Antonio Suk Keun Cha

Cofounder/CTO

ACS Corp. in Korea

December 2nd, 2014

I. Before: Scoping of e-Manufacturing

Manufacturing business opportunities in El Salvador

Manufacturing is the production of merchandise for use or sale using labor and

machines, tools, chemical and biological processing, or formulation based on provides

flexible for increasing quality, reducing cost and shorten delivery for manufacturing

processes. – Source: Wikipedia

Quality Cost DeliveryFlexible

Q DC F

Mission for CEOs

Percent of 100 manufacturing companies responding

(multiple responses accepted)

Poor visibility into plant

operations

Inaccurate demand

forecasting

Poor communication

Supply shortfalls

Poor customer satisfaction

Don’t know

38%

36%

24%

18%

8%

8%

“What are your biggest problems with manufacturing? ”

Forrester Research, July 2000

I. Before: Scoping of e-Manufacturing

Fall Conference 2001

Enterprises must insure that data is

accurate and timely, to support

collaborative initiatives

Data Latency and Inaccuracy

Six common practices that will cause ERP II failure:

Manual adjustments to inventory

Relying on annual physical inventory

Delaying material receipts and issues

Ignoring rescheduling and exception messages

Production reporting only at the end of the line

Using “dummy” sales and/or purchase orders

Enterprise

Applications

e-Manufacturing

with Real Time

Enterprise

Direct, Automated

Information Feeds

I. Before: Scoping of e-Manufacturing

Real time collection of 4M1E (Man,Machine,Material,Method,Energ) and providing

real time performance measurement for internal optimal decision based on

production current status, product promised date for customer satisfaction in every

type of manufacturing enterprises.

You cannot manage what you can not measure!!!

Before

군산생산감시시스템 (화성)

I/PBUMPER

Monitoring/Analysis

Information

Decision making

Information

Real time 4M1E data Integration

Customer information

Deliver information

After

4M1E

I. Before: Scoping of e-Manufacturing

Source Items

Method

Std. OP

Lot No.

Traceability …

Machine

Counter

Run time

Failure reason

Material

Location

Specification

WIP level …

Man

Start/End

Failure code

Not run

Reasons …

Energy

Voltage, current,

flow, Pressure …

4M1EWired Sensor Networks

Device

Controllers

RFIDPLC

Machine

e-Manufacturing

Software

(POP/MES/ERP)

Protocols Process I/O Sensor I/O

Wireless Sensor Networks

RFID/USN Touch Screen Mobiles

Wired IoT/M2M

Devices

Sensors

Relays

Access

Point

Bar code

Reader

Touch

Terminals

ISO 22400

ISO JTC 1

Wireless Sensor Network

IoT/M2M Device

Gateway

The Methods of 4M1E integration in real time with International standard

- Wired sensor networks : Communication Protocols, Process I/O, Sensor I/O

- Wireless sensor networks: Internet of Things/Machine to Machine(IoT/M2M), RFID/Bar

code, Touch screen, Mobile devices

Wired IoT/M2M

Device

Production floor

(POP: Point of Production, MES: Manufacturing Execution System ERP: Enterprise Resource Planning)

PDA

Mobiles

Office PCs

I. Before: Scoping of e-Manufacturing

9

• Wired IoT/M2M devices

- Open embedded Linux based low

power consumption intelligent devices

Installed Installed

I. Before: Scoping of e-Manufacturing

• Wireless IoT/M2M devices

- Low power and small size of IP based

wireless sensor network

10

• Touch Screen Terminals

- No IT resource in terminal

- Low power, good for harsh environment

- No issue of hacking and IT security

- Easy to use manual data entry by workers

: Display big characters & touch

• Managing by moving- mobile for production and

maintenance

- PDA and smart phone integration

I. Before: Scoping of e-Manufacturing

Name ACS(Advanced Consulting Services Co.)

Businessconsulting service, solution developing

manufacturing ICT convergence

Employees 95

R&D budget 8% of Annual Revenues (as of 2013)

Core

Technology

e-Mfg®, u-Mfg® Auto-configuration® real

time event driven, M2M/IoT

Qualified

Product DABOMⓇ-series

DABOM® means “see-all” in Korean word and a trademark of ACS

Central managing by DABOM

globally distributed manufacturing

enterprises

• 1,000+ Real time production management system in world wide since 1988

• International Standard based COTS(Commercial Off The Shelf) approach

II. e-Manufacturing deployed by ACS

II. e-Manufacturing deployed by ACS

Industrial

Template

functions

Real time event

based Middleware

(DABOM-

Middleware)

Manufacturing

International

standard

application

(ISA S-95

MESA-11)

DABOM-MES

Industrial

specific

application

Wired and

wireless sensor

Devices

(DABOM-Device:

iTOUCH, iDCU)

