CPM and Operations Management “Manufacturers Plant Software – Need Now More Than Ever” ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010 in Orlando, FL. Operations Management/MES Trends 1. Deals Driven Top-Down • Governance • Process Improvements • Manufacturing Excellence • Visibility, End-to-End Performance 2. Business Decision to Invest in Plant IT • Ops Platform • Legacy replacement • Needed for responsiveness, flexibility, quality, etc. 3. Integration with PLM Needed • Customer-driven, not industry hype • No standards means implementation cost 4. Sustainable Manufacturing Dawning • Energy Management • Carbon tracking, accountability, compliance • Integrated, Flexible Packaging Management 5. Cloud Computing/Services/SaaS on horizon

1. CPM and OperationsCPM and OperationsCPM and Operations
Management
“Manufacturers Need Plant Software Now –
CPM and Operations
Management
“Manufacturers Need Plant Software Now –Manufacturers Need Plant Software Now
More Than Ever”
Manufacturers Need Plant Software Now
More Than Ever”
February 9, 2010
Greg Gorbach
Vice President
ARC Advisory Group
ggorbach@arcweb.com

2. Today’s Business Environment
Makes Innovation and Responsiveness A Necessity
Today’s Business Environment
Makes Innovation and Responsiveness A Necessity
A Turbulent Marketplace:
 Global Competition
Impact on Production:
• Re-tool for new products Global Competition
 Customers have many alternatives
 Price pressure
 More products and variations needed
p
• Rapid Introduction of New
Production Processes
• More Automation
• More Plant Software
• Re tool to Reduce Energy & More product info: Traceability,
Pedigree, Carbon footprint, etc.
 Consistently high quality is critical
 Fast turnaround
• Re-tool to Reduce Energy &
Emissions
• Re-Tool for Green Packaging
• Re-tool for more flexibility
 Complex delivery terms and schedule
 Green
 Increasing Costs
 Energy Energy
 Natural resources
 Regulatory Pressure
 Growing Climate Change Pressure
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 Other Environmental/Safety

3. The Manufacturing Balance Has Changed
Plant IT is Necessary and Cost-Effective
The Manufacturing Balance Has Changed
Plant IT is Necessary and Cost-Effective
$$$
YESTERDAY:
 Cheap Energy
 Cheap Water
 Cheap Waste
 ‘Free’ Emissions  Expensive Controls &
YESTERDAY:
 Energy Cost Swings
 Cheap Controls &
Automation Technology
 Cheap Software and IT
TODAY:
ee ss o s
 Predictable
Raw Materials
 Available Talent Pool
pe s e Co o s &
Automation Technology
 Expensive Software and IT
 Water Cost Rising
 Expensive Waste
 Expensive Emissions
 Unpredictable Raw Materials
 Limited Talent Pool Manufacturing Software and
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Limited Talent Pool Manufacturing Software and
Automation are Essential Tools
for Compliance and Cost Control

4. Manufacturing Performance Pillars
3 Strategies for a Turbulent Marketplace
Manufacturing Performance Pillars
3 Strategies for a Turbulent Marketplace
Manufacturing Business Performance
e
on
&
e
Execution Innovation Compliance
E ti
gperating
cellence
ynamic
eCreati
ernance
mpliance
•Execution –
Plant, Enterprise, SC
•Enterprise Visibility
& Control
•Quality
•Efficiency & Cost
•Collaboration
•Business Innovation
•Product Innovation
•REACH,
21CFR, etc.
•Emissions Mgt,
Carbon
Op
Exc
Dy
Value
Gove
Com
Control
•Flexibility
•Energy, Resource
Management
•Mfg Process
Innovation
Tracking
Plant Software is a Critical Tool for Achieving
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Plant Software is a Critical Tool for Achieving
Enterprise Performance

5. Operations Management/MES TrendsOperations Management/MES Trends
1. Deals Driven Top-Down
• Governance
P I• Process Improvements
• Manufacturing Excellence
• Visibility, End-to-End Performance
2 Business Decision to Invest in Plant IT2. Business Decision to Invest in Plant IT
• Ops Platform
• Legacy replacement
• Needed for responsiveness flexibility quality etc• Needed for responsiveness, flexibility, quality, etc.
3. Integration with PLM Needed
• Customer-driven, not industry hype
• No standards means implementation costNo standards means implementation cost
4. Sustainable Manufacturing Dawning
• Energy Management
• Carbon tracking, accountability, compliance
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Carbon tracking, accountability, compliance
• Integrated, Flexible Packaging Management
5. Cloud Computing/Services/SaaS on horizon

6. Four Disciplines of CMMFour Disciplines of CMM
Supply Chain Product
Plant & Equipment Operations
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7. Operations Management and CMMOperations Management and CMM
Operations
Management
Automation
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8. Operations ManagementOperations Management
O ti M tOperations Management
Production Business Regulatory
Management Integration
g y
Compliance
Automation
& Controls
Maintenance
Management
Energy
Management
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9. Manufacturers’ Needs Extend Well Beyond
Traditional MES Applications
Manufacturers’ Needs Extend Well Beyond
Traditional MES ApplicationsnctionalityreasingFun
MOM
Incr
MES
CPM
Performance
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Enterprise &
Business Network
Line/Plant

