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Integrated ManufacturingExecut ion FunctionalArchi tecture, Costs and Benefits
Alexander Schmidt, Dr. Boris Otto, Dr. Alfrid Kussmaul (EDS)
Report no.: BE HSG/ CC CDQ2 / 17Chair: Prof. Dr. H. sterleVersion: 1.0Date: October 15th, 2009
University of St. Gallen -for Business Administration, Economics,Law and Social Sciences (HSG)
Institute of Information ManagementMller-Friedberg-Strasse 8CH-9000 St. GallenSwitzerlandTel.: ++41 / 71 / 224 2420Fax: ++41 / 71 / 224 2777
Prof. Dr. A. BackProf. Dr. W. Brenner (managing)Prof. Dr. R. Jung
Prof. Dr. H. sterleProf. Dr. R. Winter
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Table of Contents iv
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Table of Contents
1 Introduct ion ......................................................................................................1
1.1 Motivation ......................................................................................................11.2 Structure of the Final Report .......................................................................... 3
2 Study Design .................................................................................................... 4
2.1 Research Approach ....................................................................................... 4
2.2 Participating Automobile Manufacturers ........................................................ 7
2.2.1 AUDI AG .................................................................................................. 7
2.2.2 BMW AG ..................................................................................................9
2.2.3
Daimler AG ............................................................................................ 10
2.2.4 Volkswagen AG ..................................................................................... 12
3 Background .................................................................................................... 13
3.1 Manufacturing Execution Systems ............................................................... 13
3.2 Existing MES Standards .............................................................................. 17
3.2.1 Manufacturing Execution System Association (MESA) .......................... 17
3.2.2 Normen-Arbeitsgemeinschaft (NAMUR) ................................................ 18
3.2.3 Verein Deutscher Ingenieure (VDI) ........................................................ 19
3.2.4 National Institute of Standards and Technology (NIST) ......................... 20
3.3 The Automotive Industry .............................................................................. 21
3.3.1 General Characteristics ......................................................................... 22
3.3.2 MES in the Automotive Industry ............................................................. 22
4 Study Findings ............................................................................................... 24
4.1 Current MES Strategy .................................................................................. 24
4.1.1 Strategic Goals ......................................................................................24
4.1.2 Organizational Embedding ..................................................................... 25
4.1.3 Application Landscape and Integration .................................................. 26
4.2 Functional MES Reference Architecture ...................................................... 30
4.2.1 Generic MES Function Map ................................................................... 31
4.2.2 MES Function Map Instantiations .......................................................... 36
4.2.3 Prioritization of MES Functions .............................................................. 39
4.2.4 Parameters Influencing Instantiation of the MES Function Map ............ 44
4.2.5 Non-Functional Requirements ............................................................... 47
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4.3 MES Performance Management .................................................................. 50
4.3.1 Initial Business Benefits Framework ...................................................... 51
4.3.2 Business Benefits Framework Comprising Manufacturing Related
KPIs .......................................................................................................52
5 Summary and Outlook ................................................................................... 59
5.1 Study Results ...............................................................................................59
5.2 Critical Acclaim ............................................................................................61
5.3 Outlook on Future Challenges ..................................................................... 61
Literature .................................................................................................................64
Appendix A: Instantiations of the MES Funct ion Map...................................... 68
Appendix B: Detailed MES Functionali ty Defini tion ......................................... 71
B.1. Detailed MES Functionality Definition According to Standards
Investigated ................................................................................................. 71
B.2. Detailed Functionality Definition of the MES Function Map ......................... 76
Appendix C: Contact Persons ............................................................................ 79
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List of Figures vi
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List of Figures
Figure11:KeygoalsforintegrationofERPandshopfloor[AberdeenGroup2006,p.3]....3Figure
21:
Research
approach
of
the
IME
Study
.....................................................................
6
Figure31:MESasconnectorbetweenERPandshopfloor(basedon[Albert/Fuchs2007,p.
11,Louis/Alpar2007,p.246])......................................................................................14Figure32:Majorelementsoftheautomotivevaluechain....................................................23Figure41:Simplifiedapplicationlandscapesinassemblyplants.........................................28Figure42:Simplifiedapplicationlandscapesincomponentmanufacturingplants.............29Figure
43:
Generic
MES
Function
Map
...............................................................................
33
Figure44:MESFunctionMapasinstantiatedwithdetailedtasks.....................................37Figure45:FunctionstobecoveredbyMESapplications.....................................................39Figure46:MESFunctionsprioritizeddependingonnumberofassignedlayers................41Figure47:MESFunctionspotentialforimprovementofmanufacturingprocess..............43Figure 48:Differences inMESfunction assignment between componentmanufacturing
plantsand
assembly
plants
.............................................................................................
47
Figure49:EvaluationofcurrentMESsolutionsregardingnonfunctionalrequirements..49Figure410:ImportanceestimationofnonfunctionalrequirementsonMESsoftware.......50Figure411:ManufacturingrelatedKPIsusedbytheautomobilemanufacturers...............54Figure412:CauseeffectnetworkforMESKPIs..................................................................56FigureA1:InstantiationsoftheMESFunctionMap..........................................................70
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List of Tables vii
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List of Tables
Table21:MESexpertsinterviewedforquestionnairedesign.................................................6Table
22:
Key
figures
of
AUDI
AG
for
2008
...........................................................................
7
Table23:KeyfiguresofBMWAGfor2008...........................................................................9Table24:WorkshopparticipantsofBMW............................................................................10Table25:KeyfiguresofMBCandDaimlerAG(inbrackets)for2008................................11Table26:WorkshopparticipantsofMBC.............................................................................12Table27:KeyfiguresofVolkswagenAGfor2008................................................................12Table
31:
Organization
profile
of
MESA
..............................................................................
18
Table32:OrganizationprofileofNAMUR..........................................................................19Table33:OrganizationprofileoftheVDI.............................................................................20Table34:OrganizationprofileoftheNIST...........................................................................21Table41:MESfunctionsasspecifiedbydifferentstandards................................................32Table42:NonfunctionalrequirementsonMESsoftware...................................................48Table
43:
Initial
Business
Benefit
Framework
.......................................................................
52
Table44:BusinessBenefitsFrameworkcomprisingmanufacturingrelatedKPIs...............53TableB1:DetailedMESfunctionalitiesasdefinedininvestigatedMESstandards............75TableB2:DetailedMESfunctionality..................................................................................78
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List of Abbreviations viii
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List of Abbreviations
AG Aktiengesellschaft(Corporation)
AHM AudiHungariaMotorsKft.
BDN BenefitsDependencyNetwork
BMW BayerischeMotorenWerke
CIP ContinuousImprovementProcess
CNC ComputerizedNumericalControl
CoC CenterofCompetence
DCS DistributedControlSystem
DNC DistributedNumericalControl
EDS ElectronicDataSystemsCorporation
ERP EnterpriseResourcePlanning
HR HumanResources
IME IntegratedManufacturingExecution
IPS
InternationalProduction
System
ISA Industry,Systems,andAutomationSociety
IT InformationTechnology
IWI InstituteofInformationManagement
KPI KeyPerformanceIndicator
MBC MercedesBenzCars
MES
Manufacturing
Execution
Systems
MESA ManufacturingExecutionSolutionsAssociation
NAMUR NormenArbeitsgemeinschaft
NIST NationalInstituteforStandards
OEE OverallEquipmentEffectiveness
OEM OriginalEquipmentManufacturer
PDA ProductionDataAcquisition
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List of Abbreviations ix
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PLC ProgrammableLogicController
SCADA SupervisoryControlandDataAcquisition
SPC
Statistical
Process
Control
VDI VereinDeutscherIngenieure
VW Volkswagen
WIP WorkinProgress
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Abstract x
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Abstract
One of the challenges in manufacturing companies nowadays is to enable
appropriateITsupportofproductionplanningandexecution. Integratedsolutions
need to cover companywide and even crosscompanybusiness processes (from
order receipt to product distribution) and at the same time live up to the
technologicalcomplexityofmanufacturingprocessesontheshopfloor.Theproblem
is even aggravated in industries, such as the automotive industry, which are
characterizedbynumerous,stronglydivergingmanufacturingprocessesandhighly
versatile products. What such manufacturing companies need is an integrated,
consistent view along their entire value chain, allowing for optimal utilization of
capacitiesandclosingthegapbetweenbusinessandmanufacturingprocesses.
ThisfinalreportoftheIMEstudydescribesessentialcriteriaforfurtheroptimizing
manufacturing execution and control in manufacturing plants of the automotive
industry.BasedoncasestudiescarriedoutatfourOEMs,documentingthecurrent
statusof
MES
related
topics
in
the
respective
companies,
the
study
develops
a
functionalreferencearchitectureforMES tobeused in theautomotive industryas
well as a Business Benefits Framework allowing to measure the impact of an
integratedMESontheperformanceofmanufacturingprocesses.Fromtheseresults,
requirements on and recommendations for future, integrated Manufacturing
ExecutionSystemsarederived.
