Buy a commando enterprise application or integrate?

1. © Copyright John Cachat
Integration Technology to
Solve Business Problems
in Manufacturing
John M. Cachat
jmc@peproso.com Better Technology. Lower cost.

2. © Copyright John Cachat
Housekeeping
Phones are muted
Use the question
block for questions Copy of presentation
available upon request

3. © Copyright John Cachat
About John M. Cachat
• Driving Business Performance
– Helping companies align their business and technology
– Focus on people, process, and then the technology
– Subject matter expert on business process management
– On-going research into next generation of technology for enterprise
systems
• 28 years experience in enterprise systems
– USAF Research Project (1985)
– Founder of enterprise quality software company (1988)
– Chair of ASQ technical committee on computerizing quality (1992)
• Trusted advisor to global organizations, government agencies,
and professional groups
http://www.linkedin.com/in/johncachat

4. © Copyright John Cachat
Agenda
• The Manufacturing Software Map
• Engineering Change Process Example
• Software Demonstration
• The Business Case
• Introduction to Silico
4
Get the software you want and make it work the way you want it to work.

5. © Copyright John Cachat
Evolution of Manufacturing Software
Started with Accounting
(AR, AP, GL)
Labor Intensive
Slow and Error Prone
Executives wanted faster
and more flexible reports
Reports showed too much
inventory
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6. © Copyright John Cachat
Started with Accounting
(AR, AP, GL)
Labor Intensive
Slow And Error Prone
Executives wanted faster
and more flexible reports
Reports showed too
much inventory
Started with Accounting
(AR, AP, GL)
Then Came Inventory
Related Transactions
Labor Intensive Purchase Better
Slow and Error Prone Schedule Better
Executives wanted faster
and more flexible reports
Ship Better
Reports showed too much
inventory
That covers it; Right?
Evolution of Manufacturing Software
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7. © Copyright John Cachat
Started with Accounting
(AR, AP, GL)
Labor Intensive
Slow And Error Prone
Executives wanted faster
and more flexible reports
Reports showed too
much inventory
Started with Accounting
(AR, AP, GL)
Then came Inventory
related transactions
Labor Intensive Purchase Better
Slow And Error Prone Schedule Better
Executives wanted faster
and more flexible reports
Ship Better
Reports showed too
much inventory
That covers it, Right?
Started with Accounting
(AR, AP, GL)
Then Came Inventory
Related Transactions
Engineering & Shop Floor
Labor Intensive Purchase Better Moved from drafting board
to computer (CAD)
Slow And Error Prone Schedule Better Can’t find documents –
added vaulting (PDM)
Executives wanted faster
and more flexible reports
Ship Better Added workflow (PLM)
Reports showed too much
inventory
Shop Floor MES
Evolution of Manufacturing Software
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8. © Copyright John Cachat
Manufacturing Software Map
ERP - Planning Systems
PLM–
EngineeringSystems
MES – Execution Systems
Document
Driven
Data
Driven
CRM / SRM
Legacy
Other
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9. © Copyright John Cachat
What About the Other?
• Imagine if you had a technology that allowed you to
focus on the business process
• Let’s look an the Engineering Change Process
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What business processes are the
ERP, PLM, MES technology not
supporting in your company?
What areas do you use XLS to
help do your job?

