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ArcelorMittal Dofasco MES Implementation
John O’GradyManager IT
ArcelorMittal Dofasco
Bibartak MandalPractice Head
Wipro Technologies
Gerald DixonVice President
PSI Metals North America
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Agenda
• Business Challenges & Objectives • Solution Components • Program Governance: Efficient handling of a complex
task• Rapid release commissioning, an option to consider!• Lessons learned• Q & A
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Business challenges and objectives
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ArcelorMittal Dofasco MES Approach• Business Driven
– Business Case driven with quantitative and qualitative benefits
• Create world class processes based on best practices and purchased solutions
– Benchmarking, Process Design, Looked to solutions out of the box – minimizing customization
• Focus on the Solution and what benefits would be achieved and how
• Focus on the cost for implementation• Focus on Alignment to IT Vision
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MES Solution Provides• Enabling Technology for our workforce to
continuously improve– Clear and correct manufacturing instructions– Information is captured at the source and is accurate and reliable– Workforce Efficiency, through Industry Best Practices
• Support for our cost reduction initiatives– Inventory reduction– Quality, Yield and Delays
• Alignment to IT and Business Vision– Fully integrated solution, using proven technology– Reduces IT landscape complexity
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MES Scope
Run & Record Production
CustomerNeeds
Ship & Invoice To Customer
ORDER PROCESSING
Planning &
Scheduling
Translate
Order
ProductConfiguration
DEMAND MANAGEMENT
Legacy
Enhance Current Solution& PSI
LegacyLegacy
PSILegacy
PLANNING AND SCHEDULING
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MES Scope - Production Lines
The MES Project scope covers all Finishing Division production lines from Hot Band Inventory onward, including
those supplied by Outside Processors.
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MES Scope• HBI (Hot Band Inventory) through Finishing
– Production Planning– Material Allocation– Production Scheduling (Line Sequencing)– Schedule Execution & Production Tracking (including Interfaces
to/from L2)– Inventory Management– Quality Management (includes Dispositioning, Sample Tracking)– KPI’s and Common Production Reporting– Single Source of Record for MES data and Business Rules – Retirement of associated Legacy applications
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MES Program Landscape – Functions
Level 2 Steelmaking Level 2 FinishingLevel 2 Hot RollingL2
L3
Finishing MES - PSImetals
Automated Line Sequencing
ALS
Production ExecutionSystem
PES
Lab & QualityManagementMeltshop Optimization
& Primary Scheduling
Primary ProductionExecution
Shipping &Invoicing
ProductProfitability
Customer Management
Sales OrderManagement
DemandManagement
Production PlanningL4
Logistics & Transportation Management
Financial
Procurement
Human Resources
Maintenance
Primary MES
Dat
a W
areh
ouse
(D
SE)
Outside Processing(via EDI)
Lab System
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Solution Components
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PSImetals: Solutions for Production Management
APS Advanced Planning & SchedulingALS Advanced Line Sequencing
PES Production Execution SystemWTM Warehouse & Transport Management
• Metallurgical Models
KPI Key Performance Indicating EMS Energy Management System BMC Business Management Cockpit
PSIintegration
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New Business Process Flow
Level 2 Level 2 Lab SystemHot Rolling Finishing
Preparation of ExecutionP
S I
m e
t a
l s
Reporting/ KPIQuality Assessment/
“Dispositioning”Production Tracking
Leg
acy
Leve
l 2
Integration Layer incl. EDI
Order ManagementProduct Configuration &
Order Processing
PPSAutomated Material &
Production Planning
Production & Quality Management Execution
Interactive Planning and Scheduling
Material & Stock Management
Material Planning
(Pre-) Line Sequencing
Cross-Plant-Planning
Integration Layer
Order ManagementInvoicing & Shipping
DSE
ALS
PES
Production Order Life Cycle
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New Business Process Flow
ALS
PES
AutomatedMaterial Planning
(Broner MP)
InteractiveMaterial Planning
Detailed Scheduling(Broner PP)
Release forsequencing
Coilcustomization
forward
Production Order Life Cycle
Material Management
Line Sequence Execution
Performance MonitoringPlan Assessment
“Cross Plant Planning”
AutomatedMaterial Planning
(MP)
MaterialAllocation
Production Planning(PP)
Release forsequencing
Line Sequencing& Coil
customization (forward)
Production Order Life Cycle
Material Management
Line Sequence Execution
Performance MonitoringPlan Assessment
Cross Plant Planning
LoopDaily
• ETA for hot band• Planned dates for
