Creating Value Through
Collaboration
Dick Hill
VP Manufacturing Advisory Services
ARC Advisory Group
crhill@ARCweb.com
2
© ARC Advisory Group
Wise Men Once Said…
 “It is probably not love that makes the world
go around, but rather those mut...
3
© ARC Advisory Group
Concept: The Plant as a Node in a Value
Network (CMM)
Customers
Process
Plant
CMM Nodes:
A process ...
4
© ARC Advisory Group
Today’s Operating Challenges
Business
Customers
Production
Suppliers
Lifecycle Domain
Value Chain D...
5
© ARC Advisory Group
Business Objectives – Creating Value
Value to
Shareholder
Customer
Satisfaction
Health, Safety
Envi...
6
© ARC Advisory Group
Levers to Meet Objectives
People
ProcessTechnology
7
© ARC Advisory Group
Alignment of Objectives and Levers
Shareholder
Value
Customer
Satisfaction
Health, Safety
& Environ...
8
© ARC Advisory Group
Collaboration - in the Value Chain Axis
Materials Mgt Fulfillment
CustomersSuppliers
9
© ARC Advisory Group
Feedstock and Raw Material Suppliers
Topic From To
Inventory You Order it They Anticipate your
need...
10
© ARC Advisory Group
Customer Relationship
Topic From To
Inventory They Order it You Anticipate their
need & manage it
...
11
© ARC Advisory Group
Collaboration – on the Lifecycle Axis
RD&E
Services
12
© ARC Advisory Group
Plant Lifecycle
Topic From To
Design Documentation As-Built at Startup Living Database for
Operati...
13
© ARC Advisory Group
Product Lifecycle
Topic From To
Design Processes Sequential Product
and Process Design
Concurrent ...
14
© ARC Advisory Group
Collaboration – on Plant-Business Axis
Operations
Business
Production
15
© ARC Advisory Group
Finding the Hidden Capacity
Topic From To
Production Variance Conservative Targets Push Limits
Whi...
16
© ARC Advisory Group
Proactive versus Reactive Energy
Management
Topic From To
Energy Consumption Consumption History F...
17
© ARC Advisory Group
Collaboration: Users and Suppliers
Supplier Customer
Projects, Products, Operations…
Let’s Discuss...
18
© ARC Advisory Group
Thank You.
For more information, contact dhill@arcweb.com or visit
our web pages at
www.arcweb.com...
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ARC's Dick Hill's Creating Value Through Collaboration Presentation at ARC's 2008 Industry Forum

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ARC's Dick Hill's Creating Value Through Collaboration Presentation at ARC's 2008 Industry Forum in Orlando, FL

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ARC's Dick Hill's Creating Value Through Collaboration Presentation at ARC's 2008 Industry Forum

