1 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference eCommerce and...

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McIntosh & CubineApril 11, 2000

PIMA Information Systems International Conference

eCommerce andeBusiness REQUIRE eManufacturing to keep up!

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ERP, MES, APS, Quality Management: ERP, MES, APS, Quality Management: How do these Pieces EFFECTIVELY fit How do these Pieces EFFECTIVELY fit Together?Together?

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ManufacturingExecutionSystem

What are the pieces?What are the pieces?

ERPOrder Management

Production PlanningInventory ManagementLogistics & Distribution

Financials / CostingPurchasing

MRP

Lab &QualityInfoSystems

AdvancedPlanning &Scheduling

HumanResourceManagement

ProcessControl

Asset Maintenance& Mgmt.

CustomerRelationshipMgmt.

Supply Chain Mgmt.&eCommerce

Data Warehouse& DecisionSupport

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ProcessManagement

ProcessControl/SPC

ProductionExecution

Accounting, Purchasing, MRO, etc.

Order to Delivery Processes

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ERP

Manufacturing Execution

Advanced Planning & Scheduling

Quality Management

Credit: AMR Research, Modified with Permission

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What is ERP?What is ERP?

ERP System

MillsProduction DemandResultsPurchase Requirements

Customers

QuotesATP

OrdersInvoices

Product Quality

Suppliers

PricingOrdersProduct Quality InvoicesReceiptsATP

Front Office

Financial ResultsCustomer Service/CRM

ProcurementResource Planning

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ERP: What is it Really?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.

AccountsReceivable

AccountsPayable

GeneralLedger

FinishedGoods

Shipping& Logistics

WIPProductionPlanning

ProductionExecution

WarehouseManagement

MaintenanceManagement

MRP Quality CRP

HumanResources

Payroll PurchasingOrder

ProcessingCRM

Fixed Assets Consolidation

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AccountsReceivable

AccountsPayable

GeneralLedger

FinishedGoods

Shipping& Logistics

WIPProductionPlanning

ProductionExecution

WarehouseManagement

MaintenanceManagement

MRP Quality CRP

HumanResources

Payroll PurchasingOrder

ProcessingCRM

Fixed Assets Consolidation

ERP: What’s wrong in Pulp & Paper?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.

?

?

??

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ERP Order Services & Planning for ERP Order Services & Planning for Pulp & Paper….not always a good fit...Pulp & Paper….not always a good fit...

Roll Dimensions Vs. SKU’sMake 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

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ERP to the P&P Manufacturing Floor?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!Without an MES system, it’s insanity!

“Every roll has to be a unique lot to track Quality data?

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There are real ERP benefits for P&P There are real ERP benefits for P&P companies however...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.

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What is MES?What is MES?

Plan

DistributeMakeSource

Supply Chain Council SCOR model

Manufacturing Execution Systems Manufacturing Execution Systems manage the “Make” part of your manage the “Make” part of your Supply ChainSupply Chain

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Honeywell HiSpec – OptiVISION™

MAJIQ Systems - ELIXIR™

ABB – ABB™

Segment products from smaller companies coming to market

Home Grown – Legacy-R-Us™

Manufacturing Execution SystemsManufacturing Execution Systems

Pulp & Paper Industry MES SuppliersPulp & Paper Industry MES SuppliersPulp & Paper Industry MES SuppliersPulp & Paper Industry MES Suppliers

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The Unique MESThe Unique MES Product Evolution Product Evolutionin Pulp & Paperin Pulp & Paper

Product Tracking

Trim

1975 1980 1985 1990 1995 Now

Order Entry &Shipping

Quality

•Customer Service

•Converting

•Warehouse Management

•Invoicing

•Raw Material Planning

•Load Planning

•Traffic Management

•ERP Integration

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The MES evolution has yielded The MES evolution has yielded realreal benefits for Paper Companiesbenefits 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

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But the ERP & MES products have major But the ERP & MES products have major overlaps in Pulp & Paper!overlaps in Pulp & Paper!

