ARC's Greg Gorbach's Global Manufacturing Presentation at ARC's 2008 Industry Forum

Global Manufacturing

Trends and Solutions inMES and Operations Management

Global Manufacturing

Trends and Solutions inMES and Operations Management

Greg GorbachVice President

ARC Advisory [email protected]

2© ARC Advisory Group

Today’s Business RequirementsDrive Change & Determine Real-time Enterprise NeedsToday’s Business RequirementsDrive Change & Determine Real-time Enterprise Needs

Globalization Rapid Product Innovation Process Innovation Collaboration Synchronization Lean Continuous Improvement Compliance Risk Management Performance Flexibility Pull-based Production Etc.


Manufacturing Systems Have Not Kept PaceOlder Applications and IT Infrastructure Limit PerformanceManufacturing Systems Have Not Kept PaceOlder Applications and IT Infrastructure Limit Performance

Manufacturers have not invested enough in plant floor IT

• 100’s of standalone applications• Not feasible to

access data• Many unsupported

apps• Obsolete hardware• Limited integration• Etc.

Source: ARC Advisory Group


Manufacturers Are Now Investing in OMOM is an $8 Billion Market and GrowingManufacturers Are Now Investing in OMOM is an $8 Billion Market and Growing


Industry Classic MES New RequirementsSemiconductor Complex Routing, Resource

Allocation, Quality, WIP Tracking, etc.

Visibility, Analytics/Decision Support, Outsourced Manufacturing, Business System Synchronization, KPIs, Performance, Change Mgmt, Security, Electronic Manufacturing History etc.

Pharmaceutical Compliance, Quality (Direct and Enforce Production), Electronic Batch Records, Electronic Signature, etc.

Visibility, Analytics/Decision Support, Outsourced Manufacturing, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History etc

Continuous Process

Collection of Apps: Optimization, Historian, Advanced Process Control, etc.

Visibility, Analytics/Decision Support, Outsourced Manufacturing, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History, etc

A&D (Complex Discrete)

CAPP, Quality, Resource Allocation (Operators, Workstations, Tooling, etc.) WIP Tracking, Traceability, Work Instructions, NCR Resolution, etc.

Visibility, Analytics/Decision Support, Outsourced Manufacturing, Supplier Quality Mgmt, Change Management, Security, Electronic Manufacturing History, etc

Automotive Supplier

Quality, Resource Allocation (Operators, Workstations, Tooling, etc.) Work Instructions, Just-in Sequence Manufacturing/ Packing/ Shipping, Error-proof Packout and Labeling, etc.

Visibility, Analytics/Decision Support, Orchestrate Inventory Replenishment by Operation, Traceability and Recall Management, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History, etc

Automotive OEM Visual Alarms, Stack Lights, and Marquees, Line Control & Broadcasting, Supplier Component Sequencing, etc.

Visibility, Outsourced Manufacturing, Global Manufacturing, Business System Synchronization, Performance, Change Mgmt, Security, Electronic Manufacturing History, Traceability and Genealogy, etc

Today’s Dynamic, Demanding Environment Places a Premium on Information and Synchronization


Customers

Distribution

Finished Goods

Supplier Network

Components & Materials

Discrete Manufacturing DynamicsRequire a Collaborative Manufacturing ApproachDiscrete Manufacturing DynamicsRequire a Collaborative Manufacturing Approach

Product Support

EngineeringDesign

Manufacturing Operations

Business Systems

Design, Specifications, & Mfg Process

Value Chain

Lifecy

cleEn

terp

rise


Today’s Market Dynamics Demand Speed OM Enables Real-time Performance ImprovementToday’s Market Dynamics Demand Speed OM Enables Real-time Performance Improvement

External

Design

Support

Business

Customers

Production

Automation

Suppliers

OMLogistics

PLM

CRMSRM

ERP

Internal

ARC ‘sCollaborative Manufacturing Management Model

Logistics Provider

Distributor

Retailer

Manufacturing Plant

Assembly Plant

Contract Manufacturer

Retailer

Manufacturing Plant

Value Chain

Lifecy

cleEn

terp

rise


(SOA)

CMM Applications MapLet’s Get on the Same Page re: MES and OMCMM Applications MapLet’s Get on the Same Page re: MES and OM

Business

Customers

FINERP

EAM

Equipment & Automation

HR

WMS

T&A

Suppliers

Lean/CI

TMS

HMI

MISched

Production

etc.

