PI: Platform for ERP & SCM

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PI Platform for ERP SCM

• Ron Kolz
• ERP Industry Manager

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Agenda

• ERP, SCM and E-Business Challenges for
  Manufacturing
• Need for Real-Time Plant Data
• Recommendations
• Summary
• Questions

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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..."
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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
marketplacefor determining price as well as for
managing inventory. The ability to satisfy
real-time needs will drive B2B.
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Requirement Plant Data
Equipment Availability?
Order Status?
Inventory?
Quality?
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ERP Needs Plant Data

• Initial ERP focus Financials
• Now want plant/ERP integration
• Plant events impact business
• Real-time inventory (else more )
• ATP
• Asset Efficiency - operate to capacity
• Timely, condition-based maintenance
• Cycle Time - reduce order to delivery

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E-Business Needs Plant Data

• Integrating suppliers customers
• Easy to take orders
• Harder Send to plant, get feedback
• Greater demands on manufacturing
• Make faster, less inventory, MTO
• Notify Business of problems
• React to unplanned plant events
• Execution to plan expected (consistent quality,
  costs, and schedule)

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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)

• TO
• Increased customer service with reduced global
  inventory
• Plant execution coordinated with enterprise plan
• ATP, Make to stock
• Reduce mfg. variability

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Supply Chain Needs Plant Data

• Plant Weakest link in order fulfillment
• But, 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 information
• Else, more inventory at both ends of supply chain
  (i.e., high )

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Right Product at Right Time
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Business Linked to Production
Real-time plant systems enable the supply chain
to respond to the market
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Plant/Business Integration

• Its clear integration important, but...
• Plants and ERP very different
• Real-time vs. transactional
• IT folks dont understand plants
• Translate ERP data to plant variables
• Plant systems fragmented
• Many ways to connect plant with ERP

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Data Requirements

• Plant
• Real-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

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Transforming Plant Data

• Calculations
• Business doesnt want raw data
• Example material produced in batch
• Manual correction audit trail
• Interface complicated devices
• Plants have significant investments DCS, PLC,
  LIMS, SCADA
• Data volume, various protocols
• Overcome geography culture

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Meeting the Needs

• E-Business, ERP, SCM
• All about speed and increased use of information
• Meeting plant data requirements
• Need flexible product
• Reliably collect all plant data
• Dont assume usage requirements
• Tools to access information PI-API,
  PI-Activeview, ODBC, RDBMS, RLINK, UDA,
  Sigmafine, etc

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Plant/ERP Architecture

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

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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 material
• Determine another plant's ability to deliver
  efficiency, quality, etc, based on historical
  production info correlated to ERP quality
• Use PI Batch tools
• ERP orders are pointers into PI archive

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PI-ProcessBook for Integration

• Portability across company
• Consistent interface for all plants
• Aggregate data in PI for business
• Control system independence
• Manual or automatic process technology
• Easy to use
• At Polimeri, ProcessBook is only interface to R/3
  at plant

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R/3 - Plant Maintenance

• SAP R/3 PM
• Track 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

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R/3 - Quality Management

• SAP R/3 QM
• Quality of goods receipt
• Quality of goods shipped, C of A
• Company test requirements
• OSI PI and RLINK
• Results of quality tests on manufactured products
• Integrates quality and process data for plant
  analysis (viscosity vs. reactor upset)

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PI in R/3 Process Cockpit
PI-ActiveView
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Polimeri Europa

• Make Polyethylene
• Problem Accurate R/3 info
• Process finished product inventory
• Duplicated manual data entry
• Solution OSI PI RLINK
• Production planning, order tracking
• Correlate R/3 orders to plant batches campaigns

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Recommendations

• Partners that understand plants
• Complex 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. project

RLINK
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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

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Summary

• ERP, SCM E-Business need real-time plant data
• Must collect data
• Validate the data
• Aggregate into Business context
• Companies need analysis tools
• Production vs. quality, etc
• Easy to use

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Questions?
Thank You