digital transformation in food and beverage, cpg improving ... · safety, quality and compliance...

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The Schneider Electric industrial software business and AVEVA have merged to trade as AVEVA Group plc, a UK listed company. The Schneider Electric and Life Is On trademarks are owned by Schneider Electric and are being licensed to AVEVA by Schneider Electric. Digital Transformation in Food and Beverage, CPG Improving Operational Performance Confidential Property of AVEVA Group plc. Presented by: Xavier Marfa, F&B Business Development Manager EURA

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Page 1: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

The Schneider Electric industrial software business and AVEVA have merged to trade as AVEVA Group plc, a UK listed company.

The Schneider Electric and Life Is On trademarks are owned by Schneider Electric and are being licensed to AVEVA by Schneider Electric.

Digital Transformation in Food and Beverage, CPG

Improving Operational Performance

Confidential Property of AVEVA Group plc.

Presented by: Xavier Marfa, F&B Business Development Manager EURA

Page 2: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

The Value Driver for Digital Transformation in F&B/CPGValue Propositions across the operational cycles; the production cycle, the assets cycle and the

product cycle

Energy Management & SustainabilityReduce carbon and water impacts, adopt sustainable practices

Improve Operational PerformanceImprove productivity and remove all the wastes from your processes

Improve Asset Utilization & ReliabilityReduce Capital and Operation Expenditure needs

Increase Recipe AgilityMeet demands with the right products at the right time

Safety, Quality and ComplianceProtect both consumers and shareholder value. Reduce risk and costs of

compliance and non compliance

• Asset (Visibility): Strategize/Design, Monitor, Analyze, Maintain• Production (Velocity): Prepare, Operate, Inform• Product (Variety)

Page 3: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Improving Operational Performance

• Reduces production order lead time, Supply Chain

Performance, TTM and adherence to plan (velocity)

• Lowers variance in production results

• Improves compliance and governance

• Improves manufacturing cost drivers:

• Productivity

• Inventory

• Waste

• Enable standardization of global best practices

• Business wide scorecards and KPI’s

Business Value:

Our model-driven software approach reduces

cost and complexity and enables deployment of

standards-based operations across multiple sites

Helps manufacturers manage, execute and

document production operations

• Model Driven MES/MOM

Page 4: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Physical Object Define in detail, various attributes of the object….

Operational Improvement: our approach

Alarms & Events

Logic/Scripting Graphics/Faceplates

Security Historical Data

Metrics/KPIs Operations

Inputs/Outputs Maintenance

Energy

Object

Derive new (multi-level) instances…Object

Library

Equipment

Type A

Equipment

Type B

Equipment

Type A1

Equipment

Type B1

Equipment

Type A2

Equipment

Type B2

Build more complex definitions…

Equipment

Line

Area

Site

Simple

Process

Complex

Process

Page 5: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

What kind of a “driver” do I need on the frontlines of execution?

Automation-centric view:

Minimize / eliminate

the human role?

Human-centric view:

Invest / augment

the human role?

Page 6: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Process & People: A culture of empowermentEfficiency & Agility: problem-solving “at-the-source”

Systemic

Problem-Solving

Situational

Problem-Solving

Plan Do Check Act

Detect Understand Decide Act

1

Strategic

Problem-Solving

Now Seconds Minutes Hours Days

Page 7: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Process & People: Operational Excellence Culture of empowerment aligned with company strategy

Page 8: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Filling The Gap Between Plant Systems

Decision to

HOLD

production

Records Downtime

N

Y

MES Maintenance Tech

Notified via SMS

Performs Inspection

and submits report

Supervisor

Notified via SMS

MES

Production Continues

EAM

Maintenance Order

created

PLAN

Planner notified

to update plan

Maintenance Order

sent to tablet

Maintenance Order

completed

Maintenance Order

closed

MES

Operator notified to

restart production

Machine

breakdown

As a business adopts a

more demand driven

approach to production,

and starts to use OTIF

and OEE as measures of

performance, the

synchronization of

maintenance, planning

and operational activities

becomes a driver of

success

Page 9: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

The Model Driven Framework: what is different?

