gaining business excellence by leveraging plm platform

Gaining business excellence by leveraging PLM platform

www.selerant.com

Information confidential to and copyright protected by Selerant.

A Brief Introduction to Selerant & DevEX Platform DevEX PLM Solutions & Benefits Typical Cases Analysis of PLM Benefits based on Design Chain Operations

Reference-model (DCOR) Q&A

Outline:

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A Brief Introduction to Selerant & DevEX

Platform


Selerant was established in 1990. It is the first company in the globe specializing in providing MSDS software. It has an experience of 20 years in providing DevEX PLM, a recipes R&D and regulatory compliance management platform, which is specifically used for food & beverage industry, cosmetics, specialized chemicals, pharmaceutical industries, etc.

Globalized Innovation & Service Network • Selerant is headquartered in Milan, Italy • Its R&D centers are located in Milan, Italy, and New York, U.S. • It’s service stretches as far as China, India, Spain, France, Germany, and Switzerland.

Selerant was rated by Gartner, an internationally well-known IT research agency, as the most valuable solution provider for food, spice & perfume, and beverage industries; Serelant was one of the 500 most increasingly developed companies in 2010 according to an investigation by Inc., a U.S. magazine.

Boutique from Italy

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Development Expedite


Major Clients

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Wrigley candy, Stegeman food, Corton’s wines, Diageo wines Puig makeup, Sherwin Williams paint ISP chemicals, David Michael edible flavor, rohmihaas resin viscose, Akzonobel paint coating and special chemicals


Chinese Environment

DevEX: A PLM Solution to Recipe R&D and Regulatory Compliance Management

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Project & Process Management Management of Recipe Design,

Experiment, and Sample Development

Management of Raw Materials, Recipes, Product Specification,

and Data sheet

A Database of Legal Regulations on Food Industry from the Globe


Operation Logic

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Project

New Era Chocolate

Trial2

Trial recipe 2

Exp. RM

Sweetener 2

Sub Project1

Hazel Taste

Experiment1

Adding Sweetener 1

Substance

TGS

Sub Project2

Almond Taste

Experiment2

Adding Sweetener 2

Trial1

Trail recipe 1

Raw Material

Sweetener 2

Batch

Trial Production Specification

Specification for Raw Materials of Sweetener

2

Sample

Sample 1 Specification

Recipe sheet Recipe

Recipe for Hazel Chocolate

Specification

Colored label

Guideline

Legal Regulations for Additives

recipe=Raw Materials + Compositions Recipe=Raw Materials+Compositions+Technological Process

Product Requirement

Agreeably Sweet Specification

Product standard

Specification

Process flow chart

Batch

Trial Production

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TGS (also called sucralose )


Selerant’s Regulatory Research and Science Affairs Team aims at providing clients with structured legal regulations for food industry, solution for regulatory compliance management, and cloud service.

Selerant timely updates database of legal regulations for convenience of clients • Covering more than 100 countries and regions; • Containing more than 1,500,000 structured entries. • You can search for specific limiting values, the original legal texts, and origin of the texts.

The Database covers legal regulations for • food addictives, food contaminants ( residue of pesticide or veterinary drug, heavy metal

contamination, food-borne mycotoxins, etc.), microbiological indicators, range of application and dosage of nutrition enhancers, guide for labeling as well as templates, guide for labeling allergens, food contact materials, etc.

Database of Legal Regulations around Globe

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Structured Legal Regulations

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Food Addictives: • GB 2760-2011 Standard for Use of Food Addictives and Subsequent Updates

Nutrition Enhancers • GB 14880-2012 Standard for Use of Food Nutrition Enhancers and Subsequent Updates

Contaminants: • GB 2761-2011 Fungal Toxins Limited in Food • GB 2762-2012 Maximum Levels of Contaminants in Foods • GB 2763-2012 Maximum Residue Limits for Pesticides in Food • Aattachment to No.235 Announcement of the Ministry of Agriculture:

