Global trends and solutions in manufacturing operations management
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Global manufacturing trends are driving changes in manufacturing execution systems (MES) and operations management (OM). Traditional MES applications and older IT infrastructures are limiting performance. Now manufacturers are investing more in plant floor IT like OM, an $8 billion market. Today's dynamic environment values information and synchronization across functions like design, engineering, supply chain, production, and customers. OM provides real-time visibility, analytics, connectivity, and orchestration to help manufacturers improve performance metrics like flexibility, quality, and productivity. An effective OM solution has three pillars - infrastructure, connectivity, and functionality - to support business needs across the operations.
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Global trends and solutions in manufacturing operations management
- 1. Global Manufacturing Trends and Solutions in MES and Operations Management Greg Gorbach Vice President i id ARC Advisory Group ggorbach@arcweb.com
- 2. Today’s Business Requirements Drive Change & Determine Real-time Enterprise Needs Globalization Rapid Product Innovation Process Innovation Collaboration Synchronization S h i ti Lean Continuous Improvement Compliance Risk Management Performance Flexibility y Pull-based Production Etc. 2 © ARC Advisory Group
- 3. Manufacturing Systems Have Not Kept Pace Older Applications and IT Infrastructure Limit Performance Manufacturers have not invested enough Source: ARC Advisory Group in plant floor IT 3 © ARC Advisory Group
- 4. Manufacturers Are Now Investing in OM OM is an $8 Billion Market and Growing $ g 4 © ARC Advisory Group
- 5. Today’s Dynamic, Demanding Environment Places a Premium on Information and Synchronization Industry Classic MES New Requirements Semiconductor Complex Routing, Resource Visibility, Analytics/Decision Support, Outsourced Allocation, Quality Allocation Quality, WIP Tracking, Tracking Manufacturing, Manufacturing Business System Synchronization, Synchronization etc. KPIs, Performance, Change Mgmt, Security, Electronic Manufacturing History etc. Pharmaceutical Compliance, Quality (Direct and Visibility, Analytics/Decision Support, Outsourced Enforce Production), Electronic Manufacturing, Business System Synchronization, Batch Records, Electronic Performance, Change Mgmt, Security, Electronic Signature, etc. Signature etc Manufacturing History etc Continuous Collection of Apps: Optimization, Visibility, Analytics/Decision Support, Outsourced Process Historian, Advanced Process Manufacturing, Business System Synchronization, Control, etc. Performance, Change Mgmt, Security, Electronic Manufacturing History, etc A&D (Complex CAPP, Quality, Resource Allocation Visibility, Analytics/Decision Support, Outsourced Discrete) (Operators, Workstations, Tooling, Manufacturing, Supplier Quality Mgmt, Change etc.) WIP Tracking, Traceability, Management, Security, Electronic Manufacturing Work Instructions, NCR Resolution, History, etc etc. Automotive Quality, Resource Allocation Visibility, Analytics/Decision Support, Orchestrate Supplier (Operators, Workstations, Tooling, Inventory Replenishment by Operation, etc.) Work Instructions, Just-in Traceability and Recall Management, Business Sequence Manufacturing/ Packing/ System Synchronization, Performance, Change Shipping, Error-proof Packout and Mgmt, Security, Electronic Manufacturing History, Labeling, etc. etc Automotive OEM Visual Alarms, Stack Lights, and Visibility, Outsourced Manufacturing, Global Marquees, Marquees Line Control & Manufacturing, Manufacturing Business System Synchronization, Synchronization Broadcasting, Supplier Component Performance, Change Mgmt, Security, Electronic Sequencing, etc. Manufacturing History, Traceability and Genealogy, etc 5 © ARC Advisory Group
- 6. Discrete Manufacturing Dynamics Require a Collaborative Manufacturing Approach q g pp Business Systems Components & Supplier Materials Network Product Support nterprise Design, Specifications, Manufacturing & Mfg Process Finished Operations En Goods Customers Design Engineering Distribution 6 © ARC Advisory Group
- 7. Today’s Market Dynamics Demand Speed OM Enables Real-time Performance Improvement p Manufacturing ARC ‘s Plant Collaborative Manufacturing Internal Management Business Model ERP Manufacturing Plant External SRM CRM nterprise Customers Contract Suppliers Manufacturer PLM Logistics OM En Automation Distributor Production Logistics Provider Retailer Assembly Plant Retailer 7 © ARC Advisory Group
- 8. CMM Applications Map Let’s Get on the Same Page re: MES and OM Business ERP HR FIN SCM CRM Suppliers Customers Enterprise Infrastructure CAD Gen 4 Operations Infrastructure TMS (SOA) CAM MPM MI T&A Sched WMS Quality etc. Operations Gen 3 Lean/CI MES EAM Management (Integrated Apps, HMI Infrastructure, & Connectivity) Equipment & E i MES Gen 1 Automation (Standalone, Industry- Production MES Gen 2 (Collection of Applications) Specific Application) 8 © ARC Advisory Group
