Philips - Financial

Philips - Financial
Operational efficiency & Customer compliancy
SAP ME at Philips Lighting
Marcel Triepels, IT architect Global Manufacturing
Philips IT Applications
March 2010
Contents
• Introduction to Philips
• MES at Philips Lighting Electronics
• SAP ME functionalities
• Proofpoints
2
Philips the business
3
A well-respected, blue-chip
company for over 100 years
Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales over EUR 23 billion (USD 32 billion)
30% in emerging economies
116,000 employees
Sales and service outlets in over 100 countries
Globally recognized brand (world top 50)
Our brand value almost doubled to $8.1bn since 2004
€1.6 billion investment in R&D, 7% of sales
55,000 patent rights – 33,000 registered trademarks –
49,000 design rights
4
Our health and well-being offer
is powered by three sectors
Healthcare
Consumer Lifestyle
Lighting
5
The power of Healthcare
Further strengthening our global leadership
Clinical care systems
Global market leadership for automated external defibrillators
Home healthcare solutions
No.1 provider of personal emergency response services in the US
Patient monitoring
Leadership position offering significant reduction in mortality and
length of stay in ICUs equipped with VISICU eICU
Imaging systems
Cardiovascular X-ray is no.1 in overall manufacturing satisfaction
Customer services
No.1 in service performance in patient monitoring systems
and ultrasound
6
The power of
Consumer Lifestyle
Focusing on differentiating leading businesses
Mother and childcare
Philips AVENT is market leader. Its feeding bottles have been
clinically proven to reduce colic*
*At 2 weeks of age, babies fed with the AVENT bottle experienced less colic than babies fed with a conventional bottle
Male electric shaving
No.1, with every second shaver in the world being a Philips shaver
Power toothbrushes
Philips Sonicare no.1 recommended power toothbrush brand
by dental professionals
Domestic appliances
Market leader: Over 20 million SENSEO appliances sold since
launch in 2001
TVs
Philips invented the successful ambilight flat TV concept
7
The power of Lighting
Further strengthening our global leadership
Lamps
Market leader: 1 out of every 4 lamps used worldwide is a
Philips lamp
Professional luminaires
No.1 lighting 65% of world’s top airports and 30% of offices,
hospitals and landmarks
Consumer luminaires
Market leader and front runner in driving the switch to energy
efficient lighting
LED applications
Strong presence across the complete solid state lighting chain
Automotive lighting
Leads the market, with one-in-three cars worldwide using Philips
automotive lighting
8
MES Intro: Plant standardization
and IT enablers
Basis for multisite MES deployments
9
Business drivers
For (Global) MES
• Operational performance improvement
– Yield improvement
– Non conformance tracking and resolution
– Inventory and capacity optimization
– Accelerated New Product Introduction
• (Customer) compliance
– Quality & process controls (Zero defects)
– Traceability
• Technology
– Real time info (response times < 1 sec)
– Archiving (QS-9000: 10 year)
– Leverage of IT investments
10
IT enablers
For (Global) MES
• Standardized (out-of-the-box) software components
– Rapid deployment of template solution options
– Distribute central controlled code versions across decentralized architecture
• Web technology
– Web GUI providing access to a vast user community
– Thin clients/ 3-tier architecture
• (Hosted deployments)
– lower upfront capital requirements/ Web Technology
11
MES deployment
More than IT…
Product Data Management & Engineering Change Management
Manufacturing Execution Systems
Manufacturing Process
Management
Component
Lifecycle Mgt
Marketing
Component
Management &
Development
Product
Data
Management
Process
Engineering
Manufacturing
Preparation
Manufacturing
Execution
Packing &
Shipment
Customer
ERP
12
Organizing for improvement
Logical landscape
What ?
• Material
• BOM
• Material
• BOM
• Production Order
• Material Qty
• Component Qty
• Work Center
How ?
When ?
• Order Status
• Yield Confirmation
• Scrap Confirmations
• Labor Confirmation
• Component Consumption
• Routing
• Parameters
13
Operational performance
WIP tracking & validation
14
Order release
Initial validation
PLM
(UGS
MetaLeg)
MPM
(Cimbridge
CadMaps)
ERP
(SAP)
Creating/Releasing Shoporders
MES (SAP ME)
Data export
to MES:
•Example:
Parent Product Id (Finished product)
•DemandBill
Ofproducts;
Material
for 400
-Components (Assigned to a process step)
Translating into 400 / 4 = 100 unique Multiboard labels (SFC
-Reference Designators
numbers).
