MES Selection: Best Practices - SESAM Worldsesam-world.com/_pdf/sesam-093/02-MESA.pdf · MES...

MES Selection:Best PracticesSESAM Seminar

Copenhagen, March 31, 2011

Jan SnoeijMESA International – Chair EMEA BoardLogica – Principal Consultant

© Logica 2011

• Next week Thursday and Friday, April 7-8, 2011

• Copenhagen

• Two-days training: Certificate of Awareness

• Still a few seats available!

No. 2

MESA Global Education Program

Feedback from particpants

• "I really enjoyed the course, the chance to network and to be challenged on my thinking. I look forward to your feedback and hopefully, to have the chance to make a contribution to MESA somehow in the future.“

• “Thank you for an illuminating educational programme”

MES Selection: Best Practices

© Logica 2011

Business Drivers for Success

No. 3

© 2010 Gartner, Inc. and/or its Affiliates.


© Logica 2011

What are the best in class doing?

No. 4

Best-in-Class Average Laggards

Process

Standardize processes across the enterprise for optimizing manufacturing operations

64% 37% 30%

Standardize measurements of KPIs across enterprise

68% 58% 51%

Standardize processes for response to adverse events

64% 51% 19%

Copyright © 2008 Aberdeen Group


© Logica 2011

• Lowering consumer brand loyalty

• Increased price pressure

• Regulatory requirements

• General Food Law

• Sarbanes-Oxley

• Sustainability

• Shorter product life cycles

• Product innovation required

• Globalization

• Branding

• Make or buy?

• Where to produce?

Trends and observations

No. 5MES Selection: Best Practices

© Logica 2011

Improve

• Synchronize demand, production and supply

• Need of transparency and visibility

• Streamline production and workflows

• Consistent strategy and policy is required with clear objectives

• Alignment of

• Business processes

• Organization & people

• Tools, including IT

Business

processes

Tools Organization


© Logica 2011

1. Introduction

2. Overview Selection Process

3. Prerequisites for Selection

4. Create Shortlist

5. Requirements Document

6. Evaluation and Ranking

7. Closing Remarks

No. 7

Agenda


© Logica 2011

• Objectives: acceptance and active participation of all involved

• Convinced of:

• Selection of "sufficiently good" MES product

• Transparency and validity of the selection process itself

Objectives

• Phases

1. Determine shortlist

2. Find the champion!

Long List

Short List

Final Selection

Phase 1

Phase 2

Long List

Short List

Final Selection

Phase 1

Phase 2


© Logica 2011

Focus

&

Scoping

Knock Out

&

Other Criteria

Get Info

&

Evaluate

OrganizationList

Short

List

Overview

Vendor

Meetings

Final

Evaluation:

Selection

Prepare

Requirements

Document

MES

Product

Phase 1 - Determine shortlist

Phase 2 – Find the Champion!

No. 9

White Paper 11 (2004)


© Logica 2011

1. Introduction



4. Create Shortlist



7. Closing Remarks

No. 10

Agenda


© Logica 2011

Prerequisites for Selection

What needs to be done before you start selecting any

software?

Or can you start right away?


© Logica 2011

Control the Change Process

Vision• Build a shared vision to mobilize your organization

• Identify the major opportunities• Develop a sound financial and operational benefits case

Shape• Align your manufacturing and supply chain process, work and information flows and KPI's

• Specify your information landscape and applications

• Evaluate what is the best software to use

• Develop your project portfolio, plan the program execution

Deliver• Motivate, measure and manage your improvement to drive manufacturing excellence

• Satisfy your people’s needs in application utilization

• Safeguard regulatory compliance

Change• Execute and manage software development

• Efficiently test for performance• Make users familiar and ready to adopt

• Roll-out software across your plants and supply chains


© Logica 2011

You want to improve?

Improvement categories

• Efficiency

• Effectiveness

• Compliance

• Agility

What are the most important aspects you

want to improve?


