Organizing Data to Enable Enterprise-wide Manufacturing Intelligence

Webinar 1:
Organizing Data to
Enable Enterprise-wide
Manufacturing Intelligence

Thursday September 29, 2011
11 AM PDT, 2PM EDT

©2011 21CMS All Rights Reserved

Standards Liaison
for Manufacturing Operations
Charlie 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

3

21st Century Manufacturing Issues

• Diversity
• RAPID Change
• Competitive Disadvantage!

4

Business Value of Structured
Manufacturing Data
Innovative Manufacturers 3M IBM
Apply Standards-based BP InBev
Applications and Methods Cargill Masterfoods
Chevron MillerCoors
Dow Nestle
DuPont P&G
Eli Lilly Pfizer
GM Wrigley

5


Business Value of Structured
Manufacturing Data
• 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

6

21st Century Manufacturing is
Lean & Flexible Supply Chains
Aligning Production Capabilities to 21st Century Challenges
Mandates Fundamental Change…
20th Century Manufacturing Customers

Suppliers Manufacturers Dist Retailers

Supplier Logistics Customer
Exchanges Exchanges Exchanges

Virtual Mfg.

Logistics
CMs
Providers Copyright @2007 Gartner Group:
All rights reserved.

7

Business Evolves towards Configurable
Demand-Driven Supply Chains
Critical Need:
Production
Capability &
Alignment Customer
DC
Supplier
Plant Customer
DC
Supplier
Customer
Plant DC
Supplier Customer
Plant DC
Supplier Customer
DC
Customer
21st Century Manufacturing Competative Enablers:
Copyright @2007 Gartner Group:
MOM Adaptability & Real-Time Visibility All rights reserved.

8

Required Agility Forces Change
Corp Suppliers
Systems

Re
Broadcast
Sequence
Data
Collection
Order Scheduling Logistics
Mgmt
WIP
Quality eKanban
Track

ANDON
Asset Production
Error Monitoring
Mgmt. SCADA
Proof

9

Innovate
Operations Process
Effectiveness


Value
Innovation
Collaboration M2.0

11

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..
Increase Market Share
Larger benefits from
Reduce Increase Volume and /or And/Or Pursue
continuous Operating Margins At Same Cost New Markets
improvement: Costs
Supports collaboration
MOM is necessary to Supply chain visibility
achieve this level 10X Average payback Platform for continuous
improvement
$$ Value of Benefits

12 Months on
1X Benefits Platform for Continuous
Improvement
3X
Faster NPI cycle: shorten innovation innovation
Faster NPI cycle – shorten TTM for
TTM for
MOM marketed as competitive tool
Customer audit requirements: traceability and genealogy
MES marketed as competitive tool traceability and
Customer audit requirements:
genealogy manufacturing
Promotes flow

1X Lower WIP and FGI Reduce indirect labor costs
Reduce waste/scrap/materials Shorten cycle/flow time
Reduce cost of regulatory compliance
Reduce rework Improve quality/ reduce process & product
Reduce rework variability
variability
Reduce maintenance costs
Reduce maintenance costs Reduce cost of regulatory compliance
MOM Systems 3 - 12 mos. 12 to 36 mos.
12 to 36 mos. 3 years +
justified on cost
Project payback ranges 6 to 24 months
reduction Source: AMR Research Report: MES Provides Long-Term Revenue and Market Benefits
Beyond Easy-to-Quantify Operational Cost Savings

13

Manufacturing Operations Contribution
• Importance of Perfect
• Right product Order Performance
• Right Quality Demand
• 15% less inventory
Forecast • 17% stronger perfect
• Right place
order fulfillment
• Right time • 35% shorter cash-to-
Perfect SCM
• Right profit margin Order Cost cash cycle times
• 1/10 of the stockouts
Cash-to-Cash
Inventory of their peers
AP Total AR
Supplier Supplier RM Purch Dir Mtl
Quality On-Time Inv Costs Costs

Production Order Perfect
Cost Plant WIP + FG
Sched Cycle Order
Detail Utilization Inventory
Variance Time Detail

Enterprise Manufacturing Intelligence
Copyright © 2011 Gartner Group

14

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

Standardize processes across the enterprise
for optimizing manufacturing operations
64% 37% 30%
Standardize measurements of KPIs across
Process enterprise
68% 58% 51%
Standardize processes for response to
adverse events
64% 51% 19%
Copyright @2008 Aberdeen Group, All rights reserved.