•
•
•
•
Singleboard’s
Router
Quantity (# products to be manufactured)
Lot size of multiboard
2
3
4
……. 1
= Scanners
15
Step 1
Labeling/ lasering
At the first process every
PCB will be labeled with a
unique serial number
generated by SAP ME
1
2
3
4
= Scanners
Automatic
assembly
Manual
assembly
Test &
repair
Packaging
16
Next steps
scanning and validation
Scan and validate product against
correct process with expected
conditions!
The product (PCB) will be stopped
incase of a failure!
1
2
3
4
= Scanners
Automatic
assembly
Manual
assembly
Test &
repair
Packaging
17
WIP tracking by shoporder
Shop floor visibility
18
Operational performance
Non Conformance & resolution
19
User interface - repair
Real time feedback
Scanning (by operator):
Serialized product ID
Repair Hint!
Pareto based on
successful repairs
updated after a
successfully repair
Failure data:
Generated by
tester
Repair data: The
selection of reference
designators/ components
based on current BOM.
20
Reports
Pareto
Daily/weekly/monthly Process Yield
21
Scrap registered by process/operation
Data accuracy
Repair
Label cell
Process
step 2
Scrap
(Multiboard)
Process
step 3
Scrap
(Multiboard)
Process
step 4
Inline
Tester
Scrap
Scrap
(Multiboard)
Process
step 5
Final
Tester
100%
Check
Done
Scrap
(Location)
Scrap
22
Quality & Customer compliance
Realtime (SPC) and historical
(Cp/ Cpk)
23
Realtime (SPC)
Define process controls
24
Historical (Cp/ Cpk)
25
Quality & Customer compliance
Traceability & genealogy
26
Traceability
Raw material
supplier
Tracing
Upstream
supplier
Supplier
Warehouse
Carrier
Distribution
platform
Point of Sale
Retraces the journey, events & conditions ….
Trace back from consumer unit to
raw material
Tracking
Supports logistic control….
Track from raw material to
consumer unit
27
Link management
Type of links
MES
ERP
Components to
Product ID
(Multiboard)
Product ID to
shoporder
Parent and child
Multiboard to
single board
1
2
3
1
2
3
1
2
3
4
55
6
4
55
6
4
5
6
Child and BoxID
BoxID and PalletID
PalletID and Customer
(shipping doc/ order)
Consumed
• Material
• Components
• Recepi
Operator ID
Equipment
Workinstructions
Process settings
28
Tracing (backward traceability)
Genealogy
29
Tracking (forward traceability)
Where used
30
Proofpoints; value contribution,
lessons learned, opportunities
31
Where did we come from….
Quality
Manufacturing
Management
Trend
analysis
PPM
Logistics
Engineering
PPM
Different
calculations
Cp/
Cpk
SPC
PPM
Yield
Various
Data Flows
ToolLack
A
ofTool B
Uniformity
Process
Quality
Data
Process
Quality
Data
Through Surface
Hole
Mount
Tool C
Tool D
Tool E
Tool F
Process
Quality
Data
Process
Quality
Data
Tool G
Tool H
Tool I
Multiple tools
Process
Quality
Data
Process
Quality
Data
Manual Input
Manual
Touch
Soldering
Assembly
up
Test &
Repair
Not Real-Time
Process
Process
Quality
Data
Quality
Data
Burn-in
Coating
Process
Quality
Data
Light-up
Packing
32
Where we are now
Quality
Manufacturing
Work In
Process
Development
Logistics
Engineering
Production
Metrics
Statistical
Process Control
Genealogy/
Traceability
Non
Conformance
SAP ME
Through Surface
Hole
Mount
Manual
Touch
Soldering
Assembly
up
Test &
Repair
Burn-in
Coating
Light-up
Packing
33
Cost savings
Real life examples
• Scrap reduction:
– From 1% to 0.5% ->50% reduction.
• First time yield:
2003: 94%
2004: 96%
2005: 97%
2006: >98%
34
Cost avoidance
Real life examples
• Improved customer service:
– Selective recall (backward/forward traceability).
– Reduction reaction-time complaints (Non Conformance tracking).
35
Lessons learned
• MES is more than IT…. Invest in people and processes!
• Processes
– Spend time on defining a realistic blueprint.
– Organize process governance.
• People
– Focus on Deployment and Change Management.
Edicts without well-defined goals usually fall on deaf ears.
– Involve users, encourage feedback early.
Create ownership and engagement.
• Multiple phase approach
• start with one production line, introduce functionality step-by-step.
36
Opportunities
• Improved reporting:
– Realtime
– Operational
– Trend
• Standardize interfaces:
– to ERP
– to equipment
37
Contacts
Michel Hovius, Business Process Manager
Philips Lighting
michel.hovius@philips.com
Marcel Triepels, IT architect
Philips IT Applications
marcel.triepels@philips.com
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