Post on 30-Nov-2015
MES/CPM Trends and OpportunitiesPlant Software Plays A Key Role in Manufacturing Innovation
MES/CPM Trends and OpportunitiesPlant Software Plays A Key Role in Manufacturing Innovation
Greg GorbachVice President
ARC Advisory Groupggorbach@arcweb.com
ARC Forum, Pune, August 2011
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TopicsTopics
Trends MES, CPM, and MOM New MES Requirements Manufacturing Operations Management The Players Purchase Criteria
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Macro Trends Driving Today’s Industrial EcosystemMacro Trends Driving Today’s Industrial Ecosystem
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Today’s Business EnvironmentMakes Innovation and Responsiveness A NecessityToday’s Business EnvironmentMakes Innovation and Responsiveness A Necessity
Business Environment•Power of Emerging Economies
•Global Competition
•Rise of the Millennials
•Barriers to IT Access Falling
•Dwindling Resources
• Increasing Energy Cost
•Water Scarcity
•Recycling, Disposal
•Climate Change
•Social Responsibility
• Increasing Regulations
• IT Security
• etc.
Differentiators•Quality
•Branding
•Product Innovation
•Product Design
• Traceability, Product Info
•Process/Service Innovation
•Response Time
• Technology
• Localization
•Green
•Value Networks
•Anti-Counterfeiting
•Price
• etc.
1.
2.
3.
4.
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Impact•Competition for tech savvy workers
•Need to manage complex network of suppliers, partners, customers
•New competitors entering the market
•More consumer power
•Online ratings
•Collaborative buying
• Increasing cybercrime
•More customization
•New business processes will emerge
• etc.
IT Trends•Cloud computing
•Mobility
• Internet of things
•Continuous Services/Connected Devices
•Cybersecurity threats
•Virtualization
• In-memory computing
•Openness
• Ease of use
•Reduced cost
•Social networks
• Ease of communication
•Accessible, powerful analytics
• etc.
3. Accessible ITWill drive and enable manufacturing ecosystem changes3. Accessible ITWill drive and enable manufacturing ecosystem changes
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2011: A New Perspective Next Decade Will be About Empowering Value Networks2011: A New Perspective Next Decade Will be About Empowering Value Networks
+
= Transformation of Manufacturing
Plant-Centric, Integrated
Value Network Collaboration
Shifting Economic
Power+Changing
Demographics
From: To:
+ Resource & Environment
Drivers
Powerful New IT
Capabilities
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Collaborative Value Network (CVN)Focuses on Activities Throughout the Value NetworkCollaborative Value Network (CVN)Focuses on Activities Throughout the Value Network
Make
Design
Delive
r
Sta
ge
Source
Production Network
Logistics
DistributionPurchasing
Service
Sales, Retail Customers
Supplier Network
Engineering
Construction
Portfolio Plan
Prod’n AssetsPlant & Equipment
Product & Plant
Support
Sel
l
Ret
ire
In order to compete effectively, better IT
tools are being utilized throughout the value network to speed and
optimize innovation, production, and
delivery of goods and services
Today manufacturers operate within one or
more networks of companies that work together to provide goods and services to end consumers
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New MES RequirementsNew MES Requirements
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Industry Classic MES New RequirementsSemiconductor Complex Routing, Resource
Allocation, Quality, WIP Tracking, etc.
Visibility, Analytics/Decision Support, Outsourced Manufacturing, Business System Synchronization, KPIs, Performance, Change Mgmt, Security, Electronic Manufacturing History etc.
Pharmaceutical Compliance, Quality (Direct and Enforce Production), Electronic Batch Records, Electronic Signature, etc.
Visibility, Analytics/Decision Support, Outsourced Manufacturing, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History etc
Continuous Process
Collection of Apps: Optimization, Historian, Advanced Process Control, etc.
Visibility, Analytics/Decision Support, Outsourced Manufacturing, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History, etc
A&D (Complex Discrete)
CAPP, Quality, Resource Allocation (Operators, Workstations, Tooling, etc.) WIP Tracking, Traceability, Work Instructions, NCR Resolution, etc.
