achieving full manufacturing integration

achieving
full manufacturing integration
sustainable, effective and agile operations
Your business technologists. Powering progress
The greatest gains in manufacturing over the next
five to 10 years will be made by companies that
understand the value of integration across function,
department and process. Only integration can deliver
the actionable intelligence needed for enterprise-wide
collaboration – and that collaboration is the key to the
reduced time-to-market and greater flexibility needed
to satisfy customer demand.
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Achieving full manufacturing integration – sustainable, effective and agile operations
Integrated
manufacturing:
what and why?
Manufacturing has made huge progress in recent years: automation
levels have increased in all manufacturing sub-sectors and third
party suppliers now have better vertical skills, geographical coverage
and greater scalability. The number of products and product variants
has exploded. Globalized capability has become the foundation of
cost reduction.
Manufacturers have managed all these
pressures. They have achieved high-level
optimization across all areas of the value
chain: in product development, in production
planning and execution, in logistics and
post-sales services. As manufacturers seek
to outperform the competition, they are
now strongly focused on the challenge
of achieving new levels of integration.
Integrated manufacturing: not
just IT, but transformation
Future growth is driven by not accepting the
disconnected functional silos. The best and
most advanced companies are taking the
tough, but rewarding route of integrating,
redesigning and streamlining processes
and systems into one unified business platform.
Technology will enable smooth integration of
the full sustainable value chain and operations:
product development (PLM), production
planning (ERP), production execution (MES /
MOM). Systems that used to be called ‘MES’
(Manufacturing Execution Systems) have
now evolved into encompassing, integrated
solutions for the shop floor: Manufacturing
Operations Management (MOM) solutions.
Integrated manufacturing uses the data and
information from multiple discrete systems
to build a complete and actionable picture,
spanning operational planning and business
performance analysis.
As business technologists, Atos are experienced
in all these areas of the manufacturing value
chain. With deep experience in industry-specific
system integration, manufacturing is in our
DNA – Atos is ready to help you achieve the
full integration that will be the foundation of
your future success.
Integrated information availability; increased
production flexibility; supplier integration;
managing global production networks. To
achieve all these things, you must do more
than simply adjust IT. This can mean
transforming the way you operate today.
In part, this is about IT systems and
applications, and demands:
„„Comprehensive knowledge and
understanding of the IT systems and
applications used in production and
in business administration
„„The ability to create accurate and timely
‘shop floor to top floor’ intelligence,
monitoring manufacturing performance
and linking to business processes
„„The ability to use this intelligence to make
meaningful decisions in real-time.
Manufacturing is not
one industry
Manufacturing is massively varied. Not only
are the sub-sectors very different – every
individual enterprise has a different starting
point. Atos understands these differences,
and has deep knowledge of best practice
in many manufacturing sub-sectors. This
depth of knowledge delivers clear benefits
for our customers:
„„Implementation is fast and secure
„„We apply sub-sector best practice
for every customer
„„We have an end-to-end approach,
managing change effectively throughout
the transformation.
IT is the enabler for integrated
manufacturing, but for
successful implementation
you must align processes,
organization, and culture.
IT skills and knowledge are indispensable
in achieving manufacturing integration
– but they are secondary to cultural and
operational understanding.
Atos has the skills and proven capabilities
needed to manage these transformation
programs on an enterprise-wide scale.
Achieving full manufacturing integration – sustainable, effective and agile operations
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Full scope
integration
Full scope integration focuses on interoperability between business
planning and shop floor operations. We enable synchronization
between machine-to-machine systems and production planning,
aligning engineering and production operations.
Case for action
Manual and time-consuming alignment
between different functional teams is
substituted by seamless workflow across
the underlying systems.
The IT challenge is to enable personalized
collaboration between operators using ERP,
PLM, and MES / MOM platforms, along with
other legacy systems involved.
Supply chain
Suppliers
Business planning
and logistics
Production
orders
Product &
process
Engineering definitions
Production
workflow
Customers
Reporting
Shop floor operations
As business technologists with proven
experience in this field, we know that
there is no simple ‘off-the-shelf’ solution
for integrated manufacturing: every
engagement will reflect your specific
manufacturing environment.
The starting point will always be a
collaborative examination of your business,
with focus on your existing levels of process
and information integration.