Veterinary Drug Maximum Residue Limits in the Food of Animal Origin Labeling:

• GB 7718-2011 General Provisions for Labeling of Pre-packaged Food • GB 28050-2011 General Provisions for Nutrition Labeling of Pre-packaged Food

Database of Legal Regulations from China Mainland

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EcodEX: Solution to Eco Design

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Farming Food Processing

Transportation Marketing Food

Consumption Recycling of Food Waste

Information on Carbon Emission and Consumption of Water, Electricity, and Other Energies


Our Advantages:

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Service of Providing Legal Regulations for Food Industry over the Globe The database contains more than 1,500,000 structured entries from about 100 countries and regions including the China mainland.

Combining different business modes like B2B and B2C The communication with consumers (for example, labeling) and management of demand of

special clients (for example, sample presentation) can be simultaneously satisfied.

Cutting Carbon Emissions, Saving Energy, Reducing Emission Selerant is known internationally for its life cycle assessment (LCA) algorithm; the product data may be used directly.

Not only Specialized in PDM, But in PLM Besides specializing product data management, Selerant is more skillful in product lifecycle management.

Global brand with strong local team Selerant has hundreds of industrial consultants and technical staff devoting to research on PLM.

DevEX PLM Solution & Benefits


Product Lifecycle & PLM Software

产品生命周期 PLM Software

Mass Production

Marketing/Sale

Procurement of Raw Materials/Confirmation

Testing/ Packaging/Labeling

Market Research

Product Design & Development After-sale Service

Ideation

Project Management

Portfolio Managem

ent

Com

pliance Managem

ent

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Legal Regulations Religious Belief & Customs

Operation Blueprint of PLM & ERP

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Raw materials confirmation

Client Demand Recipe Design

ERP

PLM

Intangible Assets Virtual Products

Tangible Assets Real Products

Procurement of Raw Materials

Order Forecasting


Base for Innovation: Product Lifecycle Management

Project Portfolio Management

Database of Raw Materials, Packaging Materials, Manufacturing Processes, Products, and Legal Regulations

Management Decision

Project Assessment Indicators

Stage Report

Decision for D

evelopment

Staged report

Decision for D

evelopment

Staged report

Decision for D

evelopment

Stage Report

Developm

ent Decision

R&D Process and Project Management

Defining Project

Requirements

Feasibility Appraisal

Designing Recipes

Small/Medium/Large Trials

Mass Production/ Marketing

Recipe Development, Regulatory Compliance and Labeling Management

BOM Recipe Manufacturing Process

Product Technical Texts

Inspection Documents

Technical Requirements for Raw Materials

Recipe Test

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Stage-Gate Theory

Scoping Building Business

Case Develop

ment Testing

and Validation

Launch

Discovery

Post-Launch Review

Idea Screen

Second Screen

Go to Develop

ment Go to

Testing Go to

Launch

- 17 - Source: Product Development Institute Inc.

Cooper


Managing Traceability & Regulatory Compliance of Food

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Product & Project

Planning

Recipe Design & Testing

Recipe Optimization

R&D to Mass Production

Post-launch Maintenance

1 2 3 4 5

Opportunity Discovery

Conceptualization

Feasibility Appraisal Designing Validating

Mass Productio

n Launch Appraisal

G1 G2 G3 G4 G5 G6 G7

Database of Legal Regulations

Information confidential to and copyright protected by Selerant. - 19 -

Stage I: Product & Project Planning (1/2)

Specifying project tasks, work process, and approval authority;

Specifying target market of the product as well as target clients;

Specifying legal regulations, religious belief & customs (such as vegetarianism, Islamism), and demands of the clients for the product;

Making R&D demand report; Seeking supply of new raw materials and

packaging materials; confirming suppliers; Searching for testing items for raw materials

from Selerant database of legal regulations for food industry.

Product & Project

Planning

Recipe Design & Testing

Recipe Optimizatio

n R&D to Mass

Production Post-launch

Maintenance


Stage I: Product & Project Planning (2/2)

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Specifying project tasks & team member dispatch management.

