Presentation on theme: "Mfg. Operations Standards Need to Converge into a Manufacturing Application Integration Framework Charlie Gifford Director Lean Production Management."— Presentation transcript:
1 Mfg. Operations Standards Need to Converge into a Manufacturing Application Integration Framework Charlie GiffordDirectorLean Production Management
2 Agenda“What are the tough implementation problems (infrastructure, standards) that must be solved to make “smart assembly” a reality?”State of 21st Century Plant and Production Mgt. TechnologyChallenges for B2M and B2BInteroperability Maturity ModelSignificant Events in Mfg Operations StandardsWhat is Business-to-Manufacturing Integration?A View into an Evolving Manufacturing Application Framework5 minutes of Discussion
3 GE’s Standards Liaison for Manufacturing Operations Charlie Gifford, Director of Lean Production ManagementChairman, ISA95 Best Practices Working GroupChairman, ISA95 Part 4 Quality Test Ops Mgt Working GroupVoting Member, ISA88 & ISA95 CommitteeISA95 Representative, ISA95/SCOR Alignment Working GroupInformation Member: ISA99GE Representative, Mfg Interoperability Guideline Working GroupGE Representative, MESA Technical CommitteeDirector, ISA Computer Technology Division 97-99GE Representative, SCOR MAKE CommitteeChairman, Editorial Board, Industrial Computing Magazine 98-02Published over 35 papers on Industrial ComputingStandards Work: ISA84, 88, 95, MESA, SCOR, Many DOD Standards
4 Aligning Mfg. Capabilities to 21st Century Challenges Mandates Change… 20th Century Manufacturing FlowCustomersSuppliersManufacturersDistRetailersSupplierExchangesLogisticsExchangesCustomerExchangesVirtual Mfg.Logistics ProvidersCMsAMR Research:All rights reserved.
5 Business Evolves into Configurable Demand-Driven Supply Chains Need:ProductionCapabilityCustomerDCSupplierPlantCustomerDCSupplierCustomerDCSupplierCustomerDCSupplierCustomerDCAMR Research:All rights reserved.CustomerDC – Dist. ChannelOrder to ship 48 hours – sold today, production order tomorrow, ship following dayProduction tracks demand closely – implications for manufacturing –DFM, product rationalization, (Schneider NA – switches) Production optimized for batch size of 1 – project payback anticipated 3 years – actual achieved 1X return in 6 months. MES/automation project. 1994
6 Evaluate: Customer Value + OTD + Configured Production Capability = Profit Margin AMR Research:All rights reserved.21st Century Manufacturing Enablers:Flexibility & Real-Time Visibility
7 Challenges of B2M and B2B Communication and Processes Many different applications across the enterprise doing the same functionNo enterprise wide application and information architectureSeveral versions of “enterprise-objects” or language for Product, Customer, Order, etc.This is a good news / bad news messageThe good news is that as organizations, most everyone is in the same boat. The bad news is that most everyone has a big problem with applications.Legacy is a big issue to everyone. So we are all in the same boat.
8 Challenges of B2M and M2M Integration Effective and Flexible Mfg. Operations…..HARD TO DO!Various Forms of the MES / ERP solution:Industry-specific production typesMixture of work order types across plantSpeed and Volume of ThroughputStandardization of work flow “best practices”Must Allow Change in Production Processes Without requiring change in logistics systemProvide a clear demarcation of MES / ERP responsibilities and functionsBusinessLogisticsManufacturingOperations
9 Technology S Curve: Challenge Explained Also Applies to Methods Development:Delivery, Training, User, Support and Change disciplinesHMI / SCADA / PLCERPSCMMES / PMIt is against this backdrop that global manufacturers are getting back to the basics and focusing attention on their core manufacturing capabilities.Why now?Fortune 1000 manufacturers have been in the midst of massive ERP rollouts and consolidations – these are wrapping up and businesses are slowly discovering that ERP alone is not enough to achieve the level of operational excellence many had hoped for – or been promised.Companies have also been working to lean out their supply chains and procurement processes, and are awakening to the realization that manufacturing – or you can think of is as the ability to reliably supply product into these lean supply chains - is a critical capability that’s been starved for investments for nearly a decade.So if you look at what the gating factor is for making that next leap in operational excellence, it boils down to manufacturing itself. There’s been a lot of talk about demand visibility and the impact of demand visibility on performance.In fact, benchmarking studies we’ve done here at AMR show that slight increases in demand visibility yield substantial improvements in what we call “perfect order” performance – and profitability. Industry leaders have figured this out, but when you look at the leaders, they’ve also invested in the manufacturing capabilities needed to respond to the demand.So the real takeaway here is that even demand visibility isn’t enough if you can’t respond to that demand with high quality products out of the gate.In short – you can have the best demand visibility in the world, but it’s not going to matter if you can’t get a quality product out the door.
