extracting greater value from paperless manufacturing · extracting greater value from paperless...
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2 Extracting Greater Value from Paperless Manufacturing
Table of Contents
Executive Summary ....................................................................................... 3 What is Paperless Manufacturing?................................................................. 4
Lowering Cost of Quality ........................................................................................... 4 Accelerating New Product Introduction ..................................................................... 5 Removing Barriers to Innovation ............................................................................... 6 Expanding Continuous Process Improvement .......................................................... 7 It's All About Time and Precision............................................................................... 7
Bring it All Together on a Global Scale .......................................................... 8 The Global Paperless Environment................................................................ 9 The Plan ...................................................................................................... 10 Follow by Example ....................................................................................... 10 Conclusion ................................................................................................... 11 About Apriso Solutions ................................................................................. 12 About Dassault Systèmes & DELMIA .......................................................... 12
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3 Extracting Greater Value from Paperless Manufacturing
Executive Summary It is no secret that the role of paper is rapidly diminishing in our lives. The book, newspaper
and magazine industries are obvious examples, now being replaced by the tablet and e-book
industries. More accurately, the cost of working in a paper-based environment
is likely driving more of the change, quickly making paper obsolete. See Call
Out Box 1 for examples of how expensive working with paper can really be. 1
These cost pressures also impact manufacturing operations. Information-
driven, digital ecosystems now drive modern manufacturers. The reason is
simply that information can be more readily, accurately and effectively
aggregated, cleansed, distributed and used across the global enterprise when
it is digital or electronic, leading to improved decision support, customer
satisfaction and operational performance.
Paper is not the problem. Instead, it is the embodiment of ineffective
knowledge management and disbursement. Today’s global economy moves at
light speed – or at least at the speed of email, Twitter or Instagram. Those
organizations that can’t adapt quickly are prevented from participating in
today’s fast-moving and interconnected digital economy. What results is a loss
of industry leadership, market share and profitability.
Today, most companies are aware of the broader paperless evolution – the
challenge is how to effectively participate in this change without breaking the
bank. And, in identifying the best approach, solutions and strategy to effectively
balance today’s needs with tomorrow’s evolved performance requirements,
and to do so on a global scale.
This white paper addresses these concerns by reviewing five important factors
that offer the greatest benefit of going “paperless.” Discussion will explore how
to maximize these benefits on a global scale while minimizing the disruption to
current operations – offering a potential road map to justify enterprise-wide
deployment. Paperless manufacturing is now a requirement to operate on a global scale. This
white paper presents a case for why the time is now, accompanied with the selection criterion
that should be evaluated as part of this important decision process.
1 “Shocking Paper Statistics You Probably Did Not Know About and Why it’s Costing you Money” by
Jonathan Govette at ReferralMD; https://getreferralmd.com/2011/09/referral-management-tracking-software/
Working with Paper is Expensive!
• The average document is copied 9 to 11 times • The average time to retrieve and re-file a paper
document is 10 minutes • 50% of all projects are behind schedule • 60% of employee time is spent working with
documents • Each four-drawer file cabinet holds about 10,000
to 12,000 documents and takes up to 9 square feet of floor space, costing about $1,500 per year
• Every twelve filing cabinets requires an additional employee to maintain
• Each misfiled document costs $125 • Large organizations lose a document every twelve
seconds • More than 70% of today's businesses would fail
within three weeks if they suffered a catastrophic loss of paper-based records due to fire or flood
• Managers spend an average of 4 weeks a year searching for or waiting on misfiled, mislabeled, untracked or lost documents
• 15% of an organizations' revenue is spent creating, managing and distributing documents
• Filing costs average about $20.00 per document • Paper in the average business grows 22% per
year, meaning your paper usage will double in 3.3 years
• A typical employee spends 30% to 40% of their time looking for information locked in emails, documents, shared hard disks and filing cabinets
• At $30 per hour, knowledge workers waste $4,500 per year working with paper
• The average office worker makes 61 trips per week to the fax machine, copier and printer
• It costs about $25,000 to fill a four-drawer filing cabinet and over $2,100 per year to maintain it
Call Out Box 1: The high cost of paper.
4 Extracting Greater Value from Paperless Manufacturing
What is Paperless Manufacturing? True paperless operations solely rely on automated data capture, such as from scanners or
touch screens. Information is then displayed on traditional desktop display units, industrial-
hardened screens in the plant, large wall-mounted displays or mobile devices (smart phones,
tablets, etc.). But it also entails direct connections between systems to avoid additional
handling and re-entry of data, which provides seamless continuation of the paperless
environment across corporate functions, departments and locations – and out across the
supply chain. A paperless strategy cannot be effectively implemented as an “add-on” to
existing applications or systems that were originally designed for a paper-supported
environment. You need a native-paperless infrastructure and platform.
