organizing data to enable enterprise-wide manufacturing intelligence

©2011 21CMS All Rights Reserved

Webinar 1:Organizing Data to

Enable Enterprise-wide Manufacturing Intelligence

Thursday September 29, 201111 AM PDT, 2PM EDT


Standards Liaison for Manufacturing OperationsCharlie Gifford• MESA International Outstanding Contribution Award 2007• Thomas Fisher Award for Best Standards Book of Year 2010• Certified TQM Facilitator / Process Action Team (PAT) Leader, 20 years• Chairman, ISA-95 (B2M, MOM) Best Practices Working Group• Director, MESA Global Education Program• Voting Member, ISA-88 & ISA-95 Committee• ISA-95 Representative, ISA-95/SCOR Alignment Working Group• Information Member: ISA-99 (Security), ISA-100 (Wireless)• Director, ISA Computer Technology Division 96-99• Coauthor, SCOR MAKE Section• Chairman, Editorial Board, Industrial Computing Magazine 98-02• Published over 45 papers and 4 books on Mfg Operations IT• Standards Work: ISA-84, 88, 95, MESA, SCOR, Many DOD Standards

2


Agenda

• Standards-based Manufacturing Intelligence• Adaptive MES/MOM Standards Overview

• Conclusion

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21st Century Manufacturing Issues

• Diversity• RAPID Change• Competitive Disadvantage!

4


Business Value of Structured Manufacturing DataInnovative Manufacturers Apply Standards-based Applications and Methods

3M IBMBP InBevCargill MasterfoodsChevron MillerCoorsDow NestleDuPont P&GEli Lilly PfizerGM Wrigley

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• DATA INTEGRITY through a single mfg operations definition!• Adapt & optimize their manufacturing for

21st Century “Pull” MTO market environments• Focus on plant agility and excellence simultaneously through

SCALABLE Continuous Improvement− Real-time architecture uses configurable, model-based applications− Common (reusable) components for operations processes

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Business Value of Structured Manufacturing Data


Aligning Production Capabilities to 21st Century Challenges Mandates Fundamental Change…

Customers

Manufacturers Dist

SupplierExchanges

Customer Exchanges

LogisticsExchanges

Suppliers

CMs

Retailers

Virtual Mfg.

Logistics Providers

Copyright @2007 Gartner Group: All rights reserved.

20th Century Manufacturing

21st Century Manufacturing is Lean & Flexible Supply Chains

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Customer

Customer

Customer

Customer

Customer

Customer

Critical Need:Production Capability & Alignment

Supplier

Supplier

Supplier

Supplier

Plant

Plant

Plant

Business Evolves towards Configurable Demand-Driven Supply Chains

Copyright @2007 Gartner Group:All rights reserved.

DC

DC

DC

DC

DC

21st Century Manufacturing Competative Enablers:MOM Adaptability & Real-Time Visibility

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Broadcast

WIPTrack

ProductionMonitoring

Scheduling

SCADA

ANDON

DataCollection

ReSequence

eKanban

Logistics

SuppliersCorpSystems

OrderMgmt

Quality

ErrorProof

AssetMgmt.

Required Agility Forces Change

9


Innovate Operations Process

Effectiveness


M2.0ValueInnovationCollaboration

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Design a Global Manufacturing Environment

Evolve Demand-Driven Manufacturing as a Scalable Business Model

• Synchronize manufacturing and logistics work processes • Dynamically reconfigurable supply network to a known profit

per order fulfillment path• Reuse of Model-based architecture provides scalable

continuous improvement capability• Scalable Continuous Improvement “Network”

12


Top Line Opportunities are Compelling, But More..

3 - 12 mos. 12 to 36 mos. 3 years +

Reduce Operating Costs

Increase Volume and /or Margins At Same Cost

Increase Market Share And/Or Pursue New Markets

Faster NPI cycle – shorten TTM for innovationCustomer audit requirements: traceability and genealogy MES marketed as competitive tool Promotes flow manufacturing

Supports collaborationSupply chain visibilityPlatform for continuous improvement

Lower WIP and FGI Reduce indirect labor costsReduce waste/scrap/materials Shorten cycle/flow time Reduce cost of regulatory complianceImprove quality/ reduce process & product Reduce rework variabilityReduce maintenance costs

12 to 36 mos.

