GDS International - Next - Generation - Manufacturing - Summit - Europe - 2


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Keys to improving Manufacturing Efficiency

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GDS International - Next - Generation - Manufacturing - Summit - Europe - 2

  1. 1. 1 keys to improving manufacturing efficiency Eliminate the Barriers to High Efficiency While Improving Customer Satisfaction Executive Summary 2 Introduction: Manufacturing Enterprises Face Rising Challenges 2 Lean Manufacturing as a Key for Driving Efficiency 3 The Solution: A Unified Platform for Transforming Manufacturing 4contents Success Story: Leading Special Steel Solutions Manufacturer 6 Success Story: Leading Corrective Lens Manufacturer 7 Visibility, Synchronization, Control Drives Efficiency: Introducing Apriso’s FlexNet 8 Conclusion: Efficiency and Customer Satisfaction Go Hand-in-Hand 8© Apriso 2011
  2. 2. 2Executive Summary processes that create effectiveness within theTo remain competitive, today’s enterprises are full design-manufacture-distribution cycle—looking for ways to drive efficiencies through- and create a platform for sustainable,out their manufacturing processes. Extending continuous improvement.Lean manufacturing principles and practiceswhile establishing a platform for continuousimprovement is key to improving efficiencies. Introduction:Smart businesses know that tight cycle times Manufacturing Enterprisesand quick time to market with strong product Face Rising Challengesquality helps drive market share and customer Manufacturers in the global landscape havesatisfaction. Unfortunately, a disconnection more competition, more product variables,exists between high-level businesses and more regulations, and more cost pressuresmanufacturing systems, causing product vari- than ever before in history. To stay agile,ability and waste—which will only become enterprises must improve flexibility, visibility,more acute as product complexities increase. and operational performance across their A main focus is to reduce costs, but cycle manufacturing operations. Furthermore,time should never come at the expense of manufacturers must seek ways to reducequality. Creating efficiency calls for directed costs associated with producing and distribut-manufacturing that reduces production vari- ing products. They are competing for marketability in cycle time, enforces best practices, share on a price basis, are trying to be priceand insists on error proofing. Processes must competitive without eroding margins, and arebe imposed and monitored to guarantee launching into new, price-sensitive markets.execution against best practices. In addition, What is more, the bottom line depends onmanagers need a way to synchronize product improving time to market and reducing cyclevolume and configuration with actual manu- time by producing products faster and bringingfacturing capacity, which drives throughput them to market faster. Today’s products areand increases asset utilization while lowering very complex, and they have more optionsinventory costs. and customization. Plus, manufacturing must In this paper, Apriso shows how to achieve be more agile and proactive to change man-enterprise-wide supply chain visibility, manu- agement while scaling production volumesfacturing synchronization, and control over globally. The ultimate victory on the com-efficiency through an integrated solution that petitive landscape is to win the customer’sdirectly addresses manufacturing competence. loyalty. The first step on this path is to boostThis innovative approach bridges the gap customer satisfaction without sacrificingbetween the “silos” of information that en- quality. Efficiency, when implemented cor-cumber legacy systems and point solutions. rectly, drives quality, which contributes toAs a result, global manufacturers can drive the customer’s experience, thereby creating© Apriso 2011
  3. 3. 3opportunities to upsell the next generation waste streamlines operations, eliminates idleof products. inventory, and helps to achieve continuous process improvement—all elements of Lean manufacturing and Six Sigma initiatives. The customer However, all of these processes must work directly benefits when together to build an efficient value chain, manufacturing efficiency a task not easily achieved using traditional also drives quality and “siloed” systems. improves on-time The Disconnection Between Business deliveries. and Manufacturing Systems Efficient manufacturing processes demands real-time visibility and flawless material movement driven by continuous, nonstop communication between warehouse manage-Lean Manufacturing ment systems and production a Key for Driving Within many manufacturers, accurate infor-Efficiency mation is not flowing in real-time and remainsSuccess calls for enterprises to manage their siloed and inaccessible across disparate sys-businesses proactively, instead of the business tems and environments. Most legacy appli-issues managing them. To reach this goal, cations are niche solutions and cannot meetmanufacturers must transform their opera- today’s business requirements; consequently,tions by automating, executing, and managing the certainty exists that they cannot meetthe performance of uniform global business tomorrow’s