Any move toward paperless digital operation offers a potential benefit, but the effect is severely
limited when the paperless operation is locally optimized – islands of efficiency is the best
outcome. Scanning production data into the system saves time and reduces errors (“paper on
glass”), but the benefits are limited if the worker is scanning from paper shop packets that have
to be printed, distributed and controlled. How much good is there if the scanned data is printed
out in the accounting department for edit and verification?
A paperless initiative, in order to be truly effective and beneficial, should be systematic and
comprehensive, based on a platform and infrastructure that natively support the devices and
connections needed for success. The reason why architecture is so important is based on the
need for clean, accurate data. As the expression GIGO (Garbage In, Garbage Out) goes, your
intelligence will only be as good as the data input. Platform-based paperless solutions offer
faster response times by the simple fact that data has already been normalized and unified,
creating a common infrastructure for consistent decision support and optimized paperless
performance.
Now let’s take a look at some of the potential benefits of expanding your paperless initiatives,
which will then offer insights as to how to best justify the investment of time, effort and
resources to proceed forward with your paperless transformation.
Lowering Cost of Quality Everyone wants higher quality. The challenge is delivering quality cost effectively. The market
ultimately dictates what an acceptable level of quality is, and what isn’t. In a competitive
industry, the “minimum” level will steadily increase, so unless your quality is progressively
improving, you are actually falling behind!
Interestingly, quality is highly dependent upon accurate and timely information. Not only is pure
data important, the timely access to that data is equally critical. If a manufacturer can quickly
identify an “out-of-spec” event or shipment, considerable cost savings can be captured by
quarantining the materials for further review, discard or return to suppliers. Here is where
5 Extracting Greater Value from Paperless Manufacturing
paperless operations can have a profound impact on the cost of quality. Automated responses,
triggered from statistically valid testing can be done without human involvement, offering a
highly effective process for quality management and execution.
A well-designed paperless system will provide the structure to meet this need. Direct
connection to plant-floor intelligent devices (SCADA and smart measurement systems)
supports the archiving, analysis and distribution of production data, parametric measurements
and other quality information for process control, process improvement studies, and for
permanent documentation in support of effective customer interactions and (hopefully)
improved future customer satisfaction.
Accelerating New Product Introduction Paperless is not just about data collection and handling. It’s also about the distribution of
information and instructions from product design or engineering to the plant floor, suppliers,
partners and others. As new product launches are planned, design, labeling, packaging and
other changes are inevitable. Those manufacturers operating on a global scale face even
greater rigor when country variants, tastes or regulations must also be taken into account.
Production schedules and priorities (work lists), work
instructions, specs, drawings, videos, and photos are best
distributed electronically, directly to the workstations where
they are needed, if this information either frequently changes,
or if version control is critical. Paper documents can get lost
and damaged. They are not as easily shared without making
additional copies (that can add to confusion) and are difficult to
synchronize with ongoing design or engineering change
activity.
Version control is one of the biggest advantages of electronic document control and
distribution. When a plant floor worker (or anyone else, for that matter) accesses a
specification, drawing or other documentation, if the delivery system is digital or paperless,
then it will be the current revision, unless there is a reason for using an older version. If the
document is printed on paper, older versions are likely to be in existence and could be
accessed inadvertently. New versions and revisions can be communicated immediately in the
electronic form, without the delays inherent in duplication and distribution of paper documents
along with the collection and disposal of obsolete versions.
In order to be completely paperless, engineering and design documents should be created and
managed electronically, and coordinated with production and scheduling without passing
through a paper stage in between. In other words, a company’s paperless infrastructure must
span the enterprise and support the entire document life cycle across all functional areas of the
company.
6 Extracting Greater Value from Paperless Manufacturing
A manufacturer that has achieved true paperless integration between engineering design and
manufacturing execution is well positioned to handle frequent design, engineering or
operational changes that are typically part of new product introductions. In the end, this
paperless connection can help to achieve a smoother launch, as evidenced by greater
customer satisfaction, higher sales and less likely of a chance to suffer any brand “damage” or
quality issues during the launch.
Removing Barriers to Innovation Improving operational productivity has been a hallmark of nearly every manufacturer’s
operations strategy for the past century. “Make more, with less” are words that have been
embraced with vigor and attention. Embracing and nurturing the innovation process leading up
to new product introduction is as important as the goals of new product introductions such as
keeping the company’s products viable, increasing profits and ensuring market leadership.
