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Boosting Success of Global MES Rollouts

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By combining Agile principles with a three-phase methodology, organizations can reduce the complexity and increase the speed of their global manufacturing execution system implementations.

By combining Agile principles with a three-phase methodology, organizations can reduce the complexity and increase the speed of their global manufacturing execution system implementations.

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  • 1. Boosting Success of Global MES Rollouts By combining Agile principles with a three-phase methodology, organizations can reduce the complexity and increase the speed of their global manufacturing execution system implementations. Leading manufacturers are known for embarking upon global programs that optimize technology advancements, in the interest of achieving enter- prise visibility, manufacturing excellence and a competitive edge. Examples include manufac- turing and business process harmonization, IT systems consolidation and standardization across diverse plants. So it’s no surprise that many manufacturers are incubating or executing global manufacturing execution system (MES) programs as part of their manufacturing strategies. MES implementations are challenging enough, but global MES programs involve even more complexities (see Figure 1). Typical MES challenges include selecting a best-fit MES system aligned with the company’s IT vision; choosing the right solution and implementation partner; adopting the best approach for the orga- nization; and assembling a team with the optimal sourcing mix, including internal, external, onsite, near-shore and offshore resources. Additional challenges of global MES include regu- latory compliance, steady-state support/sustain- ability, language, culture and time zone differ- ences. In the absence of a holistic, systematic and proven approach, manufacturers continu- ally review whether they have chosen the correct system and the right partners and question whether they are following the correct approach for solution development and deployment. Key reasons for the failure of an MES project or program include: • Inconsistent leadership involvement and commitment. • Faulty selection of the MES products, imple- mentation partners and overall approach. • Incorrect stakeholder expectations and training for MES. • Misalignment of the MES strategy with the current and future IT landscape. Given this scenario, manufacturers can increase their chances for MES success by using a scien- tific and proven deployment methodology that ensures a uniform and accelerated deployment. A deployment methodology institutionalizes processes, tools, templates and deployment best practices, and it guides teams through all stages — from initial planning and preparation, to product/ partner selection and solution development, deployment and support. This white paper lays out broad guidelines for following a methodol- ogy that maximizes the success of a global MES rollout. • Cognizant 20-20 Insights cognizant 20-20 insights | march 2014
  • 2. 2 Mapping a Methodology At a high level, a global MES implementation methodology includes three phases: plan, assess and collaborate/execute (see Figure 2). The following sections delve more deeply into each of these stages. Phase 1: Planning A meticulous approach to strategic planning is one of the most important ingredients for the success of any program. This is the time when companies identify the current state, scope and business objectives for the MES rollout and map the strategy for achieving these goals. Strategic planning should be conducted under the guidance of the manufacturing leadership team. While planning, manufacturers should define the following, taking into account internal organiza- tional factors (e.g., vision, mission, culture, chal- lenges, IT roadmap and budget constraints), as well as external environmental factors (e.g., tech- nology/market trends, competition, regulatory requirements): • The manufacturing information technology plan: Identify strengths and weaknesses and determine prioritized improvement opportuni- ties, along with their implementation roadmap. • Scope: Define the scope for executing the next phase. For example, the organization needs to decide on whether to focus on a particular business, geography or category of IT systems or a combination of these. • MES assessment projects: Identify the rep- resentative manufacturing sites that are good candidates for conducting MES assessment studies in the next phase. • Investment planning: Allocate resources and budget for the next phase, as well as high-level financial planning to support the implementa- tion roadmap, cognizant 20-20 insights Challenges of Global MES Deployment Ensure uniform deployment at individual sites amid great diversity (process, technology, regulatory, language, etc.). Ensure collaboration and minimize redundant efforts among individual project teams. Mobilize deployment resources globally while capturing knowledge and minimizing costs. Strike the right balance between local customizati and global standardization Select best-fit product, implementation partner and approach. ion n. Challenges Of Global MES Deployment Figure 1 Three-Phase Methodology Release and configuration management Infrastructure and network management Plan Assess Training and change management Steady-state support management Solution deployment Solution design and development MES feasibility assessment Manufacturing operations strategic planning Collaborate and Execute Program/project management Figure 2