  1. 1. Creating Value Through Collaboration Dick Hill VP Manufacturing Advisory Services ARC Advisory Group crhill@ARCweb.com
  2. 2. 2 © ARC Advisory Group Wise Men Once Said…  “It is probably not love that makes the world go around, but rather those mutually supportive alliances through which partners recognize their dependence on each other for the achievement of shared and private goals.” Fred Allen  “It is not necessary to change. Survival is not mandatory.” W. Edwards Deming
  3. 3. 3 © ARC Advisory Group Concept: The Plant as a Node in a Value Network (CMM) Customers Process Plant CMM Nodes: A process plant, for example, must collaborate with upstream and downstream operations to fulfill the mission. Collaborative Manufacturing Management considers the relationship between all the nodes on the Value Network.
  4. 4. 4 © ARC Advisory Group Today’s Operating Challenges Business Customers Production Suppliers Lifecycle Domain Value Chain Domain Enterprise Domain Fulfillment Materials Mgt RD&E Services Process Plant Operations Collaboration is essential to meet business objectives
  5. 5. 5 © ARC Advisory Group Business Objectives – Creating Value Value to Shareholder Customer Satisfaction Health, Safety Environment
  6. 6. 6 © ARC Advisory Group Levers to Meet Objectives People ProcessTechnology
  7. 7. 7 © ARC Advisory Group Alignment of Objectives and Levers Shareholder Value Customer Satisfaction Health, Safety & Environment People ProcessTechnology Information and Collaboration Make it Happen
  8. 8. 8 © ARC Advisory Group Collaboration - in the Value Chain Axis Materials Mgt Fulfillment CustomersSuppliers
  9. 9. 9 © ARC Advisory Group Feedstock and Raw Material Suppliers Topic From To Inventory You Order it They Anticipate your need Service Process for Resolving Disputes Eliminate Cause For Dispute Quality Inspect and Verify Trusted Operations Visibility Restricted Collaborative Work Processes Separate Synchronized Relationship Supplier - Customer Business Partner Objective: Zero Feedstock Surprises
  10. 10. 10 © ARC Advisory Group Customer Relationship Topic From To Inventory They Order it You Anticipate their need & manage it Service Process for Resolving Disputes Eliminate Cause For Dispute Quality Inspect and Verify You Guarantee Operations Visibility Restricted Collaborative Work Processes Separate Synchronized Relationship Supplier - Customer Business Partner Objective: Zero Customer Disappointments
  11. 11. 11 © ARC Advisory Group Collaboration – on the Lifecycle Axis RD&E Services
  12. 12. 12 © ARC Advisory Group Plant Lifecycle Topic From To Design Documentation As-Built at Startup Living Database for Operations Design, Operate and Maintain Integration None to Limited Custom interfaces Standards-based Interoperability Plant Asset Management Maintenance’s Responsibility for Availability Active Management by Both Operations and Maintenance Design Objectives Designed for Low Cost Startup Designed for Optimum Operation Benefits Work Processes Separate Synchronized - DOM Objective: Maximum Asset Performance
  13. 13. 13 © ARC Advisory Group Product Lifecycle Topic From To Design Processes Sequential Product and Process Design Concurrent Product and Process Design Design - Build Integration Design validation during startup Virtual validation before startup Design, Build and Service Integration None to Limited Custom interfaces Standards-based Interoperability Design Objectives Time to Production Low Cost to Make Optimize Profit of Product Work Processes Separate Synchronized – Digital Factory Objective: Maximum Product Performance
  14. 14. 14 © ARC Advisory Group Collaboration – on Plant-Business Axis Operations Business Production
  15. 15. 15 © ARC Advisory Group Finding the Hidden Capacity Topic From To Production Variance Conservative Targets Push Limits Which Machine is the problem? Experience Data-driven Evidence - OEE Unscheduled Downtime Reactionary Predicting Instrumentation Behavior Manual maintenance Program guided maintenance Availability vs Utilization Maintenance: Availability Operations: Utilization Collaboration & Work Processes Objective: Optimize Production
  16. 16. 16 © ARC Advisory Group Proactive versus Reactive Energy Management Topic From To Energy Consumption Consumption History Forecast Consumption Peak Loads Monitor Predict Energy Balance Daily Summary Real Time Balance Operational Options Try it and see ‘What-if’ simulation Co-Generation Uncontrolled Power Purchases Tie-Line Control Production vs energy Scheduled independent Optimize schedule and energy Objective: Meet Energy Needs at Lowest Cost
  17. 17. 17 © ARC Advisory Group Collaboration: Users and Suppliers Supplier Customer Projects, Products, Operations… Let’s Discuss What Works and What are the Results Shareholder Value Customer Satisfaction Health, Safety & Environment People ProcessTechnology Shareholder Value Customer Satisfaction Health, Safety & Environment People ProcessTechnology
  18. 18. 18 © ARC Advisory Group Thank You. For more information, contact dhill@arcweb.com or visit our web pages at www.arcweb.com “I not only use all the brains that I have, but all that I can borrow.” Woodrow Wilson

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