Factory Automation Global CyberSoft

ICT Services A Long-term Partner of Your IT Solutions

ERP Business Solutions
Testing Services
Business Process Outsourcing

Effective Manufacturing
with
Integrated ERP & MES Solutions

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A Long-term Partner of Your IT Solutions

Content
• Global CyberSoft (GCS) introduction
• Glossary
• Today’s manufacturing industries
• Enterprise-Control System Integration
– Level 4: Enterprise Resource Planning (ERP)
– Level 3: Manufacturing Execution System (MES)
– Fully integrated ERP/MES
• Facts: Adoption & Performance
• Available solutions:
– SAP & InSite
– SAP & SIMATIC IT

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GCS Introduction
• Global CyberSoft (GCS) is a US company with
headquarters located in Silicon Valley, two
development centesr in Ho Chi Minh city, and
sales representative offices in Tokyo, Paris and
Singapore.
• Factory Automation (FA) and ERP Business
Solutions (EBS) are two main business lines of
GCS.
– FA division provides control and management
solutions for manufacturing industries.
– EBS division provides SAP ERP solutions : from
consulting to implementation, maintenance &
support.
• With the combination of FA and EBS, GCS can
confidently provide total solutions for enterprises
in Vietnam.
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Glossary
Abbr. Description
MES Manufacturing Execution System
ERP Enterprise Resource Planning
EMI Enterprise Manufacturing Intelligence
B2MML Business to Manufacturing Markup Language
SAP xMII SAP xApp Manufacturing Integration and Intelligence
ISA The Instrumentation, Systems, and Automation Society
WIP Work In Progress
FGI Finished Goods Inventory
NPI New Production Introduction
TTM Time To Market
DMUV Direct Material Usage Variance

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Today’s manufacturing industries
Challenges
• Highly competitive market
• Cost reduction
• Market demanding high
quality, innovative products
• Customer demands constantly
changing
• Shorter delivery cycles
• More dynamic supply networks
• Regulatory compliance
Integrated Enable
ERP & MES
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Strategies
• Improve efficiency & reduce
overall manufacturing costs
• Increase the visibility and
control of manufacturing
execution.
• Coordinate manufacturing
execution processes across the
enterprise.
• Become more responsive and
agile
Require
Manufacturing Integration
Manufacturing Intelligence
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Enterprise-Control System Integration

Business
Business Plant
Plant Production
Production Operation
Operation
Level 4 ERP Planning
Planning &
& Logistics
Logistics Scheduling
Scheduling Management
Management
…
…

Manufacturing
Manufacturing Detailed
Detailed
Level 3 MES Operations
Operations
Dispatching
Dispatching Production
Production
Reliability
Reliability …
…
Production
Production Assurance
Assurance
Management
Management Scheduling
Scheduling

Level 2,1 Batch

Batch Continuous
Continuous Discrete
Discrete
Control
Control Control
Control Control
Control

ISA SP-95 model: business to plant floor operations

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Level 4: Enterprise Resource Planning (ERP)

Raw
Raw material
material &
& Spare
Spare parts
parts Energy:
Energy:
-Usage
-Usage -- Usage
Usage Overall
Overall goods
goods in
in process.
process.
-- Inventory
Inventory -- Inventory
Inventory Production
Production inventory
inventory
-- Procurement
Procurement -- Procurement
Procurement

Machinery
Machinery & & Equipment
Equipment Man
Man power
power usage
usage
-Usage
-Usage
-History
-History Quality
Quality control
control data
data
Æ Preventive
Æ Preventive && Predictive
Predictive maintenance
maintenance planning
planning management
management

Optimization:
Optimization:
Basic
Basic Plant
Plant Production
Production Schedule:
Schedule: -- Optimal
Optimal preventive
preventive maintenance
maintenance &
&
-- Establishment
Establishment equipment
equipment renovation
renovation schedule
schedule
-- Modification/Adjustment
Modification/Adjustment -- Optimal
Optimal inventory
inventory level
level

Capacity
Capacity planning
planning

ISA SP-95 specification: activities of Level 4

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Level 3: Manufacturing Execution System (MES)

Process
Process management:
management:
Resource
Resource allocation
allocation &
& Control
Control
-- Production
Production monitoring
monitoring
-- Corrections:
Corrections: automatic
automatic &
& manual
manual

Dispatching
Dispatching :: jobs,
jobs, orders,
orders, batches,
batches,
lots,
lots, work
work orders
orders Operations
Operations and
and detailed
detailed scheduling
scheduling

Quality
Quality management:
management:
-- Real Production
Production planning
planning &
& tracking
tracking
Real time
time measurement
measurement
-- SPC/SQC
SPC/SQC functionalities
functionalities

Labor
Labor management
management Performance
Performance analysis:
analysis:
-- Resource
Resource utilization
utilization && availability
availability
-- Product
Product unit
unit cycle
cycle time
time
Document
Document control
control

