Power Tools 1993 November

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HP's OpenCIM Strategy: NewWave Computing for Manufacturers ********** OCIM01.GAL ********** ..picturea:\ocim\ocim01.GAL,65535,49151,1,43,13, This presentation will address how HP is meeting the needs of manufacturers, providing them with the means to improve their competitiveness. HP's OpenCIM Strategy --------------------- HP's strategy for providing cooperative computing for manufacturing companies is called OpenCIM. HP'S OPENCIM STRATEGY INTEGRATES ENTIRE MANUFACTURING PROCESS ------------------------------------------------------------- Hewlett-Packard's OpenCIM strategy -- HP's blueprint for delivering NewWave Computing into manufacturing -- is based on the realities facing manufacturers as they work to improve TIME-BASED COMPETITIVENESS. BUSINESS REALITIES ------------------ Manufacturing companies today operate in a competitive environment, one that will continue to challenge them throughout the 90s. Following are some of the issues these companies are facing: * Global Competition: Today, there is wide-ranging competition áááacross a broad range of products from competitors all over the áááworld. * Rapidly Changing Markets: Consumers today have become increasingly ááádemanding, causing companies to become more responsive and to áááchange their product offerings more frequently. * Shorter Product Life Cycle: Fast paced, unpredictable changes in áááconsumer markets affect product life cycles. Companies must create áááproducts in a shorter time frame, so they can get to "break even" ááámore quickly. * Increased Cost Pressures: Manufacturers need to continually reduce ááácosts company-wide in order to stay competitive. HP's OpenCIM STRATEGY --------------------- HP's worldwide leadership in open systems and industry standards, and its extensive commitment to manufacturing industries, have helped establish the foundation for the OpenCIM strategy. OpenCIM is so named because it is a combination of "open computing" and "CIM," computer integrated manufacturing. Open computing refers to the introduction of open, standards-based systems (like HP-UX) as well as the move to "open up" the information and power stored in proprietary systems like MPE. ááá"Too often our industry delivers open systems products that assume ááácustomers are starting from scratch in putting together their áááinformation systems... when in reality they're sitting on billions áááof dollars' worth of proprietary systems, software, and databases áááthey've already bought. So we need some bridge products to span áááthe gap between new and old. And instead of asking customers to ááácross the chasm with a leap of faith, we need to help them do it ááástep by step." ááááááááááááááááááááááááááááááááááJohn Young VISION FOR THE FUTURE --------------------- The OpenCIM strategy reflects HP's own investment priorities and strategy for the longterm. Since the mid 80s, HP has been developing the technologies, products, strategic alliances, and distribution channels that underpin open systems. But, practically speaking, OpenCIM is a vision that will be realized over time with steps and products that can be implemented today. As customers begin to update their operations and systems, HP will continue to provide tools that will enable them to bridge the gap between old and new. As we develop and test more and more tools and products, our customers will be ready and able to bring their systems to a higher level of integration. OPENCIM COVERS ALL ASPECTS OF IMPLEMENTATION -------------------------------------------- HP's OpenCIM solutions strategy covers all aspects of the CIM implementation process: from understanding customers business needs and information flow through solution selection, delivery, implementation, and ongoing worldwide support...with the solutions built on our open networked systems platforms and fitting into our industry-focused CIM architectures. Transition: You are looking for solutions that address specific issues in your industry... Note: Following are six industry-specific slides that address the key goals or trends in an industry. Goals in the Aerospace/Defense Industry ********** OCIM02.GAL ********** ..picturea:\ocim\ocim02.GAL,65535,49151,1,43,13, Business is not "as usual" in the Aerospace/Defense Industry. There are key issues that affect your daily business decisions: REDUCTIONS IN DEFENSE SPENDING ------------------------------ Win More Defense Contracts -- With the reductions in defense spending, competition for contracts is becoming more intense. QUALITY PRODUCTS & SERVICES A MUST ---------------------------------- Provide & Maintain High Quality Product and Services -- Your long-term viability depends on the quality of the product and services you produce. On-time delivery is a key quality metric. EXPLORING COMMERCIAL MARKETS ---------------------------- Develop Commercial Markets for Existing Products -- Many aerospace and defense manufacturers are accelerating their growth by finding and developing commercial markets for their products. FOCUS ON PROFITABILITY ----------------------- Increase Profitability -- As many contracts move to a fixed-price basis, improving manufacturing effectiveness is a vital element of improving your profitability. .PA Goals in the Electronics Industry *********** OCIM02A.GAL *********** ..picturea:\ocim\ocim02a.GAL,65535,49151,1,43,13, Business is not "as usual" in the Electronics Industry. There are key issues that affect your daily business decisions. CONSUMER DEMAND FOR MORE SPECIALIZED PRODUCTS --------------------------------------------- Introduce New Products Aggressively -- Consumer demand is driving the need for more specialized products. This demand has increased the number of products that need to be produced and thus increased the need for flexibility in your manufacturing. Product life cycles are continually being reduced. You must produce new products in faster time frames in order to stay competitive. SLOWER GROWTH RATE ------------------ Increase Revenue Growth -- The rapid growth of the electronics market in the 70s has slowed in the 80s and will continue to slow in the 90s. USING QUALITY AS A COMPETITIVE WEAPON ------------------------------------- Improve Quality of Products and Services -- All electronics companies must compete on quality. Everyone will say that they focus on quality. It is the company that can make the best combination of people, technology, and focus that will be able to use quality as an effective weapon. .PA Goals in the Automotive Industry ************ OCIM02B.GAL ************ ..picturea:\ocim\ocim02b.GAL,65535,49151,1,43,13, Business is not "as usual" in the Automotive Industry. There are key issues that affect your daily business decisions. TIME TO MARKET CRITICAL ----------------------- Introduce New Products and Components Faster -- Time to market is a critical issue for automotive companies and suppliers to the automotive industry. SUSTAIN/INCREASE MARKET SHARE ----------------------------- Ford Motor was the only U.S. auto company to increase U.S. market share in 1989. CUSTOMER SERVICE & RESPONSIVENESS CRITICAL ------------------------------------------ This is critical for both manufacturers (who must satisfy the dealers and end customers) as well as auto suppliers who are under severe pressure from the major auto manufacturers to meet certain performance criteria or