Obviously, there are many factors that contribute to innovation, ultimately deciding which new
products will achieve greater market success. The cost of blocked innovation, however, is a
more difficult metric to understand. Here the focus is more on how to simplify the “ideation”
process that drives innovation. How easily can an idea for a new product be shared and
collaboration achieved? What systems and processes are available to help further encourage
this type of activity?
Paperless systems offer far greater ease of sharing or collaboration, which is a critical part of
most modern supply chains and manufacturing enterprise operations. Collaboration is built on
shared information and processes that support multiple user interaction. Your paperless
environment provides the data platform and access control while enabling participants to work
with the data, coordinate inputs and revisions, share marked-up documents, and maintain a
history of activities. This concept applies to collaboration between departments and functions
within the organization as well as with partners outside the company and around the world – all
potential sources for future innovation.
Some might argue that this is a “soft” benefit of embracing a truly global enterprise paperless
strategy, but it shouldn’t be simply overlooked. Nurturing an environment whereby ideas can
be easily shared, data can be easily accessed and conclusions can be easily obtained can
create a powerful culture, one that breeds creativity and quick responses to new market
opportunities and innovative new product launches. And, once again, the importance of a
platform-based approach to paperless manufacturing – including one that can support shared
collaboration across multiple functions, sites and operations – will deliver more value overtime
when compared to attempting to “piece-meal” together a collection of applications that don’t
seamlessly work together as an aggregate solution.
7 Extracting Greater Value from Paperless Manufacturing
Expanding Continuous Process Improvement Virtually all modern manufacturing methods and continuous improvement initiatives include a
high reliance on data, while at the same time emphasizing a reduction in non-value added
activities like measuring, reporting and handling paper. This dilemma can be solved by
automated data collection and integrated systems that collect, distribute, manage and analyze
the data with as little human intervention (and paper) as possible.
Take Lean manufacturing or Just-in-Time / Just-in-Sequence programs. These approaches are
built around the elimination of non-value activities – which they define as waste. Companies
set up lines and cells for continuous production and one piece flow, reducing Work in Process
(WIP) inventory to speed up work flow. Anything that might inhibit the efficiency of processes
or that take operators’ time and attention away from the task at hand are to be avoided.
The challenge is that change is disruptive, creating a paradox. The only way continuous
process improvement yields results is with change, but any change has the potential to hurt
productivity. This challenge can create situations where process improvements fail a month
after Lean specialists or Six Sigma black belts leave, as operators fall back to their “old”
routines.
A paperless solution that is broad in scope can address this challenge through “directed”
manufacturing. If manufacturing processes are managed through a central architecture, then a
process improvement can simply be executed “behind the scenes,” with operators unaware of
the change. This approach removes an important psychological barrier to change. At the same
time, this strategy ensures continued enforcement of process improvements while expanding
the scope of what future enhancements could even be considered.
It's All About Time and Precision In some industries, electronic records are required by government regulation, corporate
policies or contractual agreements with customers, such as the Department of Defense (DoD).
In these cases, there must be clear, auditable traceability and control of those records as well
as the products being made and moved. Beyond the electronic capture of this information, its
continued handling, exchange, updating, storage, and access must be systemic, controlled
and auditable. Integrated paperless systems built on a suitable platform-based architecture will
perform best and offer a far wider scope of compliance adherence.
Traceability and provenance are a natural outgrowth of enhanced data collection and
management. And because the purpose-built paperless system is designed to include supply
chain partners, traceability can extend from farm-to-table or from the mine to the landfill – for
the full history of the product and its components and materials. Quality measurements and
production data, tied to batch / lot / serial numbers and date / time / location of production
provide a vital link in the chain of traceability. This data is critical in today’s world for food and
drugs, of course, but also in many other industries for warranty tracking, supplier and material
8 Extracting Greater Value from Paperless Manufacturing
content documentation, quality improvement work, and product reliability and maintainability
improvement. And certainly, in support of product recalls, to ensure just the impacted products
are actually recalled – and no others, reducing the cost of compliance and quality.
In the unfortunate event of a product recall, a broad, paperless traceability solution can save
millions of dollars, if the scope of the recall can be more narrowly defined to therefore impact
fewer finished goods. One Apriso customer that is an automotive supplier had such an event,
which occurred about three months after their solution went live. The cost savings from this
single recall event paid for the entire implementation, resulting in a Return on Investment that
was achieved in just three months!