Visibility, Analytics/Decision Support, Outsourced Manufacturing, Supplier Quality Mgmt, Change Management, Security, Electronic Manufacturing History, etc
Automotive Supplier
Quality, Resource Allocation (Operators, Workstations, Tooling, etc.) Work Instructions, Just-in Sequence Manufacturing/ Packing/ Shipping, Error-proof Packout and Labeling, etc.
Visibility, Analytics/Decision Support, Orchestrate Inventory Replenishment by Operation, Traceability and Recall Management, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History, etc
Automotive OEM Visual Alarms, Stack Lights, and Marquees, Line Control & Broadcasting, Supplier Component Sequencing, etc.
Visibility, Outsourced Manufacturing, Global Manufacturing, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History, Traceability and Genealogy, etc
Today’s Dynamic, Demanding Environment Places a Premium on Information and Synchronization
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Contemporary Plant Software TopicsManufacturers need a path to tomorrow’s solutionsContemporary Plant Software TopicsManufacturers need a path to tomorrow’s solutions
Operations Platform, Integration Visibility, Analytics, Intelligence KPIs and Metrics Workflow, Business Process Mgt Security Mobility Innovation PLM Integration Quality Management Materials Movement Integration Traceability Collaboration/Social Computing SaaS, Cloud Computing
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MES, CPM, and MOMMES, CPM, and MOM
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MOMincludes EAM, LEAN,
QMS, RPO, LIMS, EH&S, HMI*, Software
Platform, etc.
Manufacturers’ Needs Extend Well Beyond Traditional MES ApplicationsManufacturers’ Needs Extend Well Beyond Traditional MES Applications
Enterprise & Business Network
Line/Plant
Incre
asin
g F
un
cti
on
ality
Performance
CPMincludes EMI, SPC, Historian, CAPA, Recipe Mgt, etc.
MES
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Manufacturing Operations ManagementManufacturing Operations Management
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Operations ManagementOperations Management
Operations Management
Production Management
Inventory Management
Business Integration
Maintenance Management
Regulatory Compliance
Energy Management
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Operations Management Definition:Operations Management Definition:
Operations Management is the management of the people, business processes, technology and capital assets involved in: • Procuring and receiving raw materials and components
- Especially as it relates to obtaining, storing, and moving necessary materials/components in a timely manner and of suitable quality to support efficient production
• Implementing product designs, specifications, formulations, or recipes by manufacturing products- Including manufacturing process planning and validation
• Distributing these products to customers- Especially as it relates to sequencing and in-house logistics
• And for some products, supporting them through their End-of-Life
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What’s Needed?A Holistic IT Approach to Managing OperationsWhat’s Needed?A Holistic IT Approach to Managing Operations
Modern Platform
Broad Connectivity &
Synchronization
Comprehensive Application Suite
Operations Management =
Source: ARC Advisory Group
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Components of a Comprehensive Plant Floor SolutionComponents of a Comprehensive Plant Floor Solution
Plan Operate InformProcesses
Integration Supply ChainEngineering
Business
Controls & Equipment
Platform
• Real-time Plant Capable• Technology Platform• Applications Platform• Business Process Mgt• Security• Role-based Portals• Unified Data• Integration Engine• Change Management• etc.
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Manage Production ProcessesUse Detailed, Industry-Specific List for System SelectionManage Production ProcessesUse Detailed, Industry-Specific List for System Selection
•Schedule•Processes•Data and Test Needs
Plan Production•Enforce Processes•Guide Operators•Collect Data
Execute Production•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-side•RFID
Move & Store Inventory
•Maintenance & Repair•Work Orders•Synchronize w/Operations
Manage Assets•RMA•MRO•Recovery & Recycling
Support Product thru EOL
Processes Examples
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Operations Management SystemsGlobal PerspectiveOperations Management SystemsGlobal Perspective
Enterprise IT S/W Infrastructure
• Different Automation Systems• Different ‘MES’ systems• Different Automation Systems• Different Software Systems
Operations IT S/W Infrastructure
Global Business Needs:• Inventory visibility • Compare plants• Balance production• Standardization• Best Practices• Carbon compliance• S/W maintenance & rollout• etc
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Design/Engineering Infrastructure
Global Manufacturing OperationsGlobal Manufacturing Operations
Enterprise InfrastructureOperations Infrastructure
= Manufacturing Node = Design Node
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Custom Integration
Operations
PAMLIMS
CPM/AutomationData
TMSWMS
Equipment
Operations Apps Platform
PDM
P&IDsModels
EquipmentSpecs
Drawings
Eng. & Design Apps Platform
Enterprise Apps Platform
CRMSCM
FINERP EAMConten
t
Technology PlatformEng & Design
Enterprise
Technology Platform
Technology Platform
A 3-Platform ArchitectureA 3-Platform Architecture
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LEAP Manufacturing Technology and Business Practices for World-Class ManufacturingLEAP Manufacturing Technology and Business Practices for World-Class Manufacturing
MES/MOM is Essential For Each Component: L E A P
Leading-edge• Innovative• Technology-forward
• Mobile, Social, Cloud, Model-based, Virtual, PLM, MES, etc.
