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    Maximize EfficiencyDeliver the Lean Cut

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    usiness Goals

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    effe

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    tivenessWhat does it take to improve operational performance,efficiency and flexibility?

    Major changes have occurred in the meat and poultry industry in recent decades. Manufacturers

    must be able to rapidly respond to dynamic consumer markets, and to minimize manufacturing

    costs. They need to master both the supply chain and distribution networks and optimize quality.

    All while simultaneously meeting regulatory requirements.

    The need to monitor performance, yield and quality as well as production capacity and producti-

    vity is driving the meat and poultry industry to adopt more advanced manufacturing operations

    systems. These new manufacturing systems allow comprehensive operational performance

    management across processes, resources, lines and plants, enabling efficiency and productivity

    improvement and quality. Finding the right enabler to do so is on top of the agenda in more

    than one board room.

    Siemens understands these challenges, and offers SIMATIC IT for manufacturing optimization.SIMATIC IT is the premier Manufacturing Execution System (MES) for the meat and poultry

    industry. SIMATIC IT allows meat and poultry processors to exploit new sources for greater effi-

    ciency, and to better manage the product and production life cycle. It delivers consistent quality

    by bridging the gap between the supply chain, enterprise business systems and the plant floor.

    SIMATIC IT comes with functionality tailored to the specific needs of the meat and poultry

    industry, and offers real-time information management, automated information flows, plant

    responsiveness and flexibility.

    What can we do for you?

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    Challenges

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    Every day meat & poultry processors face multiple, often contradictory

    challenges balancing their delicate production priorities between dynamic

    customer order requirements, strict food safety and quality standards,

    robust regulatory requirements, and ambitious financial performance

    metrics.

    Todays consumers are demanding products with guaranteed standards

    of taste, safety, consistency, and quality while also expecting new, innova-

    tive product and packaging developments. Meat & poultry processors

    must balance these consumer requirements with their own goals of finan-

    cial performance, regulatory compliance, and brand-image growth and

    preservation. In order to meet consumer requirements, differentiate their

    products, and expand financial margins, meat and poultry processors

    are utilizing increasingly complicated processing technology, including

    the application of sophisticated flavoring, marination, battering, cooking

    methods, portioning, and packaging. This additional complexity presents

    challenges throughout the organization, from the R&D lab through finished

    goods packaging. Throughout this fast-paced, dynamic production life-

    cycle, meat and poultry producers are challenged to optimize production

    efficiency, minimize waste, ensure product quality and safety, and maximize

    the use of available resources.

    Managing fast-paced production environments while balancing the factors

    of financial performance, production throughput and efficiencies, food

    quality and safety, and consumer satisfaction requires real-time visibility

    and control of the manufacturing process infrastructure. Meat & poultry

    producers increasingly seek to deploy technology solutions that provide

    robust capabilities in managing real-time production information in order

    to optimize throughput and efficiency, ensure complete food safety,

    guaranteed quality, and maximize scheduling flexibility across their opera-

    tions. They are rapidly discovering that proper implementation of a com-

    prehensive; fully integrated Manufacturing Execution System (MES) pro-vides the foundation for control and flexibility they need to meet this

    delicate balance of priorities.

    Darrel R. Suderman, Ph.D.Dr. Darrel Suderman has a Ph.D. in Food Science and more than 20 years of

    hands-on manufacturing experience at leading companies. He is a recognized

    international speaker on food and beverage processing and manufacturing

    systems.

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    Missing the Real ROI: MES as a Case Study

    August 11, 2003 AMR Research Alert Bill Swanton, Alison Smith

    AMR Research interviewed more than twenty companies thathad implemented MES (Manufacturing Execution Systems)

    recently. We found that companies saw three tiers of benefits

    from their projects:

    Cost reductions

    (1x savings in the first year)

    Inventory, costs, people, and cycle time.

    Process improvements

    (3x savings in the second year)

    Faster New Product Introduction (NPI), new customer compli-

    ance, and data services from better tracking and genealogy.Market improvements

    (10x savings in the third year)

    Tuning the manufacturing operation to be extremely responsive

    to actual demand allows companies to capture market share

    without increasing costs.

    MES Provides Long-Term Revenue and Market Benefits

    Beyond Easy-to-Quantify Operational Cost Savings

    July 30, 2003 AMR Research Report Bill Swanton, Alison Smith

    The largest benefits of MES come from leveraging the visibility

    that MES affords into overarching continuous process improve-

    ment and supply chain management strategies. At a fraction of

    the cost and time of an ERP initiative, an MES platform provides

    visibility into accurate, high-velocity information about produc-

    tion performance. This enables manufacturers to recognize and

    then seize new opportunities both internally and in the market-

    place.

