“Global MES in Food & Beverage
New Trends, New Opportunities, New Approaches & Successes”
ARC Twelfth India Forum, Bangalore 10-11 July, 2014
Industry in Transition: The Information Driven Enterprise in a
Connected World
Narasimha B T
Senior Director
Photograph
of Speaker
Schneider Electric
Narasimha.bt@schneider-electric.com
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Agenda
Global food and beverage companies are
shifting their Manufacturing IT focus from
within the four walls of the plant to across the
plant network. This trend calls for a different
approach to engaging, developing and
coordinating on these enterprise-wide
initiatives.
In this session, we share our experiences and
the methodology we have adopted.
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“What is Different ?”
Single Site
(what’s
typical)
Multi-Site
(what’s different)
Trends & Triggers
Why are companies doing these
initiatives?
Value & ROI
How are they looking to justify the
investment?
Stakeholders
Who is involved in the evaluation &
decision process?
Software & Technology
What are (or should) they be looking for?
Deployment & Support
How do you manage the delivery and
transformation?
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Multi-site reshapes the
MES conversation
Manufacturing Execution System vs.
Manufacturing Execution Standards
Standardization is not a business goal – it is a means to an end. The
goal of business is to make a profit.
In F&B, variety is necessary. But variety (or variability) also creates
waste and inhibits velocity, and thus standardization is about
separating necessary variety from unnecessary variety to maximize
profit.”
- Continuous Improvement Leader
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It (always) starts with
the customer
Customer influence

Product portfolio

Asset portfolio
More choices…
All taste is local…
Preferences change…
(Nestle: 33% of portfolio
introduced/ renovated
in the last 3 years)
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Impact of M & A
Customer influence

Product portfolio
Nestle acquisition
2012
Acquisition of Pfizer Nutrition
Beverage Partners Worldwide JV
2011
Partnership with Hsu Fu Chi in China
SKU variety…
(candy)
Partnership with Yinlu (food)
2007
2006
Asset portfolio
Financial Entity
Consumer Brands
Year
2010

Brand promise…
Acquisition of dog snacks
Entry into clinical nutrition products
Kraft Foods frozen pizza business
Partnership with Pierre Marcolini
(chocolate)
Acquisition of Henniez (bottled water)
Acquisition of RKF in Russia (candy)
Acquisition of Gerber
Acquisition of Novartis Medical
Nutrition
Partnership with Barry Callebaut (bulk
chocolate)
Investment in brain research with EPFL
BPW JV to refocus on black tea
Acquisition of Jenny Craig
Acquisition of Uncle Toby’s in Australia
Acquisition of Dreyers
SKUs
Recipes
Procured Items
Equipment diversity…
Core Processes
Plants
Lines
Plant-level Recipes
Unique Equipment
Controllers/Sensors
I/O points
Ernst & Young Consumer Products (M&A) Deals Quarterly, Issue 15, Q2 2013
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Connecting the dots
between functional silos
Different stakeholders
R&D:
• Product variety
• First-time quality
C-Suite:
• Margins
• Market Share
Lean/Six Sigma/CI:
• Waste Reduction
• Cycle Times
Supply Chain:
• Inventory velocity
• Service levels
Manufacturing:
• Throughput
• Utilization
Different triggers & agendas
Corporate IT:
• Standards
• Security
Many KPIs are
interdependent with
Manufacturing
Engineering:
• Equipment
Uptime
• Energy Use
Marketing
• Brand Loyalty
• Promotions
Procurement
• Master
Agreement
• Compliance
Finance
• Budgeting
Growth
/ M&A
Supply
Chain
velocity
Margin
pressure
Multi-site MES
(Global
Standards)
Standards
maturity
Limited
Visibility
Shadow
IT
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Connecting MES
to strategic value
Stakeholders [ Customers, Investors, Employees ]
Business
Goals
Supply Chain
Goals
Manufacturing
Goals / Initiatives
Manufacturing
IT Platform
Market share
Margins
Agility
“Making & keeping
the right brand
promise…”
“Continuously
taking waste out of
the system”
“Seizing
opportunities &
managing risk…”






Right
Right
Right
Right
Right
Right
Product
Customer
Location
Quality
Quantity
Time
 Quality/Genealogy
 Product Mix
(Variety)
 On-Time Delivery
 Reliability/Maintena
nce
Contextualize
Processes
Structure (M&A)
Innovation
Culture
Technology
 Right Cost
 Right Partners




 Waste reduction /
CI
 Standard processes
 Cycle Times
(Velocity)
 Compliance
 Hardware-agnostic
 PLM-to-MES
integration
 Empowering the
frontline
 Open &
Interoperable
[ MES]
Capture & Control [ HMI/SCADA ]
& Response
Multiple options to
build a business case
that is strategic.
Optimize Manufacturing
Real-Time Sense
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Telling the (F&B) story…
Brand
Promise
Operational Challenges
Right
Customer
• Rising customer influence
• Changing tastes & preferences
Right Product
• More choices, more SKUs
• More product innovation
Right Quality
• Raw material variability
• Regulatory compliance
Right
Quantity
• Smaller batch sizes
• Frequent changeovers
Right Time
• Frequent replenishment / freshness
• Supply chain (production) velocity
Right Location
• M&A (right growth markets)
• More DSD networks
Right Price
(Cost)
• Higher utilization
• Very little room for errors
Is product moving faster than information on your factory floor?
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“Thinking big.
Thinking different.”
Single Site
(what’s
typical)
Multi-Site
(what’s different)
Trends & Triggers
Why are companies doing these
initiatives?
Value & ROI
• How are they prioritizing product portfolio &
regional initiatives for growth & profitability?
How are they looking to justify the
investment?
• Are there other considerations they have not fully
thought through that strengthens our value
proposition?
Stakeholders
• Who are the various stakeholders outside the
plant who stand to benefit – directly or indirectly?
Who is involved in the evaluation &
decision process?
Software & Technology
What are (or should) they be looking
for?
Deployment & Support
How do you manage the delivery and
transformation?
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It requires a process
perspective
[Example: Brewery]
LEVEL FUNCTIONAL REQUIREMENTS
FERMENTATI
BREWING
Enterprise Integration (ERP,
PLM, etc.)






