Walt Staehle October, 2005

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Revolutionizing Food Quality Leadership How MES
brings leverage to building, protecting and
advancing Food Brand Equity
Walt Staehle October, 2005
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Food Industry Trends Food fitting the ways
people live

• Convenience
• Health Wellness
• Personalization
• Smaller Households
• Growth of Ethnic groups
• Aging population
• ?Taste, nutrition, value and variety!

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Complex Food Industry Issues

• Nutrition, activity and health
• Food Biotechnology
• Agricultural supply chain
• Environment
• ? Sustaining the publics trust!

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Information is a Brand-building imperative

• The core elements that define a brand should
  remain consistent over time
• positioning, benefit ladder, essence equity
• Information provides the convincing proof and
  attributes that support the Point of Difference
  and make the Point of Difference believable to
  the target audience!
• emotional leverage
• values associations
• vivid articulation of user relationship
• history consumer credentials

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Converting Information into Action generates
Value
Creating Value Deliver undeniable consumer
equity and customer satisfaction with business
tools that drive growth and provide sustainable
competitive advantage Protecting Value
Systems, policy and work practice leadership
that set industry standards while delivering
superior quality products that are the foundation
of customer satisfaction
Create Protect Value
Category Leadership
Information Action
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Risk communication is a Brand-building Imperative

• Risk Hazard Outrage
• problems are worse than actually arereputation
• problems are better than actually areL/T damage
• A brand promise can be unmasked as a shallow
  boast at almost any point during a customer
  experience
• Making Every Employee a Brand Manager, Heaton
  Guzzo
• Actionable info is needed, especially to leverage
  Ownable Elements that consumers can hear see
  as well as taste

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Building Brand value with Information and Action
Brand Cost Strategies
Brand Quality Strategies
Create Value
Cost

• Value
• Superiority
• Consistency
• Safety

Cash
Fuel growth To protect the Franchise
Protect Value
Brand Strategies enabled by MES Systems
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MES systems create new Category capabilities
Innovation
Globalization New Markets Superior
Products/Services Relationships Business Process
Re-eng Personalization
Knowledge / Action Thru Integration
New Category Capabilities
Speed Synchronization Predicting vs.
Reacting Common Bus. Models Competitive
Advantage Creating Value Partnering Interoperabili
ty
Information
Speed Flexibility Reaction/Response Access Insight
/Knowledge Intelligence Protecting Value
Data
Education
Practices
Infrastructure
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New capabilities accelerate Brand Vision

• 
  Maximize
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  Shareholder value
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  Divest
• Harvest
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  Extend

Category/Share Leadership
Superiority
Consistency
Create Value Protect Value
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MES Systems linkage to Brand Vision
Superiority
Consistency
Protection
Value
Strategies
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Ensure product specs are current, appropriate,
and available to all stakeholders.
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Ensure compliance to all specifications.
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Provide a collaborative/integrated environment
for suppliers.
Provide user friendly tools, education, processes
and work practices to the workforce for
information sharing and empowerment to
effectively manage plant processes.
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MES Systems linkage to Brand Vision
Superiority
Consistency
Protection
Value
Strategies
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Turn data into information that is actionable.
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Identify consumer critical attributes and provide
meaningful measures against them.
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Make manufacturing data easily available to all
stakeholders.
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Optimize the manufacturing process based on
policy, consumer preference, customer feedback
and cost.
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Interoperable supply chain optimize hold and
product traceability processes using
manufacturing data.
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A Vision for the Future SIEMENS MES Solution
SIMATIC IT Framework
CustomerSpecific Configuration Libraries
Industry Suite Libraries
ERP Enterprise Resource Planning
SIMATIC IT Framework
SIMATIC IT Libraries
MESManufacturing Execution Systems

• SIMATIC IT Production Suite
• Framework Includes Business Process Modeler,
  Production Operation Recorder, Equipment Manager
  and Services
• Production Order Manager
• Material Manager
• Messaging Manager
• Personnel Manager

3rd PartyComponent
SIMATIC IT Optional Components
SIMATIC IT Interspec
SIMATIC IT Unilab
SIMATIC IT Historian
Automation
SIMATIC IT Framework and Components
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SIMATIC IT architecture

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Product Quality - Traceability

• A single incident of product contamination can
  put a Food and Beverage company out of business
  or destroy a brand name that took years to
  establish
• Global companies are adopting more rigid product
  recall procedures that require customer
  notification within 2 to 3 hours. This means all
  lots must be identified, traced to their final
  destination, and notifications delivered 2 to 3
  hours after a product is identified for recall

• Traceability records are more than just an
  insurance policy.
• They are part of a complete quality and safety
  assurance program that provides many economical
  benefits, such as
• improved time to market,
• product value optimization,
• improved plant management,
• improved delivery performance

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MES Functionality Product Tracking Genealogy

• Material ManagementTracking of Material and
  Resources throughout the complete production
  from raw materials to finished goods. Management
  of Material Transactions Execution on the shop
  floor complementary to SAP (ERP).
• Batch information managementCapability of
  tracking each batch in process with a view on the
  status of materials consumed against recipes,
  estimated time to completion, etc.
• BOM management On-line Bill of Materials
  availability to be used by operators to verify
  completeness of job lots, work orders, etc.
• Barcode Scanning, Label and ticket printingall
  Material transactions are entered manually (key
  board, hand-held scanner) or automatically.
• Packaging Palletizing, Compliance
  LabelingGraphical Label design for various
  formats and Industry standards e.g. EAN/UCC and
  SSCC RFID Labelling

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SIMATIC IT Material Manager
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Want to Track all materials in your plant and
create a detailed product Genealogy?
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SIMATIC IT Material Manager functionality
SIMATIC IT MATERIAL MANAGER
Material tracking movements, consumptions,
transformations, split, merge, ......
Material genealogy backward, forward
Material quality
Bill of Materials (automatic rescaling, versions)
Locations management (detailed as needed, inside
the Production area)
How can I use the same product in order to store
data about
Oil
Fruit Yogurt
density
pH
temperature
Fruit
Best before end date
supplier
Material properties
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Track / Trace Genealogy

• The Bill of Materials is the basis of the product
  specification and describes the topology of
  production

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Track / Trace Genealogy

• As SIMATIC IT Framework executes production,
  Material Manager keeps track of material
  movements and transformations

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SIMATIC IT Value proposition

• SIMATIC IT
• Manages the business production processes
• Rule based modeling based on ISA-95 standard
• Enables Tracking, Tracing and Genealogy
• Integrates full quality, production product
  specification managementinto the manufacturing
  process
• Unlocks the real value of ERP systems