Vladimir Filipov, NearSoft: The innovative approach of NearSoft assists the building of a modern internal production IT ecosystem

Automation & RoboticsInterviewSouth-East European INDUSTRIAL Мarket - issue 1/2015

Vladimir Filipov, manager of NearSoft,
for South-East European Industrial Market Magazine

Dear Mr. Filipov, how would you evaluate the European industry in general? What are the major opportunities and threats facing the industry in SEE?
West Europe’s industry has lost ground in the past two decades. Now the cards are being reshuffled. There is a chance that South-East Europe will increase its industry share. Industry plays a central role in the economy of the European Union, accounting for around 15% of value added.

It serves as a key driver of research, innovation, productivity, job creation and exports. Industry generates 80% of the EU’s innovations and 75% of its exports. Meanwhile, traditional industrialized countries in West Europe are facing considerable decline in industrial employment and value added.

Germany and Eastern Europe continue to increase their share of the industrial market in order to be the industrial powerhouse of Europe. After automation, electrification and digitalization of industry, the introduction of the Internet of Things in the factory marks the advent of a fourth industrial revolution - Industry 4.0.

What is the importance of the South-East European industry for the EU economy? How NearSoft does fit in the overall picture?
The industry’s role in the economy of South-East Europe has always been strong (over 20% of the national value added). Their main advantage used to lie in low-cost manufacturing, and the value added per job is still lower than in traditional industrialized countries. But recently established plants in these countries are brand new, highly automated, and will enable the rapid development of high value-added activities.

In South East Europe productivity is low and statistics regularly assigned to it the last places on this indicator in the EU. The reasons for the weak result are complex and increased productivity is directly dependent on the efficiency of the used resources. Solving this problem is achieved through a systematic approach for identifying and eliminating waste (activities without added value).

NearSoft help companies to achieve, institutionalize and maintenance consistency in the implementation of good manufacturing practices established in modern management philosophies, such as Lean 6-Sigma, GMP, JIT, TQM and others.

Would you please present your company’s activities in more details to our readers?
NearSoft Europe provides methodology and technology for real-time collaborative processing of production information inside an enterprise. Our mission is to improve the competitiveness of our customers by improving their productivity and reducing their operational costs.

Developed by NearSoft system for the operational management of production, MOM4 provides basic tools for implementing these methods, such as detail scheduling, data collection and management by KPIs. MOM4 helps to unlock the full potential of the manufacturing process by equipping managers with the necessary tools for implementing a true Just-In-Time (JIT), Lean Six Sigma (6s), and Good Manufacturing Practices (GMP) initiatives.

What are the specifics and advantages of the MOM4 solution?
MOM4 is a configurable enterprise content management system (Enterprise Content Management - ECM), which allows users to intuitively change the workflow, as well as enabling them to easy communicate and exchange production and process information.

MOM4 is not an ERP. Unlike ERP systems that manage with the help of financial indicators, MOM4 concentrates on the management of daily activities in an enterprise. MOM4 empowers all users, from shop floor operators to executive management, to make real-time actionable decisions throughout the plant and across the enterprise.

MOM4 brings benefits to producers by enabling them to react continuously and to operate at optimal condition. MOM4 is production-control oriented and specifically designed for managers, planners, foremen, operators, quality inspectors and process engineers in order to support their individual needs in carrying out their daily operations.

What particular benefits does the system provide?
The return of investment for MOM4 is between 6 and 9 months. Overall, many improvements can be achieved like increased asset utilization by 10-20% through better planning, optimization algorithms, decrease of the changeover times and downtimes, improvement on time deliveries by 6-10% through better scheduling and reporting in real-time, decreased lead time with 30-40% by improved execution.

The benefits of the system also include reduced re-works and downtimes by 5-10% using advance analyses, decreased waste (scrap) with 10% by ”institutionalization” of the production process and reduced inventory costs up to 30%.

What applications does the system have? What is the overall significance for the market?
MOM4 addresses all operational issues and not only coordinates the processes, but also drills into detail in the following categories: Lifecycle management (PLM, PDM), Detailed production planning (APS, FCS), Process control and reporting in real time (MES), Total Quality Management (TQM), Asset management and maintenance activities (EAS, CMMS), Management by key performance indicators (KPI), etc.

The MOM4 solution closes the gap between production planning (ERP, SCM) and production execution (operators, SCADA, PLC, DCS, barcode readers, etc). NearSoft supports enterprises in continuing digitalizing their daily activities and manufacturing information and the foundation for the upcoming ”The fourth industrial revolution” (Industry 4.0) and ”Internet of Things” (IoT - Internet of Things).

What is your marketing and solution promotion strategy aimed at? Which are its highlights?
The innovative approach of NearSoft assists the building of a modern internal production IT ecosystem, based on new technologies (ECM, Intranet, WEB, OPC, etc.) and standards (ISO62264), allowing easy standardized integration of the existing IT systems (ERP, SCADA, PLC, etc.).

Thus significantly reduced the cost of implementation and maintenance of IT solutions and the ability of small and medium-sized enterprises to benefit from the best practices of leading international companies. MOM4 was successfully presented at international fairs in Hannover, Paris and Istanbul, and is included in the reports of ”CGI” and ”MES DACH” for leading suppliers of MES / MOM systems for 2014, along with companies such as SAP, Siemens, Samsung, GE, etc.