Effective August 2, 2013 , Levergent Technologies., and its subsidiaries worldwide(hereinafter referred to as “DISCLOSER”), desires to disclose to Beverage Plant,
Danfa (hereinafter referred to as “RECIPIENT”) and its group of companiesworldwide , certain confidential information that is contained in this studydocument. In receiving this document, RECIPIENT acknowledges that thedocument and the information contained herein is Confidential Information andagrees to the following restrictions:
RECIPIENT accepts this Confidential Information for the sole purpose of evaluatingthe same for its own contemplated use and hereby agrees not to make use ofthe disclosed Confidential Informationother than the purpose of evaluation, or todisclose the same to any third party or parties without the written prior consent ofDISCLOSER. All such disclosures shall be in writing. RECIPIENT shall protect saidConfidential Information with the same degree of care as it applies to protect itsown.
It is recognized that RECIPIENT may be required to disclose such ConfidentialInformation to employees, for purposes of evaluation. RECIPIENT will exercisereasonable care in the selection of such employees, and will fully advise all suchpersons of the confidentiality of this Confidential Information and shall secure theagreement of all such persons to comply with the terms and conditions of thisAgreement. The number of such employees will be limited to those who need toknow for said evaluation purposes.
If the period for evaluation has expired, or the RECIPIENT has notified DISCLOSERin writing that it is no longer interested in continuing with the evaluation, or ifnegotiations between the parties have commenced but DISCLOSER has notifiedRECIPIENT in writing that in DISCLOSER sole discretion a satisfactory agreementcannot be reached, then RECIPIENT will promptly communicate to DISCLOSERwithin thirty (30) days.
The period of this Agreement is until five (5) years from either the termination ofevaluation or negotiations by RECIPIENT or DISCLOSER whichever occurs last, asspecified in Paragraph 3 above. All obligations of the RECIPIENT with respect tothe use and disclosure of Confidential Information hereunder shall terminate atthe end of such five-year period.
The above constitutes the full and complete Agreement in this matter by andbetween the parties hereto.
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4.2 Beverage and Mineral Water Beverage Line ..............................................9
4.3 Other Core Processes .....................................................................................12
4.3.1 Syrup Room Operations...........................................................................124.3.2 Water Treatment Plant.............................................................................124.3.3 RO and Ozone Treatment Plant.............................................................124.3.4 Other Support Infrastructure ...................................................................13
5. Implementation and Deliverables ......................................................................14
5.4.1 Requirements Gathering .........................................................................165.4.2 Adaptation of New System (Change Management) .......................165.4.3 Third Party Equipment – procured by Beverage Plant, Danfa.........16
5.4.3.1 Server....................................................................................................165.4.3.2 Operating System and Database Licenses ..................................175.4.3.3 LogicApps Hardware ........................................................................18
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Companies in the Mineral Water and Juicebottling industry facecompetitive pressures to increase productivity and improve efficiency.
Here are some of the industry-specific challenges faced bybeveragebottling companies:
2.1 WashingBottles need to be washed at correct temperature andpressure.The wrong temperature may cause cracks to form inbottle, or prevent bottles from getting clean and hygienic.
Operators need to be alerted when washing units are notoperating at proper temperature and pressure.
Bottles that have developed cracks in the washing process needto be identified and removed.
2.2 FillingMixer in filling station needs to operate at the proper temperatureand pressure.
Product changeovers on a filling line need to happen followingproper procedures and under time pressure.
Bottle bursts need to be prevented or reduced. When glassbottles burst during the filling process, there is a serious health risk to consumers and employees. Dangerous glass splinters flyaround, which can hit employees and land in other bottles thatare intended for consumers.
When a bottle bursts during filling, bottles in vicinity of the burstbottle have to be rejected because of chance that glass splintershave landed in the bottles and contaminated the product.
Filling line has to be stopped after a bottle burst to clean the fillingline and remove glass splinters.
Employee may be injured if hit by glass splinters from an explodingbottle.
2.3 Quality InspectionAfter filling, it is critical that bottles containing foreign objects aredetected.
The failure to identify foreign object before the product hits themarket can threaten consumer safety, have a devastating effecton the client’s brand, and expose the Bottling companies to legalliability.
2.4 Labeling
Bottles need to have the correct brand label. Mislabeling wouldlead to the rejection of an otherwise good product.