We will then map this formal analysis against
the best practice of your industry sector
peers. As an example, our patented and
proven M4MES methodology has been
developed to formalize the Atos approach
for manufacturing execution environment,
implementing best practices, industry
sub-sector libraries and methods.
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Factory equipment Applications
and devices
Atos answer
Communication/
Collaboration
PLM
Enterprise Content
Management
ERP
Business
Intelligence
After
sales
MES / MOM
Control systems
Sensors & Actuators
Achieving full manufacturing integration – sustainable, effective and agile operations
The Atos system target for integrated manufacturing is primarily focused on creating information
transparency across three application and process areas: MES / MOM, ERP and PLM.
Manufacturing Execution Systems /
Manufacturing Operations Management
Enterprise Resource
Planning
Product Lifecycle
Management
MES / MOM has already come a long way since its original
inception as a means of managing work in progress on the
individual factory floor. The real return will only become
evident, however, when:
Although ERP in manufacturing is
highly sophisticated, the physical
disconnect with production systems
remains problematic.
Although PLM usage is as diverse
as the output of the many different
manufacturing sub-sectors, certain
themes are common.
„„MES / MOM is used to drive consistency and best practice
across all sites
When, for example, one of the main
objectives of ERP is to maximize
utilization, how can this be achieved
when the real-time view of machine
status is hidden in a different system?
The need to track an individual product
or batch, for example, is critical. This can
only be done intelligently and effectively
if the circumstances of production are
in sync – and that demands integration
with the wider production picture.
„„MES / MOM production data is able to immediately
influence the quality of overall Enterprise Resource Planning
„„Production learnings are bonded to Product Lifecycle
Management systems.
Although MES / MOM, ERP and PLM are our
main targets, the scope of Atos Integrated
Manufacturing extends further into processes
and systems that in even the most advanced
manufacturing enterprises are generally
regarded as self-contained.
This is not a patch
Many of the world’s best-known brands
in manufacturing trace their roots back a
hundred years and more. Even the stars of
digital technology have now moved from
adolescence to early middle age. All serious
manufacturers want to build long-term
reputation and sustained success – and all
understand that the ‘killer application’ is
an illusion.
Achieving information integration across
business and operational systems is not
about installing the latest package. It’s about
commitment and vision, underpinned by
clear and well-founded expectations of
the results.
Atos will ensure that realistic expectations are
set and results measured accordingly.
Achieving full manufacturing integration – sustainable, effective and agile operations
In recent integrated manufacturing
engagements in the automotive sector, for
example, our clients have made significant
and quantifiable advances:
„„Cost reduction
„„Productivity
2 - 5%
10 - 15%
„„Resource utilization
10 - 20%
„„Stock reduction
25 - 50%
„„Throughput time
10 - 20%
„„Delivery reliability
5 - 10%
„„Planning accuracy
25 - 80%
As business technologists, Atos has the
technology skills, and the sector and process
experience to make your integration initiative
a success – but this will only happen if we
open up the partnership beyond pure IT.
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Integration and
sustainability:
plant and planet
The pursuit of sustainability in manufacturing cannot be separated
from the pursuit of information integration. This is true at the level of
both plant and planet – the bigger the scope, the bigger the reward.
Atos always regards sustainability from three perspectives. From each point of view, the
importance of integrated approaches to manufacturing stands out clearly.
Environmental
sustainability
Social
sustainability
Economic
sustainability
Every manufacturing company
needs to minimize negative
environmental impact. The
moment that information
transparency is achieved between
MES / MOM, ERP and PLM then
new and immediately actionable
possibilities will be revealed.
All successful manufacturers know how
to balance the proactive and reactive.
You need to know what the market wants
on the one hand, and you need to know
how to drive market behavior on the other.
Agility is the key here, and the ability to
turn observation into action can only be
effective when client-facing systems are
able to interface intelligently with planning
and production.
Integrated manufacturing is pivotal in achieving economic
sustainability. It’s always tougher to earn money than to spend
it, and waste of any kind remains the perennial enemy in
manufacturing. Only intelligent information transparency can
minimize inventory and maximize utilization – right across the
extended enterprise.
How often, for example, does a
competitor get to market before you
simply because their information flow –
from observation and idea to action –
is more open than yours?
