McIntosh & Cubine

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• to keep up!

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ERP, MES, APS, Quality Management How do these
Pieces EFFECTIVELY fit Together?
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What are the pieces?
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Credit AMR Research, Modified with Permission
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What is ERP?
ERP System
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ERP What is it Really?
A Commercial Off The Shelf (COTS) application
software product that provides a set of tightly
integrated functions necessary to manage a modern
manufacturing enterprise.
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ERP Whats wrong in Pulp Paper?
Some of the functions provided by the major ERP
products are a poor fit for the Pulp Paper
industry in their off-the-shelf form.
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ERP Order Services Planning for Pulp
Paper.not always a good fit...
Roll Dimensions Vs. SKUs
Make to order, not stock
Order and/or Shipping Tolerances
Calculate Converting Roll Stock Orders
Trim Vs. finite scheduling
Unique PP material flows Trees Recycle? Fiber
Lines ? Reels ? Rolls ? Converted Products
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ERP to the PP Manufacturing Floor?
Without an MES system, its insanity!
Every roll has to be a unique lot to track
Quality data?
I gotta key in 12 fields in 3 different windows
before you can turn up that set?
. this system cant talk to our automated wrap
line?
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There are real ERP benefits for PP companies
however...

• Integrated financial systems
• Integrated cost systems
• Integration of purchasing, maintenance stores,
  human resources, payroll, etc.
• Growing functionality in some ERP II areas,
  e.g. Web commerce, customer asset management,
  etc.
• Some PP vertical market momentum but .

Some of the major ERP vendors will overcome
critical functional deficits for the PP market,
especially customer order management issues,
maybe planning/scheduling/ATP, and in some cases
even integration with the shop floor.
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What is MES?
Manufacturing Execution Systems manage the Make
part of your Supply Chain
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Manufacturing Execution Systems
Pulp Paper Industry MES Suppliers

• Honeywell HiSpec OptiVISION
• MAJIQ Systems - ELIXIR
• ABB ABB
• Segment products from smaller companies coming to
  market
• Home Grown Legacy-R-Us

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The Unique MES Product Evolutionin Pulp Paper

• Customer Service
• Converting
• Warehouse Management
• Invoicing
• Raw Material Planning
• Load Planning
• Traffic Management
• ERP Integration

Quality
Order Entry Shipping
Product Tracking
Trim
1975 1980 1985 1990 1995
Now
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The MES evolution has yielded real benefits for
Paper Companies

• Better productivity yield improvement
• Better capacity management
• Lowered waste
• Better quality control
• More efficient logistics, fewer errors
• Ability to manage customer expectations
• Complete functional order to delivery systems

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But the ERP MES products have major overlaps in
Pulp Paper!
MES
ERP
Which vendor(s) should provide these overlapping
functions and why?
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Production Planning Scheduling
Functionality that cuts across existing classes
of Packaged products.. MES ERP, Pure APS
products
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Scheduling Resides, Where, Exactly???
PP Specific Scheduling Trim Bolt-on Products
Most MES vendors offer block scheduling trim
Other manufacturing scheduling systems not
specific to PP
Every ERP System offers some type of scheduling
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For Pulp Paper, not just anywhere!!!
PP Specific Scheduling Trim Bolt-on Products

• Cant correctly model dimensional relationships?

• Dont effectively model the many to one to many
  relationships?

Most MES vendors offer block scheduling trim

• Dont manage the key trim issue as an integrated
  part of the planning process?

Other manufacturing scheduling systems not
specific to PP
???

• Dont rely on real time production feedback to
  dynamically adjust the plan?

Every ERP System offers some type of scheduling
???

• Their product development teams dont understand
  Pulp Paper!

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APS benefits are usually a matter of complexity
and size
Greatest Benefit from APS
Single Mill
Multi-Mill
Multi-Machine
Multi-Machine
Multi-Product
Multi-Product
Rolls Converting
Single Mill
Increasing Complexity
Multi-Mill
Single Machine
Single Product
Single Product
Roll Based
Roll Based
Least Benefit from APS
Increasing Size
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Quality Management functions probably have the
least clear cut definition in terms of Package
products.
ERP
MES
LIMS
Process Information Systems
Hybrids, e.g. Mountain Systems
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Quality Management Information has multiple
sources and multiple consumers...
ERP for Customers The things you communicate to
them about your product when it ships
Gauging Data
Lab Data
Mill Customer Specs
MES for Production Operations The things that
help production decide when product meets specs
or needs to be scrapped
Process Historian
QM or PIMS for Process Engineering Groups The
things that enable them to troubleshoot problems
and tackle optimization opportunities
Grade History
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The concept of quality management systems is
still evolving in pulp paper

• The Hybrid Systems vendors have an opportunity
  to continue to grow their role and the
  functionality they own

• The ERP MES vendors will have to improve the
  depth and scope of their offerings or risk
  loosing these functions completely in the paper
  industry

• Being able to address the needs of the quality
  information consumers in the enterprise is the key

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What about Best of Breed?
How do we select the right Package products?
How do we put it all together?
What functionality do we really need?
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You should identify your opportunities for
improvement first..a vision for where you want
to be

• Understand and document your current state in
  terms of business manufacturing objectives,
  business processes, manufacturing processes, and
  systems

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Understand the requirements for achieving your
future state

• What functionality is required?

• Which vendors can meet the real requirements?

• What are the integration requirements?

• How will you sustain, grow, and adapt?

• What realistic paybacks and benefits can the
  enterprise or mill expect?

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Develop a REALISTIC Plan for Implementation.
neither Santa Claus, the Tooth-Fairy, or the
Stork will deliver a successful COTS systems
integration or implementation projectyou have to
plan them in detail and then have the right
resources to execute the plan plus accountability
for the integration
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Implementation Planning is not enough. A
complete lifecycle plan is required for best of
breed solutions.
Support Training
New Requirements
System Lifecycle
Upgrades
Enhancements
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Best of Breed Package solutions are achievable
and today that is the only way pulp paper
companies can provide robust functionality across
the entire make part of your supply chain..
...and achieve emanufacturing!
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Questions, comments, electronic copies, etc.
Mike McIntosh Mark Cubine mark_cubine_at_guidementor
.com