ARC's Dick Hill's Creating Value Through Collaboration Presentation at ARC's 2008 Industry Forum
18
Creating Value Through Collaboration Dick Hill VP Manufacturing Advisory Services ARC Advisory Group [email protected]
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ARC's Dick Hill's Creating Value Through Collaboration Presentation at ARC's 2008 Industry Forum in Orlando, FL
Transcript of ARC's Dick Hill's Creating Value Through Collaboration Presentation at ARC's 2008 Industry Forum
Creating Value Through Collaboration
Creating Value Through Collaboration
Dick HillVP Manufacturing Advisory ServicesARC Advisory [email protected]
2© ARC Advisory Group
Wise Men Once Said…Wise Men Once Said…
“It is probably not love that makes the world go around, but rather those mutually supportive alliances through which partners recognize their dependence on each other for the achievement of shared and private goals.”
Fred Allen
“It is not necessary to change. Survival is not mandatory.”
W. Edwards Deming
3© ARC Advisory Group
Concept: The Plant as a Node in a Value Network (CMM)Concept: The Plant as a Node in a Value Network (CMM)
Customers
Process Plant
CMM Nodes:
A process plant, for example, must collaborate with upstream and downstream operations
to fulfill the mission.
Collaborative Manufacturing Management considersthe relationship between all the nodes on the Value
Network.
4© ARC Advisory Group
Today’s Operating ChallengesToday’s Operating Challenges
Design
Support
Business
Customers
Production
Suppliers
Lifecycle Domain
Value Chain Domain
Enterprise Domain
FulfillmentMaterials Mgt
RD&E
Services
Process Plant
Operations
Collaboration is essential to meet
business objectives
5© ARC Advisory Group
Business Objectives – Creating ValueBusiness Objectives – Creating Value
Value to Shareholder
Customer Satisfaction
Health, Safety Environment
6© ARC Advisory Group
Levers to Meet ObjectivesLevers to Meet Objectives
People
ProcessTechnology
7© ARC Advisory Group
Alignment of Objectives and LeversAlignment of Objectives and Levers
ShareholderValue
Customer Satisfaction
Health, Safety & Environment
People
ProcessTechnology
Information and Collaboration Make it Happen
8© ARC Advisory Group
Collaboration - in the Value Chain AxisCollaboration - in the Value Chain Axis
Materials Mgt FulfillmentCustomersSuppliers
9© ARC Advisory Group
Feedstock and Raw Material SuppliersFeedstock and Raw Material Suppliers
Topic From To
Inventory You Order it They Anticipate your need
Service Process for Resolving Disputes
Eliminate Cause For Dispute
Quality Inspect and Verify Trusted
Operations Visibility Restricted Collaborative
Work Processes Separate Synchronized
Relationship Supplier - Customer Business Partner
Objective: Zero Feedstock Surprises
10© ARC Advisory Group
Customer RelationshipCustomer Relationship
Topic From To
Inventory They Order it You Anticipate their need & manage it
Service Process for Resolving Disputes
Eliminate Cause For Dispute
Quality Inspect and Verify You Guarantee
Operations Visibility Restricted Collaborative
Work Processes Separate Synchronized
Relationship Supplier - Customer Business Partner
Objective: Zero Customer Disappointments
11© ARC Advisory Group
Collaboration – on the Lifecycle AxisCollaboration – on the Lifecycle Axis
Design
Support
RD&E
Services
12© ARC Advisory Group
Plant LifecyclePlant Lifecycle
Topic From To
Design Documentation As-Built at Startup Living Database for Operations
Design, Operate and Maintain Integration
None to Limited Custom interfaces
Standards-based Interoperability
Plant Asset Management
Maintenance’s Responsibility for Availability
Active Management by Both Operations and Maintenance
Design Objectives Designed for Low Cost Startup
Designed for Optimum Operation Benefits
Work Processes Separate Synchronized - DOM
Objective: Maximum Asset Performance
13© ARC Advisory Group
Product LifecycleProduct Lifecycle
Topic From To
Design Processes Sequential Product and Process Design
Concurrent Product and Process Design
Design - Build Integration
Design validation during startup
Virtual validation before startup
Design, Build and Service Integration
None to Limited Custom interfaces
Standards-based Interoperability
Design Objectives Time to ProductionLow Cost to Make
Optimize Profit of Product
Work Processes Separate Synchronized – Digital Factory
Objective: Maximum Product Performance
14© ARC Advisory Group
Collaboration – on Plant-Business AxisCollaboration – on Plant-Business Axis
Operations
Business
Production
15© ARC Advisory Group
Finding the Hidden CapacityFinding the Hidden Capacity
Topic From To
Production Variance Conservative Targets Push Limits
Which Machine is the problem?
Experience Data-driven Evidence - OEE
Unscheduled Downtime
Reactionary Predicting
Instrumentation Behavior
Manual maintenance Program guided maintenance
Availability vs Utilization
Maintenance: AvailabilityOperations: Utilization
Collaboration & Work Processes
Objective: Optimize Production
16© ARC Advisory Group
Proactive versus Reactive Energy ManagementProactive versus Reactive Energy Management
Topic From To
Energy Consumption Consumption History Forecast Consumption
Peak Loads Monitor Predict
Energy Balance Daily Summary Real Time Balance
Operational Options Try it and see ‘What-if’ simulation
Co-Generation Uncontrolled Power Purchases
Tie-Line Control
Production vs energy Scheduled independent
Optimize schedule and energy
Objective: Meet Energy Needs at Lowest Cost
17© ARC Advisory Group
Collaboration: Users and SuppliersCollaboration: Users and Suppliers
Supplier Customer
Projects, Products, Operations…
Let’s Discuss What Works and What are the Results
ShareholderValue
Customer Satisfaction
Health, Safety & Environment
People
ProcessTechnology
ShareholderValue
Customer Satisfaction
Health, Safety & Environment
People
ProcessTechnology
18© ARC Advisory Group
Thank You.Thank You.For more information, contact [email protected] or visit
our web pages atwww.arcweb.com
“I not only use all the brains that I have, but all that I can borrow.”
Woodrow Wilson
