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Charlie Gifford 1Copyright © 2006 WBF. All rights reserved.
Convergence of Business Process Convergence of Business Process Standards for Manufacturing Standards for Manufacturing Simplify MAKE IntegrationSimplify MAKE Integration
THE FORUM FOR AUTOMATION AND MANUFACTURING PROFESSIONALS
Charlie Gifford,Director, Lean Production Management
GE Fanuc
Charlie Gifford 2Copyright © 2006 WBF. All rights reserved.
Today’s AgendaToday’s Agenda
Lean Supply Chain Requirement
ISA95~SCOR Alignment Project Overview
SCOR Overview
ISA-95 Overview
Questions & Answers
Charlie Gifford 3Copyright © 2006 WBF. All rights reserved.
Aligning Mfg. Capabilities to 21st Century Challenges Mandates Change…
Customers
Manufacturers Dist
Supplier Exchanges
Customer Exchanges
LogisticsExchanges
Suppliers
CMs
Retailers
Virtual Mfg.
Logistics Providers
Copyright @2004 AMR Research: All rights reserved.
20th Century Manufacturing
21st Century Manufacturing is ABOUT Lean & Flexible Supply Chains
Charlie Gifford 4Copyright © 2006 WBF. All rights reserved.
Business Evolves into Configurable Demand-Driven Supply Chains
DC
DC
DC
DC
DC
Customer
Customer
Customer
Customer
Customer
CustomerDC – Dist. Channel
Need:ProductionCapability
Supplier
Supplier
Supplier
Supplier
Plant
Plant
Plant
Copyright @2004 AMR Research: All rights reserved.
Charlie Gifford 5Copyright © 2006 WBF. All rights reserved.
Evaluate: Customer Spec + OTD + Configured Production Capability = Profit Margin
Copyright @2004 AMR Research: All rights reserved.
CM
CM
CM
Plant PlantCM
CM
DCsPlant
Plant
Loosely coupled capacity based on profit/value ratio or
compromise between value chain (profit) and
stream (demand)
Plant
Plant
Plant CM
CM
CM
Plant PlantCM
CM
DCsPlant
Plant
Loosely coupled capacity based on profit/value ratio or
compromise between value chain (profit) and
stream (demand)
Plant
Plant
Plant
Plant
Plant
Plant
21st Century Manufacturing Enablers:Flexibility & Real-Time Visibility
Charlie Gifford 6Copyright © 2006 WBF. All rights reserved.
2006 Top Strategic Platform Investments Focus on Mfg Operations!2006 Top Strategic Platform Investments Focus on Mfg Operations!
Production Capability Addressed with IT Investment
Production performance monitoring (yield, cycle times, OEE, etc.)
18
Execution of production orders 11
Shop floor work order/recipe scheduling/sequencing
11
Business process integration with ERP, PLM, and LIMS
10
Asset maintenance and equipment reliability 9
Product quality and compliance management 9
Product and process traceability and genealogy 5
RFID (workflow management) 5
Source: AMR Research 2006 IT Spend Survey
Charlie Gifford 7Copyright © 2006 WBF. All rights reserved.
ISA-95 / SCOR Alignment (Mapping) Project Overview
Purpose• To map the SCOR and ISA-95 framework standards
• Identify Omissions / Duplications• Recommend improvements / Changes to the
respective standards bodies
ISA-95 SCOR Working Team• Stephen Graham – Project Leader (Dow)• Charlie Gifford (GE Fanuc – ISA-95 Voting Member)• Joe Faccenda (Aspentech)• Ray Walker (DuPont) - ISA-95 Voting Member• Keith Unger (Stone Technologies – ISA-95 Chairman)• Eric Cosman (Dow) – ISA-95 Voting Member• Russ Dickinson (Dow)• Tilsley, Paul A (BP)• Tom Janoshalmi (SAP)• Enrico Camerinelli (SAP) (now SCC Europe)
Charlie Gifford 8Copyright © 2006 WBF. All rights reserved.
ISA-95 / SCOR Mapping Project Steps
1. Identify Electronic sources of information
2. MAP 68 ISA-95 Data Flows
3. MAP 113 SCOR Data Flows
4. Reconcile SCOR / ISA-95
Data Flows
List of Omissions/ inconsistencies/ suggestions to ISA-95 Technical Team.