Page 9Confidential Property of Schneider Electric |

1. Before the advent of object-oriented design (in the 90s),

software development was time-consuming and its

modeling power was limited.

2. This area represents how Corporate IT systems are

typically bought: a preference for “out-of-the-box” business process

functionality. Flexibility isn’t a priority since standardization meant all

users interacted with the system the same way, with minor variations

addressed via configuration.

3. In contrast, flexibility is paramount on the shop floor since

uniqueness is potentially everywhere: Consider the

combinations of (equipment versions + process recipes + raw material

variations) that they must deal with. Most MES offerings represent a

compromise between the two ends of the spectrum – part packaged

apps, part toolkit (but not fully both.)

4. Model-Driven MES/MOM represents a breakthrough is

because it offers the best of both worlds: The ability to reduce

deployment time by “packaging” client-specific process knowledge and

innovation into reusable templates that can be quickly deployed - and

the flexibility to adapt those templates to accommodate site-specific

needs.Time to Deploy

Development

Environment/Toolkit

Slow Fast

Low

High

Flexibility

Packaged Apps

“Out-of-the-Box”

Pre-

Object-Oriented

Software

Model-Driven

MES/MOM

MES

HMI/ SCADA

ERPCloud-based

ERP12

43

Page 10: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

A Model Driven Approach MES

• Cheklist before starting

a WO

• Quality checks

• TPM tasks

Model-Driven Concept supports

• Standardization - provide a single, comprehensive framework for modeling and sustaining operational work processes

• Change Management – facilitate and guide the change management process in a consistent and governed manner

• Innovation – promote operational innovation through continued evolution of work processes

• Total Cost of Ownership (TCO) - reduce the cost and effort to capture and evolve operational work processes

Page 11: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Comprehensive

framework for

modeling &

executing

operational

activities

Operational Activities Framework:

Legacy or 3rd Party

Applications

Events, Data &

Parameters

Plant Model with

superior data

collection &

automation device

integration

Highly accessible

from multiple

computing platforms

iPad Surface iPhoneDesktop

Computing

Devices

Business RulesUser Interfaces

Pro

ce

ss

Mo

de

lP

hys

ica

l M

od

el

Physical ModelUser Interfaces

The Model Driven FrameworkAn approach, not a technology

Page 12: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

The Model Driven Approach

1. Digitize

• Assess and document current processes in place along

with touch points to other systems (automation, lab etc.)

• Created needed workflows and user interfaces. Integrate

with MES, System Platform and other systems Digitize

1 2 3Digitize Standardize Improve

Operational processes and

information to enable

efficiency and transparency

Global best practices for a

consistent approach to

compliance and operations

Continuously improve

operational processes and

adapt to changing

requirments

Page 13: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

2. Standardize

• Account for needed variations between sites

• Create library of practices that are centrally governed

• Define Performance metrics to be measured

• Build deployable packages and push to the sites

Package of

processes & UIs

V5.1 V2.3

V7.2 Current

Site

Repository

The Model Driven Approach

1 2 3Digitize Standardize Improve

Operational processes and

information to enable

efficiency and transparency

Global best practices for a

consistent approach to

compliance and operations

Continuously improve

operational processes and

adapt to changing

requirments

Page 14: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

The Model Driven Approach

3. Improve

• Manage governance of the solution centrally with

remote deployment and support of packages of

process and Uis

• Continuous improvement of processes based on

rich data collection

Change Control

Board

3 Central Baselines

Process & UIs

MES & Master Data

ArchestrA Templates

& Objects

Center of Excellence

Application &

Technical Support

1 2 3Digitize Standardize Improve

Operational processes and

information to enable

efficiency and transparency

Global best practices for a

consistent approach to

compliance and operations

Continuously improve

operational processes and

adapt to changing

requirments

Page 15: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Why Model Driven MES

Model-Driven MES approach mission

1. To extend standard MES operational practices to coordinate people and/or other

applications to deliver broader, more comprehensive manufacturing work process

management.

