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MES Implementation at Chr. Hansen A/S DAU Agile MES, September 2013

ToC

Chr. Hansen A/S

MES history and status

Implementation strategies

SCRUM at Christian Hansen Production IT

DAU, Agile MES 2

CHR. HANSEN A/S

3 DAU, Agile MES

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We are

A global supplier of bioscience based

ingredients to the food, health,

pharmaceutical and agricultural industries

We mainly produce cultures and dairy

enzymes, probiotics and natural colors

Our leading market positions stem from

innovative products and production

processes, long-term customer

relationships and intellectual property

Chr. Hansen scientists

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Chr. Hansen in brief

Chr. Hansen HQ

Hørsholm, Denmark Founded in 1874 in Copenhagen by Danish

pharmacist Christian D.A. Hansen

Listed on NASDAQ OMX Copenhagen

2011/12 turnover EUR 699 million

Organic growth ambitions of 7-9% annually

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Chr. Hansen globally

6

Customers in approx. 140 countries

Production facilities on five continents

Subsidiaries and representative offices in 30 countries

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milk

7

Cultures & Enzymes Division

We develop and produce cultures, enzymes

and probiotics for the dairy industry in

particular

… and for the food industry in

general – e.g. for wine and meat

Our ingredients determine taste,

appearance, nutritional value and health

benefits

We are the global market leader in dairy

ingredients

Actually… every other cheese in the world

contains our enzymes

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We develop and produce natural colors for

the food industry

We focus on natural colors in:

Beverages

Confectionery

Ice cream

Dairy and fruit preparations

Prepared Food

Our colors originate from natural sources

like berries, roots and seeds

We are global frontrunners in

encapsulation and stabilization techniques

Natural Colors Division

natural color

8

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probiotic tablets

9

We develop and produce products for

dietary supplements, pharmaceuticals,

infant formula and animal feed

Our key offering is probiotic cultures with

documented effect

For humans

For animals

We believe in strong research and

documentation through clinical study

program trials

Health & Nutrition Division

MES HISTORY AND STATUS ONCE BITTEN…

10 DAU, Agile MES

11

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Do

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atc

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3.4 Batch

Release

2.2 Batch

Execution

4. O

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De

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nt

1. P

lan

nin

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Sch

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3.4 Batch

Release

3.1

Receiving

Sample

4.2

Prioritization

and Analysis

1.1 Demand

4.5 Process/

Product

development

SAP R3

3.3

Evaluation

1.2 Global

capacity

planning

4.1

Production

follow-up

4.4 Trial

Management

MES Scheduler

2.1

Production

Preparations

3.2 QC

Analysis

4.1

Production

follow-up

2.1

Production

Preparations

1.4

Production

scheduling

1.3

Production

planning

2.2 Batch

Execution

Batch Manager

4.3 Global

Control and

Coordination

1.4

Production

scheduling

2.3 Batch

review

WW Operations

3.3

Evaluation

LIMS

2.2 Batch

Execution

4.4 Trial

Management

Workflow mgt.

Overview and

evaluation screen

APO

What do we have, Solution landscape Processes and IT mapped

DAU, Agile MES

SAP APO LIMS

IBS

label

BO

Global

Local

WW

Historian

EMI

WW Performance

WW

Operation

Local

Gathers and calculates production performance data (optional)

Prints product and sample labels

Holds orders and material data

Plan production sequense (optional)

Holds lab and sample data Report

builder

BizTalk / B2MML Interface

BatchML

Interface

WW

InBatch

Holds time series recorded during production

Data warehouse for production data

Holds product specific recipe parameters, builds and downloads recipes

Executes production according to recipes, main operator interface

DAU, Agile MES 12

NEW IMPLEMENTATION STRATEGIES

13 DAU, Agile MES

Application life cycle Background

Evaluate Implement Consolidate Mature Phase out Retired

Project

Operation & mainteance

Archived

Strategic portfolio Legacy systems

Application is

evaluated for ”fit

for purpose” and

business benefits

Application is

developed, tested

and deployed into

production

Bugs and child

diseases are

eliminated

Application is

realising the

planned business

benefit

Application is no

longer adequate

for the business

and is therefore

being phased out

Application is no

longer running in

production, source

code data and

documentation is

archived

14 DAU, Agile MES

Application life cycle Three implementation scenarios

Evaluate Implement Consolidate Mature Phase out Retired

Project

Roll out

Archived

15

Project model processes then SCRUM

Application management processes then SCRUM

1

2 3 Release management

DAU, Agile MES

CH Engineering Project Model

DAU, Agile MES 16

Idea Conceptual Brief Basic design /

Pre-project Execution Hand over

Business case

How to proceed

Overall scope,

basic schedule,

Price estimate

(50%)

