Achieving Optimum Performance Through Next Generation Manufacturing Concepts

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Achieving Optimum Performance Through Next
Generation Manufacturing Concepts

• Andy Chatha
• President
• ARC Advisory Group
• achatha_at_arcweb.com

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Key Next Generation Manufacturing Concepts

• Common Plant Information Model
• DOM Performance Optimization Concept
• Digital Manufacturing
• Standards-based Interoperability
• Empowered Knowledge Workers
• Global Role-based Visibility
• Synchronized Supply Chain
• Real-time Performance Management (RPM)

Maturing Technology is the Enabler for these NGM
Concepts
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The Plant Performance Equation
Plant Performance is determined by three key
factors
The Right Capability
High Availability
Optimal Utilization
Optimum Performance
X
X

• Product Range Flexibility
• Quality
• Unit Cost
• Compliance

• Most Profitable Product Focus
• Optimally Scheduled
• Maximum Prime Yield

• Always ready when planned
• Few Operating Disruptions
• Minimal Downtime for Service

• Customer Satisfaction
• Profit / ROA
• EHS

Optimum Performance is Achieved by Maximizing
Performance in Each Factor AND Their Aggregate
Effect!
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Design, Operate, Maintain Processes are Highly
Interdependent
DOM Interdependency and Complexity Demand
Interoperability and Collaboration at all Levels
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Unique Processes, Tools and Data Models Create
Islands of Activity
Operators Island
Different Cultures and Languages Limit Interest
in Cooperation and the Ability to Work Together!
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Growing Outsourcing is Turning Islands into
Archipelagos!
Maintainers Archipelago
Builders Archipelago
Operators Archipelago
Designers Archipelago
Improvers Archipelago
Archipelagos share traditions and a common
language, but they still have different local
dialects!
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Benefits Justify Building All Bridges
Maintainers Archipelago
Builders Archipelago
Operators Archipelago
Designers Archipelago
Improvers Archipelago
Costs of collaboration increase with cultural and
language distances, while mutual benefits are
harder to see !
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ARCs Design, Operate and Maintain Performance
Optimization Concept
Operate
OptimumPerformance
Design
Maintain
Design and Maintain Provide the Foundation for
Optimum Performance!
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Digital Manufacturing Promises to Closely Couple
Product Design with the Mfg Process

• Digital Manufacturing Tools Provide
• Manufacturing Process Design Validation through
  Powerful Simulation and Optimization Tools
• Virtual Factory Design for Production Line,
  Workcells, and Machines
• Assembly Definition and Sequencing
• Integration of Production Simulation with
  Automation Systems
• Work Instructions Reports

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Digital Manufacturing Value Proposition

• Shorten development time for Process Design and
  Validation
• Improve Quality by verifying the production
  process
• Reduce prototypes and physical mockups with
  digital simulations
• Improve collaboration with suppliers by providing
  early access to product process information
• Improve concurrent design methods by linking
  product design and manufacturing engineering
• Shorten new product launch cycle

Digital Manufacturing Tools are the Key to
Flexible Factory of the Future
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The Integration Challenge

• There are many different approaches
• Mostly through proprietary interfaces and
  connectors
• Few standards are used
• Initial investment is generally very high
• Can take months or years to implement
• Not easy to change for ongoing improvement
• System complexity is increasing
• Generally not aligned with business needs
• Technology is continuing to rapidly change

Most Plants Continue to Operate as Islands
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What Is Standards-Based Interoperability?

• The ability of applications and systems to share
  information and exchange services with each other
  using Industry Standards

SynchronizeInformation
Application A
Application B
Orchestrate Processes
DistributeAlerts Events
ARC IOp Vision is much broader than Integration
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Why Standards-based Interoperability?

