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MESA workshop ARC Europe Industry Forum 2016

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Slides used to guide the discussion during MESA workshop at ARC Europe Industry Forum in Amsterdam, March 3rd, 2016.
Includes notes of the discussion. Subjects: challenges in MOM/MES: complexity related to supply chain, manufacturing and new product introduction. Organizational alignment and governance.

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MESA workshop ARC Europe Industry Forum 2016

  1. 1. MESA workshop IT/OT Convergence: people, organization and governance Valentijn de Leeuw Vice President ARC Advisory Group vdeleeuw@arcweb.com AIOTI ALLIANCE FOR INTERNET OF THINGS INNOVATION Michel Devos Independent consultant MESA EMEA Board member Michel.devos@mesconsult.be
  2. 2. The power of knowing what MESAKNOWS Smart Manufacturing Challenges •  Supply Chain Collabora/on (c) MESA Interna/onal - ARC EIF 2016
  3. 3. The power of knowing what MESAKNOWS Smart Manufacturing Challenges •  Manufacturing complexity (c) MESA Interna/onal - ARC EIF 2016 MTS è MTO, ETO Regula9ons Collabora9ve Robo9cs Mechatronics Agility Mass Produc9on - Customiza9on
  4. 4. The power of knowing what MESAKNOWS Smart Manufacturing Challenges •  Lack of visibility v Combine business transac/onal data with opera/onal data •  Lack of flexibility v Enable the quick change of the processes to fit with business needs •  Lack of interoperability & root cause analysis v Create correla/on of real-/me data from closed, proprietary systems and equipment (c) MESA Interna/onal - ARC EIF 2016
  5. 5. The power of knowing what MESAKNOWS Impacts on IT/OT •  « Big Data » v More and more data to be collected and stored over long periods v Keep a high level of integrity and availability of data •  Demand on IT/OT resources v Escala/on of demand for applica/ons, resources and budget v Deployment of applica/ons on mobile devices •  IT/OT convergence v Organiza/onal and technical implica/ons (c) MESA Interna/onal - ARC EIF 2016
  6. 6. The power of knowing what MESA KNOWS The Demand-Driven Manufacturing Applica9ons Gap Manufacturing 2.0 DDSN Maturity Supply Network Dynamism Product/Mfg Complexity Dynamic Mul9 Tier Collabora9on Mul9-Site (Owned) Single Site (Owned) Dynamic Single Supply Chain Collabora9on Sta9c Internal Collabora9on MOM Local Execu9on Global Coordina9on 1 2 ISA Degree of Contract Mfg, Rate of NPDI Product Mix, # of Mfg Styles MTS ETO 3 Mul9-Site (Owned & Contracted) © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. (c) MESA Interna/onal - ARC EIF 2016 Smart Manufacturing
  7. 7. The power of knowing what MESA KNOWS Old Tiers of IT and OT ERP Enterprise Information Technology Manufacturing Operations Technology PLM MES GPS SSO BI SCADA Energy Mgt OEE PLC Sensors Meters Need for convergence ! (c) MESA Interna/onal - ARC EIF 2016
  8. 8. The power of knowing what MESA KNOWS New IT PlaTorms for Smart Manufacturing Smart Machines Robots RFID Sensors 3D Printers Workforce Roles Supplier Mgt Engineering Procurement Tooling Mgt Opera/ons Quality Mgt Facili/es Accoun/ng Services GPS SSO BI Apps Make Plan Source Energy Mgt Mgt Dash Design Receive Sustain Plant Prev Maint Data Collect Schedule Purchase M2M+ A2A + B2B (c) MESA Interna/onal - ARC EIF 2016
  9. 9. The power of knowing what MESAKNOWS Align Four Domains to Achieve Manufacturing Strategy •  IT must enable business in achieving its goals •  Instead of managing IT projects in isola/on, always manage projects towards these business strategies and opera/ons capabili/es •  Take into ALL roles in account ALL 4 domains v  Processes, Structure, People, IT •  Each Domain in context must be be taken into account as it shapes the manufacturing strategy © 2011 Atos Origin. All Rights Reserved. (c) MESA Interna/onal - ARC EIF 2016
  10. 10. The power of knowing what MESA KNOWS Before and AXer MES/MOM ”Bridging the Gap”?! Misalignment Gap (c) MESA Interna/onal - ARC EIF 2016
  11. 11. The power of knowing what MESA KNOWS Governance: Align IT, Opera9ons and Business (c) MESA Interna/onal - ARC EIF 2016
  12. 12. The power of knowing what MESA KNOWS Organiza9on and Alignment of Corporate & Plant Priori9es Corporate Plant IT • System Integration, Infrastructure Support & Standards Compliance • Rationalize Equipment Data for Data Integrity •Consolidates disparate plant floor systems •Minimizes shadow-IT projects & resources MFG • Exceed Quality, Production, Waste and Cost targets •Revenue improvements Daily Production Schedule Attainment Expanded Capacity •Cost improvements Increased laborproductivity Lowerplantexpenses •Cash generation Reduced inventory Higherreturn on assets Manufacturing Systems CoE Group (c) MESA Interna/onal - ARC EIF 2016
