Jan Snoeij - MESA · Jan Snoeij Principal Consultant. ... XFP 4P MES Broner MES PSImetals QMOS...

www.mesa.org2008 North American Plant-to-Enterprise ConferenceSeptember 21-23, Orlando, FL

Plant Floor Visibilityand MES Product Selection

Jan SnoeijPrincipal Consultant

MESA Strategic Initiatives

The following Strategic Initiatives of MESA International are associated with this

presentation:Lean Manufacturing

Quality & Regulatory ComplianceProduct Lifecycle Management (PLM)

Real-Time EnterpriseAsset Performance Management (APM)

Agenda

• Introduction• Plant Floor Visibility

– Trends and Observations– Improve

• MES Products• Product Selection - best

practices• Conclusions

110101011 INFORMATION FLOW 01101010

MATERIAL FLOW

Raw material producer

Supplier

Factory

Factory

Distributor

Distributor

Retail

Retail

Consumer

Transport

Supply Chain

Objective:Maximalisation customer satisfaction

and profit for all partners

Objective:Maximalisation customer satisfaction

and profit for all partners

Rapid changes,complex environment

• Lowering consumer brand loyalty• Increased price pressure

– Consolidated retail power– Private label producers

• Regulatory requirements– General Food Law– Sarbanes-Oxley

• Shorter product life cycles

– Product innovation required• Globalization

– Branding– Make or buy?– Where to produce?

Supply Chain Challenges

• Reduce product stock-outs• Remove supply chain inefficiencies• Lower inventory to reduce holding

costs• Reduce transportation and order

management costs• Reduce order fulfillment lifecycle• Management of inventory

replenishment process• Retail & regulatory mandates• Track-and-trace applications force

supply chain optimization



MATERIAL FLOW

MATERIAL FLOW

Raw MaterialSupplier

Supplier

Plant

Plant

Distributor

Distributor

Retail

Retail

Consumer

Transport

Plant Performance is Key

Source: AMR ResearchSource: AMR Research

Produce to scheduleProduce to scheduleDelivery to scheduleDelivery to scheduleIncreased "agility" (product availability)Increased "agility"

(product availability)

Plant is no longer "black box"

• Need for full vertical integration!– Production processes must be aligned with

the external supply chain in order to enable higher speed, better quality and more agility

• Need for full horizontal integration!– Logistics and manufacturing information– Financial and product(ion) informationERPERP

MESMES

• Transparency and visibility– Streamlined business processes and workflows– Implies highly integrated information systems,

with rapid flows of accurate data

Agenda





Improve

Businessprocesses

OrganizationPeople

Toolsincl. IT

Enterpriseobjectives

• Focus, make choices• Consistent strategy and execution

– business processes– organisation & people– tools

• Strategic assets:– production and supply chain(s)– logistics and procurement programmes– inventory cycles– maintenance– personnel and organisation– …

SMART Objectives

Specific– What exactly are we going to do?

Measurable– How much are we going to do?

Acceptable– Is there support for what we want to do?

Realistic– Is it feasible what we want?

Timing– When will we be ready?

'This is the last strategy of our management !'

It is not a perfect strategy, but we apply it until we know something better !'

Best in Class Strategic Actions

Source: Aberdeen GroupSource: Aberdeen Group

32%

43%

43%

61%

64%

0% 10% 20% 30% 40% 50% 60% 70%

Improve Sales & Operationsplanning process

Optimize performance at individual plants and factories

Drive standards and consistency acrossglobal manufacturing networks

Lean initiatieves

Improve processes that managethe material and information flows

32%

43%

43%

61%

64%

0% 10% 20% 30% 40% 50% 60% 70%

Improve Sales & Operationsplanning process

Optimize performance at individual plants and factories

Drive standards and consistency acrossglobal manufacturing networks

Lean initiatieves

Improve processes that managethe material and information flows

Top approaches within the plant (best in class)

