White paper: ‘Orchestrating’ global manufacturing operations requires more than ERP

Apriso and IDC study looks at integrating divergent facilities and people.

03/12/2012


Apriso announced findings from the IDC Manufacturing Insights white paper. The document, “How a Modern Operational Platform Can Help Manufacturers Gain a Competitive Edge,” revealed manufacturing’s critical role in helping Germany better weather the recent economic storm. Looking forward, the white paper suggests that manufacturers can further improve manufacturing operations efficiency via continuous process improvement and better integration of global manufacturing operations.

Based on a recent survey of 445 manufacturers, two emerging trends are driving the need for more globally integrated manufacturing operations:

  • Increasing mass configuration, and
  • Growing reliance on dynamic, multi-plant production networks.

IDC Manufacturing Insights suggests better “global multi-enterprise orchestration” can effectively address these trends.

“Firms have evolved from being 'international,' with centralized management and operations with physical distribution channels, to 'multinational,' with each region having its own product variations and management. Now companies are looking to become globally integrated, with locally tailored products and services designed anywhere, produced anywhere and sold anywhere,” said Pierfrancesco Manenti, EMEA Head at IDC Manufacturing Insights.

“Customer fulfillment in globally integrated organizations depends on supply chain agility and visibility, which in turn depends on effective and efficient manufacturing operations processes that can be easily changed as the need arises,” said Tom Comstock, executive vice president at Apriso. “Supply chain process improvement won't work if manufacturing capabilities don't keep pace, pointing to the need for a flexible solution for manufacturing operations management, which Apriso customers are able to leverage.”

Typical manufacturing enterprises have an extremely diversified, disparate and disconnected IT application landscape on their plant floor, a situation manufacturers now recognize as counterproductive when striving to achieve globally integrated operations. These solutions do a fine job of managing local plant operations, but very often they are not interconnected with each other and are loosely integrated with corporate ERP and other business applications.

While the current deployment models for ERP may have been sufficient for the back-office needs of the "international" and "multinational" manufacturing enterprise, going forward the globally integrated firm should follow a new approach that balances the need for greater corporate coordination with the requirement for greater latitude in operating in local markets. According to the white paper, globally integrated manufacturing enterprises have two critical needs that a pure ERP approach simply can’t address:

  • Having a real-time visibility, intelligence and decision-making environment. These capabilities require non-transactional systems in addition to ERP's system of records in order to offer insights into operations management.
  • Achieving global multi-enterprise orchestration. This goes beyond the nature of a traditional ERP that is generally designed to serve a single enterprise.

IDC Manufacturing Insights suggests the industry needs a new complementary platform to ERP. “We believe a modern ‘operational platform’ is needed … a separate enterprise wide operational platform that is as important as the corporate ERP platform. Supporting a customer fulfillment driven approach to operations management in globally integrated organizations, the new platform dictates an evolution and elevation of the existing applications deployed to support operational processes,” said Manenti.



Anonymous , 12/04/12 10:13 PM:

I cannot figure out how to access white papers. Is there a charge for this service?
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Bring focus to PLC programming: 5 things to avoid in putting your system together; Managing the DCS upgrade; PLM upgrade: a step-by-step approach
Balancing the bagging triangle; PID tuning improves process efficiency; Standardizing control room HMIs
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.