© Logica 2011

Value Adding Roadmap

As-Is Architecture

As-Is Architecture

Manufacturing IT requirementsManufacturing IT requirements

ProcessesProcesses

ApplicationsApplications

TechnologyTechnology

OrganizationOrganization

As-Is situationAs-Is

situation

To-Be Architecture

To-Be Architecture

Requirements, issues, prioritiesRequirements, issues, priorities

Manufacturing IT principlesManufacturing IT principles

Business requirements



Manufacturing requirementsManufacturing requirementsManufacturing requirements

Benefits RoadmapBenefits RoadmapBenefits Roadmap

TOGAF ADM

SCOR model

ISA 95 model


© Logica 2011

Business Function Model

Level 3 Level 4

Supplier

Supplier

Customer

Customer

Purchase MaterialsPurchase Materials PlanningPlanning

DeliveryDelivery

SalesCustomer Services

SalesCustomer Services

Material Management

Material Management

ProduceProduce

Quality Control Quality Control

Maintenance &

Engineering

Maintenance &

Engineering

Invoice

To be sold

Strategic PlanningStrategic Planning

Purchase order info

Specs & Issues

Contracts Product

Specifications

Specifications & Losses

Samples Analyses

Call of

"others"

Tender

Stock

levels

WIP &

Stock

levels

Daily

production

orders +

scheduling

Product Development

Product Development

Raw material

requirements

Others

purchase plan

Contracts

Capacity feedback

Sales orders

Order progress

info

Docs Status Weight

CertificateSamples Analyses

Incidents Planning

Info/status/

invoice

Requirements

Call of & rephasing

Call of

Year contract

Order

info

legend (ISA-95)


© Logica 2011

• Vision and strategy

• Benefits/business case

• SMART objectives

• Architecture blueprint

• To-be business processes

• Application landscape

• Technology preferences

• Road map (generic)

• Clear scope and focus

• Known risks

Prerequisites for Selection


© Logica 2011

1. Introduction



4. Create Shortlist



7. Closing Remarks

No. 17

Agenda


© Logica 2011

Focus

&

Scoping

Knock Out

&

Other Criteria

Get Info

&

Evaluate

OrganizationList

Short

List

Set-up organization

• Involvement– Management

– "Process owners", key users

– IT department

– Technical department, engineering

• Organization– Small steering

committee

– (Bigger) selection

group


© Logica 2011

Focus

&

Scoping

Knock Out

&

Other Criteria

Get Info

&

Evaluate

OrganizationList

Short

List

Kick-off

• Focus and scope– Company operating policy

– Stay consistent and keep focus at the requirements defined at the beginning

• Prepare kick-off


© Logica 2011

Invite (representatives of) all involved or affected!

Typical agenda

• Introduction

• Preferably by (higher) management

• Objectives and key success factors

• Organization

• Way of working

• What is expected from the attendees?

• Q&A

Kick-off


© Logica 2011

Focus

&

Scoping

Knock Out

&

Other Criteria

Get Info

&

Evaluate

OrganizationList

Short

List

Requirements and Specifications

• Knock-out criteria

–Specific

• process, way of working, …

–Unique

– Important/decisive for being successful

–Pure black/white

• whitout this, no acceptance of the product


© Logica 2011


• Examples of knock-out criteria (according to end users)

–Proven focus and experience of the vendor

• production typology

• industrial sector

• deployment / roll out

–Availability of support

– Support of

• relevant main functions

• specific processes/activities

– Preconfigured solutions

– Regulatory compliance

– Quality assurance system vendor


© Logica 2011


• Knock-out criteria

• Generic/specific processes

• User Requirement Specification (URS)

• Implementation preferences• Big bang or

» Step by step (functionally/by area)

• Single plant implementation or Multi Site roll-out


© Logica 2011

Production Operations (MES)

• Use Logica’s report

“MES” products may cover the following areas as well, but you may need a best-of-breed solution

Initial List

• Quality Operations (LIMS)

– Sapphire (LabVantage), Simatic IT Unilab (Siemens), Labware LIMS (Labware, Inc.), Sample Manager (Thermo LabSystems), QSYS (IBS AG), …

• Maintenance Operations

– Maximo (IBM), SAP PM (SAP), …

• Inventory Operations (WMS)

– Manhattan Associates Pkms, RedPraire, DLx Warehouse, HighJumpWarehouse Advantage, …


© Logica 2011

Intermezzo: MES Products 2010


© Logica 2011

Questionnaire

• Vendor Information

• General Product Information

• Preconfigured Industry Sector Solutions

• Interfaces and Communication

• Implementation and deployment, including multi site roll-outs

• Improvements in current version and in next version

• Support of Manufacturing Operations and MESA's Strategic Initiatives

• ISA-95 Compliance.

