How to accelerate value through the use of OT data

Connecting the PLC to the P&L enables value creation for manufacturing operations

In today’s increasingly digital environment, realtime data from operations technology (OT) is vital to manage operations and create unrealized value. Many manufacturers, however, fail to tap into that data effectively and are unable to:

  • Integrate shop-floor OT (PLCs, controls, sensors) with enterprise-level IT (ERP, etc.)
  • Connect data that typically resides in silos
  • Leverage internal analytics capabilities
  • Connect OT data to business performance
  • Effectively determine standard costs

As a result, they experience high inventory, unplanned downtime, underutilized labor and asset capacity, high scrap rates, or an inability to perform proactive maintenance —all issues that negatively impact the P&L statement and balance sheet.

Comprehensive OT diligence focused on the ability to access and analyze data from your production assets

A recognized leader in technology and operations diligence, West Monroe helps manufacturing companies create value by identifying OT-enabled improvement opportunities. A unique facet of our expertise encompasses significant industry experience coupled with a deep understanding of the operations technology used within a manufacturing facility.

Our OT diligence focuses on the degree to which a manufacturing operation currently uses OT data to create value—and how it could use emerging digital capabilities like artificial intelligence and machine learning to drive down the cost of goods sold and increase manufacturing capacity utilization— improvements that have a direct impact to increasing margin. Because the programmable logic controller (PLC) is the “brain center” for manufacturing OT, we have created a valuecentric framework to accelerate Industry 4.0 maturity. We call it “Connecting the PLC to the P&L.”

During an OT diligence, we conduct a comprehensive plant visit that includes the assessment of:

  • Identifying available OT data
  • Overall OT data strategy
  • Plant OT infrastructure
  • Digital maturity and capabilities for driving capacity utilization, material efficiency, and labor productivity
  • OT/IT integration and convergence architecture w Industrial control system cybersecurity w Reactive versus proactive maintenance and performance analysis
  • Quality and lab management systems
  • Production scheduling applications
  • Cost of goods sold (COGS) analysis w Asset capacity (OEE) assessment

From these outputs, we take a snapshot of the current OT footprint and the ability to manage and optimize value. We then identify, quantify, and create a roadmap of digitally enabled, value-driving solutions that taps PLC-based data to apply machine learning, AI, and predictive modeling to improve performance and create measurable value across supply chain, manufacturing, distribution, as well as field service and warranty operations.

Our comprehensive OT diligence report includes:

  • OT strategy evaluation
  • OT data value creation maturity assessment
  • OT risk and cyber assessment
  • Operational capacity utilization opportunities
  • A roadmap of recommended digital investments to reduce COGS, improve capacity, and optimize the OT footprint

We look at the hardware and software used within a manufacturing plant, including: 

  • Programmable logic controller (PLC)
  • Supervisory control and data acquisition (SCADA) systems
  • Sensors and gauges
  • \Enterprise asset management (EAM)/ computerized maintenance management system (CMMS) software
  • Production monitoring
  • Internet of things (IoT)
  • Manufacturing execution systems (MES)

A stronger P&L and balance sheet

Our OT diligence creates measurable and sustainable value by identifying opportunities to reduce COGS and/or increase overall equipment effectiveness by:

  • Increasing capacity
  • Reducing inventory and costs
  • Boosting labor and asset productivity
  • Improving quality and service levels
  • That translates directly to P&L performance
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