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Creating Value Through Collaboration
Creating Value Through CollaborationCollaborationCollaboration
Dick HillVP Manufacturing Advisory ServicesARC Advisory [email protected]@ARCweb.com
Wise Men Once Said…Wise Men Once Said…
“It is probably not love that makes the world go around but rather those mutuallygo around, but rather those mutually supportive alliances through which partners recognize their dependence on each other for th hi t f h d d i t l ”the achievement of shared and private goals.”
Fred Allen
“It is not necessary to change. Survival is not mandatory.” y
W. Edwards Deming
2© ARC Advisory Group
Concept: The Plant as a Node in a Value Network (CMM)Concept: The Plant as a Node in a Value Network (CMM)
Collaborative Manufacturing Management considersthe relationship between all the nodes on the Value
Network
CMM Nodes:
Network.
Process Plant
Customers
A process plant, for example, must collaborate with upstream and downstream operations
f lfill h i i
3© ARC Advisory Group
to fulfill the mission.
Today’s Operating ChallengesToday’s Operating ChallengesBusiness Enterprise Domain
Services
CustomersFulfillmentMaterials Mgt Process Plant
Operations
SuppliersValue Chain Domain
RD&E
p
Collaboration isRD&E Collaboration is essential to meet
business objectives
4© ARC Advisory Group
ProductionLifecycle Domain
objectives
Business Objectives – Creating ValueBusiness Objectives – Creating Value
Value to Shareholder
Customer Satisfaction
Health, SafetyEnvironment
5© ARC Advisory Group
Levers to Meet ObjectivesLevers to Meet Objectives
ProcessTechnologyTechnology
People
6© ARC Advisory Group
Alignment of Objectives and LeversAlignment of Objectives and Levers
ShareholderValue
ProcessTechnology
Customer S ti f ti
Health, Safety & E i t Satisfaction& Environment
People
7© ARC Advisory Group
Information and Collaboration Make it Happen
Collaboration - in the Value Chain AxisCollaboration - in the Value Chain Axis
Materials Mgt FulfillmentCustomersSuppliers CustomersSuppliers
8© ARC Advisory Group
Feedstock and Raw Material SuppliersFeedstock and Raw Material Suppliers
Topic From To
Inventory You Order it They Anticipate your need
Service Process for Resolving Eliminate Cause ForService Process for Resolving Disputes
Eliminate Cause For Dispute
Quality Inspect and Verify Trusted
O i Vi ibili R i d C ll b iOperations Visibility Restricted Collaborative
Work Processes Separate Synchronized
Relationship Supplier Customer Business PartnerRelationship Supplier - Customer Business Partner
9© ARC Advisory Group
Objective: Zero Feedstock Surprises
Customer RelationshipCustomer Relationship
Topic From To
Inventory They Order it You Anticipate their need & manage it
Service Process for Resolving Di t
Eliminate Cause For Di tDisputes Dispute
Quality Inspect and Verify You Guarantee
Operations Visibility Restricted CollaborativeOperations Visibility Restricted Collaborative
Work Processes Separate Synchronized
Relationship Supplier - Customer Business Partnerp pp
10© ARC Advisory Group
Objective: Zero Customer Disappointments
Collaboration – on the Lifecycle AxisCollaboration – on the Lifecycle Axis
Services
RD&E
11© ARC Advisory Group
Plant LifecyclePlant Lifecycle
Topic From To
Design Documentation As-Built at Startup Living Database for Operations
Design Operate and None to Limited Standards-basedDesign, Operate and Maintain Integration
None to Limited Custom interfaces
Standards based Interoperability
Plant Asset Management
Maintenance’s Responsibility for
Active Management by Both Operations g p y
Availabilityy p
and Maintenance
Design Objectives Designed for Low Cost Startup
Designed for Optimum Operation Benefits
Work Processes Separate Synchronized - DOM
12© ARC Advisory Group
Objective: Maximum Asset Performance
Product LifecycleProduct Lifecycle
Topic From ToTopic From To
Design Processes Sequential Product and Process Design
Concurrent Product and Process Design
Design - Build Integration
Design validation during startup
Virtual validation before startup
Design, Build and Service Integration
None to Limited Custom interfaces
Standards-based InteroperabilityService Integration Custom interfaces Interoperability
Design Objectives Time to ProductionLow Cost to Make
Optimize Profit of Product
W k P S t S h i dWork Processes Separate Synchronized –Digital Factory
13© ARC Advisory Group
Objective: Maximum Product Performance
Collaboration – on Plant-Business AxisCollaboration – on Plant-Business Axis
BusinessBusiness
Operations
Production
14© ARC Advisory Group
Production
Finding the Hidden CapacityFinding the Hidden Capacity
Topic From To
Production Variance Conservative Targets Push Limits
Which Machine is th bl ?
Experience Data-driven E id OEEthe problem? Evidence - OEE
Unscheduled Downtime
Reactionary Predicting
I i M l i P id dInstrumentation Behavior
Manual maintenance Program guided maintenance
Availability vs Utilization
Maintenance: AvailabilityO i U ili i
Collaboration & Work ProcessesUtilization Operations: Utilization Work Processes
Obj ti O ti i P d ti
15© ARC Advisory Group
Objective: Optimize Production
Proactive versus Reactive Energy ManagementProactive 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
C G ti U t ll d P Ti Li C t lCo-Generation Uncontrolled Power Purchases
Tie-Line Control
Production vs energy Scheduled independent
Optimize schedule and energyindependent and energy
16© ARC Advisory Group
Objective: Meet Energy Needs at Lowest Cost
Collaboration: Users and SuppliersCollaboration: Users and Suppliers
ShareholderValue
P
ShareholderValue
Customer Satisfaction
Health, Safety & Environment
ProcessTechnology
Customer Satisfaction
Health, Safety & Environment
ProcessTechnology
liPeople People
Supplier Customer
Projects, Products, Operations…
Let’s Discuss What Works and What are the
17© ARC Advisory Group
Let s Discuss What Works and What are the Results
“I not only use all the brains that I have, but all that I can borrow.” ,
Woodrow Wilson
Thank You.Thank You.For more information, contact [email protected] or visit
our web pages atwww arcweb com
18© ARC Advisory Group
www.arcweb.com