Source: Aberdeen GroupSource: Aberdeen Group

29%

36%

36%

43%

46%

0% 10% 20% 30% 40% 50%

Consolidating the management andreporting of manufacturing information

Deploying real-time informationto decision-makers

Integrating systems into commonfactory floor information platform

Building flexibility into manufacturingand supply chain processes

Standardizing plant and factoryapplications and control systems

29%

36%

36%

43%

46%

0% 10% 20% 30% 40% 50%

Consolidating the management andreporting of manufacturing information

Deploying real-time informationto decision-makers

Integrating systems into commonfactory floor information platform

Building flexibility into manufacturingand supply chain processes

Standardizing plant and factoryapplications and control systems

27%

33%

37%

41%

52%

0% 10% 20% 30% 40% 50% 60%

Lack of funds and/or lackof perceived value

Lack of strategy to unifyinformation across

manufacturing

Lack of timelyinformation to makeinformed decisions

Incompatible andinconsistent systems

Gap between ERP andfactory floor

27%

33%

37%

41%

52%

0% 10% 20% 30% 40% 50% 60%

Lack of funds and/or lackof perceived value

Lack of strategy to unifyinformation across

manufacturing

Lack of timelyinformation to makeinformed decisions

Incompatible andinconsistent systems

Gap between ERP andfactory floor

Source: MESA InternationalSource: MESA International

Internal IT Challenges

Integration and standardisation

• Prerequisites (ROI)– Efficient and effective– Compliant to law and regulations– Flexible, agile

• Full integration of plant and enterprise– Processes– Organization– Applications– Data– Technical infrastructure

• Production

• Maintenance

• Quality

• Inventory

• Production

• Maintenance

• Quality

• Inventory

Latency

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Business Movers Others

AnnuallyQuarterlyMonthlyWeekly< 24 hours

between business metrics and operations that caused them

Source: MESA InternationalSource: MESA International

Example: Quality

Example: Quality (2)

10 8 8 6 10

ACTION

Agenda





Participants 2008

Some Vendor Facts

• Origin 2004 2006 2008– North & South America 55% 47% 36%– Europe 42% 46% 51%– Asia & Australia 3% 9% 13%

• Size (employees)– More than 150 48% 45% 40%– Between 50 and 150 17% 18% 22%– Less than 50 35% 37% 38%

• Established– Before 1990 64% 65% 55%

Questionnaire

• Vendor information

• General

• Improvements

• Interfaces

• Implementation and Deployment

• MESA compliance

• ANSI/ISA-95 compliance

• Technical aspects

• Mobile solutions

Products per Industry Sector

0%

10%

20%

30%

40%

50%

60%

70%

Ele

ctro

nics

Aut

omot

ive

Food

& B

ev.

Pha

rmac

eutic

al

Mac

hine

ry &

Too

l

Sem

icon

duct

ors

Pla

stic

s &

Rub

ber

Aer

ospa

ce &

D

efen

se

Hea

vy M

etal

s

Fine

Che

mic

als

Con

s.P

acke

d G

oods

Pap

er &

Pul

p

Life

Sci

ence

s

Med

ical

Dev

ices

Bul

k C

hem

ical

s

Hom

e &

Per

s.C

are

Pre

ss &

Prin

ting

Pet

roch

emic

al

Oil

& G

as

Util

ities

and

Pub

lic

Sec

tor

Bui

ldin

g &

Infr

a

Min

ing

0%

10%

20%

30%

40%

50%

60%

70%

Ele

ctro

nics

Aut

omot

ive

Food

& B

ev.

