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Production IT at Chr. Hansen A/SDefine - manage - implement

Production IT at Chr. Hansen A/SDefine - manage - implement

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About Chr. Hansen A/S

Production IT in Chr. Hansen A/S

Solution landscape

Governance and MethodsGovernance and Methods

Implementation example

18 September 2013 SESAM #1042

CHR. HANSEN A/S


We are

A global supplier of bioscience based

ingredients to the food, health,

pharmaceutical and agricultural industries

We mainly produce cultures and dairy

enzymes, probiotics and natural colors

Our leading market positions stem from

innovative products and production

processes, long-term customer

relationships and intellectual property

4

Chr. Hansen scientists

Chr. Hansen in brief

Chr. Hansen HQ

Hørsholm, DenmarkFounded in 1874 in Copenhagen by Danish

pharmacist Christian D.A. Hansen

Listed on NASDAQ OMX Copenhagen

2011/12 turnover EUR 699 million

Organic growth ambitions of 7-9% annually

5

Approx. 2,450 employees

Chr. Hansen globally

Customers in approx. 140 countries

Production facilities on five continents

6

Subsidiaries and representative offices in 30 countries

Cultures & Enzymes Division

We develop and produce cultures, enzymes

and probiotics for the dairy industry in

particular

… and for the food industry in

general – e.g. for wine and meat

Our ingredients determine taste,

milk

7

Our ingredients determine taste,

appearance, nutritional value and health

benefits

We are the global market leader in dairy

ingredients

Actually… every other cheese in the world

contains our enzymes

We develop and produce natural colors for

the food industry

We focus on natural colors in:

Beverages

Confectionery

Natural ColorsDivision

Ice cream

Dairy and fruit preparations

Prepared Food

Our colors originate from natural sources

like berries, roots and seeds

We are global frontrunners in

encapsulation and stabilization techniques

natural color

8

We develop and produce products for

dietary supplements, pharmaceuticals,

infant formula and animal feed

Our key offering is probiotic cultures with

documented effect

For humans

Health & Nutrition Division

probiotic tablets

9

For humans

For animals

We believe in strong research and

documentation through clinical study

program trials

PRODUCTION IT IN CHR. HANSEN


Global StandardsUsing well proven industry standards and standard software packages to lower implementation

and maintenance cost and time, and to ensure robust solutions with low complexity.

CH PS aims to ensure Global Scalable and Efficient planning and production with yield

improvements, while increasing EBIT

The main focus for CH Production IT is to support this business aspiration, this is

achieved through:

and maintenance cost and time, and to ensure robust solutions with low complexity.

Optimisation, Quality & ComplianceSolutions must support optimisation of the production through lowering cost, increasing yield or

increasing quality thus enabling a more consistent production output.

Robust operationSecuring robust operation and maintenance of IT systems through well defined processes and

strong governance.


Production IT Focus area

Level 4(ERP)

Level 3(MES)

ManufacturingOperations Management

Dispatching, Detailed Production

Business LogisticsPlant Production Scheduling, Shipping,

Receiving, Inventory, etc

Level 0

Level 1

Level 2

(MES)Dispatching, Detailed Production

Scheduling, Production Tracking, ...

The production processes

BatchProductionControl

DiscreteProductionControl

ContinuousProductionControl


Production IT main delivery Areas

PIT provides IT services bridging the gap between business and production

OperationProjects

Keep the IT systems running,

provide end user support,

service requests, system

governance according to

procedures.

Operation

Consultancy

Projects

Provide consultancy on ad-

hoc tasks, typically decision

support, evaluating project

ideas, minor tasks within

costumer projects, strategy

and process development

Participating in

projects, doing system

enhancements,

introducing new systems

or services.


SOLUTION LANDSCAPE

18.09.2013 SESAM #10414

Main processes

Fermentation

18.09.2013 Production IT Strategy FY 2013, Method and approach15

Packaging

Business processes and IT mapped

2.2 Batch

Execution

1.1 Demand

1.2 Global

capacity

planning

2.1

Production

Preparations

2.1

Production

Preparations

1.4

Production

scheduling

1.3

Production

planning

2.2 Batch

Execution

1.4

Production

scheduling

2.3 Batch

2.2 Batch

Execution

18.09.2013 Production IT Strategy FY 2013, Method and approach16

3.4 Batch

Release3.4 Batch

Release

3.1

Receiving

Sample

4.2

Prioritization

and Analysis

4.5 Process/

Product

development

SAP R3

3.3

Evaluation

4.1

Production

follow-up

4.4 Trial

Management

MES Scheduler

3.2 QC

Analysis

4.1

Production

follow-up

Batch Manager

4.3 Global

Control and

Coordination

review

WW Operations

3.3

Evaluation

LIMS4.4 Trial

Management

Workflow mgt.