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Introduction 1
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1 Introduction
1.1 Motivation
One of the challenges in manufacturing companies nowadays is to enable
appropriateITsupportofproductionplanningandexecution. Integratedsolutions
need to cover companywide and even crosscompanybusiness processes (from
order receipt to product distribution) and at the same time live up to the
technologicalcomplexityofmanufacturingprocessesontheshopfloor.Difficulties
result from different levels of detail and accuracy regarding production status
informationneededondifferentcompanylevels.Theproblemisevenaggravatedin
industrieswhicharecharacterizedbynumerous,stronglydivergingmanufacturing
processesandhighlyversatileproducts.Thisisthecaseintheautomobileindustry,
typically involvingbatchproduction inpressplants,highlyautomatedproduction
linesforcarbodyconstruction,andassemblywithitstypicalrequirementsonload
balancing and documentation. What such manufacturing companies need is an
integrated, consistent view along their entire value chain, allowing for optimal
utilizationofcapacitiesbyhavingaccesstorealtimeinformationonmanufacturing
process,quality targetachievement,reworkcostsetc. [Klimm2008,p.4].Classical
ERP systems have proven tobe not capable of meeting this requirement, as they
provide only a coarse granular perspective on companywidebusiness processes.
Therefore,anewcategoryof informationsystems,calledManufacturingExecution
Systems (MES),hasemerged,allowing to consistently collectandprocessdataon
currentmachineandproductionstatuses.WhileparalleloperationofERPsystems
andMESseemsreasonable,anumberofquestionsdoarisethough:
WhatfunctionalscopeshouldMEScover?Whatisactuallymeantbytheterm
ManufacturingExecutionSystems?
Howcandifferentplanningandcontrollingfunctionsaswellasprocessesbe
assignedto
and
covered
by
ERP
systems
and
MES?
What
is
the
scope
each
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Introduction 2
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system is supposed to cover? How can functionalitiesbe assigned to the
layers(ERP,MESorShopFloor)inordergenerateminimumoverlap[Lampl
2009,
p.
99]?
How can informationbe smoothly exchangedbetween the various layers?
How can information systems involvedbe integrated to allow for optimal
informationexchange?
How can typical proprietary legacy systems on the shop floor level,which
originally were not designed for this purpose,be connected to the other
layers[Niemietzetal.2009,p.68]?
How can the impact of an additional MES layer on the efficiency and
effectivenessofthemanufacturingprocessbemeasured?
Are there single outofthebox software solutions that are capable of
coveringthediversityofmanufacturingspecificrequirements,particularlyin
anindustrywhichischaracterizedbyhighlydifferentproductionprocesses?
Howcouldoptimalapplicationsupportinsuchanindustrylooklike?
WithregardtointegrationoftheERPlayerandtheMESlayer,theAberdeenGroup
in 2006 conducted abenchmark study across 440 manufacturing companies from
different industries, revealing that the most urgent goals pursuedby integration
effortsareseamlessdataflowfromtheshopfloorlayertotheERPlayer,enterprise
wide access to production data, and improvement of product quality (see Figure
11).
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Introduction 3
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Figure11:KeygoalsforintegrationofERPandshopfloor[AberdeenGroup2006,p.3]
1.2 Structure of the Final Report
Afterthisintroductorysectioninwhichthestudymotivationisexpressed,Section2
isdedicatedtothedescriptionofthestudydesignincludingashortpresentationof
thefourparticipatingautomobilemanufacturerswiththecorrespondingworkshop
participants. Thereafter, Section 3 provides background information and the
conceptual foundation on central topics of the study, most notably MES and the
automotive
industry.
Section4presentsthemajorfindingsofthestudyaccordingtothefivesubjectareas
that were investigated. The first part (Section 4.1) is devoted to strategic goals,
organizational embedding, and application landscape. Section 4.2 then aims at
developing a reference architecture for MES functions as one of the pivotal goals
pursuedwith thisstudy.Thegeneric referencearchitecture (namedMESFunction
Map) isderived fromexistingMESstandards (Section4.2.1)and then instantiated
55
51
36
33
28
27
25
0 10 20 30 40 50 60
Pulldatafromtheshop floorprovidingvisibilitytoERP
andenterpriseapplications
Improveproductqualityandreducevariability
Enterprisewideaccesstomanufacturingorders,
inventory,etc.fromERPtoshop floor
Triggers/alertsfromexecutionsystemsignalto
planning/schedulingapplications
ProductcompletionsfromexecutionsystemtoERP
Providevisibilityintoplantfloorfinancials
Providedirectaccesstoproductgenealogyfrom
enterpriseapplicationstoshop floor
PrioritiesinBridgingtheGapBetweenERPandtheShopFloor
%
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and refined through the four case studies (Section 4.2.2). The instantiations show
functional requirements that the Original Equipment Manufacturers (OEMs) have
on
IT
solutions
for
production
planning
and
control.
Section
4.2.3
then
investigates
thepotentialimprovementstandardizedMESsolutionscouldgeneratewithregard
to cost, time, and quality. In Sections 4.2.4 and 4.2.5, we discuss some factors
influencing the instantiation of the MES reference architecture as well as
requirements which are not coveredby the MES Function Map (nonfunctional
requirements),but which were explicitly expressed asbeing important for MES
solutions.Thefifthsubjectarea,performancemeasuring,isdealtwithinSection4.3,
where we analyze KPIs usedby the OEMs for evaluating their manufacturing
processesinordertoilluminatepossibleeffectsofintegratedMESsolutionsonthe
performanceofthemanufacturingprocesses.
Finally,Section5summarizesthekeyresultsofthestudyandprovidesanoutlook
onfuturechallengesfortheautomotiveindustryaswellasforresearch.
2 Study Design
2.1 Research Approach
Thebasicintentionofthestudyistodescribeessentialcriteriaforfurtheroptimizing
manufacturingexecution inassemblyandcomponentmanufacturingplantsof the
automotive industry. Based on the identification of a functional MES reference
architecture (including adoption criteria for its application), the study aims at
formulating requirements on and developing recommendations for future
integrated Manufacturing Execution Systems. A reference architecture, or more
generallyspeakingareferencemodel,isagenericmodelofaunitofanalysisthatis
applicable as a template for similar cases in the same domain by adapting
predefinedconfigurationparameterstotheparticularsituationinwhichitused.We
willdescribe
reference
models
and
their
adaptation
mechanisms
in
more
detail
in
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later sections of this report when we present the functional MES reference
architecture and parameters influencing its instantiation (Section4.2). In addition,
the
study
evaluates
potential
benefits
of
an
integrated
Manufacturing
Execution
Systembydevelopingandapplyingaframeworkofbusinessbenefitsconsistingof
MESrelatedKPIs.
Thepivotalelementof thisstudyonIntegratedManufacturingExecution (IME) in
theautomobile industry is the recordingof case studies for the fourparticipating
automobile manufacturers, namely AUDI AG, BMW Group, Daimler AG and
Volkswagen AG1. Basically, case study research can pursue two different goals:
firstly, case studies can examine, describe and explain phenomena in a given
(business)contextinanexplorativemanner,secondly,casestudiesallowtotestand
developnew theories [Eisenhardt1989,p.533,Scholz/Tietje2002,pp.11f.].As the
IMEprojectaimsattheformer,ourcasestudiescanbedefinedasexplorative[Yin
2002, Specht et al. 2004] describing and investigating a complex area of science
[Meyer/KittelWegener 2002, p. 21] and trying to identify and explain
interdependencies or cause effect relations [Yin 2002, p. 15]. The study design is
characterized by an multicase studies approach as a total of four different
companiesareexaminedwithregardto thesametopic(MES)[Yin2002,pp.38ff.].
This leads to increased robustness and generalizability of findings, compared to
individualcasestudies[Benbasat1985,p.58].
Eachof the fourcase studiesdocuments thecurrent status regardingMES for the
respectiveOEM, taking intoaccount fivesubjectareas tobe investigated:strategic
goals,organizationalembedding,applicationlandscape,functionalarchitecture,and
performance measuring. In addition, the individual case studies and the findings
madethereinserveasabasisforthepresentstudyreport.
1
ThecompaniesparticipatingintheIMEstudyarepresentedinthefollowingsection.
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Figure21:ResearchapproachoftheIMEStudy
Figure21showstheoverallresearchprocesspursuedbytheIMEstudy.Basedon
extensiveliteraturereviewwedesignedaquestionnaireconsistingofbothopenand
closed questions serving as a guideline for the assessment workshops. The
questionnairewas reviewedand refined throughmultiple interviewswithexperts
having substantial experience in MES projects. The interrogated subject matter
expertsarenamedinTable21.
Name Company Department/Role
MichaelSchlecht SAPDeutschlandAG DirectorIndustrySolutions
TonyAschwanden SAPSchweizAG HeadofEMEAPresalesforManufacturingExecution
DieterWormuth EDS,anHPCompany ConsultantforProductionITandMES
Table21:MESexpertsinterviewedforquestionnairedesign
Theworkshopswerecarriedoutassemistructuredonsitefocusgroup interviews
[Cavana
et
al.
2001,
pp.