Pha

rmac

eutic

al

Mac

hine

ry &

Too

l

Sem

icon

duct

ors

Pla

stic

s &

Rub

ber

Aer

ospa

ce &

D

efen

se

Hea

vy M

etal

s

Fine

Che

mic

als

Con

s.P

acke

d G

oods

Pap

er &

Pul

p

Life

Sci

ence

s

Med

ical

Dev

ices

Bul

k C

hem

ical

s

Hom

e &

Per

s.C

are

Pre

ss &

Prin

ting

Pet

roch

emic

al

Oil

& G

as

Util

ities

and

Pub

lic

Sec

tor

Bui

ldin

g &

Infr

a

Min

ing

0

5

10

15

20

Pro

ficy

Plan

t App

s.W

onde

rwar

e M

ES&E

MI

aspe

nON

EP

I Sys

tem

Shop

floor

-Onl

ine

Qub

esB

usin

ess

FLEX

SIM

ATIC

ITFl

exN

et®

Qua

rtis

MW

are

Yok

ogaw

a M

IPP

ADIC

OM

Sui

teD

abom

-iVis

ualiz

erFa

ctor

yTal

kEa

sy95

Glo

balS

CR

EEN

Hyd

ra M

ESiT

AC M

ES S

uite

MES

plus

PM

PM

SPR

OD

ACO

bjec

tive

XS S

uite

Emer

son

CS/

AMS

Prod

ucim

/Pha

rmac

imIn

Qu

MES

Mes

tec

MES

R2E

-ME

SU

niso

ft C

ELL

SC

amst

ar M

nfg.

nano

Trac

kSA

P-V

isipr

ise

Mnf

g.A

egis

Fus

ion

Ampl

aD

2000

Ent

isPA

S-X

PVS

SH

AI*Q

PM

MES

cont

rol.n

etnM

etric

Sui

teP

ertin

ence

Sui

tePl

ant i

TP

rofic

y Tr

acke

rS

olum

ina

SYP

RO

SA

ctiv

e A

ccur

ate

Eye

lit M

ES/Q

MS

intra

FAC

TOR

YW

IPtra

cXF

P4P

MES

Bron

er M

ESP

SIm

etal

sQ

MO

SO

pera

tor

0

5

10

15

20

Pro

ficy

Plan

t App

s.W

onde

rwar

e M

ES&E

MI

aspe

nON

EP

I Sys

tem

Shop

floor

-Onl

ine

Qub

esB

usin

ess

FLEX

SIM

ATIC

ITFl

exN

et®

Qua

rtis

MW

are

Yok

ogaw

a M

IPP

ADIC

OM

Sui

teD

abom

-iVis

ualiz

erFa

ctor

yTal

kEa

sy95

Glo

balS

CR

EEN

Hyd

ra M

ESiT

AC M

ES S

uite

MES

plus

PM

PM

SPR

OD

ACO

bjec

tive

XS S

uite

Emer

son

CS/

AMS

Prod

ucim

/Pha

rmac

imIn

Qu

MES

Mes

tec

MES

R2E

-ME

SU

niso

ft C

ELL

SC

amst

ar M

nfg.

