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1 Gold Keystone Sponsors
Digitizing the Supply Chain - New Product Development & Introduction (NPDI) MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors Welcome to MESA’s Unconference on … Please be sure your registration information was captured at the door. We promise not to spam you, but to keep the conversation going. And note also that is one of the exits – others are XXX (if any)

2 Format for this Session
What is an Unconference? MESA Content to start discussion MESA Working Group hot topics Discuss your questions and expertise Create action items for MESA Learn from each other Experience what MESA Knows! This is not primarily a presentation session, but a community discussion. We will be addressing issues everyone in this room shares, so Please be prepared to participate today. And please also recognize that we use what our UK colleagues call the Chatham House Rule: When a meeting is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed. So what that means is you can confidently ask questions and share your expertise without fear that you will be breaching company confidentiality. We are taking notes only for the purpose of being able to follow up with you, as that has often been requested. We have some MESA content and hot topics that we believe will start the discussion. Then the objective is to have a useful discussion where everyone shares openly. Another objective is for you to help drive what MESA does next! So be thinking and get ready to participate.

3 Introductions Erik Nistad, Mondelez International
Director, Enterprise Business Services, Integrated Supply Chain Standards & Solutions, Vice Chairman, MESA Americas Board Mike Williams, The Dow Chemical Co. Recently Retired MESA Americas Board Member at Large photo photo I’m XXX And with me to moderate and guide the session is XXX

4 Introduction to MESA International
MESA is… …building bridges-of-understanding from the Plant to the Enterprise …to drive clarity on the role and value of modern Information Technologies in production operations MESA International is a non-profit industry association We focus on IT in production operations – across all manufacturing and production segments. And one area of long-time focus is plant-to-enterprise information flows. We are the premier community for networking and peer-reviewed content on these topics.

5 Global Education Program
How MESA Delivers MESA International: Building Bridges-of-Understanding from the Plant to the Enterprise Peer -to- Peer Points -of- View Global Education Program How does MESA operate? Working from the bottom of this slide up, MESA speaks with a voice stronger than any individual – with the entire range of practitioners How we operate is with three main pillars: Network of the most knowledgeable, experienced and passionate people about production IT spanning the globe Rich peer-reviewed content in an array of white papers, implementation frameworks for plant-to-enterprise integration, research studies, guidebooks, and presentation materials by those with deep experience Instructor-led accredited training to give your team a leg up wherever they are in the world and on their journey with production IT All of these activities allow MESA members to have a stronger voice as well as greater success. Today, we’ll discuss just one of dozens of MESA topics… Speaking with the Voice of Industry’s Practitioners

6 MESA’s Working Groups Recipe Transformation Working Group
Founded in mid-2013 Focused on establishing a common “language” for transforming a formula or bill-of-material into an executable recipe. Open for new members (must join MESA to participate) Chaired by Erik Nistad, Director, Enterprise Business Services, Integrated Supply Chain, Mondelez International Contact:

7 Why are we (you) here? It takes too long to get products from R&D to a customer We are still using stone age tools to move information from R&D to full production! And we use the same tools multiple times for every technology transfer In all process industries! How do we get the right information transferred at each step in the process? Fly engineers to the appropriate site The equivalent of wandering minstrels or sitting around the campfire and exchanging stories And not sure if the right info is getting across

8 There is a Better Way Common Language to define how to make a product
Common meaning and structure for the information From Laboratory to Pilot Facility to Production Facility Between production facilities for technology transfers Across production stages

9 Your Ideal process The ideal process has:
Information created only once Information is available to all parts of the company that need it Information is guaranteed correct and up to date, and Information is understandable by all parts of the company and suppliers

10 The Real Process Unfortunately in the real process:
Information is lost and must be rediscovered Groups work on incomplete information Groups work on out of date information The information is inconsistently understood Information is not shared with suppliers

11 Enterprise Recipe Management
Standard Process Descriptions for products for: Technology Transfers Site sourcing decisions Investigations & Studies MES and Batch Startup Co-development Sustainability ERM is a STRATEGY not a tool It is a method for faster technology transfers It is a method to support faster investigations and better production data collection It is a method to reduce the time and effort required to build production (Master) recipes Captures site best practices for more consistent multi-site quality

