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1 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference eCommerce and eBusiness REQUIRE eManufacturing to keep up!

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Presentation on theme: "1 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference eCommerce and eBusiness REQUIRE eManufacturing to keep up!"— Presentation transcript:

1 1 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference eCommerce and eBusiness REQUIRE eManufacturing to keep up!

2 2 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference ERP, MES, APS, Quality Management: How do these Pieces EFFECTIVELY fit Together?

3 3 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Manufacturing Execution System What are the pieces? ERP Order Management Production Planning Inventory Management Logistics & Distribution Financials / Costing Purchasing MRP Lab & Quality Info Systems Advanced Planning & Scheduling Human Resource Management Process Control Asset Maintenance & Mgmt. Customer Relationship Mgmt. Supply Chain Mgmt. & eCommerce Data Warehouse & Decision Support

4 4 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Mill Management Enterprise & Supply Chain Management Machine & Production Unit Management Process Management Process Control/SPC Production Execution Accounting, Purchasing, MRO, etc. Order to Delivery Processes Mill Operations Mill Management Div.Corp Management Supply Chain Management ERP Manufacturing Execution Advanced Planning & Scheduling Quality Management Credit: AMR Research, Modified with Permission

5 5 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference What is ERP? ERP System Mills Production Demand Results Purchase Requirements Customers Quotes ATP Orders Invoices Product Quality Suppliers Pricing Orders Product Quality Invoices Receipts ATP Front Office Financial Results Customer Service/CRM Procurement Resource Planning

6 6 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference ERP: What is it Really? A Commercial Off The Shelf (COTS) application software product that provides a set of tightly integrated functions necessary to manage a modern manufacturing enterprise. Accounts Receivable Accounts Payable General Ledger Finished Goods Shipping & Logistics WIP Production Planning Production Execution Warehouse Management Maintenance Management MRP QualityCRP Human Resources Payroll Purchasing Order Processing CRM Fixed Assets Consolidation

7 7 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Accounts Receivable Accounts Payable General Ledger Finished Goods Shipping & Logistics WIP Production Planning Production Execution Warehouse Management Maintenance Management MRP QualityCRP Human Resources Payroll Purchasing Order Processing CRM Fixed Assets Consolidation ERP: What’s wrong in Pulp & Paper? Some of the functions provided by the major ERP products are a poor fit for the Pulp & Paper industry in their off-the-shelf form. ? ? ??

8 8 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference ERP Order Services & Planning for Pulp & Paper….not always a good fit... Roll Dimensions Vs. SKU’s Make to order, not stock Calculate Converting Roll Stock Orders Order and/or Shipping Tolerances Unique P&P material flows: Trees & Recycle  Fiber Lines  Reels  Rolls  Converted Products Trim Vs. finite scheduling

9 9 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference ERP to the P&P Manufacturing Floor? “ I gotta key in 12 fields in 3 different windows before you can turn up that set? “…. this system can’t talk to our automated wrap line?” Without an MES system, it’s insanity! “Every roll has to be a unique lot to track Quality data?

10 10 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference There are real ERP benefits for P&P companies however... Integrated financial systems Integrated cost systems Integration of purchasing, maintenance stores, human resources, payroll, etc. Growing functionality in some “ERP II” areas, e.g. Web commerce, customer asset management, etc. Some P&P vertical market momentum but …. Some of the major ERP vendors will overcome critical functional deficits for the P&P market, especially customer order management issues, maybe planning/scheduling/ATP, and in some cases even integration with the shop floor.

11 11 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference What is MES? Plan Distribute Make Source Supply Chain Council SCOR model Manufacturing Execution Systems manage the “Make” part of your Supply Chain

12 12 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Honeywell HiSpec – OptiVISION™ MAJIQ Systems - ELIXIR™ ABB – ABB™ Segment products from smaller companies coming to market Home Grown – Legacy-R-Us™ Manufacturing Execution Systems Pulp & Paper Industry MES Suppliers

13 13 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference The Unique MES Product Evolution in Pulp & Paper Product Tracking Trim Now Order Entry & Shipping Quality Customer Service Converting Warehouse Management Invoicing Raw Material Planning Load Planning Traffic Management ERP Integration

14 14 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference The MES evolution has yielded real benefits for Paper Companies Better productivity & yield improvement Better capacity management Lowered waste Better quality control More efficient logistics, fewer errors Ability to manage customer expectations Complete & functional order to delivery systems

15 15 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference But the ERP & MES products have major overlaps in Pulp & Paper! Winder Management Reel/Roll tracking Lab Data Collection I/F with Gauging Trim Converting Operations Mfg. Production Orders Financials Purchasing Human Resources Maintenance Management Costing Customer Orders Shipping Finished Goods Roll Quality Warehouse Mgmt. Scheduling MRP ERP MES Which vendor(s) should provide these overlapping functions and why?