lose their certification. IMPROVE PRODUCT/COMPONENT QUALITY --------------------------------- The Japanese auto companies have gained their position in the marketplace by competing on quality. The automotive suppliers who will be long-term players will be those who partner with the auto suppliers to provide the best quality components. .PA Trends in the Food Industry *********** OCIM02C.GAL *********** ..picturea:\ocim\ocim02c.GAL,65535,49151,1,43,13, Business is not "as usual" in the Food Industry. There are key issues that affect your daily business decisions. NEW PRODUCT PROLIFERATION ------------------------- Coke, Diet Coke, Caffeine Free Coke, Cherry Coke..., product proliferation is all around us. However, actual growth in the food industry is very low and shelf space is increasing slowly. MEGA-MERGERS ------------ There is rapid consolidation in the food and packaged goods industries. As companies merge there is an increased need for consolidation and standardization of information systems and manufacturing processes. GLOBALIZATION OF FOOD INDUSTRY ------------------------------ Companies must play the game on a worldwide basis. Many U.S.-based companies are looking for rapid growth from markets in Europe and the Far East. Companies who are not competing in the U.S. market are trying to get in. TRANSFER OF POWER FROM PRODUCERS TO TRADE ----------------------------------------- With the increased use of computer technologies at the point of sale, the trade now has the sales and trend information to increase their control over the producers. .PA Trends in the Pharmaceutical Industry *********** OCIM02D.GAL *********** ..picturea:\ocim\ocim02d.GAL,65535,49151,1,43,13, Business is not as usual in the Pharmaceutical Industry. There are key industry trends that affect your daily business decisions. REDUCED PRODUCT DEVELOPMENT CYCLES ---------------------------------- Time to market is critical in your industry. You can spend 100-200 million dollars to develop a new prescription drug. Patents only last 17 years and must be applied for during the development process. Reducing the development time and time to transfer new drugs from the lab into full production can add millions of dollars to your bottom line. FDA REGULATIONS --------------- There is an increased need to track and maintain information -- in order to meet FDA requirements and to continually improve your product quality and manufacturing processes. GROWTH OF GENERIC DRUGS ----------------------- The market share of generic drugs is increasing. Many of the existing patents for major drugs will expire over the next few years. These pressures are causing you to focus on reducing your product costs to stay competitive. INCREASED GLOBAL COMPETITION ---------------------------- Non-U.S. companies are increasing their attention on the U.S. marketplace for over the counter and prescription drugs. U.S. companies are looking to Europe and Asia for rapid growth. .PA Goals in the Specialty Chemical Industry ************ OCIM02E.GAL ************ ..picturea:\ocim\ocim02e.GAL,65535,49151,1,43,13, Business is not "as usual" in the Specialty Chemical Industry. There are key issues that affect your daily business decisions. LOWER PRODUCT COST ------------------ As more competitors enter your business you are pushed to stay cost competitive. EPA REGULATIONS CONFORMANCE --------------------------- In the U.S., EPA regulations are a fact of life and affect your manufacturing processes and costs. IMPROVE SERVICE LEVELS/IMPROVE PRODUCT QUALITY ---------------------------------------------- You cannot compete on cost alone. Providing superior service levels and continually improving your product quality keep you competitive. INCREASE PRODUCT PROLIFERATION ------------------------------ Competition is increasing to produce new products faster. More companies are entering the market of specialty chemicals with the hope of larger profits. .PA Managing the Integrated Business ************ OCIM03.GAL ************ ..picturea:\ocim\ocim03.GAL,65535,49151,1,43,13, Trends affecting your business are unique to your industry and the goals you have to stay competitive are unique to your company. However, success depends on integrating all of the functions in your company. Goal is Time-Based Competitiveness ---------------------------------- The pressure to bring new and better products to market is unrelenting. And, when needs change almost daily, companies have to move products out the door quickly to meet a brief window of opportunity. A key issue has emerged: time. Companies who focused on reducing costs in the 60s and improving quality in the 70s and 80s are now pursuing "time-based competitiveness," the ability to get ideas into action quickly and smoothly. Their goal is to squeeze time out of the production cycle, the design cycle, the shipping cycle, and every aspect of the business. The key to HP's leadership in manufacturing -- and to the success of our manufacturing customers -- is our recognition that cycle times must be reduced to produce a real competitive advantage. That's why the goal of HP's manufacturing strategy is to integrate information throughout the enterprise, from product development through production, distribution, sales, and delivery. But manufacturers have not always followed this path. Traditionally, corporations have segmented their overall business into specialized functional areas, such as manufacturing, marketing, and R&D. Regardless of what a company was trying to do in the bigger picture, each function tended to focus on its own narrow goals. For example, manufacturing tended to focus on reducing product cost, marketing on improving availability, research and development on features, and top management on quality. Because of the narrow focus, cross-functional communication was typically not given a high priority. Now, however, more and more of the best companies encourage each functional area to develop goals that are complementary to the overall business plan and which address all four areas -- cost, quality, availability, and features. But to do this, there must be improved communication, or sharing of information across functions, and with vendors and customers outside the company. Transition: HP's approach to managing the integrated business is a process. .PA HP's OpenCIM Strategy: An Ongoing Process ********** OCIM04.GAL ********** ..picturea:\ocim\ocim04.GAL,65535,49151,1,43,13, Implementing CIM is a process, not a set of software & computers. ---------------------------------------------------------------- The OpenCIM strategy is built around a process that has evolved out of many years of successful CIM implementations. This process parallels the process used in Total Quality Control (TQC) programs. The OpenCIM process includes seven key steps performed when developing a customer-specific solution -- as well as a feedback loop for continuous process improvement. Step 1. Understand the business needs and determine the critical áááááááááásuccess factors for the business. Step 2. Develop information architectures to map information flows ááááááááááto those critical success factors. Step 3. Match "Best-In-Class" applications to the information ááááááááááarchitectures. Step 4. Integrate applications and customize solutions through HP's ááááááááááNewWave Computing Platform and leading edge enabling áááááááááátechnologies. Step 5. Deliver and