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by Stephanie Neil, MA Editorial Staff Posted on Friday, April 18, 2008 4:46:11 PM   | Abstract: | Extreme competitive pressure drives the need for more quality and visibility within production. |
ARC Advisory Group released a report that forecasts double-digit growth in the collaborative production management market for discrete industries (CPM-D). The CPM-D market had total software and services revenue of $987 million in 2007. The five-year forecast is for a strong cumulative average growth rate (CAGR) of 14%. The market is expected to grow to just over $1.9 billion by the end of 2012, according to a new ARC study.
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, electronic routing, and finite capacity scheduling. This group of functions determines what products to make, when to make them, and what equipment to use. The "operate" segment stems from the need to continuously control work processes, process equipment, and operate the plant. This segment includes dispatching, electronic work instructions, resource management, and workflow management. The "inform" segment stems from the need to gather, store, organize, and communicate data and information.
Quality and visibility are the top reasons for the implementation of production management applications, the report said. Investments are being made in these areas because extreme competitive pressures are driving manufacturers to improve visibility, quality, customer responsiveness, and regulatory compliance. [Click to continue] |