Collaborative production management for process industries is back on track: ARC Advisory Group

Tuesday March 08, 2011
Written by Manufacturing AUTOMATION
The Collaborative Production Management (CPM) market for the process industries is expected to exceed $4 billion US by 2015, according to a new study by the ARC Advisory Group.  

"Currently, there is pent up demand for manufacturing solutions that were postponed during the recession. With the improvement of the global economy, companies are loosening the purse strings and once again investing in CPM solutions," said ARC senior analyst Tom Fiske, the principal author of the study, Collaborative Production Management Systems for the Process Industries Worldwide Outlook. "The next big focus area will be in production applications areas as companies replace homegrown systems and upgrade outdated systems and move plant operations to the next level that allows them to compete more profitably on a global basis."

CPM has three main areas of functionality - plan, operate and inform. The "plan" segment consists of functions such as short-term production planning, plant simulation and modelling, and scheduling. The plan functions determine what products to make, when to make them, and what equipment to use. The "operate" 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.   

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, and compliance and risk management become more complex. Improved visibility, lower cost of ownership, and reduced product costs were key drivers for many CPM solutions over the past year. Sustainability, while a key driver, was not as high a priority over the past year due to economic concerns. Thriving in today's market requires agility and effective use of both physical and human assets so plants can execute flawlessly to planned targets and profitably capture fleeting opportunities without compromising quality or safety. Manufacturers need to utilize powerful and cost-effective CPM solutions that offer benefits in the areas of operational excellence, compliance, supply chain synchronization and dynamic value creation, according to the study.  

For more information on this study, visit

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