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1999 PI System Users’ Conference Monterey, California

POLIMERI EUROPA. AN ENICHEM | UNION CARBIDE VENTURE. SYNAPSIS. 1999 PI System Users’ Conference Monterey, California. Taking SAP to the Factory Floor an Italian Experience Ing. Carlo Volpones, POLIMERI EUROPA Sig. Roberto Spoladore, SYNAPSIS. Agenda. Company Profile Program Opera

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1999 PI System Users’ Conference Monterey, California

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  1. POLIMERI EUROPA AN ENICHEM | UNION CARBIDE VENTURE SYNAPSIS 1999 PI System Users’ ConferenceMonterey, California

  2. Taking SAP to the Factory Floor an Italian ExperienceIng. Carlo Volpones, POLIMERI EUROPA Sig. Roberto Spoladore, SYNAPSIS

  3. Agenda • Company Profile • Program Opera • Management and Technology Challenge • Company Key Decisions • Implementation Partners • Manufacturing Implementation • Implementation Design • Conclusion

  4. Company Profile

  5. Polimeri Europa s.r.l. • Formed in April, 1995, Polimeri Europa is a 50:50 Enichem/Union Carbide venture for the development, production, marketing, and sale of polyethylene and olefins in the European market. • Year 1998 • Sales Revenue 1.6 Billion USD • Total Capacity 1,600 Polyethylene kty • 700 Ethylene kty • Employees 1,571

  6. Polimeri Europa Principal Manufacturing Facilities Oberhausen Dunkerque Eschborn Milan Ferrara Brindisi Priolo Gela Ragusa

  7. Brindisi UNIPOLâ Project to take maximum advantage of the product and process capabilities of UNIPOLâ technology Program Opera to achieve a substantial business performance improvement through investment in: IT architecture and application Organization / work process redesign People (skills and training) Key Investments for the Polimeri Europa Joint-Venture

  8. Brindisi Project • Start date 1st January 1995 • Completion date 1st September 1997 • Technology UCC Gas Phase • Total capacity 400 Polyethylene kty • Production lines 2 lines • Type of products LLDPE-HDPE • Customer satisfaction High Level of Acceptance • First company implementation of OSI PI3 RTDB system

  9. O a r

  10. Why The Word “OPERA”? • OperaIt’s an Italian word known in all the world. • Opera It belongs to the musical language and reminds “harmony”. • Opera This word expresses the idea of “working group”. • Each Opera is one and only.

  11. Program Opera Objectives • Create Business Value by: • improve customer service • improve efficiency and effectiveness of company operations • improve flexibility and response time to satisfy emerging business needs • Using a Program Approach that incorporates: • business process redesign • implementation of a core information system (SAP) and integrated scientific systems (RTDB) • training and personnel development

  12. Germany France Italy Program Scope • Process • Geography • Application Solution • SAP R/3 Standard vers. 3.1 • FI EIS QM CO/CCA PS PM • TR HR WM AA SD SD SHP • IM MM PP-PI LC • Scientific Systems and • Niche Applications • RTDB • LIMS • SCM • Transportation Executive Balance Supply & Demand Fulfill Demand Service Customer Create Demand Business Infrastructure

  13. Management and Technology Challenge

  14. Management Challenge Assessment of Current Situation (Starting Point Fall 1996) • Work Processes • Complex, Not Well Integrated Across Functions Or Locations. • Real Time Information Not Available For Rapid Decision Making. • Require High Levels Of Personal Experience. • Require Significant Duplication Of Effort And Reentry Of Data.

  15. Technology Challenge Assessment of Current Situation (Starting Point Fall 1996) • Systems • Slow Response Time and Some Information Not Accurate or Up to Date. • Little Integration of Applications Between Plant Sites and French and • German Affiliates. • Very Difficult to Modify Applications to Meet Emerging New Needs. • Limited Access and Experience with Process Control and Data • Collection Applications.

