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digitalsoft SIOP & Smart Factory Planning, Execution and Control of Operations

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Page 1: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

digitalsoft

SIOP & Smart Factory

Planning, Execution and Control of Operations

Page 2: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

Leverages digital technology as a competitive advantage in

internal and external operations.

digitalsoft

Connect and Empower Businesses

We are providing smart platforms enabling digital

transformation and value chain integration being agile in

innovating and adapting to business needs

Digitalsoft

Head Quarter

Pescara, Italy

+39 0871 090000

Digitalsoft Innovation Lab

Innovation & Development Center

Madurai, India

+91 739 773 3522

Digitalsoft US

Sales and Operations

Atlanta, USA

+1 800 755 7264

Digitalsoft China

Sales and Operations

Shanghai, China

+86 185 2107 0660

Page 3: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

Processes enabled by

Strategic Planning (STRAP)

Execution

Master Production Scheduling(MPS)

Detailed SchedulingShop floor & Supplier Scheduling

SIOP

Operations

Plan units

Demand

Plan Inv $

Strategy

Planning

Dem

and P

lannin

g

Custo

mers

Supply

P

lannin

g

Supplie

rs

Business Planning (BUDGET)

3

Page 4: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

• Monthly Process

• Demand Management

• Long Term Planning

• Load Balancing

• Scenarios & Simulation

• SIOP Report & Analytics

Processes enabled by Platforms

4

Pro

cess

• Weekly Process

• Demand Arbitration

• Production Planning

• Shipment Planning

• Inventory planning

• Constraint Checks

• Versioning

Sales & Operation

Planning

Master Production

Planning

Strategic Business

Planning

• Material Requirement

Planning

• Supplier scheduling

• Supplier Collaboration

Portal

MRPExecution of

Operations

Sys

tem

s Your ERP

(SAP, Oracle, Infor, …)

• Detailed Shopfloor Scheduling with

real time production progress

• Clear to Build: components

availability monitoring

• Execution and Control of

Manufacturing: Quality, Traceability,

Visual boards & KPI, Maintenance

• Logistic Execution: Warehouse,

Material handling & Replenishment

• Clear to Ship: Shipment process

Sales, Inventory & Operations Planning Smart Factory

Page 5: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

enabling your end-to-end connected supply chain

Page 6: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

Leverages digital technology as a competitive advantage

Smart platform enabling digital transformation

and value chain integration

Page 7: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

7

Digitization and integration of

manufacturing and supply chain

processes, empowering

operators, supervisors and plant

managers to proactively manage

the production execution

process thru streamlined

transactions and KPI

enablement.

Enabling a robust planning

process to create the best

supply plan based on latest

demand insights, internal and

external bottlenecks and

targeted inventory levels.

Connecting data and

processes, IOT with Big Data

analytics will enable a more

reliable monitoring across the

actors involved in the

operations to detect problems

early and prevent outages.

Real-time interactive boards for

operation excellence:

OEE, Actual vs Target,

Production Line Downtimes,

Andon, Maintenance activities,

Warehouse and Material

Handling activities.

Page 8: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

8

Sales, Inventory and Operation Planning enables the

creation of a capacity constrained production plan.

The plan will become more realistic and achievable

Page 9: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

– Features

9

Sales, Inventory and Operation Planning

Demand Management

• Sales Forecast management

• Demand Planning and Arbitration

(sales forecast, customer orders,

etc.)

• Automatic demand forecast based

on statistical forecast / machine

learning algorithm

• Automatic update demand plan

based on previous week past-due.

Analytics & KPI

• SIOP dashboard and report

• MPS dashboard planning status

• MAPE & Bias report

• Demand Analysis report

• Weekly report

• Revenue report

• KPI: OTTR, DOS, Premium

Freight, Cycle time

ERP connector

• Import “Master data” : Materials,

BOM

• Import EDI, Customer Orders,...

• Import “Actuals” : Production,

Inventory stock, Shipments,...

• Export Production Planning to your

ERP as Ind. Requirement or

Planned (input to MRP).

• Export Arbitrated Demand to the

ERP

Scenario & Simulation

• Easy way to simulate a different

what if scenarios.

• Manage different set of constraints

by scenario

• Execute optimizer for each

scenario

• Compare various scenarios and

Finalize the best scenario and

finish goods requirements.