implement the solution. Step 6. Provide ongoing support. Step 7. Continually improve the system based on changing business ááááááááááneeds. .PA HP's OpenCIM Strategy Delivers a Competitive Advantage ------------------------------------------------------ In summary, HP's OpenCIM manufacturing solutions strategy is based on delivering a competitive advantage for you, the customer in every phase of your on-going CIM progression...DELIVERING ON THE PROMISE OF CIM. Each of the seven areas above is essential. And given that over 50 percent of HP's computer revenues come from manufacturing companies, HP will continue to invest and enhance each area. Transition: Let's examine each of these areas in more depth... .PA The Benefits Analysis ********** OCIM05.GAL ********** ..picturea:\ocim\ocim05.GAL,65535,49151,1,43,13, Step 1: HP Coach ---------------- The Benefits Analysis is the first step in an ongoing process to determine customer needs. Using the Benefits Analysis, or "HP Coach" as it is called internally, we can help you identify key business goals and understand the benefits of reaching those goals through the implementation of CIM. A Benefits Analysis involves interviews with senior management as well as middle and lower management from different parts of the organization. These interviews are undertaken to determine: Goals - Upper management's vision of the central mission of the ááááááááorganization. Critical Success Factors - The things that must go right for the áááááááácustomer to achieve those goals. Obstacles - The factors that stand in the way of achieving the áááááááácritical success factors. Implications - The things (usually negative) that could happen if ááááááááthe organization does not overcome the obstacles. Solutions - The HP hardware and HP/VAB software that, if implemented áááááááácould be used to overcome the obstacles, allowing the company ááááááááto achieve its goals. A key outcome of the Benefits Analysis is a customer presentation which outlines the benefits of technology in quantitative terms and links these benefits to the strategic goals of the organization. The presentation also highlights "high payoff" opportunities that have the most strategic value to the organization and will bring the highest return on their investment. Value to your Customer ---------------------- Benefits to you may include simply confirming, from an outside source, what you already knew and providing support for recommendations to management. Also, involvement of key personnel helps build support for change, and makes everyone feel a part of the process. ááá"It was...useful to have an outsider identify our obstacles and áááthen have us as a group look at them in black and white. It helped áááus gain consensus that these are our obstacles and agreement as to áááwhat we should do next." áááPlant Manager, áááAmerican Cyanamid Another key advantage of a Benefits Analysis is that it may turn up problems that need to be addressed in addition to automating. For example, a company may need to change its manufacturing process, institute JIT (Just-in-Time), or introduce a TQC (Total Quality Control) program. HP can provide assistance in these areas through executive seminars, division seminars and/or by recommending the involvement of outside sources, such as systems integrators and consultants. ááá"In some ways the Benefits Analysis made my job easier -- and in ááásome ways it made it harder. When I say harder, your initial ááárecommendations to us were non-technology oriented. They ááápertained to how to help the business put manual processes and áááprocedures in place before automating. That way we will have ááásystems that are valuable to our business vs. systems driving the ááábusiness. We thought you were going to come back with five HP ááásolutions...in fact, if you would have done that you would have ááálost credibility. You showed us that you really want to understand áááour business and be a partner." áááMIS Director, áááProctor and Gamble Fast and Extensive Analysis of Your Organization ------------------------------------------------ The advantage of HP's Benefits Analysis is that it can be completed in a short amount of time, which is often what customers really want. Customers receive critical information quickly, avoiding what can be the unnecessary detail that comes with the more extensive analyses of other vendors. .PA ááá"The thing that I'm most impressed with is that in a short period áááof time and with limited resources from our side, you were able to ááágather a lot of information and put a meaningful analysis of our ááábusiness together. It helped us to focus on the bigger mountains áááthat we have to sheer off." áááPlant Manager áááEli Lilly Both IBM and DEC offer their own internal consulting services. These services, which typically produce far more detailed reports than HP's Benefits Analysis, are usually presented from the computer vendor's point of view. HP's Benefits Analysis, on the other hand, is a presentation based on customer information; it is their study. HP simply uses the Benefits Analysis process to help customers uncover their own greatest opportunities. Finally, because the Benefits Analysis is performed by the local sales team, we have the opportunity to see problems and priorities from your perspective. This enriches our understanding of the account and enables us to make better recommendations as the account relationship develops over time. Note: You may want to use a slide with a quote from Kraft, highlighting the partnership with HP and Kraft. This slide is in the set of backup slides for this presentation. Transition: Once HP understands the key business issues, we proceed to the second step, a more detailed understanding of information flows. .PA Global Supply Chain Model ********** OCIM06.GAL ********** ..picturea:\ocim\ocim06.GAL,65535,49151,1,43,13, Step 2: Identify Information Flows ---------------------------------- At this step in the process, HP identifies information flows within a customer's organization so that application needs can be identified. Document Current Process ------------------------ Before recommending solutions in manufacturing, it is critical to document how products are made, where orders come from, where they are received, and how a product is shipped. HP Hierarchical Process Modeling (HPM) -------------------------------------¡ ì Iε aε effor⌠ t∩ makσ thi≤ proces≤ morσ efficient¼ H╨ i≤ beginninτ t∩ usσ ì ß compute≥ modelinτ too∞ calleΣ HP═ (Hierarchica∞ Proces≤ Modeling)« ì HP═ i≤ beinτ useΣ t∩ develo≡ mode∞ informatioε flow≤ fo≥ ß selectioε oµ ì applicatioε area≤ withiε ke∙ industries« Thi≤ slidσ show≤ ß samplσ oµ ì thσ outpu⌠ froφ thσ HP═ tool« Thesσ mode∞ architecture≤ arσ baseΣ oε ì HP'≤ owε manufacturinτ experience¼ a≤ wel∞ a≤ informatioε gaineΣ througΦ ì workinτ witΦ othe≥ companies« The∙ arσ onl∙ ß startinτ point¼ however« ì Yo⌡ caε expec⌠ t∩ modif∙ theφ b∙ a⌠ leas⌠ 20Ñ wheε creatinτ aε ì enterprise-wide or site-specific architecture. As of this writing, the most detailed information flows have been developed for: ááááá¬ fas⌠ movinτ packageΣ good≤ distributioε anΣ logistic≤ ì ááááá* electronic components manufacturing ááááá* aerospace shop-floor management Typically, you will work together with your SE and/or local Center of Expertise (COE) to create enterprise-wide or site-specific information flows. Newly inaugurated, COEs are staffed with