  • 3. 3cognizant 20-20 insights Manufacturers should use assessment tools, such as surveys, workshops, competitive analysis and opportunity analysis frameworks, to execute this phase effectively. This planning exercise will result in an MES strategy that considers both internal and external factors, thus ensuring alignment with the organization’s goals, vision and mission. For instance, an organization with the strategic goal of increasing throughput and regulatory compliance may discover that real-time dash- boards of plant production performance would provide a competitive edge. Alternatively, the assessment may reveal that the company’s cost of regulatory compliance is high when compared with industry benchmarks. The data points revealed in this phase will play a crucial role in shaping the MES strategy. Phase 2: Assess, Analyze and Define Once strategic planning is complete and the need for the MES system implementation/upgrade is identified, the manufacturer should conduct an assessment of the MES landscape at all in-scope plants. Such a global assessment can be accom- plished by collecting information on the business, manufacturing operations and technology through surveys, questionnaires, meetings and a review of current documentation. Following this assessment, a more detailed analysis needs to be conducted at chosen plants through on-site visits, interviews, workshops, operations data collection, reports and documen- tation. Data collection should include key perfor- mance area (KPA) and key performance indicator (KPI) trends/targets, as-is architecture, functional mapping (L1 to L4 shop floor layers), business and manufacturing process maps, current pain points and new requirements. By analyzing such data and comparing the findings with industry best practices, manufac- turers can define scope, to-be process maps, enterprise system architecture (L1 to L4 layers), a global MES template and an implementation roadmap. Manufacturers should use site require- ment questionnaires, a requirements consoli- dation framework, and requirements mapping for commercial off-the-shelf (COTS) software to perform these activities. This analysis will give manufacturers a fair idea of the kind of solution they need. This can range from a pure COTS solution, to a customized COTS (hybrid) solution or pure custom solution. Experi- ence shows that a hybrid approach is the most sought-after, as it gives manufacturers a robust data model and proven system architecture, while allowing system customization to suit evolving processes and enable competitive differentia- tors. Armed with this to-be solution information, manufacturers can then assess the available MES solutions through product evaluation procedures, such as a request for information, request for proposal and MES product evaluation framework. Another decision is the selection of local or global implementation partners, which should involve a cost- benefit analysis, ROI calcu- lation and the development of a quantitative/qualitative business case for MES imple- mentation. The business case will help in cost-justification, drafting a feasible approach and benchmarking at a later point in time to take correc- tive measures. The key outputs of this phase can be summarized as: • MES requirements and to-be process maps. • MES implementation roadmap. • MES product and implementation partners. • Business case for MES deployment. • Program management plan. Phase 3: Collaborate and Execute This tactical phase is aptly named because collab- oration and execution are the overarching themes from the very beginning of an MES program. The first step here is to build global teams to execute project plans and activities. These are truly wide- ranging activities, involving disparate stakehold- ers who must collaborate to ensure success. At a fundamental level, this phase leverages Agile methodology concepts, and works in an iterative or incremental fashion on two important fronts: Solution development and site deployment. Each iteration results in the development of new features in the MES solution, version release and subsequent implementation at the relevant man- ufacturing sites. The foremost step in this phase is to build dedicated teams with defined roles and responsibilities (see Figure 3, next page). A hybrid solution is the most sought- after, as it gives manufacturers a robust data model and proven system architecture, while allowing system customization to suit evolving processes and enable competitive differentiators.