Information is truly the source of power in a recall situation, critical to limiting the extent of the
recall to only those products directly affected by the contamination, flaw of failure. And knowing
exactly where every quantity of every batch is located at any given time is the ultimate lever for
limiting impact and ensuring fast, total control of the situation. In the absence of detailed
records, additional quantities of the product must be recalled to ensure that all potentially
affected batches are included. Online integrated records tying each product to plant / date and
time of manufacture / equipment and operator, to specifications and measurements of parts
and materials (by batch / purchase order / supplier (the finer the granularity the better) and
back are the key to quick response and the best possible outcome.
Bring it All Together on a Global Scale There are many obvious benefits to embracing a paperless strategy, which have been touched
upon already in this paper. The cost savings and performance improvement from any one of
the operational benefits could justify an investment in a paperless strategy, implemented on a
plant-by-plant basis. But, that approach would be short sighted, leaving significant potential
benefits on the table, which could be captured for nominal incremental cost. See Chart 1.
Some of the ways a global strategy differs from a plant-by-plant approach includes:
Collaboration – the easier it is for workers to share ideas, alert for potential
disruptions or simply comment on best practices, the greater potential that these
actions will be embraced by more sites. The end result will be directly correlated to
how well communications occur across your entire enterprise, offering the potential to
greatly improve productivity at not only a single site or shop floor, but across every
site across the global enterprise.
Continuous Improvement – if a process improvement yields a 5% higher output rate
with fixed capital expenditures at a single site, then the potential to improve output by
5% across all operations clearly provides a strong rationale to expand that process
improvement; a global, platform-based paperless implementation capable of sharing
best practices and readily implementing process improvement across sites has the
9 Extracting Greater Value from Paperless Manufacturing
potential to truly improve operational performance, and even the competitive
hierarchy of the market where you operate.
Traceability – is only as strong as its weakest link. If a product recall must be
implemented, Work in Process between sites may be missed with plant-based
solutions; updates may also be delayed when trying to manage paperless operations
on a site-by-site basis. Centrally managed, global solutions can implement
quarantines instantly, across all sites and operations, for significantly improved
operational excellence.
The Global Paperless Environment It should be clear by now that a truly complete and effective digital / paperless initiative has the
potential to effectively streamline business processes and operational performance. The added
benefit of “going global” with a paperless initiative offers benefits that can compound upon
each other, offering the potential to truly disrupt your business model and competitive
environment, provided the right architecture and deployment strategy is adhered to.
Best-in-Class performance dictates the selection of an appropriate platform and infrastructure
as part of a paperless strategy. This approach would be one that is inherently (natively)
paperless and facilitates cross-functional and cross-system integration within the company,
within the plants and warehouses across the enterprise, and with suppliers, customers,
contract manufacturers, and supply chain partners around the globe.
Chart 1: Above chart shows theoretical benefits of deploying a global paperless strategy, based on average costs and benefits from a 10+ site deployment.
10 Extracting Greater Value from Paperless Manufacturing
Most companies already have major pieces of the puzzle in place – ERP, MES, CRM, PLM –
so have paperless success in isolated areas. In order to move forward, a concern might be the
perception that existing systems need replacement with great expense and disruption. In most
cases, this scenario is unlikely. If existing systems are up-to-date and include paperless digital
capabilities, they can be part of your digital infrastructure and become full participants of the
integrated pervasive information environment necessary for future manufacturing success.
The Plan Building on the existing paperless functions within your existing enterprise systems (ERP,
MES, CRM, PLM, etc.), is the first step to envision a plan; the next step is to select an
integration platform that can effectively bring all functions together. This new platform must be
paperless by design, and equipped to integrate with paperless processes in the plant,
warehouse, and supply chain including but not limited to labor data, inventory movement,
quality (specifications, test plans, measurements, data), schedules, electronic Kanban and
replenishment signals, and ability to collaborate.
The platform must be capable of handling electronic work instructions, engineering documents,
electronic manufacturing records, global trace and track, part and product genealogy, serial
number tracking (end-to-end) with as-built configuration archiving, and support for regulatory
requirements for electronic documentation and record keeping in your industry.
You’ll also want to deal with a platform supplier that offers services to help configure and
implement the system and one with the capabilities and experience to help integrate their
platform with your existing ERP, CRM and other installed systems.
The next step is to install the platform, then integrate it with existing paperless systems. Next
on the list is implementation of new paperless processes in a logical and systematic
succession. Your platform partner should be able to help you put together a plan and
schedule. Continue this expansion of paperless processes until your entire enterprise and as
many of your suppliers and customers as possible are on board.
