Manufacturing Modern Models

Project

May 2003

……...

3.1 Title

MANUFACTURING MODERN MODEL Generator (MMM)

3.2 Location

The project will be conducted at Mahala Textile Industrial Town as a project first phase

3.3 Summary

Philosophy of MMM

Business and IT are getting tightly integrated, and business is relying on high performance and high flexibility of the supporting IT: IT must really support and enable the business and continuous improvement. Business demands extreme high availability of IT and IT services. IT personnel must be "service-oriented". IT must become the integrating facility for the operation of Business Units.

IT activities must be managed and be embedded in business-oriented activities.

As a consequence, the traditional organization and the execution of the functions of the former EDP department have to be reconsidered, as well as the relationship between IT functions and business functions. Because of the close integration of business and IT, line management and users will demand a different approach from what used to be the EDP-department; they even may want to take over some of the IT responsibilities.

Implementing state-of-the-art ERP systems requires highly skilled resources. This should not be underestimated: new concepts, new ways of working and new infrastructure have to be embedded in an organization which is used to the former concept, the former ways of working and the former infrastructure.

During the implementation phase, these resources that are involved in the implementation are building up experience and expanding their knowledge,

Everybody will admit that the handing over of this knowledge and tasks and responsibilities from the project organization to the standing organization should be done carefully, but common practice is quite different. In the traditional approach, in many cases major problems arise once the system has been implemented

MRP/ERP systems market

Enterprise Resource Planning systems could be defined as an integrated set of commercial and industrial software application packages which assist management in monitoring, controlling, enhancing, and re-structuring an organization’s activities and operations.

The evolution of ERP systems began in the 70s with the introduction of Material Requirement Planning (MRP) Systems running on mainframe computers. During the 80s, with the expansion of these systems, MRP II - Manufacturing Resource Planning - systems were developed. MRP II integrated MRP with Production Planning and Control and other shop floor control applications. During the early 90s, MRP II systems developed into ERP systems.

MRP II

DEM

ERP

MRP

IC

60s 70s 80s 90s 2000

Today, ERP systems provide a wider scope of integration between applications, integrating Manufacturing with Logistics, Finance, Project Management applications and other commercial and industrial applications across the Enterprise. In effect, such systems control and monitor the entire flow of information in a business or enterprise from supplier to customer, and could be referred to as ‘Supply Chain Management’ systems.

The market for ERP systems is growing rapidly with small and large companies alike, beginning to tire of maintaining internal IT departments, bearing the burden of continuous in-house development and associated costs of maintaining ‘spaghetti code’ written in outdated languages.

ERP systems introduce ‘best of breed’ practices - a wealth of external knowledge - to all industrial / commercial organizations.

With their state-of-the-art underlying technology, high-end ERP systems provide a variety of support products, some that enable continuous and on-going re-engineering to meet the demands of a changing business environment, while others enable management to monitor day to day progress and performance by compiling, analysing and reporting on the company’s performance based on user definable Indicators, which are updated on a real time basis.

Today some of the truly “open” high-end ERP systems are platform independent and allow easy interaction with third party products such as Vertical Industry applications, Decision Support systems, EIS, etc.

Is ERP in trouble? (Posted by ERP-People.com)

It isn't that the big vendors will die or that all their products no longer meet users' needs. The problem comes when manufacturing companies expect their investments in enterprise resource planning (ERP) suites to set them up to attack new markets and business opportunities, such as Internet commerce. They dream of systems that improve their coordination across internal activities, suppliers and customers -- with big payoffs in efficiency and competitive position.

ERP falls far short of those expectations, regardless of the big vendors' marketing claims. ERP suites excel at combining financial control with Multiplan manufacturing coordination, but users need more to realize their dreams. They need extended supply-chain planning and flexible execution that can implement one business process today but change rapidly to handle tomorrow's new models.

ERP's main functional weakness is in the planning functions -- master production scheduling and manufacturing resource-planning (MRP) modules that decide how and when to respond to customer demand with available resources. The modules can't support a real-world supply chain. They deliver the following:

Transactions -- without responsiveness . Responding to changes in demand, supply, available labour or machine capacity requires quick thinking, which isn't ERP's forte. Plant schedulers and planners make those decisions in their heads or resort to spreadsheets and the backs of envelopes. Based on incomplete analysis, they commit the plant to unrealistic customer shipment dates, which results in unreliable promises and annoyed customers.

