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Slide 1

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GEN-01Understanding OperationalManagement Transformation

From Home Grown MES/1st Generation MES toManufacturing 2.0/3rd Generation MES/MOMs

© 2013 Invensys. All Rights Reserved. The names, logos, and taglines identifying the products and services of Invensys are proprietary marks of Invensys or its subsidiaries.All third party trademarks and service marks are the proprietary marks of their respective owners.

Tim SowellStan DeVries

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Key Takeaways

1. The operations transformation is accelerating to much earlier newproduct introductions with much more agility

2. This transformation is driving installations to change thearchitectures, embracing standards, and adopt “model-driven”operations

3. This transformation is driving customers to use “model-driven MES”

Slide 3

1. The operations transformation is accelerating to much earlier newproduct introductions with much more agility

2. This transformation is driving installations to change thearchitectures, embracing standards, and adopt “model-driven”operations

3. This transformation is driving customers to use “model-driven MES”

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Agenda

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

Slide 4

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

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What’s Taking Place Today?

IncreasedR

egulations

Increased Constraints (regulation)Increased Competition (Globalization)

Globalization

Modern Operations Execution/Management System requires:

HomeGrownMES

Heavilycustomizedfirstgeneration

Consistency of

Operations

Positive Release of

product over Endto End Value C

hain

Safety/Environm

ent

Real-Time operational executionalignment with business strategy,natural integration

Enterprise product spec management,(PLM) across sites

Operational alignment across multipleValue Assets

Inte

grat

ion

Federation of the End-to-End ValueSupply Chain into an aligned system,and a virtual One Manufacturing System,while maintaining site uniqueness

Fede

ratio

nOperational Transformation

Slide 5

Fast

er N

ew P

rodu

ctIn

trod

uctio

n

Shor

ter R

uns

Ord

er o

f 1

Hol

istic

Vie

wEn

d to

End

Con

trol

Incr

ease

d pr

oduc

tson

Exi

stin

g As

sets

Out

Sou

rcin

gC

onsi

gnm

ent

Inve

ntor

y

Ente

rpris

e Pr

oduc

tSp

ecs

acro

ssal

l site

s

Bus

ines

s an

dO

pera

tions

Alig

nmen

t

Agility and Increased Speed onInnovation and Change

ReplacingExisting Systems• Costly to sustain• Expertise leaving• Limited Agility• No consistency

Heavilycustomizedfirstgeneration

Many differentMES/operationsystems, andExcel

Consistency of execution throughStandards in process, equipment, actions

Federation of the End-to-End ValueSupply Chain into an aligned system,and a virtual One Manufacturing System,while maintaining site uniqueness

Fede

ratio

n

Embedded Governance on practices,and KPI’s, and accountabilityModel Driven Operational Practices toenable change to support agility andconsistency of decision and action overteams and sites

Peop

le

Operational Transformation

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Critical Project Trends We are Seeing!

Slide 6

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Value Chain Enterprise Control

• Game changer: use assets differently toimprove consistency or agility

• Operate more than one linkedmanufacturing area or site together as ifthey were one, with the enterprise systems

• Use techniques such as pacing, so thatupstream areas or sites follow thedownstream areas or sites

• Constantly monitor agility, efficiency andyield performance of the value chain vs.individual areas or sites

• Drive to either lowest overall cost or highestoverall revenue yield

Slide 7

• Game changer: use assets differently toimprove consistency or agility

• Operate more than one linkedmanufacturing area or site together as ifthey were one, with the enterprise systems

• Use techniques such as pacing, so thatupstream areas or sites follow thedownstream areas or sites

• Constantly monitor agility, efficiency andyield performance of the value chain vs.individual areas or sites

• Drive to either lowest overall cost or highestoverall revenue yield Business, Operations

and Plant Floor Systemsworking together

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Current Industrial Plant Architecture

AdvancedApplicationSoftware

AdvancedApplicationSoftware

To operate in a flexible / agile manner, ERPmust link to the plant(s), but the applicationswithin the plant need to be aligned as well.

Slide 8

SafetyControl

Systems

DistributedControl

Systems

SCADASystemsManufacturing

ExecutionSoftware

HMISoftware

AdvancedApplicationSoftware

DistributedControl

Systems

DistributedControl

Systems

ManufacturingExecutionSoftware

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Profit ManagementProcess Mgmt

Real-Time BusinessTransactional Business

Holistic PerspectiveIsland Perspective

Current Industrial Business Drivers

Slide 9

Agile OperationsRigid Operations

Holistic PerspectiveIsland Perspective

Empowering PeopleReplacing People

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Profit Management

Real-Time Business

Holistic Perspective

Understanding cost, market and decisions are nowbased on business not just process control

Communication has gone from messages per dayto constantly, and real-time based upon exception

The need to align multiple systems, oftenpredefined, and federated

What this means to Industrial Architectures!

