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Creating Value Through     Collaboration   Dick Hill   VP Manufacturing Advisory Services   ARC Advisory Group   crhill@AR...
Wise Men Once Said… “It is probably not love that makes the world go around but rather those mutually    around, supportiv...
Concept: The Plant as a Node in a ValueNetwork (CMM) Collaborative Manufacturing Management considers the relationship bet...
Today’s Operating Challenges                         Business           Enterprise Domain                                 ...
Business Objectives – Creating Value                  Value to                 ShareholderHealth, Safety                  ...
Levers to Meet Objectives  Technology                Process                  People                                      ...
Alignment of Objectives and Levers                  Shareholder                     ValueTechnology                       ...
Collaboration - in the Value Chain Axis             Materials Mgt   Fulfillment Suppliers                                 ...
Feedstock and Raw Material Suppliers Topic                   From                    To Inventory               You Order ...
Customer Relationship Topic                   From                    To Inventory               They Order it           Y...
Collaboration – on the Lifecycle Axis                        Services               RD&E                                  ...
Plant Lifecycle  Topic                  From                 To  Design Documentation As-Built at Startup    Living Databa...
Product Lifecycle Topic                 From                 To Design Processes      Sequential Product   Concurrent Prod...
Collaboration – on Plant-Business Axis                 Business                 Operations                 Production     ...
Finding the Hidden Capacity  Topic                 From                        To  Production Variance   Conservative Targ...
Proactive versus Reactive EnergyManagement Topic                  From                  To Energy Consumption     Consumpt...
Collaboration: Users and Suppliers                  Shareholder                                    Shareholder            ...
“I not only use all the brains that I           have, but all that I can borrow.”                ,                        ...
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Creating value through collaboration d hill arc orlando 2008

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Transcript of "Creating value through collaboration d hill arc orlando 2008"

  1. 1. Creating Value Through Collaboration Dick Hill VP Manufacturing Advisory Services ARC Advisory Group crhill@ARCweb.com
  2. 2. Wise Men Once Said… “It is probably not love that makes the world go around but rather those mutually around, supportive alliances through which partners recognize their dependence on each other for the th achievement of shared and private goals.” hi t f h d d i t l ” Fred Allen “It is not necessary to change. Survival is not mandatory.”y W. Edwards Deming 2 © ARC Advisory Group
  3. 3. Concept: The Plant as a Node in a ValueNetwork (CMM) Collaborative Manufacturing Management considers the relationship between all the nodes on the Value Network. Network CMM Nodes: Process Plant Customers A process plant, for example, mustcollaborate with upstream and downstream operations to f lfill the mission. fulfill h i i 3 © ARC Advisory Group
  4. 4. Today’s Operating Challenges Business Enterprise Domain Services Materials Mgt Process Plant Operations p Fulfillment Customers Value Chain DomainSuppliers RD&E Collaboration is essential to meet business objectives Lifecycle Domain Production 4 © ARC Advisory Group
  5. 5. Business Objectives – Creating Value Value to ShareholderHealth, Safety Customer Environment Satisfaction 5 © ARC Advisory Group
  6. 6. Levers to Meet Objectives Technology Process People 6 © ARC Advisory Group
  7. 7. Alignment of Objectives and Levers Shareholder ValueTechnology ProcessHealth, Safety Customer&E i Environment t Satisfaction S ti f ti People Information and Collaboration Make it Happen 7 © ARC Advisory Group
  8. 8. Collaboration - in the Value Chain Axis Materials Mgt Fulfillment Suppliers Customers 8 © ARC Advisory Group
  9. 9. Feedstock and Raw Material Suppliers Topic From To Inventory You Order it They Anticipate your need Service Process for Resolving Eliminate Cause For Disputes Dispute Quality Inspect and Verify Trusted Operations Vi ibili O i Visibility Restricted R i d Collaborative C ll b i Work Processes Separate Synchronized Relationship Supplier - Customer Business Partner Objective: Zero Feedstock Surprises 9 © ARC Advisory Group
  10. 10. Customer Relationship Topic From To Inventory They Order it You Anticipate their need & manage it Service Process for Resolving Eliminate Cause For Disputes Di t Dispute Di t Quality Inspect and Verify You Guarantee Operations Visibility Restricted Collaborative Work Processes Separate Synchronized Relationship p Supplier - Customer pp Business Partner Objective: Zero Customer Disappointments 10 © ARC Advisory Group
  11. 11. Collaboration – on the Lifecycle Axis Services RD&E 11 © ARC Advisory Group
  12. 12. Plant Lifecycle Topic From To Design Documentation As-Built at Startup Living Database for Operations Design, Design Operate and None to Limited Standards based Standards-based Maintain Integration Custom interfaces Interoperability Plant Asset Maintenance’s Active Management Management g Responsibility for p y by Both Operations y p Availability and Maintenance Design Objectives Designed for Low Designed for Cost Startup Optimum Operation Benefits Work Processes Separate Synchronized - DOM Objective: Maximum Asset Performance 12 © ARC Advisory Group
  13. 13. Product Lifecycle Topic From To Design Processes Sequential Product Concurrent Product and Process Design and Process Design Design - Build Design validation Virtual validation Integration during startup before startup Design, Build and None to Limited Standards-based Service Integration Custom interfaces Interoperability Design Objectives Time to Production Optimize Profit of Low Cost to Make Product Work P W k Processes Separate S t Synchronized – S h i d Digital Factory Objective: Maximum Product Performance 13 © ARC Advisory Group
  14. 14. Collaboration – on Plant-Business Axis Business Operations Production 14 © ARC Advisory Group
  15. 15. Finding the Hidden Capacity Topic From To Production Variance Conservative Targets Push Limits Which Machine is Experience Data-driven the th problem? bl ? Evidence - OEE E id Unscheduled Reactionary Predicting Downtime Instrumentation I i Manual maintenance M l i Program guided P id d Behavior maintenance Availability vs Maintenance: Availability Collaboration & Utilization Operations: U ili O i Utilization i Work Processes Objective: O ti i Obj ti Optimize Production P d ti 15 © ARC Advisory Group
  16. 16. Proactive versus Reactive EnergyManagement Topic From To Energy Consumption Consumption History Forecast Consumption Peak Loads Monitor Predict Energy Balance Daily Summary Real Time Balance Operational Options Try it and see ‘What-if’ simulation Co-Generation C G ti Uncontrolled P U t ll d Power Tie-Line C t l Ti Li Control Purchases Production vs energy Scheduled Optimize schedule independent and energy Objective: Meet Energy Needs at Lowest Cost 16 © ARC Advisory Group
  17. 17. Collaboration: Users and Suppliers Shareholder Shareholder Value ValueTechnology Process P Technology ProcessHealth, Safety Customer Health, Safety Customer& Environment Satisfaction & Environment Satisfaction People People Supplier li Customer Projects, Products, Operations… Let s Let’s Discuss What Works and What are the Results 17 © ARC Advisory Group
  18. 18. “I not only use all the brains that I have, but all that I can borrow.” , Woodrow Wilson Thank You.For more information, contact dhill@arcweb.com or visit our web pages at www.arcweb.com www arcweb com 18 © ARC Advisory Group
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