10. What’s Needed?
A Holistic IT Approach to Managing Operations
What’s Needed?
A Holistic IT Approach to Managing Operationspp g g ppp g g p
Operations Management =
Modern Platform
Broad ConnectivityBroad Connectivity
& Synchronization
Comprehensive
Application Suite
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Source: ARC Advisory Group

11. MOM PlatformMOM Platform
Enterprise Technology
CRMSCM
FIN
ERP EAM
Content
Enterprise g
Platform
Custom Integration
Enterprise Apps Platform
Custom Integration
Data WMS
Operations Apps
Platform
PDM
EquipmentDrawings
Eng. & Design Apps
Platform
Operations
PAM
LIMS
CPM/Automation
Data
TMS
Equipment
PDM
P&IDs
Models
Equipment
Specs
Drawings
Technology
PlatformEng & Design
Technology
Platform
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Operations PlatformEng & Design Platform

12. Operations Management Systems
Global Perspective
Operations Management Systems
Global Perspectivepp
Enterprise IT S/W Infrastructure
Operations IT S/W Infrastructurep /
Gl b l B i N d
•Different Automation Systems
•Different ‘MES’ systems
•Different Automation Systems
•Different Software Systems
Global Business Needs:
• Inventory visibility
• Compare plants
• Balance production
• Standardization
• Best Practices
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• Best Practices
• Carbon compliance
• S/W maintenance & rollout
• etc

13. MOM Connectivity
Required for Performance
MOM Connectivity
Required for Performanceq o oq o o
S h i i
Enterprise
Synchronization
of Manufacturing with other entities
Orchestration
f B i P
Operations
Connects
Product
Support
Design &
Engineering
of Business Processes
Response
to dynamic demands
with:
Operations
Supply
Collaboration
among all required parties
AlignmentOperations
Controls &
Equipment
Chain &
External
Operations
Source: ARC Advisory Group
of goals throughout the Enterprise
Visibility
of Manufacturing Information
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Source: ARC Advisory Group

14. MOM Functions/Processes
Start With Detailed, Industry-Specific Functionality
MOM Functions/Processes
Start With Detailed, Industry-Specific Functionality
•Schedule
•ProcessesPlan Production
Processes Examples
Processes
•Data and Test Needs
Plan Production
•Enforce Processes
•Guide Operators
•Collect Data
Execute Production
•WIP Tracking•WIP Tracking
•Electronic History
•Traceability & Genealogy
Track Product Data
•Role-based Views
•Drill-down & Analytics
•Event-triggered Notification
Inform & Analyze
•CAPA
•NCM
•Supplier Quality
Enforce Quality
•WMS
•Line-sideMove & Store Inventory •RFID
Move & Store Inventory
•Maintenance & Repair
•Work Orders
•Synchronize w/Operations
Manage Assets
•RMA
S d h O
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•MRO
•Recovery & Recycling
Support Product thru EOL
… Then Configure to Your Situation

15. Operations Management Systems
CMM Map
Operations Management Systems
CMM Map
B siness
Inbound Doc
CRMMDMERP etc
pp
Business
Systems
Supply Chain
Systems
nd
Mgt CRM
SCP
MDMERP etc.
Enterprise IT S/W Infrastructure
Operations IT S/W Infrastructure
ng,Outboun
Systems
etc. SRM
p /
QMS
LEAN
etc.
EAM
(MES, EMI, SPC,
Historian, CAPA,
Recipe Mgt, etc.)
CPM
Design &
Shippin
SC
Operations
Management
Systems
WMS
Design &
Engineering
Systems
Control and
TMSPLM EH&S etc.PAM LIMSRPO
HMI
MPM
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Control and
Automation
Systems
PLC DCS etc.CNC
Plant Applications

16. Sustainability in the Plant
MOM Systems Improve Performance to Sustainability Targets
Sustainability in the Plant
MOM Systems Improve Performance to Sustainability Targets
Business
Increasing need for energy efficiency, emissions
ARC CMM Model
FIN
ERP
HR
g gy y,
monitoring, and regulatory tracking…
requires new functionality, enhanced visibility and
planning, and greater collaboration in and with
Manufacturing Operations
CustomersSuppliers
CRMSCM
Manufacturing Operations
TMS
Enterprise InfrastructurePLM •Production Execution
•Detail Scheduling
•Energy Management
•Water Management
E i t &
Water Management
•Waste Management
•Compliance Assurance
•Production Efficiency
•Asset Energy Monitoring
& Maintenance
Operations Mgt
Systems
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Equipment &
Automation
Production
•Carbon Tracking
•Process Control
•etc

17. MOM Purchase CriteriaMOM Purchase Criteria
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18. MOM Purchase Criteria – Product FitMOM Purchase Criteria – Product Fit
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19. Thank YouThank You
For more information, contact the author at
ggorbach@arcweb.com or visit our web pages at
www arcweb com
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www.arcweb.com