Blog Series: Smart Factory Insights: Opcenter IPL in Action, Part 1

Part 1: Revolutionizing Intra Plant Logistics 

Welcome to our new series, “Smart Factory Insights: Opcenter IPL in Action.” In this five-part exploration, we’ll dive deep into Siemens’ Opcenter Intra Plant Logistics (IPL) solution, uncovering how it’s transforming manufacturing operations for engineers and executives alike. Whether you’re a regular reader of our Engineer’s Corner or new to our content, this series will provide valuable insights into the future of smart manufacturing. 

In today’s fast-paced and flexible manufacturing environment, efficient material flow and inventory management are crucial for maintaining a competitive edge. Siemens’ Opcenter Intra Plant Logistics (IPL) solution addresses these challenges head-on, offering a comprehensive approach to streamline operations and boost productivity through optimal orchestration of the factory intralogistics. 

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The Power of Integrated Logistics 

Opcenter IPL combines production planning, replenishment planning, and warehouse management into a cohesive system. This integration ensures that materials are where they need to be, when they need to be there, reducing downtime and improving overall efficiency. 

Key Features: 

1. JIT-driven processes: Utilizing Just-in-time and Kanban principles, Opcenter IPL automates and optimizes material requests and production replenishment, ensuring a smooth flow of components throughout the production cycle. 

2. Real-time visibility: By creating a digital twin of the inventory, managers and engineers can track material movement and inventory levels in real time, enabling quick decision-making and problem-solving.   

3. Automated/manual transport: Orchestrating the entire material flow, the system supports automated and manual transport methods optimizing the execution of the transport activity with flexibility to adapt to various plant layouts and operational constraints. 

4. Traceability: Track material movement and inventory updates effortlessly, enhancing quality control and regulatory compliance. 

Potential Impact in Electronics Manufacturing 

Implementing Opcenter IPL in an electronics or semiconductor manufacturing environment could potentially lead to significant improvements: 

• Reduction in the overall inventory level leading to less capital deployed and faster inventory turn rates 

• Reduction in cleanroom storage space through optimized material handling 

• Decrease in production cycle time with precise, just-in-time material delivery 

• Improvement in inventory accuracy, reducing component obsolescence and wafer scrap rates 

• Increase in overall equipment effectiveness (OEE) due to streamlined logistics 

Siemens Solutions in Action: A Cross-Industry Parallel 

The power of Siemens’ manufacturing solutions is evident across industries. At Natural One, a Brazilian beverage company, Opcenter APS implementation yielded impressive results ¹ :

• Production planning time cut from two days to three hours 

• Planning horizon extended from 30 days to 12 months 

• Stockouts reduced from 13% to 2% over two years 

These improvements in planning efficiency, strategic foresight, and inventory management showcase the transformative potential of Siemens’ solutions – principles that could drive similar advancements in electronics manufacturing. 

Strategic Advantages 

For executives, Opcenter IPL offers: 

• Reduced operational costs resulting from more efficient intralogistics processes 

• Improved capital utilization resulting from a leaner inventory footprint 

• Enhanced supply chain resilience resulting from flexible intralogistics processes that adapt and align production planning 

For the material manager, the system provides: 

• Detailed insights into material flow resulting from the digital twin of the inventory 

• Optimized intralogistics processes resulting from orchestration of the entire material flow 

• Systematic enforcement of inventory execution processes 

By leveraging Opcenter IPL, manufacturers can transform their intra-plant logistics from a potential bottleneck into a strategic advantage, driving efficiency and competitiveness in an increasingly challenging market. 

Looking Ahead 

In the next installment of our “Smart Factory Insights: Opcenter IPL in Action” series, we’ll delve deeper into the power of reduced side inventory. We’ll explore how this key feature of Opcenter IPL can drive efficiency, agility, and competitiveness in electronics manufacturing. Stay tuned to discover how optimizing your inventory management can unlock new levels of productivity and responsiveness in your operations. 

1. Using Opcenter APS to reduce production planning process from three… | Siemens Software ↩︎