nano

Trac

kSA

P-V

isipr

ise

Mnf

g.A

egis

Fus

ion

Ampl

aD

2000

Ent

isPA

S-X

PVS

SH

AI*Q

PM

MES

cont

rol.n

etnM

etric

Sui

teP

ertin

ence

Sui

tePl

ant i

TP

rofic

y Tr

acke

rS

olum

ina

SYP

RO

SA

ctiv

e A

ccur

ate

Eye

lit M

ES/Q

MS

intra

FAC

TOR

YW

IPtra

cXF

P4P

MES

Bron

er M

ESP

SIm

etal

sQ

MO

SO

pera

tor

Focused Industry Sectorsper Vendor

Little Focus High Focus

Production & Logistical Typologies

50%

75%

66%

79% 79%

38%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Continuous Process

Batch / Semi Process

Discrete Make to Stock Make to Order Engineer to Order

Assemble to Order

2002

2005

2008

50%

75%

66%

79% 79%

38%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Continuous Process

Batch / Semi Process

Discrete Make to Stock Make to Order Engineer to Order

Assemble to Order

2002

2005

2008

Helpdesk and Support

0%

20%

40%

60%

80%

100%

N. America S. America Europe M. East & Africa Asia Pacific

Helpdesk + Support

Helpdesk only

Support only

None

0%

20%

40%

60%

80%

100%

N. America S. America Europe M. East & Africa Asia Pacific

Helpdesk + Support

Helpdesk only

Support only

None

Support MESA-11 functions

1

2

3

4

5

6

Res

ourc

e A

lloca

tion

&

Sta

tus

Ope

ratio

ns /

Det

ail

Sch

edul

ing

Dis

patc

hing

P

rodu

ctio

n U

nits

Doc

umen

t C

ontro

l

Dat

a C

olle

ctio

n /

Acq

uisi

tion

Labo

r M

anag

emen

t

Qua

lity

Man

agem

ent

Pro

cess

M

anag

emen

t

Mai

nten

ance

M

anag

emen

t

Pro

duct

Tr

acki

ng &

G

enea

logy

Per

form

ance

A

naly

sis 2001

2008

80 - 100%

60 - 80%

40 - 60%

20 - 40%

0 - 20%

1

2

3

4

5

6

Res

ourc

e A

lloca

tion

&

Sta

tus

Ope

ratio

ns /

Det

ail

Sch

edul

ing

Dis

patc

hing

P

rodu

ctio

n U

nits

Doc

umen

t C

ontro

l

Dat

a C

olle

ctio

n /

Acq

uisi

tion

Labo

r M

anag

emen

t

Qua

lity

Man

agem

ent

Pro

cess

M

anag

emen

t

Mai

nten

ance

M

anag

emen

t

Pro

duct

Tr

acki

ng &

G

enea

logy

Per

form

ance

A

naly

sis 2001

2008

80 - 100%

60 - 80%

40 - 60%

20 - 40%

0 - 20%

ANSI/ISA-95 Functional Model

MAINTENANCEOPERATIONS

MANAGEMENT


MANAGEMENT

QUALITYOPERATIONS

MANAGEMENT

QUALITYOPERATIONS

MANAGEMENT

PRODUCTIONOPERATIONS

MANAGEMENT


MANAGEMENT

INVENTORYOPERATIONS

MANAGEMENT

INVENTORYOPERATIONS

MANAGEMENT

INVENTORY OPERATIONS

MANAGEMENT


MANAGEMENT

Procurement(5.0)

Procurement(5.0)

ProductionScheduling

(2.0)


(2.0)

Material andEnergy Control

(4.0)


(4.0)

ProductInventory

Control(7.0)

ProductInventory

Control(7.0)

Product CostAccounting

(8.0)


(8.0)

QualityAssurance

(6.0)

QualityAssurance

(6.0)

ProductShipping Admin

(9.0)


(9.0)

OrderProcessing

(1.0)

OrderProcessing

(1.0)

ProductionControl

(3.0)

ProductionControl

(3.0)

MaintenanceManagement

(10.0)


(10.0)

Source: ANSI/ISA-95

ResearchDevelopment& Engineering


Marketing& Sales

Marketing& Sales


MANAGEMENT


MANAGEMENT

QUALITYOPERATIONS

MANAGEMENT

QUALITYOPERATIONS

MANAGEMENT


MANAGEMENT


MANAGEMENT

INVENTORYOPERATIONS

MANAGEMENT

INVENTORYOPERATIONS

MANAGEMENT


MANAGEMENT


MANAGEMENT

Procurement(5.0)

Procurement(5.0)


(2.0)


(2.0)


(4.0)


(4.0)

ProductInventory

Control(7.0)

ProductInventory

Control(7.0)


(8.0)


(8.0)

QualityAssurance

(6.0)

QualityAssurance

(6.0)


(9.0)


(9.0)

OrderProcessing

(1.0)

OrderProcessing

(1.0)

ProductionControl

(3.0)

ProductionControl

(3.0)


(10.0)


(10.0)

Source: ANSI/ISA-95



Marketing& Sales

Marketing& Sales

Support ISA-95 Activities

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Def

initi

on M

ngt

Res

ourc

e M

ngt

Det

aile

d S

ched

ulin

g

Dis

patc

hing

Exe

cutio

n

Dat

a C

olle

ctio

n

Trac

king

Ana

lysi

s

Standard + ConfigurableProduction

Maintenance

Quality

Inventory

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Def

initi

on M

ngt

Res

ourc

e M

ngt

Det

aile

d S

ched

ulin

g

Dis

patc

hing

Exe

cutio

n

Dat

a C

olle

ctio

n

Trac

king

Ana

lysi

s

Standard + ConfigurableProduction

Maintenance

Quality

Inventory

Support and No Support

• Best supported Production activities.

