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Operational ExcellenceThe Digital WayMilesh GogadGE Intelligent Platformsmilesh.gogad@ge.comCII Conference onDigital ManufacturingChennai, IndiaJanuary 25, 2012

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Contents• Industry Challenges• Operational Excellence• Tactical Approach• About GE Intelligent Platforms 2 Operational Excellence – The Digital Way

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“We monitor OEE (OverallEquipment Effectiveness) manuallyon approx. 400 machines throughspreadsheets. It becomesextremely difficult to understandthe big picture though, not tomention it is cumbersome enoughto draw any meaningful trends ordrill down into the individualfactors (Availability, Quality andEfficiency) of OEE from 400spreadsheets.”Manufacturing HeadMajor Auto Component OEM, Tamil Nadu 3 Operational Excellence – The Digital Way

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“I need to maintain records ofmy process parameters on acontinuous basis forcompliance purpose. Hence, mystaff prints records from 20PLCs through 11 dot matrixprinters every hour, that I signon. The result - precious timewasted in non-value-addedactivity and a room full offiles!”CEO, Mid-Sized Pharma CompanyGujarat 4 Operational Excellence – The Digital Way

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“We monitor downtime on ourmachines, record their causes,and classify them in industrystandard groups – say materialunavailability, power failure, toolbreakage, etc. However, I am notsure of the integrity of this data.How do I base my decisions on thisdata?”Maintenance HeadMid-Sized Auto Component OEMKarnataka 5 Operational Excellence – The Digital Way

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“We initiated a corporate lean manufacturing program across all ourplants in India. We piloted it through manual processes and systems atone plant currently, but have concerns over scaling it up to multipleplants. More importantly, how do we build an ‘operational excellence’culture in our staff, that sustains itself in the long run… way beyond theprogram?”- VP-Manufacturing, Large Pharma Company, Gujarat 6 Operational Excellence – The Digital Way

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“A wrong ingredient used at anincorrect stage in rubber processingresults in a lot of scrap, which is ahuge financial loss given the price ofrubber. Hence I need an errorproofing solution that not justdetects, reports and trends suchoccurrences; but also acts swiftlyand prevents such things fromhappening directly in the process.”Head-ITMajor Rubber Products ManufacturerTamil Nadu 7 Operational Excellence – The Digital Way

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“My steel products cannot have any engraved identification of mycompany, hence there is no way that we can identify if and wherethere was an error in its manufacturing when a defect is found later inthe market. Instead if the entire genealogy of the product was known,we could have easily identified and proven if there was an error – sayduring the welding or forming process and the process parameters atthat instance in that particular batch recorded somewhere.” Technical Leader, Major Steel Products Manufacturer, Tamil Nadu 8 Operational Excellence – The Digital Way

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“I have a wide variety in my exportvolumes. The same formulationcould have different tablet dosage,different language instructionsheets, different packaging anddifferent norms to comply to, whenexporting to different countries. Insome cases, my packaging machinechange-over and set-up time couldstretch to a day!”Head-Operational ExcellenceMajor Pharma Company, Gujarat 9 Operational Excellence – The Digital Way

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Many Questions One Answer Key Enabler 100011100101010010 001010010001010101 011101001010101010 101001101010101010 Operational Technology Excellence 0010001001001010 0110111100101010 1101010101010100 1101001110100101 10 Operational Excellence – The Digital Way

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Why the shift? 11 Operational Excellence – The Digital Way

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Business Management Perspective Improve market responsiveness Reliable and Predictable Manufacturing Base. Adaptive Manufacturing. 12 Operational Excellence – The Digital Way

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Business Management Perspective Integrate Production and Supply Chain Rely on ‘what we ARE doing’ data rather than the ‘what we THINK we CAN do’ data. 13 Operational Excellence – The Digital Way

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Business Management Perspective Brand Protection. Quality Assurance Transparency and tighter real-time controls in operations to safeguard processes and prevent quality issues. 14 Operational Excellence – The Digital Way

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Business Management Perspective Drive Sustainable Manufacturing Visibility into resource consumption in areas across the enterprise , empowering them to drive savings as events occur. 15 Operational Excellence – The Digital Way

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Engineering & Operations Perspective Empowered Operators Better Decisions Need for tools to help gather, correlate and contextualize raw data to truly understand operations for better, faster results. 16 Operational Excellence – The Digital Way

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Engineering & Operations Perspective Insight and Control to drive savings Increase in Profit = Plant Revenue * Gross Margin * OEE * Improvement in OEE 17 Operational Excellence – The Digital Way

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Engineering & Operations Perspective Reduce Integration Costs and Complexity A single platform to easily extend and connect to data from otherwise isolated systems. 18 Operational Excellence – The Digital Way