Production focus -- without understanding demand . ERP systems treat demand forecasts as external inputs but fail to resolve often-divergent sales projections of marketing, operations and sales management. Production plans driven by inaccurate forecasts can result in dramatic shortages and overages.

Control -- without intelligence . ERP systems let companies institute radical business process change. But they make dumb decisions. For instance, MRP schedules material requirements based on the assumption of unlimited plant capacity. The result is inventory excess or shortfalls at each stage in the process.

Span -- without alignment. Integrated ERP packages let a company tie together multiple plants and distribution facilities from an organizational and inventory perspective. But ERP can't view plants as substitutes for one another, even if they make the same product. So leveraging resources across plants and distribution facilities is a manual process.

As for flexibility, almost all ERP suites were designed to operate in an over-the-wall fashion. Such stovepipe logistics can't adequately react to changes in customer demand.

Moreover, at each handoff between applications, increased uncertainty leads to overstocked inventories, longer wait time and slower response. And things will get worse as the Internet economy drives a business revolution that Forrester Research, Inc. calls dynamic trade the satisfaction of current demand with custom response.

In a dynamic trade environment, the following things happen:

Services eclipse products. Companies use services such as vendor-managed inventory and direct store delivery; that requires on-the-fly business process change.

Demand drives production. Companies are moving to make-to-order and late-assembly strategies.

Price matches market conditions. Businesses reduce inventory to maximize profits in commodity or supply-driven markets.

The key to dynamic trade is agility. And that's where ERP stumbles.

So what should you do with ERP suites? Buy them if you need them, but only if they deliver known business value, such as collecting information needed for dynamic trade or fixing year 2000 and euro problems.

Otherwise, turn outward: Deploy extended supply-chain, Internet commerce and customer management solutions to position yourself for the world of dynamic trade. And to do any of that correctly, you must adopt a component application strategy, buying solutions from multiple suppliers. But that's another conversation .

MMM aims

Most Manufacturers Can Benefit

Every manufacturing operation, regardless of size, complexity and type of product, could benefit in some way. The manufacturing process becomes information driven and a stronger contributor both to overall productivity and to the financial viability of the company. In fact, all manufacturers already use some form of MMM concept, whether it be by Manual means , computer point solution or fully integrated system. They can also benefit from a shared data base model of all manufacturers inventory.

MMM is add on technique to integrated electronic data interchange between production machines and ERP system to

1) Provides a real-time look at manufacturing operations,

2) Makes it possible to integrate the real-time data with other information systems such as production planning and distributed control systems.

The potential benefits to a user are significant. When specific shop floor functions can be improved, the resulting benefits can have a positive impact on more fundamental corporate objectives such as increased market share, profitability and improved global competitiveness. will be created and the full import of the technology will become even clearer.

MMM makes it possible to achieve these goals. The immediate need, is to identify and define these benefits, quantify them where possible and translate them into general business benefits.

3.4-a Objectives

1. Low Capital Expenditures – This factor drives toward users that change systems in the plant more slowly than the technology evolves, PC-based architectures, and a thin-client architecture, in which application logic resides mostly on the server.

2. High Degree of Change – Data capture and archiving becomes important to track the rapid change in a plant. How much data to store actively versus put in an archive becomes a trade-off between operational analysis capabilities and storage and processing burdens.

3. Short Cycle Time – The speed at which products move through a plant also dictates how rapidly transactions must be processed to measure operational performance.

4. Functionality Flexibility – Because plants vary so widely, MES products will specialize based on which attributes they can handle, and how configurable they are One complicating factor is that a single plant may implement software from more than one provider – or use legacy systems for some portion of the MES functionality.

3.4-b MMM activities and methodology

MMM management methodology is a comprehensive, structured, top down phased approach by objectives. During the definition/study phase, checkpoints are established to provide for major and/or critical review by the pilot project prospect. and ESWWDS (at the end of each phase) which will allows a smooth transition into the next phase.

