The IT highway

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Magazine Article, Source : The Manufacturer
Zone : IT in manufacturing
Published : November 2005

Brian Davis finds that companies are striving for an IT infrastructure that ties together disparate silos of activity, internally, nationally and internationally

System integration is often a head scratcher, though IT vendors claim their solutions have never been more open and user-friendly. There are clear signs that web-enabled IT systems are improving business efficiency, reducing time for management intervention, and giving access on the shopfloor to more effective production information for continuous improvement and lean initiatives.

Take kaizen culture, where the Novelis (formerly Alcan) aluminium packaging plant at Bridgnorth has taken up lean practices in the wake of Toyota, Ford and BMW in the automotive industry. Static shopfloor performance charts are to be replaced by a virtual version called Firstline, on the company’s intranet.

The system was created by continuous improvement experts Greg Simpson and Glen Walmsley, using experience of lean projects at BMW’s Oxford plant and other installations. Together they developed a system for showing shopfloor performance featuring KPIs, 5S workplace organisation and a skills matrix, which was typically displayed on notice boards in kaizen centres. Recently they developed an online version called Firstline, marketed by Bubblequest.

The performance management software is being beta-tested at the Bridgnorth plant. KPI charts are equipped with a traffic light system for giving a quick indication of performance which can be cascaded through the factory’s intranet. Red means ‘cause for concern’, amber means ‘steady state but could do better’, and green means ‘on target’ or outstanding.

Ray Macera, operations manager at Novelis, reckons the beauty of this system is its simplicity. “Here’s a system which looks onscreen just like the shopfloor noticeboards for performance improvement, with simplicity and relevance to what people do in their jobs every day.” The visual management system also provides user guides, value stream mapping exercises, root cause analysis, and SMED exercises as part of improvement plan functions.

Getting the message across at all levels is a key concern for manufacturers. It’s not just a matter of selecting the right ERP system, but ensuring it has the flexibility to change with rapidly evolving demands.

“Web services rock!” says Simon Boyes, business systems manager at toilet cistern manufacturer Thomas Dudley. The company replaced ageing Unix Tetra software with Epicor Vantage 8.0 as an enterprise resource planning system, after a three-month selection process following guidelines from the Business Application Software Developers Association (BASDA), and invested £200,000 in software and installation.

Key objectives were the need to streamline the business with a more powerful yet flexible ERP solution. Vantage is built with Microsoft .NET and web services technology, which address end-to-end manufacturing needs for make-to-order and mixed mode manufacture.

Boyes says he was impressed by a modular suite with built-in workflows which can manage the entire order cycle. “Many of our competitors are still relying on systems which are connected by creaky EDI, fax or email. We reckon web-service connectivity is fundamental to our business, using the right partnering software to drive business processes.”

System visibility has also improved. Whereas, the original ERP system focused on financial systems, Vantage is being rolled out in a phased implementation to accounting, sales and order purchasing, followed by manufacturing, CRM and supplier relationship management by the end of the year. “The system will help us tame project management and contract the product lifecycle from a few years down to a matter of months for new product introduction,” says Boyes. The next goal is product lifecycle management (PLM) by integrating Vantage with their Solidworks CAD system.

PLM software has mainly been targeted at large enterprises in automotive, aerospace, hi-tech and heavy engineering firms, who recognise the benefits of integrating data management of CAD with manufacture, test, analysis and sharing of best practice.

Now UGS has introduced a mid-market PLM package called the Velocity Series, which features a stream-lined version of Teamcenter, bundled with Solid-Edge for 3D modelling and Femap CAE analysis package. Pre-configured Velocity Series PLM packages will cost around $50,000 for five seats, well within range of mid-market companies employing five to 50 engineers.

Swiss automation maker Paro, which supplies UK manufacturers assembling automotive components, drinks and electronic systems, plans to deploy Teamcenter Express as part of its PLM evolution process. “Most automated lines are custom designed,” explains engineering manager Martin Frauanfelder.