Suppliers provide data of raw materials/packaging materials through an Excel template.

The Excel may directly imported in the system, free of errors from repeat typing.

Confirming indicators of raw materials needed to be tested.


Stage II: Recipe Design and Testing (1/4)

Screening and planning the compositions of raw materials of recipes from the list of raw materials the company recognizes, and simulating the chemical and physical influence of each manufacturing process.

Besides the composition proportion, manufacturing processes may be simultaneously managed.

The recipe cost and nutrition data will be inspected at any time, and they should conform to legal regulations/specifications.

The data regarding recipes can be reused after recorded.

Product and Project

Planning

Recipe Design and

Testing Recipe

Optimization R&D to Mass

Production Post-launch Maintenance



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With a recipe editor, the compositions and composition proportion will be recorded. The cost and nutrition data will automatically come out from the system.

Record manufacturing processes by using a recipe editor.

The loss factor in the condition of special technology or variation logic in other physical and chemical conditions can be set.

Inspect the recipe in the view of input or output.


The database of legal regulations is used to automatically inspect and test that recipes conform to specifications for additives.


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The database of legal regulations is used to automatically inspect and test that recipes do not conform to specific claims.


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Stage III: Recipe Optimization

Simulate the raw material compositions of recipe optimized according to a single objective or multiple objectives like cost, energy, and nutrition components.

Targeting different target markets, establish alternative recipes according to optimization results.

Create globally universal optimization recipes in the condition that legal regulations/specifications of several target markets or other needs can be met.

Product and Project

Planning

Recipe Design and

Testing

Recipe Optimizatio

n

R&D to Mass

Production

Post-launch Maintenance


Stage IV: R&D to Mass Production (1/2)

Create product standards;

Automatically create product labeling contents according to legal regulations/specifications of target markets, such as ingredient list, nutrition fact , allergens, etc.;

Automatically create recipe tables;

Automatically create manufacturing process tables;

Translate labels of multinational languages;

Check product specifications.

Product and

Project Planning

Recipe Design and Experimen

ts

Recipe Optimiza

tion

R&D to Mass

Production

Post-launch

Maintenance


Stage IV: R&D to Mass Production (2/2)

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Each department inputs information on labels it is responsible for.

To create a ingredient list according to specified specifications.

To create a nutrition fact according to specified specifications.

To create an manufacturing process report for factories’ compliance.


Stage V: Post-Launch Maintenance

Create the report tables regarding influence range when legal regulations/specifications change;

If calcium peroxide is banned by State Food and Drug Administration, the recipes and product labels shall be modified; the sources of meat products supply should be located as a consequence of any clenbuterol event.

Massively modify recipes or product labels. Simulate the situation of alternative raw

materials and production in different factories.

Product and Project

Planning

Recipe Design and

Testing Recipe

Optimization

R&D to Mass

Production Post-launch Maintenance


Supporting HTML5 technology; Having faster operating speed; Providing better browsing experience

(multiple tabs, customized layout, customized fields, customized widget, etc.);

Realizing more flexible project and workflow management;

Presenting better regulation search interface;

Providing more powerful approval functions;

……

Release of Edition 3.0

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You may register and have a free try via accessing the website http://compliancecloud.selerant.com/

Selerant Compliance Cloud

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Typical Cases


Business Challenge (1/2)-High Complexity of Product Innovation

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Innovative Taste VS.

Cost of Raw Materials

Globalized Recipe Vs.