153
159]
with
varying
numbers
of
participants
(between
3
Preliminary Work
Work out general MES Process Map and Business BenefitFramework (BBF)
Align project scope
Design questionnaire
Initial Assessment and Data Collection
Conduct and document Assessment Workshops
Assess MES Process Map and BBF
Discuss improvement and cost saving potentials
Benefit Analysis
Analyze and calculate relevant KPIs
Consolidation of Results
Aggregate benefits; calculate savings and efficiencypotentials (Monetarize KPIs)
Write final report
Presentation and Handover of Results
Final presentation
Best Practice Exchange Workshop (multilateral)
Joint dissemination of project results
1
2
3
4
5
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and 12) from both IT and manufacturing departments (e.g. plant managers).
Additionally, we analyzed documents provided by the workshop participants,
which
complemented
the
information
gathered
during
the
interviews.
2.2 Participating Automobile Manufacturers
ThefollowingchapterpresentsthefourOEMsthatparticipatedintheIMEstudyas
wellastheobjectsofinvestigation(plants,divisionsetc.).Intherestofthepaperwe
refertotheseOEMsasautomobilemanufacturers.
2.2.1 AUDI AG
2.2.1.1 General Information
AUDI AG is a German automobile manufacturer headquartered in Ingolstadt,
Germany. It has been an almost whollyowned subsidiary (99.7 %) of the
Volkswagen Group since 1964. The company employs about 57,000 employees,
generatingarevenueofmorethan34billionEuros(2008).TheAudiGroupitselfis
subdivided in several national subsidiaries and manufactures cars in seven
internationalmanufacturingsites(IngolstadtandNeckarsulminGermany,Brussels
in Belgium, Gyr in Hungary, Changchun in China, Bratislava in Slovakia, and
AurangabadinIndia).Thecompanyskeyfiguresfortheyear2008aresummarized
inTable22.
AUDIAG
Numberofemployees 57,533
Annualrevenue(inmillionEuro) 34,196
Numberofmanufacturingsites 6
Numberofcountrieswithmanufacturingsites 5
Annualscostsofgoodssold(COGS)(inmillionEuro) 28,848
Manufacturingcosts(inmillionEuro) 28,478
Table22:KeyfiguresofAUDIAGfor2008
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2.2.1.2 Object of Investigation and Interview Partners
The case studyat Audi did not focuson a singleplant,but instead coveredboth
vehicle and component manufacturing. Consequently, the study covers the
manufacturing plants of AUDI AG in Ingolstadt (with an output of more than
550.000 cars per year and 32,000 employees in 2008), Neckarsulm (approximately
300.000carsperyearand13,000employeesin2008),andAudiHungariaMotorsKft.
(AHM) in Gyr, Hungary (almost 2 million engines and 60,000 cars with
approximately5,900employeesin2008).Ingolstadt,astheheadquartersiteandthe
location forboth technicaldevelopmentanddiversecorporate functions, isAudis
biggestplantwithregardtovehicleoutput.Duetotherelativelysmallfloorspaceof
themanufacturingsite,Ingolstadt typifiesthemodelofpermanentoptimizationof
theplantsmanufacturingandlogisticsprocessesincludingtheunderlyingIT.With
Ingolstadt and Neckarsulm being the two biggest manufacturing plants of the
company (with regard to yearly vehicle production), the important issue of MES
process and system integration is centered on these two sites. AHM is mainly a
component manufacturing plant. however, there is also a small part of vehicle
manufacturing (assembly), producing about 60,000 cars per year. With a total of
almost two million engines produced yearly, the plant is one of the worldwide
biggestenginemanufacturingsites.Duetoitssizeandthefactthatitencompasses
allbusiness functions (e.g. HR, Research & Development etc.), the Gyr location
differsfromothermanufacturingsitesofAudiandisofequalimportancewithinthe
company as the main manufacturing plants in Ingolstadt and Neckarsulm. From
AUDIAG,thefollowingrepresentativesparticipatedintheassessmentworkshops:
JrgGraf,headofITofAHM;
Christoph Lubkoll, responsible for Strategies of Process and System
Integration(CustomerOrderProcess);
EmeseKosar,headoftheProcess,IntegrationandInformationManagement
departmentwithintheITdepartmentofAHM;and
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Ambrus Zsolt, responsible for IT solutions supporting core manufacturing
processes, most notably the planning production process within the IT
department
of
AHM.
WithintheAudiGroup,AHMtakesauniquerole,asherebothhighvolumeengine
manufacturingandvehicleassemblyrepresentcorebusinessprocesses.Partlythese
divergingprocessesrequirespecificITsolutionsontheERPlayeraswellasonthe
MESlayer.FortheotherAudicomponentmanufacturingplants,thestandardMES
of Volkswagen, as the parent company, areauthoritative, whereas IT solutions at
AHMmaydifferfromthesestandardsbypartlyhavinginstalledlocal,proprietary
systemsinlinewithgoverningITprinciples.
2.2.2 BMW AG
2.2.2.1 General Information
TheBayerischeMotorenWerke(BMW)AGisaGermanautomobileandmotorcycle
manufacturing company, which was founded in 1916. It is headquartered in
Munich, Germany. The company employs approximately 100,000 employees
generatinganannualrevenueofmorethan53billionEuros(2008).TodaytheBMW
GroupistheparentcompanyoftheMINIbrandaswellasRollsRoyceMotorCars.
BMWmanufacturescars in24sitescovering13differentcountries.Thecompanys
keyfiguresfortheyear2008aresummarizedinTable23.
BMWAG
Numberofemployees 100,041
Annualrevenue(inmillionEuro) 53,197
Numberofmanufacturingsites 24
Numberofcountrieswithmanufacturingsites 13
Annualscostsofgoodssold(COGS)(inmillionEuro) 44,323
Manufacturingcosts(inmillionEuro) 26,727
Table23:KeyfiguresofBMWAGfor2008
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2.2.2.2 Object of Investigation and Interview Partners
In contrast to the original intension of focusing on one single plant only, it was
jointly agreed to do a comprehensive, crossplant analysis of MES related topics.
Thisallowedus toobtainamorecomprehensiveviewon the issueofMESwithin
BMW and to identify and discuss differences between different plants of the
company. Therefore, we had a wide spectrum of workshop participants with
varyingbackgrounds and from different organizational units. The names of the
workshopparticipantsaswellastheirorganizationalassignmentaresummarizedin
Table24.
Name Role Department
RobertPeter CoCLeiterAnlagennaheSysteme EZ24
HaraldScheder ITPLNeue3erBaureihe EZ203
UrsulaRichter Bebauungsplanung,QSysteme EZ201
ThomasPriemuth CoCLeiterLogistischeInformationssysteme EZ241
JakobWersching LeiterSteuerungs Einrichtungs ProzesstechnikMontage TP401
AlbertSextl LeiterInstandhaltungKomponentenfertigung TA334
FranzZurl LeiterSteuerungstechnikKomponentenfertigung TA414
EdmundZuber LeiterAnlagentechnikKarosseriebau TP221
GeraldMeier KompentenzfeldleiterProzessdatenerfassung EZ240LA
RudolfHoefler Programmsteuerung(Mnchen) TM103
HubertPielmaier LeiterInstandhaltungOberflchenbehandlung(Dingolfing) TD311
DieterSchels ProduktionsnaheITMontage(Mnchen) TP401MU
Table24:WorkshopparticipantsofBMW
2.2.3 Daimler AG
2.2.3.1 General Information
Daimler AG is a German automobile manufacturer headquartered in Stuttgart,
Germany.The company employs approximately 273,000employees generating an
annual revenue of more than 95billion Euros (2008). Besidesbeing the worlds
thirteenth largest automobile manufacturer, Daimler is the worlds largest truck
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manufacturer.ItsdivisionMercedesBenzCars(MBC),onwhichthecasestudyhas
focused, employs approximately 97,000 people generating an annual revenue of
almost
48
billion
Euros
(2008).
Cars
are
manufactured
in
15
sites
covering
six
different countries. The mainbrands of the company are MercedesBenz, Smart,
Maybach,andMcLaren.
MBCskeyfiguresfortheyear2008aresummarizedinTable25.
MBC(DaimlerAG)
Numberofemployees 97,303(273,216)
Annualrevenue(inmillionEuro) 47,772(95,873)
Numberofmanufacturingsites 15(41)
Numberofcountrieswithmanufacturingsites 6(17)
Annualscostsofgoodssold(COGS)(inmillionEuro) 74,314
Manufacturingcosts(inmillionEuro)
Table25:KeyfiguresofMBCandDaimlerAG(inbrackets)for2008
2.2.3.2 Object of Investigation and Interview Partners
In contrast to the original intension of focusing on one single plant only, it was
jointlyagreedtodoacomprehensive,crossplantandcrossdivisionanalysisofMES
relatedtopics.Thecasestudycoversthreedifferentdivisionsofproductionwithin
MBC, namely manufacturing of complex components (engines, gears) for
automobiles (socalledPowertrain),assemblyofautomobiles,andvanproduction.