industry experts who have hands-on experience in consulting and business case analysis, CIM planning and implementation, and project management. In the future, HPM tools will be used to make standard architecture information available worldwide with revision control and regular updates. Note: HPM is still in its infancy with limited factory, Application Support Division (ASD), COE, and field expertise and training available. To obtain more detailed information on existing architectures and future architectures as they are developed, you can call your local Center of Expertise, your Area Manufacturing Representative, or the industry teams in the Manufacturing Industry Center located in Cupertino. Customer Reaps Benefit of HP's Homework --------------------------------------- You reap the benefits of HP's homework. Starting with an industry- specific model, customers save the time and effort that would be required if you worked with a vendor to document information flows from scratch. In addition, you can be confident that both HP and HP's support group understand their operation so we can provide better service as the account relationship develops. Benefit from HP's Exerience--HP Advantage ----------------------------------------- IBM and DEC have spent a lot of time documenting information flows in targeted accounts. However, their focus often stays at the corporate or group level. IBM, in particular, is currently defining architectures only at a high level. HP, on the other hand, provides both enterprise-wide and site-specific architectures, with its most effective efforts thus far at the site level. And, unlike its competition, HP's architectures are a practical view of the customer's issues, not HP's view of how the flows should be. Currently, HP's information architecture is being done on a selective basis by the Centers of Expertise. However, our strategic direction is to expand our resources in this area. In the future, all COEs and the AEO will have access to HPM tools so that they can develop both enterprise-wide and site-specific architectures far more efficiently. With HPM, HP is expected to be the leader in computer modeling tools for industry architectures. Expanding and formalizing this effort is critical to overcoming the initiatives of the competition and to insuring profitable consulting services. Transition: The next step in the OpenCIM process is to apply the appropriate solutions to fit with the information architectures. .PA HP's Best-in-class Solutions ********** OCIM07.GAL ********** ..picturea:\ocim\ocim07.GAL,65535,49151,1,43,13, Step 3: Select Best-in-Class Applications ------------------------------------------ Havinτ identifieΣ thσ informatioε flow≤ iε you≥ organization¼ thσ nex⌠ ì ste≡ i≤ consultinτ witΦ yo⌡ t∩ selec⌠ thσ solution≤ whicΦ bes⌠ fi⌠ you≥ ì needs« Typically¼ aε organizatioε wil∞ selec⌠ onσ ke∙ areß t∩ begiε ì witΦ anΣ usσ thσ architecturσ a≤ ß roaΣ ma≡ fo≥ thσ future« Fo≥ ì example¼ yo⌡ ma∙ wan⌠ t∩ organizσ ß cross-functiona∞ desigε teaφ iε ì orde≥ t∩ develo≡ ß bette≥ product« Iµ you≥ industr∙ ha≤ ß mode∞ ì architecture¼ wσ caε usσ i⌠ t∩ finΣ ou⌠ thσ ke∙ application≤ yo⌡ need« ì H╨ spend≤ ß grea⌠ dea∞ oµ timσ anΣ effor⌠ recruitinτ VAB≤ wh∩ caε ì providσ thesσ applications« Wσ worδ closel∙ witΦ onl∙ ß fe≈ dozeε VAB≤ ì whosσ solution≤ arσ bes⌠ suiteΣ t∩ thσ task« Thei≥ solution≤ arσ calleΣ ì "Best-In-Class." Criteria for Selection ---------------------- Selection criteria include: * fit into our industry architectures * product functionality * strategic commitment to "openness" of solutions, ááthat is open vs. closed architecture, use of standards * stability of the supplying company ¬ abilit∙ oµ thσ supplie≥ t∩ worδ witΦ H╨ anΣ it≤ customer≤ t∩ integratσ ì ááthe solution into the customer's environment Committed to Open Computing --------------------------- ┴ critica∞ H╨ objectivσ i≤ t∩ makσ surσ tha⌠ al∞ "Best-In-Class"solutioε ì creator≤ arσ committeΣ t∩ thσ ideß oµ opeε computing« Wheε solution≤ ì arσ baseΣ oε opeε computinτ standards¼ the∙ caε bσ integrateΣ morσ ì easil∙ witΦ eacΦ othe≥ anΣ witΦ ß customer'≤ existinτ applications« Iε ì addition¼ the∙ caε bσ modifieΣ wheε ß custome≥ want≤ t∩ adΣ ne≈ ì technolog∙ iε thσ future« Wσ arσ workinτ closel∙ witΦ MP┼ anΣ ì UNIX-baseΣ "Best-In-Class"solutioε provider≤ t∩ incorporatσ thσ emerginτ ì anΣ dσ fact∩ industr∙ standard≤ fo≥ opeε computing¼ sucΦ a≤ POSI╪ anΣ ì X-Windows¼ a≤ wel∞ a≤ H╨ technologie≤ tha⌠ hel≡ bridgσ thσ ga≡ t∩ opeε ì computing, such as NewWave Office and VPLUS/ Windows. Benefit from Functionality with Flexibility to Change ----------------------------------------------------- Fo≥ customer≤ wh∩ arσ no⌠ interesteΣ iε buildinτ homegrowε solutions¼ ì "Best-In-Classó application≤ caε providσ thσ functionalit∙ the∙ need¼ ì withou⌠ givinτ u≡ thσ flexibilit∙ t∩ changσ iε thσ future« Customer≤ ì caε depenΣ oε thesσ solution≤ anΣ kno≈ tha⌠ H╨ i≤ workinτ closel∙ witΦ ì thσ VA┬ -¡ botΦ froφ ß technica∞ anΣ busines≤ perspective« Iε addition¼ ì iµ ß solutioε i≤ no⌠ availablσ oε thσ market¼ H╨ caε worδ witΦ solutioε ì creator≤ t∩ creatσ it« ICC'≤ Sho≡ Floo≥ Datß Manage≥ wa≤ developeΣ iε ì thi≤ fashion« H╨ als∩ provide≤ technica∞ assistancσ t∩ solutioε ì creator≤ s∩ the∙ caε takσ advantagσ oµ ne≈ technologie≤ quickly« ì Finally¼ a≤ morσ anΣ morσ "Best-In-Classó vendor≤ becomσ integrateΣ ì througΦ opeε computing¼ ß custome≥ wil∞ bσ ablσ t∩ choosσ ß variet∙ oµ ì products and know they'll work together now and in the future. HP Helps You Choose the "Best Fit" Solution ------------------------------------------- Othe≥ vendor≤ presen⌠ man∙ solutioε alternative≤ anΣ requirσ thσ ì custome≥ t∩ differentiatσ amonτ them« H╨ help≤ yo⌡ choosσ froφ amonτ ß ì pre-selecteΣ grou≡ oµ solution≤ t∩ finΣ thσ bes⌠ fit« DE├ anΣ IB═ havσ ì simila≥ programs¼ bu⌠ wσ arσ morσ selective« H╨ work≤ closel∙ witΦ onl∙ ì thosσ companie≤ tha⌠ arσ committeΣ t∩ opeε computing¼ anΣ committeΣ t∩ ì working with HP to pursue its strategic marketing direction. On the contrary, DEC and IBM's first emphasis, at least in the manufacturing area, is proprietary. Having achieved strong success in their respective areas (IBM in plant management and DEC on the plant floor) they are not fully committed to open systems and their VABs are not committed either. For instance, IBM's VABs for manufacturing are committed to SAA which doesn't currently have a clear role for UNIX solutions in a manufacturing function. IBM's proprietary solutions are not SAA-compliant nor is there a list of VABs with available SAA applications that are installable today. DEC's focus is their proprietary, VMS architecture. Note: You may want to use the slide with the customer quote from Metalsa discussing OpenCIM solutions. The slide is included in the backup slides for this presentation. Transition: Let's now discuss the NewWave Computing platform and tools from HP that support the needs of a CIM implementation. .PA Leadership in Computing Technologies for Manufacturers ********** OCIM08.GAL ********** ..picturea:\ocim\ocim08.GAL,65535,49151,1,43,13, Step 4: NewWave Computing Platform --------------------------------- Commitment to Open Systems -------------------------- As a reflection of HP's commitment to open systems, our open computing platform is built on a foundation of strong multivendor networking, along with industrial precision tools which simplify integration and improve user