Resources estimate

Time schedule

Price estimate (30%)

Resource need

Implementation possibilities

Risk profile

Any change management?

Overall scope

Time schedule

Budget (10%)

Implementation plan

Risk assessment

Identify stakeholders

Org. + Resource plan

Describe tech. scope

Prepare all requirements

doc.

Prepare relevant design

doc.

Document list

Signing off contracts

Follow-up on time, budget,

design/quality

Manage the team, StC and

stakeholders

Manage the detailed

engineering phase – focus on

scope, budget, quality &

time

Follow-up on progress, time

and budget

Roles and

responsibilities must

be agreed

Are the goals and

success criteria met?

(Re-visit the charter)

Close the punch list

Prototyping

foundamental

functionality and

application infra

structure to

minimize

risk…using

SCRUM.

Full SCRUM to

develop MVP (Core)

1

Core construction

17

Prototype

•Prototyping fundamental functionality and application infrastructure to minimize risk

Core

•The part of the prototype eligible for roll-out in phase 1 is defined as Core

Roll out I

•Core is roll’ed out on one production site

Refine Core

• Core is refined based on analysis of the applications Fit to Purpose

Roll out II Next wave

•CH production IT Core is ready for roll out on next Site / line. Or next wave of functionality is implemented

The Core is CH best practice for

production IT. It is a proven

concept ready for full or partial roll

out on CH. Refined core

Planning

Batch execution

Batch approval

Optimization

Core

DAU, Agile MES

1

Easy on the HMI, Perfection

is the enemy of good

Application life cycle Roll out

Evaluate Implement Consolidate Mature Phase out Retired

Project

Roll out

Archived

18

Application management processes then SCRUM

1

2 3 Release management

DAU, Agile MES

Mainly business process harmonization

Site / production line:

As-is assesment

To-be definition

upgrade roadmap Plant 5

Plant 1

Plant 3

Plant 4

Plant 2

Target is enterprise "best practice"

19 DAU, Agile MES

Roll out Creating the basis for MES

2

Implement using SCRUM

Roll-out Looking into the As-Is picture

20

2

DAU, Agile MES

Application life cycle Release management

Evaluate Implement Consolidate Mature Phase out Retired

Project

Roll out

Archived

21

Application management processes then SCRUM

1

2 3 Release management

DAU, Agile MES

Release management Governance

22

Change prioritisation

System management

Portfolio management

Production IT Portfolio

Board

LIMS Board

LIMS Change Board

MES Board

MES Change Board

Reporting Board

Reporting Change Board

Label Board

Label Change Board

3

DAU, Agile MES

Release management Building release content

23

System Board

Change Board

Site Coordinator

Super User

Users

Super User

Users

Site Coordinator

Super User

Users

Super User

Users

Change requests

DAU, Agile MES

3

Release management Process overview

Change request (CR)

originates from user and is

registred in ticket system

CR is evaluated,

qualified and estimated by system team

CR is presented to Change board and prioritised

Prioritised CR’s are bundled into release

and funding is approved by System Board

Release is implemented using SCRUM

24 DAU, Agile MES

3

SCRUM AT CHRISTIAN HANSEN PRODUCTION IT

25 DAU, Agile MES

26 DAU, Agile MES

9 10

Timeline

27 DAU, Agile MES

1 2 3 4 5 6 7 8 9 10 1 2 3 4

Sprint

Days

Morning meetings

Grooming and

Planning next sprint

Grooming and

Planning next sprint

Demo, technical

challenge round

Tools

28 DAU, Agile MES

Still using Gantt charts to

overall planning

ScrumWise for SCRUM

And…lots of Excel…

QUESTIONS

29 DAU, Agile MES