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Managing the Integration fo a Manufacturing Operation

IP.com Disclosure Number: IPCOM000218521D
Publication Date: 2012-Jun-05

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Managing the Integration of a Manufacturing Operation

     Peter A. Hall Systems Integration Consultant

The M. W. Kellogg Company

Houston


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SYNOPSIS

M. W. Kellogg has designed and built some of the worlds most advanced process manufacturing facilities. In addition to their full engineering, procurement and construction (EPC) service capability, Kellogg's particular skills in systems integration has enabled the process design and operations design to be developed simultaneously so realizing true integrated manufacturing environments. This paper provides an overview of the Kellogg methodology to achieve integration, for both new and existing facilities, and outlines the many and varied issues to be addressed. Future publications will detail the individual stages of integration management (shown in Figure 2). Managing the integration of a manufacturing operation is a complex task demanding special skills and qualifications. Before selectinga managing contractor or systems integrator for such a development, a manufacturing company should recognize the range of issues and how each contributes to their business objectives and effectstheir bottom line profitability.

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Managing the Integration of a Manufacturing Operation

      Manufacturing industry today faces many new challenges, some quite different from those it has struggled with in the past.

      The business environment in the 1990s and beyond will be highly competitive, and threaten the survival of many manufacturing operations. Among the challenges to be faced are increased competition from rival producers both at home and abroad, the reduced availability of raw materials, increased energy costs, stricter environmental legislation and a changing workforce.

      A manufacturing business that grew and prospered in earlier decades may not necessarily have the skills to survive in the 1990s, unless it addresses these developing challenges and positions itself to meet new challenges as they arise.

Here are some of the major challenges that manufacturers must confront:

Competition. New competitors are entering the marketplace, both nationally and internationally. Established companiesare struggling to maintain market share and avoid shrinkingprofit margins.

0 Financial Pressures. Shareholders and owners are insisting on better returns on their investments. With access to capital tightening, future investmentswill be judged strictly on cost/benefit over the short term. Supplier Insecurities. Suppliers have their own priorities and problems. Their survivalis equally important to a manufacturer. They, too, will seek secure and predictable markets for their products. Customer Demands. With a growing number of sources of products, customers are becoming less loyal, accustomed to wider selection and choice, insisting on higher quality at reasonable prices while demanding fast, responsive and flexible service.

Technological Change. Manufacturing processes, already complex, are bec...