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erp.ppt

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  • 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
    RLINK
  • 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

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