SIEMENS POWER GENERATION Phil Scotson May 02 Power

SIEMENS POWER GENERATION – Phil Scotson May, 02 Power Generation Slide 1

Presentation structure l Company background l ERP system background l Scope of use – defining the interfaces l Interfaces in detail l Conclusion June 04 Power Generation Slide 2

The Organizational Structure of Siemens Business Segments and Groups Managing Board Siemens at a Glance Power Generation (PG) Siemens PG Profile Siemens PG Key Figures Power Transmission and Distribution (PTD) Automation and Control Information and Communication Medical Information and Communication Networks (ICN) Medical Solutions (Med) Information and Communication Mobile (ICM) Lighting Siemens Business Services Gmb. H & Co. OHG (SBS) Osram Gmb. H Automation and Drives (A&D) Industrial Solutions- and Services (I&S) Transportation Finance and Real Estate Siemens Dematic AG (SD) Transportation Systems (TS) Siemens Financial Services Gmb. H (SFS) Siemens Building Technologies AG (SBT) Siemens VDO Automotive AG (SV) Siemens Real Estate (SRE) Regional organization: Regional Offices; Regional Companies, Representative Offices, agencies June 04 Power Generation Stand: 01. 2001 Slide 3

Portrait Siemens at a Glance Siemens Power Generation: A strong number 2 ranking in the global power plant market Siemens PG Profile Siemens PG Key Figures Concentration on fossil-fuelled power generation technology, components, systems and power plants Expertise in power plant and system services Long-term operation and maintenance (O&M) agreements Leading vendor of industrial applications Successful integration of the fossil division of Westinghouse Innovation and technical advancement June 04 Power Generation Slide 4 Power Generation

C. A. Parsons Works Generator Repair Balancing Facilities Blade Manufacture Main Office Block Machining Facilities June 04 Power Generation Slide 5

CA Parsons Works - Facts and Figures Circa 700 personnel Site covers 170, 000 m 2 OEM Status for over 60, 000 MW of plant Fleet in over 32 Countries Worldwide Over 100 years on the site June 04 $ Turnover in excess of $100 million Power Generation Slide 6

First Turbine Driven Generator 1884 First Turbine Driven Ship 1897 First Condensing Turbine 1891 June 04 First 660 MW Turbine in UK 1986 Sir Charles Parsons Founded Parsons Works 1889 First 50 MW Turbine 1922 First Industrial GT in UK 1945 First 500 MW Cross Compound Turbine -1961 First Nuclear Power Station 1953 Power Generation Slide 7

Large complex parts eg Casings and Rotors June 04 Power Generation Slide 8

Production Facilities Heavy Machining Generator Rotors June 04 80 CNC Machine Tools 170, 000 M 2 Covered area Cranage up to 300 tonnes Over 12, 000 Man Years of Experience All Major design types worked on Turbine Assembly Blade Manufacture Power Generation Slide 9

Services to the Power Industry On-Site Maintenance Services Site Management Commissioning Dynamic Balancing In-Situ Machining NDT Technical and Operational Support Design Consultancy Metallurgical Services Technical Advice Spares and Repairs Outage Related Strategic Breakdown Retrofits Efficiency Improvements Life Extension and Integrity Maintainability Improvements Latest Technology June 04 Power Generation Slide 10

Customers – Power Station owners SPG History SPG at a Glance SPG Capabilities SPG Customers & References June 04 Power Generation Slide 11

ERP System background May, 02 Power Generation Slide 12

ERP Implementation plan l Steering group, Reps from all business functional areas l Evaluation process l Change business processes l Big bang implementation l Best fit for business - at the time ! June 04 Power Generation Slide 13

ERP Project Aims - Integrated Business System l Improve planning systems l Better ability to accurately predict, therefore to manage the business l Question and change our working practices as required l Single / correct way of operation (only one version of the truth) l Consistency and complete data l No islands of information l Reduce multiple data entry / increased reuse of data l Single user interface (expert in 1 system) l Get off obsolete / unmaintained databases & hardware l To keep our Business Systems up to date with evolving technology l GUI, potential for E-business June 04 Power Generation Slide 14

Avante ERP Technical details l Avante from software company Epicor l U 2 – Unidata PICK database - multivalue, transactional based l 120 concurrent user licence. l Multi processor server, 4 Pentium 4, 2 Gb memory, RAID discs l Live account = 1 000 MBytes June 04 Power Generation Slide 15

