Growing MES capabilities with the Shop Floor and Automation infrastructure you already have

1. MES: A View from the Shop Floor Edward Brown 1

3. The Big Bang Theory

4. Evolution not Revolution

5. World Peace

6. Charting a Course

7. Laying the Foundation

8. Build the Pyramids2 Topics

9. ISA-95 Manufacturing Operations Model What is MES? ISA-95 part 3 defines MES/MOM capabilities 3

10. Trickle Down Theory Level 3 Manufacturing Control Systems Area Supervision, Production Scheduling, Reliability Assurance Levels 2,1,0 Batch Control Systems Discrete Control Systems Continuous Control Systems What is MES? Level 4 Business Logistics Systems Plant Production Scheduling and Operational Management

11. Information is the Currency What is MES?

12. Product Definition Information What is MES?

13. Production Capability Information Production capability and capacity definition, is specific to an area, process cell, production unit, assembly line. Production equipment status Maintenance information on production equipment, including information not related to the production capability Maintenance Production Capability Information Information Scheduled Production equipment outages Scheduling Capability Information Preventive/Predictive Maintenance Information Scheduling information on production equipment, including information not related to production capability Production Capacity (Including equipment organization and product flows) What is MES?

14. Production Information Inventory Production Information Information Scheduling Information What is MES? Production information, is specific to an area, process cell, production unit, assembly line. (Batch Journal, log, …) Production Material Information Information on all inventoried material and equipment. Production Schedule and Production Performance Scheduling information on production Production Line Item Information

16. Can perform most or all functions in the MOM

17. Capability to pass information across all areas of the MOM model from/to ERP and PCS levels

18. Tightly integrated functional modules across manufacturing

19. Technology centric, business processes adjust to application procedures9 The MES “Big Bang” Theory The Big BangTheory

21. Application Packages from 250K single site – 10M enterprise

22. Significant Resource Investment

23. Requires dedicated project teams and subject matter experts

24. Duration of project can last from 6 months to 3 years

25. Significant IT, Management, Operator Training

26. Significant IT support for application lifeSticker Shock The Big BangTheory 10

28. Companies overestimate the understanding of their own processes

29. Companies underestimate the impact of implementing new manufacturing and business processes

30. Resistance to change is often significant without comprehensive representation in designing process change

31. Difficult to predict full impact of change from one area to anotherChange or Revolution? The Big BangTheory 11

33. Requirements, analysis, and design period can consume significant portion of projected effort

34. Customizations can consume more than half of required project effort

35. External system interfaces can require significant effort of those systems IT personnelA Long Hard Road The Big BangTheory 12

37. Good and Bad effects of integrated functions can make it difficult to determine specifics

38. Quality of requirements and design usually have bigger impact on ROI than the function itself.

39. Wrong low hanging fruit – Initial assumption of a high ROI function may be misguided13 It Shouldn’t Be a Hedge Fund The Big BangTheory

41. Select one or few MOM capabilities to implement

42. Add MOM capabilities over time

43. Exchanges information with implemented features from/to ERP and PCS levels as required

44. Loosely coupled functional modules across manufacturing with the ability to leave legacy systems in place

45. Process centric approach using appropriate technology as needed through combination of customization and extension of existing systems and incorporating new technologies/applicationsThe Evolutionary Approach Evolution not Revolution 14

47. Pay for what you use – Smaller Technology Purchases

48. Supporting Infrastructure matched to technology – some increments may not require it

49. Reasonable Resource Investment

50. Smaller Project teams and fewer subject matter experts specific to capability and for shorter duration

51. Duration of project reduced, typically 3-6 months

52. Reduced IT, Management, Operator Training

53. Reduced IT support for new application(s)Efficiency Drives Evolution Evolution not Revolution 15

55. Concentrate on understanding one or a few processes well

56. More time to understand the impact of implementing a new manufacturing and business process

57. Resistance to change can be reduced by including selective representation in designing process change

58. Easier to predict full impact of change from one area to another16 A Welcome Change Evolution not Revolution

60. Requirements, analysis, and design period scaled to MOM capability being implemented

61. Customizations limited to single/few capabilities

62. External system interfaces may not be required for some capabilities and are limited for those that are17 Quick AND Easy? Evolution not Revolution