Faster NPI cycle: shorten TTM for innovation

Customer audit requirements: traceability and genealogy

MOM marketed as competitive tool

Supports collaborationSupply chain visibility

Platform for Continuous Improvement

Lower WIP and FGI Reduce indirect labor costsReduce waste/scrap/materials Shorten cycle/flow time

Reduce cost of regulatory compliance

Improve quality/ reduce process & product Reduce rework variabilityReduce maintenance costs

$$ V

alue

of B

enef

its

Project payback ranges 6 to 24 months

Average payback 12 Months on 1X Benefits

1X

10X

3X

Larger benefits from continuous

improvement: MOM is necessary to

achieve this level

MOM Systems justified on cost

reduction Source: AMR Research Report: MES Provides Long-Term Revenue and Market BenefitsBeyond Easy-to-Quantify Operational Cost Savings

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Manufacturing Operations Contribution

Supplier Quality

Supplier On-Time

Purch Costs

Dir Mtl Costs

RM Inv

Cost Detail

Production Sched

Variance

Plant Utilization

WIP + FG Inventory

Order Cycle Time

Perfect Order Detail

AP ARInventory

Total

Cash-to-Cash

Perfect Order

SCM Cost

Demand Forecast

• Right product• Right Quality• Right place• Right time• Right profit margin

Enterprise Manufacturing Intelligence

• Importance of Perfect Order Performance

• 15% less inventory• 17% stronger perfect

order fulfillment• 35% shorter cash-to-

cash cycle times• 1/10 of the stockouts

of their peers

Copyright © 2011 Gartner Group

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Best-in Class Focus on Perfect Order and NPI

© 2011, Aberdeen Group. All Rights Reserved.

15


Competitive Framework for Process Capabilities

Best-in-Class Average Laggards

Process

Standardize processes across the enterprise for optimizing manufacturing operations

64% 37% 30%Standardize measurements of KPIs across enterprise

68% 58% 51%Standardize processes for response to adverse events

64% 51% 19%Copyright @2008 Aberdeen Group, All rights reserved.

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Manufacturing Intelligence Foundation

VISUALIZECONTEXTUALIZE

e.g. Capable/Profitable to PromiseANALYZE

DEVICE I/OTAGS

EQUIPMENT & ASSET

ORDERSSPECIFICATIONS

INSTRUMENT

BUSINESSRULES

MATERIAL& PRODUCTFLOWS

PRODUCTION MODELS,RECIPES/ BOMS & ROUTES

COST-BASED MODELS

Large volumes of extremely detailed production data from multiple back-end

data sources.

Operating data transformed into asset performance KPIs

Correlate of work process data, equipment data and product data

Overall process performance metrics

Performance to schedule

PerformTo Demand

Incr

easi

ng S

trat

egic

Val

ue to

the

Ente

rpris

e

Copy

righ

t ©

2011

Gar

tner

Gro

up

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Mfg Data Sophistication Determined by Mfg Work Process

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MOM User and Functional Requirements Define Data Structure for Mfg Intelligence

1. MOM URS: Open O&M

Process Model

2. MOM URS: Open O&M Information Flows

3. MOM FRS: Open O&M Data Definition, Structure, Transactions &

Rules

• Manufacturing Intelligence Requirements: • URS sets standards for Class Structures for processes, resources, KPIs,

and metrics• Governance, Definitions, and Structure of Manufacturing Data

• Mfg Master Data Mgt: Mapping and Synchronization Processes• Metrics: Operations and Financial• KPIs: Quality and Work Processes• Align Master and Meta data for each application• Align Syntax data for each application• Mfg Integration Semantic Models (Processes and resources)• Systems of Record: Incidence and Historical Data

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Structure Mfg. Master Data vs. Enterprise Master Data