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Enterprise Manufacturing Intelligence (EMI) software brings a company’smanufacturing-related data from many sources for reporting, analysis,
displaying information, and passing data between ERP systems and plant-floor systems.
3.1 Need for EMI SolutionManufacturing companies in the breweries can benefit from an EMIsolution for the following reasons:
1. Reducing manufacturing costs
Breweriesneed to increase capacity on their lines without makinginvestments in new, expensive machinery. EMI software tools help you tomeasure where lost machine time occurs, and understand whereavailable capacity can be unlocked.
2. Eliminate manual data entry and data collection processesBrewerieshave trouble collecting accurate and timely production data,such as production counts, rejection rates, reasons for rejections, andequipment downtimes. Typically, production data is tracked manuallyand entered into ERP systems at the end of shifts, or several days later. Thisdoes not enable quick, real-time decision-making.
3. Improve communication between managers and breweries
When the planning team needs information about a production run, theyhave to call down to the line and speak with an operator, who gets pulledaway from other duties. EMI software enables managers and planners toget real-time information about bottling plant activities on their own
information dashboard.4. Event-based vs. transactional-based manufacturing information
EMI software is event-based. It monitors business activities based on user-defined rules. When the software detects data meeting prescribedconditions, such as out-of-tolerance ranges, the software automaticallyissues a response. Such responses can be e-mail or SMS alerts, audio or visual alarms, or shutting down of machines or entire bottling line. EMIsoftware reduced the gap between bottling plant operations and ERPsoftware, which is transaction-based, not event-driven.
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5. Measure process performance by implementing KPI’s
Improvements in breweries can happen when you are measuringmeaningful performance measurements with accurate, real-time data.EMI software enables breweries to accurately measure key performanceindicators (KPIs), such as rejection rates and O.E.E.
6. Reduce cycle times, increase throughput, and lower inventoriesProduction equipment on the bottling line will stop for short periods of timefor various reasons. These short downtimes, lasting only a few minutes,often go unrecorded. EMI software can capture and measure these shortdowntimes, so they can be tracked and managed.
3.2 Footprint of EMI SoftwareEnterprise Manufacturing Intelligence software gives real-time visibility tothe wealth of manufacturing information during production runs. EMIsoftware pulls data from multiple sources, including the machines on theplant floor, so that planners and managers can understand what ishappening on the plant floor while the events are happening. In this way,EMI software gives critical information for quicker and better decisionmaking.
Enterprise Manufacturing Intelligence tends to have the followingcomponents:
Aggregation EMI software aggregates data from multiplesources, including machine output, manually-entered data, and other database applications.
Contextualization EMI software provides a structure or model tohelp you organize, find, and understand your data.
Analysis EMI software enables you to analyze data acrossmultiple sources so that you can make quick andbetter decisions.
Visualization EMI software provides multiple tools for visualizingyour data and alerting decision maker to keyinformation that requires actions. This includesinformation dashboards, visual factory displays,and e-mail/SMS alerts.
Propagation EMI software ensures that data from the plant
floor is automatically transferred to enterprisesystems, like SYSPRO.
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4. Solution Recommendations for Beverage Plant – Danfa
From our observations on Layout received from beverage plant – Danfa, Levergent believes that BeveragePlant, Danfawould benefit from implementing the LogicApps Enterprise Management Intelligence solution.LogicApps is a complete EMI solution built to ISA 95 standards and uses secure, encrypted wireless technologyfor communications.
Please note that we have not conducted a full process analysis in this document. If we move forward with animplementation of LogicApps EMI software, we would conduct a detailed requirements analysis of thebottlingoperations and finalize the solution components (number of LogicApps devices and third party devices)along with plant team.
4.1 LogicApps EMI Solution
LogicApps EMI is a real time plant monitoring solution that seamlessly connects all plant events to decisionmakers and enterprise solutions. LogicApps EMI solution is built with predictive algorithms enabling pre eventnotifications using plant performance models to productively notify plant decision makers to enable pre eventdecisions.
4.1.1 Core LogicApps EMI solution
The core LogicApps Emi solution is a single integrated product from:
1. Production Scheduling: a Production sequencing module which LogicApps uses to monitor the real-timeplan Vs. actuals.
2. Production monitoring, process losses and process traceability: module use to real-time monitor line levelproduction, machine level production, and losses reason codes. This module also builds a digital travel cardthat tracks various manufacturing conditions both in terms of quantity and quality parameters. Thisfunctionality is also used in the beverage bottling process to build batch level process consistency.