• Support for the other activities increased more!

82%

52%

64% 59%

0%

20%

40%

60%

80%

100%

Production Maintenance Quality Inventory

Standard + Configurable

2006

2007

2008

82%

52%

64% 59%

0%

20%

40%

60%

80%

100%


Standard + Configurable

2006

2007

2008

10%

33%

24%

33%

0%

20%

40%

60%

80%

100%


No support

2006

2007

2008

10%

33%

24%

33%

0%

20%

40%

60%

80%

100%


No support

2006

2007

2008

Consider Best-of-Breed for Maintenance, Quality

and Inventory ?

Mobile Solutions per MESA-11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Res

our

ce A

lloca

tion

& S

tatu

s

Op

erat

ions

/ D

etai

l S

ched

ulin

g

Dis

pat

chin

g P

rod

uctio

n U

nits

Do

cum

ent C

ontr

ol

Dat

a C

olle

ctio

n /

Acq

uisi

tion

Labo

r Man

agem

ent

Qua

lity

Man

agem

ent

Pro

cess

M

anag

emen

t

Mai

nte

nan

ce

Man

agem

ent

Pro

duc

t Tra

ckin

g &

G

enea

logy

Per

form

ance

A

nal

ysis

20042005200620072008Exp.2009

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Res

our

ce A

lloca

tion

& S

tatu

s

Op

erat

ions

/ D

etai

l S

ched

ulin

g

Dis

pat

chin

g P

rod

uctio

n U

nits

Do

cum

ent C

ontr

ol

Dat

a C

olle

ctio

n /

Acq

uisi

tion

Labo

r Man

agem

ent

Qua

lity

Man

agem

ent

Pro

cess

M

anag

emen

t

Mai

nte

nan

ce

Man

agem

ent

Pro

duc

t Tra

ckin

g &

G

enea

logy

Per

form

ance

A

nal

ysis

20042005200620072008Exp.2009

46%

53%65%

73%

62% 68%

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 Expected 2009

46%

53%65%

73%

62% 68%

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 Expected 2009

46%

53%65%

73% 76% 78%

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008* Exp.2009*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ISO or CMM Own Quality System ISO, CMM or Own Certified or Assessed

Valid Certificate

200320042005200620072008

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ISO or CMM Own Quality System ISO, CMM or Own Certified or Assessed

Valid Certificate

200320042005200620072008

Internal Quality System

Regulatory

63%57%

70%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

deployed FDA developed GAMP 21 CFR Part 11 Compliant

Validation Dossier

2002

2005

2008

63%57%

70%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

deployed FDA developed GAMP 21 CFR Part 11 Compliant

Validation Dossier

2002

2005

2008

Architecture

80%

62%

84%

22%

85% 85%

67%

0%

20%

40%

60%

80%

100%C

lient

/Ser

ver

Load

B

alan

cing

Dis

tribu

ted

Arc

hite

ctur

e

DN

A

Thin

Clie

nt

Web

bas

ed

arch

itect

ure*

SO

A

2002200320042005200620072008

80%

62%

84%

22%

85% 85%

67%

0%

20%

40%

60%

80%

100%C

lient

/Ser

ver

Load

B

alan

cing

Dis

tribu

ted

Arc

hite

ctur

e

DN

A

Thin

Clie

nt

Web

bas

ed

arch

itect

ure*

SO

A

2002200320042005200620072008

Agenda





Awareness FeasibilitySpecification

& Selection

RealizationMaintenance

&Support

Staged Approach

Change Management

Technology & Architecture

Training & Documentation

Project Management

Validation Processes & Systems

Time

Impac

t

Specification and selection

• User Requirement Specification• Technical infrastructure• Vendor information (RFI)• Product and tool selection

Awareness FeasibilitySpecification

& Selection

Selection process

• Objectives: acceptance and active participation of all involved

• Convinced of:– selection of "sufficiently good" MES

product– transparency and validity of the

selection process itself

• Phases1. Determine shortlist2. Find the champion!