DEMAND FORECASTING

S&OP PROCESSES

MASTER PRODUCTIONSCHEDULING & RESOURCE PLANNING

SITE SPECIFIC RESOURCE PLANNING & SCHEDULINGSITE SPECIFIC ROUTINGS, WORK DEFINITION/DISPATCH

SITE SPECIFIC EXECUTION CAPABILITY (EQUIPMENT & ASSETS)

Equipment, Operations Personnel, Warehouse, Automation & Controls

Supporting details are added at each layer as needed to support execution

Master Schedule, Work Orders, BOM,

General Recipe

Bill of Materials, Bill of Process, Bill of Equipment, Bill of

Assay/Test, Labor & Skills, Bill of Compliance

Master Recipe, Formula Optimization, Scaling & Substitutions, Detailed Work Instructions, Detailed Production Schedule, local Labor

Laws & RegulationsControl Recipes, Equipment settings, Maintenance

Requirements, Tooling Management, Equipment Operating Specifications, Calibration, Process

Parameters, SOPs

Demand Forecasting

Resource Planning & Allocation

Enterprise Level MDM

Site Level mMDM

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MfgMasterDataMgt.

21

A Recipe Management Example: Master Data and its mMDM

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Production Performance

Batch Production Record

Work Production Record

Master RecipeMaster Work Definition

Product Definition

ProductionSchedule

Control Work Definition

Control Recipe

WorkSchedule

Batch List

Product RelatedDefinitions

Output fromScheduling

ExecutableElements

ExecutionResults

Site Recipe

AlignMfg OpsMaster Data

22


Agenda

• Standards-based Manufacturing Intelligence

• Adaptive MES/MOM Standards Overview• Conclusion

23


Business Scope

Production

RPO/PSO

APC Logistics

BPM

Collaborative Infrastructure

Enterprise DomainBusiness

CustomersSuppliers

Value Chain Domain

Lifecycle Domain

Automation

ERP

PLM/S

PLM/D

SRM CRMTMS

CPS

HR

EAM

FIN

GLS

Collaborative Manufacturing Management

MESMOM

Source: ARC Advisory Group

APS/FCS

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Level 4

Level 1

Level 2

Level 3

1 - Sensing the production process, manipulating the production process

2 - Monitoring, supervisory control and automated control of production process

3 - Work flow / recipe control to produce the desired end products. Maintaining records and optimizing the production process.

Time FrameShifts, hours, minutes, seconds

4 - Establishing the basic plant schedule -production, material use, delivery, and shipping. Determining inventory levels.

Time FrameMonths, weeks, days, shifts

Level 0 0 - The physical production processProduction Process

Business Planning & Logistics

Plant Production Scheduling,Operational Management, etc

Manufacturing Operations Management

Dispatching Production, Detailed ProductionScheduling, Reliability Assurance, ...

Manufacturing ControlBasic Control, Supervisory Control,

Process Sensing, Process Manipulation,…

ISA-95 Functional Hierarchy Mfg Operations Domain

Interface addressed in ISA-95.01, .02, & .05 standards

Domain addressedin ISA-95.03standard

ANSI/ISA-95.00.03-2010 Copyright © ISA 2011.


Manufacturing Integration Standards Overview

Copyright © 2006 MESA International, MESA Metrics that Matter Guidebook & Framework

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OAGIS, SCOR

Level 3: Manufacturing Operations

Level 4+: Enterprise

Level 5+: Inter-Enterprise

Levels 2, 1, 0: Machine / Plant Work

OPC: DA, HDA, A&EOMAC

Discrete Process

OAGIS, SCOR

MIM

OSA

ISA-99

OPC

UA ISA-95

ISA-88B2MMLOAGIS

Mfg Information Model Evolution: OpenO&M™ Domain Map

F O U N D A T I O N

Hybrid

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http://www.openoandm.org/�


ISA-95: An Adaptive Manufacturing Framework• ANSI standard developed by ISA 95 Committee• ANSI/ISA-95.00.01-2010 “Enterprise - Control System Integration –

Part 1: Models and Terminology”• ANSI/ISA-95.00.02-2010 “Enterprise - Control System Integration –

Part 2: Object Attributes”• ANSI/ISA-95.00.03-2005 “Enterprise - Control System Integration –