Therefore,thescopeofthecasestudyisrelativelywide,allowingforcomparisonof
the topics investigated between the different branches and, consequently,
identification and discussion of major discrepancies. Accordingly, findings are
describedforeachofthethreedivisions(Powertrain,Assembly,Van)duringtherest
of thecase study.Theworkshopbrought together representatives fromCoCsand
plantsofallthreebranches.Thenamesoftheworkshopparticipantsaswellastheir
rolesandorganizationalassignmentaresummarizedinTable26.
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Name Role Department
UweHaag SeniorManager
ITVANManufacturingPlants
HeadofCoCManufacturingControlandLogistics
InformationOfficerforplantsDsseldorfandLudwigsfelde
MarkusHawickhorst Manager ITVANManufacturingPlants
CoCDistributionSystems
GerhardSchiele SeniorManager ITAssemblyPlants
CoCManufacturingControl
ThomasKampfmann Manager ITAssemblyPlants
CoCManufacturingControl(mainlySindelfingen)
StefanRosenwald SeniorManager ITManagementPowertrain(componentplants)
CoCManufacturingControlandLogistics
Table26:WorkshopparticipantsofMBC
2.2.4 Volkswagen AG
2.2.4.1 General Information
Volkswagen (VW) AG is a German automobile manufacturer headquartered in
Wolfsburg,Germany.Withanannualrevenueof113.8billionEurosanda totalof
approximately 370,000 employees in 2008, the Volkswagen AG currently ranks
among the top threeautomobilemakers in theworldand is thebiggestEuropean
automobile manufacturer. It unites numerous automobile brands, among them
Audi, Bentley, Bugatti, Seat, and Skoda. Volkswagen AG currently operates 61
manufacturingsitesin21differentcountries.Thecompanyskeyfiguresfortheyear
2008aresummarizedinTable27.
VolkswagenAG
Numberofemployees 369,928
Annualrevenue(inmillionEuro) 113,808
Numberofmanufacturingsites 61
Numberofcountrieswithmanufacturingsites 21
Annualscostsofgoodssold(COGS)(inmillionEuro) 96,612
Manufacturingcosts(inmillionEuro)
Table27:KeyfiguresofVolkswagenAGfor2008
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2.2.4.2 Object of Investigation and Interview Partners
The case study at VW focused on the component manufacturing plants of the
company. Components in this case cover the whole spectrum and include simple
components,suchaspressedorfoundryparts,aswellascomplexcomponents,such
as gears or engines. Within the company, the ITP Components department is
responsibleforITdevelopmentandmaintenanceofallcomponentplants.Fromthis
departmenttworepresentativesparticipatedintheassessmentworkshops:
HansChristianHeidecke,headofITPComponents;
IngoHfer,softwareengineeratITPComponents.
3 Background
3.1 Manufacturing Execution Systems
ManufacturingExecutionSystemsarearelativelynewclassofinformationsystems
designedparticularlytosupportshopfloorprocessesandtheirintegrationintothe
companys
information
system
architecture
[Louis/Alpar
2007,
p.
243].
MES
constitutetheinterfacebetweentheplanning(ERP)layerandtheproductionlayer.
Theyareanessentialcomponentforverticalintegration,asillustratedinFigure31.
The three layerscanalsobe referred toasCompanyManagement (forwhichERP
systemsarethemostcommontools),ProductionManagement(donebyMES),and
Production (supported by systems for machine control and acquisition of
manufacturing
data)
[Gnther
et
al.
2008,
p.
37].
The
latter
usually
contains
hybrid
hardware/software systems, such as Distributed Control Systems (DCS),
Programmable Logic Controllers (PLC), Distributed Numerical Control (DNC),
Supervisory Control and Data Acquisition (SCADA) systems, and other control
systemsdesigned toautomate theway inwhichproductsarebeingmanufactured
[MESA2000,p.1].
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Figure31:MESasconnectorbetweenERPandshopfloor(basedon[Albert/Fuchs2007,p.
11,Louis/Alpar2007,p.246])
In contrast to ERP systems, which generally provide a verybroad functionality
coveringallbusinessfunctionsofanenterprisealong itsoperationalsupplychain,
MES aim at enabling companies to quickly respond to events occurring in the
production process (reactive detailed planning). MES take a microscopic, more
granularviewonproductiondata (often restricted toasingleplantorproduction
area),comparedtothemacroscopic,holisticviewofERPsystems,andthereforeare
intended to compensate one of the main shortcomingsof ERP system production
modules: the incapabilityofproviding integrationofrealtimemanufacturingdata
generatedontheshopfloor[Wannenwetsch/Nicolai2004,p.139].Thisincapability
basically results from an inadequacy of ERP production plans to respond to
changing demands or deviations in the manufacturing process. Neither are these
systemscapableofhandling theenormousamountofdatacoming from the shop
floor,nordo theyprovideshort response timesandsufficient levelsofdetail (e.g.
withregardtothemodellingoftheproductionprocess)[Louis/Alpar2007,p.243].
Itis
this
gap
that
MES
are
trying
to
fill.
Production / Automation Systems
Manufacturing
Execution Systems(MES)
ERP
Production (Program)Planning, Master Data
Maintenance
Detailed ResourcePlanning & Allocation,
Production Monitoring,Data Collection, KPIs
Execution, Production
Logistics
Current productiondataPlan variance
Planning data andrestrictions
Production DataAcquisition (PDA)
Reactions onincidents during
production
Business
Partners
Ente
rprisewide
Domain
specific
Levelof
Detail
Planning
Horizon
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As MES in the past have notbeen subject of extensive scientific research (some
exceptionsbeing the recentworksofKLETTI [Kletti2006],SAUER [Sauer2004]and
SCHFER
ET
AL.
[Schfer
et
al.
2009]),
a
well
established
definition
of
the
term
has
not
beengivensofar.However, thereare leadingstandardizationorganizationsin the
domain of manufacturing integration, most notably the Industry, Systems, and
Automation Society (ISA) and the Manufacturing Execution Solutions Association
(MESA),thathaveputsomeeffortintofindingacommondefinitionandspecifying
genericMESfunctionality(cf.[ISA2000,ISA2005]and[MESA2000,MESA2004]).2
SoMESaredefinedassystemsthatdeliverinformationenablingtheoptimization
of production activities from order launch to finished goods. Using current and
accuraterealtimedata,MESguide,respondto,andreportonplantactivitiesasthey
occur.Theresultingrapidresponsetochangingconditions,coupledwithafocuson
reducingnonvalueaddedactivities,driveseffectiveplantoperationandprocesses.
[MESA2000,p.1].ThisdefinitionimpliesthefollowingcharacteristicsofMES:
highlevelofdetail(dataacquisitionfrommanufacturingprocesses),
relativelyshortplanninghorizon(reactiveplanning),
bidirectional communication toboth ERP systems and shop floor systems
(interfacing).
TheultimategoalofMEScanthereforebedescribedasincreasingtransparencyon
the manufacturing process and, as a result, establishing horizontal and vertical
(closed) control loops [Kletti 2006, p. 11]. These control loops allow for prompt
reaction to incidents on the shop floor as information is directly fed back to
overlyingplanningsystems(suchasERP)totriggerrespectivemeasuresaswellas
tosubsequentmanufacturingsteps(horizontalintegration).
2
Amoredetailedpresentationofthestandardsisincludedinthefollowingsection.
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A major challenge with regard to the model shown in Figure 31 lies in a clear
demarcation of the three layers3. This is a difficult task, as certain enterprise
functions
may
be
supported
by
a
number
of
information
systems
located
in
more
than one layer (e.g. quality management by ERP and by MES applications,
production data acquisitionby control systems on the shop floor andby MES
applications), leading to a high degree of interconnectionbetween the systems.
Nevertheless,acleardistinctionappearsuseful,asthesystemsdifferregardingthe
degreetowhichtheysupportfunctionalityformanufacturingplanningcomparedto
manufacturing execution. We comply with the above given definition by
distinguishing the three layers ERP, MES, and Shop Floor mainlybased on two
parameters(seeFigure31):theplanninghorizon,i.e.theperiodoftimeforwhich
differenttasksarescheduled,andthelevelofdetailoftheinformationmanaged.By
rule of thumb, ERP systems cover the mid and longterm planning for a time
horizonofatleastoneday(uptoseveralweeksormonths),MEShandleproduction
planninginformationrangingfromonehouruptooneday,andontheShopFloor
layertimeintervalsscaledown tothelevelofseveralminutes.Aseveryminuteof
productionstopduetomachineortoolfailuredirectlyleadstolossofmoney,rapid,
adhoc decisions need tobe supported in production management and execution
[Kletti2006,p.11].
We would like to emphasize that our understanding of the term MES is not
limited to thegeneric term fora typeofcommerciallyavailableor selfdeveloped
software,but also includes the functions that are necessary for (more) efficiently
managing the manufacturing process and for establishing the link connecting
commercial order processing at enterprise management level (ERP) with the
3
The problem of demarcating the three layers with regard to their functions is also addressed in this study anddiscussed in more detail with the help of the MES Function Map in chapter 4.2. This part of the study aims at
assigning functionality to the different layers and contributes to a more clear differentiation of ERP, MES and
Shop Floor in the automotive industry.