Value enhancement and innovation are just as important as
cost and waste reduction. Enabling new ways of operating,
enhanced collaboration and information sharing, the open
exchange of ideas with external stakeholders, and sustainable
innovation all drive growth.
How often, for example, do
two half-filled trucks leave the
same plant going to the same
destination at the same time,
simply because systems don’t
join up?
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How often, for example, is routine maintenance carried out
according to schedules that ignore actual production pressures
or order books?
Achieving full manufacturing integration – sustainable, effective and agile operations
Achieving full manufacturing integration – sustainable, effective and agile operations
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Why trust Atos?
The move to integrated manufacturing, in which information
transparency and collaboration between MES / MOM, ERP and
PLM is core, demands solid technical and process expertise.
Unlike many pure IT players, Atos’ focus
extends right down to operation and control
and production systems. We always consider
technology in its specific business context. We
can establish and exploit the bridge between
operational and business systems in real-time –
and real-time is critical in fulfilling the potential
of any integrated manufacturing approach.
When making the transformation, the quality
of integration with legacy systems will always
be critical. Atos has technical, process and
legacy system knowledge in abundance. In
July 2011, we significantly extended these
capabilities with the acquisition of Siemens IT
Services and Solutions, which enabled us to
grow our center of excellence for sustainable
integrated manufacturing.
The overarching application architecture is the
technical foundation of any effective integrated
manufacturing approach. Here too, Atos can
point to strong working partnerships with key
technology players, including Siemens, SAP and
other third party specialists including Apriso,
OSIsoft and Invensys Wonderware.
Beyond technology, however, where we
really stand out is in terms of sector-specific
knowledge on the one hand, and culture and
geography on the other:
„„Like many of our manufacturing clients,
we are a global company – and that means
knowing how to benefit from local difference
while pursuing international consistency
„„We have been leading major transformation
projects for both local and global customers
helping them to manage the soft factors so
critical in successful business transformation
„„Atos is recognized as a world leader in
sustainability solutions. In 2012, we won SAP’s
Global Sustainability Partner of The Year
Pinnacle Award due to our client value-add
approach to sustainability solutions.
„„In high-tech and engineering, automotive,
aerospace, chemicals, pharmaceuticals,
consumer packaged goods and pulp and
paper, Atos has manufacturing consultants
who will always lead with business and only
then bridge to IT
MES / MOM: formal analysis and practical action
MES / MOM is central to any integrated
manufacturing approach. Among
manufacturing businesses, MES / MOM
maturity differs widely – with larger
enterprises often struggling with maintaining
the consistency of multiple home-grown
solutions and smaller businesses focussed
on taking the first steps.
Atos has invested in the development of
a strong suite of practical MES / MOM
consultancy and analysis services.
These stand out because of their use of subsector profiles and best practice templates.
This knowledge and experience in
MES / MOM is embodied in our M4MES
methodology and toolset. M4MES is not
generic: its highly developed and industryspecific libraries allow you to map your own
status and ambition against the best practice
benchmarks of your industry peers.
Best practice industrial libraries
Process library
Chemicals
Consumer
packaged goods
Discrete library
Aerospace & defense
Automotive
Libraries
High tech electronics
Framework repository
Modeling framework
ISA-95
Start-up Initiate
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BPM
Req
Analysis
Design
BPM
Build
Test
SCOR
Deploy
Close
of industry best practice
MOM templates
Framework
Rational Unified
Process
to capture business
and IT best practice
Implementation
methodology
for consistent project
execution
Achieving full manufacturing integration – sustainable, effective and agile operations
First steps to integrated
manufacturing
The shift to integrated manufacturing is not
a quick technical fix. Over the past four years,
Atos has engaged in numerous large-scale
integration initiatives with clients around the
world. On every occasion, our success has
been the result of two main factors:
„„Mutual commitment to the strategic
importance of integrated manufacturing
„„Focused analysis of opportunity with
quantified and qualified expectation
of return.
If you would like us to share our experience
to date, we are ready to help.
Open and transparent.
Your business technologists.
Powering progress.