CAM

QualityDesignMPM

CRM

CAD

Operations Infrastructure

Enterprise Infrastructure

SCM

Support

Gen 3(Integrated Apps, Infrastructure, &

Connectivity)

MES Gen 2

MES

MES Gen 1

Gen 4

(Standalone, Industry-Specific Application)

(Collection of Applications)

Operations Management


Operations Management Definition:Operations Management Definition:

Operations Management is the management of the people, business processes, technology and capital assets involved in:

• Procuring and receiving raw materials and components- Especially as it relates to obtaining, storing, and moving

necessary materials/components in a timely manner and of suitable quality to support efficient production

• Implementing product designs, specifications, formulations, or recipes by manufacturing products- Including manufacturing process planning and validation

• Distributing these products to customers- Especially as it relates to sequencing and in-house logistics

• And for some products, supporting them through their End-of-Life

Let Business Requirements Drive Technology Solutions


Enterprise/Business Operations


Systems

AutomationSystems

CMM Model for Production ExcellenceEngineering, OM, and Resources Working TogetherCMM Model for Production ExcellenceEngineering, OM, and Resources Working Together


Production Equipment & Automation

Manufacturing Engineering

Outbound Supply Chain & Logistics

Inbound Supply Chain

& Logistics

Product Design

Customer Relationship

OM IT Infrastructure

OM Functionality (Apps or Services)

Collaborative Production Environment for Highly Flexible Manufacturing


Three Pillars of OM SolutionsSupport Business Needs with Operations-Wide Performance Three Pillars of OM SolutionsSupport Business Needs with Operations-Wide Performance

Infrastructure• Real-time Plant

Support• Technology Platform• Applications Platform• Business Processes• Security• Role-based Portals• etc.

Connectivity• Enterprise• Design & Engineering• Operations, Controls,

& Equipment• Supply Chain &

External Operations• Product Support Ops

Functionality• Plan Production• Execute Production• Track Product Data• Inform & Analyze• Enforce Quality• Move & Store

Inventory• Manage Assets• Support Product thru

EOL




Pillar 1: OM IT InfrastructurePlatforms, Processes, Portals, etc. Pillar 1: OM IT InfrastructurePlatforms, Processes, Portals, etc.

Infrastructure• Real-time Plant Support

• Technology Platform• Applications Platform• Business Processes• Security• Role-based Portals• etc.


Custom Integration

Operations

PAMLIMS

CPM/AutomationData

TMSWMS

Equipment

Operations Apps Platform

PDM

P&IDsModels

EquipmentSpecs

Drawings

Eng. & Design Apps Platform

Enterprise Apps Platform

CRMSCM

FINERP EAMContent

Technology PlatformEng & Design

Enterprise

Technology Platform

Technology Platform

Multiple Platforms Need To Collaborate


Design/Engineering Infrastructure

Global Manufacturing OperationsGlobal Manufacturing Operations

Enterprise InfrastructureOperations Infrastructure

= Manufacturing Node = Design Node


Pillar 2: ConnectivityRequired for PerformancePillar 2: ConnectivityRequired for Performance

Operations Connects with:

Enterprise

Product Support

Operations Controls & Equipment

Supply Chain & External

Operations

Design & Engineering


Synchronization of Manufacturing with other entities

Orchestrationof Business Processes

Collaborationamong all required parties

Alignmentof goals throughout the Enterprise

Responseto dynamic demands

Visibilityof Manufacturing Information


Typical Integration ApproachesTypical Integration Approaches

1. Enterprise Communications BusSelect Technology Platform, Manage Interfaces, etc.

2. Standardize InfrastructureTools for All Integration Projects

3. Operations Management Supplier SolutionAlign with Operations Management Supplier’s Chosen Technology

4. Enterprise Supplier SolutionAlign with Enterprise Supplier’s Chosen Technology


Pillar 3: OM Functions/ProcessesUse Detailed, Industry-Specific List for System SelectionPillar 3: OM Functions/ProcessesUse Detailed, Industry-Specific List for System Selection

•Schedule

•Processes

•Data and Test Needs

Plan Production•Enforce Processes

•Guide Operators

•Collect Data

Execute Production

•WIP Tracking

•Electronic History

•Traceability & Genealogy

Track Product Data

•Role-based Views

•Drill-down & Analytics

•Event-triggered Notification

Inform & Analyze

•CAPA

•NCM

•Supplier Quality

Enforce Quality

•WMS

•Line-side

•RFID

Move & Store Inventory

•Maintenance & Repair

•Work Orders

•Synchronize w/Operations

Manage Assets

•RMA

•MRO

•Recovery & Recycling

Support Product thru EOL

Processes Examples


OM Functional Requirements3 of 8 Categories Partially Illustrated HereOM Functional Requirements3 of 8 Categories Partially Illustrated Here