ISA SP-95 specification: activities of Level 3

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MES benefits
MES benefits Benefit recognition timing for MES investments
Larger benefits
from continuous Reduce Increase volume and/or Increase market share
improvement - operating margins at same cost and/or
MES is necessary costs pursue new markets
but not
sufficient to
achieve
Supports collaboration
this level Average paypack
Market is 12 months on
Supply chain visibility
10X Platform for continuous
improvements 1X benefits
improvement
Value of Benefits

Faster NPI cycle - shorten TTM for innovation

Process 3X Customer audit requirements: traceability and genealogy
MES marketed as competitive tool
improvements Promotes flow manufacturing

Lower WIP and FGI Reduce Indirect labor costs

Reduce waste/scrap/materials Shorten cycle/flow time/lead time
Cost reductions 1X Reduce cost of regulatory compliance Improve quality / Reduce process &
Most MES Reduce rework product variability
projects are Reduce maintenance costs
justified on
these cost 3 to 12 mos. 12 to 36 mos. 3 years +
production Typical project payback ranges
measures from 6 to 24 months

Source: AMR Research

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Fully integrated ERP/MES: model

EMI Enterprise
Enterprise Resource
Resource Planning
Planning (ERP)
(ERP)
how to what can be when and what when and what
produce? produced? to produce? were produced?
Propagation ERP-to-MES
Propagation Product
Product Production
Production Production
Production Production
Production integration
definition
definition capability
capability schedule
schedule performance
performance

Visualization
Visualization Detailed
Production
Scheduling
Production
Production
Resource
Analysis
Analysis Tracking
Management

Production Production
Dispatch Performance
Analysis
Contextualization
Contextualization
Product Production
Definition Data
Management Collection
Production
Aggregation
Aggregation
MES Execution

Control
Control
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Fully integrated ERP/MES: benefits

• Provides enterprise-wide visibility of manufacturing operations
Æ more agile and responsive.
• Improves business decision-making
– based on real-time information
– foreseeing the impacts of those decisions and knowing viable
alternatives.
• Presents business and production processes as a single
workflow.
• Enables real-time monitoring of KPIs on productivity, quality,
yields and throughput.

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Facts: Adoption & Performance

KPI performance
On time WIP
Market Segment delivery DMUV reduction
Large Enterprise 93% 4.6% 30%
Upper Mid-Market 94% 2.0% 52%
Lower Mid-Market 90% 4.1% 40% These statistics are based
on Discrete Manufacturers
Industry average 91% 4.1% 34% Source: Aberdeen Group
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Fully integrated ERP/MES: available solutions

Enterprise Resource Planning (ERP)

Manufacturing Integration & Intelligence

xMII

Manufacturing Execution Systems (MES)

Control
Control

Leveraging in-house expertise and industry experiences, GCS can

provide the most suitable fully integrated ERP/MES solutions:
- ERP: SAP
- Manufacturing Integration & Intelligence: SAP xMII
- MES: InSite (Camstar) or SIMATIC IT (Siemens).
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Solutions: SAP & InSite

• InSite: MES solution from Camstar.
• Recommended for high-tech industries such as
– Assembly & Test
– Solar Cell manufacturing
– Electronics
• With InSite, manufacturers can achieve new
levels of responsiveness across global networks
through:
– Effective inventory management
– Order tracking and customization
– Optimized yields
– Accelerated decision-making
– Shortened production cycles

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Solutions: SAP & SIMATIC IT

• SIMATIC IT: MES solution from Siemens.
• Recommended for process industries such as
– Food & Beverages
– Chemicals
– Pharmaceuticals
• SIMATIC IT brings Excellence to the
Manufacturing Enterprise:
– Interoperability with Business Level
– Visibility for fast decision making
– Time-to-Market support
– Total Quality Management
– Full flexibility in production
– Complete integration with the Supply Chain
– A complete solution for Plant Operations

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References
• There is No Execution without Integration, Aberdeen Group,
2007
• Why integrate MES and ERP? Because you cannot afford not
to!, Siemens Energy & Automation, Inc., Process Automation
Systems, 2006.
• MES, Manufacturing 2.0, and SAP ERP: How They All Fit
Together in Your Production Environment, Simon Jacobson,
AMR Research, 2008
• Competitive Advantages Abound for Discrete Mid-Market
Manufacturers, Aberdeen Group, 2007
• MES Provides Long-term Revenue and Market Benefits Beyond
Easy-to-Quantify Operational Cost Savings, AMR Research,
2004

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We welcome your questions

For further information, please contact:

Phuc Le
VP Factory Automation
phuc@globalcybersoft.com
Office: +84 (8) 437 1199
Cell: +84 (90) 3 928 089
Homepage: http://www.globalcybersoft.com

Thank you!

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