Production Ordersoutside of the ProductionOrder Planning Horizon
• Planned dates for Production Orders inside the ProductionOrder Planning Horizon
• Factory Calendar updates• Campaign types & cycles
LoopContinuous
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Overall MES Solution
L2
L3 Automated Line Sequencing
ALS
Production Execution System
PES
Lab & QualityManagement
Meltshop Optimization& Primary Scheduling
Primary ManfacturingExecution
Finishing MES - PSImetals
Decision Support Environment
(supports L2 L3 L4)
ProductProfitabilityHuman Resources
Financial Customer & SalesManagement
OrderProcessing
Procurement
DemandManagement
AdvancedProduction Planning
Product Logistics& Shipping
L4Maintenance
New ODS
Existing Interfaces to be retained
New Interfaces to be built
New Interfaces to be built
Data Migration shifting of functionality to new MES
Data Migration from old ODS to new ODS
Old ODSNew Loading mechanism New Reports
Modified Reports
Modified DSE
Old finishing MES ( Will not exist in
future)
Data Migration from old finishing MES to new MES
Outside Processing(via EDI)
Level 2 Steelmaking Level 2 FinishingLevel 2 Hot Rolling Lab System
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System Integration SolutionComponents
Application Remediation
Syst
em In
tegr
atio
nC
apab
ility
Enterprise Integration
Data Migration
Data warehouse & Reports
End to end Testing
Program Management
Business ChangeManagement Support
Tech
nolo
gy S
uppo
rt
Dom
ain
Kno
wle
dge
Legacy Enhancement
Legacy Modernization
Application Development
Business Rule Extraction
Sourcing data for integration
Database Design & Modeling
Enterprise Integration Framework (EIF)
EIF Key Features•The core components of the Enterprise Integration Framework are modular and separately deployable.•Message, flow, route, endpoint, filter and task details are stored in the Meta-Data Repository, enabling maximum reuse by all components and non-intrusive implementation. Flow specific properties for endpoint, tasks and filters are parameterized and easily configurable•Supports generic components like Exception Handling, Auditing and Logging.•Highly configurable, scalable and flexible solution.
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MES Solution – Data Migration
• Highly Complex
• Multiple round of simulations
• Validations by Business
• Very large volume of data
• Extensive automated and manual validation procedures
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MES Solution – Enterprise Integration
EIF – A configurable, scalable and flexible solution
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Program Governance: efficient handling of a complex task
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Program Governance StructureExecutive Sponsors(Process)
(Technology)
Program Sponsors
Program Clients
Steering Committee:Executive Sponsors
Program Sponsors
Wipro
PSI
Business BenefitOwners
OffshoreRisk Management
Program Managers:(Process)
(Technology)
(Wipro)
(PSI) Wipro Offshore Program Manager
Project Managers(AMD), (PSI), (Wipro)
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Core Team Structure
Project Support
Program ManagersProcess
TechnologyPSI
Wipro
PMO (Project Management Office)
Wipro Offshore Program Manager
Procurement
Onshore IT Delivery Team
AppIntegration TeamAMDWiproPSI
Testing TeamAMDWipro
App Remediation TeamAMDWipro
Data Warehouse TeamAMDWipro
Infrastructure TeamAMD Wipro
Data Migration TeamAMDWipro
Offshore IT Delivery Team
Testing Team
QA Team
App Remediation Team
Data Warehouse Team
Process Team
Solution Arch Team
Data Migration Team
Planning & Scheduling TeamAMD PSI
Production Execution TeamAMDPSI
Prod Configuration TeamAMDPSI
Project ManagerAMDWiproPSI
Solution ArchitectsAMDWiproPSI
Business Change ManagerAMDWipro
QA ManagerAMDWipro
App Integration Team
Offshore Project Manager
Process AutomationAMD
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Planning
Design Specifications
Technical Architecture
Design
Front-endDesign
Front-End Specifications
Business Requirements
AnalysisArchitectureRequirements
Design & Configure
Construct to Commissioning
Con
trol
Man
agem
ent
Kno
wle
dge
Man
agem
ent
• Gap Analysis• Sys Req
Specifications
• Detail Design• Data definitions• Business rules• Test Plans• Messaging
• Program specs• Test cases & data• Application build &
unit testing• PSI Configuration• System Testing• End to End Testing• Acceptance Testing• CommissioningDeployment
Construction, PSImetals Config
& Unit Test
Integration Test
System & Performance
test
Acceptance Test Sign-off
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Rapid release commissioning
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Implementation StrategiesTechnical
RiskBCM Risk Project Cost Benefits
RealizationBig Bang H H L early
Rapid Release M H L early
Phased Implementation
M L H late
The Rapid Release approach was selected for this project. It involved an aggressive roll-out, vigorous monitoring, and quick resolution of
problems as they are identified.
