HOW CAN PROFICY SERVE THE ENERGY ISSUE?

by Coleman Easterly Feb 2008

How can Proficy Serve the Energy Issue?

Let’s explore:• What is Proficy? (What it does best)• What about energy in manufacturing?• What opportunities to save energy?• Which ones can Proficy serve?

What is Proficy Plant Applications?

• System for automating and integrating the information tasks of managing and optimizing manufacturing performance

Value of ProficyTM

Ranked By $

1. MOM2. ERP3. CRM4. SCM5. PM

Ranked By Driver

1. Compliance

2. Customers3. Competiti

on

• Business Process Integration• Execution Of Production Orders• Shop Floor Scheduling / Sequencing• Product Quality and Compliance• Product Traceability• Workflow Management • Performance Monitoring / OEE• Asset Maintenance

Confidential – do not distribute

$ $ $

$ $

$$

Can’t control what you can’t see…

(Proficy)(Proficy)

Can control what you can see…

Real-time SituationAwarenessFrom this To This

Historical UnderstandingFrom this To This

?

How It Works Proficy continuouslymonitors raw data… based on configurations…

detects and interprets events and collects information…

Logs data, calculates KPIs, and monitors against stds…

provides reports and analysis to help you understand why…

alerts you with alarms & emails…

What you do with Proficy

• Manage objectives• Drive Activity• Capture reality• Monitor compliance• Communicate• Capture reasons• Analyze and report• Evaluate/Evolve and improve

(Performance Management)

Proficy Strengths

• Performance Management:– Driving business objectives into manufacturing– “Actionable Intelligence” from data

• Data collection & Integration – the whole picture• Conformance tracking• Real-time Visibility• Historical Analysis• Automated Reporting

• Self-sufficient system management

WHAT ABOUT ENERGY IN MANUFACTURING?

Motivation is Increasing for Energy Conservation

• The Environment • Cost Pressure (competition for products and

fuel)• Citizenship / Company Image• Regulatory Pressure

Remember these Culture Shifts?

• Safety OSHA, TCIR, S.T.O.P., • Quality ISO 9000, 6-Sigma• Cost BPR, ABC, ERP• Productivity OEE, LeanAnd now (or simply more-so)• Energy EPA, ISO 14000, GHG, Ecomagination,

Cluster Rule, Carbon Credits…

HERE ARE SOME DETAILS OF A GOVERNMENT STUDY

Of Energy consumed for Manufacturing, only a fraction delivers useful work. Most is lost in

generation, delivery, and the process.

Energy Consumed or Wasted for Manufacturing

Useful Work

Lost in Process

Lost Before Process

Gen & Trans Loss before Site

20% of Industries use 80% of the energy

Proficy grew up in these industries – a perfect fit!

15% of all mfg energy wasted at these

WHAT OPPORTUNITIES TO IMPROVE?

Top 20 Energy Opportunities

We want to zero in on a few

Process Optimization and Best Practices is a huge component of the

opportunities

Best Practice makes a huge contribution

Key Points from Energy Roadmap

• Improve systems to convert energy to useful work more efficiently (thermal, electrical, mechanical)

• Minimize Energy and Cost, while meeting product specifications and operating requirements

• Improve productivity through reduction in product waste, optimized processes and schedules

Key Points from Energy Roadmap

• Improve systems to convert energy to useful work more efficiently (thermal, electrical, mechanical)

• Minimize Energy and Cost, while meeting product specifications and operating requirements

• Improve productivity through reduction in product waste, optimized processes and schedules

Improve the physical Mfg Processes

Improve overall effectiveness/efficiencyOptimize and Balance Priorities

HOW CAN PROFICY HELP?

Proficy can help by Ratcheting Best Practices!

• Improve systems to convert energy to useful work more efficiently (thermal, electrical, mechanical)

• Minimize Energy and Cost, while meeting product specifications and operating requirements

• Improve productivity through reduction in product waste, optimized processes and schedules

Improve the physical Mfg Processes

Optimize and Balance Priorities

Improve overall effectiveness/efficiency

What you do with Proficy

• Manage objectives• Drive Activity• Capture reality• Monitor compliance• Communicate• Capture reasons• Analyze and report• Evaluate/Evolve and improve

(Performance Management)

Examples of Proficy ImpactProficy Plant Applications is production operations

management with actionable intelligence to optimize across the priorities of manufacturing, and balance

the trade-offs between them.

