This document discusses monitoring and governance of Dynamic Manufacturing Networks (DMNs). It describes DMNs as demand-driven alliances among manufacturing companies for mutual benefit. Effective monitoring and governance of DMNs is challenging due to their distributed nature. The document outlines a methodology for DMN monitoring and governance including real-time data collection, operational governance, performance measurement, and evaluation/reformation. It also describes the IMAGINE project's approach for comprehensive DMN management through an integrated ICT platform.

1. DYNAMIC
MANUFACTURING
NETWORKS MONITORING
AND GOVERNANCE
Panagiotis Kokkinakos - pkokkinakos@epu.ntua.gr
Ourania Markaki
Dimitrios Panopoulos
Sotirios Koussouris
Dimitrios Askounis
Decision Support Systems Laboratory
National Technical University of Athens

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Introduction
The global economic crisis leads the industrial/manufacturing
towards:
• minimizing costs
• Collaborate closer with partners
• Seek new business opportunities
while, at the same time:
• increasing the effectiveness of external and internal procedures
• increasing customer’s satisfaction through high quality
products/services
Formation of Dynamic Manufacturing Networks (DMNs)

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What is a DMN?
• The natural evolution of typical supply chains
• Dynamic alliances among manufacturing companies for gaining
mutual benefits
• Reduce costs
• Reduce time-to-market
• Increase flexibility
• Gaining access to new markets and resources
• Utilizing collective intelligence
• Demand-driven (yet long-lasting) formation
• Depending on the context, might also be referred as Virtual
Enterprises

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DMN Monitoring & Governance
Network Execution
Network Analysis
Network Design Monitoring and
and Configuration
Governance
• No mature methodologies and tools fully appropriate for
managing and monitoring DMNs
• Lack of approaches and tools specifically developed for
dynamic networks
• Distributed, independent, and heterogeneous members
• Network Performance Evaluation and DMN Reformation

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Monitoring, Governance and
Reconfiguration. Why?
Nissan has announced that as a
consequence of Friday's devastating
9.0 earthquake and Tsunami in Japan
production at all of its factories will
remain halted until it has fully
assessed the damage sustained to its
factories, equipment and parts
suppliers. (source)
The natural disasters that struck Japan's
northeast continued to wreak havoc on
the nation's economy on Tuesday, with
two of the country's largest carmakers
announcing further delays in resumption
of production at their plants because of
continued disruption in parts supplies.
(source)

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DMN Monitoring & Governance
Sub-Phases
Network
Network Analysis
Execution
and Network Design
Monitoring and
Configuration
Governance
Network Network
Real Time Data
Operational Performance Performance
Collection and
Level DMN Measurement Evaluation and
Network
Governance and KPIs DMN
Monitoring
Monitoring Reconfiguration

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Real Time Data Collection and Network
Monitoring (1/2)
• The architecture of a virtual enterprise network basically consists of three
layers:
• network/platform layer (data formats, communication protocols)
• service layer (reusable building blocks and runtime services)
• application layer (information searching, collaborative engineering, electronic
commerce)
• Data Collection and Monitoring should be based on real time
collection, and rapid exchange and processing of information
• Numerous technologies and approaches have been recognized in order
to support the aforementioned structure
• Complex event processing (CEP)
• Agent-based models approach
• Sequential Probability Ratio Test (SPRT)
• Artificial neural networks (ANNs)

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Real Time Data Collection and Network
Monitoring (2/2)
Advances in network technology, data collection, storage and
processing are rapidly emerging
But:
• At the moment high processing times, as well as the great volume
of data, constitute barriers towards an effective and stable solution
• At the same time, Systems Interoperability is another barrier.
• Standards are the current solution! Examples:
• Product Data Exchange Specification (PDES)
• Standard for Exchange of Product (STEP)
• Initial Graphic Exchange Specification (IGES)

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Operational Level DMN Governance (1/2)
• Deals with data processing and the decisions that should be taken
and communicated in the responsible network points for easing
out any abnormalities identified
• Common mistake: the perception that there is direct relation of the
behavior and the management activities of virtual organizations to
these single organizations
• Possibly not optimal, ways to coordinate the network
• Need of control and management actions in real time (or close to)

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Operational Level DMN Governance (2/2)
• Important interoperability constraint: inability of systems to directly
use these standards and build touch points for interacting directly
with the other systems
• Addressed by the introduction of the Enterprise Service Bus (ESB)
concept!
• brings together the PLM and ERP capabilities of systems
• allows governing the network
• Adapter modules responsible for providing a layer of abstraction
between the servers and the component business or
manufacturing systems (nodes) in the ESB (e.g., ERP, cPLM)

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Network Performance Measurement and
KPIs Monitoring
• Measuring and evaluating the effectiveness of the network
• not only in operational but also in conceptual and strategic level
• Traditional approaches (e.g. Six Sigma, EFQM, SCOR) orientated
to single processes or functions
• not so appropriate for evaluation in strategic level!
• Challenge: transfer highly complex real-world processes to a
simplifying processes model, to derive performance information
from the model, and to transfer these results back to the real world
• Measurement and monitoring of “combined” KPIs is the key for
evaluating a DMN’s performance and taking strategic decisions for
altering the network’s structure and/or operation

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Network Performance Evaluation and
DMN Reformation (1/2)
• Involves considerably the human aspect and relies to a large
extent on management experiences previously acquired
• “Small and corrective” decisions towards the network’s operation
optimization
• or even “larger and structural” changes
• fed back to the DMN “Network Configuration” phase
• one of the possible stages in the DMN lifecycle is the DMN dissolution

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Network Performance Evaluation and
DMN Reformation (2/2)
• The DMN inheritance management
• improving their preparedness and thus supporting the faster
creation of DMNs
• making DMNs more effective and reliable in terms of both time and
costs and improving or ensuring quality
• decreasing DMN management efforts through increased trust and
strengthened relationships
• supporting decision-making and tracking of DMN problems or
deviations
• enabling higher chances of success in competitive
bidding, because of customer knowledge and closer customer
relationships

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The IMAGINE Project Approach
• Development and delivery of a novel comprehensive methodology and the
respective platform for effective end-to-end management of DMNs
• plug and produce approach, based on community, collaboration, self-
organization and openness
• technical back-bone to support the proposed life cycle and integrate virtually
all the aspects of the virtual manufacturing network and processes
• The IMAGINE framework relies on end-to-end integrated ICT solutions that
effectively enable the management of networked manufacturing supply chains
• The IMAGINE Lifecycle
• Network Analysis and Configuration
• Network Design
• Network Execution Management and Monitoring
www.imagine-futurefactory.eu
Twitter: @ImagineFF

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Conclusions
• No matter how efficient and effective a DMN can be, the monitoring and
governance of such a multi-disciplinary formation is a real challenge
• poor performance in management and monitoring could easily cost huge
amounts of money and time
• Analyzing process efficiency and effectiveness and aligning processes
with enterprise goals and objectives needs
• reacting to critical business events
• correlating event data
• updating the KPIs
• A novel, integrated solution-focused manufacturing environment that
involves global supply chain management, product-service linkage and
management of distributed manufacturing assets is needed

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THANK YOU FOR YOUR ATTENTION!
Panagiotis Kokkinakos
pkokkinakos@epu.ntua.gr
Decision Support Systems Laboratory
National Technical University of Athens