1. Creating Value Through
Collaboration
Dick Hill
VP Manufacturing Advisory Services
ARC Advisory Group
crhill@ARCweb.com

2. Wise Men Once Said…
“It is probably not love that makes the world
go around but rather those mutually
around,
supportive alliances through which partners
recognize their dependence on each other for
the
th achievement of shared and private goals.”
hi t f h d d i t l ”
Fred Allen
“It is not necessary to change. Survival is not
mandatory.”y
W. Edwards Deming
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3. Concept: The Plant as a Node in a Value
Network (CMM)
Collaborative Manufacturing Management considers
the relationship between all the nodes on the Value
Network.
Network
CMM Nodes:
Process
Plant
Customers
A process plant, for example, must
collaborate with upstream and downstream operations
to f lfill the mission.
fulfill h i i
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4. Today’s Operating Challenges
Business Enterprise Domain
Services
Materials Mgt Process
Plant
Operations
p Fulfillment Customers
Value Chain Domain
Suppliers
RD&E Collaboration is
essential to meet
business
objectives
Lifecycle Domain Production
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5. Business Objectives – Creating Value
Value to
Shareholder
Health, Safety Customer
Environment Satisfaction
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6. Levers to Meet Objectives
Technology Process
People
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7. Alignment of Objectives and Levers
Shareholder
Value
Technology Process
Health, Safety Customer
&E i
Environment t Satisfaction
S ti f ti
People
Information and Collaboration Make it Happen
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8. Collaboration - in the Value Chain Axis
Materials Mgt Fulfillment
Suppliers Customers
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9. Feedstock and Raw Material Suppliers
Topic From To
Inventory You Order it They Anticipate your
need
Service Process for Resolving Eliminate Cause For
Disputes Dispute
Quality Inspect and Verify Trusted
Operations Vi ibili
O i Visibility Restricted
R i d Collaborative
C ll b i
Work Processes Separate Synchronized
Relationship Supplier - Customer Business Partner
Objective: Zero Feedstock Surprises
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10. Customer Relationship
Topic From To
Inventory They Order it You Anticipate their
need & manage it
Service Process for Resolving Eliminate Cause For
Disputes
Di t Dispute
Di t
Quality Inspect and Verify You Guarantee
Operations Visibility Restricted Collaborative
Work Processes Separate Synchronized
Relationship
p Supplier - Customer
pp Business Partner
Objective: Zero Customer Disappointments
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11. Collaboration – on the Lifecycle Axis
Services
RD&E
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12. Plant Lifecycle
Topic From To
Design Documentation As-Built at Startup Living Database for
Operations
Design,
Design Operate and None to Limited Standards based
Standards-based
Maintain Integration Custom interfaces Interoperability
Plant Asset Maintenance’s Active Management
Management
g Responsibility for
p y by Both Operations
y p
Availability and Maintenance
Design Objectives Designed for Low Designed for
Cost Startup Optimum Operation
Benefits
Work Processes Separate Synchronized - DOM
Objective: Maximum Asset Performance
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13. Product Lifecycle
Topic From To
Design Processes Sequential Product Concurrent Product
and Process Design and Process Design
Design - Build Design validation Virtual validation
Integration during startup before startup
Design, Build and None to Limited Standards-based
Service Integration Custom interfaces Interoperability
Design Objectives Time to Production Optimize Profit of
Low Cost to Make Product
Work P
W k Processes Separate
S t Synchronized –
S h i d
Digital Factory
Objective: Maximum Product Performance
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14. Collaboration – on Plant-Business Axis
Business
Operations
Production
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15. Finding the Hidden Capacity
Topic From To
Production Variance Conservative Targets Push Limits
Which Machine is Experience Data-driven
the
th problem?
bl ? Evidence - OEE
E id
Unscheduled Reactionary Predicting
Downtime
Instrumentation
I i Manual maintenance
M l i Program guided
P id d
Behavior maintenance
Availability vs Maintenance: Availability Collaboration &
Utilization Operations: U ili
O i Utilization
i Work Processes
Objective: O ti i
Obj ti Optimize Production
P d ti
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16. Proactive versus Reactive Energy
Management
Topic From To
Energy Consumption Consumption History Forecast Consumption
Peak Loads Monitor Predict
Energy Balance Daily Summary Real Time Balance
Operational Options Try it and see ‘What-if’ simulation
Co-Generation
C G ti Uncontrolled P
U t ll d Power Tie-Line C t l
Ti Li Control
Purchases
Production vs energy Scheduled Optimize schedule
independent and energy
Objective: Meet Energy Needs at Lowest Cost
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17. Collaboration: Users and Suppliers
Shareholder Shareholder
Value Value
Technology Process
P Technology Process
Health, Safety Customer Health, Safety Customer
& Environment Satisfaction & Environment Satisfaction
People People
Supplier
li Customer
Projects, Products, Operations…
Let s
Let’s Discuss What Works and What are the
Results
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18. “I not only use all the brains that I
have, but all that I can borrow.”
,
Woodrow Wilson
Thank You.
For more information, contact dhill@arcweb.com or visit
our web pages at
www.arcweb.com
www arcweb com
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