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The Next Wave of Manufacturing Relies
on Plant Operations Transformation
To enable deeply ingrained agility, predictability, responsiveness and
efficiency, manufacturers must think holistically about their factories and
develop integrated and harmonized capabilities that connect the end-to-
end supply chain with a new product introduction value stream.
Executive Summary
Today’s manufacturers are at an inflection point.
On the one hand, they need to become more agile
and respond more quickly to changing customer
demand amid increased supply chain complexity.
On the other hand, they need to embrace new
technologies and process/product innovation
to continuously adapt to competitive pressures,
worldwide.
Plant operations stands at the center of this
strategic change and is a critical lever for address-
ing growing business-technology challenges.
While plants must collaborate seamlessly and
efficiently with other facilities, as well as supply
chain and innovation partners, many manufactur-
ers still operate as disconnected plants, with non-
harmonized operations management processes,
non-standardized operations technology and
legacy applications. Moreover, they have limited
appetite and budget to adopt new technologies.
The situation calls for a comprehensive approach
to transforming plant operations management
to enable ingrained agility, predictability, respon-
siveness and efficiency.
This white paper describes our approach to
overcoming these issues, built on our ONEPlant
transformation framework and services. It
describes a well-defined maturity framework to
draw a blueprint, methodologies to implement
strategic actions, and end-to-end IT services that
can help manufacturers transform their plant
operations incrementally and cost-effectively.
Today’s Environment: Challenges
and Opportunities
Today’s global economy presents manufactur-
ers with a host of new challenges, as well as
opportunities. Complex value chains, continuing
economic uncertainty and changing customer
demographics are forcing manufacturers to con-
tinuously adapt to dynamic business conditions.
Meanwhile, the next industry revolution is taking
hold (i.e., Industry 4.01
), as new technologies and
process innovations present opportunities for
manufacturers to take advantage of the changing
environment.
Challenges for Manufacturers
Manufacturers must simultaneously contend with
the changing nature of the manufacturing model
cognizant 20-20 insights | february 2015
• Cognizant 20-20 Insights
cognizant 20-20 insights 2
by applying new technologies and respond to
customers’ highly demanding fulfillment targets.
At their core, these challenges include:
•	Addressing demanding customers by creating
agile fulfillment capabilities.
•	Remaining relevant amid market volatility.
•	Meeting demand for more personalized
products by bringing customer intelligence to
the production floor, adding a higher level of
complexity to the configuration and fulfillment
cycle.
•	Attracting employees amid radical changes in
workforce demographics (i.e., millennials and
employees with millennial mindsets).
•	Understanding complex business models (i.e., a
complex supply chain, contract manufacturing,
global operations, volatile demands and higher
product variants) that can reduce efficiency.
•	Staying on top of increased merger and acquisi-
tion activity, adding heterogeneity to business
processes as well as the technology stack.
•	Driving real-time and predictive intelligence
from the huge data sets that are collected
throughout the supply chain, including
production processes (i.e., plants).
To address these challenges, manufacturers must
re-examine their operating models and priorities
related to sourcing materials, production, fulfill-
ment, new product introduction, supply chain
efficiency, resource utilization, etc.
Emerging Opportunities
Manufacturing has generally been seen as a
laggard in adopting new technology, but the
emergence of social, mobile, analytics and cloud
technologies (the SMAC Stack™) and the Internet
of Things (IoT) is opening new vistas for manufac-
turers to explore.
The SMAC Stack provides the technological
underpinning to help manufacturers support
more intuitive, engaging, personalized and con-
textually-aware ways to design, build and deliver
products and services to customers. For example,
mobile technologies can greatly improve the pro-
ductivity of maintenance operators by removing
paper-based inspection sheets and allowing
them to view equipment health history and enter
condition information while on maintenance
rounds. Mobility also helps quality inspectors
and warehouse operators perform transactions
on-the-go by enabling real-time access to busi-
ness-critical information.2
In today’s digitally connected world, no product
or offering is complete without a connection to
the SMAC Stack or the IoT. The rapidly changing
mobile landscape and onslaught of IP-addressable
and IP-aware devices can enable manufacturers
to gather accurate information, turn processing
speed into a competitive advantage, and capitalize
on the intelligence gained from every interaction
and transaction across the value chain.
IT/OT Convergence
Amid the rapid advancement in digital technolo-
gies, underlying operational technologies (OT) on
the plant floor have converged with enterprise
information systems, forming one technical archi-
tecture that spans the manufacturing enterprise.3
As these technologies blur, the convergence of IT/
OT will help manufacturers significantly reduce
their technology footprints and improve the
overall information flow between the plant and
the rest of the enterprise, thereby facilitating new
operational efficiencies.
In a perfect world, manufacturers would tightly
align enterprise and operational systems to blend
corporate run-the-business data with process
information. For example, process data from
legacy systems would be more tightly integrated
not only with plant analytics but also with
enterprise analytics. Better alignment between IT
and OT systems would also consolidate enterprise
architecture, thereby helping manufacturers
provide event-based capabilities to more effec-
tively respond to adverse events within the plant
or across the supply chain.
Industry 4.0 and the Internet of Things
With the ongoing Industry 4.0 revolution, the
boundaries between the physical and virtual
worlds will increasingly cease to exist, particu-
larly as IP-addressable/aware devices define the
connected, smart factory. New operating models
will emerge as physical material and information
merge into one, since the digital bits and bytes
contained in both will be tightly linked as more
and more digital data is embedded into the supply
chain.
Manufacturers will have more SMAC technolo-
gies on hand to power smart sensors, smart
machines and smart wearables, which will take
cognizant 20-20 insights 3
manufacturing to the next level of agility and
productivity. Smart sensors with IoT platforms
will generate numerous “Code Halos,” or the
digital code surrounding people, process, orga-
nizations and devices, throughout the manufac-
turing space.3
A plant Code Halo™, for instance,
could be harnessed by using big data analytics to
obtain real-time predictive and actionable intel-
ligence for the plant. Actionable machine (or
device) Code Halos could be built by collecting
process data, machine data and alarm logs during
machine failure conditions.
Using these data collections, manufacturers
could detect failure patterns to warn mainte-
nance operators about a possible breakdown well
ahead of its occurrence. Such predictive alarms
and information can help save costly breakdowns.
Similarly, batch production information — with
detailed meta data on process conditions — can
help create product Code Halos that, in turn, can
help manufacturers analyze and improve batch
yields.
Factories (and small plants) are already emerging
in which all employees — from supervisors to plant
managers to senior leaders — share real-time
information and access plant analytics to improve
operational efficiency and productivity. As a
result, essential elements of manufacturing are
converging like never before, creating what we
call “informed manufacturing.”4
Imperatives for Plants
As the focus on agility, responsiveness and per-
sonalized manufacturing increases, plants need
to prioritize their efforts to seamlessly and effi-
ciently collaborate with other manufacturing
operations — from contractor manufacturers,
through supply chain and innovation partners.
This necessitates plants to work as a “one-
plant” ecosystem to achieve plant operations
management that is more integrated, predictive,
lean (efficient), agile (adaptive and flexible) and
enabled by new technology.