3. Quality impact in production: Critical process parameters, first off inspection and periodic inspections aremonitored using this process. This is only a monitoring process as the data collected from this will be used toanalyze quality related process losses that affect overall efficiency of a bottling hall.
4. Plant maintenance impact in production: Critical maintenance parameters, preventive maintenancestoppages, break down maintenance stoppages are recorded. This does not include integration into aCMMS system or build reliability maintenance based solution
5. Integration to ERP using LogicApps EMI sync – seamless enterprise connector to ERP solutions
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The core product will meet the proposed business requirement of Beverage Plant, Danfa for monitoring bottlinghall performance efficiency. Core product is a single integrated product primarily focused on productionfunctionalities only.
4.1.2 Add-on modules
The implementation of add-on modules requires core product to be implemented as a mandatory pre-requisite.
1. Plant quality for seamless integration with ERP and LIMS
2. Mobile plant quality for patrol inspection and seamless integration with ERP and LIMS
3. Plant maintenance including reliability center maintenance approach, meter based maintenance, etc.
4. Mobile plant maintenance for field crew with seamless integration to ERP
5. Costing – Activity based costing
6. Enterprise Energy Management
7. Attendance System integration
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Plant Maintenance:running time of blowmolding machine canbe monitored todetermine when toschedule preventivemaintenance ofequipment.
Bottle count rates canbe compared againstproduction targets to
determine whether blow molding process isabove or below shifttargets.
MAINTANANCE: Totalrunning time can bemonitored andcompared againstprev. maintenanceschedule.
Alerts can be triggeredif bottle count rates fallbelow threshold
targets. Alerts can bedisplayed on factorydisplays anddashboard screens , aswell as sent by e-mailor SMS , allowingcorrective action to betaken immediately.
When running timeapproaches thresholdfor prev. maintenance,alerts can be triggered.
5S:Work instructionscan be displayedduring productchangeovers.
If required, bottlecounts can be passedto ERP system and
associated withproduction order.
EMI system cancommunicate with ERPto automaticallygenerate maintenanceorders for blow moldingequipment.
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4.3 Other Core Processes
4.3.1 Syrup Room Operations
LogicApps EMI is a comprehensive solution that could also do real-timeintegration and tracking of all areas of Syrup room operations like:
Concentration level of dosage tank
Pressure level of dosage tank
Temperature level of dosage tank
Flow rate of Syrup
Flow rate of CO2
Flow rate of water & Line feeds
Real time process monitoring and control of entire Brewing processincluding:
Cleaning and Sanitizing – Tracking and documentation of bothcleaning and sanitation process.HACCP Documentation - Documentation of Hazard analysis andcritical control points
4.3.2 Water Treatment Plant
LogicApps EMI Solution can be used to aggregate data from equipmentin your water treatment plant, including:
Carbon towers
Softeners
Filtration systems
Deionization systemsDisinfection systems (chemical injection, UV disinfection, ozone)
Degasification systems
Our LogicApps EMI Solutioncan aggregate data from equipment in thewater treatment plant, enabling MAINTANANCE initiatives and givingvisibility to real-time operations of the water treatment operations.
4.3.3 RO and Ozone Treatment Plant
LogicApps EMI solution can be used to aggregate data from the RO andOzone treatments equipment to capture the following quality parameters.
PH & TDS Parameter Measurement
Ozone Level
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5. Implementation and Deliverables
5.1 Implementation MethodologyOur implementation methodology includes the following phases:
5.1.1 Requirement Phase
The requirement phase involves the product standard functionalitywalkthrough based on the mentioned functionalities in the proposaldocument. Based on the product standard functionalities we will becollecting additional user requirements to serve the business purpose. Therequirements will be recorded and documented. The scope of the projectwill be determined and will be getting requirements sign off from the user.
5.1.2 Installation and Configuration
The application and the database will be installed in the server and the server will be commissioned at the plant.
Once the server commissioning is over, the applicationstandard functionalities will be deployed in the server.
Then the master data collection from the user and datavalidation will take place. Once finished with validation, thedata is loaded in the system.
Delivery of the finalized LogicApps solution components andcommissioning of the same.
Connection of LMCs to the input source and verification ofsignal transmission from the input source to LMCs.