16 16 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Production Planning & Scheduling Functionality that cuts across existing classes of Packaged products.. MESERP,& Pure APS products

17 17 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Scheduling Resides, Where, Exactly??? Most MES vendors offer block scheduling & trim Most MES vendors offer block scheduling & trim Every ERP System offers some type of scheduling Every ERP System offers some type of scheduling P&P Specific Scheduling & Trim Bolt-on Products P&P Specific Scheduling & Trim Bolt-on Products Other manufacturing scheduling systems not specific to P&P Other manufacturing scheduling systems not specific to P&P

18 18 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Most MES vendors offer block scheduling & trim Most MES vendors offer block scheduling & trim For Pulp & Paper, not just anywhere!!! Every ERP System offers some type of scheduling Every ERP System offers some type of scheduling P&P Specific Scheduling & Trim Bolt-on Products P&P Specific Scheduling & Trim Bolt-on Products Other manufacturing scheduling systems not specific to P&P Other manufacturing scheduling systems not specific to P&P  Can’t correctly model dimensional relationships?  Don’t effectively model the many to one to many relationships?  Don’t manage the key trim issue as an integrated part of the planning process?  Their product development teams don’t understand Pulp & Paper!  Don’t rely on real time production feedback to dynamically adjust the plan? ???

19 19 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference APS benefits are usually a matter of complexity and size Single Mill Multi-Machine Multi-Product Multi-Mill Multi-Machine Multi-Product Rolls + Converting Multi-Mill Single Product Roll Based Single Mill Single Machine Single Product Roll Based Increasing Complexity Increasing Size Greatest Benefit from APS Least Benefit from APS

20 20 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Quality Management functions probably have the least clear cut definition in terms of Package products. ERP MES Process Information Systems Process Information Systems Hybrids, e.g. Mountain Systems LIMS

21 21 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Grade History Process Historian Quality Management Information has multiple sources and multiple consumers... Lab Data Gauging Data Mill &Customer Specs ERP for Customers The things you communicate to them about your product when it ships MES for Production Operations The things that help production decide when product meets specs or needs to be scrapped QM or PIMS for Process Engineering Groups The things that enable them to troubleshoot problems and tackle optimization opportunities

22 22 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference The concept of quality management systems is still evolving in pulp & paper The “Hybrid Systems” vendors have an opportunity to continue to grow their role and the functionality they own The ERP & MES vendors will have to improve the depth and scope of their offerings or risk loosing these functions completely in the paper industry Being able to address the needs of the quality information consumers in the enterprise is the key

23 23 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference What about “Best of Breed”? How do we select the right Package products? How do we select the right Package products? What functionality do we really need? How do we put it all together?

24 24 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference You should identify your opportunities for improvement first..a “vision” for where you want to be Understand and document your current state in terms of business & manufacturing objectives, business processes, manufacturing processes, and systems Develop a vision of your future state that is realistic and achievable

25 25 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Understand the requirements for achieving your future state What functionality is required? Which vendors can meet the real requirements? What are the integration requirements? How will you sustain, grow, and adapt? What realistic paybacks and benefits can the enterprise or mill expect?

26 26 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Develop a REALISTIC Plan for Implementation…. …neither Santa Claus, the Tooth-Fairy, or the Stork will deliver a successful COTS systems integration or implementation project…you have to plan them in detail and then have the right resources to execute the plan plus accountability for the integration

27 27 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Implementation Planning is not enough. A complete lifecycle plan is required for best of breed solutions. New Requirements Enhancements Upgrades Support & Training System Lifecycle

28 28 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Best of Breed Package solutions are achievable and today that is the only way pulp & paper companies can provide robust functionality across the entire “make” part of your supply chain….....and achieve e manufacturing! ERP MES Quality APS Process Information

29 29 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference Questions, comments, electronic copies, etc. Mike McIntosh Mark Cubine


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