• Short Term Benefits
• Reduces the cost
• Increases speed
• Reduces risk
• Evolution to Flexible Systems
• Re-usable services
• Information, analytics, knowledge,
• Role-based tools
• Fast process changes, optimization,
• Change management
• Security, monitoring, optimization,

Real-time Performance
Flexibility
Speed
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A Simplified Manufacturing IOp Framework
Application B
Framework Adapter (FA)
Manufacturing Interoperability Framework (MIF)
Fill-in the Blanks
Framework Adapter (FA)
Application A
Requires Industry Agreement to be Effective
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Process P2B Interoperability Initiative Progress
Business Applications
Framework Adapter (FA)
Manufacturing Interoperability Framework (MIF)
Framework Adapter (FA)
Production Applications
ISA-95 B2MML Schemas were developed by WBF
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Discrete P2B Interoperability Initiative Progress
Business Applications
Framework Adapter (FA)
Manufacturing Interoperability Framework (MIF)
Framework Adapter (FA)
Production Applications
ISA95 and OAGi have announced their intent to
merge their standards activities
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P2B Interoperability is Just The Beginning
Enterprise Operations
Collaborative Manufacturing Management (CMM) Model
Business
Support
Business
Product Asset Lifecycle
P2B
Customers
Suppliers
Standards OAGi ISA
Value Chain
Design
Production
Production
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Interoperability Enables Optimum Performance
Business
IOp
Production
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Make Your People A Top Priority

• Most companies investment strategy has been
  focused on physical assets, not human assets
• Most people are less effective because they work
  in information islands
• Most people dont have the right analytical
  collaboration tools
• Many senior people are retiring taking expertise
  with them
• You may lose expertise thru Outsourcing

You Need to Empower All Your People, Not a
Privileged Few
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A Knowledge Worker

• Is an Information Empowered Worker
• Has access to powerful analytical collaboration
  tools
• Collaborates with others internally with
  partners
• Well trained in company business processes to
  make quick decisions
• Can see the direct impact of his/her actions on
  companys profitability

A KW Constantly Strives to Improve Performance
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Empower Your People With KM

• What is Knowledge Mgmt?
• Doing the right things, not just doing things
  right
• Delivering the right info to the right people at
  the right time
• Process of knowledge creation, sharing renewal
• Capturing the experience expertise of your
  people
• Process of taking actions based on data,
  intuition, experience

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Value Chain SynchronizationRequires Integration,
Interoperability, Standards
ARCs CMM Collaborative Manufacturing Management
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Todays Business Environment Demands RPM
Performance is monitored in real-time
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Budgeting Process is Too Slow For Control
Vision Strategy
Annual Budgeting Process Creates Fixed
Performance Targets
Set Targets Align Rewards Agree on Action
Plan Allocate Resources Set Collaboration Rules
Monthly Feedback
Measurement Control
Budget does not create Collaborative Culture
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Budgeting vs RPM Business Strategy
Item Budget RPM Targets Fixed Dynamic,
Flexible Rewards Based on fixed targets Based on
dynamic targets Action Plan Agreed in
advance Empowered local teams Resources Allocated
in advance Allocated as needed Collaboration By
the Rules Driven by customer needs Performance Mon
itored monthly Monitored in real-time
RPM Helps You Achieve Optimum Performance
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NGM Concepts Can Help You Achieve Optimum
Performance
Maximum Impact
Consistent Processes
Compatible Tools
Complimentary Data Models
Interoperability Amplifies The Impact of All
Improvement Efforts !
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ARC Business Improvement Concepts
Performance
Improvement
Strategy
Real-time Performance Management
Collaborative Manufacturing Management
Operational Excellence
Adopt ARC Concepts to Drive Performance
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Thank You
For more information, contact the author at
achatha_at_arcweb.com or visit our website
at www.arcweb.com
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Acronyms Used in This Presentation

• NGM Next Generation Manufacturing
• DOM Design, Operate, Maintain
• IOp Interoperability
• OpX Operational Excellence
• P2B Production to Business
• SOx Sarbanes Oxley Regulations
• RPM Real-time Performance Management
• KPI Key Performance Indicators
• KPM Key Performance Measures
• CMM Collaborative Mfg Management
• BPM Business Process Management
• ERP Enterprise Resource Planning
• SCM Supply Chain Management
• EAM Enterprise Asset Management

A complete list is available on ARCs Homepage
ARCweb.com
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Acronyms Used in This Presentation

• KW Knowledge Worker
• KM Knowledge Mgmt
• CPM Collaborative Production Management
• MES Manufacturing Execution System
• CAS Collaborative Automation Systems
• CPAS Collaborative Process Automation Systems
• CDAS Collaborative Discrete Automation Systems
• HMI Human Machine Interface
• DCS Distributed Control Systems
• PLC Programmable Controllers
• RFID Radio Frequency Identification
• OPC Ole for Process Control
• OMAC Open Modular Architecture Controller

A complete list is available on ARCs Homepage
ARCweb.com