• Versioning

Inventory Planning

• Shipment planning. You can do it

within the planning table

• Automatic stock projection based

on actual stock, production,

shipment and purchased quantity

• Target stock automatically

optimized vs demand forecast and

production plan while respecting

the material target stock days.

RCCP

• Rough Cut Capacity Planning

• Supplier Capacity management

and Analysis

• Internal key resources check

• Highlight and track critical

situation with aging

• Critical issues classification report

Constraints Checks

• SIOP streamlines the constraints

side of things.

• External constraints (Supplier

Capacity)

• Internal constraints (Production

line capacity and Manpower)

• Customer Priority

Production Planning

• Short and long term Production

planning (weekly and monthly

process)

• Automatic optimizer for Production

Plan proposal ensuring inventory

targets, customer priority and

internal and external constraints.

• Flexible planning layout screen,

with integrated RCCP and

Constraints check

• Load balancing

Page 10: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

digitalsoft 10

Drive operational excellence by simplifying &

enhancing operational backbone for speed,

quality, flexibility and efficiency

Page 11: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

• Detailed Shopfloor

Scheduling

• Graphic Gantt

• Real time production

progress updating

• Constraints checks

• Calendar and Capacity

management,….

Scheduling

• Components

availability

• Sub assembly

monitoring

• Embedded control

inside the scheduling

control by components

availability

• Quick view of critical

components / subassy

• Interface with SAP

Clear to Build

• Production

management &

confirmation

• Downtime

management

• Maintenance &

Escalation

• Labor activity

management, Skill

map

• Production Data

Collection

Manufacturing

• PULL Strategy:

internal pull between

shop floor and

warehouse

• Automatic shop floor

replenishment

• Replenishment

activities guide and

coordination (forklift,

milk run, self-driving

vehicles, ...)

Logistics

• FIFO and Warehouse

management

• Retrieval and Storage

operations

• Warehouse activity

monitor & KPI

• Kitting

Warehouse

• Delivery order from

SAP

• FG Stock Analysis

• Cargo management

• Dock booking mgmt.

• Automatic forklift

mission

• Labeling, Check &

Load

• Print Docs, Post Good

Issue

Clear to Ship

• Real-time production

vs target

• OEE & Performance

Analytics

• Warehouse &

Replenishment

activities

• Metrics & Key

Performance

indicators

• Cognitive Analytics

with AI / ML

Visual Mgmt

• Traceability of

materials and

components

• Traceability of lots and

container ID

• Traceability of

operations (downtime

etc.)

• Traceability of process

data

• End-to-End Fully

Traceability

Traceability

• Scrap & Rework mgmt,

• Quality Alert

• Part checks /

inspection

• Work instruction (SOS)

& Check list

• Process Control &

Poka Yoke

• SPC integration

Quality

• Escalation process

• Andon management

• Kaizen

• 5S

• RCA

• Gemba walk

• Audit

Lean Mfg

• Self-driving vehicles

• Automatic Warehouse

• Automatic Weight

System

• Automatic systems for

identification, storage,

palletize, wrap, ...

• Collaboration Robot

Automation

• Machine Data

Collection

• Interface Machine and

Sensors / Devices

(IIOT)

• Real time interface

with SAP and

Enterprise Applications

• Integration with

Automation and

Robots

Integration

11

– Features

Page 12: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

– Connecting Intelligence

12

Things

Connecting all

physical devices and

objects for data

collection.

Process

Delivering the right

information to the

right person at the

right time.

People

Connecting people in

more relevant and

valuable ways.

Data

Leveraging data into

more useful

information for

decision making.

$ $$ $$$ $$$$

00101010010

101010001

10011

The right data at the right time to right devices, so that the right people or machine can make

the right decision with automated processes and analytics insight.

Page 13: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

– The fully connected way of making things.