• Technical Aspects

• Configurability

• Mobile Solutions


© Logica 2011

Products per Industry Sector

0%

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20%

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No. 27

• Food & Beverage, Automotive, Pharma and Electronics are the most “popular” industry sectors.


© Logica 2011

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Clin

icopia

# Focused Sectors per Vendor

Little Focus High Focus


© Logica 2011

Production & Logistical Typologies

43%

73% 73%

93% 93%

53%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Continuousrocess

Batch / Semi Process

Discrete Make to Stock Make to Order Engineerto Order

Assembleto Order

2002

2005

2008

2009

2010

43%

73% 73%

93% 93%

53%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Continuousrocess

Batch / Semi Process

Discrete Make to Stock Make to Order Engineerto Order

Assembleto Order

2002

2005

2008

2009

2010


© Logica 2011

MES Products and ISA-95

• Next to supporting production operations management (80%), MES vendors are increasingly focusing at maintenance, quality and inventory operations

• Consider best-of-breed solutions if extensive support for the maintenance, quality or inventory activities is required.

For MES software vendors this provides an opportunity to improve solutions by specific developments or via dedicated partnerships.

• Looking at the support for the eight sets of activities (part 3), activities for Data Collection, Execution and Tracking are best supported.

Business Planning & LogisticsPlant Production Scheduling,

Operational Management, etc

Manufacturing Operations & Control

Dispatching Production, Detailed Production

Scheduling, Reliability Assurance, ...

Batch

Control(S88)

Discrete

Control(SME)

Continuous

Control(PDXI, NAMUR)

Level 4

Level 3

Levels

2, 1, 0

Business Planning & LogisticsPlant Production Scheduling,

Operational Management, etc

Manufacturing Operations & Control

Dispatching Production, Detailed Production

Scheduling, Reliability Assurance, ...

Batch

Control(S88)

Discrete

Control(SME)

Continuous

Control(PDXI, NAMUR)

Level 4

Level 3

Levels

2, 1, 0


© Logica 2011

1

2

3

4

5

6P

rod

uct Tra

cki

ng

and

Genealo

gy

Reso

urc

e A

llocatio

nand

Sta

tus

Perf

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ance

Analy

sis

Do

cum

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ontr

ol

Pro

cess

Manag

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ent

Data

Cap

turing

and

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itio

n

Qualit

yM

anag

em

ent

Lab

or

Manag

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ent

Dis

patc

hin

gP

rod

uctio

n U

nits

Lo

gis

tics F

ocused

:TM

S,

WM

S

Co

ntr

ols

:P

LC

, D

CS

80 - 100%

60 - 80%

40 - 60%

20 - 40%

0 - 20%

1

2

3

4

5

6P

rod

uct Tra

cki

ng

and

Genealo

gy

Reso

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e A

llocatio

nand

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ol

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cess

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n

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tics F

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ols

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LC

, D

CS

80 - 100%

60 - 80%

40 - 60%

20 - 40%

0 - 20%

Support Manufacturing Operations(MESA model)


© Logica 2011

Mobile Solutions

• Support Mobile Solutions is best for:

• Data Collection / Acquisition, Product Tracking & Genealogy and Quality Management

• Expected growth in 2011 of approx. 8%

• Largest growth expected for Labor Management, Document Management, Product Tracking & Genealogy and Performance Analysis

• Support for mobile platforms and devices is expected to increase further.

• Mainly Windows based!

• Fat mobile clients stabilizing at ≈ 45%

• Thin client support based on proprietary links remains at just under 40%

• Architecture of web based solutions with mobile browser clients is most supported and expected to increase significantly.

