Your SlideShare is downloading. ×
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply



Published on

1 Comment
  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. PI: Platform for ERP & SCM Ron Kolz ERP Industry Manager
  • 2. Agenda
    • ERP, SCM and E-Business Challenges for Manufacturing
    • Need for Real-Time Plant Data
    • Recommendations
    • Summary
    • Questions
  • 3. ERP Challenges Gartner Group, 1998 "Manufacturing businesses that make investments in ERP-directed manufacturing applications that fail to provide for accurate real-time information from the process will achieve at least 50% lower ROI on those investments..."
  • 4. E-Business Challenges Goldman Sachs, Nov. 12, 1999 “ The real-time feature of B2B fosters constant communication between buyers and suppliers, revealing the dynamics of supply and demand in the marketplace…for determining price as well as for managing inventory . The ability to satisfy real-time needs will drive B2B .”
  • 5. Requirement: Plant Data Order Status? Inventory? Equipment Availability? Quality?
  • 6. ERP Needs Plant Data
    • Initial ERP focus: Financials
      • Now want plant/ERP integration
    • Plant events impact business
      • Real-time inventory (else more $$)
        • ATP
      • Asset Efficiency - operate to capacity
        • Timely, condition-based maintenance
      • Cycle Time - reduce order to delivery
  • 7. E-Business Needs Plant Data
    • Integrating suppliers & customers
      • Easy to take orders
        • Harder: Send to plant, get feedback
      • Greater demands on manufacturing
        • Make faster, less inventory, MTO
    • Notify Business of problems
      • React to unplanned plant events
        • Execution to plan expected (consistent quality, costs, and schedule)
  • 8. Supply Chain Impact on Plant
    • FROM
      • Safety stocks and buffer inventory
      • Focus on plant throughput, efficiency
      • Disconnected from customers
      • Disruptions dealt with in supply chain (plant made what it made)
    • TO
      • Increased customer service with reduced global inventory
      • Plant execution coordinated with enterprise plan
      • ATP, Make to stock
      • Reduce mfg. variability
  • 9. Supply Chain Needs Plant Data
    • Plant: Weakest link in order fulfillment
      • But, highest value-add happens there
        • Plant performance makes or breaks business
        • Raw materials product: low cost, fast
      • No access to data to optimize profits
        • Raw material prices, product demand
    • Need accurate information
      • Else, more inventory at both ends of supply chain (i.e., high $$)
  • 10. Right Product at Right Time
  • 11. Business Linked to Production Real-time plant systems enable the supply chain to respond to the market
  • 12. Plant/Business Integration
    • It’s clear integration important, but...
      • Plants and ERP very different
        • Real-time vs. transactional
      • IT folks don’t understand plants
        • Translate ERP data to plant variables
      • Plant systems fragmented
      • Many ways to connect plant with ERP
  • 13. Data Requirements
    • Plant
      • Real-time & historical data at high resolution (1 second)
        • Zoom to problem areas for analysis
    • Business (ERP, SCM, etc)
      • Summarized data by major event
        • Reconciled data, calculations
        • One set of data for plant and business
  • 14. Transforming Plant Data
    • Calculations
      • Business doesn’t want raw data
        • Example: material produced in batch
      • Manual correction & audit trail
    • Interface complicated devices
      • Plants have significant investments: DCS, PLC, LIMS, SCADA
        • Data volume, various protocols
        • Overcome geography & culture
  • 15. Meeting the Needs
    • E-Business, ERP, SCM
      • All about speed and increased use of information
    • Meeting plant data requirements
      • Need flexible product
        • Reliably collect all plant data
        • Don’t assume usage requirements
        • Tools to access information: PI-API, PI-Activeview, ODBC, RDBMS, RLINK, UDA, Sigmafine, etc
  • 16. Plant/ERP Architecture
    • What to make (BOM)?
    • How to make (Recipe)?
    • When (Schedule)?
    • Where (Plant)?
  • 17. PI-ProcessBook for Integration
    • ERP lacks analysis
      • ERP: order costs, plan vs. actual material usage
        • Why one order cost more, took longer?
      • Ex: Plant unable to produce material
        • Determine another plant's ability to deliver efficiency, quality, etc, based on historical production info correlated to ERP quality
      • Use PI Batch tools
        • ERP orders are pointers into PI archive
  • 18. PI-ProcessBook for Integration
    • Portability across company
      • Consistent interface for all plants
        • Aggregate data in PI for business
      • Control system independence
        • Manual or automatic process technology
      • Easy to use
        • At Polimeri, ProcessBook is only interface to R/3 at plant
  • 19.  
  • 20. R/3 - Plant Maintenance
    • SAP R/3 PM
      • Track cost of maintenance
      • HR, spare inventory, schedule
    • OSI PI and RLINK
      • Improve plant performance based on process conditions
      • Alarms (temp, vibration, etc), runtime
      • Launch into SAP from PI-ProcessBook
  • 21. R/3 - Quality Management
    • SAP R/3 QM
      • Quality of goods receipt
      • Quality of goods shipped, C of A
      • Company test requirements
    • OSI PI and RLINK
      • Results of quality tests on manufactured products
      • Integrates quality and process data for plant analysis (viscosity vs. reactor upset)
  • 22. PI in R/3 Process Cockpit PI-ActiveView
  • 23. Polimeri Europa
    • Make Polyethylene
    • Problem: Accurate R/3 info
      • Process & finished product inventory
        • Duplicated manual data entry
    • Solution: OSI PI & RLINK
      • Production planning, order tracking
      • Correlate R/3 orders to plant batches & campaigns
  • 24. Recommendations
    • Partners that understand plants
      • Complex infrastructure, data quality, etc
    • Choose your battles
      • Define business objectives first
        • Small victories w/ strategic vision
    • Use flexible infrastructure
      • Some DCS, LIMS vendors assume all plants same
      • Product vs. project
  • 25. Recommendations
    • Empower everyone involved
      • Understand how their actions impact business
      • Each phase of manufacturing process affects product cost & profit
        • Plant information required to analyze
        • Integrate various systems
      • Access to same information
        • Any format user wants, easy to use
  • 26. Summary
    • ERP, SCM & E-Business need real-time plant data
      • Must collect data
      • Validate the data
      • Aggregate into Business context
    • Companies need analysis tools
      • Production vs. quality, etc
      • Easy to use
  • 27. Questions? Thank You