How CPGs Like L'Oreal are Introducing Global Efficiencies in Manufacturing

Today's CPGs need an intricate manufacturing tech stack that is easy to use and can keep up with the growing complexities of consumer goods supply chains. In this CGT webinar transcript, Francois Moran and Mike Bradford of Dassault Systèmes, explore how manufacturing operations management (MOM) platforms are helping consumer goods companies use real-time data and analytics to increase visibility into production processes and improve the accuracy of decision-making capabilities.Their product solution demonstration showed how CPGs like L'Oreal have deployed MOM platforms to better integrate global operations and introduce consistency in production, improve quality, and implement full global product traceability. Liz Dominguez: Hi everyone and welcome to “How to Unlock Efficiency in Consumer Goods Manufacturing.”Kicking us off on this discussion is Francois Moran, business process expert for the WW network of sales and tech-sales in the CPG and FMCG area, and Mike Bradford, Delmia, strategic business development and marketing director, both with Dassault Systèmes. Francois and Mike are going to give us a little bit of background on themselves, and then they have prepared a video presentation for us, so I'm now going to pass it to them.Francois Moran: Hello, everyone. This is Francois Moran. I wanted to introduce myself quickly. So I've been working for the Dassault Systèmes, and before that, for appraisal. Since 2003, I've been implementing appraisal solutions for 15 years on 10 to 15 projects, and since 2018 I am responsible for capitalizing on MOM and scheduling best practices and business capabilities, so these last two years, more specifically on food, cosmetics, and other fast-moving goods industries. I'm very happy to be here with you all today.Mike Bradford: Thank you. My name is Mike Bradford. I am primarily focused on the Delmia manufacturing operations management solution, and I realize that as I have a marketing title — don't let that scare you. I've only been in marketing for a couple of years. My background is more in the business consulting side. I have about 18 years of ERP experience and about 20 years of MOM experience with various platforms and solutions. The last 18 years, I've been working with Delmia. So very excited to be here today; looking forward to sharing my information with you. Thank you for joining us as we talk about how to unlock efficiency in consumer goods manufacturing. Our agenda today, we'll talk about industry, landscape, what Delmia is and what MOM is, and the challenges that we help you solve. We'll give you some stories about capabilities and show you some real benefits from real customers. And then talk about new business and technology spaces. With that, I'm going to turn it over to Francois.Moran: Thank you, Mike. So we wanted to map on this slide the new challenges that manufacturers are facing in the CPG area. And in fact, they are not that new. They are pressured topics that everyone needs to work on. Many of them will be able to be solved by implementing systems in general, but some of them, in particular, will be completed and solved by involving manufacturing systems, like innovating on products. You will have the need to implement new ingredients, and new recipes, into your product, and the manufacturing systems will help you better define, configure, and smooth the execution of these new recipes onto the shop floor. Regulatory compliance is all about traceability, and labeling quality controls on the production line. These increased regulations are also supported by manufacturing execution systems helping you drive those regulations faster to the shop floor and adapt to new regulations by configuring the manufacturing system to solve new expectations of sustainability, obviously, by being aware, as the consumers are, of your carbon emissions, of the energy that you consume. The manufacturing execution system will help you monitor the energy consumed by your machines, monitor the labor efforts from your people, while moving on logistics goods through the shop floor, while collecting, sampling, and running lab operations — all of this consumes energy and carbon, and the system will be able to through the dashboards to tell you all about it. Production is getting more complex because of the need for a personalization of what you want is being produced with more and more variance. So again, this joins the recipe concept. But in general, we are in need of new technologies, new processes, new machines on the shop floor. And the machines are in direct connection with manufacturing systems. In order to get data and to facilitate the transition between production orders on the shop floor — and to fasten the setup of the machines in order to produce more efficiently, with some local specificities like skills and languages, but also from the supply of your goods — you will have new or local ingredients that you can find only in one region, for example. So the system will have to adapt to those from the logistics production and quality perspective and do more with the same resources, or even fewer resources. When it comes to energy, it is all about the global optimization of your production execution. What our customers are asking is, “How do I produce new products and get them to the market more efficiently?” We will see in the rest of the slides how we can address these challenges with the Delmia solutions. “How can I improve my operations?” This is directly related to the results of smooth execution of the production to the quality controls of the warehouse operations. And “How can I increase my production efficiency, reduce waste, reduce scrap?” This is by the best usage of my equipment, of my quality specifications and controls. And then “How can I adapt my old plants?” We will see some examples of how we can connect equipment to or run manual operations in order