10. © Copyright John Cachat
Engineering Change Management:
A Four Step Process
1.
ECR
Change
Request
2.
ECN
Change
Notice
3.
ECO
Change
Order
4.
ECV
Change
Verification
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11. © Copyright John Cachat
Change Request
• Source
– Customers
– Internal
– Suppliers
• Deviation/Waiver/Permanent
• Should you or shouldn’t you do it?
– Review impact & related costs
– Determine risk
– Other parts, processes, etc.
• Who get’s to vote? – Create some rules.
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12. © Copyright John Cachat
Engineering Change Management:
A Four Step Process
1.
ECR
Change
Request
2.
ECN
Change
Notice
3.
ECO
Change
Order
4.
ECV
Change
Verification
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13. © Copyright John Cachat
Change Notice
• Who needs to know about the change and what
do they have to do in order to prepare for the
change?
– Engineering
– Manufacturing
– Quality
– Purchasing
– Marketing (Packaging)
– Customers
– Suppliers
• What needs to be updated?
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14. © Copyright John Cachat
Engineering Change Management:
A Four Step Process
1.
ECR
Change
Request
2.
ECN
Change
Notice
3.
ECO
Change
Order
4.
ECV
Change
Verification
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15. © Copyright John Cachat
Change Order
• Everything is ready to go
• When do we start?
– Immediately
– By Date
– By Inventory/production schedule
• Existing parts (rework, scrap, use as is)
• New parts
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16. © Copyright John Cachat
Engineering Change Management
A Four Step Process
1.
ECR
Change
Request
2.
ECN
Change
Notice
3.
ECO
Change
Order
4.
ECV
Change
Verification
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17. © Copyright John Cachat
Change Verification
• Percent of changes that were correct
• Did we get what we expected?
– Cost reduction
– Quality improvement
• If yes, great and review other parts that we can apply
the same change
• If no, start over
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18. © Copyright John Cachat
Manufacturing Engineering Change Process
ERP
PLM
MES
CRM / SRM
Legacy
Other
1.
ECR
Change
Request
2.
ECN
Change
Notice
3.
ECO
Change
Order
4.
ECV
Change
Verification
18

19. © Copyright John Cachat
Integration Ideas
• Look at the product lifecycle and look for gaps
• Process view, not department view, not a
document view
• Start with a process flowchart
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20. © Copyright John Cachat20
Engineering Change Process
What it actually is:
What you think it is:
What it should be:

21. © Copyright John Cachat
Lesson Learned
• Traditional software development that focuses on
databases, menus, and screens is obsolete
• Listen to the people, understand their process,
and help them do it better
• Technology must not be a roadblock that
– Requires extensive training
– Requires expensive customization to fit your needs
– Forces people to adapt to the software
• Help them do their job!!!
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22. © Copyright John Cachat
Next Generation Software
“If you want the Next Generation of the workforce to
use the software, it needs to look like something
they will want to use…..”
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23. © Copyright John Cachat
Next Generation Software
WORKFLOW BUILT IN REPORTING
SUPPORT
MOBILE
DEVICES
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24. © Copyright John Cachat
Instant Application Platform
Instant
Application
Platform
Workflow
User
Interface
Templates
SecurityReports
Business
Logic
API Tool
Set
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25. © Copyright John Cachat
The Process (or Workflow)
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26. © Copyright John Cachat
People, Process, Technology
Process
(workflow)
Technology
People

27. © Copyright John Cachat
Your Form, Your
Process, Not Their
Screen
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28. © Copyright John Cachat
Your Form, Your
Process, Not Their
Screen
28
• Little-to-no training
required
• No need to change
existing documentation
• Make their job easier
• Integration to ERP, PLM,
MES should be invisible
to User

29. © Copyright John Cachat
THE DEMO
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30. © Copyright John Cachat
ECR, ECN, ECO, ECV
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31. © Copyright John Cachat
The Silico Model
3.
Technology
2.
Process
1.
People
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32. © Copyright John Cachat
Next Generation
Technology Requirements
• Requires little internal IT support
• Rapid web form development & maintenance
• Minimum to no programming required
• Intuitive and graphical workflow definition
• Integration with other applications (web services)
• Rapid updates/improvements
• Support mobile devices/tablets
• Option – Buy or Software as a Service (SaaS)
32

33. © Copyright John Cachat
What is the Goal?
No Bad MaterialDo Things FasterLess Labor Increase Revenue
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34. © Copyright John Cachat
Value Proposition
Streamline operations - faster cycle time
Improve responsiveness – simplify work
Increase visibility – via notifications
Minimize risk - less variation
Make better decisions – access to data
Reduce IT costs - less development time
Enforce governance – compliance & audit trail
Bottom Line – Reduce Risk & Save Money!!!
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35. © Copyright John Cachat
About Us
John Cachat
jmc@peproso.com
Contact
Proven expertise in business
information systems
Rapid Solution
Development™ process
Services
Assess Current Status
Develop Short and Long
Term Plans
Develop Specific Solutions
to Your Problems
Assist in ROI Analysis

36. © Copyright John Cachat
FREE Proof of Concept
We
We

37. © Copyright John Cachat
Integration Technology To Solve Business Problems in Manufacturing
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Contact:
John Cachat
jmc@peproso.com
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