Category Function DescriptionProduction Planning

Schedule Management Develop and maintain short-term detailed schedule. Coordinate with input from ERP schedule or Order Management system

Production Planning

Sequence Build to Order Support 100 or more operations and multiple production lines building products according to the OEM sequenced build requirement. Develop …

Production Planning

Define In-Process Data Collection

Data Collection Templates shall be configurable and allow users to specify a list of rules and data items to be collected at a process step: User defined …

Production Planning

Define Workflows/Process Enforcement

Create and maintain workflows that define and enforce complex procedures, standard processes, rework paths, Material Review Board (MRB) procedures …

Production Planning

Define Workflows/Process Enforcement

Create process plans (similar to ERP routings, but much more detailed) consisting of: …

Category Function DescriptionProduction Execution

Sequence Build to Order Execution

Support 100 or more operations and multiple production lines building products according to the OEM sequenced build requirement...

Production Execution

Workflow Management/Process Enforcement

Any sequence of the following actions occur within a defined process step: • Enter Step …


Workflow Management/Process Enforcement

Ensure that all routings, assembly instructions, rework, inspection and test operations, data collection, approval/buyoff signatures, material movements,…


Start Processing Verification

Provide the ability to induct a lot and have it automatically go to a preparation process (e.g cleaning or inspection). This should be …


End Processing Verification

At or near the completion of processing on a lot, the system must be able to check that: The correct components were consumed...

Category Function DescriptionProduct Data Tracking

WIP Tracking Track work-in-process by lot, batch, or serial number or in combination, across all production steps and processes and locations, including …

Product Data Tracking

Sequence Build to Order Collect and associate process variable information by operation and sequence number


Serialized Component Tracking, Genealogy, and Traceability

Support OEM requirement for complete part traceability and genealogy, all the way from material suppliers through each manufacturing operation in …


Genealogy Trace from assembly lot numbers or serial numbers to all of the component and sub-assembly lots that were used to construct those assemblies, and…


Bulk Issue Transactions When MRP bulk-issues material to the floor and does not track consumption, the Operations Management system should not …


OM Functional RequirementsMust Include Integration & Performance RequirementsOM Functional RequirementsMust Include Integration & Performance Requirements

Category Function DescriptionIntegration - Product Lifecycle

New Product Introduction

Define processes for prototype lots and collect detailed data for analysis. Support multiple prototyping iterations. Synchronize …

Integration - Product Lifecycle

Post-production Product Support

Provide a mechanism to feed post-production quality/defect data back into the product development cycle (design engineering and …Category Function Description

Integration - Operations, Controls, & Equipment

Realtime Data - Machine Integration, Barcode, RF, Manual

Integrate to plant equipment, systems, and devices as necessary to gather or share data and information required to coordinate the …

Integration - Operations, Controls, & Equipment

Interface to Plant Applications and Systems

Provide connectors/adapters to enable the collection of data in near-real-time from plant applications and systems such as HMI, …

Category Function DescriptionIntegration - External Operations and Supply Chain

Integration to Outsourced Manufacturing Operations or Supplier Manufacturing Operations

Receive order status and quality information from outsource manufacturing operations and independent supplier operations to ensure …

Integration - External Operations and Supply Chain

Integration to Customer Quality, Supplier Management, ERP, and Operations Systems

Provide real-time production status information to customer systems. Provide component/assembly identification information to customers …

Category Function DescriptionIntegration - Enterprise

Real-time Visibility Provide portlets to support real-time graphical, tabular, and drill-down display of manufacturing data in dashboards or portals such as …

Integration - Enterprise

Scenario Integration Provide a means to compose, populate, generate, and exchange messages with ERP and other business systems, based on P2B standards such as …

Category Function DescriptionSystem Performance

System Start-up, Validation, & Change Mgmt

Assess and evaluate the system in detail. Document evidence that the system operates and behaves in accordance with specifications …

System Performance

System Design and Configuration: Virtual OM System Configuration (FUTURE)

Design and create routings, workflows, etc. based on digital virtual manufacturing model. Automatically generate OM system …


Thank You!

ARC's Greg Gorbach's Global Manufacturing Presentation at ARC's 2008 Industry Forum

Technology

Transcript of ARC's Greg Gorbach's Global Manufacturing Presentation at ARC's 2008 Industry Forum