interfaces. Customers today have told us they want vendors to broaden their definition of open systems beyond UNIX. You don't want to start over and buy new hardware and software in order to take advantage of new technology. Instead, you want to add to what you already have. ááá"If all you're giving me is private protocols between UNIX systems áááthat will not operate with...my other systems, then you're not ááágiving me a graceful way of introducing new technologies." áááData Processing Manager HP's approach will let applications run on the operating systems for which they are designed, adding interfaces to make the applications work together. Also, extensions and additions to existing systems permit them to be connected into a larger cooperative and distributed system. Over time, new functions with new capabilities can be added, and still coexist with the established systems. HP Offers Tools to Modify Solutions ----------------------------------- To execute this approach, HP offers software developers tools they can use to modify new solutions, integrate new solutions with what they have, or improve on existing solutions. Other HP products improve customers' ability to integrate information and resources in a multivendor environment. Followinτ i≤ ß brieµ descriptioε oµ thesσ tool≤ anΣ products« ì HP Real-Time Database --------------------- H╨ Real-Timσ Databasσ caε bσ useΣ t∩ producσ aε HP-U╪ high-speeΣ memory¡ ì residen⌠ databasσ t∩ front-enΣ relationa∞ databases« Thi≤ databasσ ì allow≤ customer≤ t∩ makσ surσ tha⌠ datß storagσ anΣ retrieva∞ i≤ fas⌠ ì enough to keep pace with actual production needs. .PA HP Device Interface System -------------------------- HP Device Interface System significantly reduces the time it takes to integrate RS-232 plant-floor devices and cell/supervisory control systems. HP Map ------ HP'≤ MA╨ 3.░ product≤ providσ physica∞ link≤ anΣ service≤ needeΣ t∩ ì contro∞ anΣ distributσ informatioε amonτ sophisticateΣ device≤ likσ PLC≤ ì anΣ robots« Ou≥ ne≈ MMS/802.│ product¼ shippinτ a⌠ thσ enΣ oµ 1990¼ ì wil∞ allo≈ ou≥ Manufacturinτ Messagσ Specificatioε (MMS⌐ service≤ t∩ ruε ì over an 802.3 link. HP Interactive Visual Interface ------------------------------- HP Interactive Visual Interface allows software developers to create HP-UX, high quality, 2-D graphics and 3-D widgets (graphic dialog tools) for the end user on the plant floor. This interface is OSF/MOTIF Level I-compliant. HP VPLUS/Windows ---------------- H╨ VPLUS/Window≤ bring≤ existinτ VPLUS-baseΣ application≤ oε thσ H╨ 300░ ì into an MS-Windows NewWave environment. HP Sockets ---------- H╨ Softwarσ Integratioε Socket≤ (H╨ Sockets⌐ greatl∙ reduce≤ thσ amoun⌠ ì oµ codσ needeΣ t∩ providσ datß integratioε betweeε ne≈ anΣ existinτ ì applications« NewWavσ Officσ product≤ allo≈ P├ user≤ t∩ havσ eas∙ ì acces≤ t∩ botΦ informatioε anΣ resource≤ acros≤ ß network¼ al∞ withiε ß ì common graphical user environment on their PCs. HP AdvanceNet delivers products which allow customers to integrate existing networking technologies with each other. OpenView is HP's strategy to address customer demands for multivendor network and networked systems management. OpenView offers both products and services to allow customers to manage their complex networks. Integrating Different Technologies ---------------------------------- Over fifty percent of all new applications being installed in manufacturing are homegrown. As a result, manufacturers are hesitant to discard what they have and start over when new technology is available. These tools and HP's open platform will make it easier to tie into proprietary solutions. In addition, customers can buy new technology, such as a consistent user interface, and integrate it with what they already have. .PA Protecting Your Investment -------------------------- We believe that customers will eventually want to evolve completely from proprietary to open systems. But as a pragmatic vendor, we realize it will not happen all at once. We are willing to work with customers to achieve a gradual migration, while accommodating the reality of the systems they have and protecting their current investment. HP's technology investments and the tools outlined above reflect our commitment to investing in tools for gradual migration to open computing. HP, Committed to Standards -------------------------- HP is the only major vendor to show a true commitment to standards-based products and technologies. By attempting to get everyone on the UNIX bandwagon, some vendors such as DEC, have claimed to be "standards-based." But, in truth, they are building their solutions around their own proprietary architectures. IBM's SAA is currently IBM only and DEC's stated operating system for the plant floor is not Ultrix, but its own proprietary VMS. IBM'≤ commoε use≥ environmen⌠ fo≥ it≤ proprietar∙ operatinτ systems¼ ì excep⌠ AIX¼ i≤ SAA¼ System≤ Applicatioε Architecture« Accordinτ t∩ UB╙ ì Securitie≤ (Apri∞ 24¼ l99░ issue)¼ thσ exclusioε oµ AI╪ froφ SA┴ i≤ ì vieweΣ a≤ ß methoΣ t∩ reducσ thσ impac⌠ oµ thσ RS/600░ oε other¼ morσ ì profitablσ produc⌠ lines« However¼ IB═ i≤ expecteΣ t∩ makσ move≤ t∩ ì better incorporate the RS/6000 and AIX into SAA. DEC's Network Application Support (NAS) represents a more encompassing topology than IBM's SAA because NAS supports products not manufactured by DEC. Still it is sometimes viewed as a scheme to propagate a proprietary network and proprietary systems. That's because the operation of NAS requires the use of a network based on proprietary systems instead of a network based on nonproprietary TCP/IP protocols. TCP/IP supports multivendor environments without requiring the presence of any particular vendor's systems. Open Computing--HP's Strategy for the 90s ----------------------------------------- BotΦ vendor≤ arσ givinτ mixeΣ messages« Oε thσ othe≥ hand¼ HP'≤ clea≥ ì strateg∙ fo≥ thσ 90≤ i≤ opeε computing« Thσ NewWavσ Computinτ ì Environmen⌠ doesn'⌠ requirσ ß networδ usinτ proprietar∙ protocols« ì Unlikσ DE├ anΣ IBM¼ H╨ recognize≤ thσ validit∙ oµ multivendo≥ ì environment≤ anΣ i≤ providinτ thσ hardware¼ technology¼ anΣ tool≤ needeΣ ì t∩ integratσ aε organizatioε withiε tha⌠ context« Alread∙ 2╡ percen⌠ oµ ì HP'≤ manufacturinτ revenue≤ arσ UNIX-based« And¼ thσ strategiπ produc⌠ ì directioε oµ tool≤ whicΦ arσ makinτ ou≥ MP┼ platform≤ "openó i≤ int∩ ß ì multivendo≥ world« Finally¼ althougΦ othe≥ vendor≤ havσ tool≤ whicΦ ì makσ i⌠ possiblσ fo≥ ne≈ application≤ t∩ integratσ witΦ eacΦ other¼ n∩ ì othe≥ vendo≥ offer≤ ß too∞ t∩ allo≈ integratioε oµ existinτ installeΣ ì applications. .PA ááá"We believe that NewWave now has the momentum to become a standard áááand that HP will soon be viewed -- if not already -- as the ááátechnological leader of the early 1990s." áááUBS Securities Inc. áááApril 24, l990 Transition: To better understand how we approach integration, let's evaluate the integration tool HP Software Integration Sockets in more detail. .PA HP OpenCIM Applications Integration ********** OCIM09.GAL ********** ..picturea:\ocim\ocim09.GAL,65535,49151,1,43,13, Standard linkages to manufacturers solutions, both packaged software and totally custom software, are achieved through industry-standard networking and HP Sockets, HP's application integration enabling toolkit. HP Sockets provides data transformation and manipulation ---------------------------------------------------------- H╨ Socket≤ provide≤ datß transformation¼ manipulation,anΣ transpor⌠ froφ ì onσ existinτ applicatioε t∩ anothe≥ withou⌠ requirinτ modification≤ t∩ ì thσ existinτ application≤ anΣ withou⌠ impactinτ thσ performancσ oµ thσ ì existinτ applications« Thσ timσ (anΣ cost⌐ i⌠ take≤ t∩ codσ anΣ tes⌠ ì applicatioε linkage≤ i≤ reduceΣ b∙ 5░ percen⌠ o≥ more« Wheε coupleΣ ì witΦ aε approximatσ 1░ percen⌠ reductioε iε specificatioε time¼ thσ ì overal∞ timσ t∩ develo≡ aε integratioε linδ i≤ reduceΣ 40-5░ percen⌠ ì witΦ H╨ Sockets« AnΣ thσ effor⌠ t∩ suppor⌠ anΣ retes⌠ thσ H╨ ì Sockets-baseΣ linkage≤ upoε change≤ iε operatinτ system≤ anΣ subsystem≤ ì (fo≥ example¼ ne≈ release≤ anΣ upgrades⌐ i≤ als∩ reduceΣ substantially« ì HP Sockets' Capabilities are Independent of Network Service & Topology ---------------------------------------------------------------------- Applications with HP Sockets data access adapters access other applications with HP Sockets data access adapters either on the same computer or over the LAN. HP Sockets capabilities are independent of network service and topology. Once an application-specific adapter has been developed, implementation is basically a configuration chore, not a coding chore, and there is virtually no application performance degradation. The benefits of HP's integration enabler toolkit approach are substantial: o Horizontal integration (for example, between a quality monitoring ááásolution and a factory data collection solution) as well as ááávertical integration (for example, between the office and the plant áááfloor) is greatly simplified. o Multivendor solutions can mutually access relevant information áááwithout requiring the enduser to have source code for the ááásolutions (very important given the tight control most solutions ááácreators keep on source code). o When one of the "integrated" applications is modified (perhaps áááan operating system revision), only the data access adapter needs áááretesting. Under traditional integration methods, any application áááwith a link to the modified solution would require retesting and áááperhaps rewrite of the link. Transition: With tools such as HP Sockets, HP is bringing reality to the vision shown on the next slide. .PA OpenCIM Framework ********** OCIM10.GAL ********** ..picturea:\ocim\ocim10.gal,65535,49151,1,43,13, HP's Vision Of Providing Integrated Solutions For Manufacturers --------------------------------------------------------------- Combining best-in-class applications with the enabling technologies for User Interface, Device Integration, Data Management, and Application Integration you can achieve the vision shown on this slide....integrated applications run on multiple hardware platforms....connections with suppliers and customers via EDI linkages...connections to applications running on DEC and IBM hosts... all running under a NewWave/X Windows environment...built on HP's open computing and standards-based client/server platforms. Horizontal & Vertical Integration --------------------------------- HP's approach is to provide horizontal as well as vertical integration. You want your MRPII solution to integrate with your quality control solution (horizontal integration). You also need to integrate with the business management functions of electronic mail, decision support, and information access (vertical integration). The user should have a consistent user interface that does not require them to know the complexities and differences of the solutions they use. Transition: But what does this mean for an enduser? .PA HP's Cooperative Computing Vision for Manufacturing--Supervisor View ********** OCIM11.GAL ********** ..picturea:\ocim\ocim11.GAL,65535,49151,1,43,13, This is an example of what a manufacturing supervisor's computer screen might look like with NewWave Computing. The icons on the top row represent some of the services the manager would want to use. The windows are views into different parts of the organization, representing information that formerly was available only in stacks of computer printouts or by "sneakernet" -- walking over to another part oµ thσ organizatioε t∩ catcΦ ß glimpse« Oε thσ to≡ left¼ thσ superviso≥ ì get≤ t∩ vie≈ what'≤ happeninτ iε aε MRPI╔ applicatioε runninτ oε aε H╨ ì 3000 computer. In the bottom left window, the data from a production-scheduling application, running on an HP 9000 in the warehouse, is expressed in easily understood graphical form. In the bottom right, the supervisor gets to view what's happening on the manufacturing floor in real time -- as it's actually occurring. (This capability requires HP NewWave support for X-Windows terminals which is targeted to be available in 1991). Finally, in the top right window, there's HP's OpenMail, HP's new electronic mail product based on the X.400 industry standard that can communicate across MPE and UNIX operating systems. Note: You may want to use a slide with the quote from Ford. This slide is included in the backup slides for this presentation. .PA Services Complete Bridge From Issues to Benefits ********** OCIM12.GAL ********** ..picturea:\ocim\ocim12.GAL,65535,49151,1,43,13, Step 5: Delivery ---------------- Working with Systems Integrators -------------------------------- H╨ work≤ witΦ it≤ partner≤ t∩ delive≥ thσ bes⌠ solution≤ possiblσ t∩ ì customers« Iε thσ past¼ thσ bulδ oµ HP'≤ busines≤ ha≤ beeε baseΣ iε thσ ì deliver∙ oµ poin⌠ solutions« However¼ iε thσ future¼ H╨ wil∞ bσ morσ ì focuseΣ oε deliverinτ integrateΣ solution≤ withiε large≥ contracts¼ iε ì which a systems integrator is the prime contractor. Leveraging Specialized Expertise of Systems Integrators ------------------------------------------------------- H╨ use≤ largσ system≤ integrator≤ a≤ thσ channe∞ fo≥ multiplσ VA┬ ì produc⌠ solution≤ a≤ wel∞ a≤ multivendo≥ opeε computing« Thesσ system≤ ì integrator≤ arσ specialist≤ iε thei≥ choseε market≤ anΣ applications« ì The∙ havσ demonstrateΣ thei≥ abilit∙ t∩ design¼ develop¼ anΣ implemen⌠ ì custoφ automatioε system≤ anΣ arσ no≈ workinτ morσ anΣ morσ witΦ H╨ anΣ ì our open computing platform. Systems integrators contribute industry- and application-specific expertise, multivendor integration experience, and project management skills and resources. áááSR NOTE: ááá------- áááWhere there are industry-focused COEs you can consult with them to áááselect the best systems integrator for a particular account, ááápreferabl∙ onσ wh∩ ha≤ proveε expertisσ iε thσ samσ kinΣ oµ project« ì áááThe St. Paul COE focuses on manufacturers which produce products in áááhigh volume and are geared towards the consumer market. Specific áááindustries addressed are packaged goods as it relates to food áááprocessing; pharmaceuticals; and specialty chemicals as related to áááconsume≥ business« Thσ Fullertoε CO┼ focuse≤ oε discretσ ì ááámanufacturer≤ iε thσ aerospacσ anΣ commercia∞ electronic≤ industries« ì HP Offers Open Systems with Integrators --------------------------------------- IBM and DEC compete with the larger, well-known systems integrators by offering their own consulting services. When they do perform systems integration, there are very few open systems involved. ThrougΦ it≤ relationship≤ witΦ system≤ integrators¼ H╨ offersit≤ ì customer≤ opeε computinτ combineΣ witΦ thσ securit∙ oµ biτ integrators« ì H╨ i≤ no⌠ competinτ witΦ thσ largσ system≤ integrators¼ sucΦ a≤ ì Battelle¼ Andersoε Consulting¼ anΣ EDS« Instead¼ wσ arσ activel∙ ì pursuinτ relationship≤ witΦ them« Currently¼ H╨ doe≤ fa≥ morσ opeε ì computinτ system≤ worδ witΦ thesσ firm≤ thaε eithe≥ IB═ o≥ DEC« And¼ a≤ ì thei≥ thσ demanΣ fo≥ pilo⌠ project≤ baseΣ oε opeε system≤ increases¼ H╨ ì has the potential for enlarging its share of business with them. Transition║ Ongoinτ suppor⌠ availablσ wherσ yo⌡ neeΣ i⌠ i≤ aε importan⌠ ì par⌠ oµ you≥ CI═ implementatioε process« ì .PA HP: The Best in Service and Support ********** OCIM13.GAL ********** ..picturea:\ocim\ocim13.GAL,65535,49151,1,43,13, Step 6: Support --------------- Superior Global Support ----------------------- Service and support are becoming increasingly important in your decision making when choosing both a vendor and a system. After the sale, HP's hardware and software support, along with the solution support from our best-in-class VABs, are critical to a successful partnership. Thanks to HP's worldwide presence, it offers superior support all over the globe. HP's support programs provide customers with resources necessary to maintain the highest possible performance for their HP equipment. You rely on your manufacturing information system to control your business. Highly reliable vendors play a critical role in guaranteeing the level of control you can achieve, particularly after the sale. HP's Advantage -------------- For the past seven years, we've been rated number one in customer support satisfaction, based on results compiled from surveys by Datapro International. In fact, independent consultants across the world recognize HP's strong leadership and innovation in support. Step: 7: The Feedback Loop - Continuous Enhancement --------------------------------------------------- Finally¼ there'≤ ß critica∞ 7tΦ ste≡ iε thσ OpenCI═ proces≤ tha⌠ i≤ ì importan⌠ t∩ thσ developmen⌠ oµ ou≥ long-terφ relationship« ┴ feedbacδ ì loo≡ tha⌠ connect≤ Ste≡ Si° t∩ Ste≡ One¼ provide≤ continuou≤ enhancemen⌠ ì oµ thσ solution≤ wσ havσ recommendeΣ t∩ you« Re-enterinτ thσ 6-ste≡ ì proces≤ whereve≥ appropriatσ allow≤ u≤ t∩ builΣ ß flexiblσ solutioε tha⌠ ì wσ wil∞ continuσ t∩ enhancσ a≤ you≥ busines≤ need≤ change« Successfu∞ ì long-terφ relationship≤ betweeε H╨ anΣ ou≥ customer≤ assumσ thi≤ ongoinτ ì process¼ ß reflectioε oµ thσ philosoph∙ oµ continuou≤ improvemen⌠ ì adhered to in Total Quality Control (TQC) programs. Transition: Let's discuss how HP's approach is a bit different than others who supply CIM solutions. .PA HP's OpenCIM Strategy Differentiators ********** OCIM14.GAL ********** ..picturea:\ocim\ocim14.GAL,65535,49151,1,43,13, Strong Manufacturing Background ------------------------------- Ove≥ 5░ percen⌠ oµ HP'≤ compute≥ revenue≤ comσ froφ manufacturers« HP'≤ ì OpenCI═ strateg∙ capitalize≤ oε thi≤ stronτ computinτ basσ anΣ build≤ oε ì some key differentiators: OpenCIM Based on Reality ------------------------ OpenCIM¼ HP'≤ NewWavσ Computinτ Strateg∙ fo≥ Manufacturing¼ i≤ baseΣ oε ì thσ realitie≤ facinτ manufacturer≤ a≤ the∙ worδ t∩ improvσ time-baseΣ ì competitiveness« OpenCI═ give≤ customer≤ thσ flexibilit∙ the∙ neeΣ t∩ ì meet the changes demanded in their business. HP's OpenCIM strategy includes: 1) joint development of site-specific áááinformation models, based on user needs 2) step-wise integration of existing ááámanufacturing solutions with "Best-In-Class" solutions áááfrom value-added business 3) far greater flexibility through áááHP's leadership in open computing áááSR NOTE: Following is a description of key OpenCIM differentiators. áááYo⌡ caε usσ theφ a≤ ß cal∞ t∩ actioε iε you≥ custome≥ presentations« ì Top-three Position In Every Aspect of Manufacturing ----------------------------------------------- No other hardware vendor has a "top-three" position in virtually every key aspect of the manufacturing value chain, including MRPII, industrial automation engineering, and test and measurement. As enterprise-wide integration grows in importance for HP's customers, our unique position will make this an even more powerful differentiator. Pure Commitment to Open Systems ------------------------------- HP's OpenCIM strategy emphasizes both proprietary system interoperability and a strategic UNIX role today. Tools like HP NewWave Office, HP VPLUS/Windows, and HP Software Integration Sockets are just a few of the technologies within the NewWave computing umbrella that show HP's manufacturing customers and value-added businesses that open computing from HP is not just a marketing initiative. ááá"Each of the three largest domestic computer companies has its own áááapproach to open systems. These differences serve to reinforce the ááánotion that HP is the only one of the three whose intentions are ááápure. Impurity in this context means a hidden agenda such as to áááhoodwink users into believing that they are buying open systems áááwhen, in fact, they are buying open appendages to proprietary ááásystems. áááUBS Securities, Inc. Report on HP April, 1990 Integrates Existing Systems --------------------------- Incremental integration of existing, installed applications is a top manufacturing priority. HP Software Integration Sockets is truly unique in the marketplace, providing value-added businesses and in- house applications developers with a tool that can cut their plant- floor application linkage coding and testing efforts in half. Ease of integration while protecting the existing systems investment is a door opener with virtually every manufacturer. Step-wise Implementation ------------------------ CIM tactical and strategic planning is quite a challenge for today's manufacturers. IBM Senior Vice President Earl Wheeler was recently quoted as saying that SAA is "...a puzzle in which all the pieces are never going to be in place." On the other hand, HP's OpenCIM strategy stresses the ease of getting started today with such things as site-specific user needs analyses and progressing in a "step-wise" manner. In fact, in their August 13, 1990, CIM Vendor Ratings study, Gartner Group, Inc. states, ááá"...HP has a better vision and product line than either áááIBM or DEC for users that want to put together open-systems- ááábased manufacturing systems." Bu⌠ perhap≤ thσ bes⌠ summar∙ oµ HP'≤ OpenCI═ Strateg∙ shoulΣ comσ froφ ß ì satisfied customer. ááá"With new companies coming on board and new and more diverse áááproducts, our business is changing rapidly. Through hard work, áááresearch and follow-through, HP has gained a thorough understanding áááof our business strategy and needs. They've put the right áááresources on the job and worked as a team with our other strategic ááávendors. Thanks to their efforts, we now have complete, ááástandards-based solutions that meet our needs today and position us áááto compete over the next decade in our global marketplace. áááAssociate Director áááElectrical/Process Automation áááKraft General Foods .PA Benefits of Partnering with HP ********** OCIM15.GAL ********** ..picturea:\ocim\ocim15.GAL,65535,49151,1,43,13, Partnering with HP provides the following benefits: - We will provide industry specific and site-specific solutions that áááare supported by HP. We do not try to force fit a monolithic ááásingle solution. - You can begin you CIM implementation in a step-wise practical ááámanner. HP will help you develop and execute that plan. HP's áááOpenCIM strategy is built on the assumption of modular áááimplementation with the multi-vendor nature of the manufacturer's áááenvironment in mind. - HP has the solutions and tools today to make sure your áááimplementation is cost effective, timely and scalable to large and ááásmall plants. HP's corporate focus on OPEN COMPUTING and STANDARDS áááis far beyond that of IBM (whose SAA is basically IBM only, áááextremely expensive per seat, and not available today) or DEC ááá(whose stated operating system of choice for the plant floor is not áááUltrix, but its proprietary VMS). - You have already invested a good deal of time and money in your own áááCIM implementation. HP helps you protect that investment by áááidentifying only those solutions that need to be replaced today. We ááádo not suggest you throw everything out and start over (as IBM's áááSAA requires). With IBM, even DOS PCs become throw-aways due to ááálack of memory. HP's OpenCIM solutions strategy is a proven way to deliver on the promise of CIM - HP's PRAGMATIC way of delivering INTEGRATED solutions with proven technologies today, while using innovation toinsure a roadmap for tomorrow's success. And with over 50 percent of HP's computer revenues coming from manufacturers, HP is sure to remain committed to manufacturers future success. 