12 ERM Information Information for automated technology transfers
Definition of equipment independent manufacturing processes Information for QbD (Quality by Design) Design Spaces Information for lean manufacturing studies Information for multi-site investigations Information for sustainable manufacturing Information for contract manufacturing

13 Why ERM Increased Regulatory Agency confidence with our processes
Same structure / format across all sites Recipe development down to days instead of months Consistent approach to recipe development across sites for product transfer Faster / More RFT Development Will achieve a higher level standardization of manufacturing process Following industry standards & learning from others Improving site to site knowledge of processes (sharing) Supports basis for site to site supply chain evaluation (standardized processes) Highlight EBR development Consistency in approach Connections to other systems Improving site to site knowledge

14 The ERM Concept ERM Standard Process Descriptions for Products
based on Standard Definitions of Manufacturing Operations using Standard Quality Attribute Definitions (CQA, KQA) and Standard Process Parameter Definitions (CPP, KPP) Standard Process Report Definitions ERM Definitions of manufacturing functions are product independent Within manufacturing functions are defined CQA and CPP Also determine wheat reports of data need to be generated

15 Automatic, Executable Recipe Generation
Has anyone tackled automatically converting info from NPDI to “executable recipes”?

16 Three Processes Creation of a core set of process actions
Creation of site specific, equipment constraints Creation of General Recipes This is how our working team see’s this process working and would like to discuss it with this group

17 Core Processes Implemented By A Team Of SME’s
Create a core library of Process Action definitions Create a core library of Equipment Constraint definitions. Create sample General Recipes for existing products to validate the libraries. Maintain the libraries and distribute to the sites and R&D.

18 Processes Implemented By Site Process Experts (SPE)
Create and maintain a local library of Recipe Segments that implement the process actions on the site’s equipment. Create and maintain the equipment maps that define the layout and material flows through the site’s equipment. Create, using the transformation algorithms defined later in this paper, master recipes from the General or Site recipes provided by the core team or R&D.

19 Processes Implemented By R&D
Create General Recipes as the definition of how to manufacture a product, using the definitions in the Process Action and Equipment Constraint libraries As new processes are developed, work with the SMEs and the SPEs to develop and define additional Process Actions and/or Equipment Constraints.

20 Output Are Libraries Used In ERM
A Process Action definition library A library of Process Parameter definitions, used in Process Action definitions A library of Quality Attribute definitions, used in the Process Action definitions A library of Units of Measure, used in the process action and Equipment Constraint definitions A library of Process Report definitions, used in the Process Action definitions An Equipment Constraint definition library Site recipe segment libraries General recipe libraries

21 Automation With these definitions and libraries it is then possible for software to automate the creation of master to control recipes for a specific site

22 Questions? What do all of you think?
Does this make sense to you / your organization? Has anyone been able to cost justify an ERM type approach?

23 Barriers To NPDI Introduction And Operational Excellence
Acknowledgement: Original slides extracted from 2003 MESA report by EDS Reference to MESA white paper PLM Guidelines Updated for MESA 2014 Mike K Williams MESA member The Dow Chemical Company – retired represented 2014 MESA –Industry Week UnConference

24 Typical NPDI Environment
Design – Planning – Manufacture ERP Supply Chain Product Scheduling Develop & Scale Product Enterprise Recipe Mgmt eBOM missing Material Composition Equipment Capability Shop floor Execution Process Control R&D Manufacturing

25 Are these your current processes?
EBOM Drawings Models Specs ECO’s Work instructions ECO’s Routings MBOM Execute Plan Shop Floor Line 1 Line 2 Line 3 Line n Design The old concept of “throwing it over the wall” between design, planning, and manufacturing still applies to many companies today. When the systems of design, planning, and manufacturing are not connected through a digital backbone, one of two things generally happens: Change management and process coordination works with few errors, but manually managing this process is extremely inefficient. Change management and process coordination does not work, resulting in scrap, lost cycle time, and rework. 1st Transformation 2nd Transformation