to compare facilities. For old plants that are less automated or more manual, we can probably run an evaluation of the best investments for improving the equipment with more sophisticated resources to run smoother and be more sustainable. Let's take a look at an introduction about Delmia and MOM with Mike.Bradford: Great, thanks, Francois. So Dassault Systèmes is one of the 10 largest software companies in the world, with almost 24,000 people, 17,000 partners, and 350,000 plus customers — very long-term-driven and very purpose-driven. We say our purpose is combining art, science, and technology for a more sustainable world, and that sustainability is really core to our values. It's driven from the CEO and chairman of the board down through the entire organization. So that sustainability piece is key to who we are and what we do. We cover under the 3D experience platform that covers 12 different brands, and as you can see here, it's kind of laid out in a compass format, where the North side of the compass is social and collaborative, the West side has modeling applications, the South side is simulation applications, and the East side is information intelligence applications. Those applications work across 12 different industries, including, obviously CPG, where we're talking today. Now our focus today is going to be the Delmia brand, which is a global industrial operation and really it's under the simulation quadrant of the compass. But it really covers more than simulation. It is all of the manufacturing piece. So manufacturing, think recipe management, think planning and execution — all of that falls under the Delmia brand. What is Delmia? Appriso first. It's a MOM solution — manufacturing operations management — and it's more than just MES. It's a global manufacturing platform that gives visibility, control, and synchronization for your global manufacturing operations. MOM is much broader than MES. So if you look on the left here, these are the seven key components that are part of the Delmia solution. We have production that's traditional MES capabilities, so think machine connections, work instructions, collecting production data, and so forth. But we also have quality fully integrated into the process. We have maintenance, both in-house, in-plant, machine maintenance as well as field maintenance, and manufacturing process intelligence. Think analytics and reporting, again, an inherent part of the solution, time and labor, which can include skills tracking, so you make sure that you can ensure that the right people are doing the right jobs. Systems and machine integration. Think about IoT and the ability to connect to really any device inside or even outside the plant. And then finally, warehouse management, which a lot of people wonder, why warehouse in an MES or MOM solution, but warehouse enables you to synchronize your material supply in real-time to what's going on on the production floor. Because since we have that production module, we have that visibility right down to the step level and what you're doing on the shop floor. And all of this is built on what we call a business process management-based solution. Think low code environment. That's kind of the new terminology for business process management. So a low-code environment, but it's not just a toolkit. We have 1,500 business components that you configure into a solution that meets your unique needs, but it's all on a unified data model, a single predefined data schema, using unified architecture processes and user interfaces. So you can even configure that user interface to make sure that it is easy to use, according to your definition of ease of use, and it fits in the ISA 95 model. If you look at the ISA 95 model, there are five levels, starting on the floor with sensors and actuators, then into PLCs and SCADA, and then MES/MOM in the middle. And that is exactly where Delmia sits. That's where our manufacturing operation management solution sits. And then we feed up into ERP and PLM with two-way communication at both of those levels.Moran: If you look at the global landscape that we traditionally implement on our manufacturing projects, Delmia is indeed connected to the ERP and to the machine layer, the manufacturing solution can be connected to the PLM of Dassault, which is the 3D experience platform, and the planning systems of Dassault Systèmes. I'm going to take the example of the scheduler here, which will help you schedule the production orders on the shop floor. This is typically where exchanges between an APS and BOM system, like Delia Brazil, orders are coming from the ERP machine data collection, like production counters machine states or quality or process data coming up to the Delmia abrazo. Everything that is master data product master data recipes and quality specifications will likely come from the PLM definition because this is product-related. All of those three main software on the shop floor will cooperate together in order to ensure smooth execution, smooth planning, and smooth data management. With appraisal, there is a full capability to connect to the machine layer, as we mentioned, and here you have an example of machines that you may have or that you will have in the future, that's for sure, like Lydd, printing, robots, scatter systems, smart tools or process test benches, quality measurement kind of tools you can connect those machines and see and level two systems to Apprisso, the machine integration, which is rather utilizing OPC or TCP kind of protocols. But you can also use appraisal business integrator, which is another module that will help to exchange CSV files, XML files, and JSON files using different types of web services. Message buses will help you to bring the data to the appraisal database or to cubes, from the perspective of building a kind of data warehouse, and to use this data inside appraisal screens or inside the appraisal logic. I wanted also to give you a few