Follow by Example These companies and many more have seen the benefits of paperless operations, realizing
that the added control, visibility, and efficiencies derive from a systematic and comprehensive
multi-site or global approach. Piecemeal paperless “islands of efficiency” offer reasonable
return-on-investment through the elimination of paper and improved data accuracy and
management at a local level. But the benefits are multiplied tenfold when paperless is built into
the company’s operational DNA. Paperless operation must be global, comprehensive, and
seamless, and that requires a natively paperless infrastructure that ties people and processes
together throughout the enterprise and the supply chain.
“The arrival of our
Apriso solution has
significantly changed
the ways of working
teams. Not only the
system, fully
computerized, ended
the use of paper
documents, but it has
also made use of
French terminology
throughout the
production process as
possible. Every effort
invested in the
development of our
Apriso solution allowed
Bombardier to reap
great rewards”
John Ciaralli Director, Information Technology at Bombardier Aerospace
11 Extracting Greater Value from Paperless Manufacturing
Conclusion Access to timely, accurate data is now a necessary part of the infrastructure supporting the
effective implementation of manufacturing best practices, including the continuous process
improvement programs that will ensure competitive viability and performance can be
maintained today and tomorrow. Electronic records are increasingly required to operate in the
globally and digitally connected world that is now a reality. These records can offer
considerably improved performance, enhanced customer satisfaction, or might even be
contractually required by customers, or legally required in some industries.
Having all parts of the enterprise, including remote locations and connected trading partners,
draw timely, consolidated and controlled information from centralized database as needed,
when needed, insures everyone is working with only the latest and best information. And, that
there will be no issues of whose information is more current or more correct. A flexible,
responsive and efficient change control process improves a company’s ability both to compete
and to automatically comply with regulatory requirements.
This paper has presented some of the potential benefits of moving from a paper-based to an
electronic, paperless manufacturing operations management strategy, which include:
• Improved quality – By minimizing errors and maximizing the ability to identify and
introduce changes earlier in the process, you reduce manufacturing issues and raise
the overall product quality across the product lifecycle, all done for a lower cost with
less waste.
• Reduced time-to-market for new products – By eliminating time-consuming
manual tasks reduces product development cycle time while simplifying engineering
change orders and ensuring the right design is ultimately executed in the product.
• Increased innovation – By reducing the change-related administrative workload, you
provide more engineering time to develop innovative products.
• Improved performance from continuous improvement – By allowing employees to
focus on executing processes as directed, with seamless integration and access to
the latest design process, process improvement performance can be achieved.
• Automated adherence to compliance and traceability – An electronic process
provides automated tracking and linking to ensure better audit results and greater
accuracy when managing product recalls or implementing traceability requirements.
Each of these benefits is possible with implementation of a paperless strategy. The scope of
influence on performance improvement is dependent upon the approach that is taken. A
global, enterprise-wide strategy can offer benefits that far exceed the additional cost, offering a
return on investment that could literally be achieved in months after the initial sites go live.
12 Extracting Greater Value from Paperless Manufacturing
About Apriso Solutions Since 1993, some of the world’s largest and most successful manufacturers have leveraged
Apriso software and services solutions to ease the challenges of global manufacturing
operations management. With Apriso, manufacturers can improve organizational agility so as
to adapt more quickly and effectively to change. This agility enables firms to take advantage of
new market opportunities by delivering the right product at the right time for the lowest total
cost. Manufacturers choose Apriso to help manage today’s manufacturing transformation of
thinking global while acting local.
Apriso software solutions have won numerous awards and accolades for their ability to tightly
synchronize global manufacturing operations and supply chain networks to deliver real-time
visibility, control and synchronization of business processes performed across plants and the
product supply network. Leverage an Apriso solution to establish a common set of operational
standards that can be managed holistically on a global scale while still being continuously
improved to meet your local market and customer needs.
Apriso Corporation was acquired by Dassault Systèmes in July 2013, and is now a product
portfolio within its DELMIA brand. Apriso products and solutions provide a connection between
the virtual world of digital manufacturing and the real world of manufacturing production.
About Dassault Systèmes & DELMIA Dassault Systèmes, the 3DEXPERIENCE Company, serves 170,000 customers across 140
countries, providing virtual universes for sustainable innovation. Dassault Systèmes’ DELMIA
brand offers products that connect the virtual and real worlds. As part of DELMIA, the Apriso
product portfolio – including its suite of manufacturing operations management applications –
helps manufacturers transform their global operations to achieve and sustain operational
excellence. Learn more at apriso.com, visit our blog at apriso.com/blog, or follow us on Twitter
at @Apriso.
www.apriso.com