Slide 10

Agile Operations

Empowering People

The need to align multiple systems, oftenpredefined, and federated

Agile for change in applications, expansion andevolution to stay competitive, increased complexityas more applications must be aligned

Access to information abstracted from where andwhat applications it comes from, freedom to drilland request, and collaborate

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3 Generations of MES Evolutionto a Model that Enables Success

Interface-Centric Approach

Model-Centric Approach

Slide 11

Application-centric Approach

Data-Centric Approach

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Agenda

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

Slide 12

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

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Synchronizing Strategy and ExecutionSTRATEGYSTRATEGYSTRATEGYSTRATEGY

ProductionProductionControlControl

BusinessBusinessControlControl

Delay

Dist

ortio

n

“T“THEHE CCONTROLONTROL GGAPAP””“T“THEHE CCONTROLONTROL GGAPAP””

RevenueGrowth

OperatingMargin ROAIntegrated Control

Slide 13

EXECUTIONEXECUTIONEXECUTIONEXECUTION

ProductionProductionControlControl

ProcessProcessControlControl

Dist

ortio

n

“T“THEHE CCONTROLONTROL GGAPAP””“T“THEHE CCONTROLONTROL GGAPAP””

Quarters Weeks Days Hours Minutes Seconds SubQuarters Weeks Days Hours Minutes Seconds Sub--secondsseconds

Temp. Pressure Emissions

Slide 13 Invensys Proprietary and Confidential

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Business to Plant Communication TrendBecoming more Real-time!!!

1 day

1/2 day

Production Schedule integration

Quality inspectionsAsset issuesHave gone to exception-based

Message Based

Slide 14

90’s 2000’s 2010’s

1/2 day

1/4 day

Quality inspectionsAsset issuesHave gone to exception-based

Becoming live

More Real-Time

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The Drive to Agility Drives Complexityin Alignment in Real-Time

SimpleIslands of

Production(Process Units)

ModerateAlignment(Multi Unit)

Highly Aligned/Agile Production

(Site)

Highly Aligned/Agile Enterprise

(Multi-Site)ERPERP

ERPERP EAMEAMPLMPLMERPERP EAMEAMPLMPLM

Increased AgilityIncreasing Complexity between Multiple Applications/ Faster Real-Time interaction/ Dynamic nature

Slide 15

BatchBatch

Control/Sup

Control/Sup

BatchBatch

Control/Sup

Control/Sup

Control/Sup

Control/Sup

MES/MOMMES/MOM

HistHist

BatchBatch

Control/Sup

Control/Sup

ERP

Control/Sup

Control/Sup

MES/MOMMES/MOM

HistHist

EAM

LIMSLIMS

SchedSched

QualityQuality

ERPERP EAMEAMPLM

Multi-Site

AssetsAssetsMaterials Definition /Product/ Recipes/Materials Definition /Product/ Recipes/

Roles/ Security/ ResponsibilityRoles/ Security/ Responsibility

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Agility Demands a changingIntegration Landscape

Trad

ition

al E

AI

Inte

grat

ion

betw

een

Leve

l 3 &

4

Slide 16

Image - source ISA 95

Trad

ition

al E

AI

Inte

grat

ion

betw

een

Leve

l 3 &

4

Integration within Level 3

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Enterprise SOA: A Work in Progress

Web2.0

Office

Slide 17

© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

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SOA for Manufacturing (SOAm):Some Key Real-Time Differences

Office Web2.0

Slide 18

© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

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Mfg 2.0 a Convergence…or New Battlegrounds?

Slide 19 AMR Research Manufacturing Exchange © 2007 AMR Research, Inc. | Page 19

© 2010 Gartner, Inc. and/or itsAffiliates. All Rights Reserved.

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Standards-based Integration

Service bus with industry standards based integrationPoint to Point Integration

Service Bus

Slide 20

Service Bus combined with industry standard Data Model for integration

• Makes integration viable and maintainable

• Standardization across entire operations.