Indeed, according to IDC,5
30% of manufacturers
by 2016 will invest substantially in increasing the
visibility and analysis of information exchange
and business processes, both within the company
and with partners. Further, IDC also estimates
that this year, 65% of companies with more than
10 plants will enable the factory floor to make
better decisions through investments in opera-
tional intelligence.
Key capabilities include:
•	Integrated supply chain and innovation capa-
bilities that help to improve agility, reduce
manufacturing and innovation cycle time, and
improve resource utilization.
•	Real-time and predictive capabilities to reduce
response time, improve planning and boost
resource utilization via dynamic planning;
improve visibility; and achieve predictable per-
formance.
•	Collaborative operations management to
improve knowledge-sharing and best practices
within and across the plant.
•	Standardized and future-proofed OT to ratio-
nalize the operations technology footprint and
improve productivity by adopting new tech-
nologies. General Motors already sees Google
Glass technology as a tool to improve assembly
line productivity to deliver real-time images
and videos, as well as on-the-job training/work
instruction.6
Goals include:
•	Higher customer satisfaction by delivering the
right product at the right time and at the right
price.
•	More efficient plant operations by cutting waste
and reducing input material and operations
costs (including energy and utility expenses)
and improving inventory turns.
•	Improved regulatory compliance by adopting
total quality management (TQM) discipline
from design to delivery. This will help to improve
customer satisfaction, as well as reduce overall
manufacturing cycle time.
Current State of Plant Operations
Management
While manufacturers prepare for the connected
enterprise enabled by SMAC and the IoT (and
wearables in particular), many are still struggling
to integrate and harmonize plant operations
with the end-to-end value stream (order-to-cash,
new product introduction, or NPI). According to
Gartner,7
70% of plant floor data is still not used
for enterprise decisions. As a result, many plants
are unable to capitalize on the power of new tech-
nologies.
Manufacturing plants need to be viewed as
strategic investments that help to develop
and expand business. As such, plants need to
operate in sync with the overarching business
vision. Even some manufacturers with high levels
of technology implementations fail to derive
maximum value from their plant investments
because of a plant vision and system integration
that is misaligned with the enterprise.
Existing plants pose unique challenges for
achieving enterprise transformation (see Figure
1). The following scenarios must be addressed
by manufacturers to achieve such business
objectives:
•	Multi-discipline, non-standardized, non-inte-
grated plant operation management processes.
•	Non-integrated processes (within the plant as
well as within the supply chain).
•	Lack of real-time visibility of plant operations
due to sub-optimal plant resource utilization.
•	Challenges in getting end-to-end traceability
(material/process) information.
•	Lower levels of collaboration within the supply
chain and innovation value stream.
•	Legacy systems with disparate application
stacks, leading to greater technology variance
within and across plants. Obsolete technolo-
gies also add to the plant’s operation risk.
•	Lack of a common IT program at a corporate
level. IT strategy is still largely driven by local
plant or enterprise integration needs.
•	Higher risk and substantial time involved in
changing processes/systems at the plant level.
A Comprehensive Plant Operations
Transformation Strategy
Toprepareforthenextwaveofindustryrevolution,
manufacturers will quickly need to close gaps
between plant and enterprise operations, as well
as between operations technologies and new
information technologies. To achieve this, manu-
facturers must adopt a comprehensive approach
to transforming plant operations management.
Most of our leading global manufacturing clients
realize these challenges and have already
initiated a comprehensive approach or are in
the process of adopting one. The aim of such a
program is to harmonize operations management
and operations technology to align the plant(s)
with the enterprise.
Key Considerations
A successful transformation initiative requires
the following:
•	The understanding that transformation is a
journey, not a sprint, that requires buy-in from
all stakeholders (corporate business users,
cognizant 20-20 insights 4
Today’s Manufacturing Enterprise
Floor
Inventory
Customer
Supplier 2
Product Feedback
Product Feedback
Planning
Enterprise
Material Flow
Design
Manual Process
Supplier 1
Maintain
Retire
Feedback
Plant A
Order Dispatching
Production
Maintenance
Warehouse
EHS Plant B
Research &
Development
Idea/
Concept
Validation
Release
Innovation
Source
Scheduling
Scheduling
Schedule &
Master Data
Production
Response
Production
Response
Production
Ecosystem
Schedule &
Master Data
Return
Return
Deliver
Fulfillment
Distribution
Center
Warehouse
WarehouseWarehouse
Contract Manufacturer
Information Flow
Track &
Trace
Manufacturing
Analytics
Process SupervisionProcess Control
Energy &
Utility
Tracking
Process
Analytics,
SPC
Control
Quality &
Compliance
SOP & Product Master
Experiments & ECM
Data
Collection
and
Historians
Figure 1
corporate IT, plant IT, plant users, owners of
various strategic initiatives, such as Lean Six
Sigma, etc.).
•	A phased approach to align plant(s) with the
enterprise vision and a defined roadmap to
reach a future state.
•	The ability to identify strategic actions that
address current plant challenges and align with
the overall vision.
•	And, perhaps most importantly, the wherewith-
al to choose a credible partner that can help in
realizing overall transformation goals.
Cognizant’s ONEPlant Services Help
Transform Plant Operations
Our ONEPlant transformation framework and
services offer a unified approach to transform
plant operations. Importantly, they enable manu-
facturers to achieve an integrated enterprise by
strategically aligning technology, processes and
people toward a common vision and goal (see
Figure 2).
Key components of our ONEPlant services
include:
•	A maturity framework to assess the current
state and define the transformation roadmap.
•	Strategic actions that are part of the trans-
formation road map. These actions focus
on addressing current plant situations, as
described in this document.
•	Technology services and agile methodology to
help transform plant operations management
in alignment with the transformation roadmap.
Plant(s) of the Future
Plants of the future will need to be seamlessly
integrated with the extended supply chain and
innovation cycle, operating with greater agility
and efficiency (see Figure 3, next page). All plants,
including contract manufacturers, will need to
work as a single ecosystem to fulfill customer
demands, thereby improving customer satisfac-
tion across the board. Role-based and secure
plant information/transactions will be available
anytime, anywhere and in real-time, on any device
(mobile, laptop or desktop computer, wearable,
etc.). Plant operations will automatically adjust or
respond to adverse events within the supply chain.
Plant, product and machine Code Halos will aid
in predictive intelligence and drive proactive
actions. As such, new SMAC Stack technologies
will become an integral part of operations tech-
nologies. Experts will be able to remotely work
with floor operators in a collaborative manner to
improve efficiency, with remote experts able to
not only view the real-time health of plants but
also identify machine failure locations through
video and photo sharing.
cognizant 20-20 insights 5
Implementing a ONEPlant Approach
Enterprise Customers
Plant(s)
AlignAlignAliggnednednneed
Visision
Harmoarmoarmmonizedonizennize
Procr cesss
Other
Organizations
Achieving Integrated (ONE) Predictive, Lean, Agile, New
technology & Timely Plant Operation
ollaboCollaboCollaCollaCoollaCCCo ationonooratioorationo oratioonoratioonnoStandaandaanddardizedardizrrdiz
SSysty temm
Plant(s)PPlaPPla )
Warehouse
and Vendors
Figure 2
Maturity Framework
Our proprietary ONEPlant maturity framework
provides a systematic way to define maturity,
along with a specific focus on plant operations
management processes. It can be used to align
vision/KPIs and process capabilities, as well as
define the transformation roadmap.