Company facts- Annual Rev : 10 Million USD

- No. of Employees : 104 peoples

- Type of Manufacturing : Electronics Part

- Type of Products : AC IN/OUT LET , PIN JACK

Reasons for deployment

- Can not see what is current status of production line

- Impossible to productivity analysis and quality, equipment down history due to manual

reporting

- No way to make a decision for delivery due date

- No way to estimating accuracy production planning

User Benefits- More than 25% increased quality control level

- Quickly respond for production issue

- At least 30% reduction cost of record and analysis works

- Increased customer satisfaction

- More than 20% increased run time of equipment

II. e-Manufacturing deployed by ACS

Hardware & Network Configuration

Office PC

- ERP access

- ACS DABOM-MES access

ERP Server

(H.Q) ACS

DABOM-MES

Extrusion machines (27 Unit)

Press Line

Device

Interface

(4 Unit)

Device

Interface

(6 Unit)

Press (12 unit)

……

8 Machines

Manages by

PDA

……

21machines

manages

by PDA

Extrusion Line

Touch

Screen

Assembly line

Internet

II. e-Manufacturing deployed by ACS

Reasons for deployment

User Benefits- Reduced 30% of labor cost

- 25% of reduced capital investment

- 10% of increased profit of company

II. e-Manufacturing deployed by ACS

Company facts- Jeju Local Government operation

- Annual Rev : 170Million USD (23.1% Market)

- Type of Manufacturing : Process industry

- Type of Products : Drink waters

- Image making Jeju Local Government as clear and trust

- Needs real time tracking of drink waters

- Impossible to tracking of labor and production cost

POP/MES ServerERP Server

Wireless Access Point

Touch Screen Terminals

Large LCD DisplayBar code Printer

PDAsPLCs

II. e-Manufacturing deployed by ACS

Work order plan

Quality Trend

II. e-Manufacturing deployed by ACS

Before After Result

68% Reduced 32%

240 Min./ Month 120 Min./Month Reduced 50%

Item

Inventory

Time for Inv.

Level

100%

Leadtime 1.95 Min. 1.05 Min. Reduced 46%

Inventory

accuracy60% 97% Enhanced 57%

WIP 100% 65% Reduced 35%

24.96/Month Reduced 79%Short STOP Time 120.85/Month

II. e-Manufacturing deployed by ACS

21

III. After: Smart Factory and Vision

• USA: Focused on Global Coordination with 3 D printing

• Germany: CPPS: Cyber Physical Production System for smart Factory

• Korea: Smart Factory using ICT

• 제조, ICT, 서비스 산업의 융합에 따라 제조업의 비중이 다시 높아짐

Manufacturing 2.0 Industry 4.0 Manufacturing Innovation 3.0

22

III. After: Smart Factory and Vision

• Vertical Top down -> Horizontal Internet driven

• One way -> Bi-direction

• Wired networks -> Wireless Sensor Network

• SMART(Seamless, Mobility, Autonomous Configuration, Real-time, Traceability)

① ①

② ②

③

Green IT

23

Chungnam Techno Park SaaS based e-Manufacturing Services

III. After: Smart Factory and Vision

POP Application

Dabom®-middleware

POP Server

Line 1

Sensors

Remarks

IDCU

Touch Panel

Hard Wire

100Mbps Fast EthernetWireless AP

Bar code reader

Production Status DisplayProduction Status Display

Line 2

Line 3

Line 4

Line 5

Line 6

Line 7

Line 8

Line 9

Line 10

Line 11

Line 12

Warehouse

MES Server &

Dabom®-MES Application

Wireless M2M Device

Thin client Touch Terminal

Wireless bar code reader

24

Implementing production line at Yong-san plant

III. After: Smart Factory and Vision

User benefits

Index Detailed index Y Co. Current Target

Time for Work order Delivery time for work order 1H 15M 3M

Time for daily inventory auditTime for inventory status 5H Real time Real Time

Time for inventory status Report 5H 10M 5M

Time for daily work report generationTime for work order 3H 15M 5M

Time for summary 2H 15M 5M

Total 16H 55M 18M

Index Detailed index K Co. Current Target

Time for daily inventory status Time for inventory status 3H Real time Real time

Time for daily sales summaryTime for sales summary Real time Real time Real time

Time for report 1H Real time Real time

Audit time

Closing for logistic 15H 10M 5M

Time for financial report (5H) - Real time

Monthly average closing time 10Days 5Days 3일

Total10Days 19

hours

5Days 10

Min3 days 5M

III. After: Smart Factory and Vision

IV. Lessons learned and recommendation

For Executives of Manufacturing SMEs

- Mindset of what really means by real time for production resources(4M1E)

: Bar coder reader can not cover every issues in production

- Think about TCO (Total cost of ownership)

: Development cost of 30% and maintenance cost of 70%

- Think about bottom-up approach with step by step deployment No Top-Down

For Executives of ICT vendors

- Need a skill set of 4M1E integration in real time for global consulting services

- Need Real time event driven middleware functional support for local maintenance

- Need to train ICT peoples

To El Salvador

- Must establish a support organization dedicated for the Government control

: Look at the case in Korean case (Dr. Kim will help you!) and the Smart

Factory program

- Collaboration with global vendors as Korea

: Development cost of 30% and maintenance cost of 70%

- Bench-making of global success cases like the SaaS model for Cloud computing

: Chungnam Techno Park in Korea to be an excellent reference site

IV. Lessons learned and recommendation

Gracias !

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