1. OSIsoft User Conference Monterey, March 2002 Tank-to-Boardroom: Inventory Management Comes of Age! A web service strategy featuring OSIsoft Technologies & Industrial Evolution Services Roland Heersink CEO, Industrial Evolution

2. OSIsoft User Conference Monterey, March 2002 Presentation Outline Inventory management  What is it?  Typical solutions OSIsoft / Industrial Evolution approach  Solution components  How it all fits together BASF Mexicana implementation

3. OSIsoft User Conference Monterey, March 2002 What is Inventory Management? B E A CD Manufacturer Challenge : Match production & deliveries to customer demand

4. OSIsoft User Conference Monterey, March 2002 What is Inventory Management? B E A CD Manufacturer Step 1: Collect inventory data

5. OSIsoft User Conference Monterey, March 2002 What is Inventory Management? B E A CD Manufacturer Step 2: Forecast consumption

6. OSIsoft User Conference Monterey, March 2002 What is Inventory Management? B E A CD Manufacturer Step 3: Integrate Plant & Office Corporate ERP/CRM Systems

7. OSIsoft User Conference Monterey, March 2002 What is Inventory Management? B E A CD Manufacturer Optional: Order Reconcilation Corporate ERP/CRM Systems Orders Alpha-X 4000. Beta-Y 3000. Gamma 5000. Omega 7500. Receipts Alpha-X 4000. Beta-Y 3000. Gamma 5000. Omega 7500. = ?

8. OSIsoft User Conference Monterey, March 2002 Why do Inventory Management? B E A CD Manufacturer Corporate ERP/CRM Systems For the customer: Reduced “excess” inventories Lower working capital For the manufacturer: Better inventory control & planning Optimized plant operations For both parties: Higher profits Vendor-Managed Inventory

9. OSIsoft User Conference Monterey, March 2002 Solution Components Centralize  Collect all inventory measurements into a central location Reconcile  Match deliveries & receipts Forecast  Predict when next deliveries are required Integrate  Send forecast data to corporate planners  Match plant operations with forecasts

10. OSIsoft User Conference Monterey, March 2002 Typical Solutions Centralize  Data collection – Daily or weekly values collected – Electronic capture from PLC, DCS, PI or other – Manual entry also possible! – Transfer via e-mail, FTP, network connection  Data centralization – Directly to planning systems (ERP) – Storage in inventory database

11. OSIsoft User Conference Monterey, March 2002 Our Solution Centralize  Data collection – PI-to-PI, PI-UDS or other as required – Real-time data collection  Data centralization – All data stored in a central PI System

12. OSIsoft User Conference Monterey, March 2002 Typical Solutions Reconcile  None  Manual (ugh!)  Automatic – At the off-line business system level – At the inventory database level – Most often some sort of statistical regression

13. OSIsoft User Conference Monterey, March 2002 Our Solution Reconcile  ProTRAQ for receipt reconciliation  Optional: Sigmafine

14. OSIsoft User Conference Monterey, March 2002 Typical Solutions Forecast  None  Simple difference – Level minus fixed consumption rate  Advanced difference – Level minus order rate  Real-time difference – Level minus projected consumption

15. OSIsoft User Conference Monterey, March 2002 Our Solution Forecast  ProTRAQ software provides the following – Volume calculations – Receipt identification – Consumption rate estimation based on history – Time-to-Reorder; minimum delivery time – Time-to-Empty

16. OSIsoft User Conference Monterey, March 2002 Typical Solutions Integrate  None  With Plant Systems – Feedback of inventory forecasts to plant automation/optimization systems – Done in real-time  With Business Systems – Data input to order & shipment database of business planning systems – Periodic input only; eg. weekly

17. OSIsoft User Conference Monterey, March 2002 Our Solution Integrate  With Plant Systems – Directly to local PI System or other historian using PI-to-PI or PI-UDS – No direct access by any user to on-site systems!  With Business Systems – Direct bi-directional communications with corporate ERP systems (like SAP or other) via RLink – Generate order requests – Receive order plans

18. OSIsoft User Conference Monterey, March 2002 Our Solution Intelligent Prediction Business Integratio n Data Aggregation & Visualization Putting it all together, we have: PI ProTRAQ RLink (5000+) (40+) (140+)

19. OSIsoft User Conference Monterey, March 2002 BASF Mexicana D PINTEX T

20. OSIsoft User Conference Monterey, March 2002 BASF Deployment Architecture Customer Site Industrial Evolution Hosting Center On-Site Historian Hosted PI Server Firewall ISP VPN Server Hosting Servers Internet Other Authorized Users ISP BASF ISP PLC

21. OSIsoft User Conference Monterey, March 2002 BASF Deployment Architecture Customer Site Industrial Evolution Hosting Center On-Site Historian Hosted PI Server Firewall ISP VPN Server Hosting Servers Internet Other Authorized Users ISP BASF ISP PLC Periodic Synchronization Periodic synchronization (most are hourly or daily)

22. OSIsoft User Conference Monterey, March 2002 BASF Deployment Architecture Customer Site Industrial Evolution Hosting Center On-Site Historian Hosted PI Server Firewall ISP VPN Server Hosting Servers Internet Other Authorized Users ISP BASF ISP PLC No user access to customer network, site systems or devices!

23. OSIsoft User Conference Monterey, March 2002 BASF Deployment Architecture Customer Site Industrial Evolution Hosting Center On-Site Historian Hosted PI Server Firewall ISP VPN Server Hosting Servers Internet Other Authorized Users ISP BASF ISP PLC All user access is by secure userID / password only

24. OSIsoft User Conference Monterey, March 2002 BASF Deployment Architecture Customer Site Industrial Evolution Hosting Center On-Site Historian Hosted PI Server Firewall ISP VPN Server Hosting Servers Internet Other Authorized Users ISP BASF ISP PLC Data owner controls all user access & privileges

25. OSIsoft User Conference Monterey, March 2002 Look at typical inventory views  Taken from: www.industrialevolution.com/apps in the “GCP Industries” folder BASF Deployment

26. OSIsoft User Conference Monterey, March 2002

27. OSIsoft User Conference Monterey, March 2002

28. OSIsoft User Conference Monterey, March 2002

29. OSIsoft User Conference Monterey, March 2002

30. OSIsoft User Conference Monterey, March 2002

31. OSIsoft User Conference Monterey, March 2002

32. OSIsoft User Conference Monterey, March 2002

33. OSIsoft User Conference Monterey, March 2002

34. OSIsoft User Conference Monterey, March 2002

35. OSIsoft User Conference Monterey, March 2002

36. OSIsoft User Conference Monterey, March 2002

37. OSIsoft User Conference Monterey, March 2002

38. OSIsoft User Conference Monterey, March 2002

39. OSIsoft User Conference Monterey, March 2002 Our Solution B E A CD Manufacturer Corporate ERP/CRM Systems Intelligent Prediction Business Integratio n Data Aggregation & Visualization