Process View
Considering various interactions and the impact
of plant operations on the value stream, the
framework focuses on key plant operation
processes that are key to achieving business
objectives. Key processes that ONEPlant
addresses include detailed scheduling, experi-
ments and change management, production
execution, inventory management, quality
management, plant maintenance, energy and
utility management, track and trace, QMS and
compliance, plant performance, EHS, etc.
Figure 4 illustrates the various levels of maturity
and capabilities required at each level.
The ONEPlant maturity framework defines
maturity across five levels, from the initial level,
at which plants are more reactive, to the top level,
cognizant 20-20 insights 6
Tomorrow’s Manufacturing Enterprise
Measuring Process Maturity
Customer
Product Feedback
Product Feedback
Dynamic Planning
Enterprise
Material Flow
Design
Supplier/
VendorVendor
Base
Maintain
Quality
Retire
Feedback
Plant A
MSB
App1 AppN
Plant N
Research &
Development
Idea/
Concept
Validation
Release
Faster
Innovation
Source
Schedule &
Master Data
Production
Response
Ecosystem
Real-time & Dynamic Scheduling
One vision & strategy across the ecosystem
Simplified & harmonized plant operations processes
Standardized operations technology
Deliver
Rapid
Fulfillment
Distribution
Center
Warehouse
MSB
App1 AppN
Warehouse
Information Flow
Contract Manufacturer
Repetitive
Standardized
Orchestrated & Agile
Predictive & Optimizing
Level 1
Functional
Level 5
Predictive & Optimizing
Level 2
Repetitive
Level 3
Standardized
Level 4
Orchestrated & Agile
Plant-wide
Enterprise-wide
Improvement
Align Transform Sustain & ImproveStandardizeACTIONS
MATURITY LEVELS
Standardized processes
and technology with
aligned operations
within plants
Aligned vision with
tactical capabilities
Aligned enterprise and
extended enterprise
with Agile and
collaborative process
Predictive planning and
operations execution with
continuous improvement
efitsRReap benefi
itsReeap bbenefit
sReapp benefits
Vision and strategy updates
Improvementv
Figure 3
Figure 4
cognizant 20-20 insights 7
at which plants are agile and predictive. Progress
toward the highest maturity level typically
happens step-by-step, where at each level, certain
capabilities generate tangible business benefits.
The initial maturity level focuses on improving
efficiency by boosting production yield, produc-
tivity and real-time plant visibility to the planner.
By delivering improved maturity, plants move
toward more flexibility, responsiveness and
predictive planning.
Strategic Actions: Addressing Unique
Plant Challenges
Our ONEPlant roadmap recommends a phased
approach, with strategic actions that align with
the overall vision and simultaneously offer ways
to address existing plant operations challenges.
These include:
•	Simplify and standardize plant operations
management processes. This is one of the
key aspects of transformation and needs to
be aligned with enterprise strategic initiatives
such as Lean Six Sigma, TQM, etc. Individual
plants typically have different ways of handling
planning, execution, production reporting,
performance management, material handling,
quality assurance and control, etc. Moreover,
many plant operations processes span multiple
departments. For example, order execution pro-
cesses typically cut across enterprise planning,
plant production, quality and materials handling
departments. To standardize these process-
es, it is important that multiple stakeholders
from various plants, as well as the corporate
business/IT team, are strategically aligned.
•	Improve user experience. With millennial
workers, organizations need to take a new
look at the user experience with respect to
operations technology. The user interface
should be more personalized and responsive
to the preferences of individual users. Such an
approach is emerging in the SCADA space, as
well as other operations technology environ-
ments (MES, EAM, WMS, LIMS, QMS, EMI, etc.).
•	Standardize operations technology. While
simplifying processes is important, standard-
ization of operations technology (system)
is equally so. Key elements that need to be
considered are clear separation of responsibili-
ties for systems with business capabilities with
minimum overlap, a minimal number of tech-
nologies and interfaces, plant needs for higher
availability, and multiple deployment options
(central vs. local) to address reliability needs.
•	Adopt new technology. New and powerful
technologies, such as mobility, social media, big
data analytics, virtualization, cloud, wearables,
etc., provide real-time actionable intelligence
that can elevate plant operational perfor-
mance by improving flexibility, responsiveness
and quality. Vendors that provide automation
technology to manufacturers already offer
historians, supported with big data technolo-
gies. This can help manufacturing enterprises
analyze long-duration process data with trans-
actional MES/lab data, gaining new process
insights.
•	Integrate processes and enable plants with
manufacturing SOA. Current plants use
multiple systems (including legacy environ-
ments) to achieve various manufacturing
capabilities. While plant transformation and
standardization of operation technology will
reduce the application footprint, plants need
more flexible and faster ways to integrate
disparate and legacy plant systems while the
transformation is in progress. A manufactur-
ing service-oriented architecture (SoA)8
can
help by addressing specific needs for plant
integration. This approach can also enable the
development of cross-platform applications,
improving agility and responsiveness.
•	Enable remote operations management.
Remote operations management for perform-
ing asset diagnostics and abnormal event
analysis can help reduce the overall TCO of
maintaining operations, as well as improve
overall organizational responsiveness.
•	Improve collaboration and best practices uti-
lization. As advancement in each technology/
process increases, it is important to take inputs
from all experts before incorporating best
practices in process improvement. Such collab-
oration can be improved through the adoption
of new technologies. Integrated knowledge
management and remote expert support using
screen-share and camera-share capabilities
offer organizations ways to take collaboration
from concept to reality.
•	Build predictive and real-time operations
intelligence. Creating closed-loop predictive
operations intelligence is one cornerstone
of plant transformation. Harnessing plant,
product and machine Code Halos — and layering
these with predictive intelligence — can help
plants take proactive actions aimed at improv-
ing overall customer satisfaction, efficiency,
agility and responsiveness.
Many of our clients already follow a comprehensive approach
for plant operation transformation, although some are at
the early stages of their transformation journey. Examples
include:
•	The world’s largest research-based pharmaceuticals com-
pany has begun its transformational journey of converg-
ing electronic batch record system, quality management,
inventory management and plant performance, along with
an enterprise SAP initiative. We helped with solution real-
ization and are deploying it across 70-plus sites.
•	A global diversified manufacturer known for its innovative
products across segments is starting its journey of trans-
forming its manufacturing operations management, along
with an SAP initiative. We helped define the operations
management roadmap by blueprinting the production,
quality and inventory processes, with a specific focus on
functional segregation of processes between multiple
systems.
•	One of the world’s leading consumer goods company in
the healthcare space is in the process of enterprise trans-
formation, which is driving change within plant operations
management. We have been engaged in standardization
and solution deployment for QMS and MES systems, with a
focus on compliance management, device history records
and quality management.
