Smarter Planet Meets Smarter Manufacturing

© 2009 IBM Corporation

Building a Smarter planet

Manufacturing Technology Transformation Because Everything Matters in Manufacturing

MRP II

ERP

Execution

Manufacturing Content

MRP

Time © 2009 IBM Corporation

Building a Smarter planet

What is Smarter Manufacturing Characteristics and Benefits Characteristics

Benefits

Manage Instrumented

Interconnected

V

ariability

Drive

V elocity Create Meaningful

Intelligent

V

isibility

© 2009 IBM Corporation

Building a Smarter planet

And Deliver Manufacturing Value 1. Manage V ariability Less Waste

2. Drive V elocity Less Capital

3. Create Meaningful V isibility Lower Costs

…with V3 and get Smart about Manufacturing © 2009 IBM Corporation

Building a Smarter planet

Something Profound has Happened … Manufacturing tools have evolved and converged; enabling us to meet the challenge of manufacturing volatility head on! Use resources effectively by managing:

V ariability

Turn cash quickly by driving manufacturing:

V elocity

Be predictive and adaptable with meaningful:

V isibility

© 2009 IBM Corporation

Building a Smarter planet

Imagine what can change when manufacturing is Instrumented Bridge and Fill the GAPS at every level and manage V ariability ISA 95 Manufacturing Technology Stack

vs.

ERP

L4 L4 L3 L3 L2 L2

Manufacturing Network

Plant SCADA/HMI Line

Equipment and Material Sensors/Actuators

L0 L0

Actual

MES

PLC/Controls

L1 L1

Planned

Realize lower cost structure through Instrumentation. Collecting the correct data and measuring against expected performance Immediately breaks down the wall between Planned and Actual performance

Process and State

Measure and monitor Everything because Everything Matters!

© 2009 IBM Corporation

Building a Smarter planet

Imagine what can change when manufacturing is Interconnected Immediately drive

V elocity by reducing unnecessary buffers Eliminate buffers when you: Know what to do next Sustain priority

Buffer 20

Buffer 35

Manage constraints Leverage capability

Buffer 45

Connect and Synchronize Everything because Everything Matters! Buffer 10

Buffer 20 © 2009 IBM Corporation

Building a Smarter planet

Imagine what can change when manufacturing is Intelligent You can only fix problems you can see with meaningful

V isibility

More than dashboards:

M FG

Predictive Alerts Anticipate performance Accurate System Prediction

N E T

Collaborate across the Mfg. network

WORK

Intelligence at the point of decisioning

VISIBILITY

Apply Analytics to Everything because Everything Matters!

Would your company pass the test? © 2009 IBM Corporation

Building a Smarter planet

What is SAP Perfect Plant? SAP’s Shop Floor Solution For Manufacturing Visibility, Integration, & Enforcement

© 2009 IBM Corporation

Building a Smarter planet

Smarter Manufacturing and SAP Perfect Plant ISA-95

3 2 1 0

ERP Planning, Forecast, Order Management

MES Execution, Data Reporting, Order Fulfillment

SCADA / HMI Line Supervision and Control Coordination

Intelligence SAP ME And Decision Making SAP Mii

4

Operations Technology Stack

Robust Data, Alerts, Visibility

PLC / Control Tracking Data and Control Point

Sensors / Actuators Production Data and Equipment

© 2009 IBM Corporation

Building a Smarter planet

ISA-95

3 2 1 0

Operations Technology Stack

ERP Planning, Forecast, Order Management

MES Execution, Data Reporting, Order Fulfillment

SCADA / HMI Line Supervision and Control Coordination

Intelligence SAP ME And Decision Making SAP Mii

4

Robust Data, Alerts, Visibility

ISA-95 Process & Technology Illustration

PLC / Control Tracking Data and Control Point

Sensors / Actuators Production Data and Equipment

ISA-95

4

ERP / SAP Planning, Forecast, Order Management

MES /SAP ME

3

Execution, Data Reporting, Order Fulfillment

2

Line Supervision and Control Coordination

SCADA / HMI

Simple Manufacturing Process Workflows Plan Production

Process Consumption; Run MRP

Release Order Potential MES / ERP Integration Points Assign Conduct Material; Receive Assign Component Order Workflow Verification

Return As-Built Data Alert Operator

Print Build Sheet

PLC / Control

1

Tracking Data and Control Point

Sensors / Actuators

0

Production Data and Equipment

Load Carrier RFID System

Control Machinery & Equip

© 2009 IBM Corporation

SAP Examples

Smarter Manufacturing

© 2009 IBM Corporation

Paradigm Shifts

Smarter Manufacturing

© 2009 IBM Corporation

Building a Smarter planet

Make Progress by Thinking Smarter … Smarter about how you Manufacture

Instrumented

Measure & Monitor real time information

V ariability

Intelligent

Interconnected

Synchronize your Pulse to achieve superior performance

Become Predictive & Adaptive

V isibility

V elocity

That is Smarter Manufacturing because Everything Matters! +

+

=

V3

© 2009 IBM Corporation