examples of integration use cases between a MOM system and a scheduler, for example, those are business use cases. Maybe you have faced some of them already, which is related to a late inbound delivery of an ingredient. We have to reschedule the planning. There is an unexpected quality, non-conformity, there is a non-planned maintenance. Those are all good cases of an unplanned, emergent event that needs to reschedule the planning. So to postpone or to anticipate production orders, to dispatch them to other equipment, to assign them to different people. Those are good examples and typical examples when we implement an integration between MOM and the scheduling system, Appriso will be staying in different departments, available to different roles. We can see here logistics using a tablet in order to report and to get the right information about the picking request, and the replenishment request, but you can also have, in the laboratory, in the quality space, information about the quality controls that you have to perform — and even the SPC charts of your control limits along the production I would say. But other types of screens would involve more dashboarding and monitoring control towers with such KPIs as production counters, the total stoppages of the day, and the total scrap quantities declared. So you have with Appriso, a very flexible UI that will bring you the right KPI and the right data at the right place. Let's take a look at the challenges that we typically solve on the shop floor. So here you have the traditional shop floor of, let's say food or cosmetics manufacturing companies, from receiving to shipping. So we go from receiving to storage. Storage, the goods will be weighed. So there is a weighing station in order to prepare for the production of the bulk. Then there is the packaging stage, which will be dropped into the staging location for being delivered to the customer into the trucks. When we talk about challenges, typical challenges will involve the information about sharing with SAP the right amount of data, like produced quantities by type, so good fail or scrap parts, plus the effort that was spent to actually calculate the real cost. That's one of the big advantages of the MOM system is to calculate the real costs of the operations. Other nice improvements for the shop would be to go paperless, basically, and provide computers or tablets to the people in order to follow up with the order execution with less paper on the shop floor, analyze cycle times, monitoring continuously for improvements. And a few examples also that we hear most of the time is “How do I improve my traceability?” So the traceability from the perspective of which ingredient goes into which lot, which batch that is being produced, and from the recall perspective, so in case there is a problem with the customer calling for containments, the ability to contain exactly and not more, what is suspected to be to be put on hold after quality, non-conformance, for example. Others involve things related to the availability of raw material, the variability of the quality of my production, and improvement, obviously, these numbers give scanners for most of the operators, but even we could potentially connect with RFID tags for high turnover goods, and ensure also when the packaging time, the right packaging from the perspective of the customer and the right labeling of the goods and more challenges with solve related to maintenance and dashboarding. Let's take a look at the main capabilities of CPG producers.Bradford: Yeah, so these are some of the key capabilities required for CPG that Delmia Appriso supports, things like production monitoring, being able to see what's going on right now with every order that's out on your shop floor, laying, dispensing to manage those the processes where you're dealing with materials that aren't discrete, you can't count them by hand. They have to be weighed, and you need to make sure the weights are correct, bulk, fill and packaging, and line operator consoles. This is where that integration into equipment comes into play. So you can see not only what you need to do, but what's going on with the equipment in real-time as you're doing your production warehouse and shop for logistics. So you can see where you have materials, and where they need to come from. You can drive operator material handling activities via handheld devices and scanners, so it improves productivity and simplicity for your shop floor operators, and real-time visual management of equipment on the shop floor. So being able to see again at a glance, what is our equipment status, what equipment is up, what is equipment is down, what's running behind, and so forth. In line, quality controls are absolutely critical in the CPG industry. So being able to see to collect data in real-time, in line to make sure and give the operator immediate feedback as to what the data collected is. Is it correct or incorrect to be able to see inline quality controls like SBC and so forth, and then real-time machine performance, which kind of ties back to that bulk filling but being able to see in real-time, not only the performance of all the equipment on your shop floor, but to be able to drill down to individual equipment and see what it's doing now, as well as what it has done over the shift or over the date. Finally, when all of the production is done, having an electronic batch record that gives a history of everything that's happened with that batch of product, who worked on it, what materials were used, what quality checks were done, what were the results, and so forth. So you have everything in a consolidated record if there are questions and issues later on. Now let's take a look at one real customer and their story, using Delmia. So L'Oreal is the customer, and I'm sure most of you are familiar with them. They're a global leader in the cosmetic industry, and they were trying to get better integration of their