Benefits
A structured and comprehensive transformation initiative
typically delivers multiple benefits:
•	With improved maturity, plants will see improvements
in various KPIs, such as manufacturing cycle time, time
to change or experiment with new processes/products,
flexibility for order variations, inventory turns, energy
efficiency, scrap, overall equipment effectiveness, yield
and quality compliance.
•	With a step-by-step approach, the enterprise will see early
benefits due to new business capabilities supported by IT
capabilities.
•	Business will be able to compare multiple plants and
benchmarks in terms of capabilities and KPIs. This will help
improve KPIs, adoption of best practices and collaboration.
•	A framework approach helps to align IT transformation,
informed by a Lean Six Sigma initiative.
•	Simplification and standardization during solution design
and build will help reduce rollout time for solutions within
the enterprise. This, in turn, will help to reduce rollout
costs and enable early business benefits.
•	Operations technology rationalization will help reduce
total cost of ownership by reducing support service costs,
as well as software license costs.
Advancing Plant Operations Transformation
8cognizant 20-20 insights
Cognizant’s Aligned Service Offerings Ready to Deliver Transformation
Align Transformation Sustain & Improve
Level 2
Repetitive
Level 3
Standardized
Standardize
Maturity assessment, vision/KPI alignment and transformation roadmap
MOM / OT product evaluation
OT support
Training & change management
User experience enhancement (UI services)
Level 1
Functional
Level 4
Agile & Orchestrated
Level 5
Predictive & Optimizing
Operations
technology
rationalization
Remote operations diagnostic
IT/OT synergy and
improve cost
Remote operations
management
Solution deployment:
Global rollout & release management
Solution realization:
Design, build, test & pilot
New technology prototype/pilot:
Mobility, wearable, analytics
Plant operations harmonization & blueprinting
Advisory
services
Technology &
integration
services
Operations technology rationalization
Figure 5
End-to-end Services to Transform Plant Operations
Figure 5 details our portfolio of advisory, technology and integration services to advance the transfor-
mation of plant operational management.
Quick Take
cognizant 20-20 insights 9
Footnotes
1	 Industry 4.0 is a project funded by the German government to promote the computerization of the
manufacturing industry, http://www.bmbf.de/de/9072.php.
2	 “How Mobility on the Shop Floor Transforms Manufacturing Operations,” Cognizant Technology
Solutions, August 2013, http://www.cognizant.ch/InsightsWhitepapers/How-Mobility-on-the-Shop-Floor-
Transforms-Operations.pdf.
3	 For more on Code Halos, read “Code Rules: A Playbook for Managing at the Crossroads,” Cognizant
Technology Solutions, June 2013, http://www.cognizant.com/Futureofwork/Documents/code-rules.pdf,
and the book, Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the
Rules of Business, by Malcolm Frank, Paul Roehrig and Ben Pring, published by John Wiley & Sons, April
2014, http://www.wiley.com/WileyCDA/WileyTitle/productCd-1118862074.html.
4	 See “Informed Manufacturing: the Next Industrial Revolution,” Cognizant Technology Solutions, April
2014, http://www.cognizant.com/InsightsWhitepapers/Informed-Manufacturing-The-Next-Industrial-Rev-
olution.pdf and “Informed Manufacturing: Reaching for New Horizons,” Cognizant Technology Solutions,
September 2014, http://www.cognizant.com/InsightsWhitepapers/informed-manufacturing-reaching-for-
new-horizons-codex980.pdf.
5	 “IDC FutureScape: Worldwide Manufacturing 2015 Predictions,” IDC, December 2014,
http://www.idc.com/getdoc.jsp?containerId=IDC_P32121.
6	 Jeff Bennett, “GM Takes Google Glass on a Test Drive,” Wall Street Journal, Aug. 5, 2014,
http://blogs.wsj.com/digits/2014/08/05/gm-takes-google-glass-on-a-test-drive/.
7	 “Has MES Come of Age,” Gartner/MESA joint presentation, December 2014,
https://services.mesa.org/ResourceLibrary/ShowResource/47eff093-b4f9-417e-9aa1-1ddbf3e82757.
8	 “MESA White Paper 43: Applying Global MOM Systems in a Manufacturing 2.0 Approach,”
MESA International, April 2013, https://services.mesa.org/ResourceLibrary/ShowResource/f00b70ce-
5637-4027-a14d-4bf7c0209eee.
These services are further supported by our
solution accelerators and tools/templates,
including:
•	Cognizant ONEPlant framework.
•	FloorTrack: Mobility for Shopfloor.
•	APEx: Remote asset monitoring.
•	PACE: Agile project execution framework.
•	Process templates and tools aligned with
various industry standards (ISA 95, ISA 88,
PAS 55, ISO 22400, MIMOSA, SCOR, APQC,
etc.).
Looking Ahead
Amid a new era of growth, manufacturing has
a crucial role to play in moving both developed
and developing economies forward. In this new
era of manufacturing, businesses need to realign
their strategy to address the challenges of agility,
efficiency and volatility. We believe that to partici-
pate in a new growth phase, manufacturers must
align their information and operations architec-
tures and processes from the plant floor to the
top floor. Powerful new technologies such as the
SMAC Stack and IoT, powered by proactive Code
Halo thinking, will play a key role in this strategic
realignment.
Accepting the need for a holistic approach and
transformation of plant operations management
is a critical first step in enabling this evolution.
Here are some additional steps that manufactur-
ers can take to better prepare themselves for
plant operations transformation:
•	Align and establish support from stakehold-
ers for the transformation program, both
from the business (corporate business owners
as well as plant operations owners) and IT.
•	Establish an understanding of the current
state of plant operations management and
set common goals for the desired future state.
•	Develop a PMO and core team to manage the
transformation program.
Cognizant ONEPlant helps manufacturers prepare
and transform plant operations management
across the enterprise, adapt to new-age manu-
facturing and gain competitive advantage in the
global manufacturing industry.
About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business
process outsourcing services, dedicated to helping the world’s leading companies build stronger business-
es. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction,
technology innovation, deep industry and business process expertise, and a global, collaborative work-
force that embodies the future of work. With over 75 development and delivery centers worldwide and
approximately 211,500 employees as of December 31, 2014, Cognizant is a member of the NASDAQ-100,
the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and
fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
World Headquarters
500 Frank W. Burr Blvd.
Teaneck, NJ 07666 USA
Phone: +1 201 801 0233
Fax: +1 201 801 0243
Toll Free: +1 888 937 3277
Email: inquiry@cognizant.com
European Headquarters
1 Kingdom Street
Paddington Central
London W2 6BD
Phone: +44 (0) 20 7297 7600
Fax: +44 (0) 20 7121 0102
Email: infouk@cognizant.com
India Operations Headquarters
#5/535, Old Mahabalipuram Road
Okkiyam Pettai, Thoraipakkam
Chennai, 600 096 India
Phone: +91 (0) 44 4209 6000
Fax: +91 (0) 44 4209 6060
Email: inquiryindia@cognizant.com
­­© Copyright 2015, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is
subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.
About the Authors
Pawan Kale is Principal Architect at Cognizant’s Engineering & Manufacturing Solutions Practice. He has
over 17 years of experience as a solution architect, with a specific focus on transforming manufacturing
operations management through simplification and digitization using various systems such as plant
integration systems, historians for data collection, MES, EMI, EAM, QMS and enterprise integration using
the manufacturing service bus. Pawan has a degree in chemical engineering from University Institute of
Chemical Technology, Mumbai. He can be reached at Pawan.Kale@cognizant.com.