Mfg Operation Operating Topic Improvement Result

Beverage PackagingSchedule & BOM

Management & ERP Synchronization

5% productivity

CPG Production Quality & Traceability Management

Traceability Compliance in

Customer Audits

Wire Production Inventory & Consumption Management

$2MM Inventory reduction

Food Packaging Efficiency Management 10% Productivity

CPG Production Run-to-Target and Process Center-lining 2 to 5% Productivity

Brewing & Packaging Energy Management 5% Mfg Cost

Reduction

Food Production Environmental Management

Compliance and performance

Details of these examples in notes view of this slide

Proficy versus Major Capital Improvement Projects

• Lower risk (less cost than capital projects)• Need data anyway, to justify and evaluate

capital projects• Need actionable information anyway, to run

them

Proficy can help conserve energy by:

• Optimizing and Balancing Priorities: Minimize Energy and Cost, while meeting product specifications and operating requirements– Track quality, process, and energy variables– Analyze correlations, performance capabilities– Calculate KPIs from mixed inputs (kW/lb, $/lb,

etc)– Evaluate Energy Improvement efforts to assure

they don’t mess up quality or something else– Capture, enforce, and ratchet best practices

Proficy can help conserve energy by:

• Improving overall efficiency: Improve productivity through reduction in product waste, optimized processes and schedules– Track OEE (Availability * Throughput * Quality

Yield)– Center-lining ratcheting (sustained) best

practices– Support Lean and 6Sigma approaches

Target

USLLSL

CenterProcess

ReduceSpread

Defects

Six Sigma: The Philosophy Reduce variation & center the

processOff Target Excessive Variation

Target

USLLSL

Target

USLLSL

. . . Any Process or Value Stream

After

Before

Wait / Waste . . .Non Value Add TimeWait / Waste . . .Non Value Add Time

Lean Attacks Waste Here

Work . . . Value Add Time Work . . . Value Add Time

Lead Time / Cycle Time

•Reduced Cycles•Better Delivery•More Capacity•Better Quality•Productivity

Improved CustomerSatisfaction

Lean: The Philosophy Expose and reduce waste

Where is Waste in Manufacturing? These not only waste time and

money, but also ENERGY

Overproduction

Inventory

Extra Processing

Motion

Defects

Waiting

Transportation

• Processing before next operation is ready• Processing prior to need• Making decisions too early

• Multiple credit applications awaiting approval• Unnecessary document / data storage

• Navigating multiple screens to input data• Multiple ways to do the same task• Printed material• Duplicate entries

• Navigating multiple screens to input data• Printing Material• Ergo…walking, bending, twisting• Looking for data / info

• Personal data incorrect• Missed customer due dates• Data entry errors• Rework

• Credit applications awaiting approval• Info awaiting an overnight “systems batch run”• Manual decisions• System downtime / response time

• Delivering hard-copies• Shipping hard-copies requiring signature

• Sub assemblies and components between feeder & main lines

• Material between operations & process steps• Inventory stored in warehouses• Buffer & safety stock inventory

• Planned re-work• Un planned re-work• Handwork…polishing, deburring

• Operators bending, turning, twisting, reaching, walking• Machines “cutting air”• Robotic motion “getting back to home”

• Poor quality of materials• Equipment failures• Missing customer due dates…internal & external

• Operators waiting• Machines waiting • Customers waiting

• Conveyance of any materials, tooling• Conveyance systems

Lean

Drives Cycle Time Reduction Leveraging Proven Solutions

… Maximizes Customer Responsiveness With the Least Inventory/Resources

Lean Six Sigma = Efficiency & Consistency

Six Sigma

Drives Defect Reduction Leveraging Analytical Techniques

… For Complex Problems with Unclear Root Causes or Design Solutions

TimeAfter

Before

TimeValue addedNon-Value added

Proficy Helps You To:

• Save Energy• “Do the Right Things Right”• Automate Information Tasks (logging and

reporting)• Prioritize and Focus Improvement Effort• Evaluate Performance• Evolve Self-Sufficiently