Manufacturing IT for Multi-Country & Multi-Site Companies · Accenture Plant and Commercial Services Energy (Downstream and Upstream) Chemicals & Natural Resources Utilities From

Manufacturing IT for Multi-Country & Multi-Site Companies

Copyright © 2013 Accenture All rights reserved.

Today’s Agenda

For the coming 30 minutes:

• Introduction

• Accenture, APCS & References

• Trends & Challenges in Multi-Country, Multi-Site Companies

• Success Factors

• The Template Approach

• Accenture Innovations

• Business Benefits

2


Presenting Ed Smits…

20 years of passion for Manufacturing IT Systems

3

Functional Expertise:

• Solution architect multi-site

• Delivery & Program Management

• Data Historians & DCS-Level Integration

Industry Expertise:

• Chemicals

• Metals

• Pharmaceuticals

• Batch & Continuous Processing

• OPC, UML, ISA95

Experience:

• Global Manufacturing IT

• Transformation Programs


APCS is a suite of offerings designed for asset-intensive companies across industries

such as chemical, steel, metals and mining, pulp and paper, oil and gas, and utilities.

• We collaborate strategically with companies to assess opportunities to address their

challenges and determine strategies for optimally aligning plans with overall corporate

priorities

• We work toward the overarching objectives of seeking the highest return on

investments and achieving high performance

• We implement industry best practices and leading

solutions that connect the shop floor to the C-Suite

• We can work with clients from strategy through operations

Presenting APCS

Acccenture Plant & Commercial Services (APCS)

4


Presenting APCS: Trends in Multi-Country,

Multi-Site Companies

6 industry trends drive the adoption of APCS capabilities in Chemicals &

Natural Resources

5

Mining

Metals

Chemicals

Aging legacy Programmatic

approach Plant efficiency

Technology

Evolution

Environment,

Sustainability Talent shortage

• Difficult to sustain

• Penalized by talent

retirement /

shortage

• CIO led / COO

supported

programmatic

approach in FC /

DC´s in MES, EHS

and M&R areas

• Need to gain

further plant

operational

excellence

− Quality

− Service

− Costs

• Remote operations

• Adoption of

standard solutions

• Integration with

ERP

• Better Process

control

• Better visibility and

reporting / analytic

capabilities

• Licence to operate

becoming

demanding in EHS

• Need to operate

with less people

• Need to leverage

deeply skilled

people

• Ability to attract

talent

APAS impacts the entire industry value chain (sample Mining > Metals)


Commercial Optimization

• Commodity Trading & Risk Management

(CTRM)

• Manufacturing Supply Chain

Plant Optimization

• Operational Excellence

• Maintenance & Reliability

• Manufacturing Execution & Automation

• Environment Health & Safety

Accenture Plant and Commercial Services

Energy (Downstream and Upstream)

Chemicals & Natural Resources

Utilities

From feedstock to retail, Commercial

Optimization brings together pieces of the value

chain by implementing a collaborative

environment that supports fast & proactive

decision making & responds to the need of a

highly dynamic & volatile market.

Plant Optimization is comprised of solutions and

services to help companies managing their

plants improving uptime of plant and equipment,

increasing operational performance and

supporting compliance with environment, health

and safety regulations.

Presenting APCS

6


Presenting APCS: Presence in Process Automation

Long term commitment to strategic initiatives with global dynamic right-

sized teams

Customer Project Outcome

Major Chemical Companies

Joint Venture

• Implementation lead

• Greenfield MES

• Template, 42 plants

• Aspentech SAAS

• Decreased in implementation

time, adapted to local go-live

• Vendor part of team

Global Top 20 Chemical

Company

• MES SAP Rollout,

based on 30 functions

• CoE 300 persons

• Standards reduce functions

• Increased usability and reliability

Global Top 20 Chemical

Company

• MES Global rollout

60 plants,

• 2 BU’s

• GE Embedded partner

• Second BU at half the time (30

extra sites)

• Reduced project risk

7


Context of Manufacturing IT & MES

We follow the trends according to International Standards

(ISA 88 & 95 & 99)

8

Manufacturing Operations Business Processes

Integration Security

Maintenance

Management

Quality

Operations

Production

Operations

Inventory

Management

Performance

Management (KPI)

