Operational Excellence At The Hershey Company

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Operational Excellence atThe Hershey CompanyRuss GreggDigital Manufacturing Solutions ArchitectIS Global Supply Chain Solutions#OSIsoftUC#PIWorld 2018 OSIsoft, LLC Copyright 2017 OSIsoft, LLC

The Hershey Company#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Hershey Story – Do Well by Doing GoodYear Event1894 Milton S. Hershey establishes the Hershey company.1905 The Hershey Chocolate factory begins operations and theHershey Trust Company is established.1909 Mr. Hershey and his wife Catherine establish a boarding schoolfor orphan boys.1918 Milton establishes the Hershey Trust Fund to benefit children inneed.1935 Milton establishes the M.S. Hershey Foundation to provideeducational and cultural enrichment for Derry Township residentsand visitors. (Penn State Medical Center, The Hershey Story,Hershey Gardens, Hershey Theatre, and Hershey CommunityArchives)Today Manages the 12 billion trust to grow and maintain the MiltonHershey School which is a coed boarding school benefiting over2,000 students from pre-K through High School.#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Some Hershey Initiatives Cocoa Sustainably- CocoaLink, Learn to Grow , CocaAction are all part of meeting our 21stCentury Cocoa Sustainability Goal of 100% certified and Sustainable supply by 2020. ( 2016 Over 48,000 farmers and 60 % sustainable sourcing) 50 Million Dollar Investment over next Nourishing Minds: Improving the lives of children by developing and supporting manufacturingof daily nutritional supplement. (Reaching over 50,000 kids in Ghana each day.) Rise Against Hunger – Annual event where over 700 employee volunteers pack meal packs tofeed school children. (Over 1 M meals packed in 4 years 285,120 meals in one afternoon) Packaging Sustainability –Reduce 25 Million pounds of packaging by 2025. (3.5 M lb.reduction through new innovative retail ready cases and over 9 M LB. reduction since 2014.) Simple Ingredients: No artificial flavors, no preservatives no artificial sweeteners and naturalcolors. (Milk Chocolate: Kisses, Nuggets, Bars and Simply 5-Syrup) Smart Labels: Goes beyond the printed labels to provide scannable code for quick onlineaccess to detailed ingredient information and certifications. (70 % complete and 90% by 2018).#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Supply Chain ChallengesKey Capabilities Visibility Insights Speed Agility Efficiency Sustainability Scalability#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

VisibilityResults of an IBM survey of over 400 supply chain executives in over25 countries and 29 industries.“70% of the executives stated their biggest challenge was visibility.They don’t have the appropriate level of insight into what ishappening within their operations on the ground-level or on theproduction floor in real time, and this lack of insight hampers theirability to make the right decisions at the right time.”IBM - Driving operational excellence with predictive analytics#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Real Time Enterprise“The Real-Time Enterprise monitors, captures andanalyzes root-cause and overt events that are critical to itssuccess the instant those events occur to identify newopportunities, avoid mishaps and minimize delays in corebusiness processes.The Real-Time Enterprise will then exploit that informationto progressively remove delays in the management andexecution of its critical business processes.”Gartner#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Interest in Time Series Data is Growing#OSIsoftUC#PIWorld 2018 OSIsoft, LLC8

Operational Intelligence MaturityPredictivePredictive ControlReal TimeAnalytics & InsightsResponseOperationalVisibilityPrevent it from happening !Why is it happening?ProactiveMonitoringand AlertingSearch andInvestigateReactiveWhen and where is it happening?What is happening?What Happened?LowMaturityHigh#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Transformation StagesASSESSMENTCreate the blueprintfor a secure andcollaborativeoperation.SECURE & INTEGRATELIBERATE DATAANALYTICSOPTIMIZESecurely integrateIT/OT networks andsystems to moderninformation-enabledtechnologies.Define and organizeoperational data todeliver performancecritical information forbetter real-timedecision making.Transform data intooperationalinformation that canhelp lower cost,increase productivityand improve customersatisfaction.Leverage predictivecapabilities torespond faster toexternal events andchanging marketconditions.#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