• Collaborative, Integrated
• Performance driven
Efficient• Profitable• High Quality• Compliant• Safe & Effective• Local/Regional
Agile• Responsive
• Collaborative, Networked, Pull-based, Interactive
• Flexible, adaptive, changeable
Progressive• Sustainable
• Energy, Carbon, Social, Water, Waste, Closed Loop
• Responsible
LEAPMfg
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LEAP ManufacturingLeverages Innovative IT and Business StrategiesLEAP ManufacturingLeverages Innovative IT and Business Strategies
MES/MOM is a Key Vehicle to Take IT Innovations Into the Plant
SC ERP
PLM MOM
Enterprise Platforms
Value Network Collaboration
Business Strategies
Cloud
Mobile
Social
IT Innovation
Analytics
Virtualization
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The PlayersThe Players
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MES/CPM/MOM Supplier Category MatrixMES/CPM/MOM Supplier Category Matrix
Category Objectives Themes Products Status
MES Supplierse.g. Camstar, iBASET, Apriso, VIA-IT, etc.
Grow in Core Industries & New Energy Tech
Performance, Compliance, Quality, Dist’d Mfg, Ops platform
Enterprise Platform, Solumina, FlexNet, MAN-IT, etc.
Many continue to grow
Automation Supplierse.g. Rockwell, GEIP, Siemens, Aspentech, IOM, Schneider, etc.
Own the Shop Floor; Process & Discrete; Targeted expansion
Control System Integration, Dist’d Mfg, Interoperability,Sustainability
FactoryTalk, Proficy, SIMATIC IT, WW MES, etc.
Growth thru acquisition slowing
ERP Supplierse.g. SAP, Oracle, CDC, Plex Systems
Own the Shop Floor;Own the Infrastructure
Collaboration, Performance, Agility, Lean, Dist’d Mfg
SAP MII, SAP ME, Oracle Shop Floor, Fusion; Plex Online (SaaS)
Strong performance
Infrastructure Supplierse.g. Microsoft, IBM , Cisco, (with SAP, Oracle)
Own the Infrastructure
Collaboration, Performance, Agility, Dist’d Mfg
BizTalk; WebSphere; NetWeaver; Fusion
Microsoft succeeding thru partnering
PLM Supplierse.g. Siemens PLM, Dassault, Oracle, etc.