Sample Avante GUI screen June 04 Power Generation Slide 16

The extent of Avanté June 04 Power Generation Slide 17

Scope of ERP use – therefore integrated l Quotations & Sales Order acknowledgements l Order BOM configurations l Material Control l Purchasing, MRP & buy to order l Quality Control, Stock control, Tool mgt l Manufacturing l Work order routings, progress status l Lead time Planning, + feeding details for finite scheduling l Change control & Locking l Project / order management l Costing – standard, budget, actual hours & costs l Shipping / despatch control l Financial control l Supplier invoices, payments, cash mgt l Sales invoices June 04 l All official company external documents Power Generation Slide 18

Out of scope – therefore interfaces to other systems l Engineering – to & from in-house PDM system, future – global PDM l SFDC – to & from in-house timelines, clock card system l Site Operations – to & from in-house system l Payroll / personnel – to & from l APS – Advanced Planning System – finite scheduling module l NB. Non to customers / suppliers via Ebiz June 04 Power Generation Slide 19

Why out of scope ? l Forced l Working within a Global company l Helping implementation, practicalities l By design, optimum use l Better ‘external’ software solution eg APS l External process eg payroll June 04 Power Generation Slide 20

Engineering PDM System interface l In-house PDM simulates future global Siemens solution l To Engineering l Order MBOM configurations l Generic components, required dates & priority order l Changes to dates, emerging extent of supply l From Engineering l Order EBOM configurations l Specific items (parts) with all associated attributes l Changes to items & drawings l Polling for data, every minute June 04 l Token codes dictate process Power Generation Slide 21

Shop Floor Data Capture interface l To SFDC l Work order operation routings – what to make, when, on what machines l Changes l From SFDC l Progress status l Timelines, hours taken l Clock cards, overtime & shifts l Polling for data, every minute l Token codes dictate process l Batch ASCII files manually invoked, schedule time June 04 Power Generation Slide 22

Other interfaces l Site Operations l To Site Ops - Work order routings – for validation @ source l From Site Ops - Timelines, clock cards l Payroll l To Payroll - Overtime & Shifts l From Payroll - Full payroll costs into Financial journals l Personnel l From Personnel - New starters, leavers, movements l APS – Manufacturing Finite scheduling key resources l To APS – outstanding work, estimated hours, earliest start dates l From APS – priority work lists, expected completion dates June 04 Power Generation Slide 23

How the interfaces work l Polling, auto running 24 x 7 l Every minute searching for a file on network drive l First section of each line is a token code l Each code calls specific interface process or simulates a manual menu process l Batch file updates, scheduled day & time or manually control when run l Each line predefined format, usually csv l Error files log any problems l Simulating manual processes, same validations as for users l Populate database records directly l Archive copies held to enable re-runs June 04 Power Generation Slide 24

Positive aspects l Allows split between global & local business systems l Eg global PDM Engineering & local ERP l Allows phased implementations, avoids too much of a big bang l Functionality not yet available, training users l Eg SFDC l Out of scope of the ERP system l Better specialist software used for specific tasks l Eg APS finite scheduling & its what-if scenarios l Remote users, not on network l Eg Site Operations @ Power Stations June 04 Power Generation Slide 25

Negative aspects l Cost of developing l Specification, writing, testing all envisaged permutations l Delays on implementation time schedules l Not moving off legacy systems, not a clean break l Extra links in information chains, PC – Unix, debugging l Ongoing maintenance costs l External bespoke software support l Internal system support June 04 Power Generation Slide 26

Negative example - Avante / PDM interface l Not originally envisaged l Global initiative, optimistic time scales for availability l Costs (man hours) l Internal – defining functional specification, testing l External – detail system spec, writing software l 100 k but capped ! l Delay whole ERP implementation project plan - 8 months l Originally planned (optimistically) 9 months (Oct 99 – July 00) l Actual project time 17 months – live in Mar 01 June 04 Power Generation Slide 27

Future interfaces - XML l Standardised approach l Predefined, standard format of files l Simulates manual menu screen process l Mapping of XML fields to process fields (screen variables) l Designed for Ebiz but wider application l Off the shelf interface solutions !? !? ? June 04 Power Generation Slide 28

Conclusion l Overview of the Avante ERP system at SPG l Large traditional manufacturing industry, global organisation l Other systems - existing, legacy, global, external l Reasons for interfaces to & from ERP l Details on the interfaces l Positive aspects l Negative aspects l But usually critical, KIS - Keep It Simple June 04 Power Generation Slide 29

The End Any Questions June 04 Power Generation Slide 30