Discrete Manufacturing CPM Market to Double; Will Top $1 Billion by 2008

Dedham, Massachusetts; -- The Collaborative Production Management for Discrete Manufacturing (CPM-D) market, which exceeds $500 million in 2003, will more than double and top $1 billion by the end of 2008, rising at a Cumulative Annual Growth Rate (CAGR) of 15 percent over this forecast period, according to a new study by the ARC Advisory Group. Many new entrants make this a fragmented market with a rich selection of alternatives among the suppliers.

Growth Driven by CPM-D's Benefits

ARC's "Collaborative Production Management Systems Worldwide Outlook for Discrete Manufacturing" shows why this market will continue to grow rapidly in a period of global economic uncertainty. A CPM solution can measurably help manufacturers drive their manufacturing operations to perform against real-time business needs, instead of fixed targets. It does this by helping manufacturers to:

--Synchronize manufacturing and business processes

--Collaborate with business partners

--Respond quickly to demand changes

--Cope with increasing regulatory requirements

--Ensure the highest quality products

--Continuously improve operations

"Manufacturers tell us in confidence about incredible ROI for many of these installations," according to ARC Director of Collaborative Manufacturing and Architecture Greg Gorbach ([email protected]), the author of the study. "It is clear that manufacturers are gaining significant competitive advantage through CPM. This market is no longer driven by the desire to gain performance improvements at the shop floor — it is driven by executives who want to better serve their customers, partners, and stakeholders by improving their performance enterprise-wide."

The Functions in CPM-D Applications

CPM solutions represent a suite of applications that combine visibility of real-time production status, traceability and genealogy of manufactured product, performance analysis of production operations, paperless management of the production process, and operator instructions in the form of routings, ECNs, BOMs, engineering documentation, and assembly drawings. Increasingly, CPM also plays a platform or infrastructure role, pulling together all plant operations systems and synchronizing them with business systems.

CPM is the application of collaborative manufacturing principles to the management of manufacturing processes. Collaborative Production Management normally refers to the synchronizing, executing, tracking, reporting, and optimizing manufacturing processes. Production management systems are not standalone. While performing the production-centric functions of planning, controlling, optimizing, and informing, they must integrate with plant floor control systems, business systems (ERP and supply chain), engineering systems (PDM and PLM), and maintenance systems (CMMS and EAM).Further information on this study can be found at: www.arcweb.com/res/cpmd

ARC Advisory Group provides strategic planning and technology assessment services to leading manufacturing companies, utilities, and global logistics providers, as well as to software and solution suppliers world-wide. Further information can be obtained from ARC, [email protected]

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