    By extending production visibility throughout the internal supply

    chain, one manufacturer increased profit margins on both highervolumes and higher product mix, all while keeping costs con-

    stant. The net effect was to preserve profitability despite lower

    sales a universal theme for manufacturers in todays uncertain

    economy.

    Reprinted with the permission of AMR Research.

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    In order to address food safety and quality issues, increase plant performance

    and yield optimization, meat & poultry processors want to increase manu-

    facturing flexibility, maximize throughput and automate work and information

    flows. This requires systems that can enhance manufacturing capabilities.

    In highly dynamic markets with increasing consumer and retail demands,

    meat & poultry processors need to reduce manufacturing cycle times and

    achieve undisputed quality standards. SIMATIC IT can synchronize the plant

    and machine-related processes with plant business systems, creating manu-

    facturing standardization and driving best practices. This results in optimized

    quality and efficiency.

    How do you drive efficiency?

    Meat and poultry processors must reconcile quality wit

    quality and IT systems have to be synchronized within a

    production transparency, enable real-time planning an

    quality and production-related activities. This will reduc

    excellence.

    SIMATIC IT coordinates and synchronizes business and

    tion exchange between IT manufacturing systems and

    SIMATIC IT enables the implementation, execution, syn

    flexible modeling environment with automated workflo

    Market Respons

    Supply Chain

    Food Safety a

    Yield Optimiz Increasingly S

    Requirements

    Faster Time-t

    Highest Qual

    How do you measure performance and leverage rea

    Capacity optimization has become a major challenge.

    ment and analysis in order to achieve continuous impr

    no longer be a black box; real-time performance mana

    face a critical need to enable real-time information flo

    the production process. Manufacturing systems should

    throughput and quality.

    SIMATIC IT provides the right information to the right i

    decision support and continuous improvement accord

    tracing, plant floor resource capacity information, and

    shared and leveraged across the enterprise.

    Produc

    How do you achieve regulatory compliance?

    Physical measures of tracking such as paper-based systems or ear tagging may be vulnerable to loss, errors or

    even fraud. Information demand from customers in the meat and poultry supply chain is still growing due to

    the increased awareness of food safety and greater concern about quality control. These demands result in the

    need for adapted IT systems that are able to collect, record and connect data. The FDAs Bio Terrorism Act and

    regulatory guidelines such as Country of Origin Labeling dictate that meat and poultry processors implementintegrated farm to fork tracking and tracing systems.

    SIMATIC IT can complement traditional tracking systems to include animal and lot tracking from individual farms

    through the processing plant and subsequent distribution centers to the consumer point of sale. SIMATIC IT

    provides data collection, database management, ingredient and product tracking, production process visualization

    and reporting capabilities as an extensive regulatory compliance platform.

    Traceability and Genealogy Mark

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    anufacturing cycle times. Supply chain, production,

    ants. Companies face a critical need to increase

    , while acquiring the capability to synchronize all

    ut times and result in a high level of operational

    processes through a seamless and complete informa-

    or, providing interoperability between all systems.

    and control of all operations through a uniquely

    and Flexibility

    cs

    urity

    egulatory

    t

    ctations

    uction information?

    of data and systems allowing data capture, measure-

    operational efficiency is a must have. The plant can

    key component of enterprise success. Companies

    erformance management has to be integrated into

    nitor and control essential KPIs including yields,

    the right time. It enables the right metrics for critical

    usiness objectives defined. Through WIP tracking and

    roduct genealogy, real time information can be

    ciency

    hlightsHow do you integrate quality and production for closed loop control?

    Consumers are increasingly concerned with food safety issues, inspiring regulatory bodies to increase require-

    ments, laws and regulations. At the same time, manufacturing performance has to be protected. This implies that

    quality and production systems need to be seamlessly integrated. It also demands immediate notice of variances

    in product quality and integrity. Performing quality controls without the laboratory becoming a bottleneck

    requires the ability to schedule these tests and allocate the right resources and equipment beforehand. Optimalefficiency comes when integrating plant operations with quality management systems, and connecting quality

    data with production data for extensive decision support.

    SIMATIC IT closes the gap between the laboratory and the production allowing in-line testing. SIMATIC IT

    completely integrates quality control and assurance into production processes, thereby enabling tracking and

    tracing, full product genealogy as well as regulatory compliance through advanced reporting capabilities.

    SIMATIC IT also allows the implementation of HACCP principles.

    Quality and Food Safety

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    SIMATIC IT

    SIMATIC IT Enabler for Manufacturing

    Optimization

    Due to its modular, object oriented, open and scal-

    able architecture, SIMATIC IT enables customers to

    standardize processes at a high level, while obtaining

    previously unachievable flexibility at the operational

    level. This unique approach makes it possible to:

    Roll-out solutions smoothly and gradually

    Implement changes and enhancements easily

    Reuse previously defined business logic to

    reduce project duration

    Preserve capital investments

    SIMATIC IT Cross-Industry Libraries

    Libraries offer pre-configured, dedicated functionality

    for the meat and poultry industry. With reusable

    functions, the SIMATIC IT Cross-Industry Libraries

    lower Total Cost of Ownership by providing scalable,

    repeatable functionality.