Achieving full manufacturing integration – sustainable, effective and agile operations
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Atos in action
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Automotive Supply Chain
Industrial Vehicle Assembly
Truck Best Practice
Pinpoint precision in order control
was essential for this global provider
of components to the world’s leading
automotive brands. Beginning with its
European production facilities, Atos
established the blueprint for a standardized
MES / MOM approach, which now allows
them to respond to dynamic order streams
with unprecedented agility.
Despite great products and a highly
motivated workforce, order fulfillment was
at risk in this modern Central American
assembly plant. Atos consultants produced
an incisive and actionable response in
just a few weeks, showing how a single
application architecture can span ERP,
MES / MOM and PLM to produce, among
other benefits, clear factory simulations
for senior management.
This global truck manufacturer needed to
establish a new engine manufacturing plant
to produce an existing model in volume.
They insisted on building in information best
practice from the start. Atos showed how
information integration was key to build the
real-time interface between MES / MOM and
the equipment control layer and Biztalk to
join up PLM and ERP systems.
Commercial Vehicles
Pharmaceutical Benchmark
This award-winning truck builder runs
plants in both the USA and Europe. With
a new plant on the drawing board, they
wanted to make it an object lesson in
smart information integration. Partnering
with Atos, they established a complete
architecture model for ERP, MES / MOM
and PLM, extending right through to the
machine control layer. As a result, they have
achieved unprecedented production agility
and extremely smart reporting.
The reputation of every pharmaceutical
company is underpinned by consistency,
quality and traceability. For this global
brand, Atos has undertaken numerous
projects designed to increase control and
agility through information integration.
Logistics and material management
systems have been tightly coupled with SAP
to improve agility and throughput without
compromising world-class quality and
risk control.
Harmonization in
Chemical Production
European Dairy Leader
Top Tea Producer
High-Tech
Timing and tracking are absolutely
critical in the dairy industry, and Atos
brought the benefits of full integration to
this innovative European company. The
complex movement of goods across
multiple locations is now tracked in realtime, and comprehensively reported in SAP.
Integrated warehouse management is used
in conjunction with rugged mobile devices
to provide full inventory management,
tracking all goods movements and
material flows.
One of India’s top tea producers was
eager to expand as a global brand, but
found their home grown systems were
just not up to the task. They were looking
for end-to-end integration and engaged
Atos to deliver under tight time pressures.
The Atos solution spanned procurement
of raw materials and packaging, blending,
production, stock transfer and primary
sales – and was fully implemented in just
four months.
Although this telecommunications company
had recently adopted the Oracle E-Business
Suite, it was still not enjoying the benefits
of improved collaboration across finance,
logistics, and purchasing teams. Atos
established a new ERP governance model
with clearly specified KPIs. Clear service
levels now exist across the supply chain,
and the client has reduced costs through
incisive rationalization.
This international giant in chemicals, paints
and coatings sought to harmonize MES /
MOM practice across a highly distributed
network of European production facilities.
As an early MES / MOM adopter, they had
gained real benefit and experience, but as
often happens, paid the price in consistency
and economy of scale. Engaging Atos to
harmonize MES / MOM approach and
practice, they have laid the foundation for
fully integrated information integration,
cross-plant and cross-function.
Achieving full manufacturing integration – sustainable, effective and agile operations
Achieving full manufacturing integration – sustainable, effective and agile operations
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About Atos
Atos is an international information technology
services company with annual 2011 pro forma
revenue of EUR 8.5 billion and 74,000 employees
in 48 countries. Serving a global client base, it
delivers hi-tech transactional services, consulting
and technology services, systems integration
and managed services. With its deep technology
expertise and industry knowledge, it works
with clients across the following market sectors:
Manufacturing, Retail, Services; Public, Health &
Transports; Financial Services; Telecoms, Media &
Technology; Energy & Utilities.
Atos is focused on business technology that
powers progress and helps organizations to
create their firm of the future. It is the Worldwide
Information Technology Partner for the Olympic
and Paralympic Games and is quoted on the Paris
Eurolist Market. Atos operates under the brands
Atos, Atos Consulting & Technology Services,
Atos Worldline and Atos Worldgrid. For more
information, visit: atos.net
For more information, contact: [email protected]
atos.net
Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud, Atos Healthcare (in the UK) and Atos Worldgrid are registered trademarks of Atos SA.
May 2012© 2012 Atos.