No. 32

0%

20%

40%

60%

80%

100%

Pro

duct

Tra

ckin

g a

nd

Gene

alo

gy

Reso

urc

e

Allo

catio

n a

nd

S

tatu

s

Perf

orm

ance

A

naly

sis

Do

cum

ent

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ntr

ol

Pro

cess

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em

ent

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llecti

on

/ A

cquis

itio

n

Quality

M

anag

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ent

La

bo

r

Manag

em

ent

Dis

patc

hin

g

Pro

ductio

n

Units

2009

2010

exp.2011

0%

20%

40%

60%

80%

100%

Pro

duct

Tra

ckin

g a

nd

Gene

alo

gy

Reso

urc

e

Allo

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La

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r

Manag

em

ent

Dis

patc

hin

g

Pro

ductio

n

Units

2009

2010

exp.2011


© Logica 2011

Internal Quality Assurance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ISO or CMM Own Quality System ISO, CMM or Own Certif ied or Assessed Valid Certif icate

2004

2006

2008

2010

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ISO or CMM Own Quality System ISO, CMM or Own Certif ied or Assessed Valid Certif icate

2004

2006

2008

2010

No. 33

• Valid certificates are still not always available!


© Logica 2011

Regulatory

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DeployedFDA

DevelopedGAMP

21 CFR Part 11 Compliant

ValidationDossier

2002

2004

2006

2008

2010

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DeployedFDA

DevelopedGAMP

21 CFR Part 11 Compliant

ValidationDossier

2002

2004

2006

2008

2010

No. 34

• Consistent with the number of vendors focusing at regulated industries!


© Logica 2011

Technology

• Microsoft still is the dominant technology with almost all products supporting it (XML and dotNET)

• The increase of the application of J2EE seems to slow down (≈ 55%).

• SQL Server (95%) and Oracle (83%) are databases of choice.

• Support for Linux seems to stabilize now

– On server systems: ≈ 52% – On client systems: ≈ 35%

Option for customers seeking an open solution,

but it will cut out still quite a few products


© Logica 2011

Service Oriented Architecture (SOA)

• Application of SOA increasing

• 2007: 46%

• 2008: 67%

• 2009: 79%

• 2010: 90%

Many vendors are investing in this new architecture or technology.

• SOA components increasingly applicable

• Apply from others: 81%

• Applied by others: 78%

• Unambiguous application/interpretation of standards and definitions is required

• This may take a while!


© Logica 2011

Multi Site Roll-Out

55 vendors (92%)

• Product is well-suited for multi-site roll-out

• Only 31 provided more information!

0%

10%

20%

30%

40%

50%

<20% 21-40% 41-60% 61-80% >80%

Avg. cost last two (%) Avg throuput time last two (%)


© Logica 2011

Focus

&

Scoping

Knock Out

&

Other Criteria

Get Info

&

Evaluate

OrganizationList

Short

List

Create an initial list

Gather information

• Conferences, seminars, fairs

• Literature

• MESA, other associations and market organizations

• Colleagues

• Internet, social networks, …

• Report "MES Product Survey"

38

Create Shortlist


© Logica 2011

Example Evaluation Sheet

Supplier / product Batch/S

emi P

rocess

Discr

ete M

anufa

cturin

g

Mak

e-to-O

rder

Make-to

-Sto

ck

Food and B

everage

Consum

er Pack

aged Goods (

non food)

Data C

ollectio

n/Acquisi

tion

Resourc

e Allo

catio

n and S

tatu

s

Dispa

tchin

g Pro

ductio

n Units

Qualit

y Managem

ent

Perform

ance Analy

sis

Main

tenance

Managem

ent

Product

Tra

ckin

g and G

enealogy

Helpdesk

in E

urope

Inte

rface

our E

RP syst

em

SQL

Server

OPC

Count

Remarks

Product A 6 5 5 5 Y Y 6 6 6 6 6 5 6 Y Y Y Y 17

Produc B 6 5 6 6 Y Y 6 6 6 6 6 6 Y Y Y Y 16 Main focus at continuous

Product C 5 5 6 6 Y Y 6 6 6 6 6 5 5 Y Y Y 16

Product D 5 6 6 6 Y* Y* 6 6 6 6 6 5 6 Y Y Y 16 No projects in F&B; geography?