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operationmanagementlevel(ShopFloor)[NAMUR2003,p.6].Fortheremainderof
thereportwethereforeexplicitlydifferentiatebetweenMESfunctionalityandMES
applications,
the
latter
referring
to
software
operated
to
support
MES
related
tasks.
3.2 Existing MES Standards
Asmentioned in theprevious chapter, several standardizationorganizationshave
put some effort into finding a common definition and specifying generic MES
functionality.Thestandardizationorganizationsandtheresultingspecificationsare
brieflysummarizedinthefollowingsubsectionsservingasaconceptualfoundation
forfurther
work
(see
Section
4.2).
Within its S95 standard, ISA specifies four core functionality categories of MES:
Production Management, Inventory Management, Quality Management and
Maintenance Operations Management [ISA 2000]. Each of the four categories is
furthersubdividedintoeightfunctiongroupsandcanserveasabasistodefinethe
functionalscopeoftheMESlayer.However,theISAstandardfocusesmoreonthe
data
models
of
and
interfaces
between
the
three
layers
depicted
in
Figure
3
1,
i.e.
on
verticalintegration.Asitdoesnotprovideconcretefunctionaldefinitions,wedonot
includeitinoursynthesisofMESfunctions.
3.2.1 Manufacturing Execution System Association (MESA)
The Manufacturing Execution System Association is an American industry
association headquartered in Chandler, Arizona. Being established in 1992 by
different
software
companies,
MESA
is
maybe
the
most
experienced
organization
in
thefieldofMESwithitsstandardshavingreachedworldwideacceptance.However,
MESAs guidelines are still strongly influenced by the MES software vendors
perspective.
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ManufacturingExecutionSystemAssociation(MESA)
Foundation 1992Headquarters Chandler,Arizona(USA)Relevantindustries AllmanufacturingindustriesScope International; MESonlyMembers Softwarecompanies,usercompanies,andmanufacturingprofessionalsHomepage www.mesa.org
Table31:OrganizationprofileofMESA
The MESA Guidelines, as the most comprehensive MES standard, follow a
pragmaticapproachandidentifieselevenstandardMESfunctionsonafairlycoarse
granularlevel[MESA2000,p.1]:
ResourceAllocationandScheduling,
Operations/DetailScheduling,
DispatchingProductionUnits,
DocumentControl,
DataCollection/Acquisition,
LabourManagement,
QualityManagement,
ProcessManagement,
MaintenanceManagement,
ProductTrackingandGenealogy,
PerformanceAnalysis.
Moreover, with the new concept of a Collaborative MES, MESA is actively
propagating the vision of MES as a companys central data and information hub
[MESA2004].
3.2.2 Normen-Arbeitsgemeinschaft (NAMUR)
NAMUR is a European organization for users of automation technology in the
process industry (Interessengemeinschaft Automatisierungstechnik der
Prozessindustrie).Itsmainfocusisonthechemicalandpharmaceuticalindustry.It
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promotes the exchange of knowhow and experiencebetween its members and
designs guidelines in the form of recommendations and worksheets. NAMUR
strongly
relies
on
the
ISA
S95
standard.
NormenArbeitsgemeinschaft(NAMUR)
Foundation 1949Headquarters BadNeuenahr(Germany)Relevantindustries Processindustry(chemical and pharmaceutical industry)Scope European(Germanatitsorigin);notlimitedtoMESMembers UsercompaniesHomepage www.namur.de
Table32:OrganizationprofileofNAMUR
ThemainfunctionalblocksdefinedindetailbyNAMURare:
OperationsneutralProductionPlanning,
DetailedProductionPlanning,
ProductionManagement,
QualityManagement,
StockManagement&MaterialFlowManagement,
ProductionDocumentation.
3.2.3 Verein Deutscher Ingenieure (VDI)
The VDI is Germanys biggest association of engineers and natural scientists,
representing their interests in politics and society. It operates a number of expert
panelswhoworkoutguidelinesfordifferenttopicsofinterest.In2004,VDIstarted
todevelopproperguidelines forMESbasedon the standardspresentedbeforeas
wellasonrecentexperiencesandmarkettrends.
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VereinDeutscherIngenieure(VDI)
Foundation 1856Headquarters Dsseldorf(Germany)Relevantindustries AllmanufacturingindustriesScope Germany;notlimitedtoMESMembers EngineersandnaturalscientistsHomepage www.vdi.de
Table33:OrganizationprofileoftheVDI
The5600Guideline focusesonanunambiguousdefinitionof the termMESand
thedistinctionbetweendifferentmanufacturingtypes.Functionsdefinedare:
DetailedPlanning,
EquipmentManagement,
ResourceManagement,
PersonnelManagement,
DataAcquisitionandProcessing,
InterfaceManagement,
PerformanceAnalysis,
QualityManagement,
InformationManagement.
3.2.4 National Inst itute of Standards and Technology (NIST)
TheNISTisameasurementstandardslaboratoryasanonregulatoryagencyofthe
UnitedStatesDepartmentofCommerce. Itsmission is topromoteU.S. innovation
and industrialcompetitivenessbyadvancingmeasurementscience,standards,and
technology.Inthepast,theNISThasactivelybeenworkingonvariousissues,such
asdevelopmentofadistributedshopfloorcontrolarchitecture,developmentofan
activity model of the technical aspects of the product manufacturing process for
discretemetalpartsetc.[Barkmeyeretal.1999]
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NationalInstituteofStandardsandTechnology(NIST)
Foundation 1901Headquarters Gaithersburg,Maryland&Boulder,Colorado(USA)Relevantindustries AllmanufacturingindustriesScope USA;notlimitedtoMESMembers GovernmentalrepresentativesHomepage www.nist.gov
Table34:OrganizationprofileoftheNIST
BasedontheMESAstandard,theNISTdefinesthefollowingMESfunctions:
ResourceAllocationandTracking,
Operations/DetailScheduling,
ProductionUnitsDispatching,
SpecificationManagement,
DataCollection/Acquisition,
LabourManagement,
QualityManagement,
ProcessManagement,
MaintenanceManagement,
ProductTrackingandGenealogy,
PerformanceAnalysis,
MaterialManagement.
3.3 The Automot ive Industry
While the definition and illumination of MES in the previous chapter hasbeen
rathergeneralandindependentofanyspecificindustry,itisimportanttonotethat
requirementsonMESdiffersignificantlydependingontheindustryandthetypeof
production given (e.g. process manufacturing in the pharmaceutical industry in
contrasttodiscretemanufacturinginthecomputerindustry).Wewillthereforetake
acloserlookonthecharacteristicsandrequirementsoftheautomotiveindustry.
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3.3.1 General Characteristics
The study at hand focuses on the automotive industry. Accordingly, the topic is
investigatedandanalyzedagainst thebackgroundofautomotive industryspecific
characteristics. In general terms, automobile manufacturers currently suffer from
enormouscostpressure,which ispartlydue tostrongpricecompetition,buteven
more to the current economic situation in the automotive market, which is
characterizedbyexcesscapacitiesnecessitatingreductionofproductionoutput.This
costpressurehasadirectimpactonthemanufacturingintermsofdemandingmore
efficient and leaner processes. Furthermore, automobile manufacturing is
characterizedby shortdelivery times,versatileproduction (i.e.numerousproduct
variants), and shortterm change requests. For the manufacturers this means they
needuptodatestatusinformationontheproductionprocessinordertobeableto
reactatshortnotice.
3.3.2 MES in the Automotive Industry
As already suggested in Section 1.1, the automotive industry is characterizedby
numerous, stronglydivergingmanufacturingprocesses:batchproduction inpress
plants,highlyautomatedproductionlinesforcarbodyconstruction,andassembly
with its typical requirements on loadbalancing and documentation. Particularly,
adequate support of different production process types (batch production for
manufacture of parts and simple components, flow or continuous production4 in
assembly,andamixtureofbothinthemanufacturingofcomplexcomponents,such
as engines) constitutes a crucial challenge for OEMs. This heterogeneity of
manufacturing processes is directly reflected on the application level leading to
numerous isolated applications and, thus, to difficulties ensuringboth horizontal
integrationalongtheproductionprocessandverticalintegrationacrossthedifferent
4
Thetermsflowandcontinuousproductionareusedsynonymouslyinthisreport.
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layers.Thishas tobeborne inmindwhenevaluatingcurrently implementedMES
andconsideringfutureimprovementpossibilities.
Figure32:Majorelementsoftheautomotivevaluechain
AsdepictedinFigure32MESanditsfunctionalarchitecturedoesnotonlydepend
onthetypeofproductionandthemanufacturedproduct,butisalsoembeddedina
broader architectural framework. It includes most notably the corresponding
processarchitecture,i.e.the(manufacturing)processesinwhichthefunctionalityis
used,aswellastheapplicationarchitectureresultingfromthedistributionofMES
functionstodifferentapplicationsystems.ThedesignofMESwithintheautomobile
manufacturing companies is in strongly influenced by the interdependencies
betweenthesearchitecturallayers.