Wonderware Enterprise
Integrator/SCC
Advanced Analytics/BI






Wonderware Intelligence
Plant-level Reporting &
Visibility






Wonderware Information Server
Paperless Operations (People)






Wonderware Workflow
Order Execution/Track & Trace










Avantis CM





Wonderware MES/Performance



Wonderware IntelaTrac



ON
FINISHING
FILL/PAC
MALTING
KING
UTILITIES
ENABLED BY PRODUCT
ERP & Supply Chain Apps
L4
L3
Asset Condition Monitoring
Asset Optimization/OEE

Mobile Asset Management
Batch Process
Management/Genealogy
L2
Wonderware InBatch
Quality Management






Wonderware Quality
Utilities Management






Wonderware CEM
Supervisory Control






Historian






HMI






DCS/PLC
L1
Wonderware MES/Operations
Process Equipment
Wonderware System Platform
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Client Perspective:
Success Factors of Multi-site
Executive
Sponsorship
Program Organization
& Planning
Clear
Strategy
Bus. Drivers-based
Scope & Requirements
Business + Operational
Alignment
Rational/Achievable
Timelines
Strategy &
Structure
Operational
Champion
Comm. & Stakeholder
Management
People
Customer
Readiness
MES
Center of
Excellence
Program
Governance
Process
Technology
Bus. Process Alignment
& Improvements
Infrastructure
Readiness
Solution Lifecycle
Mgmt. & Governance
How do you perceive the MES vendor ?
Partner in transformation journey vs. technology vendor?
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MES vendor perspective:
Articulating value proposition
Enabling Multi-site MES at Global F&B Company
(through higher value, faster ROI, and lower risk)
Thought
Leadership
Integration
Strategy
Local Presence
Client
Success
Multi-site
Scalability
Proven Project
Execution
Methodology
Beverage
Expertise
Platform
Maturity
“Glocal”
Implementation
RIGHT
EXPERTISE
RIGHT
PRODUCT
RIGHT
SERVICES
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How are clients selecting
MES vendors ?
Engage
Develop
Propose
Close
Consultative approach + Cumulative industry experience
Listening from the
customer point-of-view
Designing a solution
(products + services)
Built on a differentiated
value proposition
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“Thinking big.
Thinking different.”
Single Site
(what’s typical)
Trends & Triggers
Why are companies doing these initiatives?
Value & ROI
How are they looking to justify the
investment?
Stakeholders
Who is involved in the evaluation & decision
process?
Software & Technology
What are (or should) they be looking for?
Deployment & Support
How do you manage the delivery and
transformation?
Multi-Site
(what’s different)
• How are they prioritizing product portfolio &
regional initiatives for growth & profitability?
• Are there other considerations they have not fully
thought through that strengthens value
proposition?
• Who are the various stakeholders outside the plant
who stand to benefit – directly or indirectly?
• What are the lifecycle / TCO considerations like
reusability and maintenance that must be designed
up front?
• What is required beyond delivering a project – and
being able to manage a global transformation
program?
• How can clients leverage a global pool of talent
and resources but still get a single point of
accountability?
• How do you structure support?
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Global Food & Beverage clients
who are actively shaping this vision
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“State-of-the-art”
Full MES Suite
Expansion
(Lines 3-10?)
Phased & sustainable
path to manufacturing
execution standards
Reusability at
Other sites
Limited
scope
Functionality
For multi-site MES
standardization to succeed,
the economics have to work…
Single site
FOR EACH SITE ADDED
TO MES ROLLOUT…
Incremental cost to
deploy declines…
…while cumulative
value increases!
Site #1
#2
#3
#4
#5
#6
#7
…
Multi-site/plant portfolio
Scalability
…and we have proven
it can be done!
• 10+ projects in Europe, Asia, and Latin
America
• 11 core MES processes being
standardized
• 50+ sites already completed including
SI deployments
• Dedicated Program Team via Center of
Excellence
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Extracting the maximum
captive value.
What to improve
Energy & Water Use
Effectiveness
Filling & Packaging
Area Efficiency
What to measure
What results to
expect
Electricity (intensity)
10-25% reduction
Water (intensity)
10-15% reduction
Fossil Fuel
10-20% reduction
Chemicals Waste
5-15% reduction
Line Efficiency
Sugar (HFCS) Waste
Material Losses from Finished Syrup
Waste
Receiving to Final
Packaging
CO2 Waste
Bottle Waste
Labor Cost
Reduction
Production Line
Labor
Warehouse Labor
10% increase
Who has done it
• Baltika Breweries
(Carlsberg)
• Coca Cola Swaziland
• Princes Foods
• Pepsi Bottling Ventures
• Baltika Beverages
10-25% reduction
10-25% reduction
• New Belgium Breweries
10-25% reduction
10-15% reduction
30-50% increase in
labor efficiency
• Princes Foods
• New Belgium Breweries
Indirect Labor
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Thank You
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