  • 4. cognizant 20-20 insights 4 Figure 3 Building the MES Team MES CoE Global MES Deployment Program ERP ERP/Automation Global Program Management Product Vendor Quality Process Compliance S I T E T E A M Training and Change Management Release and Configuration Management Solution Development Site 3 Deployment Team Site 1 Deployment Team Site 2 Deployment Team Site N Deployment Team Governance Communication Collaboration Monitoring & Risk and Issue Resource Knowledge Build Team Continuous Controlling Management Management Management Competencies Improvement CORE TEAMS GLOBAL MES DEPLOYMENT PROGRAM Other teams that play an important role (and may already exist) are the enterprise resource planning (ERP), automation and application support teams. For a multi-year global program involving many plants, manufacturers can also establish an MES center of excellence, compris- ing key SMEs who brainstorm on critical technical challenges, provide thought leadership and transform experience and sticky knowledge into program assets. Some of the important teams and their roles in a global MES rollout include the following: • Program management: This team should own and drive this phase from start to finish by coordinating and synchronizing the efforts of the other teams to achieve the overall program objectives of cost, quality and schedule. Program management should help build the project teams; ensure training; establish processes for governance, reporting and com- munication, knowledge management, collabo- ration, risk and issue management; and define KPA/KPIs and other enablers to ensure that successive MES development and deployment cycles are smooth, quick and effective. The program management team also needs to leverage a global delivery model for various project teams, with a mix of onsite, near-shore and offshore team members. This would contain costs and reduce lead time, as work can happen around the clock in a follow-the-sun model. Lastly, no matter how well the program management team is orchestrating, there will always be room for improvement. Thus, it is very important that the team takes time to review current processes, invite feedback and consistently work for continuous improvement. • Process standardization: This team takes ownership of in-depth process analysis at each plant, identification of common processes and best practices, and drafting of to-be solution functionalities, such as process maps, use cases and transaction rules in a reusable form. Following these activities, the team should discuss the outcomes with the solution devel- opment team to incorporate the findings into the next solution release. Process harmoni- zation and standardization across globally dispersed plants is a major challenge; manufac- turers need a dedicated team of experienced business process consultants to guide them. • Solution development: This team is tasked with building the global MES template, leveraging the identified COTS products. The team works closely with the product vendor, as well as the process standardization team, site deployment teams, and quality and release management teams. Development follows the Agile meth- odology by initiating each iteration with a new set of requirements and best practices to incrementally enhance the COTS product into the desired MES solution for in-scope sites
  • 5. cognizant 20-20 insights 5 Figure 4 Product Vendor Global Program Management Infrastructure and Network Management Phasee I COTS MES Client MES Iteration 1 Iteration 2 Iteration 3 Iteration N Phase IIPhase Phase N MES v1.0ME MES v2.0M MES vN.0MES vN.00MES v3.0M PilotPOOffshoreOnsite Site Deployment Site ERP/ Automation Client Requirements NEW BUILDS Pilot project Install Install Install Install Install Upgrade Upgrade Solution Development Quality/Process Standardization Release Management Site Representation Core/Site Training & Change Management Ne w Requirements BestPractices Ne w Requirements BestPractices Ne w Requirements BestPractices Ne w Requirements BestPractices Taking an Agile Approach to Global MES Development and Deployment (see Figure 4). Such a centrally driven, collab- orative approach also helps reduce the testing and validation effort and increase buy-in of the in-scope sites. It is also important to adhere to industry standards such as S-88/95 to ensure maintainability and compatibility with other interfacing systems, such as ERP, controls and automation systems, product lifecycle management (PLM) and laboratory informa- tion management systems (LIMS). • Training and change management (TCM): In many cases, too little attention is paid to training and change management. Experience shows that the TCM team plays a very signifi- cant role in system deployment and is critical for MES deployments. This is because the end users are shop floor personnel who often struggle to comprehend the big picture and can be reluctant to change. This team’s role is critical to ensuring final acceptance through tools such as stakeholder analysis, process alignment, communication and training. When handled well, training and change management can reduce implementation time, increase final acceptance and boost productivity. The TCM team should be part of the core and site teams and collaborate with these teams on planning, communication, content creation, translation and delivery (see Figure 5, next page). • Site deployment: This team is based at the plants and works as a champion of the MES project. Responsible for all site-related activities, this team should include members with technical, functional, project management and TCM skills, and it should collaborate with the site procurement, infrastructure, ERP, automation, quality and compliance teams to drive MES deployment activities. The site deployment team should work in parallel on various fronts, such as infrastruc- ture, system, documentation and site training, and change management. Infrastructure preparation should include both front-end (peripheral devices) and back-end (server) readiness. System preparation involves fit-gap analysis, validation, localization, configuration, data migration, recipe design and testing. Doc- umentation includes review, update or creation of various documents, such as site require- ments, operating procedures, installation veri- fications and transition approach.