Functions
Processes
ValueChain
Production
Unit
Systems
Requirements
PlanningGross Planning
Detailed
Planning
Quality
Management
(Production)
Inventory
Management
Material
Requirements
Planning
Production Data
Acquisition
(PDA)
Machine Control
Takeover of
Requirements
Information
Manufacturing
Execution /
Control
Resource/
Equipment
Management
Dynamic RoutingTraceability /
Genealogy
Production
Reporting and
Analysis
MES Master Data Management
Tier2 Tier1 OEM
Customer
Order
Process
Production
Process
Service
Process
Supporting
Processes...
SAP
APO
SAP
PP
MES1
MES2MES2
PS1
PS2PS3 PS4
ERP
MES
Production/AutomationSystems
Part Component VehicleRaw
Material
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4 Study Findings
4.1 Current MES Strategy
Asdescribedin theprevioussection,MESisgenerallyconsideredasanintegrated
process and IT topic within the automobile manufacturing companies, and is
therefore not managed separatelybut within the overall process and application
architecture. Accordingly, explicit MES strategies do not exist. Guidelines for the
longtermaswellasthemid andshorttermdevelopmentofMESrelatedprocesses
andapplicationshavebeenderivedfromtheITstrategy(whichisthencascadedto
thedifferent
core
business
areas,
such
as
manufacturing)
and/or
from
strategic
application maps. The strategic application maps contain the tobe application
architecture,indicatingwhichfunctionalityistobesupportedbywhichapplication,
and theyalso contain the roadmap forallmanufacturing relatedapplications (for
theERPlayerandfortheMESlayer).ITdepartmentsareurgedtoevolvetheirarea
ofresponsibilityaccordingtotheseconstructionplans.
Generally
speaking,
automotive
companies
are
subject
to
high
cost
pressure,
mainly
due to the economic situation in the automotive market, which is currently
experiencing a dramatic downturn. This cost pressure is passed over to
manufacturingaswellastoITdepartments.
4.1.1 Strategic Goals
AsdiscreteMESstrategieshavenotbeendefinedbytheautomobilemanufacturers,
the
top
strategic
goals
for
MES
have
not
been
specified
explicitly.
However,
the
beforementionedITstrategiesandapplicationconstructionplansdofollowgeneral
strategicobjectives,whichalsoapplyfortheissueofMES.Theseobjectivesinclude:
meetingtherequirementsofthevaluechainprocesses(production,customer
order);
achieving operating reliability and ensure robustness to achieve 100%
availability
of
the
manufacturing
processes;
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reducingcomplexityandcost(particularlyITcost)by
a) consolidatingtheapplicationlandscapeanddecreasingthenumberof
applications;
b) intelligentstandardizationwherepossibleandprofitable,inorderto
increasereuseofsoftwarefunctionality;
No perse best of breed approach for MES, but rather casespecific
evaluation.
Ingeneral,theassessmentworkshopsshowedthatstandardizationispivotalwithin
allcompanies,particularlywithregardtotheissueofMES.Here,thechallengeisto
reachmaximumstandardizationdespiteaconsiderablespecificityoftasks,whichis
increasing the nearer these tasks are located to the shop floor. This problem
particularly effects component manufacturing, where the production process is
characterizedbyahighdegreeofvarianceandcomplexity,asproductsoftenchange
and the manufacturing process is disrupted quite frequently, making
standardization of manufacturing processes and supporting applications more
difficult.
4.1.2 Organizational Embedding
AsMESisoftenviewedfromarathertechnicalperspective,focusingonapplications
that support (parts of) the manufacturing process, responsibility for the subject is
generally assigned to IT departments. This is also the case in the four companies
examined.However,automobilemanufacturersdoemphasize theprocessviewby
assigningthedesignandimplementationofproductionprocessestothedepartment
responsible for MES, allowing them to develop MES solutions according to the
specificrequirementsoftheproductionprocess.
Moreover, the strategic significance of manufacturing processes entails that the
automobilemanufacturersaimatmanaging the issueofMESonaglobal level in
order to achieve maximum homogeneity among all plants worldwide.
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Organizational units appointed to deal with the subject are supposed to be
commonly responsible for aligning the application landscape to process
requirements,
i.e.
they
are
expected
to
develop
guidelines
for
optimal
application
supportofbusinessprocesses.Theseguidelinesare then implementedby the local
ITdepartmentofeachmanufacturingplant.Thegloballyresponsibleorganizational
units do not necessarily focus on MES solely,but are supposed to design the
application landscapeasawhole, including systemson theERP layerandon the
ShopFloorlayer.Duetothedifferencesintheproductionprocess(batchproduction
versusflowproduction),inmostcasestheautomobilemanufacturershaveseparate
unitsforassemblyandcomponentmanufacturingplants.
Some of the automobile manufacturers have implemented socalled Centers of
Competence (CoC)orboards,whichdonotjustmanage the topicgloballybutare
composedofrepresentatives fromvariousplants,divisions(manufacturing,IT),or
even production process types (component manufacturing, assembly). These
organizational units aim at fostering standardization and minimizing the gap
betweencomponentmanufacturingandassembly(asfaraspossible).
4.1.3 Appl ication Landscape and Integration
Concerning automobile manufacturers applications on the MES layer, current
efforts are commonly characterized by the will to consolidate and harmonize
existingapplicationlandscapesinordertoreduceITcosts.Anaveragenumberof70
applicationsbeingoperatedontheMESlayerconstitutesaseriouscomplexitydriver
for integration and, as a consequence, enhances IT costs. Generally, the study
revealed significant discrepancies between assembly and component
manufacturing,whichcanmainlybeattributedtothemanufacturingcharacteristics
given. Being characterized by a high degree of variance and very specific
manufacturing tasks, standardization (of both processes and applications) in
component manufacturing is much harder to achieve than standardization in
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assembly. Component manufacturing ranges from relatively simple components
(pressed parts, cast parts etc.) to very complex components (such as engines or
gears),
and
in
many
cases
specialized
applications
are
needed
to
support
complicatedmanufacturingtasks.Accordingly,MESapplicationlandscapestendto
bemoreheterogeneousincomponentmanufacturingplants.
In the manufacturers assembly plants one to maximum three proprietary
applicationscoverallcorefunctionalitiesrequiredontheMESlayer(seeFigure41),
except for very specific tasks, such as screwing technology or testing equipment,
thatareclosetotheshopfloor.Applicationsareeitherselfdevelopedordeveloped
with external partners, and they cover areas such as production logistics and
control, quality management, and machine control. In one case the MES solution
implementedconsistsofseveralfunctionalmodules,whichcanbecombinedflexibly
andallowfortailormadeadaptationtoplantspecificrequirements.Indoingso,this
OEM isable to reuseMES functionalityacrossdifferentplants, thereby increasing
the degree of standardization and at the same time reducing costs for software
developmentandmaintenance.
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Figure41:Simplifiedapplicationlandscapesinassemblyplants
Inautomobilemanufacturerscomponentplants,fourtosixselfdevelopedsystems
areoperated,coveringdifferent functionalities (seeFigure42).Forexample, there
areseparateapplications tosupport the (detailed)planningprocess,connection to
thecontrolsystemontheshopfloor,qualitymanagement,orproductionreporting.
BythisthepossibilityofaccomplishingintegratedMESisaggravated,asdataiskept
separately and in different formats. Furthermore, a large number of applications
generallyleadstohigheroperatingITcosts.Onlyinonecaseanewlyimplemented
MES(towhichnewfunctionalityisconstantlyadded)coversallcoreMESfunctions
andcanbedescribedasintegrated.
ERPLayer
MES
Man.
Control
MES
QM
MES
Machine
Control
SAP
ERPLegacy
SF
Control
Systems
ShopFloor
ERPLayer
MESInformationSystem
SAP
ERPLegacy
MESLayer
MESLayer
ShopFloor
ERPLayer
MESManufacturingControl
SAP
ERPLegacy
MESLayer
ShopFloor
MESReporting
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
StandardApplication
NonStandard,Proprietary
Application
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Figure42:Simplifiedapplicationlandscapesincomponentmanufacturingplants
In most of the automobile manufacturing companies integration of different MES
applications is accomplished through socalled telegrams (i.e. messagebased),
which are standardized with regard to format and structure. Specification of the
corresponding interfaces is mandatory for integrating newly acquired, additional
applications(e.g.fromcommercialsoftwarevendors).
Ascanbederived from the findingsdescribed,MESapplicationsaremostlynon
standardized, proprietary. They were either selfdeveloped or developed in close
collaborationwithexternal softwarepartners (marked in lightgreen inFigure41
and Figure 42). This canbe explained mainlyby the automobile manufacturers
desire to support the manufacturing process with its specific requirements in the
bestpossiblewayandtointegratewiththeexisting,historicallygrownapplication
landscape. Moreover, in most cases the applications currently operated were
ERPLayer
MES
Man.
Control
MES
Re
porting
MES
QM
MES
Detailed
Planning
ShopFloor
ERPLayer
MESLayer
MESLayer
ShopFloor
ERPLayer
MESInformationSystem
MESLayer
ShopFloor
MES
JIT/JIS
MES
Man.