IT/OT ConvergenceBusiness ValueAssetManufacturing BusinessIntelligence Intelligence IntelligenceOperationsSystemsDriving Collaboration @ all levels1. Digital Manufacturing Strategic Council2. Digital Manufacturing CoP3. Digital Controls setsMachinesMonitoringControlData AcquisitionIIOTAsset Data(Real tionTechnologyBusiness AppsDigitalInfrastructureNetworkingData AnalyticsCyber SecurityIOTBusiness Data(Transactional)Collaboration#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

ISA-95 Domain ArchitectureGOV.PLATFORMSAP S4HANNAITSAP MIIDMKepwareOT#OSIsoftUC#PIWorldVariousSCADA, DCSand Controls 2018 OSIsoft, LLC

Overcoming Challenges – PI Infrastructure Legacy ControlsMultiple Vendors,ModelsMultiple Logic ModelsVariable ProcessTypes.IIOT PI Interfaces 400 PI ConnectorsPI Developer Tech.PI Manual Logger ManageIntegrate Single Data SourceLow Touch PointsHigh AvailabilitySecurity IT MonitoringHigh AvailabilityUser & Role BasedSecurityTrust TablesAudit TrailData en Architect PI Data ArchivesPI InterfacesPI HAFlexible deployment1,000,000 points.Streaming DataHigh FidelityEvent CaptureData StructureMeta DataData AggregationData AnalyticsBI Integration Open StandardsMultiple Data DeliveryMethodsVisibility ToolsEase of UseAnalyze AF Data AnalyticsAF Element TemplatesAF Event FramesReal TimeEvent ManagementData AggregationReusable#OSIsoftUCDeliver PI VisionPI Process BookPI DataLinkPI Batch View PI OLEDBPI ODBCPI SDK#PIWorld 2018 OSIsoft, LLC

Manufacturing Insight ConsumersStakeholderScopeTimeFocusSr. VP Global Supply ChainEntire Supply ChainYear To Yr.Total Cost to DeliverVP Global OperationsAll OperationsQuarter To Qtr.Global Demand DeliveryVP Regional OperationsRegional OperationsMonth To Mth.Regional Demand DeliveryPlant MangersPlant OperationsWeek To Wk.Plant DeliveryBU LeadersUnit OperationsDay To DaySchedule DeliveryQuality ManagersPlant QualityDay To DayQuality & RegulatorySupervisorsShift OperationsHour To Hr.Shift ExecutionOperatorsLine OperationMinute to Min.Real Time ExecutionMaintenance TechEquipment OperationsSecond to Sec.Asset Performance#OSIsoftUC#PIWorld 2018 OSIsoft, LLC14

Alignment with Objectives and MethodsBusiness ObjectivesPlant Performance ObjectivesManufacturing MethodsHighest Quality, Lowest Cost(Brand Image)Improve QualityReduce Variability6-SigmaHighest Input YieldLowest CostEliminate WasteLeanHighest MarginOptimize Production CostsActivity Based AccountingStrategic Sourcing, Labor Planning,OEE, CIL, Predictive Maintenance.Minimize InventoryImproved Customer ServiceProduce to ScheduleE-Schedule, Dispatching, Job tracking,JIT, Kanban.Schedule Agility and ExpandedProduct Mix, Lower InventoryChange Over OptimizationTime to First Quality PackSMED, JIT, 5S, Recipe Management,Planned Limits.Expanded Consumer BaseFlexible ManufacturingProduce to Consumer RequirementsProduct Lifecycle ManagementReduce Cost of ComplianceConsumer Safety100 % Regulatory Compliance(GAMP, HACCP)E-Quality Task Mgmt.Quality, Food Safety, AIB ChecksCorporate Social ResponsibilityEmissions, Waste, Energy ReductionSustainable Resources/MaterialsUtilities and Energy OptimizationSustainable Packaging, 0-LandfillOrganization EffectivenessE-Task Management,Document Management, CBTSustainable Competitive Advantage(Adapted from ARC Research)#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Hershey Operational Intelligence PlatformsManufacturing IntelligenceAsset Intelligence#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Integration ChallengesObstacles Variability in control data configuration andcoding models.Wide span of both legacy control systems andnewer technologies.Inconsistent data definitions and scaling thatrequire data transformations.Minimizing risk of over tasking the legacycontrol systems.Needed to open up connectivity whileretaining security.Application layer requires a uniform datamodel to simplify integration of MOMplatforms and SAP MII applications.#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Agree on Key Outcomes and KPI’sBusinessPerformancePlant 18Product Margin & CostCost Variance % Utilization% Efficiency% ScheduleConformance% Yield vs STDOEE %% Efficiency% DowntimeIn CountLine SpeedProd. ModeDT ReasonsOut CountProducing StateReject CountNet Weight#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Solution Architecture Multiple VendorsMultiple ModelsVaried ImplementationModelsUnified InterfaceData BufferingOpen Standards Unified Data StorageUnified Asset ModelEvent ManagementReal Time Analytics MOM PlatformsMOM AppsMOM IntegrationPI ACE ServerDTPLC’sDCSSCADAOPC ServerInspectionPI Asset AnalyticsRS LinxsCILMIISAP PiCoPI Data ArchiveOPC ServerKepwareBatchPOGPI Asset FrameworkHAUtilitiesIIOTPI ServerPIOPCRS LinxsIndustrialControlsFacilitiesKepwarePI NotificationsQMOEEPIOPCLOGPI ACE ServerAsset ControlMSSAsset IntegrationAsset IntelligenceMOM Integration#OSIsoftUCPCLMOM & Intelligence#PIWorld 2018 OSIsoft, LLC19