Performance

Analysis Document Control

Visualization &

Decision Support Collaboration

Raw Materials

Products

Energy/Utilities

Configurations

Management

Regulatory

Compliance

Activities of a manufacturing facility that coordinate the personnel, equipment, material &

energy in the conversion of raw materials and/or parts into products ISA-95

http://images.google.co.za/imgres?imgurl=http://www.houstonisa.org/assets/images/ISA2ColorPos.gif&imgrefurl=http://www.houstonisa.org/&h=647&w=686&sz=28&hl=en&start=6&tbnid=-4wQxIpJNFtUWM:&tbnh=131&tbnw=139&prev=/images?q=ISA+&gbv=2&svnum=100&hl=en


Trends & Challenges: MES Challenges

The Recognised Approach is to create a MES Template and to roll-out

programs

MES Challenges

• BU Initiatives

• Site initiatives

• Differences between sites

• Hard to define/quantify a MES business case

9

Reduced Operational Excellence

• Slow Implementation hinders product development

• Fragmented landscape with many vendors

high IT maintenance


Trends & Challenges: A practical case

What were the main MES themes?

• Context: Global specialty chemical company; with

roughly 200 plants, constant carve in/out & new

strategy (reorganization)

• MES themes; Operational Excellence:

− Maximum use of limited reactors and operators

− Minimum working capital, optimal

logistics/inventory

− Optimize Product Development

− Optimize quality, minimize rework, minimize

degrades

− Reporting: Load balancing, benchmarking,

environmental license, OEE

− Maintenance concept (from scheduled to

predictive)

10


Success Factors

From our past experience, success has originated from:

11


The Template Approach: The Project Approach

12

Design & Template & Pilot Roll-out, Monitor & Improve

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q2 Q3 Q4

Type 1 Medium Complexity Low Complexity Type 2 Type 3 High Complexity

Pro

ject

Initia

tion

Template Realization

And Acceptance

Value identification and realization of early benefits

Value Realisation

1 – Develop

BPM Templates

3 – Industria-

lized Roll-out

BPM Center of

Excellence

2 – Pilot

Implementation

Maturity level 1 Maturity level 2 Maturity level 3 Maturity level 4

Solu

tion P

lannin

g

Incidental Template Extension & Acceptance Multi-Year Roadmap

BPM Life cycle

management Monitor and improve BPM at deployed locations

Program Management Program Management / Integrated Change Management / PMO

Value Realization

Roll-Out

Toolbox

Roll-Out

Toolbox

Roll-Out

Toolbox

NL EUR Latin America Notth America

NL EUR

Europoort

NL

Maas

Vlakte

NL

Banyan

(Asia)

Sebarok

(Asia)

Fujairah

(UAE)

Terminal simple/ small

Terminals marine/ multi type

Terminals large/complex


The Template Approach: The Roll-Out

Approach to the roll-out: The business owns the roll-out,BPM drives the

project, supports and governs the roll-out.

13

Input Prepare Build Deploy Follow up Output

Mobilize

deploy team

Progress

reporting

Progress

Reporting

Lessons

learned

Prepare

Build

Execute

Build Modify Build

Lessons

learned

Business

Impact

Assessment

Change

Interventions

Business

Readiness

Lessons

Learned

Kick off

meeting

Newsletters/

Status calls Celebration

Lessons

learned

Prepare

testing

Execute

testing Fix issues

Lessons

Learned

Prepare

Training

Prepare

Training

Execute

Training

Evaluate

Training Training

Technical

Testing

Project Mgt

Comms

Change Mgt

BPM Support

BPM CoE Support

BPM COE

Support

Business Benefits

Site Configuration

Lessons Learned

Site Sign Off

Site Readiness Plan

Planning

Local Team

Roll Out Package


The Template Approach: Wave Planning & Deployment

(Terminal) Dashboard

14

Rollout Status (Simple/Small)

On Site

Division Terminal In P B D F Out

NL

NL

NL

EMEA

EMEA

EMEA

EMEA

EMEA

EMEA

Asia

Asia

Latin

Latin

Latin

Latin

Latin

Latin

Latin

Latin

Latin

Latin

Latin

VNA

VNA

VNA

VNA

VNA

VNA

VNA

Rollout Status (Medium)

On Site


NL

NL

NL

NL

EMEA

EMEA

EMEA

China

Asia

Asia

VNA

Rollout Status (Large / Complex)