Control
MES
Re
porting
MES
QM
MES/SF
Connect
SAP
ERPLegacy
SAP
ERPLegacy
SAP
ERPLegacy
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
SF
Control
Systems
StandardApplication
NonStandard,Proprietary
Application
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developed severalyearsago leaving thepotentialofnew,uptodate technologies
unexploited.
Commercial
software
vendors,
in
turn,
have
ignored
the
need
for
software
support
betweentheERPlayerand theShopFloorlayerfora longtime,which iswhythe
automobilemanufacturershavebeguntodevelopappropriateapplicationsontheir
own. Although all four OEMs have always recognized the advantages of a
standardizedandintegratedMES(whichismostnotablycharacterizedbyreduced
effort for integration and maintenance as well as increased flexibility), they have
oftenexpressedtheirscepticismregardingfeasibility.
On the ERP layer the degree of standardization is considerably higher. Legacy
systems are being increasingly substituted by standardized, commercial ERP
systems,withSAPbeingthedominantsoftwareprovider(ERP,APO).
4.2 Functional MES Reference Architecture
Reference
models
(and
consequently
architectures
as
specific
models
as
well)
are
characterizedbythreeattributes[Fettke/Loos2004]:Universalapplicabilitydenotes
thepossibility todeployareferencemodel inmore thanonespecificorganization.
This, in turn, fosters reusability meaning that generic conceptual patterns canbe
used againby simply applying predefined adaptation mechanisms reducing the
effortforredevelopment.Finally,referencemodelscontainbestpracticesproviding
recommendations for conducting business. Basically, reference models can be
derivedeitherbygeneralizing findings fromanumberof investigatedcasesorby
adaptinganexistingreferencemodeltoparticularrequirements[Beckeretal.2002,
p.49].Inourstudy,wepursuethefirstapproachbasedonthefourcasestudies.The
functionalMESreferencearchitectureisrepresentedbythesocalledMESFunction
Map.
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4.2.1 Generic MES Funct ion Map
TheMESFunctionMapvisualizesdifferentbusinessandmanufacturing functions
andassignsthemtooneofthethreelayers,namelyERP,MES,andShopFloor,or,
morepreciselyspeaking,tothecorrespondingapplicationsassignedtotheselayers.
Itcanservetwoobjectives:firstly,itcanbeusedasameansforcommunication(as
doneinourprojectduringtheassessmentworkshops);secondly,wheninstantiated
theFunctionMapcanbedeployedtodesignorrefinetheapplicationarchitectureby
assigningsoftwarecomponentstothefunctionmapped.
TheFunctionMapwasinitiallydevelopedonthebasisofaliteraturereviewofMES
relatedjournalandconferencearticlesfrombothresearchandbusinesspracticeas
wellasestablishedMESstandards(seeSection3.2),suchasISAS95[ISA2000]and
MESA [MESA 2000, MESA 2004]. Additionally, we analyzed MES related white
papers of more regional standardizationbodies, namely the National Institute of
Standards(NIST,[Barkmeyeretal.1999])intheUnitedStatesofAmericaaswellas
the 5600 Directive of the VDI [VDI 2007] and a guideline publishedby NAMUR
[NAMUR2003]inGermany.
From the specifications of the standardization organizations presented we have
derivedasynthesisofrelevantMESfunctions,whicharedepictedinTable41.The
footnotesrefertotermsusedbythestandardsthatdeviatefromthefunctionnames
usedwithintheIMEproject.
MESA
[MESA2000]
NAMUR
[NAMUR2003]
VDI
[VDI2007]
NIST
[Barkmeyer
etal.1999]
LabourManagement X X
(Material)RequirementsPlanning X1
GrossPlanning X1
DetailedPlanning X X X X
QualityManagement X X X X2
ProductionInventoryManagement X X3 X
ResourceManagement X5 X
4 X
5
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MESA
[MESA2000]
NAMUR
[NAMUR2003]
VDI
[VDI2007]
NIST
[Barkmeyer
etal.1999]
EquipmentManagement/
MaintenanceX6 X X
6
ManufacturingExecution/Control X X
Traceability/Genealogy X X
ProductionReportingandAnalysis X7 X X
7
MachineControl X
ProductionDataAcquisition X X X
MasterDataManagement X8 X
8 X
9 X
1OperationneutralProductionPlanning
6MaintenanceManagement
2
QualityAnalysis7
PerformanceAnalysis3StockManagement
8DocumentControl
4MaterialManagement
9InformationManagement
5ResourceAllocationandTracking
Table41:MESfunctionsasspecifiedbydifferentstandards5
BeyondameredefinitionofMEStasks,theVDI5600Guidelinealsoidentifiesand
characterizesobjectstobemanagedontheMESlayer(suchasresourcesordata)and
not
on
the
ERP
layer
or
the
Shop
Floor
layer.
ForthedesignanddevelopmentofanMESfunctionalarchitectureintheautomotive
industrytheinvestigatedstandardswereuniformlyestimatedasinexpedientdueto
theinsufficientdegreeofdetailoftheprovideddefinitionsandthelackingfocuson
specificrequirementsoftheautomotiveindustrybytheinterviewedexperts.
WithregardtoourgoalofderivingafunctionalMESreferencearchitecture,wehave
used the specifications of these standards as a starting point for a more detailed
definitionofMESand related functions,which later resulted in theMESFunction
Map. The generic MES Function Map, as illustrated in Figure 43, comprises the
three layers already specified, namely ERP, MES, and Shop Floor. To each layer,
correspondingprocessesor functionsareassigned.The firstclusterof functions is
5
Amoredetaileddescriptionofthefunctionswithsingletasksforeachofthestandardscanbefound
inAppendixB.1.
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thecategoryoftypicalbusinessfunctions,suchassalesanddistributionormaterials
management,whichisassignedtotheERPlayer.TotheShopFloorlayerweassign
functions
that
are
directly
concerned
with
the
control
of
machinery,
such
as
Distributed Control Systems, Remote Terminal Units and Programmable Logic
Controller.
Figure43:GenericMESFunctionMap
The MES layer comprises typical functions for production planning and
manufacturing control, such as Product Traceability and Genealogy, or Dynamic
Routing.
Dynamic
Routing
was
added
although
it
is
not
an
element
of
the
MES
standardsinvestigated,asithasrecentlybeenamuchpropagatedfunctionoffered
by commercial MES software vendors, such as SAP. Moreover, our initial expert
interviewscarriedouttoverifytheMESFunctionMap(seeTable21)confirmedthe
potentialofthisfunctionforcostandtimesavingsinthemanufacturingprocess.
Themainfunctionsareshortlydescribedinthefollowing.Moredetaileddefinitions
foreachfunctionareprovidedinAppendixB.
Shop
FloorLayer
MESLayer
ERPLayer
DNC/CNC
ProgrammeControl
Supervisory,
Control and Data
Acquisition(SCADA)
Remote
Terminal Units(RTU)
Distributed
Control Systems
(DCS)
Programmable
Logic Controller(PLC)
(Internal) Cost
Allocation
ERP Business
Functions
CoreMESFunctionalities
Gross PlanningDetailed
Planning
Quality
Management
(Production)
Inventory
Management
(Material)
Requirements
Planning
Production Data
Acquis ition
(PDA)
Machine Control
Potentially RedundantFunctionalities CompanySpecific Implementation NotwithinMESScope
Resource
Management
Manufacturing
Execution /
Control
Equipment
Management /
Maintenance
Dynamic RoutingTraceability /
Genealogy
Production
Reporting and
Analysis
MES Master Data Management
Labour
Management
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LabourManagementprovidesinformationonthestatusofpersonnelinanup
totheminute time frame including time logging, attendance reporting,
qualification
documentation,
and
staff
scheduling.
GrossPlanningderivesprimaryrequirementsfrom the totalcustomerorders
receivedandfromforecastsmadeduringsalesandrequirementsplanning.It
isalsoreferredtoasRoughProductionPlanning.
Detailed Planning takes over the production requirements from Gross
Planning and derives production orders under consideration of production
restrictionswithdetailedtimescheduling(sequencing)andjobsizes(concrete
productionplan/schedule).
Quality Management provides timely analysis of product and process
measuring taken frommanufacturingoperations inorder toensureproduct
quality control, including quality/inspection planning, inspection execution
anddocumentation,andmanagementoftestequipment.
Production Inventory Management, also referred to as Stock Management,
documents all current and available stocks of material (input material,
intermediateandfinalproducts)includingtheirlocation.
ResourceManagement, or Material Management, aims at needbased supply
withanddisposalofmaterialonschedulewithinthemanufacturingprocess,
includingmanagementofworkinprogress(WIP)material,i.e.resourcesthat
arecurrentlyoutsidecentralstockkeeping.The function isoftenreferred to
asMaterialandProductionLogistics.
Equipment Management / Maintenance ensures availability of machinery
equipment on schedule and, therefore, manages all equipment information
includingmaintenanceandrepairrequired.
