Streamlining Recipes from Product Development to...

Siemens Industry

© Siemens AG 2013 All rights reserved.

Streamlining Recipes from Product Development to ProductionKen Hall - Siemens

22/11/2013

© Siemens AG 2013 All rights reserved. Siemens Industry

Agenda• Overview• What is Recipe Transformation• Initial Siemens Recipe Transformation Technology• Key points on Value, Challenges, Enablers, and KPI’s

• Feedback from the Process Industry• Current Activities

Streamlining Recipes from Product Development to Production

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Overview


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• With increasing globalization, increasing competitive pressure, lower margins, ongoing search for new ideas and innovative products, time to market is crucial for a leadership position

• The ability to streamline the transformation of R&D formulas through to manufacturing is needed to meet these challenges

• Recipe Transformation is the industry buzz-word for this technology

• This is an overview of Siemens answer to this technology, the business value, risks, and enablers

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What is leading Siemens to the Recipe Transformation Initiative?Business ChallengesCustomer needsSoftware Technology Platform

• The ability to speed up, enhance, and provide a visual authoring environment for the transformation of R&D Product Development ideas to execution on the plant floor is gaining interest

• The ability to manage and drive these R&D ideas to execution at the enterprise level is a key requirement• The driving factor is “Speed to Market”: Being able to accelerate and streamline new products in production:

“In today’s highly competitive marketplace, speed and agility can be the difference”“Delivering the seamless flow of recipe data from the Corporate PLM Layer to the Factory Floor”

“We must monetize innovation to extract more value from our R&D effort”

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What is “Recipe Transformation”?


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Streamlining Recipes from Product Development to ProductionWhat is “Recipe Transformation”?

We asked a group of Industry representatives what Recipe Transformation means to them.Here is a sampling of the opinions:

• Automating movement and transformation of Design BoM to the Manufacturing BoM• Enhancing process design• Transforming R&D information to Manufacturing• Leverage work instructions to manufacturing procedures• What operations needs from R&D to minimize touch points• Maximize use of what materials plants have on hand• One system to move a recipe from R&D to the plant floor• Improving accuracy of communicating equipment definition in relationship to product mix• Increase velocity of information flow among stakeholders to make better business decisions• Reducing rework, validation, communication delays, and duplication of effort among participating functions

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Streamlining Recipes from Product Development to ProductionWhat is “Recipe Transformation”?

Time-to-Market is a strategic approach to create and manage a company's product-related intellectual capital, from its initial conception to retirement

Product Manufacturing Lifecycle improves a company’s product development processes (R&D) and its ability to use product-related information (MES) to make better business decisions (lower costs) and deliver greater value to customers (increase quality)

Time to market is critical to organizational success• New products = New and annuity revenue streams

• Customers and business partners are demanding better products, delivered faster than ever before

• Flexible manufacturing

Globalization has shortened product release cycles• Offshore/outsourced R&D, manufacturing, development

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Streamlining Recipes from Product Development to ProductionChallenges to “Recipe Transformation”

Large number of documents associated with new product introduction (Specifications, BOMs, BOPs, Process parameters, etc.)

Lack of standardization of specifications, recipe/formulas, materials, terminology

Huge number of people involved from ideation through launch

Cross functional expertise and involvement needed

Inadequate re-use of development knowledge

Legal compliance required in multiple markets

Information accessibility

Vertical integration along different domains and IT environments

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Streamlining Recipes from Product Development to ProductionGlobal View “Recipe Transformation”

Original product releaseChange propagation

Original product releaseChange propagation

Plant 1

Plant 2Supplier

ContractMfgr

Plant 3

mBOM mBoO

Propagate BOM and BoO definition across multiple sites & localizations

Recipe Transformation rules created for each Product FamilySync BOM from SAP through to Manufacturing and report performance backup the chain

What if Execution AnalysisDoes a Plan have the capability to execute:

Capacity, Financially, Regualtory, and Safely?