• Allows new applications / functionalities to be gradually introduced

• Makes it possible to Federate the integrated Data in consistentfashion

Image source: Mimosa CBM Whitepaper

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Agenda

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

Slide 21

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

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Federation of Operational End-to-EndValue Supply Chain as Virtual One

Direct Linking between Sites

Standards across the sites• KPI standards• Recipes• Equipment Standards

Slide 22

One Virtual Manufacturing Chain

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Federating the Operational Execution

Enterprise Service Bus

Federating atthe Plant/applicationslevel

Federating atthe Plant/applicationslevel

ArchitecturalFlexibility forEvolutionaryFederation

ArchitecturalFlexibility forEvolutionaryFederation

Slide 23

Unified/ Common Asset/ KPImodel across the PlantsUnified/ Common Asset/ KPImodel across the Plants

Federating atthe Plant/applicationslevel

Federating atthe Plant/applicationslevel

ArchitecturalFlexibility forEvolutionaryFederation

ArchitecturalFlexibility forEvolutionaryFederation

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WHY SOA in Manufacturing?

What is SOA?

SOA architecture allows for the creation of composite businessapplications from independent, self-describing and interchangeablecode modules called “services.”

Slide 24

SOA Brings the Opportunity for Agility/ Flexibility in Manufacturing/Industrial!

• With SOA, the idea is that the needs of the business drive the IT systems,rather than the IT systems dictating how the business runs.

• This brings about flexibility, one of the main requirements for MOMsystems as manufacturing requirements frequently change.

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What about SOA for the Manufacturing space?

SAP ERP MICROSOFT ERP

Customer 1

Customer 2

Slide 25

MES 1 MES 3MES 2

WHAT IF: Customer 1 acquires customer 2 ?

WHAT IF: Customer 1 outsources part of mfg. to cust. 2, 3?Source 2007

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SAP ERP MICROSOFT ERP

ISA 95 Mfg.ServicesRepository

Productionresource

management

Productiontracking

Detailedproductionscheduling

Productionresource

management

Productiontracking

Detailedproductionscheduling

Productionresource

management

Productiontracking

Detailedproductionscheduling

Productionresource

management

Productiontracking

Detailedproductionscheduling

ISA 95 SOA Mfg. Services:Create Production OrderCancel Production OrderGet list of Production Orders….

ISA 95 SOA Mfg. Services:Create QA Test planCancel QA test planGet list of test-results ..….

What about SOA for the Manufacturing space?

Slide 26

MES 1 MES 3MES 2

Productiondata

collection

Productionexecution

Productiondispatching

Productdefinition

management

ProductionPerformance

analysis

Productiondata

collection

Productionexecution

Productiondispatching

Productdefinition

management

ProductionPerformance

analysis

Productiondata

collection

Productionexecution

Productiondispatching

Productdefinition

management

ProductionPerformance

analysis

Productiondata

collection

Productionexecution

Productiondispatching

Productdefinition

management

ProductionPerformance

analysis

For SOA to work - We need to agree cross-industry and cross-producton terminology, structures etc. - down to data formats. Source 2007

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Truths

Why MOM andnot MES?

Wikipedia defines Manufacturing operationsmanagement (MOM) as a methodology forviewing an end-to-end manufacturing processwith a view to optimizing efficiency.

Wikipedia defines Manufacturing operationsmanagement (MOM) as a methodology forviewing an end-to-end manufacturing processwith a view to optimizing efficiency.

• What makes MOM different? Only the fact that itincludes a number of components nottraditionally part of MES and that its reach isbroader in scope than the traditional MESA 11domains of MES,.

• A system cannot be specified and designed usingthe AMR or the MESA MES definitions from the1990s. The standards definitions of MOM providethe needed framework for specifying a system’sfunctionality, tasks, and data exchanges.

Slide 27

• What makes MOM different? Only the fact that itincludes a number of components nottraditionally part of MES and that its reach isbroader in scope than the traditional MESA 11domains of MES,.

• A system cannot be specified and designed usingthe AMR or the MESA MES definitions from the1990s. The standards definitions of MOM providethe needed framework for specifying a system’sfunctionality, tasks, and data exchanges.

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Truths

Enterprise ServiceBus (ESB)

In a general sense, an ESB can be thought of asa mechanism that manages access toapplications and services (especially legacyversions) to present a single, simple, andconsistent interface to end-users via Web- orforms-based client-side front ends.

In a general sense, an ESB can be thought of asa mechanism that manages access toapplications and services (especially legacyversions) to present a single, simple, andconsistent interface to end-users via Web- orforms-based client-side front ends.

Same Principles same rules, but different focus

Slide 28

Common set of industrial services with definedcontracts, that are optimised for Industrial sites/processes:• High Volume• Determinism• High Frequency• Data types/ Time etc.• Priorities

ManufacturingService Bus

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Truths

Why MDM formanufacturing?

to Wikipedia, “Master Data Management (MDM)comprises a set of processes and tools thatconsistently defines and manages the non-transactional data entities of an organization(which may includereference data)...”

to Wikipedia, “Master Data Management (MDM)comprises a set of processes and tools thatconsistently defines and manages the non-transactional data entities of an organization(which may includereference data)...”