Localized Legal Regulations

12,000 recipes 26,000 product labels

Marketed in 140 countries 280,000 staff

6 R&D centers 12 technical centers

200 factories


Business Challenge (2/2)-Falling over Severely in China in 2005

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Event Introduction • Zhejiang Industrial and Commercial Bureau had a casual inspection to infant food in Wenzhou, Ningbo,

and Huzhou before the Children’s Day of 2005. • According to the casual inspection report, the Iodine content in the milk powder for children over the

age of three produced by the Company exceeds that specified in the national standard. • According to the national standard, the Iodine content in every 100g milk powder should range from 30

to 150mcg, while the Iodine content examined from this product is 198mcg. Experts pointed out that excessive intake of Iodine will cause thyroid enlargement, and it is easier for children to get this illness than adults

Reason • The R&D personnel mistook in the proportion of iodine, and the quality of raw milk fluctuated.

Effects • Company N published apology statements and recalled related products. • Economic losses were estimated to exceed RMB 800 million Yuan.

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Business Process Improvement

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Production Definition

RecipeBrief Declaration &Regulation Recipetion

SAP R/3

Labeling

Standardization / Optimization

MES & SPC

Recipetion 1 2 3

To be developed

Project

Recipe

DevEX™

Raw material/Specification

System went live according to different product categories.

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PS = Project Systems


Overall Benefits

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Increase profits by 30% - 50%

Reducing cost by 10%-40%

Increase efficiency by 25&-50%

Developm

ent cost

Sales profit

Time

• Managing over 140 sales markets around the globe and 700,000 product specification data;

• Redesigning 1,500 recipes; • Approving and validating over 10,000 kinds of recipes

and market portfolios; • Create over 200,000 data concerning structured legal

regulations.


New Application Direction: Consumer-Oriented Labeling System

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http://btl.nestle.co.uk/7613033593673/LC00000635-0/home


New Application Direction: Product Innovation and Environmentally Sustainable Development

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Analysis of PLM Benefits based on Design Chain

Operations Reference-model


ERP-Related Supply Chain Value Activity

39

Plan

Source Make Deliver

Plan

Source Make Deliver Source Make Deliver

Plan

Production capacity planning

Material planning

Order forecasting

Sales forecasting

Customer relation management

Main production schedule

General order

Online order

Management of manufacturing site

Purchase requisition

Procurement

Receiving/inspecting

Sourcing

Payment

Long-term production capacity

Report Management

Non-transaction-oriented process/system

Transaction-oriented process/system

Sales management


Connection between Design Chain and Supply Chain

Plan

Research Design Integrate

Amend

Small/medium/large Trials Mass production

Plan

Source Make Deliver

Return Return


Five Performance Classifications of Design Chain

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Classification Meanings Reliability Correct product and process design, to satisfy

quality and time requirements Responsiveness Designing and integrating new speed for

products/services Agility Response to events falling out of plans

(including external effects and quality problems) Cost Managing relevant cost of design chain Assets Managing the effectiveness of assets of design

chain, to support the design and integration of new products /services


Performance Indicators of Design Chain

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Classification Performance Indicator Possible Reason Reliability Saving procurement cost of raw materials Scale economy brought about by sorting out and

integrating raw materials Reliability Saving procurement cost of packaging

materials Scale economy brought about by sorting out and integrating packaging materials

Reliability Reducing recall cost and lifting the brand value

Promotion of quality and regulatory compliance

Reliability Saving raw materials in the stage of mass production

Conforming raw materials may reduce the probability of repeated jobs

Reliability Lifting utilization ratio of production lines Good product design may reduce the production downtime

Responsiveness Lifting sales performance (fast launch) Reduction of cycle time for product design, etc. Responsiveness Lifting decision-making efficiency More accurate information Agility Reducing cost of recipes Continuous optimization of recipes Agility Improving product portfolios Reduction of quantity of recipes in particular markets Cost Saving annual IT cost Integration of IT systems, elimination of old systems Cost Saving cost of data maintenance Data cleansing and integration Assets Lifting R&D productivity More automated operations, less manual operations Assets Reducing ineffective labor hours Knowledge sharing, easy acquisition of information

Exercise

Thank You for Listening!

www.selerant.com

gaining business excellence by leveraging plm platform

Food

recipe rd

product specification

additives recipe

raw materials of sweetener

plm platform

food industry

globe information confidential

raw material sweetener