needs.processes across their value chain. This means A critical disconnection exists between high-end-to-end integration of processes spanning level business systems such as enterprisesupply chain, production, maintenance, distri- resource planning (ERP), product lifecyclebution, quality, and labor operations—regard- management (PLM), and manufacturing-levelless of where these facilities and operations systems. In addition, plant automation andare physically located. The cold truth is that programmable logic controllers (PLCs) aretraditional reactive approaches cannot meet widely varied and disconnected from man-the goal of end-to-end integration, which is ufacturing-level systems. Many plants stillessential for creating efficiency. use legacy applications that do not interface Lean manufacturing is an essential compo- well with business-focused software or othernent of manufacturing efficiency, a principle legacy systems. This “siloed” approach tothat most competitive companies have em- information forms a knowledge gap that leadsbraced for over 30 years. The drive to remove to several challenges. Therefore, businesses© Apriso 2011
  4. 4. 4must confront these issues whenever they proactively address problems and affectattempt to go to market with new products continuous improvement.or build iterations of existing brands.Silos of Data Create The Solution: A UnifiedInefficiency Platform for TransformingThe "siloing" of information creates walls Manufacturingbetween different departments at the micro The optimal Manufacturing Operationslevel, and between plants and geographies Management solution for driving efficiencyat the macro level. Time is an enemy when enables the integration of quality processesdepartments are not coordinating in a timely into the full design-manufacture-distributionmanner, and when information is not consis- cycle. The solution must have the breadth totent. This has a direct impact on the time remove "silos," to support multiple manufac-to build, on resolving a quality issue, on a turing models, and to provide a platform thatstock outage, or on the amount of downtime supports delta change. The solution mustdue to equipment malfunction. Lack of enable rapid global manufacturing deploy-collaborating and coordinating in real-time ments and support strategic planning andcreates inefficiencies that directly affect governance similar to that of other enterprisecycle time, costs, and quality. As a result, business systems.plants must carry higher inventory levels With a unified platform, businesses canand risk missing shipping dates, thus losing create an enterprise-wide approach to manu-time to market and eroding margins. facturing efficiency at every level including Instead, manufactures must find a way quality management, planning, execution,to build a competitive “edge” into their core and containment. This approach providesprocesses. Doing so demands a system for the ability to coordinate activities within andcontinuous improvement capable of identify- across all departments—from productioning and sharing best practices for operational to warehousing to quality to maintenance.excellence. At the same time, this new system Businesses can build products right themust also be flexible enough to manage the first time, removing variability of processes,complexity of producing multiple products while improving:across geographically diverse facilities. Newprocesses and systems must align with Six-Sigma or other Lean initiatives and be repro- pp Manufacturing cycle timeducible across multiple plants, locations, and pp Manufacturing “touch” timegeographies. The new solutions, moreover, pp Overall equipment effectiveness (OEE)must deliver Key Performance Indicators pp Defect/scrap rates(KPIs) in real-time so management can pp First pass yields© Apriso 2011
  5. 5. 5Enable Repeatable Processes Drive Global Deploymentsand Best Practices Global deployments require strategic plan-For the large corporation, the focus involves ning and governance similar to that of otherthe lifecycle of products in the marketplace, enterprise-wide business solutions. Manu-the efficient design-to-volume stages, the facturers must have at their fingertips theengineering change order, iterations of product ability to enforce corporate standard proce-variation, years of field service and upgrades, dures and product specifications with globaland eventual sun-setting strategies. An deployment and configuration management.example is a product line such as medical This ability allows manufacturing engineersequipment. Multiple hardware and software and business analysts to configure processesconfigurations exist, each with specific supply and to distribute those processes as opposedchain and quality requirements. Managing the to relying on manual programming and codingentire product line with each variation is not by IT at all plants. This solution, that affordseasy. To win in a highly competitive market, KPI-level visibility into processes regardlessbusinesses must exceed customer expecta- of location, provides manufacturers the skilltions by offering a higher quality product with to monitor processes across multiple sites.greater competitive life cycle value profiles. It also enables revision control and manage- Solving the problem means implement- ment