Puneet Raitani is a Consulting Manager within Cognizant’s Engineering & Manufacturing Solutions
Practice, with more than five years in the practice. Puneet has an engineering degree in mechanical
engineering and an M.B.A. in marketing and systems from T.A. Pai Management Institute, Manipal,
Karnataka. He can be reached at Puneet.Raitani@cognizant.com.
V. Rajagopal is a Manager, Business Development, within the Cognizant Engineering & Manufacturing
Solutions Practice, with more than five years of experience. He has an engineering degree in mechanical
engineering and an M.B.A in marketing and systems from ICFAI Business School, Hyderabad. He can be
reached at Rajagopal.V@cognizant.com.
Acknowledgments
The authors would like to thank the following Cognizant associates within the Engineering & Manufac-
turing Business Unit for their contributions to this white paper: Frank Antonysamy, Senior Director;
Phani Bhushan Sistu, Senior Director; Ratna Sarma Kolachana, Senior Director; Rajesh Sahasrabudhe,
Director.
Note: Code Halo, SMAC Stack, FloorTrack and ONEPlant are pending trademarks of Cognizant
Technology Solutions.

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The Next Wave of Manufacturing Relies on Plant Operations Transformation

  • 1. The Next Wave of Manufacturing Relies on Plant Operations Transformation To enable deeply ingrained agility, predictability, responsiveness and efficiency, manufacturers must think holistically about their factories and develop integrated and harmonized capabilities that connect the end-to- end supply chain with a new product introduction value stream. Executive Summary Today’s manufacturers are at an inflection point. On the one hand, they need to become more agile and respond more quickly to changing customer demand amid increased supply chain complexity. On the other hand, they need to embrace new technologies and process/product innovation to continuously adapt to competitive pressures, worldwide. Plant operations stands at the center of this strategic change and is a critical lever for address- ing growing business-technology challenges. While plants must collaborate seamlessly and efficiently with other facilities, as well as supply chain and innovation partners, many manufactur- ers still operate as disconnected plants, with non- harmonized operations management processes, non-standardized operations technology and legacy applications. Moreover, they have limited appetite and budget to adopt new technologies. The situation calls for a comprehensive approach to transforming plant operations management to enable ingrained agility, predictability, respon- siveness and efficiency. This white paper describes our approach to overcoming these issues, built on our ONEPlant transformation framework and services. It describes a well-defined maturity framework to draw a blueprint, methodologies to implement strategic actions, and end-to-end IT services that can help manufacturers transform their plant operations incrementally and cost-effectively. Today’s Environment: Challenges and Opportunities Today’s global economy presents manufactur- ers with a host of new challenges, as well as opportunities. Complex value chains, continuing economic uncertainty and changing customer demographics are forcing manufacturers to con- tinuously adapt to dynamic business conditions. Meanwhile, the next industry revolution is taking hold (i.e., Industry 4.01 ), as new technologies and process innovations present opportunities for manufacturers to take advantage of the changing environment. Challenges for Manufacturers Manufacturers must simultaneously contend with the changing nature of the manufacturing model cognizant 20-20 insights | february 2015 • Cognizant 20-20 Insights
  • 2. cognizant 20-20 insights 2 by applying new technologies and respond to customers’ highly demanding fulfillment targets. At their core, these challenges include: • Addressing demanding customers by creating agile fulfillment capabilities. • Remaining relevant amid market volatility. • Meeting demand for more personalized products by bringing customer intelligence to the production floor, adding a higher level of complexity to the configuration and fulfillment cycle. • Attracting employees amid radical changes in workforce demographics (i.e., millennials and employees with millennial mindsets). • Understanding complex business models (i.e., a complex supply chain, contract manufacturing, global operations, volatile demands and higher product variants) that can reduce efficiency. • Staying on top of increased merger and acquisi- tion activity, adding heterogeneity to business processes as well as the technology stack. • Driving real-time and predictive intelligence from the huge data sets that are collected throughout the supply chain, including production processes (i.e., plants). To address these challenges, manufacturers must re-examine their operating models and priorities related to sourcing materials, production, fulfill- ment, new product introduction, supply chain efficiency, resource utilization, etc. Emerging Opportunities Manufacturing has generally been seen as a laggard in adopting new technology, but the emergence of social, mobile, analytics and cloud technologies (the SMAC Stack™) and the Internet of Things (IoT) is opening new vistas for manufac- turers to explore. The SMAC Stack provides the technological underpinning to help manufacturers support more intuitive, engaging, personalized and con- textually-aware ways to design, build and deliver products and services to customers. For example, mobile technologies can greatly improve the pro- ductivity of maintenance operators by removing paper-based inspection sheets and allowing them to view equipment health history and enter condition information while on maintenance rounds. Mobility also helps quality inspectors and warehouse operators perform transactions on-the-go by enabling real-time access to busi- ness-critical information.2 In today’s digitally connected world, no product or offering is complete without a connection to the SMAC Stack or the IoT. The rapidly changing mobile landscape and onslaught of IP-addressable and IP-aware devices can enable manufacturers to gather accurate information, turn processing speed into a competitive advantage, and capitalize on the intelligence gained from every interaction and transaction across the value chain. IT/OT Convergence Amid the rapid advancement in digital technolo- gies, underlying operational technologies (OT) on the plant floor have converged with enterprise information systems, forming one technical archi- tecture that spans the manufacturing enterprise.3 As these technologies blur, the convergence of IT/ OT will help manufacturers significantly reduce their technology footprints and improve the overall information flow between the plant and the rest of the enterprise, thereby facilitating new operational efficiencies. In a perfect world, manufacturers would tightly align enterprise and operational systems to blend corporate run-the-business data with process information. For example, process data from legacy systems would be more tightly integrated not only with plant analytics but also with enterprise analytics. Better alignment between IT and OT systems would also consolidate enterprise architecture, thereby helping manufacturers provide event-based capabilities to more effec- tively respond to adverse events within the plant or across the supply chain. Industry 4.0 and the Internet of Things With the ongoing Industry 4.0 revolution, the boundaries between the physical and virtual worlds will increasingly cease to exist, particu- larly as IP-addressable/aware devices define the connected, smart factory. New operating models will emerge as physical material and information merge into one, since the digital bits and bytes contained in both will be tightly linked as more and more digital data is embedded into the supply chain. Manufacturers will have more SMAC technolo- gies on hand to power smart sensors, smart machines and smart wearables, which will take