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Commissioning: Definition of Success• Within 7 days of shutdown, all core business functions are in full
operation• Critical business functions that have been identified as priorities are
brought back online according to plan (eg. Shipping)• Open items are being effectively managed with minimal business
impact• No significant customer service impacts• No injuries or equipment damage• No looking back once majority of the finishing lines are
commissioned
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Commissioning: Plan SummaryPreparation Phase:• Multiple iteration of data migration, application deployment trial (19
times) and application sanity checking• Rigorous System Testing & critical business test case run by end
users prior to commissioning • Ensuring Infrastructure readiness and operation readiness• Communicating to all internal and external stakeholders• Ensuring people readiness on business process changes and
operation and system• Conducting Live Manufacturing Test on critical finishing lines • Conducting Commissioning Toll-gate checking; Go-No-Go decision
Commissioning plan is conceptualised through Commissioning Strategy workshops during design stage and evolved over time through many iterations to fit all necessary
commissioning related components
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Commissioning: Plan SummaryCut-Over:• No chance of error; once missed need to wait for another 6 months• Ensure that all business processes are complete • Plan sequence of activities and resources meticulously; flexibility in
resource deployment is important• Set up Commissioning War-Room as 24*7 command center;
ensure presence of all important stakeholders round the clock• Ensure manual correction of data, if necessary, after migration • Ensure inventory sign-off with finance
Commissioning related activities started early and monitored
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Commissioning: Plan SummaryStart-Up:• Ensure critical business process startups• Ensure creation of lineups in the order of priority of go-live of
finishing lines• Ensure all stakeholders are ready for startup operationally and
from system point of view• Ensure 24*7 and immediate support to business and operation
from all stakeholders
All software life-cycle activities are aimed at satisfying the commissioning start-up needs and had a minimum technical solution focus.
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Lessons Learned
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Key Lessons Learned• Approach
• Bold, Aggressive, Rapid implementation of To-Be environment• Fixed price• Internal subject matter expertise is required• Provide early perspective and visibility of solution• Rapid Release Commissioning
• Off-shore• Cost effective• Clear, complete, and unambiguous documentation and
specifications are much more critical in offshore development• Must adapt your IT Processes to align with offshore
development methods for it to be successful• Have a good balance of on-site and off-shore resources.
Increase on-shore presence to improve efficiency and effectiveness
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Key Lessons Learned• Testing
• Rigorous test documentation required –scenarios cross-referenced to requirements and design, data requirements, defect tracking, pass / fail / acceptance
• Data reliance: • Do not under estimate data migration, it is a large undertaking and needs
to be focused on from project start; • Clean legacy data first within the legacy environment
• Lack of simulation in the test environment, need for parallel testing• Communication
• Continuously improve communication and collaboration• Establish regular recurring (time-zone appropriate) conference calls• Improve diligence in documenting design changes, follow up on issues and
actions
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Key Lessons Learned• Multi-vendor, multi-culture
• Celebrate various holiday lunches, organize sporting events – build team spirit and increase discretionary effort
• Understand work practice differences – across countries and across companies
• Pre-establish a vacation calendar – reduce contractually or at least get into the plan early
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Q & A
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Contact Information
John O’Grady
ArcelorMittal Dofasco,Project [email protected]
Gerald Dixon
PSI Metals North America, Inc.,Vice President [email protected]
Bibartak Mandal
Wipro,Practice [email protected]
35
The information contained in the slide deck entitled "MES Implementation Presentation for MESA.ppt" presented September 19-21, 2011 and in the associated discussions is provided by ArcelorMittal Dofasco ("AMD") as a courtesy to the MESA International - 2011 North American Conference and its attendees (“MESA”). It provides MESA with information about AMD's experience with PSI-BT's software and integration services and with Wipro's project management and systems integration services.
While AMD, PSI and Wipro believe the information contained in this slide deck, and in the associated discussions, is accurate, such information is provided "as-is“. AMD, PSI and Wipro do not warrant that the information is accurate or complete and do not accept any responsibility or liability for any inaccuracies or incompleteness. The results achieved are not necessarily typical and parties involved do not represent or warrant that the results will be achieved by another organization.
Neither AMD, PSI or Wipro, nor any of its affiliates will be liable for any loss or damage of any kind or nature whatsoever arising out of reliance on the slide deck or related information, under any theory of law (whether under tort, contract or otherwise) or equity.
“ArcelorMittal” and the ArcelorMittal design are trademarks of ArcelorMittal.
“Wipro” and Wipro design are trademarks of Wipro.
“PSI” and the PSI design are trademarks of PSI.
Disclaimer
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AbstractArcelorMittal Dofasco MES implementation• Client: ArcelorMittal Dofasco in Hamilton, Ontario, Canada is the client. It is an integrated steel
mill site that is part of ArcelorMittal, the largest steel company in the world. ArcelorMittal Dofasco has approximately 5000 employees at its site with an annual production of 3.9 million tonnes of steel. ArcelorMittal Dofasco markets include automotive, construction, tubular, steel distribution, and appliance.
