SYSTEMS INTEGRATION MANUFACTURING OPTIMISATION

www.simotechnology.com

Manufacturing Solutions for the Future Seminar and Exhibition

“Unlock Your Manufacturing Data to Drive

Manufacturing Optimisation and Results”.

Presenter: Pat Desmond, Managing Director, SimoTech

Presentation Topics

• Manufacturing Intelligence Overview

• Business Drivers

• What Data are we looking for?

• Typical Solutions/Vendors

• Developing the Business Case

• Execution Strategies

• Some Challenges

The Case for Change

“If you always do what you have

always done, you will always get

what you have always got”Henry Ford 1863 – 1947

Benjamin Franklin 1706 – 1790

“If you fail to plan, you

are planning to fail!”

Roy Keane Saipan 2002

Speaker Background

�25+ Years in Manufacturing Automation

�Wide range of industries including Life Sciences, Food, Waste

Water, Oil & Gas, Chemicals

�Primary focus on advancing operations by using the latest

technologies

�Primarily working with the end users to realise the results on

the ground

My ‘DATA’ Career Profile

1 MB 8 Inch floppy 128 GB

“I am passionate about using every available piece of data to

maximise processes.

That why I got into the automation business in the first place”

SimoTech Overview

“SimoTech provide Automation and Manufacturing Information Systems

Professional Services and Solutions to Manufacturing Industry”

Particular expertise is in the area of Manufacturing Information Systems for

regulated industries such as Life Sciences and Food & Beverage

Experienced in all levels of hardware and software from field

instrumentation to Manufacturing Execution Systems

SimoTech’s team has worked as End Users, Engineering Consultants, System

Integrators and Project Managers so we are uniquely positioned to

understand the challenges from all aspects

“We provide Global Experience at Local Level”

Manufacturing Intelligence Overview• Manufacturing Intelligence (MI) refers to an important class of information

technology that enables better decision-making and improved business

performance based on the ready availability of real time status and

performance metrics throughout the organization

• MI typically applies to production, planning and asset management

activities

• Typical objectives of MI are to achieve higher levels of production against

assets, reduce the cost of production and, ultimately, improve the bottom

line

• An MI platform aggregates, relates and presents operational and business

data in real time

• It does so in a manner that is intuitive and useful for every individual who

plays a role in delivering business results

• It can be applied initially to an individual site, and evolved to include all

sites, divisions, regions and the overall enterprise.

Business vs Manufacturing Intelligence

Objectives Business Intelligence Manufacturing

Intelligence

Timeframe Historical Data

(Months, Quarters,

Years)

Real-Time Data

(Min, Hrs, Days)

Areas of Interest Financials, CRM,

Supply Chain

Manufacturing,

Engineering,

Quality,

People Corporate Corporate, Local

Focus Strategic Tactical

Cost Impact on

Organisation

Bottom Line

> 10 % of turnover > 1 % of turnover

Corporate Business Drivers � Ensure consistent quality and performance across global operations

� Balance manufacturing with demand to optimize material usage and

asset utilization

� Improve and meet regulatory compliance

� Implement more flexible and agile manufacturing operations to

respond to rapidly changing market conditions

� Improve response to events that occur on the plant floor

� Meet demanding requirements and metrics for on-time delivery

through reduced repair time and increased OEE

� Reduce the cost of design, deployment, and support of

manufacturing and IT systems at global manufacturing plants

Industry Metrics

� Successful new product introductions – measured as the average share of NPI’s that hit

quality, time and volume targets

� Overall Equipment Effectiveness (OEE) – composite metric accounting for availability,

performance and product quality

� On Time and Complete Shipments – products delivered on time and complete as

compared to original commitment

� Operating Margin – a ratio of the profitability calculated as net income divided by

revenues or net profits divided by sales

The Challenge facing Manufacturing

I know the

solution is here

somewhere !

