CPM and Operations Management Manufacturers Need Plant Software Now More Than Ever February 9, 2010 Greg Gorbach Vice President ARC Advisory Group ggorbach@arcweb.com
Today s Business Environment Makes Innovation and Responsiveness A Necessity A Turbulent Marketplace: Global Competition Customers have many alternatives Price pressure More products and variations needed More product info: Traceability, Pedigree, Carbon footprint, etc. Consistently high quality is critical Fast turnaround Complex delivery terms and schedule Green Increasing Costs Energy Natural resources Regulatory Pressure Growing Climate Change Pressure Other Environmental/Safety Impact on Production: Re-tool for new products Rapid Introduction of New Production Processes More Automation More Plant Software Re-tool to Reduce Energy & Emissions Re-Tool for Green Packaging Re-tool for more flexibility 2
The Manufacturing Balance Has Changed Plant IT is Necessary and Cost-Effective $$$ YESTERDAY: Cheap Energy Cheap Water Cheap Waste Energy Free Cost Emissions Swings s Water Predictable Cost Rising Expensive Raw Materials Waste Expensive Available Emissions Talent Pool Unpredictable Raw Materials Limited Talent Pool TODAY: Cheap Controls & Automation Technology Cheap Software and IT Expensive e Controls o & Automation Technology Expensive Software and IT Manufacturing Software and Automation are Essential Tools for Compliance and Cost Control 3
Manufacturing Performance Pillars 3 Strategies for a Turbulent Marketplace Manufacturing Business Performance Execution Innovation Compliance Op perating Exc cellence e Execution E Plant, Enterprise, SC Enterprise Visibility & Control Quality Efficiency & Cost Control Flexibility Energy, Resource Management on Dy ynamic Value Creati Collaboration Business Innovation Product Innovation Mfg Process Innovation & e ernance mpliance Gove Com REACH, 21CFR, etc. Emissions Mgt, Carbon Tracking Plant Software is a Critical Tool for Achieving Enterprise Performance 4
Operations Management/MES Trends 1. Deals Driven Top-Down Governance Process Improvements Manufacturing Excellence Visibility, End-to-End Performance 2. Business Decision to Invest in Plant IT Ops Platform Legacy replacement Needed for responsiveness, flexibility, quality, etc. 3. Integration with PLM Needed Customer-driven, not industry hype No standards means implementation cost 4. Sustainable Manufacturing Dawning Energy Management Carbon tracking, accountability, compliance Integrated, Flexible Packaging Management 5. Cloud Computing/Services/SaaS on horizon 5
Four Disciplines of CMM Supply Chain Product Plant & Equipment Operations 6
Operations Management and CMM Operations Management Automation 7
Operations Management Operations Management Production Business Regulatory Management Integration Compliance Automation & Controls Maintenance Management Energy Management 8
Manufacturers Needs Extend Well Beyond Traditional MES Applications Incr reasing Fun nctionality CPM MOM MES Performance Line/Plant Enterprise & Business Network 9
What s Needed? A Holistic IT Approach to Managing g Operations Operations Management = Modern Platform Broad Connectivity & Synchronization Comprehensive Application Suite Source: ARC Advisory Group 10
MOM Platform Enterprise Technology Platform SCM Content ERP FIN EAM CRM Enterprise Apps Platform Eng. & Design Apps Platform Custom Integration Operations Apps Platform PDM Drawings Models Eng & Design Equipment Specs P&IDs Technology Platform Data CPM/Automation PAM Equipment Operations WMS TMS LIMS Technology Platform 11
Operations Management Systems Global Perspective Enterprise IT S/W Infrastructure Operations IT S/W Infrastructure Different Automation Systems Different Software MES systems Systems Global l Business Needs: Inventory visibility Compare plants Balance production Standardization Best Practices Carbon compliance S/W maintenance & rollout etc 12
MOM Connectivity Required for Performance Enterprise Synchronization i of Manufacturing with other entities Orchestration of fbusiness Processes Design & Engineering Operations Connects with: Product Support Response to dynamic demands Collaboration among all required parties Supply Chain & External Operations Source: ARC Advisory Group Operations Controls & Equipment Alignment of goals throughout the Enterprise Visibility of Manufacturing Information 13
MOM Functions/Processes Start With Detailed, Industry-Specific Functionality Processes Examples Plan Production Execute Production Track Product Data Inform & Analyze Enforce Quality Move & Store Inventory Manage Assets Schedule Processes Data and Test Needs Enforce Processes Guide Operators Collect Data WIP Tracking Electronic History Traceability & Genealogy Role-based Views Drill-down & Analytics Event-triggered Notification CAPA NCM Supplier Quality WMS Line-side RFID Maintenance & Repair Work Orders Synchronize w/operations Support Product thru EOL RMA MRO Recovery & Recycling Then Configure to Your Situation 14
Operations Management Systems CMM Map Inbound Supply Chain Systems Doc ERP Mgt MDM CRM etc. Enterprise IT S/W Infrastructure Business Systems SCP etc. Design & Engineering Systems SRM WMS Operations IT S/W Infrastructure CPM (MES, EMI, SPC, Historian, CAPA, Recipe Mgt, etc.) EAM Operations Management Systems LEAN etc. QMS PLM MPM RPO PAM EH&S LIMS etc. Shippin ng, Outboun nd SC Systems TMS Control and Automation Systems HMI PLC DCS CNC etc. Plant Applications 15
Sustainability in the Plant MOM Systems Improve Performance to Sustainability Targets Business ARC CMM Model Increasing need for energy efficiency, emissions monitoring, and regulatory tracking ERP requires new functionality, HR enhanced FIN visibility and planning, and greater collaboration in and with Manufacturing Operations Suppliers SCM CRM Customers PLM Enterprise Infrastructure Operations Mgt Systems Equipment & Automation Production Production Execution Detail Scheduling TMS Energy Management Water Management Waste Management Compliance Assurance Production Efficiency Asset Energy Monitoring & Maintenance Carbon Tracking Process Control etc 16
MOM Purchase Criteria 17
MOM Purchase Criteria Product Fit 18
Thank You For more information, contact the author at ggorbach@arcweb.com or visit our web pages at www.arcweb.com com 19