ManufacturingExecutionandControlguaranteesproductionandmaterialflow
according to thedetailedproduction schedule (productionmonitoring)and
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sendsbackinformationontheactualprocess.Itcanalsoaltertheproduction
schedule and provide Electronic Control Station (ECS) and Planning Table
functionality.
Traceability andGenealogyprovides transparencyas to theproduction status
including localizing of manufactured goods at any time during the
manufacturingprocess.Moreover,ittracks,collectsandverifiesinformation
about subcomponentsbeing assembled to parent components. This record
allowsfortraceabilityofcomponentsandusageofeachendproduct.
DynamicRoutingprovidesalgorithmstoroute inrealtime intermediaryor
workinprocessmaterialtoappropriatestationsand,hence,achieverealtime
loadbalancing inorder to increasemanufacturingperformancewithregard
tothroughput,workloadbalanceandworkinprocessqueues.Thefunctionis
oftenincludedinManufacturingExecutionandControl.
ProductionReporting andAnalysisallows foruptotheminute reportingand
analysisofactualmanufacturing.The functionallows forStatisticalProcess
Control (SPC), i.e. to compare planned manufacturing and actual
manufacturing using performance indicators which can be graphically
visualized.
Machine Control constantly monitors the status of all machinery collecting
machinedata(MachineDataAcquisition).
Production Data Acquisition ensures eventdriven acquisition, storage, and
update of data from the production process, including manual acquisition,
data preprocessing, and automated data transfer. Usually, this function
provides initialplausibilitychecksareprovided inorder tominimizeentry
errors.
Master DataManagement is a synthesis of the two functions Information
Management (defined in the VDI standard) and Production
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Documentation (definedbothby MESA and NAMUR), as these tasks are
fairlysimilar,allowing tomanage records (ofproductorequipmentmaster
data)
that
preferably
should
be
kept
within
the
production
unit.
Some functionshavebeendeliberatelypositioned inbetween the layers.Although
someMESstandardsdoassignthesefunctionstotheMESlayer,inpracticetheyare
notalwaysimplementedononelayerortheotherunambiguously.Implementation
of these functions often is determined by company specific or production site
specific factors. Quality Management, for example, canbe assigned to either ERP
systemsortoMES;insomecasesevenoverlappingimplementationsonbothlayers
exist.IfthisisthecasetherehastobeagoodmatchingbetweentheERPsystemand
the MES, as the entire process is running across systems [Lampl 2009, p. 99].
Therefore, we left this question tobe answeredby our project partners and the
FunctionMaptobeinstantiatedflexibly.
However,wehaveprovidedabasicdefinitionforeachfunctioninordertoallowfor
a common understanding, so that assignment to one or more of the layers is
facilitated.It is important toemphasize that thefunctionsdescribedarenot totally
disjunctivebutmayoverlaptosomeextent.
4.2.2 MES Function Map Instantiations
MESFunctionMapsastheywereinstantiatedbytheautomobilemanufacturersare
enclosedinAppendixA.Duetothefactthat inonecasestudy threeplantsofone
OEMwithdifferentproductionprocess typeswereexamined,FigureA1contains
sixdifferentMESFunctionMaprepresentations.
Duringtheassessmentworkshopsitturnedoutthatsomeofthefunctionshadnot
been sufficiently detailed, preventing unambiguous assignment to the layers. We
thereforedecidedtofurtherspecifyeachMESfunctionintermsofdeterminingsub
functions and corresponding tasks. Again, the abovementioned standards (see
Section 4.2.1) served as a starting point for definition. Appendix B.1 gives a
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definition for each MES functionby listing all tasks definedby the respective
standard. Based on this analysis we developed a consolidated list that includes
essential
tasks
of
each
MES
function
(see
Appendix
B.2).
The
list
was
validated
and
slightlycomplementedwithfindingsfromexpertinterviewsandthenusedtoverify
theMESFunctionMapsinstantiatedduringtheassessmentworkshops,enablingus
tomorepreciselyassignMESfunctionsandrelatedtaskstothethreelayers.Figure
44showsanexemplaryMESFunctionMapwithassignmentofthetasksdefinedin
Table B2. Each of the letters denotes a single task of a MES function with tasks
belongingtothesameMESfunctionhavingthesameletter.
Figure44:MESFunctionMapasinstantiatedwithdetailedtasks
The automobile manufacturers functional MES architectures illustrated by the
respective MES Function Maps have revealed some functional requirements that
needtobemetbyMESsoftwareproducts.Onemajorfindingfromthecomparison
of the different instantiations is that a generalized statement with regard to
functional requirements across all automobile manufacturers cannot be made.
Requirements are rather company specific or production specific, with the MES
ShopFloorLayer
ME
SLayer
ERPLayer
ShopFloorLayer
MESLayer
ERPLayer
Equipment
Management
B
A
A
A
A
A
LabourManagement
B
B
BB
BB
B
Detailed
Planning
C
C
C
C C
Gross
Planning
D
D
D
D
D
D
D
D
D
QualityManagement
E
E
E
E EProduction
Inventory
Management
F
F
FF
F
F
Resource
Management
G
G
G
G
G
G
H
H H
H
H
H
H
Manufacturing
Execution /Control
H
H
H
H
I
II
I
Traceability /
Genealogy
K K
KK
Dynamic
Routing
L
L
L
L
Production
Reporting &
An alysi s
M
M
M
Machine
ControlN
NPDA
N
N
O
O
O
Master Data
Management
L
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layer (and corresponding applications) covering different functions, raising the
questionwhetherthenotionofstandardizedMESsolutionsupportisrealisticatall.
Moreover,
the
heterogeneity
identified
leads
to
another
question
about
the
factors
influencing the assignment of functions to the different layers. This topic is
addressedinmoredetailinSection4.2.4.
Nevertheless,basedonthetotalnumberofMESFunctionMapinstantiationssome
generaltrendsonfunctionalMESrequirementscouldbeidentified(seeFigure45).
For instance, Detailed Planning, Traceability and Genealogy, Dynamic Routing,
ProductionReportingandAnalysisaswellasManufacturingExecutionandControl
are mostly seen as core functions tobe addressed on the MES layer6. For other
functions,suchasResourceandEquipmentManagement,andQualityManagement,
MES applications need to provide support. Here, the topic of integration with
applications from the ERP layer and the Shop Floor Layer, covering some of the
tasks of these functions, is predominant. Evaluation of MES functions from an
integrationperspectiveisdiscussedinmoredetailinthefollowingsection.
Figure45showsthefrequencydistributionofallfunctionsofthegenericfunctional
referencearchitecturewithregardtobeingassignedtotheMESlayer.
6
These conclusions are made independently from the importance of each function for each OEM investigated.
The topic of relevance is discussed separately in chapter 4.2.3.
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Figure45:FunctionstobecoveredbyMESapplications
4.2.3 Priori tization of MES Functions
Beyond thegoalofachievingterminologicalclarity,theMESFunctionMapserved
for prioritizing MES functions, depending on their relevance for the respective
Company as well as on their estimated contribution for improving the
manufacturing process.Although theautomobile manufacturers revealed a rather
heterogeneouspicturehere, theassessmentworkshopsyielded some findings that
canbegeneralized.
Firstly,ageneraltendencycouldbeidentifiedthatMESapplicationsshouldfirstand
foremost supportbasic MES functions, such as Detailed Planning, Manufacturing
Execution and Control, Production Data Acquisition, or Production Reporting.
Although the potential for efficiency gains of functions such as Traceability and
Genealogy or Dynamic Routing has been recognized and even first positive
experiences with corresponding implementations havebeen made in some of the
plants (most notably the component manufacturing plants), these functions are
assessedrather
as
supplementary
nice
to
have
functions
by
the
majority
of
the
Function
Number of assignments to the MES layer0 1 2 3 4 5 6 7
(Material) Requirements Planning
Product ion Inventory Management
Gross Planning
Production Worker Guidance
Labour Management
Equipment Management
MES Master Data Management
Resource Management
Dynamic Routing
Traceability / Genealogy
Machine Control
Manufacturing Execution/Control
Production Data Acquisition (PDA)
Production Reporting and Analysis
Quality Management
Detailed Planning
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workshopparticipants.Moreimportanceisattachedtononfunctionalrequirements
suchasguaranteeing sufficient integrationwithexistingapplications (be iton the
MES
layer
or
on
the
ERP
and
the
Shop
Floor
layer).
This
point
was
a
typical
example
for the importance of nonfunctional requirements, which in many cases were
valued more highly than purely functional requirements. They are discussed in
moredetailinsection4.2.5.
Secondly, thereseems tobeasignificantpotentialforimprovementwithregardto
functionsprovidedby severalapplicationsondifferent layers. A largenumber of
functionswasassignedtomorethanonelayer,implyingthatapplicationsystemsof
different layers and with different planning horizons support execution of these
functions (seealso instantiatedMESFunctionMaps inAppendixA).This leads to
the need for effective integration of these systems in order to enable continuous
planning and control. Consequently, the MES functions canbe prioritized with
regardtotheneedforbeingintegrateddependingontheirassignmenttoone,two
or,allthreelayers(seeFigure46).
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