operations globally, in other words, from plant to plant to plant, there was some variability. They wanted more integration globally, more consistency globally, and they wanted to improve visibility and control globally across all their operations. To accomplish this, L'Oreal deployed Delmia Appriso at over 30 plants in conjunction with its SAP ERP rollout. So that's quite a challenge. ERP and shop floor applications together, but they did that successfully, and the result was much better consistency in production, quality, and materials management, as well as full global traceability with the products. So that implementation also enabled L'Oreal to increase the right first time, which is one of their key metrics, to over 94%. L'Oreal is a very lean environment. Every month, they select a business process in manufacturing that they feel isn't running as efficiently as they should. They improve that process. Not only do they do that through Kaizen, but they then take that improvement and using our low code BPM solution, reconfigure the associated business processes and deploy those to all 30 plants every month, so every month they're updating and improving their business processes using our low-code environment that has really enabled them to continue their Lean journey.Moran: And now I wanted to share with you all some real-life stories of advanced capabilities, or, I would say, with a lot of value that we brought to our customers using the MOM solution of Delmia and the first one being the way we were able to optimize the picking operations of this cosmetic manufacturer and automotive part manufacturer. You know their storages has lots of different components and ingredients, and whenever they trigger the replenishment of the production lines, they have some rules. So they want first to be able to use the boxes that are already on the line. To avoid that someone would have to get them back to the storage and then bring them back so boxes that are already there are boxes that will expire first. Obviously, this is extremely important in CPG, so FIFO rules to be respected, boxes that are open because some boxes in the storage are already open, as well as pallets that are unfilled from the plastic perspective. And then the FIFO, which is first in, first out, is the next logic to fulfill the goods, and doing all of that, having in mind the shortest route to be utilized by the forklift driver, as well as to avoid any type of accident on the storage to use, first the lowest levels, where usually the goods with high turnover are stored after receiving on the lowest levels. Here what is important is not only that Appriso was able to give them these lists of containers to pick, but also the fact that Appriso was respecting from one to seven the sequence of the first things to propose to the operator. So first the boxes are present on the line. Then, only if there are no boxes on the line, the first boxes that respect the FIFO and then the next ones would be the ones that are open. So the sequence is smartly defined in appraisal and executed in the most respectful execution of the replenishment. The next interesting case study we implemented was a graphical visualization of the storage of inventory. A glass sheets manufacturer with lots of different materials in a huge warehouse area. So they needed an eagle-eye view of materials availability with colors. You can spot where are my materials. You can filter on the product numbers, but also the availability of the storage itself. So, is it empty? Is it filled? Even the percentage of occupation to know if I could put more inventory, and we did that in 2D, but now you can do that in 3D using models configured in the Delmia apps. One very interesting capability we have implemented for a medical device customer is dynamic sampling. So we are used to having to fix sampling procedures which usually request the operator to sample the first parts and the last part, and usually end parts after some time or after some production. This is not good enough. This is not optimized enough. Now we are able to do this for our customer — evaluate the process capability, the CPK, meaning the potential deviation of the quality measure, and only trigger sampling if there is a potential deviation of the limit, which will, if each test is correct, not trigger sampling and rely only on the specification limits. In the case there is a deviation in the measure that is above or below the specification limit, this customer will trigger 100% inspection which is by that rule for medical devices companies, but you can see that the process capability has reduced a lot the quantity of samples taken on the line. With regular monitoring of the control limits. The next one is gang weighing. So gang weighing is interesting for this cosmetic manufacturer. They were able to optimize the weighing process by weighing the same ingredient for multiple production orders. So this is a pre-weight location — they will bring the source containers, but the source containers will be weighed for many bulk production orders that need the same material. This way, you save a lot of time bringing and moving the containers, and obviously you optimize the weighing process throughout the day to deliver the weighed containers to your production orders. And finally, containment. So we have three types of containment in appraisal. I wanted to mention this blood producer utilizing appraisal to manage the containment that is based on customer alerts, I would say external containment, after testing the products, the customer has raised an alert, and you are able, with the appraisal system, to retrieve all the containers or the batch that were weighed at the same time, stored in the same place, delivered around the same truck, and isolate and put in quarantine those goods. So this is an external alert, but internally also in case of contamination, you know that some goods were produced on the specific