of the business process lifecycle (BPL)ing and propagating best practices in supply for continuous improvement and support.chain, production management, and qualitymanagement, while driving operational Being Efficient Means Buildingexcellence uniformly through the organization. It Right the First TimeWhen products require iteration, change True manufacturing excellence means build-orders should occur without major disruption ing products right the first time, even againstof the supply chain or the production line. rapidly changing demands. Businesses mustAchieving this goal requires uniform process contain and eliminate waste—in real-time—changes and best practices at each global removing variability of processes. The opti-location. Then, teams at every site can take mal solution drives efficiency by addressingownership for the deployment of all new pro- the following seven forms of waste:cesses, driving consistency and cost efficien-cies throughout the enterprise. The result is pp Inventory – Synchronize material and en-that locations that use cohesive, systematic sure the right product or inventory is at theapproaches and solutions can rigorously apply right place at the right timethe production procedures that optimize pp Wait or Delay – Leverage a BPM-basedproduct quality and traceability—in a measure- platform for manufacturing operationsable, repeatable fashion. that contains a unified data model (UDM),© Apriso 2011
  6. 6. 6 enabling visibility across the plant so man- organization while fulfilling customer orders. agement can proactively address issues Additionally, businesses can realize loweredpp Motion (human) – Use directed manufac- total cost of ownership (TCO) of enterprise turing and material synchronization to help production, of material, and of a quality reduce excess inventory moves and unnec- management IT system by sharing a single essary worker activity, and to direct activ- execution platform. The results are real-time ity to eliminate errors visibility on all operations, including work inpp Transport (goods) – Reduce excess trans- process (WIP), inventory location, and quality portation expense (expediting) by provid- issues. Breaking down the "silos" of informa- ing visibility to actual inventory and part tion using a single platform creates a unique consumption rates across the value chain “single source of truth”—so enterprises canpp Overproduction – Support pull-based focus on true manufacturing efficiency. production and real-time KPI monitoring to A unified platform for transforming manu- lower overproduction, while KPI monitoring facturing is not an unachieveable “we hope ensures equipment activity and manufac- it works” vision. For instance, the following turing activity follow tighter tolerances global manufacturers implemented andpp Defects – Integrate quality directed manu- achieved the true vision of high manufacturing facturing, interlocking traceability, and con- efficiency. tainment management for reduced scrap rates, rework, human error, and equipment- related quality defects Success Story:pp Extra Processing – Any processing that Leading Special Steel does not add value to the product or is the Solutions Manufacturer result of inadequate technology, sensitive The Goal materials, or quality prevention is waste. With companies and divisions spread across Europe, and nearly 40 machines producingImprove Profitability, stainless steel wires at each site, a leadingProtect the Brand manufacturer sought to simplify productionWhen businesses implement a unified and supply chain processes. The ultimate goalmanufacturing operations platform, they can was to increase productivity without affectingimprove global profitability, protect the brand quality. Meeting the vision called for increasingfor unmatched customer satisfaction, and visibility and standardizing operations acrossaccelerate cash flow. This flexibility supports the organization. These objectives reinforcedmanufacturing transformation by shifting the company’s Lean program to reduce waste,from manufacture-to-stock to manufacture- while maintaining the highest levels of cus-to-order. It also supports multiple order types, tomer service. However, legacy processeshelping to create an efficient, more proficient relied on manual tracking with paper© Apriso 2011
  7. 7. 7 types of purchase orders so that individual “The system has greatly machines no longer had their own protocol. simplified the process A major benefit of standardization was that of manufacturing orders, the company effectively developed, deployed since supervisors and and managed best practices to other facilities. technicians no longer Users configured business processes to local parameters to accommodate machine have to track each order differences. personally. Operators like the new system because it’s easy to use, reducing Success Story: time spent on repetitive Leading Corrective Lens Manufacturer and administrative tasks.” The Goal – European special steel solutions A world leader in the design and manufacture manufacturer of corrective lenses explored ways to extend its competitive advantage and improve its manufacturing system’s flexibility. Faced with rapidly changing business needs, the com-documents. With multiple orders fabricated pany’s applications were