Presentation on theme: "Improving Manufacturing Efficiency and Profitability- A case study in Plantelligence."— Presentation transcript:
Improving Manufacturing Efficiency and Profitability- A case study in Plantelligence
Business Analysis Identify Long Chain “Buy/Make/Sell” Business Processes Identify Business Requirements and Metrics 137 Critical Requirements Map Business Requirements to Technology Vendors
Critical Business Requirements
MTO Project Objectives Develop Full Suite of Integrated Manufacturing Business Processes (MES) Integrate Long Chain Business Processes that Encompass SAP, MES, and DCS Develop a Standardized Configuration that enables Replication of Best Business Practices Determine Value of MES Integration
Fisher Provox Engineering Workflow Process Simulation Planning Production Transactions Balance Models Process History Data Validation Material Balance Planned vs. Actual Real-time Quality Management Process Analysis Adv. Process Control Process Recipes Batch Record Customer Capability to Promise Collaborative Forecasting Regulatory Controls Process Orders Resource Consumption Invoice Customer MRP SAP Scheduling Operation Directives Order Placement Certificate Of Analysis Order Fulfillment Scope of MTO Project
MTO Project Completion Plantelligence v1.0 was commissioned in May 1999 at Equistar Chemicals’ High Density Polyethylene facility located in Matagorda, Texas. Plantelligence ™ v1.0 was commissioned in May 1999 at Equistar Chemicals’ High Density Polyethylene facility located in Matagorda, Texas.
Benefits Analysis EVA Pre-TaxOperatingIncomeNetOperatingMargin Average Sales Price Feedstock Cost Variable Cost Total Production Fixed Cost Capital Cost (+) (-) (x) (-)
Plantelligence Value Creation Annual Pre-Tax Operating Income
Value Creation - Production Improved troubleshooting capabilities leading to faster root cause identification and elimination.
Value Creation - Average Sales Price Increased margins due to accurate product costs improving scheduling.
Value Creation - Variable Cost Establishing and daily monitoring of Real Time KPIs.
Value Creation - Feedstock Rapid identification of raw material loss sources.
Value Creation - Fixed Costs Automation of work processes.
Example Manufacturing Process - Today Business Management Business Staff Plant Management Operations Data manipulation Data validation Data entry Shift logs and morning report, includes production, quality, safety and environmental data No daily economic data Develops standard costs Costs reported on a monthly basis Daily inventory update Monthly reconciled consumption, production and cost reports ERPERP Advanced Process Control Data Historian
Manufacturing Vision With Plantelligence Business Management Business Staff Plant Management Operations ERPERP KPI Advanced Process Control Production Accounting Data Historian Production Management ERP Integration Business Process Integration Business Agility Improved decision making with more timely and accurate information Actual consumption on a daily basis by product batch Automatic classification to the highest margin product Alarming and prompting for assignable cause Batch records that include process variables, lab data, batch number, rail car number, and other relevant business data Accurate decisions based on validated real-time information Automatic production reporting Greater visibility of work in progress (for CTP) Actual consumptions for MRP and product costing (for PTP) Operational benchmarking and institutionalization of best practices - Process Excellence Sustainer Performance against benchmark (for KPI’s) Customer technical support (for CRM) Facilitate alignment of plant teams for improvement opportunities Integration Capabilities Plant Performance Real-time response to operational variability due to more timely, accurate and contextual information