PI: Platform for ERP & SCM Ron Kolz ERP Industry Manager

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

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..."

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 marketplace…for determining price as well as for managing inventory. The ability to satisfy real-time needs will drive B2B.”

Requirement: Plant Data Order Status? Inventory? Equipment Availability? Quality?

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

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)

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

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 $$)

Right Product at Right Time

Business Linked to Production Real-time plant systems enable the supply chain to respond to the market

Plant/Business Integration It’s clear integration important, but... Plants and ERP very different Real-time vs. transactional IT folks don’t understand plants Translate ERP data to plant variables Plant systems fragmented Many ways to connect plant with ERP

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

Transforming Plant Data Calculations Business doesn’t 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

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 Don’t assume usage requirements Tools to access information: PI-API, PI- Activeview, ODBC, RDBMS, RLINK, UDA, Sigmafine, etc

Plant/ERP Architecture What to make (BOM)? How to make (Recipe)? When (Schedule)? Where (Plant)?

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

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

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

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)

PI in R/3 Process Cockpit PI-ActiveView

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

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

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

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

Questions?