- 9. Operations Management Definition: Operations Management is the management of the people, business processes, technology and capital assets involved in: • Procuring and receiving raw materials and components - Especially as it relates to obtaining, storing, and moving necessary materials/components in a timely manner and of suitable quality to support efficient production • Implementing product designs, specifications, formulations, or recipes by manufacturing products - Including manufacturing process planning and validation • Distributing these products to customers - Especially as it relates to sequencing and in-house logistics in house • And for some products, supporting them through their End- of-Life Let Business Requirements Drive Technology Solutions 9 © ARC Advisory Group
- 10. CMM Model for Production Excellence Engineering, OM, and Resources Working Together g g, , g g Enterprise/Business Operations Inbound Customer Supply Chain Relationship & Logistics OM IT Infrastructure Operations Operations MManagement t Management OM Functionality Product Systems (Apps or Services) Outbound Design Supply Chain & Logistics Manufacturing Production Automation Engineering Equipment & Automation Systems Collaborative Production Environment for Highly Flexible Manufacturing 10 © ARC Advisory Group
- 11. Three Pillars of OM Solutions Support Business Needs with Operations-Wide Performance pp p Infrastructure Connectivity Functionality • Real-time Plant Support pp • Enterprise p • Plan Production • Technology Platform • Design & Engineering • Execute Production • Applications Platform • Operations, Controls, & • Track Product Data • Business Processes Equipment • Inform & Analyze • Security • Supply Chain & External • Enforce Quality • Role-based Portals Operations • Move & Store Inventoryy • etc. • Product Support Ops d • Manage Assets • Support Product thru EOL Operations Management Source: ARC Advisory Group 12 © ARC Advisory Group
- 12. Pillar 1: OM IT Infrastructure Platforms, Processes, Portals, etc. , , , Infrastructure • Real-time Plant Support Real time • Technology Platform • Applications Platform • Business Processes • Security •R l b Role-based P t l d Portals • etc. 13 © ARC Advisory Group
- 13. Multiple Platforms Need To Collaborate Enterprise Technology g Platform Content FIN ERP EAM SCM CRM Enterprise Apps Platform Custom Integration Eng. & Design Apps Operations Apps Platform Platform Drawings Equipment Data WMS PDM CPM/Automation Specs TMS Models PAM P&IDs LIMS Equipment Technology Technology Eng & Design Platform Operations Platform 14 © ARC Advisory Group
- 14. Global Manufacturing Operations Enterprise Infrastructure Operations Infrastructure Design/Engineering Infrastructure es g / g ee g as uc u e = Manufacturing Node = Design Node 15 © ARC Advisory Group
- 15. Pillar 2: Connectivity Required for Performance q o o S Synchronization h i i Enterprise of Manufacturing with other entities Orchestration of B i f Business Processes P Design & Product Engineering Support Response Operations to dynamic demands Connects with: Collaboration among all required parties Supply Operations Alignment Chain & Controls & of goals throughout the Enterprise External Equipment Operations Visibility of Manufacturing Information Source: ARC Advisory Group 16 © ARC Advisory Group
- 16. Typical Integration Approaches 1. Enterprise Communications Bus Select Technology Platform Manage Interfaces, etc. Platform, Interfaces etc 2. Standardize Infrastructure Tools for All Integration Projects g j 3. Operations Management Supplier Solution Align with Operations Management Supplier’s Chosen Technology T h l 4. Enterprise Supplier Solution Align with Enterprise Supplier s Chosen Technology Supplier’s 17 © ARC Advisory Group
- 17. Pillar 3: OM Functions/Processes Use Detailed, Industry-Specific List for System Selection Processes Examples •Schedule Plan Production •Processes Processes •Data and Test Needs •Enforce Processes Execute Production •Guide Operators •Collect Data •WIP Tracking Track Product Data •Electronic History •Traceability & Genealogy •Role-based Views Inform & Analyze •Drill-down & Analytics •Event-triggered Notification •CAPA Enforce Quality •NCM •Supplier Quality •WMS Move & Store Inventory •Line-side •RFID •Maintenance & Repair Manage Assets •Work Orders •Synchronize w/Operations •RMA Support Product thru EOL S d h O •MRO •Recovery & Recycling 24 © ARC Advisory Group
