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1
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
eCommerce andeBusiness REQUIRE eManufacturing to keep up!
2
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
ERP, MES, APS, Quality Management: ERP, MES, APS, Quality Management: How do these Pieces EFFECTIVELY fit How do these Pieces EFFECTIVELY fit Together?Together?
3
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
ManufacturingExecutionSystem
What are the pieces?What are the pieces?
ERPOrder Management
Production PlanningInventory ManagementLogistics & Distribution
Financials / CostingPurchasing
MRP
Lab &QualityInfoSystems
AdvancedPlanning &Scheduling
HumanResourceManagement
ProcessControl
Asset Maintenance& Mgmt.
CustomerRelationshipMgmt.
Supply Chain Mgmt.&eCommerce
Data Warehouse& DecisionSupport
4
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Mill
Man
ag
em
en
tEn
terp
rise &
Su
pp
ly C
hain
Man
ag
em
en
t M
an
ag
em
en
t
Mach
ine &
Pro
du
cti
on
Un
it M
an
ag
em
en
t
ProcessManagement
ProcessControl/SPC
ProductionExecution
Accounting, Purchasing, MRO, etc.
Order to Delivery Processes
Mill
Op
era
tion
sM
ill
Man
ag
em
en
tD
iv.C
orp
M
an
ag
em
en
tS
up
ply
Ch
ain
Man
ag
em
en
t
ERP
Manufacturing Execution
Advanced Planning & Scheduling
Quality Management
Credit: AMR Research, Modified with Permission
5
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
What is ERP?What is ERP?
ERP System
MillsProduction DemandResultsPurchase Requirements
Customers
QuotesATP
OrdersInvoices
Product Quality
Suppliers
PricingOrdersProduct Quality InvoicesReceiptsATP
Front Office
Financial ResultsCustomer Service/CRM
ProcurementResource Planning
6
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
ERP: What is it Really?ERP: What is it Really?
A Commercial Off The Shelf (COTS) application software product that provides a set of tightly integrated functions necessary to manage a modern manufacturing enterprise.
AccountsReceivable
AccountsPayable
GeneralLedger
FinishedGoods
Shipping& Logistics
WIPProductionPlanning
ProductionExecution
WarehouseManagement
MaintenanceManagement
MRP Quality CRP
HumanResources
Payroll PurchasingOrder
ProcessingCRM
Fixed Assets Consolidation
7
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
AccountsReceivable
AccountsPayable
GeneralLedger
FinishedGoods
Shipping& Logistics
WIPProductionPlanning
ProductionExecution
WarehouseManagement
MaintenanceManagement
MRP Quality CRP
HumanResources
Payroll PurchasingOrder
ProcessingCRM
Fixed Assets Consolidation
ERP: What’s wrong in Pulp & Paper?ERP: What’s wrong in Pulp & Paper?
Some of the functions provided by the major ERP products are a poor fit for the Pulp & Paper industry in their off-the-shelf form.
?
?
??
8
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
ERP Order Services & Planning for ERP Order Services & Planning for Pulp & Paper….not always a good fit...Pulp & Paper….not always a good fit...
Roll Dimensions Vs. SKU’sMake to order, not stock
Calculate Converting Roll Stock Orders
Order and/or Shipping Tolerances
Unique P&P material flows: Trees & Recycle Fiber Lines Reels Rolls Converted Products
Trim Vs. finite scheduling
9
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
ERP to the P&P Manufacturing Floor?ERP to the P&P Manufacturing Floor?
“ I gotta key in 12 fields in 3 different windows before you can turn up that set?
“…. this system can’t talk to our automated wrap line?”
Without an MES system, it’s insanity!Without an MES system, it’s insanity!
“Every roll has to be a unique lot to track Quality data?
10
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
There are real ERP benefits for P&P There are real ERP benefits for P&P companies however...companies however...
Integrated financial systems
Integrated cost systems
Integration of purchasing, maintenance stores, human resources, payroll, etc.
Growing functionality in some “ERP II” areas, e.g. Web commerce, customer asset management, etc.
Some P&P vertical market momentum but ….
Some of the major ERP vendors will overcome critical functional deficits for the P&P market, especially customer order management issues, maybe planning/scheduling/ATP, and in some cases even integration with the shop floor.
11
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
What is MES?What is MES?
Plan
DistributeMakeSource
Supply Chain Council SCOR model
Manufacturing Execution Systems Manufacturing Execution Systems manage the “Make” part of your manage the “Make” part of your Supply ChainSupply Chain
12
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Honeywell HiSpec – OptiVISION™
MAJIQ Systems - ELIXIR™
ABB – ABB™
Segment products from smaller companies coming to market
Home Grown – Legacy-R-Us™
Manufacturing Execution SystemsManufacturing Execution Systems
Pulp & Paper Industry MES SuppliersPulp & Paper Industry MES SuppliersPulp & Paper Industry MES SuppliersPulp & Paper Industry MES Suppliers
13
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
The Unique MESThe Unique MES Product Evolution Product Evolutionin Pulp & Paperin Pulp & Paper
Product Tracking
Trim
1975 1980 1985 1990 1995 Now
Order Entry &Shipping
Quality
•Customer Service
•Converting
•Warehouse Management
•Invoicing
•Raw Material Planning
•Load Planning
•Traffic Management
•ERP Integration
14
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
The MES evolution has yielded The MES evolution has yielded realreal benefits for Paper Companiesbenefits for Paper Companies
• Better productivity & yield improvement• Better capacity management• Lowered waste• Better quality control• More efficient logistics, fewer errors• Ability to manage customer expectations• Complete & functional order to delivery
systems
15
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
But the ERP & MES products have major But the ERP & MES products have major overlaps in Pulp & Paper!overlaps in Pulp & Paper!