  • 6. cognizant 20-20 insights 6 Transition Activities Go-live Stabilization Period Steady State Performance monitoring; knowledge transition to support team Site Deployment Team Infrastructure Preparation System Preparation System Integration Documentation Training and Change Management  Front-end infrastructure analysis, procurement, testing and formal verification (scales, scanners, etc.).  Back-end infrastructure analysis, procurement, physical and logical build and hand-over.  Fit-gap analysis, system localization, configuration, validation, verification.  Master data migration, recipe authoring and approval.  ERP and automation interface development and connectivity testing.  Data exchange and updates.  Site requirements documentation, installation and testing protocols, configuration and verification documentation.  Review, update and approve. •Stakeholder analysis, role mapping, change communication and feedback surveys. •Training collaterals creation, overview training, role-based training, simulation training and end-user training, etc. Figure 5 Deploying MES at a Manufacturing Site As explained earlier, site training and change management should work in sync with the core TCM team. Figure 5 details MES deployment activities, the transition to production and post-go-live support, and handover to the application support team. • Continuous Improvement: To enable continu- ous improvement, the program management team should collaborate with other relevant teams to build deployment enablers, such as data replication tools, recipe migration/ authoring or update tools, translation tools, templates, estimation frameworks and work packages so that deployment teams operate at peak productivity levels, and deployment cycles are reduced. Following the achievement of a steady state, the manufacturer should also conduct a feedback survey and analysis to ensure expected benefits are realized and cor- rective actions are taken. Figure 6 Meeting Global MES Challenges Deployment Challenges Knowledge Assets MES Center of Excellence Integrated Global Delivery Model Global Program Management Top-down Approach Resolution Through Three-Phase Methodology Ensure uniformity of deployment at individual sites despite diversity. Strike the right balance between customization and standardization. Ensure collaboration and minimize redundant efforts of individual project teams. Mobilize resources globally while containing knowledge and costs.  Deployment institutionalization.  Core/site model for consistency and collaboration.  KPA/KPI-driven deployment management.  Scientific approach through frameworks, tools, templates and checklists.  Holistic approach, ensuring optimal standardization of processes, systems and infrastructure.  Thought leadership and industry perspective  Transformation of knowledge into assets.  Optimal blend of on-site, near-shore and offshore.  Retain, re-deploy and manage resources during and between projects. 1 1 1 2 tioonn 2 3 3 pecttiive 2 3 4 4 4 oree 4
  • 7. cognizant 20-20 insights 7 Quick Take We worked with a Fortune 10 research-based pharmaceutical manufacturer to launch a global strategic program with the following goals: • Bridge the gap between ERP systems and shop floor controls and automation systems. • Transform the manufacturing IT landscape and standardize the diverse application portfolio onto common next-generation technologies. • Leverage knowledge and best practices across different plants and institutionalize them through the new MES system. The company was looking for a global IT partner that could provide the required expertise, knowledge and processes to assess site readiness and design, as well as develop an MES solution, execute a parallel implementation and support sites across the globe following the implemen- tation. Our Engineering and Manufacturing Solutions Practice partnered with the client in this strategic initiative, which involved a global MES rollout for over 70 manufacturing plants around the world. We are providing a broad range of services for solution development, deployment, training and change management, and global program management. Using the three-phase method- ology outlined in this paper, we have reduced deployment cycles where possible by roughly 20%. So far, 15 sites have gone live on the new MES system in 24 months (12 of which are integrated with the company’s ERP system), with a few plants going live in as little as 4.5 months. Our approach has also ensured a seamless transition and high system acceptance, while increasing productivity and sustainability. Fast Path to Global MES Overcoming Challenges; Achieving Benefits The three-phase methodology helps address most of the challenges of a global MES imple- mentation, including the need to ensure deploy- ment uniformity, determine where customization is necessary, enable collaboration and efficiently mobilize global resources (see Figure 6). Once organizations overcome these challenges, they can expect to achieve the following benefits: • Shorter deployment cycles (approximately 30% reduction). • Reduced total cost of ownership (approximate- ly 25% reduction). • Seamless transition, with high acceptance rate and increased productivity. • Improved risk and mitigation planning. About the Author Manoj Kumar is an Associate Director within Cognizant’s Engineering and Manufacturing Solutions (EMS) Practice. He has 15 years of professional experience in the manufacturing and IT industry, with a focus on solution conceptualization/design, requirements management and process modeling for MES, EMI and other shop floor software systems. In the last four years, Manoj has been extensively involved in project and program management of global MES solution development/ deployment. He holds a bachelor’s degree in chemical engineering and an M.B.A. from the Goa Institute of Management, Goa. He can be reached at Manoj.Kumar3 @cognizant.com.
  • 8. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out- sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50 delivery centers worldwide and approximately 171,400 employees as of December 31, 2013, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 Email: inquiry@cognizant.com European Headquarters 1 Kingdom Street Paddington Central London W2 6BD Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 Email: infouk@cognizant.com India Operations Headquarters #5/535, Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 Email: inquiryindia@cognizant.com ­­© Copyright 2014, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. About Cognizant’s Engineering and Manufacturing Solutions Practice Our Engineering and Manufacturing Solutions Practice has institutionalized a wide range of mature processes, tool frameworks, templates and industry best practices by arranging them into a three- phase MES rollout methodology, called PACE. PACE lays out a broad and flexible framework that can be adopted by manufacturers at any stage of MES development/deployment. PACE enablers include: • Plan: Inside-out and outside-in approach, survey questionnaires, competitive and opportunity analysis framework. • Assess: Requirements consolidation framework, product evaluation methodology, site requirements questionnaire, implementation roadmap, MES feature and COTs mapping template. • Collaborate and execute: Repository of templates for the project plan, stakeholder analysis, change impact analysis, communication master, system configuration and data collection template, boot camp, risk-driven testing, KPA/KPI-driven deployment, training plan, go-live tracking template, etc.

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