1. Improving Manufacturing Efficiency and Profitability- A case study in Plantelligence

2. Business Analysis
Identify Long Chain “Buy/Make/Sell” Business Processes
Identify Business Requirements and Metrics
137 Critical Requirements
Map Business Requirements to Technology Vendors

3. Critical Business Requirements

4. 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

5. Scope of MTO Project Customer SAP Fisher Provox
Collaborative Forecasting
Capability to Promise
Planning
Order
Fulfillment
Customer
Scheduling
Data Validation
Material
Balance
Order
Placement
Operation
Directives
Balance Models
Production Transactions
Process Recipes
Batch
Record
Planned vs.
Actual
Certificate
Of Analysis
Adv. Process
Control
Process
History
Process
Analysis
Real-time Quality Management
Process
Simulation
Process
Orders
MRP
Regulatory Controls
SAP
Invoice Customer
Resource
Consumption
Engineering
Workflow
Fisher Provox

6. MTO Project Completion
Plantelligence ™ v1.0 was commissioned in May 1999 at Equistar Chemicals’ High Density Polyethylene facility located in Matagorda, Texas.

7. Benefits Analysis Average Sales Price Feedstock Cost Pre-Tax Operating
(+)
Average Sales Price
(-)
Feedstock Cost
Pre-Tax
Operating
Income
Net
Operating
Margin
EVA
(-)
(-)
Variable Cost
(-)
(x)
Total Production
Capital Cost
(-)
Fixed Cost

8. Annual Pre-Tax Operating Income
Plantelligence Value Creation
Annual Pre-Tax Operating Income

9. Value Creation - Production
Improved troubleshooting capabilities leading to faster root cause identification
and elimination.

10. Increased margins due to accurate product costs improving scheduling.
Value Creation - Average Sales Price
Increased margins due to accurate product costs improving scheduling.

11. Establishing and daily monitoring of Real Time KPIs.
Value Creation - Variable Cost
Establishing and daily monitoring of Real Time KPIs.

12. Rapid identification of raw material loss sources.
Value Creation - Feedstock
Rapid identification of raw material loss sources.

13. Automation of work processes.
Value Creation - Fixed Costs
Automation of work processes.

14. Example Manufacturing Process - Today
Daily inventory update
Monthly reconciled consumption, production and cost reports
Business Management
E R P
Develops standard costs
Business Staff
No daily economic data
Costs reported on a monthly basis
Plant Management
Shift logs and morning report, includes production, quality, safety and environmental data
Advanced Process Control
Data Historian
Data manipulation Data validation Data entry
Operations

15. Manufacturing Vision With Plantelligence
Business Management
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
Accurate decisions based on validated real-time information
E R P
Business Agility Improved decision making with more timely and accurate information
Business Staff
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
Plant Performance Real-time response to operational variability due to more timely, accurate and contextual information
Plant Management
Production Management
KPI
Production Accounting
Operations
ERP Integration
Advanced Process Control
KPI
Business Process Integration
Data Historian

17. Onward to Version 2.0