1. Copyright © 2008 OMAC. All rights reserved. Challenges of Implementing a World Class Packaging Operation November 11, 2008 Hosted by: Rick VanDyke – Frito Lay Dave Latimer – P&G Damian Stahl - Polytron

2. 2 Copyright © 2008 OMAC. All rights reserved. World Class - End User Performance Criteria Industry AverageWorld Class Performance Operational simplificationIndividual machine control Minimum touch line control Increased packing system flexibilityFew products Many products Adaptable to new products Increased manufacturing reliability (OEE)50 - 60%80 - 90% Increased Capacity Utilization30 - 40%70 - 80% Reduced Inventory> 15 Days< 10 Days Quality SystemLimited continuous improvement Operational excellence though effective continuous improvement Note: Data Based on ARC Survey

3. 3 Copyright © 2008 OMAC. All rights reserved. Steps to Deliver World Class Packaging 1.Develop the operational vision with a cross functional team 2.Develop the high level technical approach 3.Develop equipment and system specifications 4.Monitor equipment design process and perform factory acceptance tests 5.Integrate packaging units and operational systems

4. 4 Copyright © 2008 OMAC. All rights reserved. Steps to Deliver World Class Packaging 6.Validate automation integration at each level in phases: 1.Equipment and Line HMI and Alarming Systems 2.OEE Status and Reporting 3.Quality Systems 4.Production Scheduling Systems 5.Production Management Systems (Inventories and Materials) 6.Automatic Business System Integration 7.Continuous improvement activities

5. 5 Copyright © 2008 OMAC. All rights reserved. Obtaining the Right Packaging Equipment Develop a performance based specification tied to the operational vision Develop a technical specification that defines: –the level of automation and integration –requires and leverages existing automation standards: (i.e. PackConnect, PackML and PackSoft) Identify suppliers that have: –breadth of industry application experience –new mechatronic capabilities Quickly identify R&D activities/approaches –i.e. follow strict “proof of principal” methodologies to manage risk

6. 6 Copyright © 2008 OMAC. All rights reserved. Obtaining the Right Packaging Equipment Have a pre-defined process for supplier selections –address all aspects of the world class operational vision (i.e. Lifecycle Costs, Performance (OEE), Flexibility, Experience, Capability, Technology Transfer and Training, Local Support, etc.) Partner with the selected suppliers –monitor and manage through the equipment design process Execute a thorough factory acceptance test –verify all automation and integration requirements –as many of the performance requirements as possible Conduct a final site acceptance test to verify all performance criteria

7. 7 Copyright © 2008 OMAC. All rights reserved. Integrating the Pieces of Packaging Together Plant Local Area Network (Historian) Packaging Line May or may not be required. S95 Compliant MES/Historian

8. 8 Copyright © 2008 OMAC. All rights reserved. What is important? Pre-Defined Expectations (Drives Plant Performance) –What should be available from the machines? –When should it be available? –Who needs the information? –How should the information it be formatted? Consistent Engineering (Minimizes Implementation Costs) –Consistent Look and Feel of the Human Machine Interfaces (Pack ML State Model) –Consistent Mode and States of Machines (Pack ML) –Consistent PLC Programming Structure –Consistent Tag Names (Pack Tags) Integrating the Pieces of Packaging Together

9. 9 Copyright © 2008 OMAC. All rights reserved. Operational Business Systems Considerations System Control Production Work Process Inbound LogisticsProcess Pkg//WrhsOutbound Logistics Line Control Integrated Line & Systems HMI Line Networks PLC, DCS, Batch Systems Motion Control Systems Sensors, Actuators Machine Vision Integrated Safety Field Bus Communication ERP Enterprise Manufacturing and Supply Chain Optimization Totally Integrated Automation Production Schedule Material Management Production Performance Personnel Mgt. Asset Performance (OEE) Plant Information Management Product Specification Mgt. Quality Data Mgt. Integrated Real Time Performance Driven Supply Chain Start from the bottom and work your way up Focus on high performance with ease & actionable information

10. 10 Copyright © 2008 OMAC. All rights reserved. For Additional Information OMAC Packaging workgroup booth at C-65, Grand Concourse OPW General User Meeting – Nov. 11 th, 3-4:30PM South Building, Room S-103D OMAC Packaging Workgroup website at www.omac.org/packaging www.omac.org/packaging Get a copy of the S-88 technical report at www.isa.orgwww.isa.org Get a copy of ISA-TR88.00.02-2008, Machine and Unit States: An Implementation Example of ISA-88 at www.isa.org www.isa.org Connect-and-Pack tutorial at the OMAC/WBF Conference in May