    SIMATIC IT ISA-95 Compliance

    ISA-95 is increasingly being accepted as the world

    standard for Manufacturing Execution that customers

    are relying on to secure their investments in MES.

    SIMATIC IT not only covers all ISA-95 functions,

    but also uses ISA-95 as a blueprint for its product

    architecture. As an active Member of the ISA-95

    Committee, Siemens continues to contribute to the

    further development of the standard.

    SIMATIC IT and Totally Integrated

    Automation

    SIMATIC IT is an integral part of Totally Integrated

    Automation (TIA), the Siemens unique common

    basis for customer-specific automation solutions thatsatisfies a whole range of automation requirements.

    SIMATIC IT benefits from this integration with the

    rest of the Siemens product line, thanks to a wide

    range of pre-configured objects, ready to be used

    without any other engineering effort. TIA allows quick

    project implementation, native integration with other

    Siemens automation offerings, and compatibility

    across different generations of products.

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    ERP

    SIMATIC IT Framework

    SIMATICITProdu

    ctionSuite

    SIMATIC (control level)

    SIMATIC IT Components Material Manager

    Order Manager

    Personnel Manager

    Messaging Manager

    Report Manager (optional)

    SIMATIC ITInterspec

    SIMATIC ITHistorian

    SIMATIC ITUnilab

    3rd Party

    Components

    3rd Party Devices

    SIMATIC IT Production Suite

    The SIMATIC IT Production Suite is composed of the

    SIMATIC IT Framework and SIMATIC IT Components.

    The SIMATIC IT Framework provides a graphical

    environment to model production process, equip-

    ment and facilities intuitively, and without the

    necessity of programming skills. The graphical pro-

    duction model offers a clear understanding of the

    plants behavior and visualizes the entire production

    status.

    The SIMATIC IT Components include basic and

    guaranteed MES functions for order management,

    material management, product definition manage-

    ment, messaging, personnel management, report

    management, barcode scanning and data integra-

    tion with the plant floor and with enterprise systems

    using B2MML.

    SIMATIC IT Historian

    SIMATIC IT Historian is a collection of software modules

    to collect, store and quickly retrieve process and

    production information used for Quality Assurance,

    Reporting, Certifications, Statistical Analysis,

    Performance Monitoring, Down Time Management

    (DTM), and Overall Equipment Effectiveness (OEE).

    SIMATIC IT Historian may be used on its own, or as

    an integrated part of SIMATIC IT.

    SIMATIC IT UnilabSIMATIC IT Unilab is the multi-plant Laboratory Infor-

    mation Management System (LIMS) that handles all

    quality data in the laboratory (samples, analysis,

    instruments, etc.) and conforms to all industry and

    laboratory standards, including GLP, GAMP, ISO, and

    21 CFR Part 11. SIMATIC IT Unilab may be used on its

    own, or as an integrated part of SIMATIC IT.

    SIMATIC IT Interspec

    The Specification Management System handles product specifications for rawmaterials, semi-finished and finished products as well as packaging materials.

    This incorporates company-wide specifications as well as individual specifica-

    tions for a single plant, supplier or customer.

    SIMATIC IT Interspec is the single point of reference for all product specifica-

    tions and supports compliance with 21 CFR Part 11. SIMATIC IT Interspec may

    be used on its own, or as an integrated part of SIMATIC IT.

    SIMATIC IT Report Manager

    This optional component of SIMATIC IT offers advanced, fully integrated and

    user-friendly reporting functionality. The Report Manager meets regulatory

    requirements for ad hoc reporting and offers valuable operational insights.

    SIMATIC IT Client Application Builder

    Thanks to the data visualization interface of SIMATIC IT Client Application

    Builder, all business related information is integrated and aggregated into

    reports, enabling better management decisions and supporting regulatory

    compliance. These high level financial performance indicators enable increased

    competitiveness and promote continuous improvement of business.

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    dded Value

    SIMATIC IT Framework, Components and Libraries facilitate and

    synchronize operations all along the production lifecycle including

    material and order management, product definition management,

    planning, production, and laboratory information management,

    as well as product specification management, tracking, tracing

    and production analysis and optimization.

    From Global to Local Design

    Management of product diversity and

    fast market response

    SIMATIC IT Interspec formulates, manages

    and distributes both enterprise-wide as plant

    and customer specific product specifications

    for raw materials, semi-finished and finished

    products as well as packaging material. Thanks

    to the integration with the ERP system, it

    can also hold the extensive list of co- and

    by-products and list them in the BOM.