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Engineering & Operations PerspectiveAccelerate Continuous Improvement InitiativesAdopt Lean - Recover value, lower inventory, maximize capital efficiency, and eliminate excess variable costs. 19 Operational Excellence – The Digital Way

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Operational Excellence Approaches Rip & Replace 20 Operational Excellence – The Digital Way Image Courtesy: Flickr.com and Vecto2000.com

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…or a smarter approach? • Flexible • Scalable • Integrated • Minimum risk • Open technology • Demonstrable ROI • Hardware independent • Incrementally expandable 21 Operational Excellence – The Digital Way

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Operational Excellence Roadmap Predictable OEE Regimen• Equipment • Digitized SOP Manufacturing • Enterprise Level • Line • Clever • Plant Efficiency Integration Operators! efficiency • Information Process Integration Process Enterprise Visibility Reliability Agility 5 4 3 2 1 22 Operational Excellence – The Digital Way

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The Operational Excellence Journey…Tactically Implemented Quick Results Application Strategic Strategy Deployments Roadmap Rapid Capacity Recovery Maximize Local Cost Savings Structural Cost Savings 6 MONTHS 9-12 MONTHS 15-18 MONTHSP 1.1 Process Visibility P 1.2 Structured OEE P2 Specification Management Real Time Quality P3 Process Digitization Standardized Work P4 Genealogy Material Impact / Sustainability P5 Supply Chain Visibility and Optimization Across Multiple Sites 23 Operational Excellence – The Digital Way

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Step 1: Process Visualization Identify basic down time issues• Supervisory Control• Data Collection, Archival and Analysis Helps develop baseline metrics that provide a starting point for measuring reductions in downtime by providing superior process visualization, data acquisition, analytics and supervisory control of your operations. 24 Operational Excellence – The Digital Way

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Step 2: OEE Regimen Focus on work segments• Equipment Efficiency• Process QualityBy contextualizing data from several production dimensions (machine, crew, etc. ), and performing trending and correlation analysis, a deeper insight of overall production as well as critical process parameters is gained. 25 Operational Excellence – The Digital Way

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Step 3: Process Reliability Reliable, Repeatable and Accurate• Work Process Management (e-SOP)• Production SchedulingEnsures reliable, repeatable and accurate execution as well as visibility into how efficiently these tasks are being executed. 26 Operational Excellence – The Digital Way

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Step 4: Predictable Manufacturing Predictable and Adaptive • Tracking and Traceability • Advanced Analytics and ReportingBeing able to predict and react to changing materials and process dynamics ensuresfirst-pass quality every time, and helps determine the ideal conditions from which to generate maximum yield. 27 Operational Excellence – The Digital Way

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Step 5: Enterprise Agility Improve enterprise efficiency• Supply Chain Integration• Asset Maintenance Cost Refining capacity planning for raw materials and real-time process orders, andintegrating accurate reporting enables manufacturers to fully support business processes across organizational boundaries. 28 Operational Excellence – The Digital Way

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How does GE help? Proficy™ for Manufacturing 29 Operational Excellence – The Digital Way

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Typical Plant: Before GE Inconsistent execution of manual Unplanned downtime procedures introduces inefficiency consumes up to 40% of and quality problems available capacity Unpredictable quality and throughput lead to over- and under-stocks of key Finished goods inventories must be ingredients held at several weeks anticipated Root causes of quality and yield losses are orders, in order to be sure of meeting unclear – testing and records customer delivery demands management is largely manual – and disconnected from the process 30 Operational Excellence – The Digital Way

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After GE Solution Implementation Up to 20% of production Improved procedural execution capacity is recovered as enables agility for high-SKU-mix equipment is proactively production tuned for reliability Material inventory is balanced to demand and production capability Reliable, predictable production capacity allows finished goods buffers to be reduced 30% or more Supplier quality is validated, reducing operational variability and product risk 31 Operational Excellence – The Digital Way

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Summary• Operational Excellence can address many of the industry’s recurring challenges• Digital technologies are key enablers• Need a technology that is open, modular and scalable• GE can help! 32 Operational Excellence – The Digital Way

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About GE Intelligent Platforms Software Solutions & Services Sophisticated data collection and visualization tools for production management. Control & Communication Solutions Advanced control systems for manufacturing processes of all types. Military & Aerospace Embedded Systems High tech electronics for aerospace, communications and industrial equipment. 33 Operational Excellence – The Digital Way

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In the ‘Digital’ spirit… Connect with GE Intelligent Platforms on http://twitter.com/GE_IP http://linkd.in/ge-ip-ug http://bit.ly/ge-iptv http://ge-ip.com Thank You. 34 Operational Excellence – The Digital Way

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