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F³, a new formula for your production processes? Future Food Factories From idea to shelf, synchronized product and production lifecycles

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F³, a new formula for your production processes?

Future Food Factories

From idea to shelf, synchronized product and production

lifecycles

Industry SectorPage 2 F³ - Event Future Food Factory – March 2013

Food & Beverage Industry Challenges of the global economy

� Increasing competitive pressure and lower margins

� Ongoing search for new ideas and innovative products

� Global time to market is crucial for a leadership position

� Increasing productivity while improving quality at the same time

� Drive for lower manufacturing costs

Facts:

� Product launches“... in 2000 : about 10 times more product launches than in 1980...”

� New products & revenue “... on average, 52% of revenue and 46% of profits are directly attributable to products introduced within

the last five years...”

� High failure rate“... 50% or more of new product introductions fail due to misalignment in R&D and manufacturing ...”

Gartner

How to streamline R&D and easily transfer the final product designs to the involved

manufacturing plants around the globe in a consistent way?

Industry SectorPage 3 F³ - Event Future Food Factory – March 2013

Four foundational pillars for Product success in this environment

GLOBALIZATION

Global markets Global partners Global resources

SUSTAINABILITY

Deliver products today that are environmentally friendly

SPEED

Rapidly go from idea to retail shelf in multiple markets

OPTIMIZATION

Optimization of processes, resources, cost and quality

Industry SectorPage 4 F³ - Event Future Food Factory – March 2013

Siemens Industry Software StrategyManagement of Product and Production Lifecycle

Industry SectorPage 5 F³ - Event Future Food Factory – March 2013

Siemens Industry Software Strategy Management of Product and Production Lifecycle

Industry SectorPage 6 F³ - Event Future Food Factory – March 2013

Siemens Industry SoftwareCurrent Offering for the Process Industry

Brand Product Package Program Process Production PlantProduct Data Record

LEADERSHIPBrand/Business

Portfolio ManagementProject Execution Management

Industry SoftwareFoundation Capabilities

Collaboration Lifecycle Visualization Integrated Workflow Reporting & Analytics Knowledge & Document Management Change Management Compliance Management

EXECUTION

Product =

Production =

Ideation &

Concept

Development

Regulatory,

Claims &

Labelling

Requirements

Management

Trials,

Sampling

& Testing

Packaging

& Artwork

Management

Specif ication

Management

Formula

Development

Supplier

Relationship

Management

Lab-to-

Production

Scale-up

Production

Modeling &

Execution

Facilities

Management

Maintenance,

Repair &

Overhaul

Process

Engineering

& Design

Quality

Management

W E B S E R V I C E S

Standard Data Transport & Connectors

Industry SectorPage 7 F³ - Event Future Food Factory – March 2013

How to bring a product from Idea to Shelf ?Example – Overview of different steps

Production Order confirmation

(MOM ���� ERP)

Production Order download

(ERP ���� MOM)

Specification Integration to

ERP

Idea Management

1

Portfolio Management

2

Project Management

3

Marketing Brief Development

4

Formula Development

5

Experiments and Trials

6

Regulatory Compliance and

Claims

7

Packaging and Artwork

8

Recipe Transformation

9

Specification Integration to

MOM

10 11 12

Manufaturing Operations Mgt

MOM

13 14

Order Progress

(partial order confirmation)

SIT2SAP

Manufacturing Intelligence

15

Ideation & Planning Ideation & Planning Feasibility Feasibility

Manufacturing Manufacturing Manufacturing

Manufacturing Manufacturing Launch

Development Development Development

Development

Development

Legend:

Siemens

Siemens to ERP

ERP to Siemens

Industry SectorPage 8 F³ - Event Future Food Factory – March 2013

Step 5Formula Development

Starring:

Activities :

� Review marketing brief

� Search to re-use formulas and ingredients

� Prototype various formulas

to validate targets

� Develop new formula specifications

FormulaDevelopment TEAM

� Development efficiency is improved by access to the most up to date formulation information

� Facilitating reuse of ingredients and formulas

� Powerful design workspace to design new formulas as you go, and automatically optimize them according to multiple constraints (e.g. cost, fat, energy, …)

Formula WorkbenchFormula

Multiple alternatives

Rolled up values Component Detail

Industry SectorPage 10 F³ - Event Future Food Factory – March 2013

How to bring a product from Idea to Shelf ?Example – Overview of different steps

Production Order confirmation

(MOM ���� ERP)

Production Order download

(ERP ���� MOM)

Specification Integration to

ERP

Idea Management

1

Portfolio Management

2

Project Management

3

Marketing Brief Development

4

Formula Development

5

Experiments and Trials

6

Regulatory Compliance and

Claims

7

Packaging and Artwork

8

Recipe Transformation

9

Specification Integration to

MOM

10 11 12

Manufaturing Operations Mgt

MOM

13 14

Order Progress

(partial order confirmation)

SIT2SAP

Manufacturing Intelligence

15

Ideation & Planning Ideation & Planning Feasibility Feasibility

Manufacturing Manufacturing Manufacturing

Manufacturing Manufacturing Launch

Development Development Development

Development

Development

Legend:

Siemens

Siemens to ERP

ERP to Siemens

Industry SectorPage 11 F³ - Event Future Food Factory – March 2013

Step 8Packaging and Artwork Development

� Integration of project, product, and package information enables

a closed-loop label compliance process

� Collaboration extends outside the walls of a company –

eliminating the need for passing paper or USB disks

� Dynamic relationships among specs ensure the continuation of

institutional knowledge, and enables the reuse of knowledge and Intellectual Property from/for past & future projects

� Product label statements automatically generated based on total product composition, reducing the risk for human errors