Part 3: Models of Manufacturing Operations” • ANSI/ISA-95.00.05.-2007 “Enterprise - Control System Integration –

Business to Manufacturing Transactions• ANSI/ISA-95… also available as IEC/ISO 62264 standards• B2MML V0402 – Business to Manufacturing Markup Language− Developed by the WBF as implementation of ISA-95 Parts 1, 2, and 5

• American National Standards Institute (ANSI)• International Society of Automation (ISA)• International Electrotechnical Commission (IEC)• International Organization of Standardization (ISO)

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Enterprise InformationPlant Production Scheduling,Operational Management, etc

Levels 3-4 MOM/ERP+ Data Flows: Information Categories

Manufacturing Operations and Control Information

Area Supervision, Production Planning, Reliability, Assurance, etc

Product &OperationsDefinition

Information(How to make

a product)

Production &OperationsCapability

Information(What is available

for use)

Production &OperationsSchedule

(What to make and what

to use)

Production &Operations

Performance(What was made

and what wasused)

ResourceInformation

(Personnel, Equipment,

Material,Segments)

Most UsedExchanges Today


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ISA-95: 4x4 Object Models Define B2M Data Exchanges & Data Models

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People MaterialsEquipment

Resources

Process & OperationsSegments

Structure / View

Production & Operations Schedule

Production & Operations Performance

Production

ProductTime

Production & OperationsCapability

Capability

Product & Operations Definition

Product/Operations

4 Resource Categories 4 Information Categories


Business Logistics Management

New ISA-95 Versions Support for Operations User Requirements Structure

Common MaterialSegment

Final MaterialSegment

Final ProductSegment

Make Material Segment

Inve

ntor

y

Inve

ntor

y

Deliver

Batch Batch Batch

Test

Mix

Deliver

Fill Cap Label Package

Deliver

Test

Setup/Maintain

Setup’Maintain

ProductionOperations

Management

QualityOperations

ManagementMaintenance

OperationsManagement

InventoryOperations

Management

Inve

ntor

y

Copyright © 2011 ISA

31


Equipment Model:Class and Instance Examples

Equipment class− Reactor unit, bottling line, horizontal drill press

Equipment− Reactor unit #1, bottling line #1, drill press #4

Equipment class property− Lining, BTU extraction capacity, capacity

Equipment property− Lining = glass; capacity = 400 tons− Also current availability of equipment and other current

information such as: 1) when calibration is needed2) maintenance status3) the current state of the equipment

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• B2MML-V0402-Common.xsd• B2MML-V0402-Personnel.xsd• B2MML-V0402-Equipment.xsd• B2MML-V0402-Material.xsd• B2MML-V0402-Maintenance.xsd• B2MML-V0402-ProcessSegment.xsd• B2MML-V0402-ProductionDefinition.xsd• B2MML-V0402-ProductionCapability.xsd• B2MML-V0402-ProductionPerformance.xsd• B2MML-V0402-ProductionSchedule.xsd• B2MML-V0402-Extensions.xsd• B2MML-V0402-CoreComponents.xsd• B2MML-V0402-ConfirmBOD.xsd• B2MML-V0402-TransactionProfile.xsd

B2MML (Business to Manufacturing Markup Language):

ISA-95 Implemented as XML Schema

B2MML-V0501 (2011):Added Operations objects include:

• OperationsCapability• OperationsDefinition• OperationsPerformance• OperationsSchedule

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ISA-95 Part 3: Mfg. Operations Management (MOM)

34

Business Planning & LogisticsPlant Production Scheduling,Operational Management, etc