Long List

Short List

Final Selection

Phase 1

Phase 2

Long List

Short List

Final Selection

Phase 1

Phase 2

Focus &

Scoping

Knock Out&

Other Criteria

Get Info&

EvaluateOrganization Short

ListShortList

Determine shortlist

• Involvement– Management– "Process owners", key users– ICT department– Technical department,

engineering

• Organization– Small steering group– (Bigger) selection

group

Focus &

Scoping

Knock Out&

Other Criteria

Get Info&


ListShortList

Determine shortlist (2)

• Focus and scope– Company operating policy– Consistent and focused requirements

Focus &

Scoping

Knock Out&

Other Criteria

Get Info&


ListShortList


– Proven focus and experience of the vendor

• production typology• industrial sector

– Availability of support– Suitability of MES product

– Support by product of• relevant main functions• specific processes/activities

– Preconfigured solutions– Regulatory compliance– Quality system vendor

• Knock-out criteria (according to end users)

Focus &

Scoping

Knock Out&

Other Criteria

Get Info&


ListShortList


• Information and evaluation– Conferences, seminars, fairs– Literature– Associations, market organizations, e.g. MESA– Colleagues– Internet– Report "MES Product Survey"

Vendor Meetings

FinalEvaluation:Selection

PrepareRequirements

Document

MESProductMES

Product

Find the champion!

• Requirements document– Objectives for MES implementation– Business processes within scope– Required functionality– Interfaces with other systems– Few relevant (open) questions– Specific test case (small)

How does the vendor commit to

your success!

How does the vendor commit to

your success!

"Open" Questions

• How does the vendor propose to support your business processes with his product in order to achieve the objectives?

• What methodology does the vendor use for executing the project successfully?

• What software modules does the vendor propose to use? What infrastructure and hardware will be needed? How will the interfaces with other systems be realized?

• What is a realistic plan and are there specific issues to take into account, e.g. availability of manufacturer’s employees?

• What are the cost estimates for the implementation with (at least) a breakdown of hardware, software licenses and services?

• What is the vendor’s vision and policy towards future developments, both functionally and technically?

Vendor Meetings


PrepareRequirements

Document

MESProductMES

Product

Find the champion!

• Meeting with Vendor– Does the vendor understand your needs– Is the vendor (or integrator) capable to implement succesfully?– Viability of the partnership

• vision, cooperation, financial– Roles and responsibilities– Who is involved directly - organizations and individuals– Reference visits

Vendor Meetings


PrepareRequirements

Document

MESProductMES

Product

Find the champion!

• Final choice (ranking)– Functional:

• does the MES product fit to demands?– Technical:

• sufficiently reliable• does it fit to company's strategy and policies

– Financial– Cultural

Agenda





The difference ...

Black-box versus "glass" factory• High feedback speed• Clear link between corporate strategy and

manufacturing activities• Knowing the metrics• Focus at important aspects• Use of appropriate tools (MES, dashboards, ...)

Plant floor visibility• Delivers by far more improvement and profit / ROI• Separates the winners from the rest!

Closing remarks

• "No idea!" - deadly answer?

• Companies knowing their shortcomings best, improve most!

• Metrics matter!

• Technology is enabler• It is all about people !

Want to know more ...

Ask now or later:in our booth

[email protected]

Jan Snoeij - MESA · Jan Snoeij Principal Consultant. ... XFP 4P MES Broner MES PSImetals QMOS...

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