machine with a specific recipe and specific ingredients, and you can filter in appraisal to know what are all the batches that were produced at that specific period of time on this machine with this recipe, and isolate the minimum possible number of goods to avoid a more global recall. You can also do this in process with containment. They were able to hold the batch only after a given stage. Let's say you have multiple operations in your production order. Let's say you can go from operation 10 to 40, but after operation 40, you put all the goods in quarantine because there is a specific control to do, to double check a particular biological or chemical characteristic of the product, but you are not stopping the whole order. You can actually contain only from a given stage of the production order. All right, let's take a look at some KPIs and benefits achieved by our customers.Bradford: These are real numbers from real customers. You can see the areas of improvement, things like flow synchronization, accelerated genealogy service searches, rapid containment, and so forth. The real value, then, is what the specific impact and benefits are, and you can see what they are. A few things like increased volume throughput. Throughput is a key measure for every manufacturing environment, whether it's CPG or anyone else, and we've been able to impact that by an improvement of 5% to 10% — we've actually seen improvements even more than that, but that's kind of the average, which really helps you then with capacity and customer delivery. It helps in a lot of different areas. In our reduced scrap and rework, again, big in every industry, we're able to help our customers, and again, real numbers from real customers, we've been able to help our customers reduce scrap and rework by anywhere from 15% to 30% reduce work in progress by 20% to 30% and that's in part accomplished by the improvements in throughput, the improvements in burial, material handling, and the deep machine connectivity. So a lot of business benefits, real benefits for you as a potential customer. We can help you to provide a perfect solution with Delmia and CPG. What you see here on the left is kind of a pyramid of all of the capabilities within Delmia that are all on our platforms. But the key is you don't have to implement them all at once. You can determine what's best for you, so you can implement what brings the most value at your own pace, and we can help with that. We have a group that does what we call value engagements, where we can come into your plan and spend time with you, and help you determine where we will get. Where will we get the most value the quickest? So in this example, this particular customer is doing quality control, order dispatching, and track and trace. That's fine. That's a great way to start. Now they may add light supply management, and warehouse management later, or they may add maintenance, but again, you start with what makes the most sense for you. You start where you will get the most value the quickest, and then, because it's on a single technical platform, you don't have to worry about, if I add warehouse management, is that going to be something I did in the other three going to make that difficult? No single solution, single code set, or single platform so you can do whatever sequence you want. At the bottom, you see a list of some of our Delmia customers. This is just a sampling, but this is a sampling of some of the customers that we have using Delmia in the CPG industry. So again, very, very deep knowledge of your industry, and a lot of names I'm sure you recognize that are using our Delmia solutions. Then there's the aspect of global solutions. I talked about L'Oreal and what they're doing globally. We have unique capabilities in supporting a center of excellence, a global center of excellence. A lot of companies talk about a COE, but they talk about in terms of a location and a group of people and business processes, which are all important, but we are actually the only company that I'm aware of that has software that can help you govern that center of excellence. It enables you to standardize and enforce best practices and push those out to the plants using common metrics across different plants. You can centrally offer those processes, or they can come from the plants, and this is where the governance comes in. Who can create processes, and who can update processes, if you always want them to go through the CoE? Or can plants do that? And if plants can do that, how much freedom do you give them to change the processes that were configured at the CoE? And then how do you communicate those processes? Does it always go up to the CoE and then out to the other plants? Or can they communicate peer-to-peer? But all of those changes are visible from the CoE. All those changes can be governed by the CoE, and you've always got the ability to, and all those changes are revision-controlled. So again, we give you a level of control and visibility for your CoE that is really unmatched in the industry. So I'll turn it over to Francois to cover some new technologies. Moran: Let's take a look at new business trends. So we mentioned them at the very beginning, but now you have a better understanding, maybe, of the capabilities that Delvia will offer to support the innovation of new products, new recipes, and new formulas. This is how Delmia PLM, in cooperation with Delmia MOM, will digitalize recipes and launch them in the execution inside the Delmia MOM systems with a lot of ability for you to manage more easily, new ingredients, evolutions of formulas, but also all sorts of product data related to the quality specifications of your products. By being able to implement the warehouse management systems, to have better visibility of your inventory, leading to less effort to replenish, to do the weighing, to manage the warehouse in particular — and when we look at the machines, the optimization of