    Download Orders

    Leverage the potential of your

    IT infrastructure

    SIMATIC IT allows bi-directional dataexchange with enterprise business systems,

    including ERP and WMS systems to providebetter manufacturing visibility and to pro-

    vide the necessary tight link between the

    ERP level and the plant floor. This integra-tion allows synchronization of all activities,

    avoiding bottlenecks and reducing non-pro-ductive work as well as the risk of data

    inconsistencies.

    Plan and Map Resources

    Optimize throughput, production flexibility

    and asset utilization

    SIMATIC IT offers the maximum degree ofplant information and performancemeasurement necessary for compliantdelivery and monitoring of critical controlpoints defined in the HACCP plan. Usingreal-time data, SIMATIC IT optimizesresource utilization and throughput whileincreasing the flexibility necessary to makeadjustments during production.

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    SIMATIC IT along the Production Lifecycle

    Test

    Seamless integration of QA/QC processes

    SIMATIC IT Unilab is a market-leading

    Laboratory Information Management

    System (LIMS) to manage laboratory work-

    flow and samples. Analysis and analysis

    results can be integrated automatically into

    the processing workflow and included in

    HACCP reports as a proof of regulatory

    compliance, without causing any delays due

    to waiting for test results.

    Analysis and Optimization

    Continuous improvement of performance

    and quality

    SIMATIC IT Historian enables the definition

    and calculation of Key Performance Indica-

    tors (KPIs) such as WOG yield, debone yield,

    moisture content, giveaway and quality in

    order to measure business performance. It

    provides Management with the tools neces-

    sary to analyze and report on the data, thus

    creating a useful information source andproviding possibilities for improving manu-

    facturing performance and quality.

    Define Processes

    Enforce standard procedures but

    accommodate plant uniqueness

    SIMATIC IT enables the central definition ofprocesses and procedures, yet takes into

    account local plant resources and con-

    straints. This enables consistent and homo-

    geneous production procedures throughout

    various plants for better standardization,

    and lower operating costs. It also has the

    ability to easily modify and control manu-

    facturing procedures according to local

    plant requirements and new production

    and product needs.

    Produce

    Coordination and synchronization of

    all operations

    SIMATIC IT coordinates all activities needed to

    drive and optimize production in real time and

    to improve quality while at the same time

    shortening time-to-market through more effi-

    cient production procedures. Significant cost

    savings will be the direct and immediate result

    of first-time-right production, quality tests with

    the earliest possible recognition of non-compli-

    ance and if necessary automatic and appro-

    priate responses to out-of-spec conditions.

    Track and Trace

    Genealogy and regulatory compliance

    SIMATIC IT enables the tracking of every

    material movement and offers full

    upstream and downstream genealogy,

    including extensive reporting capabilities

    as well. It enables the meat and poultry

    industry to react in a timely manner to

    requests from regulatory bodies as well as

    to limit liability in food safety scares and to

    preserve brand quality and image.

    Analyse

    GlobalDesign

    LocalDesign

    MapResources

    DefineProcesses

    DownloadOrders

    Test

    Produce

    Track &Trace

    Optimize

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    More flexible, efficient and faster

    SIMATIC IT continues the success story of TIA (Totally IntegratedAutomation). SIMATIC IT is a scaleable system, enabling total integration

    and full support of existing industrial standards with a component

    based approach.

    SIMATIC IT Framework synchronizes, analyzes, coordinates and

    optimizes production. Heterogeneous applications can be integrated

    to better manage the complexity of production data and processes.

    SIMATIC IT Components provide superior manufacturing functionality,

    such as Laboratory Information Management, Production Performance

    Management, Material Management and Product Specification

    Management. These components can be coordinated by SIMATIC IT

    Framework, or used as independent applications.

    The proven interaction of the different components leads to higher

    efficiency and quality, and protects your investments in existing plant

    resources and systems.

    Where do we go from here?

    More information:

    [email protected]

    www.siemens.com/simatic-it

    Competence Center Food & Beverage:

    www.siemens.com/food

    Competence Center Food & Beverage (US):

    www.sea.siemens.com/foodbev

    Siemens AG

    Automation and Drives

    w w w . s i e m e n s . c o m / s i m a t i c - i t

    SIMATIC IT is a registered trademark of Siemens AG.

    If trademarks, brand names, technical solutions and similar are not specifically

    mentioned, this does not mean that they have no protection.

    The information provided in this manual contains merely general descriptions

    or characteristics of performance which in case of actual use do not always

    apply as described or which may change as a result of further development

    of the products. An obligation to provide the respective characteristics shall

    only exist if expressly agreed in the terms of contract.