Own the Shop Floor;End 2 End PLM
Innovation, Supplier Collaboration
Teamcenter, Tecnomatix, SIMATIC IT; Intercim products
Growing integrated solutions
SC Supplierse.g. HighJump, Red Prairie
Penetrate Shop Floor
Inventory Management
Manufacturing Advantage,Manufacturing Execution
SC sector is stressed
Technology/Toolkit Supplierse.g. Savigent, Ninety-Five
Penetrate Shop Floor; OEM their technology
BPM, ISA-95, etc. Catalyst, Easy95 Tiny
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CPM-D Market Leaders for 2010CPM-D Market Leaders for 2010
IBM SiView
MPDV Mikrolab
IBS AG
Oracle
Apriso
Invensys
Rockwell Automation
Siemens
Camstar Systems
SAP
Applied Materials
0% 4% 8% 12%
2010 = 1073.7 Million US Dollars
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CPM-D Revenue GrowthCPM-D Revenue Growth
CAGR = 11.7%
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Purchase CriteriaPurchase Criteria
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How Do I Justify Plant Software?Plant IT is Necessary and Cost-EffectiveHow Do I Justify Plant Software?Plant IT is Necessary and Cost-Effective
Cheap Energy Cheap Water Cheap Waste ‘Free’ Emissions Predictable Raw
Materials Available Talent Pool
Expensive Controls & Automation Technology
Expensive Software and IT
YESTERDAY:
Energy Cost Swings Water Cost Rising Expensive Waste Expensive Emissions Unpredictable Raw
Materials Limited Talent Pool
Cheap Controls & Automation Technology
Cheap Software and ITTODAY:
Manufacturing Software is an Essential Tool for Agility,
Compliance, and Cost Control
Cost
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CPM Purchase CriteriaCPM Purchase Criteria
Fit for Purpose• Industry requirements, manufacturing model,
specific functionality, performance, scability• Corporate strategy – high volume? Rapid
Response? Innovative products?• Legacy systems• Technology strategy – architecture, operation
system, policies or standards, multi-plant, etc.
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CPM Purchase Criteria (continued)CPM Purchase Criteria (continued)
Supplier Qualifications• Maturity• Capabilities
• Implementation, training, maintenance, etc.• Size• Industry experience, references• Local support
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CPM Purchase Criteria (continued)CPM Purchase Criteria (continued)
Implementation and Support• Up to 3x to 5x software cost• Usually with a SI partner
• Best practices, training, etc. by supplier• Methodology, strong deployment team, track
record, global reach• Support for issues, bugs, feature requests, etc.
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CPM Purchase Criteria (continued)CPM Purchase Criteria (continued)
Pricing• Generally, one-time fees associated with software
licenses plus recurring fees for maintenance and support
• Per user, per site, per server, per enterprise or some combination.
• SaaS • monthly fee, not especially low, but predictable• Per-user, with a mininimum number of users• Additional fees for extra storage or bandwidth
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Final ThoughtsFinal Thoughts
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LEAP Manufacturing Technology and Business Practices for World-Class ManufacturingLEAP Manufacturing Technology and Business Practices for World-Class Manufacturing
Leading-edge• Innovative• Technology-forward
• Mobile, Social, Cloud, Model-based, Virtual, PLM, MES, etc.
• Collaborative, Integrated
• Performance driven
Efficient• Profitable• High Quality• Compliant• Safe & Effective• Local/Regional
Agile• Responsive
• Collaborative, Networked, Pull-based, Interactive
• Flexible, adaptive, changeable
Progressive• Sustainable
• Energy, Carbon, Social, Water, Waste, Closed Loop
• Responsible
MES/MOM is Essential For Each Component: L E A P
LEAPMfg
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LEAP ManufacturingLeverages Innovative IT and Business StrategiesLEAP ManufacturingLeverages Innovative IT and Business Strategies
SC ERP
PLM MOM
Enterprise Platforms
Value Network Collaboration
Business Strategies
Cloud
Mobile
Social
IT Innovation
MES/MOM is a Key Vehicle to Take IT Innovations Into the Plant
Analytics
Virtualization
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• Operating Excellence
• Enterprise Visibility & Control
• Quality, Flexibility• Efficiency & Cost Control• Asset Performance• Energy, Resource, Mgt• Risk Mgt & Safety
Execution
• DynamicValue Creation
• Collaboration• Business Innovation• Product Innovation• Mfg Process Innovation• Marketing
Innovation
• Governance & Compliance
• REACH• Emissions Mgt• Carbon Tracking• 21CFR part 11• MTSA• etc
Compliance
Drive Manufacturing Performance Three Business Imperatives for a Changing MarketplaceDrive Manufacturing Performance Three Business Imperatives for a Changing Marketplace
Plant Software is a Critical Tool for Achieving Enterprise Performance
Be Effective Be Proactive Be Responsible
Optimize Performance
Extend & Transform Current Business
Support Corporate Citizenship
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Thank YouThank You
For more information, contact the author at ggorbach@arcweb.com or visit our web pages at
www.arcweb.com