  • 3. cognizant 20-20 insights 3 manufacturing to the next level of agility and productivity. Smart sensors with IoT platforms will generate numerous “Code Halos,” or the digital code surrounding people, process, orga- nizations and devices, throughout the manufac- turing space.3 A plant Code Halo™, for instance, could be harnessed by using big data analytics to obtain real-time predictive and actionable intel- ligence for the plant. Actionable machine (or device) Code Halos could be built by collecting process data, machine data and alarm logs during machine failure conditions. Using these data collections, manufacturers could detect failure patterns to warn mainte- nance operators about a possible breakdown well ahead of its occurrence. Such predictive alarms and information can help save costly breakdowns. Similarly, batch production information — with detailed meta data on process conditions — can help create product Code Halos that, in turn, can help manufacturers analyze and improve batch yields. Factories (and small plants) are already emerging in which all employees — from supervisors to plant managers to senior leaders — share real-time information and access plant analytics to improve operational efficiency and productivity. As a result, essential elements of manufacturing are converging like never before, creating what we call “informed manufacturing.”4 Imperatives for Plants As the focus on agility, responsiveness and per- sonalized manufacturing increases, plants need to prioritize their efforts to seamlessly and effi- ciently collaborate with other manufacturing operations — from contractor manufacturers, through supply chain and innovation partners. This necessitates plants to work as a “one- plant” ecosystem to achieve plant operations management that is more integrated, predictive, lean (efficient), agile (adaptive and flexible) and enabled by new technology. Indeed, according to IDC,5 30% of manufacturers by 2016 will invest substantially in increasing the visibility and analysis of information exchange and business processes, both within the company and with partners. Further, IDC also estimates that this year, 65% of companies with more than 10 plants will enable the factory floor to make better decisions through investments in opera- tional intelligence. Key capabilities include: • Integrated supply chain and innovation capa- bilities that help to improve agility, reduce manufacturing and innovation cycle time, and improve resource utilization. • Real-time and predictive capabilities to reduce response time, improve planning and boost resource utilization via dynamic planning; improve visibility; and achieve predictable per- formance. • Collaborative operations management to improve knowledge-sharing and best practices within and across the plant. • Standardized and future-proofed OT to ratio- nalize the operations technology footprint and improve productivity by adopting new tech- nologies. General Motors already sees Google Glass technology as a tool to improve assembly line productivity to deliver real-time images and videos, as well as on-the-job training/work instruction.6 Goals include: • Higher customer satisfaction by delivering the right product at the right time and at the right price. • More efficient plant operations by cutting waste and reducing input material and operations costs (including energy and utility expenses) and improving inventory turns. • Improved regulatory compliance by adopting total quality management (TQM) discipline from design to delivery. This will help to improve customer satisfaction, as well as reduce overall manufacturing cycle time. Current State of Plant Operations Management While manufacturers prepare for the connected enterprise enabled by SMAC and the IoT (and wearables in particular), many are still struggling to integrate and harmonize plant operations with the end-to-end value stream (order-to-cash, new product introduction, or NPI). According to Gartner,7 70% of plant floor data is still not used for enterprise decisions. As a result, many plants are unable to capitalize on the power of new tech- nologies.
  • 4. Manufacturing plants need to be viewed as strategic investments that help to develop and expand business. As such, plants need to operate in sync with the overarching business vision. Even some manufacturers with high levels of technology implementations fail to derive maximum value from their plant investments because of a plant vision and system integration that is misaligned with the enterprise. Existing plants pose unique challenges for achieving enterprise transformation (see Figure 1). The following scenarios must be addressed by manufacturers to achieve such business objectives: • Multi-discipline, non-standardized, non-inte- grated plant operation management processes. • Non-integrated processes (within the plant as well as within the supply chain). • Lack of real-time visibility of plant operations due to sub-optimal plant resource utilization. • Challenges in getting end-to-end traceability (material/process) information. • Lower levels of collaboration within the supply chain and innovation value stream. • Legacy systems with disparate application stacks, leading to greater technology variance within and across plants. Obsolete technolo- gies also add to the plant’s operation risk. • Lack of a common IT program at a corporate level. IT strategy is still largely driven by local plant or enterprise integration needs. • Higher risk and substantial time involved in changing processes/systems at the plant level. A Comprehensive Plant Operations Transformation Strategy Toprepareforthenextwaveofindustryrevolution, manufacturers will quickly need to close gaps between plant and enterprise operations, as well as between operations technologies and new information technologies. To achieve this, manu- facturers must adopt a comprehensive approach to transforming plant operations management. Most of our leading global manufacturing clients realize these challenges and have already initiated a comprehensive approach or are in the process of adopting one. The aim of such a program is to harmonize operations management and operations technology to align the plant(s) with the enterprise. Key Considerations A successful transformation initiative requires the following: • The understanding that transformation is a journey, not a sprint, that requires buy-in from all stakeholders (corporate business users, cognizant 20-20 insights 4 Today’s Manufacturing Enterprise Floor Inventory Customer Supplier 2 Product Feedback Product Feedback Planning Enterprise Material Flow Design Manual Process Supplier 1 Maintain Retire Feedback Plant A Order Dispatching Production Maintenance Warehouse EHS Plant B Research & Development Idea/ Concept Validation Release Innovation Source Scheduling Scheduling Schedule & Master Data Production Response Production Response Production Ecosystem Schedule & Master Data Return Return Deliver Fulfillment Distribution Center Warehouse WarehouseWarehouse Contract Manufacturer Information Flow Track & Trace Manufacturing Analytics Process SupervisionProcess Control Energy & Utility Tracking Process Analytics, SPC Control Quality & Compliance SOP & Product Master Experiments & ECM Data Collection and Historians Figure 1
  • 5. corporate IT, plant IT, plant users, owners of various strategic initiatives, such as Lean Six Sigma, etc.). • A phased approach to align plant(s) with the enterprise vision and a defined roadmap to reach a future state. • The ability to identify strategic actions that address current plant challenges and align with the overall vision. • And, perhaps most importantly, the wherewith- al to choose a credible partner that can help in realizing overall transformation goals. Cognizant’s ONEPlant Services Help Transform Plant Operations Our ONEPlant transformation framework and services offer a unified approach to transform plant operations. Importantly, they enable manu- facturers to achieve an integrated enterprise by strategically aligning technology, processes and people toward a common vision and goal (see Figure 2). Key components of our ONEPlant services include: • A maturity framework to assess the current state and define the transformation roadmap. • Strategic actions that are part of the trans- formation road map. These actions focus on addressing current plant situations, as described in this document. • Technology services and agile methodology to help transform plant operations management in alignment with the transformation roadmap. Plant(s) of the Future Plants of the future will need to be seamlessly integrated with the extended supply chain and innovation cycle, operating with greater agility and efficiency (see