. Harmonization in Chemical Production This international giant in chemicals, paints and coatings sought to harmonize MES / MOM practice across a highly distributed network of European production facilities. As an early MES / MOM adopter, they had gained real benefit and experience, but as often happens, paid the price in consistency and economy of scale. Engaging Atos to harmonize MES / MOM approach and practice, they have laid the foundation for fully integrated information integration, cross-plant and cross-function. European Dairy Leader Timing and tracking are absolutely critical in the dairy industry, and Atos brought the benefits of full integration to this innovative European company. The complex movement of goods across multiple locations is now tracked in realtime, and comprehensively reported in SAP. Integrated warehouse management is used in conjunction with rugged mobile devices to provide full inventory management, tracking all goods movements and material flows. Top Tea Producer One of India s top tea producers was eager to expand as a global brand, but found their home grown systems were just not up to the task. They were looking for end-to-end integration and engaged Atos to deliver under tight time pressures. The Atos solution spanned procurement of raw materials and packaging, blending, production, stock transfer and primary sales and was fully implemented in just four months. High-Tech Although this telecommunications company had recently adopted the Oracle E-Business Suite, it was still not enjoying the benefits of improved collaboration across finance, logistics, and purchasing teams. Atos established a new ERP governance model with clearly specified KPIs. Clear service levels now exist across the supply chain, and the client has reduced costs through incisive rationalization. 10 Achieving full manufacturing integration sustainable, effective and agile operations

11 Achieving full manufacturing integration sustainable, effective and agile operations 11

12 About Atos Atos is an international information technology services company with annual 2011 pro forma revenue of EUR 8.5 billion and 74,000 employees in 48 countries. Serving a global client base, it delivers hi-tech transactional services, consulting and technology services, systems integration and managed services. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail, Services; Public, Health & Transports; Financial Services; Telecoms, Media & Technology; Energy & Utilities. Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. It is the Worldwide Information Technology Partner for the Olympic and Paralympic Games and is quoted on the Paris Eurolist Market. Atos operates under the brands Atos, Atos Consulting & Technology Services, Atos Worldline and Atos Worldgrid. For more information, visit: atos.net For more information, contact: dialogue@atos.net atos.net Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud, Atos Healthcare (in the UK) and Atos Worldgrid are registered trademarks of Atos SA. May Atos.