2. To deliver adaptable commercial MES application models that provide more flexibility in

aligning with customer business practices.

3. To enable corporate entities to digitize plant operational business practices with greater

efficiency, speed and ease.

Page 16: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Almarai Enables Smart

Manufacturing with

Schneider Electric

Page 16Confidential Property of Schneider Electric |

Client:Almarai

Location:Saudi Arabia

Closing the Loop:Schneider Electric supports the world’s

largest vertically integrated dairy

company by adding real-time

intelligence to over 100 packaging lines

to increase performance, efficiency and

agility.

The Manufacturing Execution System

(MES) delivers end-to-end workflow

management to improve operational

excellence as part of a Smart

Manufacturing initiative.

Expected benefits:

• Improved asset utilization and

operational performance

• Enhanced process and product

quality

• Improved productivity and

process efficiency with

increased flexibility

• Standardized best practices

across over 100 production lines

• Platform for data driven

continuous improvement

World’s LargestVertically Integrated Dairy

Company

Increased

Visibility Into operational processes

…model-driven approach helps

accelerate deployment by

standardizing processes with

reusable templates and

integrated workflow”“

Page 17: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Traditional OEE Solution Line Performance

Solution

Definition

Installation & Commissioning

Report Building

Application Engineering of

MES and App Model

MES - Performance

System Platform

InT

ouch

UI

Develo

pm

ent

Definition

Commissioning

Application Engineering of

MES and App Model

MES - Performance

System Platform

Skelta

Model D

riven

Pre

-defin

ed

Config

ura

tion,

Dashboard

s &

UI

Intelligence Server

Pre-defined Reports

Maste

r In

sta

llation

WW Products Customized items Pre-defined/standardized items

• Offering Industrial Solution (Bundle)

• Model-Driven MES solution templates

• User Interface & Business Logic – Workflow

• Web-based application

Page 18: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Why did Almarai Select Line Performance

• Manages and executes production

work orders

• Real-time production & utilization

data collection – manual & automatic

• Provides standard reporting &

analysis capabilities for equipment

performance evaluation

• Integrates & interfaces with other 3rd

party offerings (PLCs, ERP, etc.)

• Rich root cause analysis capabilities

(e.g. data drill-down)

• Handles large volumes of data for

reporting/analysis

• Standard solution package with pre-

defined application content – reduced

engineering

• Extensible application content – can

tailor UI & business rules to meet their

project needs

• Extensible with other Schneider

products

• Easy to install, configure & maintain

• Multi-plant standardization

Page 19: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Page 19Confidential Property of Schneider Electric |

Almarai Project Achievements

Project Rationale:

Improving Overall Equipment

Efficiency (OEE) and Monitoring

of Downtimes

Achievements:

• Online and hourly OEE monitoring helped

improve focus and performance

• Downtime analysis and visibility helped

accelerate root cause identification, corrective

actions and scheduling of maintenance activities

• Provided data and analysis for micro stops

Page 20: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Page 20Confidential Property of Schneider Electric |

Almarai Project Achievements

Project Rationale:

Simplifying Plant Analytics,

KPIs & Reducing Time/Effort to

Access Information

Achievements:

• Key information is readily available to all users

for detailed analysis

• All reports are produced and circulated

automatically - based on lean concepts and

approaches

• Manual data collection has been eliminated –

achieved goal of paperless plant floor

Page 21: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Page 21Confidential Property of Schneider Electric |

Almarai Project Achievements

Project Rationale:

Empowering the Supply Chain

by Integrating with SAP

Achievements:

• Plan Attainment report provides clear visibility of

the hourly run rate against required rate for each

area

• PO production, consumption, waste and sample

quantity count information posted directly into

SAP

Page 22: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Page 22Confidential Property of Schneider Electric |

Downtime Reports

Page 23: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Page 23Confidential Property of Schneider Electric |

MES Reports

Page 24: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part

Questions?

Page 24Confidential Property of Schneider Electric |

Page 25: Digital Transformation in Food and Beverage, CPG Improving ... · Safety, Quality and Compliance ... delivers end-to-end workflow management to improve operational excellence as part