  13. 13. The power of knowing what MESAKNOWS CoE members from All Levels: Business to Shop Floor •  Grounded in manufacturing work process requirements •  Integrated with na/onal teams •  Understanding of unique business and plant features •  Distributed and central •  Aware of interna/onal and na/onal trends •  Connected with partner groups •  Skilled in target areas (c) MESA Interna/onal - ARC EIF 2016
  14. 14. The power of knowing what MESAKNOWS CoE System Scope Responsibility •  Finite capacity scheduling (FCS) •  Manufacturing metrics and repor/ng System •  Enterprise manufacturing intelligence (EMI) System •  Mfg opera/ons work process management •  Plant warehouse management system (WMS) •  Enterprise recipe management system •  Enterprise batch execu/on system •  Total produc/ve maintenance and predic/ve maintenance system •  Quality management system (QMS, nonconformance) •  Track & trace system •  SCADA and process control systems •  Plant informa/on and industrial networks •  Plant data historians and archives (c) MESA Interna/onal - ARC EIF 2016
  15. 15. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 15 ORGANIZATION AND GOVERNANCE
  16. 16. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 16 Organizational view of governance • Organization § Practitioners § Support and expertise § Decision making Asset Management CoE & Support Services Services and Support func/ons Engineering BU Maintenance Security Enterprise / division Business Commi]ee Technical Commi]ee Risk & Compliance OT Finance, HR, .. Asset Management Investment Central Security Experts & Prac99oners Engineering support IT/OT IT Contractor Engineering IT/OT Mgt Commi]ee Board
  17. 17. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 17 Process view of governance • IT/OT Performance • Update § Needs and Requirements § Technical strategy § Business input • Technical validation • Business validation § Negotiation § Prioritization § Performance steering § Resource availability • Strategic plan • Execution § Planning § Resources assignment TC BC+TC CoE Support Strategic Plan Monitoring Measurement Evaluation Technology Strategy Approval Priori/za/on Planning Resources Priori/za/on Planning Resources Policy BU Update IT/OT strategy Short term planning Exper/se Best Prac/ces Risk assessment Performance Management Corporate Plan and objec/ves Business needs needs Clients Society Legislation Requirements Management Strategic Plan Proposal Performance Short Term Plan Policy Proposal Policy Collection Business Needs Support Experts Practitioners BU project Implementation processes Systems Assets Finance Investment planning
  18. 18. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 18 NOTES
  19. 19. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 19 Workshop discussion notes • Supply chain integration § Regarding Manufacturing of goods and materials § Important aspect of competitiveness to have complex supply chain networks especially across regions § End-to-End traceability (across supply chain networks) • Increasing needs for flexibility, ability, complexity § Also keep it simple when possible (and use analytics and optimization to damp supply chain volatility) • Need for data warehouse of manufacturing information (time series data plus events for context) plus OEE, plus quality plus … § Virtual versus distributed: •  Trend in direction of a slingle DW to unload sites and ensure data backup •  The art is to select and clean while extracting and fuel the DW with information as opposed to data § kjhgfdsOpportunities: short term: reporting and historical analytics § Opportunities forward looking: predictive and prescriptive analytics
  20. 20. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 20 Workshop meeting notes • People factor § Focus or intent can block people to see/hear each other’s statements § Once back to factual, people need to agree on common dictionary, possibly in different languages • Googling production data § The information is not about objects but patterns. More difficult to find § Historians are not built for searches • Governance § Aligning IT/business at corporate/stategic and plant/BU-tactiacl levels § Because of agility requirements, make sure the update frequence is sufficent and/or the authority to make decisions at local level is sufficent, and a mechanism for reconciliation with agreed plans exist.

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