ARC's Greg Gorbach's Global Manufacturing Presentation at ARC's 2008 Industry Forum
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ARC's Greg Gorbach's Global Manufacturing Presentation at ARC's 2008 Industry Forum in Orlando, FL.
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ARC's Greg Gorbach's Global Manufacturing Presentation at ARC's 2008 Industry Forum
- 1. Global Manufacturing Trends and Solutions in MES and Operations Management Greg Gorbach Vice President ARC Advisory Group ggorbach@arcweb.com
- 2. 2 © ARC Advisory Group Today’s Business Requirements Drive 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.
- 3. 3 © ARC Advisory Group Manufacturing Systems Have Not Kept Pace Older Applications and IT Infrastructure Limit Performance Manufacturers have not invested enough in plant floor ITSource: ARC Advisory Group
- 4. 4 © ARC Advisory Group Manufacturers Are Now Investing in OM OM is an $8 Billion Market and Growing
- 5. 5 © ARC Advisory Group Industry Classic MES New Requirements Semiconductor 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
- 6. 6 © ARC Advisory Group Customers Distribution Finished Goods Supplier Network Components & Materials Discrete Manufacturing Dynamics Require a Collaborative Manufacturing Approach Product Support Engineering Design Manufacturing Operations Business Systems Design, Specifications, & Mfg Process Enterprise
- 7. 7 © ARC Advisory Group Today’s Market Dynamics Demand Speed OM Enables Real-time Performance Improvement External Business Customers Production Automation Suppliers OM Logistics PLM CRMSRM ERP Internal ARC ‘s Collaborative Manufacturing Management Model Logistics Provider Distributor Retailer Manufacturing Plant Assembly Plant Contract Manufacturer Retailer Manufacturing Plant Enterprise
- 8. 8 © ARC Advisory Group (SOA) CMM Applications Map Let’s Get on the Same Page re: MES and OM Business Customers FIN ERP EAM Equipment & Automation HR WMS T&A Suppliers Lean/CI TMS HMI MI Sched Production etc. CAM Quality MPM CRM CAD Operations Infrastructure Enterprise Infrastructure SCM Gen 3 (Integrated Apps, Infrastructure, & Connectivity) MES Gen 2 MES MES Gen 1 Gen 4 (Standalone, Industry- Specific Application) (Collection of Applications) Operations Management
- 9. 9 © ARC Advisory Group 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
- 10. 10 © ARC Advisory Group Enterprise/Business Operations Operations Management Systems Automation Systems CMM Model for Production Excellence Engineering, OM, and Resources Working Together Operations Management 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
- 11. 12 © ARC Advisory Group Three Pillars of OM Solutions Support Business Needs with Operations-Wide Performance Operations Management Source: ARC Advisory Group
- 12. 13 © ARC Advisory Group Pillar 1: OM IT Infrastructure Platforms, Processes, Portals, etc. Infrastructure •Real-time Plant Support •Technology Platform •Applications Platform •Business Processes •Security •Role-based Portals •etc.