On Site


NL

NL

EMEA

Asia

Asia


The Accenture Innovations: Change Management

Organizational transformation or improvement, assume correct

behaviors to sustain successful use of technological solutions and new

processes

15

Manage performance and

realise benefits

Manage change and

mitigate risk

Mobilise leaders

Engage & communicate

with stakeholders

Align the organisation Prepare the workforce

Drive ongoing behaviour

change

Plan change

Change

approach


Business Benefits

MES Capabilities1

16

ISA95 Dimensions Production Maintenance Quality Inventory

Trend comparison

Tank-level publication, enable

VMI

Less manual, less faults

Insight finished goods,

production progress

OEE

Sustainability

Environmental License

Regulatory Compliance

Production Information

Process Reporting

Quality Management

Production Execution

Maintenance

Management

Waste Management

Dashboard

Operational performance

management

P

M Q

I

P I

P

Q

P

M

P

M Q

I

P

M Q

I

P

Q

I

P

M

Increase Information

Availability

Increase Information

Usage

Increase Process

Awareness

Increase Revenues

Decrease Costs

Ind

ire

ct

€

MES objectives Business benefits


Wrap-Up

Prepare for transformation!

Multi-site, multi-country also means:

Multi-year and multi-function!

Thank you for

your attention

17


Appendix: The Accenture Innovations: Change

Management

The success of an implementation is the result of both the solution and

the execution.

18

Awareness Understanding

Acceptance

Commitment

Lev

el o

f accep

tan

ce

Confusion

Negative Perception

Decision not to support

Implementation Change Aborted after

Implementation

Time

Robust Change Management approach

Stakeholders are supported and engaged which reinforces a

positive change journey

Risk of limited Change Support

Stakeholders are not supported appropriately during the change

process, which increases resistance and causes the failure of

the programme

“I heard that the

capability phase of

TAS is happening in

the Programme

Launch session”

“I understand what TAS

will mean for Vopak and

me personally and know

where to find more

information”

“After the day-in-a-Iife

simulations I am willing to

begin working in new

ways and adopt new

processes and systems

and make them work”

“I support the changes

TAS brings and am

committed to doing what

it takes to make it a

success” Ownership

“I don’t understand

why Vopak is

implementing TAS” “TAS mainly means

more work and less

autonomy”

“I will keep working as I

am used to do”

“As soon as the programme

has ended we start doing the

real work again”

“I fully utilize TAS in my

daily work and

experience the

benefits”


Appendix: Value tracking – Program and Individual

Measuring the progress of the transformation with hard data ensures successful

business change against the objectives that were set in the business case

19

Change Measurement

• Regular temperature check during each

phase.

• Employee feedbacks are effective ways

of measuring change and can generate

important insights about the change

process.

• Employees fill in survey of 20 questions.

• Call 10 end users per week per Change

Team member to get an indication of the

engagement of the end users and to have

a dialogue (listen to feedback and clarify

business reason and where to find more

information).

Performance Management on a daily

basis

• Using team meetings, reporting and

dashboards for process management

and optimization.

• From reactive to proactive, explaining to

forecasting; from understanding process

drivers to using right levers for

continuous improvement.

• Managers are asked to discuss their

groups performance on TAS KPIs (use of

the tool, quality of the data, etc.)

Business Value (Individual level)

• Understand the level of engagement of

the end users and stakeholder groups to

adapt the change interventions

accordingly to ensure a successful

adoption of the new way of working.

• Employees can have the option to give

continuous feedback on possible

improvements or negative situations,

hence feeling involved in the growth of

company during the process of change

Business Value (Program level)

• Team meeting is heartbeat of the

organisation, output driven on KPI’s,

actions and roles & responsibilities.

• Clear accountability and clear information

on TAS performance (in first instance:

adoption of the new tool and way of

working)

• Quick adoption of TAS on the selected

sites for roll-out.

How will we track Success?


Appendix: Setup a CoE for Manufacturing IT

Ownership and competence needs to be governed

20

Current Situation

• TAS systems are at the centre of the

operation

• Multiple disciplines involved, AT and IT

• Ownership rarely clearly defined

• Change management and aftercare

essential

Feasibility Check

• Change management integral part of the

approach

• Organize community: BPO, Ambassador,

site contact

Accenture Vision

• The technology itself is not the bottleneck

• A multi disciplinary approach required

• Involvement of Vendor in the right role

required

• Alignment of AT & IT

• CoE to enable roadmap & future proof

architecture

Business Value

• Utilize the right persons and parties at the

right place

• Harmonized processes, harmonized

information, enabling operational

excellence

• Long term Business benefits by

supported transformation

Ability to manage

infrastructure MES patterns

and concept

knowledge Ability to support

applications

professionally

IT skills: network,

databases, etc.