the schedule of the machine, the optimization of the efforts of the machines, and the monitoring of the OEE — the overall equipment effectiveness, will help you measure sustainability, measure carbon emission, labor, energy consumption, and then make a decision in order to, let's say, for example, produce when the energy is less costly, or postpone some orders to a later stage, if there is less customer priority into it, and save costs related to that. We mentioned traceability. So the traceability inside the plant, throughout different facilities, you have the ability to track lots, containers, and serial numbers from different input locations to destinations and report that movement from the audit trail perspective. So who, what, and when did this movement or did the declaration happen for a fully historic batch record to fulfill all the latest and new regulations from the FDA, for example? But also, more from the European perspective, new models utilizing appraisal and Quintic solutions, maybe to manage personalization, so maybe more production orders of small series with more variants. But that is that is not a problem from the ERP and MES perspective. You can download and adjust the schedule to optimize the production operations and to adapt to specific local customer requests, maybe even make to order, or even engineer to order, if you are using design solutions from Delmia and then push to Appriso and APS solutions like Quintic for execution and planning. You have more complex equipment, but you see that Appriso can connect to many of these new types of equipment and implement control towers to monitor production counters, and process data with brand-new and sophisticated protocols and data exchanges with this this machine layer.And if you look at new technology challenges, most of you will want to or have questions about the cloud capabilities. Yes, you can have the MIA MOM in the cloud to lower it. And the total cost of ownership of your solution from the data perspective, we all know that the more data we have, the more capabilities we will get to run machine learning and maybe artificial intelligence on top of this data to gather or analyze the problems that would come up with delayed deliveries or lack of efficiency of the machines, consequences of recalls and quality non-conformances. So data is of utmost importance and will become more and more important from the level two systems. But the MOM systems are ready for autonomous robots, and guided vehicles. More and more we will have robots running inventory countings, automated defect recognitions by the visual analysis of the parts HGVs also to to run logistics from multiple points, and we have connected the NBA appraisal to such smart tools and smart robots already. So you are ready for that in the in the coming future. Finally, two important things to connect to, maybe to new optimized warehouse systems, like trend means, and pilot them automatically for a better inventory optimization. And the last one is the augmented reality. Delmia augmented reality will help you with Google Glasses or Microsoft Glasses. Go and pick the right containers to analyze for potential defects against the work instructions that are communicated to you. So great improvements in embedding augmented reality inside MES operations.Bradford: So in summary, let's wrap things up. Your industry, the CPG industry, has significant and unique challenges, challenges that are on innovation, regulatory compliance, which tends to change quite often, cost, complexity, and so forth. Addressing these challenges on an ongoing basis requires powerful and flexible solutions that meet industry and Isa 95 requirements, but again, are flexible enough to change over time as the requirements change. Delmia has deep expertise in your industry, in the CPG industry, and we provide a manufacturing operations management solution in Delmia acquisition that addresses those challenges. So we're going to open it up now for live questions, but as we do, if you would like more information here are some resources. We've got links here to e-books and customer case studies and so forth. We also have our Delmia user communities, which are open to everyone, and where you can go and ask questions and see answers and see what other people are doing with the solution.Dominguez: Thank you, Francois and Mike, for that presentation. We now have some time to address any audience questions, and I'm just going to start off with one that just came in. Mike, this one goes to you. What are some of the common steps in value assessment and MOM onboarding?Bradford: Okay, great question. Value assessments, we did mention that in the presentation, and that's a way to help our prospective customers establish a business case. So what happens with a value engagement? We send a team in of experts whose job it is to help customers understand value. They'll spend two to three days in the plant. They'll ask you ahead of time for some information, so you'll have a little bit of homework that they'll get so they can be prepared in terms of what your current financial status is and that sort of thing. And we'll come in and we will walk through the plant floor. We will spend, typically an hour or more with various different groups, including the planning group, the manufacturing supervisors, the materials group, and so forth, to get a perspective on how you're doing things today. Where are you having issues and concerns today? What's working, what isn't working today? And then from that, we will put together a full business case that'll show you. These are the areas where we see potential benefits. This is the amount of the benefit. This is your current cost. So, therefore, here is the potential value for that. And it's not just it's not just numbers that we come up with, but it's numbers that we know. No. 1, we know based on experience and having done this many, times. But we also come back to your team, and