Project lead time is six to 12 months, and there is ever increasing demand for faster time to market, which requires concurrent engineering and complex data exchange. The company plans to move from using a combination of SolidEdge for 3D CAD modelling with Profile PDM for document management, to Teamcenter Express which promises better workflow management, fewer interfaces, improved office integration and more integrated workflow.

These are key themes for most manufacturers, faced with increasing global outsourcing, greater product complexity, frequent model changes, and the need to update related documents and specs throughout product lifecycles, with an increasing burden of regulatory compliance.

Even majors like Fujitsu Telecommunications Europe, with HQ in Birmingham, face a challenge tying it all together. “We’re also in the business of designing and developing products, manufacture, installation, support and services for an extended lifecycle,” says Mark Fountain, director of business quality and efficiency.

Consequently, Fujitsu has employed an integrated process management system (PMS) approach which improved cost efficiencies, reduced audit days 60 per cent, as well as limiting procedures and separate processes. “The key to success for PMS and full integration of ERP, MRP and other IT systems, lay in gaining simplicity for employees so they can focus on what they do best,” says Fountain.

The PMS system gives Fujitsu flexibility and fast response to changing telecommunication standards, with real-time metrics, automated reporting and tracking, including wireless shopfloor data collection for real-time booking and analysis of labour and materials. “Spreadsheets and ad hoc analysis have been removed in favour of an ‘everything off the system’ approach. Use of wireless technology enables the ability to work anywhere, anytime,” says Fountain.

Backbone of the PMS system is Fujitsu’s Glovia ERP system. “Data from the system can easily be sliced and diced,” says Fountain. “We no longer produce dedicated reports but select data as and when needed, with continuous measurements from across the group. If there’s an alert we can react immediately, and also move targets with ease.”

Fujitsu also employs Oracle Manufacturing for core IT applications including web reports, online analysis and performance metrics. “Process and system sit hand in hand,” says Fountain. “You need the ability to react at the speed of light with robust processes and systems, and must keep it simple.”

Integration, simplicity and convergence are key themes for Anne Power, business process architect at Thales Services, global supplier of aerospace, naval and land systems. The group deployed Oracle Applications across multiple sites and geographies. “But like many large-scale organisations, the system was fragmented, many tools and process lacked standardisation, and there was poor information management,” explains Power.

The master plan is to converge on one or two vendors over a three year time-span around common processes. “Harmonised business process will increase the potential for centralisation of business functions into shared service centres. The group has gained more accurate cash forecasting capabilities, and uniform systems increase staff mobility,” says Powers.

Consolidation is being carried out country by country. The group now has a single Oracle database, used in concert with Primavera for project management and UGS Teamcenter and PTC Windchill for product data management. The big vision is a single, global database where all business units will be able to share resources and a common implementation approach, as well as sharing best practice. Ultimately bottom line profits will improve, with rapid reaction to opportunities, reduced inventory holding, shared resources and reduced overheads.

Napp Pharmaceutical also stresses the importance of having a unified database to support regulatory compliance, as well as best practice and continuous improvement. “We have a lot of controlled drugs on site and use the Oracle database to report in great detail to Customs and Excise,” says Chris Jones, head of business projects. Following significant upgrades to the Oracle system in 2001 and 2005, Napp can now report in minutes where previously it took months to collect data held in manual records.

Jones claims, “I’m not too hung up on lean!” His priority is best practice and continuous improvement for a close knit team which involves people from manufacturing, IT, quality and procurement, to legal departments. “IT helps drive the business but people are the key force.”

Napp uses Oracle 11.5.10 to run business queries against the transactional system using the Business Objects reporting tool to generate KPIs directly from the database. “We see IT as a key part of the process of improvement of procurement, quality and production.” Looking to the future, Napp aims to use Oracle’s self-service application to bring business associates in Europe and the UK plant closer together.

Undoubtedly, IT is seen as an enabler for lean and continuous improvement. But the keys to success lie in clear direction from the top and the right skills matrix to foster ambitious culture change as new IT systems and processes are adopted.

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