- 13. 14 © ARC Advisory Group Custom Integration Operations PAM LIMS CPM/Automation Data TMS WMS Equipment Operations Apps Platform PDM P&IDs Models Equipment Specs Drawings Eng. & Design Apps Platform Enterprise Apps Platform CRMSCM FIN ERP EAM Content Technology PlatformEng & Design Enterprise Technology Platform Technology Platform Multiple Platforms Need To Collaborate
- 14. 15 © ARC Advisory Group Design/Engineering Infrastructure Global Manufacturing Operations Enterprise Infrastructure Operations Infrastructure = Manufacturing Node = Design Node
- 15. 16 © ARC Advisory Group Pillar 2: Connectivity Required for Performance Operations Connects with: Enterprise Product Support Operations Controls & Equipment Supply Chain & External Operations Design & Engineering Source: ARC Advisory Group Synchronization of Manufacturing with other entities Orchestration of Business Processes Collaboration among all required parties Alignment of goals throughout the Enterprise Response to dynamic demands Visibility of Manufacturing Information
- 16. 17 © ARC Advisory Group Typical Integration Approaches 1. Enterprise Communications Bus Select Technology Platform, Manage Interfaces, etc. 2. Standardize Infrastructure Tools for All Integration Projects 3. Operations Management Supplier Solution Align with Operations Management Supplier’s Chosen Technology 4. Enterprise Supplier Solution Align with Enterprise Supplier’s Chosen Technology
- 17. 24 © ARC Advisory Group Pillar 3: OM Functions/Processes Use 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
- 18. 25 © ARC Advisory Group OM Functional Requirements 3 of 8 Categories Partially Illustrated Here Category Function Description Production 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 Description Production 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 … Production 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 Execution 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 Description Product 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 Product Data Tracking 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 … 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… Product Data Tracking Bulk Issue Transactions When MRP bulk-issues material to the floor and does not track consumption, the Operations Management system should not …
- 19. 26 © ARC Advisory Group OM Functional Requirements Must Include Integration & Performance Requirements Category Function Description Integration - 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 Description Integration - 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 Description Integration - 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 Description System 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 …
- 20. 27 © ARC Advisory Group Thank You!
Editor's Notes
- These problems are particularly difficult because the installed technology base in plant IT is woefully out of date. The industry has gone through a period where significant technology investments were made in business (ERP) systems, and the plant floor was left behind. Manufacturers often have hundreds of special purpose applications. Many don’t have anyone trained to support them, and little or no documentation. You can’t get at the data inside. Lots of subtle inefficiencies, constraints, and workarounds have grown in the manufacturing environment because of these brittle, static applications. The problem has been growing, but given what’s going on in the global economy, it’s time to acknowledge that this is a recipe for disaster.
- No matter what specific pain points lead you to seek new plant solutions, it is important to think about the infrastructure and architecture very early in the process. Do you want to standardize on a single technology platform, application platform, and business process engine? Or are you content to support multiple ones in different areas. Infrastructure decisions must take into account these issues, and decide what to use for security, dashboards, and other operations-wide services. “Production Operations” is central to every dimension of manufacturing. It is in the middle of the design chain, the middle of the supply chain, and between business systems and automation and control systems. It is critical that Operations Management systems easily end effectively integrate with all of these systems. There are seven essential categories of functionality in Operations management systems. (read). With these, strategies such as compliance management, real-time performance monitoring, or rapid product innovation, are implemented and supported at the plant floor level.
- No matter what specific pain points lead you to seek new plant solutions, it is important to think about the infrastructure and architecture very early in the process. Do you want to standardize on a single technology platform, application platform, and business process engine? Or are you content to support multiple ones in different areas. Infrastructure decisions must take into account these issues, and decide what to use for security, dashboards, and other operations-wide services. “Production Operations” is central to every dimension of manufacturing. It is in the middle of the design chain, the middle of the supply chain, and between business systems and automation and control systems. It is critical that Operations Management systems easily end effectively integrate with all of these systems. There are seven essential categories of functionality in Operations management systems. (read). With these, strategies such as compliance management, real-time performance monitoring, or rapid product innovation, are implemented and supported at the plant floor level.
- Integration is critical for a dynamic manufacturing operation that is capable of responding to dynamic marketplace demands, and this is more than just P2B integration.There are five areas that frequently must be integrated to Operations systems:Enterprise/Business systems(P2B)Design and Engineering systemsAutomation, Controls Equipment, and other plant-level applicationsSuppliers, outsourced manufacturing operations, and sister plants, including transportation and logisticsProduct Support operations: Maintenance, Repair, and Overhaul (MRO) etc.
- Oracle Application Integration Architecture (AIA): Based on Fusion Middleware Integrates all Oracle Products (E-Business Suite, JD Edwards, Siebel, Agile, …)Elements: Industry Reference Models … Models based on key industry processes Enterprise Business Objects (EBO): …Unify (canonical) data models (OAGi, UN/CEFACT) Enterprise Business Serrvices (EBS) … Re-usable services Application Business Connector Services (ABS): …Integrate Legacy Systems Process Integration Packs (PIP) … Integrate and extend applications … Componsite applications