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Emerson Exchange 10th September 2007, Dallas, Texas

Emerson Exchange 10th September 2007, Dallas, Texas. How Automation in the Food & Beverage industry can improve business competitiveness? Andy Smith Managing Partner. Today’s Agenda. The Automation Arena The Global Market The Automation Value The Knowledge Asset Proposition

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Emerson Exchange 10th September 2007, Dallas, Texas

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  1. Emerson Exchange10th September 2007, Dallas, Texas How Automation in the Food & Beverage industry can improve business competitiveness? Andy Smith Managing Partner

  2. Today’s Agenda • The Automation Arena • The Global Market • The Automation Value • The Knowledge Asset Proposition • The Integrated Automation Model • Global Trends • Food & Beverage Industry Business Drivers • Food & Beverage Industry Needs & Issues • Are there Missing Automation ‘Bits’?

  3. Short Bio • 30 + years experience in Process Control, Automation and Process Management Systems • International Experience in General Management, Strategic Marketing, Sales & Business Development across many different industries. • Careers with Emerson, Foxboro, Honeywell and APV. • Managing Partner of GroupCytek; a platform independent Automation consultancy and project management services company, – www.groupcytek.com

  4. Terminology • Automation (Ancient Greek = self dictated) is the automatic operation or control of equipment, a process, or a system; the condition of being automatically controlled • Data is a measurement that can be disorganized and when the data becomes organized it becomes information.

  5. Where does Automation Play?

  6. Where does Automation Play? • Process /Manufacturing Control • Unit Control • Plant Availability • Optimisation • Maintenance

  7. Where does Automation Play? • Production Management • Production Information • Operations Interface (HMI) • Process Unit / Area Supervision • Recipe Management • Process /Manufacturing Control • Unit Control • Plant Availability • Optimisation • Maintenance

  8. Where does Automation Play? • MES • Quality Management • Asset Management • Production Tracking/Scheduling • Real Time Data Management • Production Management • Production Information • Operations Interface (HMI) • Process Unit / Area Supervision • Recipe Management • Process /Manufacturing Control • Unit Control • Plant Availability • Optimisation • Maintenance

  9. Where does Automation Play? • ERP • Financial • Supply Chain • Procurement • Marketing • Business Operations • MES • Quality Management • Asset Management • Production Tracking/Scheduling • Real Time Data Management • Production Management • Production Information • Operations Interface (HMI) • Process Unit / Area Supervision • Recipe Management • Process /Manufacturing Control • Unit Control • Plant Availability • Optimisation • Maintenance

  10. Global Market

  11. Global Market

  12. Technology Channels to Market Equipment Suppliers F&B average 70% Europe 80% N America 50% China 90% F&B average 30% Europe 20% N America 50% China 10% OEMs & Integrators End Users

  13. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS Process & Manufacturing Production Boardroom

  14. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Process & Manufacturing Production Boardroom

  15. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Data to Desktop Process & Manufacturing Production Boardroom

  16. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Integration of New Applications Data to Desktop Process & Manufacturing Production Boardroom

  17. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Unlocking knowledge in Legacy Systems Integration of New Applications Data to Desktop Process & Manufacturing Production Boardroom

  18. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Integration of Legacy and New Generation Systems Unlocking knowledge in Legacy Systems Integration of New Applications Data to Desktop Process & Manufacturing Production Boardroom

  19. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Plant to Boardroom System Performance Improvement Integration of Legacy and New Generation Systems Unlocking knowledge in Legacy Systems Integration of New Applications Data to Desktop Process & Manufacturing Production Boardroom

  20. Where can Automation Help? Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Transform Data into Knowledge and Business Intelligence Plant to Boardroom System Performance Improvement Integration of Legacy and New Generation Systems Unlocking knowledge in Legacy Systems Integration of New Applications Data to Desktop Process & Manufacturing Production Boardroom

  21. What is Knowledge Management? • Knowledge is defined as: “the facts, feelings or experience known by a person or group of people”. • Knowledge Management is: the recognition, storing and protection of all information needed for the successful operation of the business. • Knowledge is an ASSET

  22. How is Knowledge Formed? • Knowledge is formed from DATA • Data takes and is held in many forms: • by employees, shareholders • Within the organisations system infrastructure • Externally, by suppliers, customers • Data then becomes KNOWLEDGE by the way it is used • Knowledge is made up of HARD and SOFT elements • Hard Elements include Intranets, Data Warehouses, Communication Networks, Application Software • Soft Elements include Education, Collection Tools, Benchmarking, Strategic Alliances, Partnerships

  23. Using Knowledge? • Main reason for capturing Knowledge is to enable it to be shared, thus triggering innovation • Technology has made it possible to store and manipulate vast amounts of Data • People are central to this as they create, form and use Knowledge • Organisations must: • Design systems that fit people’s needs • Provide continuous education, training and mentoring in the use of knowledge and knowledge sharing • Encourage and reward employees who positively commit to continuous learning

  24. Where can Automation Help? Unlock Value In People & Systems Build Knowledge Capital Asset Feedstock for Knowledge Collateral AUTOMATION Transform Data into Knowledge and Business Intelligence Plant to Boardroom System Performance Improvement Integration of Legacy and New Generation Systems Unlocking knowledge in Legacy Systems Integration of New Applications Data to Desktop Process & Manufacturing Production Boardroom

  25. More than a technology proposition

  26. You cannot control what you cannot measure Real-time Plant Intelligence Underlies Sustainable Performance Improvements Real Time, Plant Intelligence Performance Analysis Performance Improvement Sustained Performance Enables Continuous Improvement Loop

  27. OEM Data Management Model • Compliance with S88 Standards for recipe management flexibility • Compliance with S95 Standard for information visibility by synchronising and managing business and production processes The technology vision takes disparate plant data and structures it into information.