� Package Design

� Package Specification

� Artwork Management

� Brand equity management

� Copy Management

� Review, approval, and audit trail

Package Development TEAM

Starring:

Activities :

Industry SectorPage 13 F³ - Event Future Food Factory – March 2013

How to bring a product from Idea to Shelf ?Example – Overview of different steps

Production Order confirmation

(MOM ���� ERP)

Production Order download

(ERP ���� MOM)

Specification Integration to

ERP

Idea Management

1

Portfolio Management

2

Project Management

3

Marketing Brief Development

4

Formula Development

5

Experiments and Trials

6

Regulatory Compliance and

Claims

7

Packaging and Artwork

8

Recipe Transformation

9

Specification Integration to

MOM

10 11 12

Manufaturing Operations Mgt

MOM

13 14

Order Progress

(partial order confirmation)

SIT2SAP

Manufacturing Intelligence

15

Ideation & Planning Ideation & Planning Feasibility Feasibility

Manufacturing Manufacturing Manufacturing

Manufacturing Manufacturing Launch

Development Development Development

Development

Development

Legend:

Siemens

Siemens to ERP

ERP to Siemens

Industry SectorPage 14 F³ - Event Future Food Factory – March 2013

Step 13Manufacturing Operations Management - MOM

� Production order handling

� Genealogy, T&T

� Quality analysis

� Adjustments during

production

� Shop Floor communication

� Warehouse management

� Raw data collection, aggregation, reporting and charting

Production TEAM

Quality TEAM

� Guarantee the fastest and most efficient manufacturing of products � Increase quality by:

� producing according to specs

� coordinating response to production events

� Reduce consequential costs by recognizing non compliance� at reception from supplier

� early on in process

� before delivery to market

Inbound

Inventory

Tank Farm

Primary Process

Secondary Process

Warehouse

Outbound Inventory

Starring:

Activities :

Industry SectorPage 15 F³ - Event Future Food Factory – March 2013

MOMPrimary & Secondary Manufacturing Processes

Internal QC Laboratory

(External) Service Laboratory

Warehouse:“Final Goods ”

MixerMixer

PasteurizationsPasteurizations

HomogenizerHomogenizerFlavour Flavour

MixerMixer Barrel Barrel

FreezerFreezer

Filling LineFilling Line

MakerMaker

PackerPacker

PalletizerPalletizer

Mixer Cell

Primary Area

Secondary Area

Warehouse: “Receiving Area”

Industry SectorPage 16 F³ - Event Future Food Factory – March 2013

In a Nutshell

� Companies in CPG / F&B Industries are experiencing tremendous pressure to innovate more effectively to create increased organic brand growth and

product margin

� The existing tools that companies possess (such as ERP and Office

Productivity) are not designed to support the challenges of a high-performance innovation process

� Siemens provides an open and scalable solution that allows companies to

manage their complete process end-to-end

based on a solid industrial software platform that is designed for the CPG / F&B Industries.

� The Siemens solution extends the traditional view of product and production

life cycle management to better enable these companies to achieve their brand innovation and cost reduction goals

Challenges

Benefits

Solution

Gaps

Industry SectorPage 17 F³ - Event Future Food Factory – March 2013

Company profile overview

Ter Beke Fresh Food Groupwww.terbeke.be

Scope of services Main Industries

Locations

� Belgium (Wommelgem, Waarschoot, Herstal,

Veurne, Wanze,

Marche-en-Famenne)

� Netherlands (Wijchen,

Ridderkerk)

� Fresh Food products

� Meat products

� SIMATIC IT Interspec – Corporate specification management

Industry SectorPage 18 F³ - Event Future Food Factory – March 2013

Bridging the Product Information Gap

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Solution Partner: Siemens Industry Software (Belgium)

Customers: Ter Beke Fresh Food Group

Industry Sector: Fresh Food & Meat products

� Ter Beke’s credo: we create value for our customers and ourselves through leadership in high quality fresh ready meals and fine processed meats.

� Growing need for internal and external product information facing the challenging market situation

� Dealing with the company’s own diversification strategy (both company and product portfolio show a steep growth)

� Closing the remaining information gap (with the entire ERP-system)

SIMATIC IT Interspec bridges the product

information gap between Ter Beke and its consumers, strengthening their reputation.

Requirements by the customer:

Brief description of the solution

Industry SectorPage 19 F³ - Event Future Food Factory – March 2013

Bridging the Product Information Gap

� Handles all technical product information, such as nutritional

calculation, claims reporting, ingredients labeling and allergens, which are not covered by the ERP.

� Manages and improves data flows and technical product information, both inside: buying department (raw material specifications), production (product composition, process), control (pricing), product management (labeling, product

characteristics), QA, legal, marketing; and outside the company (suppliers, customers, consumers and authorities)

� The system is proven in practice, user-friendly and gives controlled access.

� It offers a basis for the management of clearly written and

laid out specifications and provides a balanced amount of detail. It can be set up in a modular way, uses Oracle central relational database, and is compatible with other IT systems

� Ter Beke had positive experience with a previous implementation by Siemens, and good cooperation

Implementation by Siemens Belgium

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Industry SectorPage 20 F³ - Event Future Food Factory – March 2013

Bridging the Product Information Gap

� “Single point of reference” in the company - a specification repository holding all product specification data

� Transparent management of supplier and customer specifications in relation to standard specifications

� Consolidation and accessibility of product information in decentralized company and diverse portfolio

� Electronic workflows for flexible specification lifecycle & approval processes shortens the time-to-market of new products

� Extensive reporting capabilities support quick and clear communication to consumers and authorities, showing

responsibility

Benefits for the customer

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Industry SectorPage 21 F³ - Event Future Food Factory – March 2013

Thank you for your attention!

Hermès Parfums

F³, a new formula for your production processes?

Future Food Factories

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