Open Standards that Open Markets™ © Open Applications Group Smart Manufacturing Working Group Serm Kulvatunyou, NIST Nenad Ivezic, NIST Conrad Leiva, iBaseT Frank Heinrich, iBaseT Ralph Hertlein, OAGi & Hertlein Group Chris Peters, The Lucrum Group Hyunbo Cho, POSTECH April 16, 2014 Copyright 2014 Open Applications Group, Inc.

Open Standards that Open Markets™ Agenda Proposed Scope –Overall Objective –Problem Statement –Business Case –Work Group Approach –Summary NOT in Scope Key Deliverables Summary Working Group Members Planned Schedule Assumptions, Dependencies, and Issues Outside Resources Next Steps

Open Standards that Open Markets™ Overall Objective Develop a multi-tiered supply chain collaboration guideline and standard for engineered components to improve cost, quality, agility and more

Open Standards that Open Markets™ Make sure that parts are inspected this way, okay? Have you told your supplier about the new revision? Have you got the new revision of the component? OEM talking with Tier 1 Supplier Make sure you don’t subcontract that component, it is ITAR protected. Did your supplier make design change? Why didn’t you tell me about that? You did? I have no record about it.

Open Standards that Open Markets™ Problem Statement Supply chain communications are highly inefficient –More than 50% by phone, fax and 1 –Prone to errors, can’t easily be found or re-used, lacks traceability –Fidelity and timeliness decrease with each subsequent supply chain node Even less efficient for engineered products –Key communications involve unstructured data Requirements, design, annotations, manufacturing processes, changes, etc. –Typically isolated in a silo Hard drives, programs, project folders, etc. –Unstructured data is more difficult to communicate throughout network Not easily sent, received or searched 1 Gillai, B., and T. Yu. "B2B Managed Services: Business Value and Adoption Trends." Stanford Global Supply Chain Management Forum, Stanford, 2013.

Open Standards that Open Markets™ Problem Statement Supply chain impact –Reduced quality Decisions made at one tier don’t consider issues at other tiers Key information is often missing –Reduced on-time delivery Delays in transmitting unstructured data across multiple nodes Rework often required due to inefficient communications –Increased cost Quality issues at one level not readily communicated to all levels Costly expediting often required to overcome issues from lagging information –Brand adversely impacted

Open Standards that Open Markets™ Business Case Communication errors Phone communication Fax communication Process errors More quality communications Inspection communications Upstream communications (design changes, manufacturing statuses, etc.) SC collaboration processes SC activities Information entities Eliminate Automate Standardize Goal Reduce Manufacturing Time & Cost Reduce Manufacturing Cost Faster Design to Delivery Greater SC Agility & Resiliency

Open Standards that Open Markets™ Work Group Approach Focus Approach Develop Business Process Identify Gaps Reach out Blue prints for manufacturing supply chain collaboration Analyze existing standards and protocols Work with OAG Ensure wide, cross industries inputs and applicability B2B focus while identifying A2A activities to provide the context Identify new concepts/objects and enhancements Work with MESA, AIAG, and others Supply chain assembly Procurement Manufacturing coordination Supply chain assembly Procurement Manufacturing coordination Business Process Change management Quality management Inspection Change management Quality management Inspection Activity Engineered components Detailed engineering data Drawings, models, etc. Engineered components Detailed engineering data Drawings, models, etc. Domain

Open Standards that Open Markets™ Example of Technical Work Needed © Open Applications Group, All Rights Reserved Business Process Models 9 OAGIS BODs

Open Standards that Open Markets™ Example of Technical Work Needed © Open Applications Group, All Rights Reserved Business Process ModelsReference Supply Chain Model 10 OAGIS BODs

Open Standards that Open Markets™ Example of Technical Work Needed © Open Applications Group, All Rights Reserved Business Process Models Reference Supply Chain Model 11 OAGIS BODs OAG Business Scenarios

Open Standards that Open Markets™ Example of Technical Work Needed © Open Applications Group, All Rights Reserved Business Process Models Reference Supply Chain Model 12 OAGIS BODs OAG Business Scenarios Semantic OAGIS BODs Semantic OAGIS BODs

Open Standards that Open Markets™ Example of Technical Work Needed © Open Applications Group, All Rights Reserved Business Process Models Reference Supply Chain Model 13 OAGIS BODs OAG Business Scenarios Semantic Refinement OAGIS BODs Semantic Refinement OAGIS BODs

Open Standards that Open Markets™ Summary Outputs Deliver via OAGi open standard Standard gap analysis Business process guideline for multi- tiered supply chain collaboration Basis for additional work groups Outcomes Increased fidelity & traceability of key supply chain communications Reduced effort to connect new suppliers Migration of unstructured data to structured data Faster promulgation of changes throughout chain Quicker response to demand fluctuations Impacts Lower costs Greater SC agility and resilience Reduced risks Faster time to market Greater brand protection

Open Standards that Open Markets™ What is NOT in Scope Saving the world...

Open Standards that Open Markets™ Key Deliverables Summary Business Process Descriptions Gap Analysis It is possible other Working Groups may be created from this work

Open Standards that Open Markets™ Working Group Members Nenad Ivezic, NIST – Co-Chair Conrad Leiva, iBASEt – Co-Chair Chris Peters, The Lucrum Group Serm Kulvatunyou, NIST Hyunbo Cho, Thira Mike Rowell, Oracle Ralph Hertlein, OAGi Jeoung-Ha Kim, U-Tech

Open Standards that Open Markets™ Planned Schedule Open at this time

Open Standards that Open Markets™ Assumptions, Dependencies and Issues Assumptions –Sufficient staffing –Appropriate tooling available Dependencies –None known Issues –None at this time

Open Standards that Open Markets™ Outside Resources Required None known at this time

Open Standards that Open Markets™ Next Steps Decision on Work Group Policy Board Call for Participation Schedule 1 st Meeting Set up Google Drive to share

Open Standards that Open Markets™ Questions?

Open Standards that Open Markets™ Name Project Definition Signature Page By signing this Project Definition you are agreeing to make a contribution to this Working Group The scope of the contribution is constrained to the scope definition in this Project Definition. The complete definition of a contribution and the terms under which the contribution are made is described in the OAGi Intellectual Property Policy, which is available on our web site at This page can be scanned and ed to or faxed to OAGi staff at +1 (770) Authorized Signature Name Printed Organization Name Date