Overview and

evaluation screen

APO

SAP APO LIMS

IBS

BO

GlobalGlobal

Local

WW

EMI

WW WW

LocalLocal

Holds orders and

material data

Plan production

sequense (optional)

Holds lab and

sample data Report

builder

BizTalk / B2MML Interface

Holds time series

recorded during

production

Data warehouse

for production

data

label HistorianPerformance Operation

Gathers and calculates

production performance data

(optional)

Prints product

and sample labelsBatchML

Interface

WW

InBatch

Holds product specific

recipe parameters,

builds and downloads

recipes

Executes production

according to recipes,

main operator interface


GOVERNANCE AND METHODS


Application lifecycle

EvaluateEvaluate ImplementImplement ConsolidateConsolidate MatureMature PhasePhase outout RetiredRetired

Project Archived

Strategic portfolio Legacy systems

Operation & mainteance

Application is

evaluated for ”fit

for purpose” and

business benefits

Application is

developed, tested

and deployed into

production

Bugs and child

diseases are

eliminated

Application is

realising the

planned business

benefit

Application is no

longer adequate

for the business

and is therefore

being phased out

Application is no

longer running in

production, source

code data and

documentation is

archived


Production IT Portfolio

EvaluateEvaluate

Deviation Deviation handlinghandling

KPI KPI dashboarddashboard

ProductionProduction

ImplementImplement

HistorianHistorian

OEEOEE

ProductionProductionpreperationpreperation

Strategic portfolioStrategic portfolio

OMPOMP

RecipeRecipe managermanager

SchedulingScheduling tooltool

MES/MOMMES/MOM

Legacy systemsLegacy systems

CheopsCheops

NN--MESMES

ABOABO

Check PlannerCheck Planner

Consolidate

The strategic Production IT portfolio needs to support all business processes

ProductionProductionOverviewOverview

Future:Future:

Asset Asset mgmtmgmt..Power Power mgmtmgmt..

preperationpreperation MES/MOMMES/MOM

LIMSLIMS

EMI / BOEMI / BO

IBSIBS

Check PlannerCheck Planner

Consolidate

Mature


MethodApply Portfolio•Define current best

practices on key production

processes

Portfolio•Strengthen operational

governance

•Define application strategies

•Develop Portfolio

Implement Portfolio•Define IT roadmap and strategy

for main sites


IT Portfolio

Clear Governance

Application strategies

Well defined IT Processes

Robust Support

Vendor management

Knowledge managementKnowledge management


Apply IT Portfolio

Consolidate current best practices for production IT in key production processes:

Fermentation

Freeze drying

Pack (x2)


Implement IT Portfolio

Site / production line:

As-is assesment

To-be definition

upgrade roadmap

Target is enterprise "best practice"

Plant 5

Plant 1

Plant 3

Plant 4

Plant 2


Cooperation

Business processes changes

PITPITBusinessBusinessunitunit

Technology changes

PITPITunitunit


Not just IT


Source: MESA White Paper 38 - Transforming Manufacturing Maturity with ISA-95 Methods Feb 09 10

IMPLEMENTATION EXAMPLE


Looking into the As-Is picture


Roadmap projects”Sorted”

1. Sample labels from LIMS & BO with sample ID and barcode2. Overview in LIMS (Explorer View (set up) & new BO reports)3. Environmental sample program in LIMS4. Historian set up repair � Historian toolbox5. SAP APO (G-Pack)

Green: Functionality alreadyimplemented elsewhereBlue: Easy to implement / only small changes to adapt to local setupBlack: More complex implementation

5. SAP APO (G-Pack)6. MES in G-Pack7. Bulk labels from IBS8. Lab labels from IBS9. OEE for G-Pack10. Automatic batch data from ABB to Cheops/MES/EMI � BO11. Recipe SP from Cheops (or MES) to ABB12. SAP APO (Fermentation) � xls (- funct.) / MES & Preactor (same functionality)13. Nonconformities � IT14. Existing xls plan from OMP in BO (functionality?)


Stepwise implementation

Implement new functionality(minor steps)

Implementautomatedfunctionality(major steps)

Task 12 -13 and

Implementautomatedfunctionality(major steps) New integratedMES and Preactor

Areas: Plan, Prod, 1122

3344

55

Simplifyprocesses usingexisting IT functionality

Task 1-4Areas: Prod, QC and PTAAppl.: LIMS, BO, Labels

Implement new functionality(minor steps) and new functionalityfor G-pack

Task 5-10Areas: Sched, Prod, QC and PTAAppl.: APO, MES, IBS, BO, Labels

functionality(minor steps)

Task 11 and new report modulesAreas: Prod and PTAAppl.: EMI/BO, ABB

Task 12 -13 and new Batch ManagerAreas: Plan, Prod, PTAAppl.: ABB BM, APO, Workflow

Areas: Plan, Prod, PTA Appl.: MES, Preactor

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Production IT implementation overviewFuture roadmap 2012

2016 - 2017

Future

State

2012-13

People

2014 2015


Capex Initiative Small Capex Initiative

Process

Current

State

Technology

Activity

Production IT parameters

IT Expert Business Expert

Automated Manual

Competences

Process

Business Process

18.09.2013 SESAM #10432

What is the right mix and what are the drivers for this…?

Harmonized Differentiated

Standard Bespoke

Business Process

Software

QUESTIONS

18.09.2013 SESAM #10433

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