Winder ManagementReel/Roll trackingLab Data CollectionI/F with GaugingTrimConverting OperationsMfg. Production Orders
FinancialsPurchasingHuman ResourcesMaintenance ManagementCosting
Customer OrdersShippingFinished Goods Roll QualityWarehouse Mgmt.SchedulingMRP
ERP
MES
Which vendor(s) should provide these overlapping functions and why?
16
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Production Planning & SchedulingProduction Planning & Scheduling
Functionality that cuts across existing Functionality that cuts across existing classes of Packaged products.. classes of Packaged products..
MESMESERP, ERP, &&Pure APS productsPure APS products
17
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Scheduling Resides, Where, Exactly???Scheduling Resides, Where, Exactly???
Most MES vendors offerblock scheduling & trim
Most MES vendors offerblock scheduling & trim
Every ERP Systemoffers some type
of scheduling
Every ERP Systemoffers some type
of scheduling
P&P SpecificScheduling &Trim Bolt-on
Products
P&P SpecificScheduling &Trim Bolt-on
Products
Other manufacturingscheduling systemsnot specific to P&P
Other manufacturingscheduling systemsnot specific to P&P
18
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Most MES vendors offerblock scheduling & trim
Most MES vendors offerblock scheduling & trim
For Pulp & Paper, not just anywhere!!!For Pulp & Paper, not just anywhere!!!
Every ERP Systemoffers some type
of scheduling
Every ERP Systemoffers some type
of scheduling
P&P SpecificScheduling &Trim Bolt-on
Products
P&P SpecificScheduling &Trim Bolt-on
Products
Other manufacturingscheduling systemsnot specific to P&P
Other manufacturingscheduling systemsnot specific to P&P
Can’t correctly model dimensional relationships?
Don’t effectively model the many to one to many relationships?
Don’t manage the key trim issue as an integrated part of the planning process?
Their product development teams don’t understand Pulp & Paper!
Don’t rely on real time production feedback to dynamically adjust the plan?
??????
19
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
APS benefits are usually a matter of APS benefits are usually a matter of complexity and sizecomplexity and size
Single MillMulti-MachineMulti-Product
Multi-MillMulti-MachineMulti-Product
Rolls + Converting
Multi-MillSingle Product
Roll Based
Single MillSingle MachineSingle Product
Roll Based
IncreasingComplexity
Increasing Size
GreatestBenefitfrom APS
Least Benefitfrom APS
20
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Quality Management functions probably Quality Management functions probably have the least clear cut definition in have the least clear cut definition in terms of Package products. terms of Package products.
ERPERPMESMES
Process Information
Systems
Process Information
SystemsHybrids, e.g. Mountain Systems
Hybrids, e.g. Mountain SystemsLIMSLIMS
21
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Grade History
Process Historian
Quality Management Information has Quality Management Information has multiple sources and multiple consumers...multiple sources and multiple consumers...
Lab Data GaugingData
Mill &CustomerSpecs
ERP for CustomersThe things you communicate to
them about your product when it ships
MES for Production OperationsThe things that help production
decide when product meets specs or needs to be scrapped
QM or PIMS for Process Engineering GroupsThe things that enable them
to troubleshoot problems and tackle optimization opportunities
22
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
The concept of quality management The concept of quality management systems is still evolving in pulp & papersystems is still evolving in pulp & paper
•The “Hybrid Systems” vendors have an opportunity to continue to grow their role and the functionality they own
•The ERP & MES vendors will have to improve the depth and scope of their offerings or risk loosing these functions completely in the paper industry
•Being able to address the needs of the quality information consumers in the enterprise is the key
23
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
What about “Best of Breed”?What about “Best of Breed”?
How do we select the
right Packageproducts?
How do we select the
right Packageproducts?
What functionality do we really need?What functionality do we really need?
How do we put it all together?How do we put it all together?
24
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
You should identify your opportunities for You should identify your opportunities for improvement first..a “vision” for where improvement first..a “vision” for where you want to beyou want to be
•Understand and document your current state in terms of business & manufacturing objectives, business processes, manufacturing processes, and systems
•Develop a vision of your future state that is realistic and achievable
25
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Understand the requirements for Understand the requirements for achieving your future stateachieving your future state
•What functionality is required?
•Which vendors can meet the real requirements?
•What are the integration requirements?
•How will you sustain, grow, and adapt?
•What realistic paybacks and benefits can the enterprise or mill expect?
26
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Develop a REALISTIC Plan for Develop a REALISTIC Plan for Implementation….Implementation….
…neither Santa Claus, the Tooth-Fairy, or the Stork will deliver a successful COTS systems integration or implementation project…you have to plan them in detail and then have the right resources to execute the plan plus accountability for the integration
27
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Implementation Planning is not Implementation Planning is not enough. A complete lifecycle plan is enough. A complete lifecycle plan is required for best of breed solutions.required for best of breed solutions.
New Requirements
EnhancementsUpgrades
Support& Training
System Lifecycle
28
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Best of Breed Package solutions are achievable Best of Breed Package solutions are achievable and and todaytoday that is the that is the only wayonly way pulp & paper pulp & paper companies can provide robust functionality across companies can provide robust functionality across the entire “make” part of your supply chain…..the entire “make” part of your supply chain…..
...and achieve emanufacturing!
ERP MES
Quality
APS
ProcessInformation
29
McIntosh & CubineApril 11, 2000
PIMA Information Systems International Conference
Questions, comments, electronic Questions, comments, electronic copies, etc.copies, etc.Mike McIntosh
Mark [email protected]