10 2006 Top Strategic Platform Investments Focus on Mfg Operations! Customer Management14%11%34%ERP39%Product Lifecycle Management5%4%Sourcing and Procurement3%3%Supply Chain Management15%12%Manufacturing21%Operations22%Desktop software9%10%It is against this backdrop that global manufacturers are getting back to the basics and focusing attention on their core manufacturing capabilities.Why now?Fortune 1000 manufacturers have been in the midst of massive ERP rollouts and consolidations – these are wrapping up and businesses are slowly discovering that ERP alone is not enough to achieve the level of operational excellence many had hoped for – or been promised.Companies have also been working to lean out their supply chains and procurement processes, and are awakening to the realization that manufacturing – or you can think of is as the ability to reliably supply product into these lean supply chains - is a critical capability that’s been starved for investments for nearly a decade.So if you look at what the gating factor is for making that next leap in operational excellence, it boils down to manufacturing itself. There’s been a lot of talk about demand visibility and the impact of demand visibility on performance.In fact, benchmarking studies we’ve done here at AMR show that slight increases in demand visibility yield substantial improvements in what we call “perfect order” performance – and profitability. Industry leaders have figured this out, but when you look at the leaders, they’ve also invested in the manufacturing capabilities needed to respond to the demand.So the real takeaway here is that even demand visibility isn’t enough if you can’t respond to that demand with high quality products out of the gate.In short – you can have the best demand visibility in the world, but it’s not going to matter if you can’t get a quality product out the door.Most Important (n=442)Largest Dollar (n=439)Source: AMR Research 2006 IT Spend Survey
11 Interoperability Maturity Models Applied to Logistics and Operations Systems Level of Information System Interoperability (LISI)Framework scopes connectivity level for technical interoperabilityDoes not account for system response required for mfg. workflowsAnd other organizations even up to the Department of Defense had tried to put together interoperability measurements for all parts of a system.Dept. of Defense
12 Efforts Now on How to Model Systems to Business Process Before Going Live Levels of Conceptual Interoperability Model (LCIM) provides a framework for planning your data before modeling your applicationAnd a group close to our home office in Charlottesville Virginia, is trying to put together a model for you to access your data before you even put together your system for modeling. Everyone knows that a project that is planned ahead and modeled before implementation usually goes a lot smoother at time of installation.Virginia Modeling, Analysis & Simulation CenterOld Dominion University
13 Lean Manufacturing Transformation Road Map Common ISA-95 Definition of Work Unit and Flows and their Resources “Leans Out” Business Tools and ProcessesSingle Piece Flow, Line Balancing and ThoughputAnalytics, Reporting, Alarm & EventShop Loading, Scheduling, & DispatchingMethod comparisons of Activities and WorkBudge Cost EstimatingStandard Costing or Activity Based Costing MetricsLabor performance measurement and controlManpower and production requirementsPayment by results (incentives)Business Cost justificationSimplified PLM (Standard Design & Planning for Methods for Product, Manufacturing & Quality)MOM Architecture Administration & Project ManagementBuild Single Schema to Accelerate
14 Standardization Effect of Mfg. Application Framework S =StandardizationI = ImprovementKey elements behind standardization are:Takt time schedulingStandard Work towards single schema & processRoute & Recipe verification processChange mgt. processThe Lean MES Improvement Cycle, graph below, illustrates the typical basic process used to continuously improve the manufacturing environment and conduct change management as new products, new technologies, and market changes alter the optimized environment.Effect of ISA95 together with Lean process and 6 Sigma production improvements
15 Lots of Standards Convergence Activity: 10+ Years of Work Moves toward Product
17 An Integration Evolution: MIG WG Manufacturing Domain Mapping Data Modeling: Real-Time Data Aggregation vs. Business Process TransactionsOPC UAOAGIS, SCORLevel 5+: Inter-EnterpriseOAGIS, SCORLevel 4+: EnterpriseMIMOSAHybridISA-99DiscreteProcessLevel 3:Manufacturing OperationsISA-95ISA-88OAGISB2MMLOPC: DA, HDA, A&EOMACLevels 2, 1, 0:Machine / Plant Work
18 Operations Management ISA-95 & Purdue Hierarchy Model Defines MOM and ERP+ Domains for Information ExchangesBusiness Planning& LogisticsPlant Production Scheduling,Operational Management, etc4 - Establishes the basic plant schedule - production, material use, delivery, and shipping. Determines inventory levels.Time FrameMonths, weeks, daysISA 95.01, .02, & .05 Standards3 - Work Unit and Flow Defined. Work flow / recipe control produces desired end products. Analyzes Work Data, Maintains records and optimizes the production process.Time FrameDays, Shifts, hours, minutes, secondsManufacturingOperations ManagementDispatching Production, Detailed ProductionScheduling, Reliability Assurance, ...ISA 95.03, & .06 Standards2 - Work unit (operation): Monitor, supervisory control and automated control of the production work processBatchControlContinuousControlDiscreteControl1 - Sensing of production work process, manipulate the production work process0 - The actual production work process
19 Manufacturing Application Framework and Transformation Methodology Functional Segregation& Metricsby Scenarios and DomainFunctions &Data Flowsof InterestSupply Chain & Mfg. Scenario & MetricsDomainDefinitionsQAServiceR&DInboundLogistics-Mfg.Ops.ProductionPackageInputs(Supplier)Conversion(Mfg.)DistributionConsumerMaterialPrepOut-boundMkting& SalesAssemblyMetrics ConstructionCategories forInformation AnalyticsInformation Data Model, Objects andDefinitionsManufacturing Use Case MetricsUse Cases and Transaction Set ConstructionCompany Production Canonical SchemaFrom ANSI/ISA Copyright ISA Used with permission.