  28. Market Drivers

  29. Market Trends Oil Price Volatility (Offshore Users) Deregulation (Utilities) Population Growth Increasing Consumer Wealth in Developing Markets Increasing Global Competition (Automotive) Environmental Compliance

  30. Market Trends – Food & Beverage Obesity • Sourcing Manufacturing Logistics Consumers Distribution Channels

  31. Retailers Business Drivers • Solid Brand Equity • Ecological Responsibility – Being Green, Sustainability, CO2 Emissions • Supply Chain ‘Fairness’ • Social Responsibility • Increasing and Accessing Developing World Consumer Wealth

  32. Manufacturer Business Drivers • Brand Equity et al • Regulatory Compliance • Product safety • Product Quality • Resource Efficiency • Operational Performance • Time to Market • Production Flexibility • Maintenance Productivity • Lowest Cost of Ownership

  33. Manufacturer Automation Technology Drivers • Different Sources of Information • Business Systems • Plant Floor Systems • Plug Information GAP between Business and Plant • Measure Financial Improvements

  34. OEM Business Drivers • Process Technology Leadership • Product Innovation • Product Reliability • Application Domain Knowledge • Supply world class solutions , globally • Resource Productivity • Technology Partners • Risk and Liability Management

  35. OEM Technology / Engineering / Manufacturing Drivers • Lowest Cost of Manufacturer • Engineering Productivity Tools • Repeatable Plant Designs • Delivering Production Efficiency • Delivering Product Traceability • Legislative Requirements e.g Supply Chain Traceability - US Bioterrorism Act/EC Regulation 178/2002

  36. Food & Beverage Industry Needs

  37. QUALITY (Operating Expense) KEY NEEDS • End Product quality consistent globally • Minimize out of spec product to avoid expensive rework • Optimize use of valuable raw materials • Reduce human intervention

  38. AVAILABILITY (OpEx) KEY NEEDS • Minimize restarts to save time & materials • Improve production scheduling and boost output to meet demand • Reduce unscheduled or unnecessary plant shutdowns

  39. THROUGHPUT (Op Ex) KEY NEEDS • Reduce downtime • Extend period between shutdowns

  40. OPERATIONS & MAINTENANCE (Op Ex) KEY NEEDS • Spend less to maintain or improve plant performance • Minimize unproductive routine maintenance • Pinpoint equipment problems to reduce overhead

  41. PRODUCT SAFETY (Op Ex) KEY NEEDS • Ensure conformance with latest legislation • Maintain brand integrity

  42. ENERGY, UTILITIES & ENVIRONMENT (Op Ex) KEY NEEDS • Programmes deliver quantifiable environmental improvements • Production Energy Costs; benchmark and reduce

  43. CRITICAL ISSUES FACING PRODUCTION • Costs • Increasing Utility Usage • Increasing Raw Materials Prices • Increasing Investment in Automation • Increasing Maintenance Costs • Labour Costs • Hygenic • Changing Standards • Increasing problems with cleaning • Plant Availability • Product Quality & Reliability • Increasing Complexity of Systems

  44. Summary How Automation can improve business competitiveness?

  45. Automation from Real Time Process to the Boardroom and from Supplier to Customer

  46. Where can Automation Help Reduce Cost of Ownership Unlock Value In People & Systems Build Knowledge Capital Optimise Asset Performance Improve ROI Improve Product Quality Increase Production STRATEGIC BUSINESS DRIVERS AUTOMATION STRATEGIES Transform Data in Knowledge and Business Intelligence Plant to Boardroom System Performance Improvement Integration of Legacy and New Generation Systems Unlocking knowledge in Legacy Systems Integration of New Applications Data to Desktop Process & Manufacturing Production Boardroom

  47. More than a technology proposition

  48. Communication People Company Culture Systems Processes Collaboration Automation is the CORE of the 360º VIEW to deliver the knowledge asset • What business are we in? • What’s our modus operandi? • What’s our current position? • What do we want to become? • What must we make happen? • What criteria should we use to measure performance? • What data do we need to keep on track? • Are our systems and processes aligned to our goals? …Panning for Gold … …Knowledge Capital will deliver competitive differentiation

  49. Emerson Exchange10th September 2007, Dallas, Texas ARE THERE ANY KEY AUTOMATION ‘BITS’ MISSING? QUESTIONS? COMMENTS

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