- 18. OM Functional Requirements 3 of 8 Categories Partially Illustrated Here g y Category Function Description Production Schedule Management Develop and maintain short-term detailed schedule. Coordinate with Planning input from ERP schedule or Order Management system Production Sequence Build to Order Support 100 or more operations and multiple production lines Planning building products according to the OEM sequenced build requirement. Develop … Production Define In-Process Data Data Collection Templates shall be configurable and allow users to Planning Collection specify a list of rules and data items to be collected at a process step: User defined … Production Define Create and maintain workflows that define and enforce complex Planning Workflows/Process p procedures, standard processes, rework paths, Material Review , p , p , Category Enforcement Function Board (MRB) procedures … Description Production Define Production Sequence Build to Order Support 100 or more operations and multiple production lines Create process plans (similar to ERP routings, but much more Execution Workflows/Process Planning Execution building products according to the OEM sequenced build detailed) consisting of: … Enforcement requirement... Production Workflow Any sequence of the following actions occur within a defined process Execution Management/Process step: • Enter Step … Enforcement Production Workflow Ensure that all routings, assembly instructions, rework, inspection Execution Management/Process and test operations, data collection, approval/buyoff signatures, Enforcement material movements,… Production Start Processing Provide the ability to induct a lot and have it automatically go to a Category Execution Function Verification Description preparation process (e.g cleaning or inspection). This should be … Product DataEnd WIP Tracking Production Processing At or near work-in-processof y lot, batch, on serial the system in Track the completion by p processing or a lot, number or must be lot Tracking Execution Verification able to check that: The correct components and consumed... combination, across all production stepswere processes and locations, including … Product Data Sequence Build to Order Collect and associate process variable information by operation and Tracking sequence number Product Data Serialized Component Support OEM requirement for complete part traceability and Tracking Tracking, Genealogy, and genealogy, all the way from material suppliers through each Traceability manufacturing operation in … f t i ti i Product Data Genealogy Trace from assembly lot numbers or serial numbers to all of the Tracking component and sub-assembly lots that were used to construct those assemblies, and… Product Data Bulk Issue Transactions When MRP bulk-issues material to the floor and does not track Tracking 25 consumption, the Operations Management system should not … © ARC Advisory Group
- 19. OM Functional Requirements Must Include Integration & Performance Requirements g q Category Function Description Integration - New Product Define processes for prototype lots and collect detailed data for Product Introduction analysis. Support multiple prototyping iterations. Synchronize … Lifecycle Integration - Post-production Provide a mechanism to feed post-production quality/defect data back Product Category Product Function Support Description into the product development cycle (design engineering and … LifecycleIntegration - Realtime Data - Integrate to plant equipment, systems, and devices as necessary to Operations, Machine Integration, gather or share data and information required to coordinate the … Controls, C t l & Barcode, RF, M B d RF Manual l Equipment Integration - Interface to Plant Provide connectors/adapters to enable the collection of data in near- Operations, Applications and real-time from plant applications and systems such as HMI, … Category Controls, & SystemsFunction Description EquipmentIntegration - Integration to Receive order status and quality information from outsource External Outsourced manufacturing operations and independent supplier operations to Operations and Manufacturing ensure … Supply Chain Operations or Supplier Manufacturing Operations Integration - Integration to Customer Provide real-time production status information to customer systems. ExternalCategory Function Quality, Supplier Description Provide component/assembly identification information to customers Integration - Real-time Visibility Operations and Management, ERP, and … Provide portlets to support real-time graphical, tabular, and drill-down Enterprise Supply Chain Operations Systems display of manufacturing data in dashboards or portals such as … Category Integration - Function Scenario Integration Description Provide a means to compose, populate, generate, and exchange System Enterprise System Start-up, Assess and evaluate the system in detail. Document evidence that the messages with ERP and other business systems, based on P2B Performance Validation, & Change standards such operates and behaves in accordance with specifications … system as … Mgmt System System Design and Design and create routings, workflows, etc. based on digital virtual Performance Configuration: Virtual manufacturing model. Automatically generate OM system … y OM System Configuration (FUTURE) 26 © ARC Advisory Group
- 20. Thank You! 27 © ARC Advisory Group