Data Integration in Pulp and Paper Industry Timo Syrjänen PELC 2006, 7th June 2006 World Forum Convention Centre, The Hague

Content Key change forces in pulp and paper industry Data integration in one company Data integration in project and in mills Projects to solve interoperability problem – PaperIXI research project – THTH Association and PRINDEX project Data integration is not only technology Conclusion

Pöyry - Global consulting and engineering Client- and technology-oriented globally operating consulting and engineering firm Core operations based on three know-how clusters: energy, forest industry, and infrastructure & environment Global market leader in forest industry Strong international position in energy, and infrastructure & environment Office network in 45 countries

EUR million Pöyry - Net sales

Content Key change forces in pulp and paper industry Data integration in one company Data integration in project and in mills Projects to solve interoperability problem – PaperIXI research project – THTH Association and PRINDEX project Data integration is not only technology Conclusion

Consolidation. – Client companies continue to consolidate. The consulting and engineering business is also being consolidated. Networking. – Networking will promote co-operation via partnership agreements and alliances. It will create new business opportunities and expand the service mix. Digital revolution. – The digital revolution makes information management and utilization increasingly important. Information is no longer seen as a production input dependent on time and place. Key change forces in pulp and paper Industry

Speed of change and volatility. – The business environment is changing faster and becoming more volatile. Scarcity of resources. – Shortages of natural resources, such as fibre, energy and water, increasingly guide investment decisions in several market areas. Competition for talent. – Talent is an important competitive advantage. Cost-effectiveness. – Success in international competition requires continual improvement of operations and competitiveness. Key change forces in pulp and paper Industry

Content Key change forces in pulp and paper industry Data integration in one company Data integration in project and in mills Projects to solve interoperability problem – PaperIXI research project – THTH Association and PRINDEX project Projects to solve interoperability problem Conclusion

Process and Mechanical Engineering Electrical Engineering Electrification tasks Automation Engineering Instrumentation tasks Plant Model It all started from work process

Now we are building virtual mill

Integration of internal engineering systems

Pöyry data integration Since 80’s Successful results Tool to share projects (within Pöyry offices) Integration used in also with selected clients Commercial and legacy systems used Not based on one standard

Content Key change forces in pulp and paper industry Data integration in one company Data integration in project and in mills Projects to solve interoperability problem – PaperIXI research project – THTH Association and PRINDEX project Data integration is not only technology Conclusion

Project owner Project owner Suppliers Sub-contractors etc. Project is teamwork – every project is different

EPC – ’divide and conquer’ Package A supplier using system X Package B supplier using system Y Package C supplier using system Z Areas between Packages MILL

Plant Portal Data Model ProElina Production Control Maintenance Documentation Process Control Information repositories at a mill Business Systems ERP 3-D model VIRTUAL MILL

Engineering and Maintenance Data Flow Transactional Business System ( ERP) Maintenance System Engineering Design SystemDocument Management S. Plant Monitoring Systems, eg. DCS Asset Info Notifications Work History Overall Design Diagnostics and History Document Links Common User Interface : Plant Web Portal

Industry data exchange today subcontractor supplier consultant customer Document database (document hotel) Abshdhd Excel lists Design documents Data exchange using Excel files and separately agreed other data formats Value chain

Content Key change forces in pulp and paper industry Data integration in one company Data integration in project and in mills Projects to solve interoperability problem – PaperIXI research project – THTH Association and PRINDEX project Data integration is not only technology Conclusion

Research project : PaperIXI How to solve product data interoperability problems in the paper cluster equipment supply network. PaperIX defines: product data exchange format how product data is delivered how product data is positioned to product data applications PaperIX technology: format language: XML delivery: WWW positioning: product and mill structures

PaperIXI, Collecting the data: mill model server Mill Engineering consultant Component supplier Component supplier Integrator Component supplier Interface

PaperIXI: Conclusions Companies should keep constant watch on the standardization efforts. Standards develop slowly but it is wise to know what is to be expected Companies should try to choose and extend existing standards instead of creating own standards. XML will be ASCII of structured information exchange. Companies should make sure that the product information systems are able to import/export XML Since universal PDE standard is not expected in the near future, companies should make sure that transformation engines are part of the import/export interfaces

PaperIXI: Conclusions Companies should continue co-operation and transform PaperIXI project into continuous process Companies should select common data format for exchanging mill hierarchies and technical data (PaperIXI mill model schema) select product coding and classification systems (E.g. Forest Industry Standard Grouping for Materials and Services) consider to use common mill model server for distributing data

Content Key change forces in pulp and paper industry Data integration in one company Data integration in project and in mills Projects to solve interoperability problem – PaperIXI research project – THTH Association and PRINDEX project Data integration is not only technology Conclusion

Joining forces in data integration There has been plans in Finland to join forces with process industry cluster, research institutes, universities and Tekes to promote data integration Major companies in this are interested in this matter Process industry cluster will establish an interest group to coordinate development work and to promote related standardization => THTH –association (industry’s decentralized data management – association) Establish Enterprise group project PRINDEX to speed up starting phase – Enterprise group project application managed by one participant

Group vision Business vision: – Transparent data exchange interface facilitates easy application integration for engineering, maintenance and process automation systems – between different business parties with guaranteed interoperability – causing remarkable cost reductions in workload and – opening new business opportunities and earning logic. Technical vision: – Ensure interoperability between different applications over the business network (standard interface, message structure and naming conventions based on standard plant model). – The commonly agreed business rules will be implemented on the data exchange interface.

PRINDEX - project Project target is to specify common interface for different participants working in process industry All major pulp and paper cluster companies from Finland are participating the project First phase concentrates piloting multilateral data exchange (2006) – reference implementation for selected use cases Next phases are planned based on result of phase I.

Supplier Office 2 Office 1 Owner’s system Owner’s system Mill Owner’s system Consult Owner’s system Owner’s system Unit 1 Unit 2 Unit 3 Internet services Internal services External services Interface plug-in PRINDEX - visio

Content Key change forces in pulp and paper industry Data integration in one company Data integration in project and in mills Projects to solve interoperability problem – PaperIXI research project – THTH Association and PRINDEX project Data integration is not only technology Conclusion

Telecommunication Computer technology Data Business Processes Human resources Technology Data integration is not only technology

Data integration is not only technology There are many existing standards – Not only one standard will dominate – Integration between standards How to make sure that organization are flexible to work in different contexts Learning of new processes, methods and standards is important in all levels – It will take time and patience

Finnish forest cluster Foreign forest cluster Development co-operation Standardization Improvement of industry operations International co-existence Development co-operation National standardization Competition Project co-operation managed by owner Conclusion

Conclusion Globalization is important Pulp and paper industry must follow and study what other industry sectors are doing – ADI, IFC, etc. Data integration is not only technology – Remember human aspects – Leaning, studying, testing – New work processes and methods Small steps with clear vision where we are going