arc's greg gorbach's global manufacturing presentation at arc's 2008 industry forum
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Global Manufacturing
Trends and Solutions inMES and Operations Management
Global Manufacturing
Trends and Solutions inMES and Operations Management
Greg GorbachVice President
ARC Advisory Groupggorbach@arcweb.com
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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.
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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
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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
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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
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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
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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
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(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
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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
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Enterprise/Business Operations
Operations Management
Systems
AutomationSystems
CMM Model for Production ExcellenceEngineering, OM, and Resources Working TogetherCMM Model for Production ExcellenceEngineering, 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
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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
Operations Management
Source: ARC Advisory Group
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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.
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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
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Design/Engineering Infrastructure
Global Manufacturing OperationsGlobal Manufacturing Operations
Enterprise InfrastructureOperations Infrastructure
= Manufacturing Node = Design Node
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Pillar 2: ConnectivityRequired for PerformancePillar 2: ConnectivityRequired 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
Orchestrationof Business Processes
Collaborationamong all required parties
Alignmentof goals throughout the Enterprise
Responseto dynamic demands
Visibilityof Manufacturing Information
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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
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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
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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 …
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 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
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 …
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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 …
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Thank You!
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