64. Good and Bad effects of implemented capability are readily apparent

65. Quality of requirements and design are usually improved because scope is smaller and easier to understand

66. Low Hanging Opportunities can be evaluated quickly and expanded or contracted as required

67. Hard ROI evidence justifies next increment18 ROI Clarity Evolution not Revolution

69. Use the ISA-95 MOM model to determine activities for consideration

70. Determine the current state of the process thoroughly

71. Getting MES Processes Right is a TEAM Effort

72. MES isn’t an IT initiative, it’s a Team initiative

73. MES SUPPORTS Lean and Six Sigma Initiatives

74. The Right Representation for the Capability

76. Document Business Goals and Objectives

77. Build Capabilities Pyramids to Achieve World Class Status

78. Identification of Low Hanging Opportunities

79. Collaboration Workshops to Develop Roadmap(s)20 A Long Term Roadmap is Essential Charting a Course

81. Initiatives

82. Key Performance Indicators

83. Objectives & Constraints

84. Customer/Supplier Effectiveness

85. ISA-95 Activity Survey

86. Conduct Surveys for candidate Department(s)

87. Small SME Teams Complete ISA-95 Activity Survey

88. Determine Shortfalls by Activity

89. Develop As-Is Process Flow

90. Determine List of Shortfalls by Activity

91. Determine Cost of Shortfalls21 Create Measurable Objectives Charting a Course

92. Clarify Objectives and Requirements Charting a Course

94. Automation

95. Conversion of paper processes to electronic

96. Data capture through equipment and instrumentation

97. Minimizing Operator Input

98. Integration

99. Integrating functional data from operation to operation

100. Integrating functional data across capabilities

101. Integrating functional data across business units and plants23 Build Capabilities to Reach Best In Class Charting a Course

102. Develop capabilities that reflect Business Goals and Objectives 24 Build Capability Pyramids Best In Class Laying the Foundation Goal Integration Automation Foundation

104. Determine Automation Requirements25 Determine Low Hanging Opportunities A successful man is one who can lay a firm foundation with the bricks others have thrown at him. - David Brinkley Laying the Foundation

105. Scenario: Operators at the Acme Drug Company add to the Batch Record at Compounding by physically attaching a paper trend chart for environmental conditions. On average, three incidents per Quarter occur where the incorrect chart data was associated with a Batch. Of those incident batches, one batch in three cannot be resolved and is lost. Costs: Annual time and material 4 quarters * 3 incidents = $15K-$50K 4 quarters * 1 batch/quarter = $1M - $5M Opportunity $1M – $6M A Genealogy MOM Capability Appears to be a Viable Candidate Project. 26 Identifying the Target Laying the Foundation

106. 27 Map MOM Activities to Capabilities Laying the Foundation

107. Hold Workshop(s) for Selected Capability 28 No one wants advice, only collaboration - John Steinbeck Build the Pyramids

108. Process Maps are the Foundation Build the Pyramids

109. Determine Automation Data Requirements Build the Pyramids

111. Collect and Associate Quality Test results with Batch

112. Lot Management

113. Record Consumption of Raw Material Lots

114. Material Tracking

115. Record movement of materials from location to location

116. Production Execution

117. Record Environmental Data to Historian

118. Record CIP/SIP Data to Historian

119. Record and Associate production data with Batch Record31 Genealogy Automated Data Collection Build the Pyramids

120. Using or expanding the Automation functions you already have is a smart way to achieve MES functionality What’s in the Backyard? 32 Build the Pyramids

121. A MES Repository Aggregates & Associates Build the Pyramids

123. Allow individual MOM Capabilities to Utilize Structures and Associations as needed

124. Add Capabilities by Exposing Additional MES Associations and Structures

125. $60K-$300K Typical Installed CostExtendable MES Requirements 34 Build the Pyramids

126. Map Functions to Technologies Build the Pyramids

127. Justify the Necessity 36 Build the Pyramids

129. Develop Automation capability where necessary

130. Implement limited MES functionality with compartmentalized capabilities

131. Establish and Monitor Process Improvement Metrics

132. Measure and Document ROI

133. Use ROI to Justify Next Brick37 Implement and Evaluate Plans are only good intentions unless they immediately degenerate into hard work. - Peter Drucker Build the Pyramids

134. Build on Capabilities Build the Pyramids

136. Reasonable Capital Investment

137. Reasonable Resource Investment

138. Simplified Change Management Process

139. Shorter and Simplified Implementations

140. Easier to Determine Return on Investment

141. Process is More Important than Technology

142. Determine Ripe Opportunities

143. Include All Stakeholders in Collaboration WorkshopsConclusions Conclusion 39

145. Clearly Defines Goals and Necessary Elements for Growth

146. Automation can Provide MES capabilities

147. Current Automation Data Aggregated to MES DB

148. Extending Automation Capability can be more Efficient

149. Measuring Performance Justifies Next Steps

150. KPI’s Show Operational Improvements for Change Management

151. ROI Measurements provides Business Case for additional capability40 Conclusions Conclusion

152. Questions? Web Site: www.AvidSolutionsInc.com Contact Information: Ed Brown – 919.606.9592 Shane Bernard– 336.409.9894 41