In Manufacturing• The absence of strong, common data

architecture promotes ungoverned datadefinition proliferation, point-to-pointintegration and parochial data managementstrategies.

• Within the manufacturing environment, allthis translates into many types of waste andadded cost.

In Manufacturing• The absence of strong, common data

architecture promotes ungoverned datadefinition proliferation, point-to-pointintegration and parochial data managementstrategies.

• Within the manufacturing environment, allthis translates into many types of waste andadded cost.

Slide 29

In Manufacturing• The absence of strong, common data

architecture promotes ungoverned datadefinition proliferation, point-to-pointintegration and parochial data managementstrategies.

• Within the manufacturing environment, allthis translates into many types of waste andadded cost.

In Manufacturing• The absence of strong, common data

architecture promotes ungoverned datadefinition proliferation, point-to-pointintegration and parochial data managementstrategies.

• Within the manufacturing environment, allthis translates into many types of waste andadded cost.

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Why Manufacturing Data Management vs.Enterprise Master Data Management!

Different levels of informationDifferent levels of Real-time

Slide 30

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Point Solutions Today!!

Not Sustainable when:• Real-time is needed• Agile changes exist• Dynamic updates on

exceptions not messages• Federating more Systems

Slide 31

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Agenda

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

Slide 32

Market/industry transformation trends

Modern Operational Management requirements

• Business System / Operational Execution Real-time Alignment

• Federation of End to End Value Supply Chain, with Standards

• Operational Empowerment of the workforce for Decisions and ActionConsistency

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Lean vs. Embedded Process

EmbeddedBusiness/ Operational

Process

Leaders in Industry

Capturing of best practices across applications to enable consistency

Slide 33

BeginAnalysis

IdentifyImprovement

Time

ManualBusinessProcess

ChangeComplete

Source: ARC

Followers in Industry

Lean Process

Value

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Model-Driven Operations Mgt.The Foundation for Process Excellence…

Slide 34

Framework for Modeling and Sustaining World-Class Processes…

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Templates

MESOperational /Production RulesWork Scheduling

Forms Alarms Events InteractionSeries of UIs bothdesk, web, roaming

Workflow is used tocapture yourOperational practicesSustainable

Potential Operations

Location

Equipment

Model-Driven Operations

Slide 35

ControlSystems

Local Platform

Interacts with ControlSystemsExisting SCADA

Objects allowvalidated / managedTransactional events

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Model-Driven Concepts Are…

NOT just for Wonderware MES solutions!!

About coordinating people and applications into intelligent,effective, governed processes that crossover application andorganizational boundaries.

Changing the way we develop and deliver “application content”for our Production & Performance applications.

Changing the way our customers configure and extend ourapplications to meet specific business needs.

Embracing the “computing convergence” by supporting multiplecomputing platforms (e.g. desktop, tablet, phone).

Differentiating Invensys in the market

Model-Driven Operations Mgt.Key Takeaways

Slide 36

Model-Driven Concepts Are…

NOT just for Wonderware MES solutions!!

About coordinating people and applications into intelligent,effective, governed processes that crossover application andorganizational boundaries.

Changing the way we develop and deliver “application content”for our Production & Performance applications.

Changing the way our customers configure and extend ourapplications to meet specific business needs.

Embracing the “computing convergence” by supporting multiplecomputing platforms (e.g. desktop, tablet, phone).

Differentiating Invensys in the market

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Model-Driven Operations Mgt.The “Composite Application Container”…

MES Design Tasks:

MES Configuration Activities:

Workflows

Package

Tools

Settings

Performance Mgt

Enterprise Console will provide thecomposite application container thathosts Invensys and 3rd party“content” in support of: design tasks, configuration activities, operator/end-user activities, and reporting & analytics

Slide 37

MES Activities:

Reporting & Analytics:

Dashboard

Recipe Mgt

Performance Mgt

Quality Mgt

Recipe Mgt

Performance Mgt

Quality Mgt

Enterprise Console will provide thecomposite application container thathosts Invensys and 3rd party“content” in support of: design tasks, configuration activities, operator/end-user activities, and reporting & analytics

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Model-Driven Operations Mgt.The Design Experience…

One Single Place to… Manage/adapt composite application business

rules Manage/adapt composite application UIs Manage extensible elements for UIs (e.g.

custom UI elements) and business rules (e.g.custom activities)

Manage application connections (e.g. URLs,middleware connections, etc.)