  16. Company Key Decisions

  17. Company Key Decisions • Implement common work processes throughout Polimeri Europa. • Utilize integrated business software (SAP) installed without modifications (standard). • Use of a Managing General Contractor (Ernst & Young) to deliver project results. • Implement the project as rapidly as possible to minimize business risk. • Use standard scientific applications at all sites with certified SAP interfaces.

  18. Public Network Polimeri WAN IT Company Infrastructure Milan Head Office • Router Eschborn Dunkerque Ragusa Ferrara Brindisi Gela Priolo

  19. Head office Local offices Customer Stock ProfitCenter Company code Transportorder Message/EventHandler Warehouses Material Factories Productionorder Business Integration Using New Applications Distribution centers Distribution Centers

  20. Definition of Operations Work Processes Process Technology and Engineering Maintenance HS&E Manufacturing Maintenance HS&E Manufacturing Manufacturing Sub Processes Sub Processes Sub Processes Sub Processes • Environmental Plan & Schedule Maintenance Activities • Plant line • schedules • Production • Quality Control • Process Engineering • Technology • Development • Engineering • Compliance Process Safety • • Execute Maintenance Activites • Product Safety Personnel Safety • Maintenance Engineering •

  21. Implementation Partners

  22. Implementation Partners Hewlett Packard Hardware and system software • Polimeri Europa • Head office • 7 plants • many warehouses (MGC) (Synapsis) OSI SOFTWARE (Synapsis ) RTDB Ernst & Young Managing General Contractor

  23. Manufacturing Implementation

  24. Polimeri Europa Plant Overview • Fully integrated plant facilities located at Brindisi and Dunkerque that manufacture both ethylene and polyethylene. • Other PE sites (Ferrara, Gela, Ragusa, and Priolo) manufacture only polyethylene from purchased raw materials. • Plants are generally round the clock continuous and batch operations. • Finished product is packaged and sold to customers in batches.

  25. No duplication of SAP - scientific system data input activities in the Control Room during normal shift operations. Warehouse inventory data must be available real time and updated automatically. Production Planning is compiled at headquarters with detail execution at the plants. Plant operators have one and only one interface for data input. Standard solution through the different DCS vendors. Overall Considerations for the Implementation

  26. Controlling and financial modules for business decision making. Manufacturing quality and material management modules for plant operations. SAP MM and WM for plant material acquisition and movements SAP PP-PI for production planning and production order tracking SAP QM for quality management of raw material, packaging, and finished product SAP CO and FI for product cost and campaign control SAP Modules Utilized for theIntegrated Manufacturing Solution

  27. In SAP plants are modeled as batch units. For costing purposes, batches of finished product are aggregated into production campaigns. A plant production campaign is represented in SAP as a Production Order. Plants are represented in a simplified form in SAP as macro operations. A plant production cycle is divided in logical SAP Phases. SAP Configuration Design Parameters

  28. Framework Used in Developing the Integrated Manufacturing Solution Model • Production managed as campaigns: production quantities calculated of materials consumed and resources utilized for each finished product. • Economic analysis (cost summaries, and efficiency analysis versus plan) by single campaign and by unit line (on a monthly basis). • Verification of material and resource availability relative to production orders.

  29. Framework Used in Developing the Integrated Manufacturing Solution Model (cont.) • Advancement of production interfaced with RTDB. • Available to Promise (ATP) updated in real time with planned transfers relative to production orders. • Raw material to finished product lot testing traceability. • Finished product lot to lot test traceability.