Product E 6 6 5 Y Y 6 6 6 5 6 5 6 Y Y Y Y 16 No batch/semi process

Product F 6 6 6 6 Y Y 6 6 6 6 6 6 Y Y Y Y 16 Veel te zwaar en te groot!

Product G 6 6 6 6 Y Y 6 6 6 5 6 6 Y Y Y Y 16

Product H 5 6 6 6 Y Y 6 6 6 6 6 6 6 Y Y 15

Product I 5 6 6 6 Y Y 6 6 6 5 6 6 Y Y Y 15

Product J 6 6 6 Y Y 6 6 6 6 6 6 6 Y Y Y 15

Product K 6 6 6 6 6 6 5 5 6 5 6 Y Y Y Y 15

Product L 5 6 6 Y Y 5 6 6 6 5 5 6 Y Y Y 15 No Make to Stock?

Product M 6 6 6 6 Y Y 6 6 6 6 6 Y Y Y Y 15 Vooral in complexe omgevingen

Product N 6 6 6 6 6 6 6 6 6 6 6 Y Y Y 14 Focus at other industries

Product O 6 5 5 6 6 6 5 6 6 6 5 Y Y Y 14 Focus at other industries

Product P 6 5 5 Y Y 5 5 5 6 5 5 6 Y Y 14


© Logica 2011

OK, first milestone achived!

What next?

Shortlist Created!

No. 40

• Contact the candidates on the shortlist:

– Tell them that they are shortlisted

– Explain (next steps in) the selection process

– Ask them if they are willing and able to comply to the time schedule


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1. Introduction



4. Create Shortlist



7. Closing Remarks

No. 41

Agenda


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Vendor

Meetings

Final

Evaluation:

Selection

Prepare

Requirements

Document

MES

Product

Requirements Document

• Requirements document (RFP)

– 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!


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Required Functionality (ISA-95)

Production

management

Productionresource

management

Production

capability

ProductionProductionperformance

analysis

Production level 1-2 functions

management

Product

definitionmanagement

Product

definition

Production

management

Production

executionmanagement

Production

dispatching

scheduling

Detailedproductionscheduling

Production

schedule

Production

collection

Production

datacollection

Production

tracking

Production

performance

Equipment and processspecific production rules

Operational commands

Operationalresponses

Equipment and processspecific data

Activity models:

• Production

• Maintenance

• Quality

• Inventory

• Other


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ISA-95 Activities as Checklist

Comments Current system(s)

a Directing the performance of work, including executing the work order and

initiating Level 2 activities.

b Ensuring that the correct resources (equipment, materials, and personnel)

are used in production.

c Confirming that the work is performed according to the accepted quality

standards. This may involve receiving information from quality activities.

d Ensuring that resources are valid for the assigned tasks.Example: This may be ensuring that equipment sterilization status is correct for the

assigned operation (e.g. a vessel is “Clean” before use in production);

Example 2: Equipment certif ications are current, personnel qualifications are up to date,

and materials are released for use.

Production Execution

REMARKS:

Activity

Productionexecution

Production

dispatching

Level 1-2

functions

Productiondata

collection

Dispatch

list

Production

events

Production

information

Product

definition

management

Product production

rules and detailed

production routing

Operational

responsesOperational

commands

Productionexecution

Production

dispatching

Level 1-2

functions

Productiondata

collection

Dispatch

list

Production

events

Production

information

Product

definition

management

Product production

rules and detailed

production routing

Operational

responsesOperational

commands

Production

execution

Production

dispatching

Level 1-2

functions

Production

data

collection

Dispatch list

Production events

Production information

Product

definition

management

Product production rules and detailed production routing

Operational responses

Operational

commands

Production

execution

Production

dispatching

Level 1-2

functions

Production

data

collection

Dispatch list

Production events

Production information

Product

definition

management

Product production rules and detailed production routing

Operational responses

Operational

commands


© Logica 2011

• 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?

