Efficient Plant May 2019 - 21

feature | digital transformation
human error. As a result, instead of being agile,
an organization using ERP is reactive in its
planning.
Another limitation of ERP is a
lack of process-level traceability.
For example, if a plant produces
motorcycles and has to recall a
part, it would have to initiate a
mass recall for all models that
include that part. Product-level
traceability is available with ERP,
but in a limited fashion. When
a manufacturer sells directly to
the end user, it's possible to link
a serial number to the customer. Products sold through dealers
present more of a challenge. With the
IIoT as part of the process, factories that
produce the part and the models that include
it can be easily traced.
It's difficult to map issues and vendors in a traditional
ERP system, and there is often a lack of critical KPI (key performance indicator) integration. Because of the reliance on data
collected from different silos within an organization, ERP is also
often based on outdated master data.
In case of business-process re-engineering (BPR) projects at
greenfield ERP installations, organizations need to collect baseline
data to benchmark the system. Post BPR process, this data becomes
extremely important to ensure there are no deviations or that
deviations are as expected. The information is then used to set up
master data in ERP. In a typical BPR project, such data usually is
gathered through a manual process, which can lead to ineffective
sampling.

HOW THE IIOT HELPS
The IIoT addresses many of ERP's shortcomings. Linking IIoT and
ERP provides a much-needed real-time data feed that offers visibility into inventory and a constant feedback loop.
In a recent analysis of IIoT systems, connecting more than 100
industrial plants comprising 276 projects to date, the Smart Manufacturing Almanac for 2019 revealed that higher and quicker return
on investment (ROI) from IIoT projects can be realized through
integration with backend systems such as ERP.
If IIoT is implemented across the value chain, i.e., OEM, Tier
I, Tier II, and elsewhere, it specifically makes addressing product
traceability and genealogy easier. Every part of the product can be

MAY 2019

traced to its manufacturing roots. As a result, organizations have better control
in the event of product recalls or
compliance audits.
The IIoT also provides
up-to-date master data. This
type of data contains the
key properties of manufacturing elements, including
information on production orders, material types,
planning requirements,
goods issue, and goods
receipts. Typically, once this
information had been fed
into the system, there was no
mechanism to look back and update it, causing a disparity of data,
among other issues. However, the IIoT
provides opportunities to refresh master
data/records to ensure that the information is kept

You're not alone in your
quest for reliability and
maintenance improvement
▪ How did others overcome challenges?
▪ How do I get started?
▪ What new technologies will help?
▪ Who can help me succeed?

Get answers and be the next Reliability
and Maintenance success story!

IDCON Reliability and
Maintenance Conference
September 23-25, 2019
Raleigh, North Carolina

Register today and save $300
www.idconevents.com
+1 919 847-8764

EFFICIENTPLANTMAG.COM |

21


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Efficient Plant May 2019

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