Figure 3, next page). All plants, including contract manufacturers, will need to work as a single ecosystem to fulfill customer demands, thereby improving customer satisfac- tion across the board. Role-based and secure plant information/transactions will be available anytime, anywhere and in real-time, on any device (mobile, laptop or desktop computer, wearable, etc.). Plant operations will automatically adjust or respond to adverse events within the supply chain. Plant, product and machine Code Halos will aid in predictive intelligence and drive proactive actions. As such, new SMAC Stack technologies will become an integral part of operations tech- nologies. Experts will be able to remotely work with floor operators in a collaborative manner to improve efficiency, with remote experts able to not only view the real-time health of plants but also identify machine failure locations through video and photo sharing. cognizant 20-20 insights 5 Implementing a ONEPlant Approach Enterprise Customers Plant(s) AlignAlignAliggnednednneed Visision Harmoarmoarmmonizedonizennize Procr cesss Other Organizations Achieving Integrated (ONE) Predictive, Lean, Agile, New technology & Timely Plant Operation ollaboCollaboCollaCollaCoollaCCCo ationonooratioorationo oratioonoratioonnoStandaandaanddardizedardizrrdiz SSysty temm Plant(s)PPlaPPla ) Warehouse and Vendors Figure 2
  • 6. Maturity Framework Our proprietary ONEPlant maturity framework provides a systematic way to define maturity, along with a specific focus on plant operations management processes. It can be used to align vision/KPIs and process capabilities, as well as define the transformation roadmap. Process View Considering various interactions and the impact of plant operations on the value stream, the framework focuses on key plant operation processes that are key to achieving business objectives. Key processes that ONEPlant addresses include detailed scheduling, experi- ments and change management, production execution, inventory management, quality management, plant maintenance, energy and utility management, track and trace, QMS and compliance, plant performance, EHS, etc. Figure 4 illustrates the various levels of maturity and capabilities required at each level. The ONEPlant maturity framework defines maturity across five levels, from the initial level, at which plants are more reactive, to the top level, cognizant 20-20 insights 6 Tomorrow’s Manufacturing Enterprise Measuring Process Maturity Customer Product Feedback Product Feedback Dynamic Planning Enterprise Material Flow Design Supplier/ VendorVendor Base Maintain Quality Retire Feedback Plant A MSB App1 AppN Plant N Research & Development Idea/ Concept Validation Release Faster Innovation Source Schedule & Master Data Production Response Ecosystem Real-time & Dynamic Scheduling One vision & strategy across the ecosystem Simplified & harmonized plant operations processes Standardized operations technology Deliver Rapid Fulfillment Distribution Center Warehouse MSB App1 AppN Warehouse Information Flow Contract Manufacturer Repetitive Standardized Orchestrated & Agile Predictive & Optimizing Level 1 Functional Level 5 Predictive & Optimizing Level 2 Repetitive Level 3 Standardized Level 4 Orchestrated & Agile Plant-wide Enterprise-wide Improvement Align Transform Sustain & ImproveStandardizeACTIONS MATURITY LEVELS Standardized processes and technology with aligned operations within plants Aligned vision with tactical capabilities Aligned enterprise and extended enterprise with Agile and collaborative process Predictive planning and operations execution with continuous improvement efitsRReap benefi itsReeap bbenefit sReapp benefits Vision and strategy updates Improvementv Figure 3 Figure 4
  • 7. cognizant 20-20 insights 7 at which plants are agile and predictive. Progress toward the highest maturity level typically happens step-by-step, where at each level, certain capabilities generate tangible business benefits. The initial maturity level focuses on improving efficiency by boosting production yield, produc- tivity and real-time plant visibility to the planner. By delivering improved maturity, plants move toward more flexibility, responsiveness and predictive planning. Strategic Actions: Addressing Unique Plant Challenges Our ONEPlant roadmap recommends a phased approach, with strategic actions that align with the overall vision and simultaneously offer ways to address existing plant operations challenges. These include: • Simplify and standardize plant operations management processes. This is one of the key aspects of transformation and needs to be aligned with enterprise strategic initiatives such as Lean Six Sigma, TQM, etc. Individual plants typically have different ways of handling planning, execution, production reporting, performance management, material handling, quality assurance and control, etc. Moreover, many plant operations processes span multiple departments. For example, order execution pro- cesses typically cut across enterprise planning, plant production, quality and materials handling departments. To standardize these process- es, it is important that multiple stakeholders from various plants, as well as the corporate business/IT team, are strategically aligned. • Improve user experience. With millennial workers, organizations need to take a new look at the user experience with respect to operations technology. The user interface should be more personalized and responsive to the preferences of individual users. Such an approach is emerging in the SCADA space, as well as other operations technology environ- ments (MES, EAM, WMS, LIMS, QMS, EMI, etc.). • Standardize operations technology. While simplifying processes is important, standard- ization of operations technology (system) is equally so. Key elements that need to be considered are clear separation of responsibili- ties for systems with business capabilities with minimum overlap, a minimal number of tech- nologies and interfaces, plant needs for higher availability, and multiple deployment options (central vs. local) to address reliability needs. • Adopt new technology. New and powerful technologies, such as mobility, social media, big data analytics, virtualization, cloud, wearables, etc., provide real-time actionable intelligence that can elevate plant operational perfor- mance by improving flexibility, responsiveness and quality. Vendors that provide automation technology to manufacturers already offer historians, supported with big data technolo- gies. This can help manufacturing enterprises analyze long-duration process data with trans- actional MES/lab data, gaining new process insights. • Integrate processes and enable plants with manufacturing SOA. Current plants use multiple systems (including legacy environ- ments) to achieve various manufacturing capabilities. While plant transformation and standardization of operation technology will reduce the application footprint, plants need more flexible and faster ways to integrate disparate and legacy plant systems while the transformation is in progress. A manufactur- ing service-oriented architecture (SoA)8 can help by addressing specific needs for plant integration. This approach can also enable the development of cross-platform applications, improving agility and responsiveness. • Enable remote operations management. Remote operations management for perform- ing asset diagnostics and abnormal event analysis can help reduce the overall TCO of maintaining operations, as well as improve overall organizational responsiveness. • Improve collaboration and best practices uti- lization. As advancement in each technology/ process increases, it is important to take inputs from all experts before incorporating best practices in process improvement. Such collab- oration can be improved through the adoption of new technologies. Integrated knowledge management and remote expert support using screen-share and camera-share capabilities offer organizations ways to take collaboration from concept to reality. • Build predictive and real-time operations intelligence. Creating closed-loop predictive operations intelligence is one cornerstone of plant transformation. Harnessing plant, product and machine Code Halos — and layering these with predictive intelligence — can help plants take proactive actions aimed at improv- ing overall customer satisfaction, efficiency, agility and responsiveness.