we say, these are the potential benefits. We see we can help you increase your throughput by 20% in this area. And we talk about why, show your people why, and if they disagree, then we'll adjust the numbers. But we tend to be very conservative in that we want the numbers to be real. And then we can also show you the cost, the base on all those benefits. Where does it make sense to start? What applications, what modules should we start with, and maybe what production line or what area of your facility? So we can tell you then the cost of the software and the implementation of those as well as the benefits that will be achieved. So you really have a full business case for what's the best way to move forward, and how much will that help us, and how soon you know when will we start to receive benefits from that, and so forth. And in terms of just onboarding, we go through the value assessment, we help you with purchasing the software and hardware, and then we can help. We help you put together a training program for employees. We have formal training on the basics of the solution, but because it's a low-code solution, you're going to configure it to your own requirements. So we'll help you then put together a training program for your employees, for your configuration of the product.Dominguez: Yes, definitely. I have one for you. Francois. Can you explain how this type of integration might approach recipe management?Moran: So recipe management, I mentioned it in the presentation. This is a detailed routine. It has different namings. It can be also a process. Anyway. It's a way to centralize into a single system, the bill of material, the bill of process, and the bill of equipments. So from the process perspective, it has operations and steps. And then you gather the machines that you are going to use and the ingredients that you are going to consume. You store this data. It's a PLM data, because it's the definition of your product and it's the way it is built. You store this data, and we propose now a solution on the 3D experience platform of the source system to store this data, to create revisions, and to create new recipes more easily. And then you download that to appraisal for execution. You download that to the planning system because those steps have a duration so it fits the planning systems. And as part of a global project, this would be an initial step from the data cleaning, data preparation perspective, to start with recipes and then deploy these recipes from the central repository to the various systems of your shop floor.Dominguez: Thank you, Francois, and regarding some of the challenges that CPG companies have encountered during implementations in MOM systems, how are they typically resolved?Moran: So for implementations, I would say, after 20 years on the field myself, I think that the main challenge is to set up the right CoE. So I will explain what is a CoE. It's a center of excellence. This is a group of individuals on the customer side, which are responsible for many things when it comes to the lifecycle of the solution, to gather the right knowledge from the shop floor and to design it as a solution and to follow up with the different versions that the solution will take over the years, because we are looking at 15-20-year investments. So this group of people, this CoE, for me, it's at the heart of a well-managed solution, a well-deployed solution. And the return of investment, for example, sorting requests from the plants, filtering them out if they do not make the most sense from a core model perspective. And I think this is key to achieving a great solution with MOM in particular.Dominguez: Okay, thank you for those details. We have one last question here for Mike. Can you share some more details on maintenance best practices?Bradford: CPG tends to be a pretty machine-intensive industry, so maintenance becomes very critical. One of the mistakes or shortcomings I see in a lot of preventive maintenance programs is its calendar base. I'm going to maintain this machine every 30 days, which is great if you run that machine at the same level all the time, but in most instances, there's going to be some variability, depending on product mix and shift mix and holidays — the machine may run more or less. So one of the things that we recommend is a usage-based preventive maintenance program, and we can support that because not only do we do the maintenance side, but the production side — and the machine integration that Francois talked about earlier becomes critical there, because now the system knows how much that machine has run. It knows how many hours or how many pieces, or whatever you want to use to measure usage, but because we're tied in the equipment, we can tell exactly what the usage of the machine is. So you can base your preventative maintenance now on machine usage versus just on calendar date. So that's one best practice. Then would be also to use those machine connections and IoT devices to start to predict maintenance, and we have some tools within the Delmia solution that can help with predictive maintenance. So now if a vibration level goes up, and we know that's a problem, we can do maintenance. Maybe it's not scheduled yet, but we know if that vibration continues to increase, then the machine is going to break down. So now we can give alerts and notifications that, hey, we've got an issue. We need to do some predictive maintenance based on what's going on in real-time with that machine. So again, usage-based maintenance and predictive maintenance, in addition to preventative maintenance, are two best practices that will really help in a machine-intensive environment like CPG.Dominguez: Thank you for those best practices. That's all the time we have for today, but I do want to thank you Francois and Mike for preparing that presentation and our attendees for tuning into CGT’s latest webinar.

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