erp.ppt

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erp.ppt

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

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