20 ISA-95 Functional Enterprise-Control Model Procurement(5.0)ProductionScheduling(2.0)Material andEnergy Control(4.0)ProductInventoryControl(7.0)Product CostAccounting(8.0)QualityAssurance(6.0)Shipping Admin(9.0)OrderProcessing(1.0)Control(3.0)MaintenanceManagement(10.0)Research Development& EngineeringMarketing& SalesISA S95Part 1&2Remind them that the ellipses are functions, the solid arrows indicate information flows that are defined, the dotted arrows indicate information flows that are not defined in the model.The overlapping shape is really where the scope of manufacturing operations exists, this includes some of the activities of maintenance management, QA, material & energy control, scheduling, and product inventory control (as required to meet the goals of regulatory compliance, safety, and quality)Order processingProduction schedulingProduction controlMaterial and energy managementProcurementQuality assuranceProduct inventory controlProduct cost accountingProduct shipping administrationMaintenance managementResearch development & engineeringMarketing & salesFrom ISA-95 Copyright ISA Used with permission.
21 Production Capability Production Performance ISA 95: 4x4 Object Model Defines Production Work for B2M Data Exchanges4 Resource Categories4 Information CategoriesResourcesProduct DefinitionProductProductTimeProduction CapabilityCapabilityPeopleEquipmentMaterialsProduction ScheduleProduction PerformanceProductionStructure / ViewSegmentsFrom ISA-95 Copyright ISA Used with permission.
22 First, Lets Understand Primary Drivers for MOM / ERP+ Segregation RequirementsWork Flow Complexity MatrixProduction TypesDiscrete ManufacturingBatch ProcessingContinuous ProcessingWork Order TypesEngineer-to-Order (ETO)Make-to-Order (MTO)Make-to-Stock (MTS)9 Mfg. Scenarios (with hybrids) of Production and WO TypesEach have a specific set of business processes and rulesContributors: Legacy, Speed, Volume, Size, Compliance, SKU CountPackaging &AssemblyComplexityProductionMtl. PrepComplexity= interfaces (ERP, Quality, Maintenance, PLM, Inventory), Support processes (WI, CAPA, CID, Scheduling, Maintenance), 1X to 3X, Custom vs. Configuration. The work flow data model changes as the WIP matures across the plant.
23 Level 2 Process Control/ Plant Work Interoperability Interface Depends on Production Environment, Industry, Products…ProductionCapabilityPerformanceScheduleProductDefinitionD/B-ETODetailedProductionSchedulingB-MTOProductionResource Mgt.ProductiontrackingB/P-MTOProductionDispatchingProductionPerformanceAnalysisP-MTSProductDefinition Mgt.ProductionData CollectionP-MTSProductionExecutionLevel 2 Process Control/ Plant WorkFrom ISA-95 Copyright ISA Used with permission.
24 Level 4+: Extended Enterprise System Function Segregation & Interoperability Determines Lean PerformanceISA “- Part 3: Activity Models of MOM”MaintenanceProductionQuality TestInventoryLevel 4+: Extended EnterpriseMaintenanceDefinitionsMaintenanceCapabilityMaintenanceRequestMaintenanceResponseProductDefinitionProductionCapabilityProductionScheduleProductionPerformanceQualityDefinitionsQuality TestCapabilityQuality TestRequestQuality TestResponseInventoryDefinitionsInventoryCapabilityInventoryRequestInventoryResponseB2MDetailed maintenanceschedulingDetailedproductionschedulingDetailed quality testschedulingDetailed inventoryschedulingMaintenanceresourcemanagementMaintenancetrackingProductionresourcemanagementProductiontrackingQualitytest resourcemanagementQuality testtrackingInventorymanagementresourceInventorytrackingUMaintenancedispatchingMaintenanceanalysisProductiondispatchingProductionperformanceanalysisQuality testdispatchingQualityanalysisInventorydispatchingInventoryanalysisMaintenancedefinitionmanagementMaintenancedatacollectionProductdefinitionmanagementProductiondatacollectionQualitydefinitionmanagementQualitytest datacollectionInventorydefinitionmanagementInventorydatacollectionMaintenanceexecutionProductionexecutionQuality testexecutionexecutionInventoryWhat user execute what function and what system executes what function in the mfg ops workflows?Level 2: Plant WorkManufacturing Application (Use Case) Framework (MAF)System Architecture Must Support Continuous ImprovementMust Allow Change in Production ProcessesClear demarcation of MOM / ERP+ responsibilities & functionsFrom ISA-95 Copyright ISA Used with permission.