26 Now imagine coordinating a Refinery

27 Configured work package
The integrated view Production Orders Process Configuration Op. Routing Work Instructions Consumables Characteristics Assignment Shop-floor Reqs. Tooling Data Collection fields Operator Certification Configured work package Shop Floor Execution Process Definition Reconciliation and Change Requests Product Produced Material Consumed Machine Time utilized ERP E-BOM M-BOM Characteristics Prod. Configuration Product Definition The Waltz has three steps: PLM POM OEE Enterprise Recipe Management - The glue

28 Benefits of Integrated POM-PLM-OEE
Creates an unambiguous communication from product and process definition to the point of manufacture Configuration management applied to product and process derive work package for a specific work order Direct, associative re-use of product definition data right to the shop Feed back to design and supply chain planning: on production performance Process capability Fast, accurate change implementation Delivers the right data, right time and place Avoids data re-entry error Saves time and skilled labor Expedites Product and process improvement Provides improved CAPEX utilization

29 More Resources MESA Whitepaper: June 2013 – “Using General Recipes for Standardized Multiple Plant Manufacturing Science” MESA Whitepaper: November 2008 – “Manufacturing Science Model Extensions to Address Lean Manufacturing and Lean Supply Chain” MESA Whitepaper: November 2008 – “An Iterative Refinement Approach towards a Structured Recipe Design” MESA Whitepaper: March 2008 – “Manufacturing Science Model Extensions to Address Product and Process Sustainability” MESA Whitepaper: April 2003 – “General to Master Recipe Transformation, Capturing Best Engineering Practices in Recipe Generation” MESA Whitepaper: October 2002 – “From a Corporate Product Specification to a Control Recipe: It's not a Transatlantic Trip” MESA Whitepaper: October 2002 – “General Recipe: Multiproduct Facility Design; Technology Transfer” 100s of materials available to Premium members at no additional charge Speaker: Please find and list appropriate MESA resources or ask the Working Group or Technical Committee leaders to assist you with that.

30 Why MESA? Join the conversation at: www.mesa.org
Global community for improving Operations Management with IT Best practices & guidance to drive productivity & profitability Global Education Program raising competency for production IT success Facilitate innovation for real-time Plant to Enterprise (P2E) integration Be heard and drive industry forward Our association, MESA International, is 20 years old, and it is a worldwide community of people who are all passionate about production businesses. I have learned more and made more life-long industry buddies in MESA than I’d ever dreamed possible. You need to get actively involved in MESA International. Learn best practices from others with deep experience Educate your team Facilitate understanding Make your voice heard to move the industry forward Join the conversation at:

31 To Improve Your Success…
To access all of that and continue to be part of this conversation, please join us. We offer memberships for companies and individuals, and you will meet the most experience people in IT for production operations from around the world if you join and become active. Visit the MESA booth in the middle of the exhibit hall starting tonight and then for the next few days. Or talk to any of us or the folks at the table outside for more information.

32 Thanks for Participating!
Erik Nistad, Mondelez International Director, Enterprise Business Services, Integrated Supply Chain Standards & Solutions, Vice Chairman, MESA Americas Board Mike Williams, The Dow Chemical Co. Recently Retired MESA Americas Board Member at Large MESA Enterprise Recipe Transformation Working Group photo photo We really appreciate your active participation today. If you enjoyed this conversation and learned something or feel you contributed, realize it is like many conversations that occur every week in our association. We are passionate about the use of IT in manufacturing operations, and hope you will join us to move our industry forward effectively.

33 Thanks for Participating!
Moderator #2 Name Job Title/MESA Title Contact info Moderator #3 Name Logo (if applicable) photo photo Logo (if applicable) We really appreciate your active participation today. If you enjoyed this conversation and learned something or feel you contributed, realize it is like many conversations that occur every week in our association. We are passionate about the use of IT in manufacturing operations, and hope you will join us to move our industry forward effectively.


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