Process

Historian

MES

Machine

Data

Automation

Systems

Document

Mgmt

Training

RecordsLIMS

CAPA

Quality

Systems

Energy

Mgmt

Maintenance

Mgmt

Engineering

Systems

Inventory

Mgmt

ERPProduction

Planning

Production

Systems

The Challenge facing Manufacturing

Process

Historian

MES

Machine

Data

Automation

Systems

Document

Mgmt

Training

RecordsLIMS

CAPA

Quality

Systems

Energy

Mgnt

Maintenance

Mgmt

Engineering

Systems

Inventory

Mgmt

ERPProduction

Planning

Production

Systems

I know the

solution is here

somewhere !

Ab

ilit

y o

f O

rga

nis

ati

on

to

re

spo

nd

to

ch

an

ge

BUSINESSRULES

Perform To

Demand

CORPORATEEXPECTATIONSSHAREHOLDER VALUE

ORDERS SPECIFICATIONS

PerformanceTo schedule

Overall processperformance metrics

Operating data transformed into assetperformance KPIs

Large volumes of extremely detailed production data from

multiple back-end data sources

INSTRUMENT

DEVICE I/OTAGS

EQUIPMENT & ASSET

PRODUCTION MODELS RECIPES/BOMS & ROUTES

MATERIAL & PRODUCT FLOWS

Correlate of work process data,equipment data and product data

Incr

ea

sin

g S

tra

teg

ic V

alu

e

to t

he

En

terp

rise

Sensors, Actuators, Motors

€€€Quarters

Months

Days

Weeks

Hours

Hours

Min

Sec

Manufacturing Intelligence Foundation

• What if everyone in your organization had an up to the minute view of

performance against individual and group objectives?

• What if everyone was presented with all of the information they need to

make good day-to-day decisions that will drive the individual and the

organization to higher levels of achievement

• What if you took the learning of the ‘Old Timers’ and Subject Matter

Experts and made it freely available to all

• What if you empowered employees, delivering the Right information, to

the Right Individual at the Right Time”

Faster Decision Making, More Informed Decision Making, More

Accurate Decisions, Less Reliance on Scare Senior Resources,

More Satisfied Workforce, Less Risk

Leverage the Power of People

Supply Chain Connectivity via ERP

ConsumerGoods In

DistributionGoods In Goods Out

RetailerGoods In Goods Out

PackagingGoods In Goods Out

FinishingGoods In Goods Out

Bulk ProductionGoods In Goods Out

R& D /Pilot ScaleGoods In Goods Out

ConsumerGoods In

DistributionGoods In Goods Out

RetailerGoods In Goods Out

PackagingGoods In Goods Out

FinishingGoods In Goods Out

Bulk ProductionGoods In Goods Out

R& D /Pilot ScaleGoods In Goods Out

ERP ERP ERP ERPBusiness

Unit 1Business

Unit 2

Manufacturing Chain Connectivity

Getting rid of the information silos between plants and between business

units

Packaging

Finishing

Bulk Production

R& D /Pilot Scale

Packaging

Finishing

Bulk Production

R& D /Pilot Scale

Packaging

Finishing

Bulk Production

R& D /Pilot Scale

Business

Unit 1

Business

Unit 2

Business

Unit 3Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Production Train Connectivity