  • 8. Many of our clients already follow a comprehensive approach for plant operation transformation, although some are at the early stages of their transformation journey. Examples include: • The world’s largest research-based pharmaceuticals com- pany has begun its transformational journey of converg- ing electronic batch record system, quality management, inventory management and plant performance, along with an enterprise SAP initiative. We helped with solution real- ization and are deploying it across 70-plus sites. • A global diversified manufacturer known for its innovative products across segments is starting its journey of trans- forming its manufacturing operations management, along with an SAP initiative. We helped define the operations management roadmap by blueprinting the production, quality and inventory processes, with a specific focus on functional segregation of processes between multiple systems. • One of the world’s leading consumer goods company in the healthcare space is in the process of enterprise trans- formation, which is driving change within plant operations management. We have been engaged in standardization and solution deployment for QMS and MES systems, with a focus on compliance management, device history records and quality management. Benefits A structured and comprehensive transformation initiative typically delivers multiple benefits: • With improved maturity, plants will see improvements in various KPIs, such as manufacturing cycle time, time to change or experiment with new processes/products, flexibility for order variations, inventory turns, energy efficiency, scrap, overall equipment effectiveness, yield and quality compliance. • With a step-by-step approach, the enterprise will see early benefits due to new business capabilities supported by IT capabilities. • Business will be able to compare multiple plants and benchmarks in terms of capabilities and KPIs. This will help improve KPIs, adoption of best practices and collaboration. • A framework approach helps to align IT transformation, informed by a Lean Six Sigma initiative. • Simplification and standardization during solution design and build will help reduce rollout time for solutions within the enterprise. This, in turn, will help to reduce rollout costs and enable early business benefits. • Operations technology rationalization will help reduce total cost of ownership by reducing support service costs, as well as software license costs. Advancing Plant Operations Transformation 8cognizant 20-20 insights Cognizant’s Aligned Service Offerings Ready to Deliver Transformation Align Transformation Sustain & Improve Level 2 Repetitive Level 3 Standardized Standardize Maturity assessment, vision/KPI alignment and transformation roadmap MOM / OT product evaluation OT support Training & change management User experience enhancement (UI services) Level 1 Functional Level 4 Agile & Orchestrated Level 5 Predictive & Optimizing Operations technology rationalization Remote operations diagnostic IT/OT synergy and improve cost Remote operations management Solution deployment: Global rollout & release management Solution realization: Design, build, test & pilot New technology prototype/pilot: Mobility, wearable, analytics Plant operations harmonization & blueprinting Advisory services Technology & integration services Operations technology rationalization Figure 5 End-to-end Services to Transform Plant Operations Figure 5 details our portfolio of advisory, technology and integration services to advance the transfor- mation of plant operational management. Quick Take
  • 9. cognizant 20-20 insights 9 Footnotes 1 Industry 4.0 is a project funded by the German government to promote the computerization of the manufacturing industry, http://www.bmbf.de/de/9072.php. 2 “How Mobility on the Shop Floor Transforms Manufacturing Operations,” Cognizant Technology Solutions, August 2013, http://www.cognizant.ch/InsightsWhitepapers/How-Mobility-on-the-Shop-Floor- Transforms-Operations.pdf. 3 For more on Code Halos, read “Code Rules: A Playbook for Managing at the Crossroads,” Cognizant Technology Solutions, June 2013, http://www.cognizant.com/Futureofwork/Documents/code-rules.pdf, and the book, Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business, by Malcolm Frank, Paul Roehrig and Ben Pring, published by John Wiley & Sons, April 2014, http://www.wiley.com/WileyCDA/WileyTitle/productCd-1118862074.html. 4 See “Informed Manufacturing: the Next Industrial Revolution,” Cognizant Technology Solutions, April 2014, http://www.cognizant.com/InsightsWhitepapers/Informed-Manufacturing-The-Next-Industrial-Rev- olution.pdf and “Informed Manufacturing: Reaching for New Horizons,” Cognizant Technology Solutions, September 2014, http://www.cognizant.com/InsightsWhitepapers/informed-manufacturing-reaching-for- new-horizons-codex980.pdf. 5 “IDC FutureScape: Worldwide Manufacturing 2015 Predictions,” IDC, December 2014, http://www.idc.com/getdoc.jsp?containerId=IDC_P32121. 6 Jeff Bennett, “GM Takes Google Glass on a Test Drive,” Wall Street Journal, Aug. 5, 2014, http://blogs.wsj.com/digits/2014/08/05/gm-takes-google-glass-on-a-test-drive/. 7 “Has MES Come of Age,” Gartner/MESA joint presentation, December 2014, https://services.mesa.org/ResourceLibrary/ShowResource/47eff093-b4f9-417e-9aa1-1ddbf3e82757. 8 “MESA White Paper 43: Applying Global MOM Systems in a Manufacturing 2.0 Approach,” MESA International, April 2013, https://services.mesa.org/ResourceLibrary/ShowResource/f00b70ce- 5637-4027-a14d-4bf7c0209eee. These services are further supported by our solution accelerators and tools/templates, including: • Cognizant ONEPlant framework. • FloorTrack: Mobility for Shopfloor. • APEx: Remote asset monitoring. • PACE: Agile project execution framework. • Process templates and tools aligned with various industry standards (ISA 95, ISA 88, PAS 55, ISO 22400, MIMOSA, SCOR, APQC, etc.). Looking Ahead Amid a new era of growth, manufacturing has a crucial role to play in moving both developed and developing economies forward. In this new era of manufacturing, businesses need to realign their strategy to address the challenges of agility, efficiency and volatility. We believe that to partici- pate in a new growth phase, manufacturers must align their information and operations architec- tures and processes from the plant floor to the top floor. Powerful new technologies such as the SMAC Stack and IoT, powered by proactive Code Halo thinking, will play a key role in this strategic realignment. Accepting the need for a holistic approach and transformation of plant operations management is a critical first step in enabling this evolution. Here are some additional steps that manufactur- ers can take to better prepare themselves for plant operations transformation: • Align and establish support from stakehold- ers for the transformation program, both from the business (corporate business owners as well as plant operations owners) and IT. • Establish an understanding of the current state of plant operations management and set common goals for the desired future state. • Develop a PMO and core team to manage the transformation program. Cognizant ONEPlant helps manufacturers prepare and transform plant operations management across the enterprise, adapt to new-age manu- facturing and gain competitive advantage in the global manufacturing industry.
  • 10. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger business- es. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative work- force that embodies the future of work. With over 75 development and delivery centers worldwide and approximately 211,500 employees as of December 31, 2014, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 Email: inquiry@cognizant.com European Headquarters 1 Kingdom Street Paddington Central London W2 6BD Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 Email: infouk@cognizant.com India Operations Headquarters #5/535, Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 Email: inquiryindia@cognizant.com ­­© Copyright 2015, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. About the Authors Pawan Kale is Principal Architect at Cognizant’s Engineering & Manufacturing Solutions Practice. He has over 17 years of experience as a solution architect, with a specific focus on transforming manufacturing operations management through simplification and digitization using various systems such as plant integration systems, historians for data collection, MES, EMI, EAM, QMS and enterprise integration using the manufacturing service bus. Pawan has a degree in chemical engineering from University Institute of Chemical Technology, Mumbai. He can be reached at Pawan.Kale@cognizant.com. Puneet Raitani is a Consulting Manager within Cognizant’s Engineering & Manufacturing Solutions Practice, with more than five years in the practice. Puneet has an engineering degree in mechanical engineering and an M.B.A. in marketing and systems from T.A. Pai Management Institute, Manipal, Karnataka. He can be reached at Puneet.Raitani@cognizant.com. V. Rajagopal is a Manager, Business Development, within the Cognizant Engineering & Manufacturing Solutions Practice, with more than five years of experience. He has an engineering degree in mechanical engineering and an M.B.A in marketing and systems from ICFAI Business School, Hyderabad. He can be reached at Rajagopal.V@cognizant.com. Acknowledgments The authors would like to thank the following Cognizant associates within the Engineering & Manufac- turing Business Unit for their contributions to this white paper: Frank Antonysamy, Senior Director; Phani Bhushan Sistu, Senior Director; Ratna Sarma Kolachana, Senior Director; Rajesh Sahasrabudhe, Director. Note: Code Halo, SMAC Stack, FloorTrack and ONEPlant are pending trademarks of Cognizant Technology Solutions.