Trends and solutions in mes and operations management g gorbach arc orlando 2008

Global ManufacturingGlobal ManufacturingGlobal Manufacturing

Trends and Solutions in

Global Manufacturing

Trends and Solutions inTrends and Solutions inMES and Operations Management

Trends and Solutions inMES and Operations Management

Greg Gorbachi idVice President

ARC Advisory [email protected]

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

GlobalizationRapid Product InnovationProcess InnovationCollaborationS h i tiSynchronization LeanContinuous ImprovementComplianceComplianceRisk ManagementPerformanceFlexibilityyPull-based ProductionEtc.

2© ARC Advisory Group

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 ITSource: ARC Advisory Group

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


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

Industry Classic MES New RequirementsSemiconductor Complex Routing, Resource

Allocation Quality WIP TrackingVisibility, Analytics/Decision Support, Outsourced Manufacturing Business System SynchronizationAllocation, Quality, WIP Tracking,

etc.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 etcSignature, etc. 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 CAPP, Quality, Resource Allocation Visibility, Analytics/Decision Support, OutsourcedA&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,

Visibility, Analytics/Decision Support, Orchestrate Inventory Replenishment by Operation,Supplier (Operators, Workstations, Tooling,

etc.) Work Instructions, Just-in Sequence Manufacturing/ Packing/ Shipping, Error-proof Packout and Labeling, etc.

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 &

Visibility, Outsourced Manufacturing, Global Manufacturing Business System Synchronization


Marquees, Line Control & Broadcasting, Supplier Component Sequencing, etc.

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

Discrete Manufacturing DynamicsRequire a Collaborative Manufacturing ApproachDiscrete Manufacturing DynamicsRequire a Collaborative Manufacturing Approachq g ppq g pp

Components &

Business Systems

Supplier Network

Components & Materials

Product Support

eCustomers

Finished Goods

Manufacturing Operations

Design, Specifications, & Mfg Processn

terp

ris

DistributionEngineeringDesign

En


Today’s Market Dynamics Demand SpeedOM Enables Real-time Performance ImprovementToday’s Market Dynamics Demand SpeedOM Enables Real-time Performance Improvementpp

ARC ‘sCollaborative Manufacturing

Manufacturing Plant

Business

InternalManufacturing Management Model

External

CustomersCRMSRM

ERP

Manufacturing Plant

eSuppliers

OMLogistics

PLMContract Manufacturer

nte

rpri

s

Production

Automation

Logistics Provider

Distributor

Retailer

En


Retailer

AssemblyPlant

Retailer

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

FINERP

HR

CustomersSuppliersCRMSCM

(SOA)T&A

TMS

CAM MPM

CAD

Operations Infrastructure

Enterprise InfrastructureGen 4

EAM

E i &

WMS

T&A

Lean/CI

HMI

MISched

etc.

CAM

Quality

MPM

Gen 3(Integrated Apps, Infrastructure, &

Connectivity)

MESOperations Management


Equipment & Automation

Production

Connectivity)

MES Gen 2MES Gen 1(Standalone, Industry-Specific Application)

(Collection of Applications)

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 logisticsEspecially 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

CMM Model for Production ExcellenceEngineering, OM, and Resources Working TogetherCMM Model for Production ExcellenceEngineering, OM, and Resources Working Togetherg g, , g gg g, , g g

Enterprise/Business Operations

Operations M t

Operations Management

Inbound Supply Chain & Logistics

Customer Relationship

OM IT Infrastructure

Management Systems

Management

ProductionManufacturing

Outbound Supply Chain & Logistics

Product Design

OM Functionality (Apps or Services)

AutomationSystems

Production Equipment & Automation

Manufacturing Engineering


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 pp ppp p

Infrastructure• Real-time Plant Support

Connectivity• Enterprise

Functionality• Plan Productionpp

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

p• Design & Engineering• Operations, Controls, &

Equipment• Supply Chain & External

Operationsd

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

• etc. • Product Support Opsy

• Manage Assets• Support Product thru EOL




Source: ARC Advisory Group

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

Infrastructure•Real-time Plant SupportReal time Plant Support•Technology Platform•Applications Platform•Business Processes•SecurityR l b d P t l•Role-based Portals

•etc.


Multiple Platforms Need To Collaborate

Enterprise Technology

CRMSCM

FINERP EAMContent

Enterprise gPlatform

Custom Integration

Enterprise Apps Platform

Custom Integration

Data WMS

Operations Apps Platform

PDM EquipmentDrawings

Eng. & Design Apps Platform

Operations

PAMLIMS

CPM/AutomationDataTMS

Equipment

PDM

P&IDsModels

EquipmentSpecs

Drawings

Technology PlatformEng & Design

Technology Platform


Operations PlatformEng & Design Platform

Global Manufacturing OperationsGlobal Manufacturing Operations

Design/Engineering Infrastructure

Enterprise InfrastructureOperations Infrastructure

es g / g ee g as uc u e


= Manufacturing Node = Design Node

Pillar 2: ConnectivityRequired for PerformancePillar 2: ConnectivityRequired for Performanceq o oq o o

S h i iEnterprise

Synchronization of Manufacturing with other entities

Orchestrationf B i P

OperationsConnects

Product Support

Design & Engineering

of Business Processes

Responseto dynamic demands

with:

OperationsSupply

Collaborationamong all required parties

AlignmentOperations Controls & Equipment

Chain & External

Operations


of goals throughout the Enterprise

Visibilityof Manufacturing Information



Typical Integration ApproachesTypical Integration Approaches

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

2. Standardize InfrastructureTools for All Integration Projectsg j

3. Operations Management Supplier SolutionAlign with Operations Management Supplier’s Chosen T h lTechnology

4. Enterprise Supplier SolutionAlign with Enterprise Supplier’s Chosen TechnologyAlign 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•ProcessesPlan Production

Processes Examples

Processes•Data and Test Needs

Plan Production

•Enforce Processes•Guide Operators•Collect Data

Execute Production

•WIP Tracking•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-sideMove & Store Inventory•RFID

Move & Store Inventory

•Maintenance & Repair•Work Orders•Synchronize w/Operations

Manage Assets

•RMA

S d h O


•MRO•Recovery & Recycling

Support Product thru EOL

OM Functional Requirements3 of 8 Categories Partially Illustrated HereOM Functional Requirements3 of 8 Categories Partially Illustrated Hereg yg y

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 buildPlanning 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

Create and maintain workflows that define and enforce complex procedures, standard processes, rework paths, Material Review

Enforcementp , p , p ,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 …

EnforcementProduction Execution

Workflow Management/Process Enforcement

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

Production Execution

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 …

Production End Processing At or near the completion of processing on a lot the system must beCategory Function DescriptionProduct Data WIP Tracking Track work-in-process by lot, batch, or serial number or in Production

ExecutionEnd 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...Tracking

p ycombination, 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

f t i ti i


Traceability manufacturing operation in …Product Data Tracking

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 Requirementsg qg q

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, C t l &

Realtime Data -Machine Integration, B d RF M l

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

Controls, & Equipment

Barcode, RF, Manual

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

Integration to Outsourced Manufacturing

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

Supply ChainManufacturing Operations or Supplier Manufacturing Operations

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 asSupply Chain Operations SystemsEnterprise 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

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


yConfiguration (FUTURE)

Thank You!


Trends and solutions in mes and operations management g gorbach arc orlando 2008

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