Manage/adapt application data accessservices (e.g. SQL queries, etc.)

Create, manage and distribute applicationpackages (e.g. all artifacts – UIs, businessrules, etc.)

Slide 38

One Single Place to… Manage/adapt composite application business

rules Manage/adapt composite application UIs Manage extensible elements for UIs (e.g.

custom UI elements) and business rules (e.g.custom activities)

Manage application connections (e.g. URLs,middleware connections, etc.)

Manage/adapt application data accessservices (e.g. SQL queries, etc.)

Create, manage and distribute applicationpackages (e.g. all artifacts – UIs, businessrules, etc.)

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Model-Driven Operations Mgt.The Design Experience…

Business Rules

Slide 39

GUIs

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Model-Driven Operations Mgt.The Configuration Experience…

MES Design Tasks:

MES Configuration Activities:

Workflows

Package

Tools

Settings

Performance Mgt

Performance Mgt.

System Settings

Model Products

Model Shifts

Model Users & Groups

General:

Model Utilization States

Model Reason CodesThe configuration experience is“task-oriented” and provides an“end-to-end” experience

Slide 40

MES Activities:

Reporting & Analytics:

Dashboard

Recipe Mgt

Performance Mgt

Quality Mgt

Recipe Mgt

Performance Mgt

Quality Mgt

Model Equipment &Line Classes

Model Equipment

Model Lines

Plant Model:

Model Reason CodesThe configuration experience is“task-oriented” and provides an“end-to-end” experience

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Model-Driven Operations Mgt.Task-Oriented, End-to-End Configuration Experience…

Slide 41

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Workflow EngineMES

Activities

GRActivities

Browser/Mobile Device

CustomActivities

InBatchActivities

AvantisActivities

Model-Driven Operations Mgt.General Architecture…

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GRActivities

MES WebAPI

MES DB Galaxy DB

GR WebAPI

CustomActivities

CustomAPI

Custom DB

InBatchWeb API

InBatch DB

AvantisWeb API

Avantis DB

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What’s Taking Place Today?

IncreasedR

egulations

Increased Constraints (regulation)Increased Competition (Globalization)

Globalization

Modern Operations Execution/Management System Requires:

Real-Time Operational ExecutionAlignment with Business Strategy,Natural Integration

HomeGrownMES

Heavilycustomizedfirstgeneration

Operational Transformation

Consistency of

Operations

Positive Release of

product over Endto End Value C

hain

Safety/Environm

ent

Enterprise Product Spec Management,(PLM) across sites

Operational Alignment Across multipleValue Assets

Federation of the End to End ValueSupply Chain into an aligned system,and a Virtual One Manufacturing System,while maintain site uniqueness

Inte

grat

ion

Fede

ratio

n

Slide 43

Agility and Increased Speed onInnovation and Change

Fast

er N

ew P

rodu

ctIn

trod

uctio

n

Shor

ter R

uns

Ord

er o

f 1

Hol

istic

Vie

wEn

d to

End

Con

trol

ReplacingExisting Systems• Costly to sustain• Expertise leaving• Limited Agility• No consistency

Consistency of execution throughStandards in process, equipment, actions

Heavilycustomizedfirstgeneration

Many differentMES/operationsystems, andExcel

Incr

ease

d pr

oduc

tson

Exi

stin

g As

sets

Out

Sou

rcin

gC

onsi

gnm

ent

Inve

ntor

y

Operational Transformation

Ente

rpris

e Pr

oduc

tSp

ecs

acro

ssal

l site

s

Bus

ines

s an

dO

pera

tions

Alig

nmen

t

Federation of the End to End ValueSupply Chain into an aligned system,and a Virtual One Manufacturing System,while maintain site uniqueness

Embedded Governance on practices,and KPIS, and accountabilityModel Driven Operational Practices toenable change to support agility andconsistency of decision and action overteams and sites

Fede

ratio

nP

eopl

e

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Recommendations

1. Review your whole needs, not just short term projects

2. Understand the SOA/ Manufacturing 2.0 Architecture allowsFederation for Alignment

3. Understand that Operational actions /practices will evolve and avoidcustomization everything must be configurable with governance

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Key Takeaways

1. The operations transformation is accelerating to much earlier newproduct introductions with much more agility

2. This transformation is driving installations to change thearchitectures, embracing standards, and adopt “model-driven”operations

3. This transformation is driving customers to use “model-driven MES”

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1. The operations transformation is accelerating to much earlier newproduct introductions with much more agility

2. This transformation is driving installations to change thearchitectures, embracing standards, and adopt “model-driven”operations

3. This transformation is driving customers to use “model-driven MES”

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Slide 46