16

Manufacturing Intelligence Foundation
CONTEXTUALIZE ANALYZE
Increasing Strategic Value to the Enterprise

COST-BASED
MODELS e.g. Capable/Profitable to Promise VISUALIZE

BUSINESS Perform
RULES To Demand
ORDERS Performance
SPECIFICATIONS
to schedule
MATERIAL
& PRODUCT Overall process
FLOWS performance metrics

Copyright © 2011 Gartner Group
PRODUCTION MODELS,
RECIPES/ BOMS
Correlate of work process data,
& ROUTES equipment data and product data
EQUIPMENT Operating data transformed into asset
& ASSET performance KPIs
INSTRUMENT Large volumes of extremely detailed
production data from multiple back-end
data sources.
DEVICE I/O
TAGS

17

Mfg Data Sophistication Determined by
Mfg Work Process

18

MOM User and Functional Requirements
Define Data Structure for Mfg Intelligence
1. MOM URS: 2. MOM URS: 3. MOM FRS: Open
Open O&M Open O&M O&M Data Definition,
Process Model Information Flows 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

19

Structure Mfg. Master Data vs.
Enterprise Master Data
DEMAND FORECASTING Demand Forecasting

Resource Planning & Enterprise
S&OP PROCESSES Supporting
Allocation Level
details are MDM
MASTER PRODUCTION Master Schedule, added at each
SCHEDULING & RESOURCE Work Orders, BOM, layer as needed
PLANNING General Recipe to support
execution
Bill of Materials, Bill of Process,
SITE SPECIFIC Bill of Equipment, Bill of
RESOURCE PLANNING & Assay/Test, Labor & Skills, Bill of
SCHEDULING Compliance
Master Recipe, Formula Optimization, Scaling
SITE SPECIFIC & Substitutions, Detailed Work Instructions,
ROUTINGS, WORK Detailed Production Schedule, local Labor
DEFINITION/DISPATCH Laws & Regulations
Site Level
Control Recipes, Equipment settings, Maintenance mMDM
SITE SPECIFIC Requirements, Tooling Management, Equipment
EXECUTION Operating Specifications, Calibration, Process
CAPABILITY Parameters, SOPs
(EQUIPMENT &
ASSETS)
Equipment, Operations Personnel, Warehouse, Automation & Controls

20

Mfg
Master
Data
Mgt.

A Recipe
Management
Example:
Master Data
and its mMDM

21

21

Align
Mfg Ops
Master
Site Recipe Product Master Work Master Recipe
Data Definition Definition

Product Related
Definitions

Production Work Batch List
Output from Schedule Schedule
Scheduling

Control Work Control Recipe
Definition
Executable
Elements

Production Work Production Batch Production
Execution Performance Record Record
Results
22

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

23

Collaborative Manufacturing Management
Enterprise Domain
Business

Business Scope FIN
HR ERP
Lifecycle Domain

EAM
APS/ PLM/S
FCS
Suppliers SRM CPS CRM Customers
MOM
MES TMS
BPM GLS Value Chain Domain
PLM/D

APC Logistics

RPO/
PSO
Automation
Collaborative
Infrastructure
Source: ARC Advisory Group
Production

24

ISA-95 Functional Hierarchy Mfg
Operations Domain
Level 4 4 - Establishing the basic plant schedule -
Business Planning production, material use, delivery, and
& Logistics shipping. Determining inventory levels.
Plant Production Scheduling, Time Frame
Operational Management, etc Months, weeks, days, shifts
Interface addressed in
Level 3
ISA-95.01, .02, & .05 standards
3 - Work flow / recipe control to produce the
Domain Manufacturing desired end products. Maintaining
addressed Operations Management records and optimizing the production
in ISA-95.03 Dispatching Production, Detailed Production process.
Scheduling, Reliability Assurance, ... Time Frame
standard Shifts, hours, minutes, seconds

Level 2 2 - Monitoring, supervisory control and
Manufacturing Control automated control of production process
Basic Control, Supervisory Control,
Level 1 Process Sensing, Process Manipulation,… 1 - Sensing the production process,
manipulating the production process

Level 0 Production Process 0 - The physical production process
ANSI/ISA-95.00.03-2010 Copyright © ISA 2011.