Winder ManagementReel/Roll trackingLab Data CollectionI/F with GaugingTrimConverting OperationsMfg. Production Orders

FinancialsPurchasingHuman ResourcesMaintenance ManagementCosting

Customer OrdersShippingFinished Goods Roll QualityWarehouse Mgmt.SchedulingMRP

ERP

MES

Which vendor(s) should provide these overlapping functions and why?

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Production Planning & SchedulingProduction Planning & Scheduling

Functionality that cuts across existing Functionality that cuts across existing classes of Packaged products.. classes of Packaged products..

MESMESERP, ERP, &&Pure APS productsPure APS products

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Scheduling Resides, Where, Exactly???Scheduling Resides, Where, Exactly???

Most MES vendors offerblock scheduling & trim


Every ERP Systemoffers some type

of scheduling


of scheduling

P&P SpecificScheduling &Trim Bolt-on

Products


Products

Other manufacturingscheduling systemsnot specific to P&P


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For Pulp & Paper, not just anywhere!!!For Pulp & Paper, not just anywhere!!!


of scheduling


of scheduling


Products


Products



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?

??????

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APS benefits are usually a matter of APS benefits are usually a matter of complexity and sizecomplexity and size

Single MillMulti-MachineMulti-Product

Multi-MillMulti-MachineMulti-Product

Rolls + Converting

Multi-MillSingle Product

Roll Based

Single MillSingle MachineSingle Product

Roll Based

IncreasingComplexity

Increasing Size

GreatestBenefitfrom APS

Least Benefitfrom APS

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Quality Management functions probably Quality Management functions probably have the least clear cut definition in have the least clear cut definition in terms of Package products. terms of Package products.

ERPERPMESMES

Process Information

Systems

Process Information

SystemsHybrids, e.g. Mountain Systems

Hybrids, e.g. Mountain SystemsLIMSLIMS

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Grade History

Process Historian

Quality Management Information has Quality Management Information has multiple sources and multiple consumers...multiple sources and multiple consumers...

Lab Data GaugingData

Mill &CustomerSpecs

ERP for CustomersThe things you communicate to

them about your product when it ships

MES for Production OperationsThe things that help production

decide when product meets specs or needs to be scrapped

QM or PIMS for Process Engineering GroupsThe things that enable them

to troubleshoot problems and tackle optimization opportunities

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The concept of quality management The concept of quality management systems is still evolving in pulp & papersystems 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

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What about “Best of Breed”?What about “Best of Breed”?

How do we select the

right Packageproducts?

How do we select the

right Packageproducts?

What functionality do we really need?What functionality do we really need?

How do we put it all together?How do we put it all together?

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You should identify your opportunities for You should identify your opportunities for improvement first..a “vision” for where improvement first..a “vision” for where you want to beyou 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

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Understand the requirements for Understand the requirements for achieving your future stateachieving 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?

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Develop a REALISTIC Plan for Develop a REALISTIC Plan for Implementation….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

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Implementation Planning is not Implementation Planning is not enough. A complete lifecycle plan is enough. A complete lifecycle plan is required for best of breed solutions.required for best of breed solutions.

New Requirements

EnhancementsUpgrades

Support& Training

System Lifecycle

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Best of Breed Package solutions are achievable Best of Breed Package solutions are achievable and and todaytoday that is the that is the only wayonly way pulp & paper pulp & paper companies can provide robust functionality across companies can provide robust functionality across the entire “make” part of your supply chain…..the entire “make” part of your supply chain…..

...and achieve emanufacturing!

ERP MES

Quality

APS

ProcessInformation

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Questions, comments, electronic Questions, comments, electronic copies, etc.copies, etc.Mike McIntosh

Mark [email protected]

Date post:	15-Dec-2015
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1 McIntosh & Cubine April 11, 2000 PIMA Information Systems International Conference eCommerce and...

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