Operates with low

total cost of ownership

Global vision

aligned with

business

Centralized

management Better level

4 APP knowledge

Familiarity with the

infrastructure required by MEs

Presence

in the plant

Experience in real-time environments

24x7 plant support

Better knowledge

of level 1 and 2

applications

Better knowledge of

manufacturing processes

0%

100% 0%

100%

AI IT


Appendix: Setup a CoE for Manufacturing IT (Cont’d)

21

High

Low

Operational

Performance

and Value

Data

Capability Range and Collaboration Breadth

Models Applications Work Process High

Data

Aggregation

Data

Information

Knowledge

Understanding

Increasing Value

of Knowledge

Inbound Supply

Chain Synchronization

Planning and Scheduling

Advanced Process

Control

Operational

Decision Support

Modeling and

Simulation Process Monitoring

Equipment

Monitoring Analysis

Contextualized

Data

Data

Collection Data

Visualization

Reporting

Fault

Detection

Predictive

Analytics

Process

Optimization

Outbound

Supply

Chain

Synchronization


Appendix: Ramp up an MES CoE

Delivery of an MES CoE either internally or as a managed service

22

Current Situation

• Vopak is planning the roll out of a new

component in their system architecture.

This will require creation of a new MES

capability in their organization.

• Given the business benefit, a rapid roll

out would be desirable. This would have

the following implications:

Implementation of an MES CoE in a

very short timeframe

Flexibility in resourcing levels

• MES Skills are scarce in the market

Feasibility Check

• Accenture Plant & Automation Solutions

has over 1500 people within our

communities of practice (Netherlands,

India, Brazil)

• Outsourced support of MES is currently

being delivered by Accenture in the

metals industry

Accenture Vision

• Support a rapid MES deployment

program through leveraging the

Accenture MES capability

• Depending on the business need the

ramping up of an MES CoE could be

achieved to various extents from:

Organizational design, recruiting,

training and deployment of an internal

MES CoE

to

The delivery of MES serviced as part

of a BPO service

Business Value

• Business benefits of MES is not delayed

by operational requirements of a ramping

up a CoE to sustain these benefits

• Learning curve of growing a new

capability is bypassed through accessing

high maturity processes and capabilities

through Accenture

• Flexible resourcing levels

• Delivery from low cost geographies

• Global footprint means that skills can be

delivered in the location and language

required


Accenture Vision

• Requirements gathering and change

combined, holistic approach

• Integral team to find commonalities and

respect differences

• Treat integration as a separate

workstream

• Isolate aspects in PoC separate from

common Template

Appendix: Requirements management

Ownership and governance during project life cycle

23

Current Situation

• Scattered Manufacturing IT landscape

• Unclear ownership, often local initiatives

• Carve in / carve out complications

• Different ways of working

• No clear information, Analytics

unsupported by shopfloor

Feasibility Check

• Often more commonalities are found than

expected

• Pilot plants are pivotal for technology and

team alignment

Business Value

• Futureproof setup for Template beyond

go-live


Appendix: Accenture Change Management: A

Differentiator

24

Rati

on

al

Em

oti

on

al

Rich ‘Change Enablement’

Methodology & Estimator

• Captures our global CE

experience

• Toolkit + templates and

examples (‘change

management in a box)

• Don’t reinvent the wheel

Robust change

management

methodology and

box of tools as the

foundation for our

work

Creativity & Engaging Solutions

• Balance ‘method’ with need

for creative solutions

• Partnering for innovative

solutions and

credential/door-openers

Creative

‘Interventions with

teeth’ & partnering

for innovation Change

Branding

Creative

‘engagement’

Complementary change

partners

Serious

Gaming

Data-driven:

• Turning art into science

• Increase predictability

• Repeatable

Data-driven/

proven tools

Change Readiness

Scorecards

Learning Approach and

Curriculum

ChangeTracking®

Documents

Manufacturing IT for Multi-Country & Multi-Site Companies · Accenture Plant and Commercial Services Energy (Downstream and Upstream) Chemicals & Natural Resources Utilities From