• Project context: ArcelorMittal Dofasco replaced its custom finishing Manufacturing Execution System with a Commercial Off The Shelf (COTS) solution from PSImetals to reduce working capital, increase efficiency and effectiveness through improved planning, scheduling, and quality management processes and technology. The implementation project ran for 30 months. The solution went live at the beginning of September 2010.
• Project scope: The project scope included the remediation of legacy systems (Level 4 and Level 3) to work with the package software, COTS software customization, development of an integration framework, testing, data migration, training, and commissioning. The scope of the MES included planning and scheduling, production reporting, quality management, and decision support.
• Project Delivery Methodology: The project used a global delivery model. Development Centres were located at ArcelorMittal Dofasco’s Hamilton offices, Wipro’s Kolkata, India Offshore Delivery Centre and PSI Metals in Berlin and Dusseldorf, Germany.
• Paper: This paper and presentation will provide an overview of the project, methodology, lessons learned, and results to date.
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ArcelorMittal Dofasco
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ArcelorMittal Dofasco
• Founded 1912, ArcelorMittal Dofasco’s 750 acre site is strategically located at the western end of Lake Ontario.
• Approximately 5,000 non-union employees
• “Our product is steel and our strength is people”
• Highly engaged workforce
• People are our competitive advantage
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Products• Produce hot rolled, cold rolled, galvanized, tinplate,
chromium-coated and pre-painted flat rolled steels.
• This wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries.
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ArcelorMittal Dofasco Process Flow - Hamilton
#1 Coke Plant
#2 CokePlant
#3 Coke Plant
Coal
Coal
Coal
Iron Ore
#2 Blast Furnace
#4 Blast Furnace
E.A.F. & Caster
Hot Roll Product Stream
Cold Roll Product Stream
Galv. Product Stream
Tin Product Stream
ScrapPurchased slabs
Hot Metal
Slabs
Tube Business
Primary Manufacturing Finishing Manufacturing
Hot Mill
#2 Melt Shop & Caster
#3 Blast Furnace
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Aerial View of Plant
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PSImetals
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Our Roots – Our Know-How
Formation in 19691,420 employees
$219 Mil. Rev.per Dec. 31, 2010
Formation in 186010.000 members100 associations in theiron- and steel area
StahlinstitutVDEh
Steel:Technology and process – know-how
Software:Standard softwaremarketing & sales
Production management for M E T A L S
44
Wipro
45
Overview – IT Services and Products
CAGR of 28% in the last 6 years for IT services
Part of NYSE’s Technology-Media-Telecom (TMT) Index, NSE Nifty Index & BSE Sensex
Sustained growth
US $ Billion in Revenues
$ 6.1*
Over 150 Global Fortune 500 clients
904 active clients as on Mar 31, 2011 with a repeat business ratio of over 95%
904
Active Global Clients
Partner to industryleaders
122385+*
Associates
Attracts the
best talent
122385+ associates from 67 nationalities
One of the top 3 recruiters in India
50+
Centers of excellence
Over 50 CoEs to develop industry and technology solutions
Strategic Technology Themes for FY 11-12: Cloud, Mobility, Business Analytics & IM, Social Networks, Web science, Intelligent M2M Cyber Convergence, Natural User experience technology
Industry expertise
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Countries
Includes 7 Strategic Global Delivery Centers in addition to India centers
Global presence
* Includes Global IT Services Business and Products (Products revenue - as per Indian GAAP converted to USD based on realized exchange rate of IT Services business)
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Integrated service offerings
Industry verticals
Healthcare , Pharma
& Services
Energy , Natural Resources
& Utilities
Manufacturing and Hi Tech
Retail, CPG, Transportation
& Government
Financial Services
Analytics and Information Management
Business Application Services
Technology Infrastructure Services
Business Process Outsourcing (BPO)
Serv
ice
lines
Consulting
Telecom & Media
Product Engineering Services
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Services provided across industry segments
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Revenue mix - Business Unit distribution *
Industry focus
Industry specific alignment of sales and GTM teams
Industry solutions
Acquisitions to strengthen vertical focus
Vertical alliances
Sales teams with industry expertise - key to our customer orientation and satisfaction
Industry architecture for end state processes, product & IT
Vertical growth through industry specific acquisitions e.g. Enabler for Retail, Infocrossing Health Care BPO etc
Industry alliances to enhance process strengths and innovative solutions
Investment in industry expertise
Investment in domain specialists; Over 50 domain-specific ‘Centers of Excellence’
(Figures for Q4 2010 – 11) for Global IT Business
* Business Unit revenues as per 2010-11 SBU structure
Manufacturing15%
Retail & Transportation
16%
Technology, Media and Telecom
24%
Financial Services27%
Energy & Utilities
10%
Healthcare & Services
8%