13

SUPPLIERS

3D PRINTING (ADDITIVE MFG)

-Scrap elimination-Mass Customization-Rapid Prototype

IOT / SENSORS

-Zero default /deviation-Reactivity-Traceability-Predictability

ADVANCED MATERIALS

-Smart value-added products-Technical differentiation-Connectivity

Cloud Computing

CYBER SECURITY

-Stronger Protection for internet based manufacturing

-Technology products with longer life cycles

BIG DATA

-Making Sense out of complexity-Optimization & Creativity-Collaborative manufacturing

MANUFACTURING SYSTEM

-Cyber-physical systems-Interconnected systems-Full coordination & automation-Planning of Operations -Execution & Control of Operations

ROBOTS / COBOTS

-Real-time autonomy / productivity-Full transparency (contextualization, comprehensiveness, collaborative robot) on data reporting

MASS CUSTOMIZATION

- Customer and marketing intimacy- Flexibility- Perfect match of customer’s need with mass production efficiency

- On-demand manufacturingSmart Factory

CUSTOMERS

INTERNET OF THINGS

- Object tagging- Internet-to-object communication- Real-time data capture- Optimized stocks- Reduced waste

Supplier Collaboration

- Integrated Supply Chain- Interconnected systems- Perfect coordination

LEAN LOGISTICS

-Pull Replenishment-Flow optimization

-Lower costs

SHIPMENT

-Shipment optimization

-Fully Traceability

-Lower costs

Page 14: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

14

– Business Transformation Roadmap

FoundationIntegrated

& VisualConnected

Flexible &

Intelligence

Smart

Factory

1st year 2nd year 3rd & 4th year 5th year 6th & 7th year

Future Factory

Data

Planning

& Detailed

Scheduling

Manufacturing

Logistics and Material Handling Quality Analytics

Traceability

of materials

Machine Data

CollectionTraceability

of process data

Intelligent SensorsTraceability

of operations

Device History

Record

E2E Fully

Traceability

Cyber physical

systems

Capacity

AnalysisDetailed

Scheduling

Scenario Planning

& SimulationSIOP Clear

To Build

Automatic Optimized

Planning

Constraints

Analysis

MPS Weekly

PlanningSelf-driving

vehicles

LeanLift

integration

Warehouse

Automation

Automatic

Identification

& Loading

Clear

To Ship

Smart

Supply

Network

Warehouse

Management Unique Container ID

Kitting Physical Inventory

Count Batch

Management

Warehouse activity

monitor & KPI

PULL: Shop floor

Replenishment

Serialization

Production

Execution

Downtimes

KPI, Reports

Escalation

Visual Factory

(Andon, Prod.Line...)FG Declaration

Backflushing

Mobile workforce

MaintenanceRework / Repair

Resource & Labor

Mgmt, Skillmap

Smart Maintenance

e-Kanban

Augmented Reality

Collaboration Robot

Eco-efficient system

Flexible

productionSmart Integration

with PLM

Responsive

Manufacturing

Automated KPI, Metrics

RCCPConstraints

Checks

Predictive Insights

Data Analytics

Predictive

Analytics

Actionable

Intelligence

Automatic

adjustment

of machine

parameters

Maximizing

asset

utilization Minimize

bottlenecks

Insight to

product

design

Intelligent

Products

Check List and Work

instruction (SOS)

Part checks

Scrap mgmt

Process Control &

Poka Yoke

SPC integration

Incoming

Inspection

Digital Quality Mgmt

Quality

Prediction

Remote

Quality

Monitor

Prescriptive

Analytics

Supply Chain Planning

Collaboration

Quality Notifications

Closed-loop control

Lean mgmt

(Kaizen, Audit,...)

Phase

Page 15: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

Source: McKinsey Digital - Industry 4.0 How to navigate digitization of the manufacturing sector

INDICATIVE QUANTIFICATION OF VALUE DRIVERS CASE HISTORY: BENEFIT MEASURED FROM

OUR PAST IMPLEMENTATIONS

3% - 5%Manufacturing Plant

Productivity YoY

10% OTTR & Production

Reliability improvement

25% Customer Service Level

improvement

5% - 10% Inventory reduction and

Yearly financial adjustment by

higher accuracy

15% Cycle Time and Downtime

reduction

5% - 10% Indirect Cost and Time

reduction

5% - 10% OEE – Overall Equipment

Efficiency improvement

+5% Enabling sales increase thru up

sell and cross sell (with higher

margin >50%)

is enabling up to 10% overall productivity YoY, when implemented in combination with Lean methodologies

Page 16: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

Thank you

16

We are committed to co-create

value with our Customers

Page 17: SIOP & Smart Factory - Confindustria · Manufacturing Plant Productivity YoY 10% OTTR & Production Reliability improvement 25% Customer Service Level improvement 5% - 10% Inventory

Thank you