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High Level Visual Flow of Recipe Transformation


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Siemens Recipe Transformation OverviewHigh Level Visual Flow of Recipe Transformation

Corporate R&DFormula Card

Corporate R&DGeneral Recipe

CorporateSite Recipe

SiteMaster Recipe

SiteControl Recipe

Execution

• Simple Bill of Material• Generic Making Instructions

• Heat 25% of Water• Mix for 10 mins• Add Salt• Mix for 20 mins• Add Blue Dye• Heat to 78 C

• Visually represented steps• Generic Materials• Library of business tasks/rules• Parallel additions• Increased structure of recipe

• [Heat] A1 to [Temp] 30 C• [Add] B1• [MIX] 20 mins

• Site Materials• Library of business tasks/rules• Further granularity of Process

steps• Material substitution

• Equipment model• Tag / Set point adjustments• Additional granularity of process

steps• Portfolio of capabilities

leveraged over time

• Execution

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Siemens Recipe Transformation OverviewHigh Level Visual Flow of Recipe Transformation

GeneralRecipe

Site Recipe

MasterRecipeFormula Card

Making Instructions

Transformation Workflow



SIMATIC IT Recipe TransformationBusiness Process

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Key points on Value, Challenges, Enablers, and KPI’s Feedback from the Process Industry


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Streamlining Recipes from Product Development to ProductionSiemens Recipe Transformation – Value key points

1. Speed to MarketReduction of the manual steps needed to execute a new product

2. InnovationFrees most valued employees to do innovation work

3. Quality and ExecutionReduced human error / quality issues

4. Efficiencies / Cost ReductionReduced skilled labor cost on non-value added activities

5. Organization / Logistics / Supply Chain / ERPAbility to integrate new business acquisitions faster

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Streamlining Recipes from Product Development to ProductionSiemens Recipe Transformation – Needed High Level Functions / Abilities

1. ConfigurabilityLibrary of Recipe Transformation re-usable Objects

2. IntegrationInteroperability – ability to interface with other platforms ERP/PLM/MES

3. SecuritySecurity – Integrates with corporate security, supports encryption

4. FunctionalityConsistent Execution/Predictability/Effectiveness across all levels of recipes

5. Vendor Support / Best PracticeImplements and defines industry standards and best practices

6. Quality and ExecutionIncreased data quality due to reduction in human error

7. Speed to MarketSpeed to market for new products

8. Efficiencies / Cost ReductionSignificant reduction in manual work

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Streamlining Recipes from Product Development to ProductionSiemens Recipe Transformation – Top Challenges / Risks

1. Vendor Capability / Technology CapabilityNo company has a single supplier for PLM, ERP, MES and Automation – high flexibility and generic integrations needed

2. OrganizationDifficult for Internal companies to buy-in to change current processes. Displacement of internal solutions is difficult

3. CostDifficult to quantify advantages to NPV (net present value) – other business priorities

4. Terminology / Standards / DefinitionsVarying definition of terms, like recipe transformation – need standards / nomenclature

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Streamlining Recipes from Product Development to ProductionSiemens Recipe Transformation – Measurable KPI’s

1. EfficiencyTime to market / NPI

2. CostTotal Cost of Ownership vs. ROI

3. OrganizationOrganizational improvements – reduced touch points

4. QualityQuality incidents (before and after)

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Initial Siemens Recipe Transformation Technology


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Siemens Recipe Transformation Overview General BoM View (High level)

Generic material and formula information can be captured in a form-based system such as Interspec

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Siemens Recipe Transformation Overview Recipe Editor

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Siemens Recipe Transformation OverviewRecipes and transformations are both represented as workflows!

RECIPE FLOW TRANSFORMATION FLOW

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Siemens Recipe Transformation Overview Recipes and transformations are both represented as workflows!

RECIPE FLOW TRANSFORMATION FLOW

After applying transformation

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Siemens Recipe Transformation Overview How a transformation flow affects the recipe

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Siemens Recipe Transformation OverviewHow a transformation flow affects the recipe

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Siemens Recipe Transformation OverviewTransformation flow editor – Creating complex transformation logic

These workflows can applied to different recipes or recipe classes.

Rule catalog

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Siemens Recipe Transformation Overview Rules definition: rule set editor

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Siemens Recipe Transformation Overview Rules definition: calculation editor

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Current Activities


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Current Activities – Siemens Recipe Transformation User Community

A community of Visionary Thought-Leaders of Recipe Management from Top Floor to Shop Floor

Charter

Bring together a community of manufacturing thought-leaders/decision makers to collaborate and address the challenges and opportunities of Recipe Transformation and to influence the approach, methodology, and solution being developed by Siemens

Determine customer engagement, timing, and investment commitment to move ahead with a pilot following the best practice methodology as defined by the community

Kick Off

Occurred on Oct 17th in Chicago, ILRegular scheduled meetings are setup for moving the initiative forwardPlease contact any of the Siemens SIMATIC IT R&D Suite Leadership team for more information

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Thank you for your attention !

Ken HallProgram ManagerSIMATIC IT R&D Suite

Phone: +1 (630) 437-6724Mobile: +1 (630) 715-3481

E-mail:[email protected]

siemens.com/answers

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