Manufacturing Integration Standards
Overview

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

26

Mfg Information Model Evolution:
OpenO&M™ Domain Map
OAGIS, SCOR Level 5+: Inter-Enterprise

OAGIS, SCOR Level 4+: Enterprise
Hybrid
OPC UA

Discrete Process
MIMOSA

ISA-99
ISA-95 Level 3:
OAGIS B2MML Manufacturing Operations
ISA-88

OPC: DA, HDA, A&E Levels 2, 1, 0:
OMAC Machine / Plant Work

FOUNDATION

27

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”
Part 2: Object Attributes”
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)

28

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

Enterprise Information
Plant Production Scheduling,
Operational Management, etc
Production & Product & Production & Production &
Resource
Operations Operations Operations Operations
Information
(Personnel, Capability Definition Schedule Performance
Equipment, Information Information (What to make (What was made
Material, (What is available (How to make and what and what was
Segments) for use) a product) to use) used)

Manufacturing Operations and
Control Information
Area Supervision, Production Planning,
ANSI/ISA-95.00.01-2010
Most Used Reliability, Assurance, etc
Copyright © ISA 2011. Exchanges Today

29

ISA-95: 4x4 Object Models Define
B2M Data Exchanges & Data Models
4 Resource Categories 4 Information Categories
Resources Product/Operations Capability

Product & Operations Product

People Equipment Materials Definition
Time
Production & Operations
Capability

Structure / View Production

Production & Operations Schedule
Process & Operations
Segments
Production & Operations Performance

30

New ISA-95 Versions Support for
Operations User Requirements Structure
Business Logistics Management
Make Material Segment

Common Material Final Material Final Product
Segment Segment Segment

Inventory
Inventory

Inventory

Inventory
Operations
Management Deliver Deliver Deliver

Production
Operations Batch Batch Batch Mix Fill Cap Label Package
Management
Quality
Test Test
Operations
Management
Maintenance
Operations Setup/ Setup’
Management Maintain Maintain

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 needed
2) maintenance status
3) the current state of the equipment

32

B2MML (Business to Manufacturing Markup Language):
ISA-95 Implemented as XML Schema
• B2MML-V0402-Common.xsd B2MML-V0501 (2011):
• B2MML-V0402-Personnel.xsd Added Operations objects
• B2MML-V0402-Equipment.xsd include:
• B2MML-V0402-Material.xsd • OperationsCapability
• B2MML-V0402-Maintenance.xsd • OperationsDefinition
• B2MML-V0402-ProcessSegment.xsd • OperationsPerformance
• B2MML-V0402-ProductionDefinition.xsd • OperationsSchedule
• 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

33

ISA-95 Part 3:
Mfg. Operations Management (MOM)
Level 4
Business Planning & Logistics
Plant Production Scheduling,
Operational Management, etc

Level 3 Detailed
scheduling

Resource
Tracking
management

MOM Functionality Performance
Dispatching
analysis

Definition Data
management collection

Execution
management

Levels
From ANSI/ISA-95.00.03-2007
Copyright © 2010 ISA. Used with
permission. www.isa.org
2,1,0
Batch Continuous Discrete
Control Control Control

34

Correlate Analytics to Construct Metrics
and Complete Production Genealogy
Product Production Production Production
Definition Capability Schedule Performance

Detailed Metrics Categories
Production
Scheduling
Three Types of MOM
Production Production Analytics
Resource Tracking
Management for KPIs
Production Product
Dispatching Analysis
Product Production
Definition Data Production
Management Collection Analysis

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

Level 2 Process Control / Plant Work
35

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

Production Maintenance Quality Inventory
Product Production Production Production Quality Quality test Quality test Quality test
MaintenanceMaintenance MaintenanceMaintenance Inventory Inventory Inventory Inventory
definition capability schedule performance definitions
capability request response
definitions capability request response definitions capability request response

Detailed Detailed
Detailed Detailed
production inventory
maintenance quality test
scheduling scheduling
scheduling scheduling
Production Quality Inventory
Production Maintenance Quality test Inventory
resource Maintenance resource
tracking resource test resource tracking
management tracking tracking management
management management
Production
Production Quality test Quality Inventory Inventory
performance Maintenance Maintenance
dispatching dispatching analysis dispatching analysis
analysis dispatching analysis
Product Production Maintenance Maintenance Quality Quality Inventory Inventory
definition data definition data definition test data definition data
management collection management collection management collection management collection
Quality test Inventory
Production Maintenance
execution execution
execution execution

Level 2 Process Control
ANSI/ISA-95.00.03-2006
Copyright © ISA 2011.

36

Knowledge Provides
Greater Understanding

Understanding
INDEPENDENCE

Understanding Principles
Knowledge
CONTEXT

Understanding Patterns
Information

Understanding Relationships
Structure Data

UNDERSTANDING

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

37

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

Ambition
Project 2

Project 1

Status quo

© 2010 Atos Origin

38

Conclusion

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

• Focus on plant agility and excellence simultaneously
through SCALABLE Continuous Improvement
− Real-time architecture uses configurable, model-based applications
− Common (reusable) components for business and operations processes

39

Question and Answer

Charlie Gifford
President
21st Century Manufacturing Solutions LLC
charlie.gifford@cox.net
208-309-0990


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

41

Organizing Data to Enable Enterprise-wide Manufacturing Intelligence

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