HOW CAN PROFICY SERVE THE ENERGY ISSUE? by Coleman Easterly Feb 2008

How can Proficy Serve the Energy Issue? Let’s explore: What is Proficy? (What it does best) What about energy in manufacturing? What opportunities to save energy? Which ones can Proficy serve?

What is Proficy Plant Applications? System for automating and integrating the information tasks of managing and optimizing manufacturing performance

Value of Proficy TM Ranked By $ 1.MOM 2.ERP 3.CRM 4.SCM 5.PM Ranked By Driver 1.Compliance 2.Customers 3.Competition Business Process Integration Execution Of Production Orders Shop Floor Scheduling / Sequencing Product Quality and Compliance Product Traceability Workflow Management Performance Monitoring / OEE Asset Maintenance Confidential – do not distribute

$ $$ $ $ $ $ Can’t control what you can’t see…

(Proficy) Can control what you can see…

Real-time Situation Awareness From this To This

Historical Understanding From this To This ?

How It Works Proficy continuously monitors raw data… based on configurations… detects and interprets events and collects information… Logs data, calculates KPIs, and monitors against stds… provides reports and analysis to help you understand why… alerts you with alarms & s…

What you do with Proficy Manage objectives Drive Activity Capture reality Monitor compliance Communicate Capture reasons Analyze and report Evaluate/Evolve and improve (Performance Management)

Proficy Strengths Performance Management: –Driving business objectives into manufacturing –“Actionable Intelligence” from data Data collection & Integration – the whole picture Conformance tracking Real-time Visibility Historical Analysis Automated Reporting Self-sufficient system management

WHAT ABOUT ENERGY IN MANUFACTURING?

Motivation is Increasing for Energy Conservation The Environment Cost Pressure (competition for products and fuel) Citizenship / Company Image Regulatory Pressure

Remember these Culture Shifts? Safety OSHA, TCIR, S.T.O.P., Quality ISO 9000, 6-Sigma Cost BPR, ABC, ERP Productivity OEE, Lean And now (or simply more-so) Energy EPA, ISO 14000, GHG, Ecomagination, Cluster Rule, Carbon Credits…

HERE ARE SOME DETAILS OF A GOVERNMENT STUDY

Of Energy consumed for Manufacturing, only a fraction delivers useful work. Most is lost in generation, delivery, and the process.

Energy Consumed or Wasted for Manufacturing

20% of Industries use 80% of the energy Proficy grew up in these industries – a perfect fit!

15% of all mfg energy wasted at these

WHAT OPPORTUNITIES TO IMPROVE?

Top 20 Energy Opportunities

We want to zero in on a few

Process Optimization and Best Practices is a huge component of the opportunities

Best Practice makes a huge contribution

Key Points from Energy Roadmap Improve systems to convert energy to useful work more efficiently (thermal, electrical, mechanical) Minimize Energy and Cost, while meeting product specifications and operating requirements Improve productivity through reduction in product waste, optimized processes and schedules

Key Points from Energy Roadmap Improve systems to convert energy to useful work more efficiently (thermal, electrical, mechanical) Minimize Energy and Cost, while meeting product specifications and operating requirements Improve productivity through reduction in product waste, optimized processes and schedules Improve the physical Mfg Processes Improve overall effectiveness/efficiency Optimize and Balance Priorities

HOW CAN PROFICY HELP?

Proficy can help by Ratcheting Best Practices! Improve systems to convert energy to useful work more efficiently (thermal, electrical, mechanical) Minimize Energy and Cost, while meeting product specifications and operating requirements Improve productivity through reduction in product waste, optimized processes and schedules Improve the physical Mfg Processes Optimize and Balance Priorities Improve overall effectiveness/efficiency

What you do with Proficy Manage objectives Drive Activity Capture reality Monitor compliance Communicate Capture reasons Analyze and report Evaluate/Evolve and improve (Performance Management)

Examples of Proficy Impact Proficy Plant Applications is production operations management with actionable intelligence to optimize across the priorities of manufacturing, and balance the trade-offs between them. Mfg OperationOperating TopicImprovement Result Beverage Packaging Schedule & BOM Management & ERP Synchronization 5% productivity CPG Production Quality & Traceability Management Traceability Compliance in Customer Audits Wire Production Inventory & Consumption Management $2MM Inventory reduction Food PackagingEfficiency Management10% Productivity CPG Production Run-to-Target and Process Center-lining 2 to 5% Productivity Brewing & PackagingEnergy Management5% Mfg Cost Reduction Food ProductionEnvironmental Management Compliance and performance Details of these examples in notes view of this slide

Proficy versus Major Capital Improvement Projects Lower risk (less cost than capital projects) Need data anyway, to justify and evaluate capital projects Need actionable information anyway, to run them

Proficy can help conserve energy by: Optimizing and Balancing Priorities: Minimize Energy and Cost, while meeting product specifications and operating requirements –Track quality, process, and energy variables –Analyze correlations, performance capabilities –Calculate KPIs from mixed inputs (kW/lb, $/lb, etc) –Evaluate Energy Improvement efforts to assure they don’t mess up quality or something else –Capture, enforce, and ratchet best practices

Proficy can help conserve energy by: Improving overall efficiency: Improve productivity through reduction in product waste, optimized processes and schedules –Track OEE (Availability * Throughput * Quality Yield) –Center-lining ratcheting (sustained) best practices –Support Lean and 6Sigma approaches

Target USL LSL Center Process Reduce Spread Defects Six Sigma: The Philosophy Reduce variation & center the process Off Target Excessive Variation

Reduced Cycles Better Delivery More Capacity Better Quality Productivity Improved Customer Satisfaction Lean: The Philosophy Expose and reduce waste

Where is Waste in Manufacturing? These not only waste time and money, but also ENERGY

Lean Drives Cycle Time Reduction Leveraging Proven Solutions … Maximizes Customer Responsiveness With the Least Inventory/Resources Lean Six Sigma = Efficiency & Consistency Six Sigma Drives Defect Reduction Leveraging Analytical Techniques … For Complex Problems with Unclear Root Causes or Design Solutions Time After Before Time Value added Non-Value added

Proficy Helps You To: Save Energy “Do the Right Things Right” Automate Information Tasks (logging and reporting) Prioritize and Focus Improvement Effort Evaluate Performance Evolve Self-Sufficiently