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EOH establishes manufacturing systems business unit

MES is viewed as the missing link for tying plant-floor information with business management information provided by applications such as ERP and CRM.
Johannesburg, 04 May 2005

EOH, one of SA`s largest consulting, technology and outsourcing companies listed on the software and computer services sector of the JSE, has established a new business unit called EOH Manufacturing Systems. This unit will provide manufacturing execution systems (MES) driving the effective execution of manufacturing operations.

"To stay competitive in today`s volatile business landscape, organisations with manufacturing operations need to consider internal improvements as a mechanism to improve efficiencies. The key to this improved business performance is often within the factory and its accurate and timely production information. We believe that most manufacturing operations lack manufacturing information systems and should consider MES as a means to drive improvements in profitability," says Ghalib Rassool, EOH Manufacturing Systems, business head.

"It is for this reason that we have established a new business unit focused exclusively on MES within a variety of vertical sectors such as metals and mining, food and beverage, general manufacturing, pharmaceuticals, petrochemicals and automotive."

"The key to EOH`s success has been its ability to `walk-the-talk`. Through the Futuristix and enterprise application business units EOH has the ability to supply technology from shop floor to boardroom. EOH Manufacturing Systems underpins this ability with a deep understanding of what is needed to make the specific technology add value in practice," comments Rob Sporen, EOH executive director.

The plant-wide MES systems supplied by EOH Manufacturing Systems are used to keep track of production schedules, inventory availability, work in progress and a range of other operations management-related information flowing to and from the shop floor.

"MES is becoming an accepted enterprise application to complement ERP, product lifecycle management (PLM), supply chain management (SCM) and customer relationship management (CRM)," says Rassool. "EOH Manufacturing Systems will not only sell its services to the broader manufacturing sector but will also cross-sell into existing EOH business units, adding value and providing another level of service from one of SA`s leading business and technology solutions providers."

Traditionally MES has been used in process industries to support key operational management functions. According to industry experts such as the Plant-Wide Research Group, there has been little effort to collect and make this kind of plant-floor information available to plant managers and to enterprise management systems.

Most supply-chain integration efforts have focused on the deployment of business management applications such as ERP and CRM systems without addressing operational management needs. It`s only by integrating a plant-floor system with the rest of the enterprise that companies are able to get the kind of holistic view that`s needed to support a build-to-order model.

Another factor boosting MES adoption is the growing trend among manufacturers to move to an Internet-enabled business that emphasises low inventories, short cycle times and quick order execution. As a result, there is an increasing need for real-time and near-real-time flow of information spanning plant-floor operations, order entry, planning and scheduling, CRM and financial operations.

"This is where MES is viewed as the missing link for tying plant-floor information with business management information provided by applications such as ERP and SCM," says Rassool.

The tools available to implement MES type solutions typically require specialist skills. For this reason, EOH Manufacturing Systems will use the Wonderware Industrial Automation Software products as its basis for delivery. Wonderware is in use by the vast majority of manufacturing companies at "shop floor" level and offers excellent expansion facilities into the MES environment. EOH Manufacturing Systems has the specialised skill set to deliver huge value in these Wonderware environments and will provide information from the factory floor to plant managers in real-time.

Manufacturing operations is often the last concern for management even though it may have the greatest impact on results. To remain a viable industry worldwide, manufacturing executives need to understand the opportunity to greatly improve business performance using MES.

"While enterprise applications help measure financial performance, MES can drive improvements in profitability," concludes Rassool.

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EOH

EOH is a business and technology solutions provider creating lifelong partnerships by developing business and IT strategies, supplying and implementing solutions and managing enterprise-wide business systems and processes for medium to large clients.

EOH operates in the following three clusters of business units as a fully integrated business:

Consulting - Concentrated under the EOH KPMG Consulting brand are business units offering services ranging from strategic and business process consulting, project services, change management, supply chain optimisation and education.

Technology - Through a number of subsidiary companies, EOH is able to sell, implement and support a range of world-class business applications including ERP, CRM, business intelligence, advanced planning and scheduling, e-commerce and manufacturing execution systems (MES).

Outsourcing - EOH offers comprehensive maintenance and support of clients` IT infrastructure and applications through the rendering of full IT outsourcing, application hosting and managed services. In addition, EOH offers full business process outsourcing (BPO) services.

EOH has a presence in all major centres in SA and Botswana, and operates in the rest of Africa.

EOH Manufacturing Systems

EOH Manufacturing Systems is a wholly owned subsidiary of EOH, a JSE-listed business and technology solutions provider. Focused on the supply of manufacturing execution systems (MES), EOH Manufacturing Systems provides Wonderware focused solutions aimed at delivering information from the factory floor to plant managers in real-time. These plant-wide MES systems are used to keep track of production schedules, inventory availability, work in progress and a range of other operations management-related information flowing to and from the shop floor.

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