25 Current State of Integration Mostly at the data levelMostly point to pointCustom program interfaces or flat file exchangeGrows at exponential rateOur (OAGi) experience in seeing hundreds or more organizations tell us that most integration is done at the data level today. (not process).Also people are doing point to point connections, uniquely to each business partner, even in the EDI world.Because this work is all custom, the model grows according to the N-squared Model.This leaves us all in the same place of trying to break out from this dilemma. We are spending so much on maintaining what we have, we have no money to fix the problem. Just maintain status quo.
27 BUT….Semantic Layer in Integration is Lagging Interoperability requires interfaces to be standardized. Only 5% of the interface is a function of the middleware. The other 95% is a function of the application semantics. (Gartner Group)95%5%Application Integration SemanticsMessaging and Transport Services
28 OAGIS® 9.0 Scope Provides Business Semantics Domains AddressedeCommerce 10 Years in the FieldManufacturingLogisticsCRMERP70 Business Scenarios, 434 Messages (BODs)77 Nouns (Common Objects) & 12 Verbs Defined7 Workgroups of new ContentMore localization for more International supportUN/CEFACT/ISO compliantISO 11179, CCTS 2.01/ISO , TBG17 BIE/ABIE
29 OAGIS B2M Integration: ISA95/OAGIS Convergence Plant FunctionsProduct Definitions and Production CapabilitiesProduction OrdersWIP and Inventory StatusOrder Completion & Resource ConsumptionBODSSync/Get/Show ItemMasterSync/Get/Show Production OrderGet/Show/Update Inventory CountGet & Show ConsumptionSync/Get/Show InventorySync/Get/Show RoutingGet/Show/Confirm Inventory IssueAllocate Costing ActivitySync/Get/Show Unit of Measure GroupSync/Get/Show Dispatch ListIssue/Receive Inventory MovementUpdate InspectionSync/Get/Show Bill Of MaterialSync/Get/Show Maintenance OrderGet/Show/Update WIP ConfirmGet/Show/Sync Engineering Change DocumentSync/Get/Show Planning ScheduleProcess WIP MergeSync/Get/Show Engineering Work DocumentSync/Get/Show Sequence ScheduleProcess WIP MoveShow Shipment ScheduleSync/Get/Show Planning ScheduleSync/Get/Show Employee ScheduleProcess WIP RecoverShow ShipmentSync/Get/Show Sequence ScheduleProcess WIP SplitGet/Show/Update PicklistSync/Get/Show InspectionGet/Show WIP StatusTime & Attendance
30 MAF Best Practice Transformation Methodology Utilizes ISA95 with other Models throughout Best PracticesISA95/MESA BP Working Group: Book 1.0, December 2006Step 1: (Define)Train Staff on Technical Applications used to benchmark & design business process in Methodology (Steps 2-4)Step 2: (Define, Measure, Analyze)Structured Mfg. Ops. Assessment and Schema Migration PlanStep 3: (Analyze, Improve, Control)Accelerated MOM Application Implementation & TransformationStep 4: (Analyze, Improve, Control)Life Cycle Management of MOM Application, Interfaces & Metrics
31 Smart Assembly Need Methods for Schema, Process, & Lean 6 Sigma Transformations Interoperable MOM / ERP solutions require consistent:Production Data Model and Schema based on Work DefinitionFunctional and Data Exchange ModelsConsistent Message Structure from M2B and B2MMethodology for MOM / ERP integrationSingle Production Schema Reinforces Lean practices such as:Standard work flow practices across MOM Activities:Production, Quality, Maintenance, & Inventory OperationsSchedule/Dispatch, Data entry methods, CID, ECO, Routes, etc.Cross-training operators and mechanics:Common work definition for operations and resourcesSingle XML production schema across all MOM applications simplify Data Collection, Analytics, Interfaces and Reporting
32 Questions? Charlie Gifford email@example.com Director-Lean Performance Mgt.GE Fanuc AmericaChairman, ISA-95 Best Practices Working Group
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