  30. Production Campaign Cost Reports Tracking Production Advancement Using RTDB - SAP Integrated Application Solution Information from RTDB : .) Finished lot Product to test. .) Quantity of Finished product transferred to Silos .) Quantity of Raw materials by lot consumed .) Quantity of Raw materials non lot consumed Phase Closure RTDB SAP PP-PI Finished Product lot to test transfers Consumption (actual and std.) raw material (by lot and non) WM SAP FI SAP MM QM Production Campaign Lot Traceability Reports

  31. Implementation Design

  32. SYNAPSIS Implementation Design - Components • PI 3.2 Real time data historian, Batch Monitor and totalizations • PS-RLINK PI system gateway to SAP R/3 • PP-PI module • PI-ProcessBook 2.0 Graphical representations and PIBatchView management of: - Process data (PI) - Process Order (SAP Recipe)

  33. Public Network Polimeri WAN SYNAPSIS Implementation Design - Infrastructure Milan Head Office SAP PI ProcessBook PI ProcessBook PI ProcessBook PLANT SUITE RLINK PI Home node SITE DCS

  34. SYNAPSIS Implementation Design - Model • Process Order Stored in Plant Suite Managed as a PI Batch Unit • with its own PI Tags • Phase Each phase is a PI Batch Unit • with its own PI Tags • Material(s) Each material is a PI Tag

  35. SYNAPSIS Implementation Design - Data Sources • Different data sources had to be used: • DCS Input Real time data collected by standard PI interfaces. • Manual entry Manul data to be entered by operator • Unmeasured (Standard) Data to be computed on the base of recipe standard

  36. SYNAPSIS Implementation Design - Data Sources solution • Different solutions have been implemented: • DCS Input Standard PI features such as : - Performance Equation - Totalizer • Manual entry A specific ProcessBook display has been developed using VBA • Unmeasured (Standard) A specific program has been developed and integrated using PS-RLINK standard features AS A RESULT: ALL IS IN PI SYSTEM

  37. BlenderA BlenderB Silos BlenderC BlenderD SYNAPSIS PRIOLO PLANT DETAIL Priolo Plant Priolo Units Reactor -> Duration Phase: ~ 4 hours -> By-product is moved to one Blender every phase confirmation Blender -> 4 Blenders -> Duration Phase: ~ 13 hours -> By-product is moved to ‘Silos’ Silos -> Not a real phase: Material transferred to Silos Reactor Unit Information -> Start and End Phase -> Material Quantity Consumed/ Produced -> Phase ID -> Recipe ID -> Phase confirmation Type (Partial/Finished)

  38. ORDER 1 order_pi_status order_sap_recipe 0 CRID1 phase_sap_status Partial Partial Start End Partial phase_sap_recipe phase_pi_status End/Start CRID1 End/Start Start CRID1 CRID1 CRID1 CRID1 End End/Start phase_lot_number L1 L2 L4 L3 TIME SYNAPSIS RESOURCE AND PHASE - ONE PROCESS ORDER MANY PHASES CONFIRMATIONS PHASE

  39. Blenders Details Reactor Details SYNAPSIS PB Display - Overall view

  40. SYNAPSIS PB Display - Reactor SAP Process Order Information PLANT_SUITE Process Information P I Viewing Lots in Reactor

  41. New Campaign Selection Window Lot Details Window SYNAPSIS PB Display - Reactor

  42. SYNAPSIS PB Display - Blender Process Information P I Moving Lot across Blender and Silo

  43. SAP Process Order Selection PLANT_SUITE Viewing lots in Silo (Selected Process Order) P I SYNAPSIS PB Display - Silos

  44. Conclusion

  45. SAP electronic connection to Italian banks. Use of SAP HR and TR modules. Third party facility management of client server environment. Integration of information systems from DCS through PI3 to SAP business reporting systems. PE Project Opera “First’s”

  46. SAP and PI3 are technology tools that provide significant productivity improvement opportunities on their own but are not the complete solution. The real breakthrough was the integration that came from committed and creative process sponsors and technologists who insisted on a seamless flow of information from the process unit to business management. The result of direct hands on end-user involvment made certain that an integrated solution eliminated duplication of data input and aimed at reduced overall operating costs. Closing Observations

  47. O a r

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