Configuration of network and hardware devices with software
application.Testing the data transmission from source to destination andensuring for data accuracy
Configuration of SMS/e-mail messaging based on customer requirements.
Configuration of reports and dashboards in the applicationand ensuring data accuracy.
5.1.3 Monitoring and training phase
The monitoring phase involves the monitoring of the data collectively for commissioned lines. The monitoring phase will happen for 10 working days
which includes application, devices verifications, report verifications,dashboards, email and SMS alerts.
Simultaneously the training will be given to users on the functionalities andusage of the system. The SOP’s and user manuals will be delivered to theusers.
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5.1.4 Training
Extensive training for the Plant Floor Operators and Supervisorsfor their usage of the solution (LogicApps EMI)
Operators: Operators will be educated, how to operate theLMC and other required devices to enter the Program Number,
line down reason and how to start and stop the shift.Engineers and Managers: All users will be trained on how tomonitor the dashboards, reports and how to configure thesystem.
LogicApps Product Administrator: System Administrator will betrained how to add users, define roles for a user, assigningreports to the user. System Administrator will be trained how toconfigure the SMS alert, automatic email reports for users anddiagnosing the network.
The training will be conducted for 10 working days with the user in the LIVE environment.
5.1.5 User Acceptance Testing (UAT)
In this phase, we conduct sessions with users on the deliveredfunctionalities for conformance as desired by the users and find out anymismatches and rectify the same. All parameters configured are checkedfor their authenticity and correctness. Users at different levels are alsoconsulted for their acceptance on the functionalities and usage of thesystem functionalities and their ease of use. We will get the approval onthe functionalities delivered and get a UAT sign-off from the user.
5.1.6 Go-Live
Once the User Acceptance Testing (UAT) phase is completed, the systemwill go LIVE from the date suggested by the user. This phase includes theusage of the system by the end users as defined in the user manuals andSOP’s. We will be providing assistance to the users on using the systemeffectively.
5.1.7 Change Requests
The changes on the functionalities (if any) will be received from the user and it will be recorded. The functionalities will be analyzed with thedefined scope and recorded as change requests. If any functionality isfound out of scope (sec 4.1.1), it will be considered as scope extension.The change requests will have impact on the timeline and cost of theproject.
5.1.8 Post-Implementation Support Phase
On-site consultants will remain onsite for a period of definedperiod to ensure that customer is utilizing the LogicApps EMIsolution to its full potential and have realized business gainsfrom the LogicApps EMI implementation. The postimplementation support will be for 2 weeks.
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5.1.9 Project Sign-off
On the successful completion of the post-implementation,which includes the delivery of accepted change requests andfull customer satisfaction, Levergent will proceed with customer sign-off on the project. Levergent will continue to provideproduct support as per the terms of customer’s supportagreement. (ref. commercial proposal)
5.2 Project Plan
The detailed project plan will be submitted after the award of thecontract.
5.3 Deliverables
Implementation PlanProduct user manuals and SOP’sAll the agreed functionalities(software and hardware)
5.4 Risk Management
The following are the expected risks during implementation of theLogicApps EMI solution:
5.4.1 Requirements Gathering
Risk: Ensuring that LogicApps EMI Management Software isconfigured to meet your requirements.
Mitigation: Levergent asks you to provide a Project Coordinator tohelp the implementation team in understanding the requirementsand to appraise the team about specific issues and problems.
5.4.2 Adaptation of New System (Change Management)
Risk:Beverage Plant, Danfa stakeholders and users may havetrouble adapting the new system.
Mitigation: Levergent will provide comprehensive training on usingthe various features of the system. Beverage Plant, Danfa is askedto assist in this effort by communicating the advantages of thesystem to their users.
5.4.3 Third Party Equipment – procured by BeveragePlant, Danfa
Beverage Plant, Danfa will be required to purchase the following items,which are not included as part of the LogicApps EMI solution:
5.4.3.1 Server
We recommend that Beverage Plant, Danfarun the LogicAppsManagement Software on a dedicated server. A server with the followingor similar specifications should be used:
Dell Power Edge R410 Rack-Mount Server with Intel Xeon X3430 Processor (2.4GHz, 8M Cache, Turbo), 8GB memory, 2 hard drives (450 GB, 15K RPM,6Gbps SAS 3.5” hot pluggable).
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