45

"Open" Questions


© Logica 2011

1 INTRODUCTION

1.1 Objectives

1.2 Background and scope

1.3 Selection procedure

1.4 Current status

1.5 Request to the vendor

2 REQUIREMENTS

2.1 Production process

2.2 Overview Processes

2.3 Functional requirements

2.4 Technical requirements

2.5 List of aspects to be demonstrated

2.6 Test case / small proof of concept

3 QUESTIONS

Document Content (example)


© Logica 2011

• To check the capability of supporting specific processes or very specific and important issues

• Limit the case to the essentials for which it is expected that the product might not be able to support them properly.

• Check:

• How has the case been realized? Take a look under the hood!

• What part was standard functionality, what part could be configured,

• What part was customized?

• If some programming has been done: what is its technical quality?

• How much time was needed?

• Next to the proof of the capability to support the defined functionality, information can be obtained about the amount of customization and the time needed for it.

Test case / Proof of concept


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Analysis and Evaluation

At this point in time, this is limited to:

• Written response to the Requirements Document (RFP)

– Quality and fit of the content (answers)

• All other contacts with the solution provider:

– Any questions asked? • Quality and quantity!

• Well prepared and well thought through?

• Do the questions reflect the solution providers experience in your sector / operations?

• Are they taking the selection process seriously enough?

– Timely, adequate response?

• Any open issues, questions, … have to be discussed during the meeting with the solution provider

• Send them specific instructions what and how you want to hear/see!


© Logica 2011

Solution Provider Meetings

Vendor

Meetings

Final

Evaluation:

Selection

Prepare

Requirements

Document

MES

Product

• Meeting with Solution Provider

–Does the solution provider understand your needs?

–Do you understand what he is exactly offering?

–Is the solution provider capable to implement succesfully?

–Viability of the partnership

• vision, cooperation, financial

–Roles and responsibilities

–Who is involved directly - organizations and individuals

–Reference visits


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• Welcome by host

• Introduction of the solution provider• Max 5 minutes! You know them already quite well!

• Presentation about the MES product

• Demonstration of the MES product

• Real software (no slideware)

• Demonstration of the test case (if applicable)

• Questions & Answers• From both parties

• Close

Agenda of the Meetings*

* Meetings are typically between 4 and 8 hours


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• References in the same or comparable types of industry may deliver very valuable information.

• A reference visit provides the opportunity to:

• Verify the estimated time and cost of the implementation

• Assess the reliability and the co-operation of the solution provider (vendor and/or the system integrator)

• See the MES software in real life and the performance of it

• Assess the after sales support by the vendor

Reference Visits


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Vendor

Meetings

Final

Evaluation:

Selection

Prepare

Requirements

Document

MES

Product

Find the Champion!

• Final choice (ranking)

–Functional:

• Does the MES product fit to demands?

–Technical:• Sufficiently reliable

• Fit to your company's strategy and policies

–Financial

–Cultural

–Are you convinced you will be successful together?


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Find the Champion!

• Working Group proposal:

– One or more candidates in specific sequence

– Specify and quantify the differences between the accepted candidates

• Steering Group approves proposal

Are we ready now?Can purchasing buy the software and can we start implementing?


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• Maybe, you can buy the software licenses (only).

• Before starting the implementation, Functional and Design Specifications are needed

• For a contract with an (external) party to execute the implementation or roll-out project, these specifications are required as well.

Handover to Purchasing


© Logica 2011

• Before starting a MES Product selection:

• Build a shared vision to mobilize your organization

• Identify the improvement potential

• Define SMART objectives

• Align • Business and manufacturing processes

• Organization and people

• Applications, data and technical infrastructure

Closing Remarks


© Logica 2011

• MES buyers now have more choice and can be more selective

• Next to production operations, MES vendors are increasingly focusing at maintenance, quality and inventory operations

• Best-of-breed solutions may be needed

Closing Remarks (2)

No. 58

• Technology is not a restricting factor anymore (in nearly all cases)

• People are making the difference!


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