A major part of the overall project management activity is the evaluation/study and technical definition of services required. During this evaluation and definition phase each service is broken into tasks and input to the detailed implementation plan. ESWWDS defines the work and resources needed for meeting and providing the technical services. Each task will have an objective(s) and/or milestone(s) assigned, if critical. In most cases the technical service requested should have several tasks noted on the detailed implementation plan for tracking to ensure successful completion of the service. Each task is assigned a priority, time frame, resource, and a schedule slot from which the project manager will coordinate the work that is to be performed.

Using the phased approach permits effective management control over the major investment normally associated with systems acquisitions, implementation, training and support. During the course of each phase, progress meetings with Prospect s management ensure that the project activities are consistent with Prospect objectives. Major review(s) by Prospect and ESWWDS at the end of each phase makes possible the successful move into the next phase.

A prime benefits of having a small number of major check points is that they will help Prospect and ESWWDS to focus their attention on key items at the appropriate times so proper resources can be applied as needed to assure successful implementation and operations. The structured approach, summarized the planning, implementation, training, support and create documentation that are effective aids for communicating to management the magnitude of the work to be performed.

The Major Implementation Activities are :

q Pre Implementation Tasks

o Prospect selection and requirements study

o Initiate Project Setup

o Hardware and Operating System Setup (Server, Workstation and Network)

o MMM Parameters Installation

o System / Application Management Initiated

o Prospect Informed

o Concept Training for Prospect trainers

o Defining and Documenting the Business Process of Prospect

o Facilities for Implementation

o Project Plan Finalized and Approved

q Implementation Tasks

q Maping

o Simulate Documented Business Process in MMM

o High Priority Customisations Specified / Initiated

o High Priority Data Collection Defined

o High Priority Data Collection / Entry Initiated

q Piloting

o Advanced Prospect Trainers Training

o Simulated Business Process Acceptance

o Data Entry Plan Defined

o Plan for data collection interfacing with external packages, if any

o System / Application Management Finalized

o Cut over Procedure Defined

o Simulate Data Entry flow

o Implementation Signed Off

q Post Implementation Task

o End User Training

o Cut over Procedure Initiated / Completed

o System Operational

o Successful Seminar for Prospect Owner

o Prospect arrange for a successful seminar for similar industries

3.5 Justification

3.5.A. Target groups with an estimate of the anticipated number of direct and indirect beneficiaries.

Textile industry as a first phase

Direct beneficiaries are Mahala Textile Industrial Town and other Textile manufacturers in Egypt as a first phase

The indirect beneficiaries are textile exporters

All other industries to be invited to implement the success story as other phases

3.5.B. Reasons for the selection of the target groups and activities.

Success in today's textiles industry dictates high-volume, make-to-order business models. Industry leaders need real-time - not historic - manufacturing information if they intend to improve order demand forecasting, utilization and first quality yield. Tracking and managing product across plants or locations produces accurate, and easily obtained product genealogy. It also means real-time insight to production process breakdowns, a key culprit of below-average utilization rates.

3.5.C. Relevance of the project to the target groups.

MMM will allow the user with following facilities :

· Material tracking

· Work instructions

· Manual data collection

· Reports

· Statical Process Control

· Performance analysis

· Material use

· Halt detection

· Supplies management

· Error detection

· Work in progress

· Process routing

· Automated data collection

· Equipment tracking

· Connection with:

· ERP

· SCADA

· Supplies management

· Maintenance Management

3.5.D. Relevance of the project to the objectives of IMC.

General objective	Specific focus
Industry and sector development	a. Sector development initiatives b. International competitiveness c. Industry standards setting

3.5.E. Relevance of the project to the priorities of IMC.

MMM will helps Textile economy in Egypt and provide export international competitiveness.

Because Egypt is nearer to European Union countries than Far East ,it can be a good chance to help MMM prospects to export to European Union countries

3.6 Mode of Cooperation

You are invited to share the cost of developing Egyptian Modern Model Generator Module, which will assist to produce local models per each industry for a minimum implementation time and cost.

4 - Declaration by the applicant

I, the undersigned, being the person responsible for the project, certify that the information given in this application is correct.

Name:………Sameer Saleh Mohamed Selim ………………………………

Position:………President…………………………………………………...