Level 4

Level 3


Level 4

Level 3

BatchControl

DiscreteControl

ContinuousControl

Levels2,1,0

BatchControl

DiscreteControl

ContinuousControl

Levels2,1,0

Datacollection

Executionmanagement

Resourcemanagement

Dispatching

Tracking

Detailedscheduling

Definitionmanagement

Performanceanalysis

Datacollection

Executionmanagement

Resourcemanagement

Dispatching

Tracking

Detailedscheduling


Performanceanalysis


Level 4

Level 3


Level 4

Level 3

BatchControl

DiscreteControl

ContinuousControl

Levels2,1,0

BatchControl

DiscreteControl

ContinuousControl

Levels2,1,0

Datacollection

Executionmanagement

Resourcemanagement

Dispatching

Tracking

Detailedscheduling


Performanceanalysis

Datacollection

Executionmanagement

Resourcemanagement

Dispatching

Tracking

Detailedscheduling


Performanceanalysis

MOM Functionality

From ANSI/ISA-95.00.03-2007 Copyright © 2010 ISA. Used with permission. www.isa.org


ProductionResourceManagement

ProductionCapability

ProductAnalysis

ProductionDataCollection

ProductionExecution

ProductionDispatching

ProductionTracking

ProductionPerformance

DetailedProductionScheduling

ProductionSchedule

Level 2 Process Control / Plant Work

ProductDefinitionManagement

ProductDefinition

ProductionAnalysis

ProcessAnalysis

Three Types of MOM Analytics

for KPIs

Correlate Analytics to Construct Metrics and Complete Production Genealogy

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Metrics Categories

From ANSI/ISA-95.00.03-2007 Copyright © 2010 ISA. Used with permission. www.isa.org


MaintenanceProduction Quality Inventory

Productiondata

collection

Productionexecution

management

Productionresource

management

Productiondispatching

Productiontracking

Productionperformance

Detailedproductionscheduling

Productionschedule

Productdefinition

management

Productionperformance

analysis

Productioncapability

Productdefinition

Maintenanceresource

management

Maintenanceresponse

Detailedmaintenancescheduling

Maintenancerequest

Maintenancedefinition

management

Maintenancecapability

Maintenanceanalysis

Maintenancedefinitions

Maintenancedata

collection

Maintenanceexecution

management

Maintenancedispatching

Maintenancetracking

Inventoryresource

management

Inventoryresponse

Detailedinventoryscheduling

Inventoryrequest

Inventorydefinition

management

Inventoryanalysis

Inventorycapability

Inventorydefinitions

Inventorydata

collectionInventoryexecution

management

Inventorydispatching

Inventorytracking

Qualityanalysis

Qualitytest resourcemanagement

Quality testresponse

Detailedquality testscheduling

Quality testrequest

Qualitydefinition

management

Quality testcapability

Qualitydefinitions

Qualitytest datacollection

Quality testexecution

management

Quality testdispatching

Quality testtracking

Level 2 Process Control

Production Operations Depends on Operations Response • Shaded elements define information flows within Level 3 areas to

support Production • Some information may flow to other Level 4 systems


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Knowledge is a Key Enabler of the Knowledge Worker and Supports Problem Solving and Troubleshooting

Information

Understanding

Knowledge

Structure DataUnderstanding Relationships

Understanding Patterns

Understanding Principles

UNDERSTANDING

CO

NTE

XT

IND

EP

EN

DE

NC

E

Knowledge Provides Greater Understanding

37


Business Alignment: Step By Step ApproachA business driven, aligned approach: MES/MOM is Primary Continous Improvement Enabler

Status quo

Ambition

Project 1

Project 2

© 2010 Atos Origin

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Conclusion

• Successful enterprise-wide manufacturing information and analytics systems require a consistent organization and governance of data

• Focus on plant agility and excellence simultaneouslythrough SCALABLE Continuous Improvement− Real-time architecture uses configurable, model-based applications

− Common (reusable) components for business and operations processes

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Question and Answer

Charlie GiffordPresident 21st Century Manufacturing Solutions [email protected]


B2MML: Business to Manufacturing Markup Language • XML-based implementation of ISA-95 standard • Developed by WBF's XML Working Group• XML schemas based upon ANSI/ISA-95 family of standards • Use WWW Consortium’s XML Schema language (XSD)• Used to integrate ERP and SCM systems with MOM systems• Updated B2MML includes Operations elements in New Part 2• IBM, SAP, and Microsoft endorsed• Formal way to document information and agreements

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organizing data to enable enterprise-wide manufacturing intelligence

Technology

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