3M Healthcare Products *********** OCIMX01.GAL *********** ..picturea:\ocim\ocimx01.GAL,65535,49151,1,43,13, THE SITUATION: 3M Healthcare Products, in isolated Brookings, South Dakota, produces 1000 different products, any 100 of which might be in production at a given time. 3M was seeing its usable lifetimes diminishing to 2 years on its surgical tape products as well as experiencing severe price erosion. The Brookings site could not predict the customer demand/product mix so it needed a more flexible manufacturing operation to deal with the waste, poor machine utilization, and excess inventory. Being a remote site, any solution implemented needed to be maintained and enhanced by on-site personnel. 3M wanted SINGLE SOURCE data entry as well as a similar look and feel for the human interface. TH┼ SOLUTION║ 3═ haΣ HP'≤ Material≤ Management¼ Productioε Management¼ ì anΣ Maintenancσ Managemen⌠ oε aε H╨ 300░ performinτ thσ busines≤ ì managemen⌠ function≤ witΦ link≤ int∩ ß remotσ IB═ system« Custome≥ ì orde≥ anΣ schedulσ informatioε i≤ passeΣ froφ thσ H╨ 300░ ove≥ thσ LA╬ ì t∩ Hilc∩ Technologie≤ Monitrol/UX« Monitrol/U╪ wa≤ selecteΣ t∩ perforφ ì ß variet∙ oµ tasks« Monitrol/U╪ fit≤ wel∞ int∩ ß client/serve≥ ì frameworδ sincσ i⌠ i≤ baseΣ oε HP-UX¼ X.11¼ SQL¼ anΣ use≤ standarΣ 802.│ ì networking« Monitrol/U╪ oε H╨ 900░ Serie≤ 84░ download≤ proces≤ info¼ ì specification≤ anΣ setpoint≤ t∩ anothe≥ Monitrol/U╪ applicatioε ì performinτ supervisor∙ contro∞ oµ thσ multivendo≥ manufacturinτ line≤ oε ì aε H╨ 900░ Serie≤ 370« X-terminal≤ ac⌠ a≤ humaε interface≤ t∩ ì Monitrol/UX« Thσ LA╬ als∩ ha≤ ove≥ 25░ othe≥ terminal≤ anΣ PC≤ oε i⌠ ì that are not shown. The configuration 3M was able to achieve shows a compressed (that is, "simplified") hierarchy. Monitrol/UX was implemented in a distributed client/server configuration. .PA 3M Healthcare Products *********** OCIMX02.GAL *********** ..picturea:\ocim\ocimx02.GAL,65535,49151,1,43,13, THE RESULTS: 3M elected to go with a modular implementation and achieved a 48 percent reduction in scrap on the first of the three packaging lines. 30 percent of the first year's projected scrap and yields savings were realized in the first 2 MONTHS of implementation. 3M estimates that the system payback will ultimately take less than three years and less than one year after all three lines are implemented. .PA American Cyanamid Agricultural Chemicals *********** OCIMX03.GAL *********** ..picturea:\ocim\ocimx03.GAL,65535,49151,1,43,13, THE SITUATION: The American Cyanamid Agricultural Chemicals Plant in Hannibal, Missouri wanted to introduce 15 new insecticide and animal feed products in the next 5 years -- a very accelerated release cycle. The∙ alread∙ haΣ ß Honeywel∞ proces≤ contro∞ systeφ t∩ managσ thσ batcΦ ì processe≤ oµ thei≥ ╡ productioε units« Bu⌠ the∙ needeΣ ß flexiblσ ì solutioε t∩ linδ thσ proces≤ contro∞ equipmen⌠ witΦ thσ 1⌐ chemica∞ laΓ ì (whicΦ use≤ aε H╨ 100░ baseΣ LaΓ Automatioε Systeφ t∩ perforφ chemica∞ ì assay≤ oµ sample≤ froφ variou≤ stage≤ oµ thσ productioε process)¼ anΣ ì 2⌐ thσ administratioε systeφ (whicΦ wa≤ aε incredibl∙ successfu∞ H╨ MMI╔ ì anΣ Maintenancσ Managemen⌠ solutioε oε aε H╨ 3000« I⌠ haΣ alread∙ saveΣ ì Americaε CyanamiΣ 1░ millioε dollar≤ iε exces≤ inventor∙ anΣ 75░ ì thousand dollars in raw material costs). THE SOLUTION: American Cyanamid chose Monitrol/UX running on an HP 900░ Serie≤ 37░ t∩ ac⌠ a≤ thσ distributeΣ supervisor∙ contro∞ solution« ì .PA American Cyanamid Agricultural Chemicals *********** OCIMX04.GAL *********** ..picturea:\ocim\ocimx04.GAL,65535,49151,1,43,13, THE RESULTS: The required control room shrank from 45 feet of control panels to two terminals with four X.11 windows each. The simplified standard human interface helped cut manual data entries enough to reduce the data-entry staff by two. Statistical process control improved due to reduced time delays for sample analysis. This benefit was particularly evident when analyzing high-yield batches (98 percent higΦ quality⌐ anΣ low-yielΣ batche≤ (6░ percen⌠ higΦ quality)« Overall¼ ì thσ plantwidσ informatioε systeφ leΣ t∩ highe≥ quality¼ lowe≥ costs¼ anΣ ì more reliable delivery of product. .PA Motorola Automated Pager Facility *********** OCIMX05.GAL *********** ..picturea:\ocim\ocimx05.GAL,65535,49151,1,43,13, THE SITUATION: Motorola in Boyton Beach, Florida was facing stiff Japanese price and delivery competition for pagers. They either had to make a quantum leap in cost reduction or get out of the pager business. They elected to put together a small team, representing all the disciplines from engineering thru manufacturing, to design and produce a low-cost, high-quality pager (3.4 defects per million pagers) that could be shipped within two HOURS of order receipt (versus two WEEKS as had been the case before). Orders were received on an IBM and transferred to a Stratus production management system. Note: each pager must have a unique number which adds to the complexit∙ oµ thσ probleφ -¡ ho≈ t∩ producσ uniquσ item≤ iε higΦ volumσ ì a⌠ lo≈ cost« TH┼ SYSTEM╙ SOLUTION║ Thσ Motorolß teaφ focuseΣ oε ì eliminatinτ thσ "Not-Invented-Hereó engineerinτ mindse⌠ anΣ usσ a≤ mucΦ ì standards-based "off-the-shelf" solutions software as possible. They elected to use an HP 9000 Series 825 HP-UX line controller with customer integration backplane software to link 6 HP 1000 based cell controllers which controlled 27 Seiko robots doing assembly. Motorola chose two of HP's "Best-In-Class" applications solutions to manage the line: Bradley Ward's PMIS process monitoring solution and ATA's RQM real-time quality management software. Both these solutions can run either on HP 1000s or under HP-UX on the HP 9000. .PA Motorola Automated Pager Facility *********** OCIMX06.GAL *********** ..picturea:\ocim\ocimx06.GAL,65535,49151,1,43,13, THE RESULTS: Motorola was able to go from design to production in only 17.5 months using standard, flexible solution, and good design for manufacturability concepts. The pager costs were reduced substantially. As of the summer, 1989, Motorola could complete a pager 53 MINUTES after receiving the order and had achieved a defect level of 5 parts per million. Their work earned them the prestigious Malcolm Baldridge award for manufacturing excellence. And Motorola has become the dominant pager supplier IN JAPAN!