disjointed, andon a single machine, or with a single order provided no way for management to have vis-fabricated on several machines, traceability ibility into production processes and materialwas cumbersome, time-consuming, and flows or to track and trace them. It was clearinefficient. that the company required a new system to improve agility, provide real-time visibility,The Result and support continuous quality and processThe company chose a platform-based Manu- improvement. Operating from a global perspec-facturing Operations Management solution tive, the system also had to identify and sharethat integrated seamlessly with SAP ERP. The best practices and be flexible to manage thesystem complemented ERP, processing 4,000 complexity of producing 450,000 productsitems of data daily and over 400 manufactur- across 15 orders each week. The software managedinventory through production, noting when The Resultan operator removed material from stock. The company selected a platform-basedBar codes and PLCs eliminated manual data Manufacturing Operations Managementcollection, improving productivity. Most solution to improve agility, visibility, and oper-importantly, the solution standardized various ational performance across manufacturing© Apriso 2011
  8. 8. 8operations. The company managed and configuration and flexibility in managing busi-executed lens production at a plant in Mexico ness processes. As a result, companies canwith globally integrated warehouse and realize their goals of the following:distribution functions. The solution’s applica-tions were operational at twelve corporate pp Global standardization and visibility –locations across the globe, including five They drive process consistency within themanufacturing sites and three distribution enterprise and the supply chain networkcenters. while providing actionable key performance One of the first benefits the company indicators (KPIs) throughout the produc-realized was the power of having real-time tion lifecycle.visibility into operations, which helped to pp Global synchronization – It aligns qualityenhance operational performance and ef- processes with warehouse, maintenance,ficiency. The application spanned operations and other production operations, whileto provide real-time visibility and actionable facilitating material synchronization tointelligence, offering improved performance ensure that the production line builds theand faster decision making. Access to detailed right products at the right place and time.production data helped to advance baseline pp Best practices – They create continuousperformance for higher quality and reduced process improvement through a globalcycle time by 50 percent. solution and a process management infrastructure. pp Collaborative approach – It allows man-Visibility, Synchronization, agers to plan and to implement qualityControl Drives Efficiency: processes that span the entire operationIntroducing Apriso’s FlexNet and product lifecycle, reducing the riskThe path to achieving high manufacturing ef- of releasing poor quality products to market.ficiency is now available. FlexNet from Apriso pp Track and trace for brand protection –eliminates the information disconnection be- They manage the status and the path oftween business systems and manufacturing products from source, make, and distribu-systems, enabling businesses to achieve tion to end-users while providing qualityand sustain high manufacturing efficiency containment of product defects.across operations—regardless of location. TheFlexNet manufacturing operations platformis unique with proven large enterprise deploy- Conclusion: Efficiencyments, with a unified technology platform and Customer Satisfactionthat extends the value of ERP, and with PLM Go Hand-in-Handsystems, while leveraging Business Process In today’s competitive market, driving ef-Management (BPM) technologies for ficiency and continuous improvement deep© Apriso 2011
  9. 9. 9into companies’ manufacturing operations costs, and improved service rates by increas-is critical. Globalization of the supply chain ing the flexibility and coordination withinand operations makes Lean manufactur- functional departments. FlexNet suppliesing a crucial requirement for maintaining precisely what global manufacturers requirecompetitiveness. Enterprises can eliminate to optimize processes within the full design-the disconnection that exists between high- manufacture-distribution cycle. With efficien-level business and manufacturing operations cies built into every process, enterprises havesystems at the plant levels by leveraging the the solid foundation and nimbleness neces-power of a platform-based Manufacturing sary to capture new markets and to driveOperations Management solution. customer loyalty. Built upon a foundation of Management Apriso Corporation is a software companyOperations Management, Apriso’s FlexNet dedicated to helping manufacturers achieveprovides a demand-driven product supply and sustain operational excellence. Aprisonetwork with full operations’ visibility and serves nearly 200 customers in over 40 coun-control across regions, divisions, partners, tries across the Americas, Europe, and Asia.and vendors. Businesses can realize improved Learn more at http:/ / passet utilization, increased agility, reduced© Apriso 2011