ARC says CPM sales to exceed $4 billion by 2013 | Automation.com

ARC says CPM sales to exceed $4 billion by 2013

ARC says CPM sales to exceed $4 billion by 2013
July 15, 2009 - The Collaborative Production Management Market for Process Manufacturing (CPM-P) is expected to exceed $4 billion by 2013, according to a new study by the ARC Advisory Group. “The global economic slowdown has adversely affected nearly all of the process industries along with the suppliers of process automation technology. Despite the recession, however, the CPM-P market continues to grow albeit at a very modest pace. Even during times of cutbacks and cost cutting, process manufacturers continue to invest in CPM-P projects that have a quick ROI and focus on improving efficiency, reducing costs, consolidating operations, complying with regulations, and standardizing on applications across their enterprise,” said Senior Analyst Tom Fiske, Ph.D., the principal author of “Collaborative Production Management Systems for the Process Industries Worldwide Outlook.”

CPM has three main areas of functionality that include plan, operate, and inform. The “plan” segment consists of functions such as short-term production planning, plant simulation and modeling, and scheduling. The plan functions determine what products to make, when to make them, and what equipment to use. This segment emanates from the need to continuously find new and better ways to control process equipment and operate plants more efficiently. The purpose of the inform category is to gather, store, organize, and communicate data and information. It includes data collection, performance analysis, reporting, and role-based KPI visibility.

Manufacturers Need CPM to Succeed in Today’s Economy
The economic slowdown is forcing companies to reevaluate their bottom line and return to the basics of reducing costs and improving margins while maintaining quality. Unfortunately, achieving and sustaining profitability in manufacturing is getting more challenging as the uncertainty and volatility in the cost of energy, raw materials, water, and other resources rise along with the changing complexity of compliance and risk management. In addition, dealing with increased global competition and rapidly changing customer requirements dictate new strategies that improve flexibility and adaptability so plants can efficiently execute production plans and profitably capture new opportunities. Succeeding in the new economy requires operational excellence along several dimensions such as cost efficient operations, supply chain synchronization, and dynamic value creation, all of which are facilitated by CPM systems.

CPM Key to Dynamic Value Creation
Today, the value of a given product or service changes quickly because alternatives can quickly enter the marketplace. To be successful, manufacturers must enhance their ability to innovate and adapt their products and services to changing conditions. Innovation can focus on products, production processes, or business processes — or any combination of these. Product innovation relies on developing new products and quickly moving them into production. Manufacturing process innovation increases profitability or creates new business opportunities based on better serving the customer. And business innovation takes many forms as the emerging needs of customers, suppliers, engineers, business managers, and partners are addressed. All forms of innovation benefit from enhanced collaboration between the plant floor and other areas. A CPM system provides the visibility to uncover opportunities for innovation. It captures and automates business processes so that they can be easily modified when needs change. A CPM system also synchronizes new manufacturing requirements with the supply chain, engineering, and business systems to improve operations.

About ARC: Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. No matter how complex your business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value.

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