Modular & Flexible Data Services DesignPI AF (Asset Framework) Provides flexible hierarchical object structures with reusabletemplates.Enables the standardization of applications and reporting.Supports real-time, relational and calculated data elements.Supports integrated event and schedule based calculations andrules.Easy to modify and expand as new requirements arise.Easy to create notifications.Supports open integration with a full SDK.Ability to create and track events with PI Event Frames#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Logical Data StructuresPI AF Element Structure Plant/Line/CellMultiple PI AF hierarchies can be created to provide views of thesame data from different users or use case perspectives.PI AF makes it easy to see how the underlaying data, analysis andevents fit into the higher level structures.It provides an easy way for users to navigate the PI System to finddata in the context of the user.PI SDK and AF SDK allow programmatic manipulation of PI and PI AFdata and objects for custom developed solutions.PI DataLink, PI ProcessBook, Web Parts and PI Vision leverage PI AF intheir native UI’s.#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Reusable Data & Event Object TemplatesPI AF Templates AIM Cell Analysis PackML TemplateAllow the creation of reusable data models.Templates enforce standardization.Templates support Parent/Child relationshipsthrough Derived Templates or ReferenceTemplates.Changes in templates are inherited by eachobject instance of an element.Templates simplify administration, maintenanceand changes.Templates are recommended for all elements,notifications and event frames. Support a#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Flexible Data ElementsPI AF ElementsMoulding Cell Element Elements define the data objects for aspecific asset or object. Attributes are defined for all requireddata. Attributes have a data reference settingthat can be relative to tags, otherelements and/or data sources.#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Flexible Real Time Data AnalyticsPI AF AnalysisMoulding Cell – Producing State Analysis Manage process logic Manage data quality Filter data Manage data logic/rules Aggregate data Perform calculations Look up values in AF TablesSolution Create Producing State logic Assign Reason Codes Create trigger tag validation logic#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Reusable MOM Application FrameworkWith PI AF we are able to createuniform data models, performrequired data transformations andeasily support edits and additionsas the plant production equipmentevolves.Russ GreggResult Is Operational Awareness Real Time VisibilityData ContextActionable InsightsMeasured Performance#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Delivering Business Value Visibility “Without visibility you are just wondering in the dark.” Measuring Performance “You cannot improve what you can not measure.” Unified Architecture “Unity brings harmony.” Improvement Methods Support Lean & Six Sigma Operational Excellence Methodologies and Goals DMAIC -Define, Measure, Analyze, Improve & Control#OSIsoftUC#PIWorld 2018 OSIsoft, LLC26

#OSIsoftUC#PIWorld 2018 OSIsoft, LLC

Contact InformationRuss GreggDigital Manufacturing ArchitectIS Global Technology Development & Operationsrgregg@hersheys.com#OSIsoftUC#PIWorld 2018 OSIsoft, LLC28

Solution Architecture 19 SAP PiCo QM POG DT MSS OEE CILInspection LOG PCL Industrial Controls DCS Batch Utilities Facilities Kepware RS Linxs OPC Server PI OPC PLC’s SCADA Asset Control MII IIOT Asset Intelligence MOM & Intelligence Kepware RS Linxs OPC Server PI OPC PI Ser

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