NOT too long ago production and management were worlds apart when it came to IT systems. There were SCADA systems for the shop floor and ERP systems for management, and that was basically it.
Then along came MES (manufacturing execution systems) in the early 90s or CIM (computer integrated manufacturing) as you might remember it.
Until recent times, manufacturers have concentrated mainly on their ERP systems, with only the major international manufacturers taking advantage of MES in Australia.
But according to Christopher Crowe, the recently appointed CEO of Citect, this is all about to change, with manufacturers realising MES has much to offer.
“In a manufacturing environment MES’s biggest advantage is in equipment efficiency,” Crowe told Manufacturers’ Monthly.
“Without putting more CapEx into a plant, manufacturers can get more production out of their current equipment.
“In days past,” Crowe said, “it was a matter of running the plant harder. But that’s not necessarily the answer.
“While many describe downtime as where everything stops and hooters go off, in reality it’s not like that. Downtime can be for just five minutes, and then start again. You might have 20 of these in a day, but that’s enough to have a 10% effect in terms of capacity.
“So if you can cut out those 20 stops, you’re increasing your capacity by 10% straight away.”
But as Crowe explains, there’s no one answer, it’s a combination of events. “But the bottom line we’re getting from customers is the more information they get in a timely manner, whether it’s downtime or whether it’s the behaviour of workers on a particular shift, the better.
“If running two shifts, there is often a change in production because of the way the people engage or the way they do something.
“Or it could be mechanical problems; it could be supplier issues in terms of supply and timing.
“Of course the guy in the plant knew, but traditionally management didn’t. It was black magic to them.” And that, Crowe says, is what’s driving MES systems now.
ERP vs MES
While many manufacturers have invested heavily in ERP systems, Crowe says many are now realising ERP stops at a certain spot.
“They are also realising SCADA systems also stop at a certain spot, and that there is a middle layer. While customers don’t often call it MES, they know what they want.”
Crowe points to research indicating spend on ERP systems by manufacturers is going to slow right down.
“Now they’re focusing on that next layer, the information management system layer. Manufacturers are saying they need their ERP business system, but they also need information on production levels.
“If I’m due to produce 5,000 bottles of a certain soft drink for example, I want to know if I am going to make it on time.”
According to Crowe, that information can go right up to a company’s board level, but mainly to its middle management.
“They want to hear about any problems as they happen. Not wait a week or two.
“MDs may also want to see that information. They might want to find out what is actually going on in plants around the world in a consolidated view.
“We consolidate the information into a dashboard type display, with production targets and actuals. The MD might click on a plant that did not make its production target and it comes up with a breakdown analysis of the plant, then click again and it actually tells them which production line.
Crowe says major companies are continuously looking for better efficiencies in their plants, “to reduce costs”.
“They’re looking for timely information. So they’re willing to invest into this middle layer because they can judge those things quicker and make decisions faster,” Crowe said.
And that investment is not too onerous according to Crowe, claiming companies can double their EBIT within 12 months by putting in information systems like this, with most getting a ROI within 12 months.
He also suggests implementation costs are way lower than for ERP, with no big bang.
“Amcor is a good example. They understood the concept, did the study, they put it into two of their production lines.
“It’s been going now for about 12 months; they got the pay back and have seen the deliverables. OK they tweaked it a bit for their business needs, but they’ve rolled it up to the other lines and now there’s a standardisation happening across the whole business.”
Interestingly Crowe says there is actually no need to have an ERP system. “Some companies just go straight in with MES type systems. They have a simple financial system and then they put in an MES as the next layer.
“Because it can be production rate, flow of material, downtime issues, there’s a whole spectrum of modules in MES that people can choose from.
“My suggestion for manufacturers sitting on the fence regarding MES is to engage an IT company that has been doing this for a while and go through a specification stage.
“Go through what we call a discovery service stage where we set out from a business need analysis and really clearly articulate what the business wants first, and then see what’s on the marketplace,” Crowe said.
SCADA warning
Following a recent a SCADA warning, Crowe was quick to reassure his SCADA customers they are extremely unlikely to be at risk from potential security breaches found by Core Security Technologies in Windows-based control systems utilising ODBC technology, so long as their systems are protected by industry-standard security guidelines.
Crowe said Citect and other SCADA and control vendors have been communicating potential vulnerabilities of control systems when they are connected to the internet for some time. However, Crowe believes this is only relevant to a company using ODBC technology and directly connecting its system to the Internet with no security in place — a situation unlikely in today’s business environment.
“Though we have not had any reports of breaches, we are contacting our customers globally to confirm they have followed recommended network security measures.
“We have also developed a patch for those companies that might not be able to implement necessary network security measures promptly.”
Citect advises customers on network security and has published whitepapers to further educate the market: www.citect.com/index.php?option=com_content&task=view&id=26&Itemid=29.
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