PI: Platform for ERP & SCM

Ron KolzERP Industry Manager

Agenda

ERP, SCM and E-Business Challenges for Manufacturing

Need for Real-Time Plant Data

Recommendations

Summary

Questions

ERP Challenges

Gartner Group, 1998

"Manufacturing businesses that make investments in ERP-directed manufacturing applications that fail to provide for accurate real-time information from the process will achieve at least 50% lower ROI on those investments..."

E-Business Challenges

Goldman Sachs, Nov. 12, 1999

“The real-time feature of B2B fosters constant communication between buyers and suppliers, revealing the dynamics of supply and demand in the marketplace…for determining price as well as for managing inventory. The ability to satisfy real-time needs will drive B2B.”

Requirement: Plant Data

Order Status?

Inventory?

Equipment Availability?

Quality?

ERP Needs Plant Data

Initial ERP focus: Financials Now want plant/ERP integration

Plant events impact businessReal-time inventory (else more $$)

ATP

Asset Efficiency - operate to capacityTimely, condition-based maintenance

Cycle Time - reduce order to delivery

E-Business Needs Plant Data

Integrating suppliers & customersEasy to take orders

Harder: Send to plant, get feedback

Greater demands on manufacturingMake faster, less inventory, MTO

Notify Business of problemsReact to unplanned plant events

Execution to plan expected (consistent quality, costs, and schedule)

Supply Chain Impact on Plant

FROM Safety stocks and buffer inventory

Focus on plant throughput, efficiency

Disconnected from customers

Disruptions dealt with in supply chain (plant made what it made)

TOIncreased customer service with reduced global inventory

Plant execution coordinated with enterprise plan

ATP, Make to stock

Reduce mfg. variability

Supply Chain Needs Plant Data

Plant: Weakest link in order fulfillmentBut, highest value-add happens there

Plant performance makes or breaks business

Raw materials product: low cost, fast

No access to data to optimize profits Raw material prices, product demand

Need accurate informationElse, more inventory at both ends of supply chain (i.e., high $$)

Right Product at Right Time

Business Linked to Production

Customer order specification

Delivered product cost

Delivery to schedule

Supply Chain Link

Time to peak sales

Optimized supply chain costs

Highest quality (Brand image)

Business Drivers

Lowest cost

Increased “agility ” (Product availability)

Effective New Product Development

Highest margins

Less variability

Eliminated waste

Production Link

Produce to schedule

Time to first packaged batch in control

Optimized production costs

Real-time plant systems enable the supply chain to respond to the market

Plant/Business Integration

It’s clear integration important, but...

Plants and ERP very differentReal-time vs. transactional

IT folks don’t understand plantsTranslate ERP data to plant variables

Plant systems fragmented

Many ways to connect plant with ERP

Data Requirements

PlantReal-time & historical data at high resolution (1 second)

Zoom to problem areas for analysis

Business (ERP, SCM, etc)Summarized data by major event

Reconciled data, calculations

One set of data for plant and business

Transforming Plant Data

CalculationsBusiness doesn’t want raw data

Example: material produced in batch

Manual correction & audit trail

Interface complicated devicesPlants have significant investments: DCS, PLC, LIMS, SCADA

Data volume, various protocols

Overcome geography & culture

Meeting the Needs

E-Business, ERP, SCMAll about speed and increased use of information

Meeting plant data requirementsNeed flexible product

Reliably collect all plant data

Don’t assume usage requirements

Tools to access information: PI-API, PI-Activeview, ODBC, RDBMS, RLINK, UDA, Sigmafine, etc

Plant/ERP Architecture

SAP R/3(PP-PI, QM, PM)

PI Server or UDA

RLINK• NT • SQL Server• SAP GUI

200+Others,

BES

PI API

RFCs

•What to make (BOM)?•How to make (Recipe)?•When (Schedule)?•Where (Plant)?

PI-ProcessBook for Integration

ERP lacks analysis ERP: order costs, plan vs. actual material usage

Why one order cost more, took longer?

Ex: Plant unable to produce materialDetermine another plant's ability to deliver efficiency, quality, etc, based on historical production info correlated to ERP quality

Use PI Batch toolsERP orders are pointers into PI archive

PI-ProcessBook for Integration

Portability across companyConsistent interface for all plants

Aggregate data in PI for business

Control system independenceManual or automatic process technology

Easy to use At Polimeri, ProcessBook is only interface to R/3 at plant

R/3 - Plant Maintenance

SAP R/3 PMTrack cost of maintenance

HR, spare inventory, schedule

OSI PI and RLINK Improve plant performance based on process conditions

Alarms (temp, vibration, etc), runtime

Launch into SAP from PI-ProcessBook

R/3 - Quality Management

SAP R/3 QMQuality of goods receipt

Quality of goods shipped, C of A

Company test requirements

OSI PI and RLINKResults of quality tests on manufactured products

Integrates quality and process data for plant analysis (viscosity vs. reactor upset)

PI in R/3 Process Cockpit

PI-ActiveView

Polimeri Europa

Make Polyethylene

Problem: Accurate R/3 infoProcess & finished product inventory

Duplicated manual data entry

Solution: OSI PI & RLINKProduction planning, order tracking

Correlate R/3 orders to plant batches & campaigns

Recommendations

Partners that understand plantsComplex infrastructure, data quality, etc

Choose your battles Define business objectives first

Small victories w/ strategic vision

Use flexible infrastructure Some DCS, LIMS vendors assume all plants same

Product vs. projectRLINK

Recommendations

Empower everyone involved Understand how their actions impact business

Each phase of manufacturing process affects product cost & profit

Plant information required to analyze

Integrate various systems

Access to same information Any format user wants, easy to use

Summary

ERP, SCM & E-Business need real-time plant data

Must collect data

Validate the data

Aggregate into Business context

Companies need analysis toolsProduction vs. quality, etc

Easy to use

Questions?