Getting rid of the information silos within plants

Raw Materials

Dispensed to

Manufacturing

Unit Operation 1

Unit Operation 2

Unit Operation 3

Finished Goods Return

to Warehouse

Raw Materials

Dispensed to

Manufacturing

Unit Operation 1

Unit Operation 2

Unit Operation 3

Finished Goods Return

to Warehouse

Raw Materials

Dispensed to

Manufacturing

Unit Operation 1

Unit Operation 2

Unit Operation 3

Finished Goods Return

to Warehouse

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Data

Reference Plant IS ArchitectureEnterprise

Zone

DMZ

ManufacturingZone

Enterprise Network

E-Mail, Intranet, etc. Site Business Planning and Logistics Network

ApplicationServer

EngineeringWorkstation

DomainController Site Manufacturing

Operations and Control

MES

SCADA Client Operator

Interface

OEM Client Engineering

Workstation

OperatorInterface

AreaSupervisory

Control

Basic ControlBatch

Control

Sensors

DiscreteControl

DriveControl

ContinuousProcessControl

SafetyControl

ActuatorsDrives Robots Process

Firewall

Firewall

WebE-

Mail

TerminalServices

PatchManagement

ApplicationMirror

Web ServicesOperations

ApplicationServer

AVServer

Cell/AreaZone

Level 0

Level 1

Level 2

Level 3

Level 4

Level 5

Typical Software Solutions Providers

� Werum PAS-X

� Rockwell FT Production

Suite

� Camstar Entreprise Platform

� Siemens SIMATIC IT

� Wonderware Archestra

� Siemens HQX

� SAP Mii

� Rockwell FT Vantage Point

� Informetrics InfoBatch

� GE Proficy RtOi

Operational

Intelligence

Solutions

Manufacturing

Execution

Systems

Do you need an Execution System, and Information system, or both?

Implementation Strategy

Take it one step at a time, avoid the big bang

Prove The Theories Before Jumping In

• Build a team that is passionate about the opportunities

(Visionaries and Salesmen)

• Start with a Pilot, take a vertical slice of the plant or

organisation

• Involve Stakeholders from all disciplines

• Encourage participation from global locations

• Secure involvement of technology suppliers

• Don’t assume the ‘market leader’ has the best solutions

(technology is changing everyday)

• Finally develop your detailed requirements

Plant Type 3 (Core

+ Site Specific

Customisations)

Plant Type N (Core

+ Site Specific

Customisations)

Plant Type 2 (Core

+ Site Specific

Customisations)

Plant Type 1 (Core

+ Site Specific

Customisations)

Roll-Out Strategy

Core Solution

(Common to all

plants

Plant Type 1 (Core

+ Site Specific

Customisations)

Plant Type N (Core

+ Site Specific

Customisations)

Plant Type 2 (Core

+ Site Specific

Customisations)

Plant Type 3 (Core

+ Site Specific

Customisations)

Feed from the core and feed back to the core.

Core changes should have a solid governance process

Formulating the Business Case

• Develop a Project Charter

• Identify Stakeholders

• Operations Project NOT an IS Project

• Identify the Success Criteria

• Establish the tangible and non tangible benefits

• Tie the project goals and improvements back to the

business strategy

Typical ROI Strategies

ROI Must be Tangible and Measurable

Cost of Labour � Avoid or reduce head count,

� Use less qualified resources, less training

� Divert experienced resource to higher value tasks,

� Share expertise among plants,

� Encourage experience people to stay longer and avoid re-training

Cost of Capital� Avoid buying additional equipment

� Get the existing equipment to run more efficiently

� Use under resourced equipment in the network

Cost of Lost Opportunities� Reduce time to market on new products,

� Reduce downtime and supply more of the market

� Reduce manufacture to shipment time

Typical ROI Strategies

Cost of Reputation� Reduce product recalls,

� Increase quality

� Reduce consumer price

Cost of Raw Materials� Use less raw materials,

� Ensure the raw materials we are using meet quality requirements

Cost of Overheads� Reduce energy requirements

� Reduce management supervision

� Reduce transportation and storage

Challenges (The Obvious Ones)

• IT Infrastructure (speed, redundancy, storage capacity,

resilience, connectivity, security)

• Data Quality and Context (Rubbish In, Rubbish Out)

• Data Validation (is the information going to be used for

regulated product release or investigations)

• Business Re-Engineering and Re-Training

• Fear Factor (Is Big Brother watching, do people want to be

held accountable)

• Availability of Key Resources during project execution (Todays

production always has priority)

• Can you really measure ROI (sure would we not would have got

those savings anyway

• Over Expectation (this is not YouTube or Google, it does not

contain all the answers!!!)

• Scope Creep

• Industry Expertise (is the experience out there?)

• The Known Unknowns

Challenges (The Obvious Ones)

Thank You for Your Attention

Pat Desmond

info@simotechnology.com

+353 (0)21-601 0066