List of Omissions/ inconsistencies/ suggestions to SCOR Technical Team.
Final Report / Recommendations
100%
100%
100%
Feb 2005
April 2005
July 2005
Dec 2005
Final Documents/ Reports to Sponsors
Feb 2006
Charlie Gifford 9Copyright © 2006 WBF. All rights reserved.
List SCOR Mapping from Previous Step
List ISA-95 Data Flows from
Step 2
Define Mapping Relationships
Define Approach
Document and Review
Reconciliation Process
SCOR~ISA-95•One to one•Many to one•Many to many•One to many
1. List ISA-95 – 1. Review SCOR (255)2. Define any SCOR
that are relevant3. Create Cross
Reference2. From Cross Reference
identify all SCOR that are not used
3. Repeat Step 1 but ask if any from Step 2 request or initiate any ISA-95
Charlie Gifford 10Copyright © 2006 WBF. All rights reserved.
ISA-95 / SCOR Mapping Project
• Achievements
• Mapping Spreadsheets
• Good team work and chemistry
• Steps 1 & 2 in Reconciliation complete
• Identified missing definitions from both
• Some SCOR no direct mapping
• Team completed Step 3 of reconciliation to identify common method and gaps
Charlie Gifford 11Copyright © 2006 WBF. All rights reserved.
Supplier
Internal or External
Plan
Customer
Internal or External
Customer’sCustomer
Suppliers’Supplier
Make DeliverSource Make DeliverMakeSourceDeliver SourceDeliver
Your Company
Source
SCOR Overview: Structured Around 5 Management Processes
SCOR ModelSCOR Model
Return Return ReturnReturn Return Return Return Return
Building Block Approach
Processes Metrics
Best Practice Technology© Supply-Chain Council, 2006 All rights reserved.
Charlie Gifford 12Copyright © 2006 WBF. All rights reserved.
Customer-Facing
SCOR Level 1Supply Chain Management
AssetsSupply Chain
ReliabilityCost
Responsive-ness
Perfect Order Fulfillment Order Fulfillment Cycle Time Upside Supply Chain Flexibility Upside Supply Chain Adaptability Downside Supply Chain Adaptability SCM management cost Cost of Goods Sold Cash-to-cash cycle time Return on Supply Chain Fixed Assets
Internal-Facing
SCOR Level 1 Performance Metrics
Flexibility
Supply Chain Performance Is Tied to Measurements That Can Be Benchmarked…
Charlie Gifford 13Copyright © 2006 WBF. All rights reserved.
SCOR Contains 3 Levels Of Abstraction Compared to ISA-95’s 4 Levels
#
Level
Schematic Comments
1
2
3
4
Configuration Level
(ProcessCategories)
Process Element Level
Plan
DeliverMakeSource
A company’s supply chain can be “configured-to- order” at Level 2 from approximately 24 core “process categories.”
Companies implement their operations strategy through their unique supply chain configuration.
Companies “fine tune” their Operations Strategy at Level 3
Level 3 defines company’s ability to compete successfully in its chosen markets & consists of:• Process element definitions • Process element information inputs and outputs• Process performance metrics • Best practices, where applicable • System capabilities required for best practices • Systems / tools
Implementation Level
Companies implement specific supply-chain management practices at this level
Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions
Su
pp
ly C
hai
n O
per
ati
on
s R
efer
ence
SC
OR
Mo
del
Top Level(Process
Types)
Level 1 defines the scope and content for the Supply Chain Operations Reference-model
Here basis of competition performance targets are set
Notin
Scope
Description
Balance Production Resources withProduction Requirements
Establish DetailedProduction Plans
Identify, Prioritize, and AggregateProduction Requirements
Identify, Assess, and AggregateProduction Resources
P3.1
P3.3 P3.4
P3.2
© Supply-Chain Council, 2006 All rights reserved.
(Decompose Processes)
(DecomposeProcess Elements)
Charlie Gifford 14Copyright © 2006 WBF. All rights reserved.
Level 4
Level 1
Level 2
Level 3
Business Planning & Logistics
Plant Production Scheduling,Operational Management, etc
Manufacturing Operations Management
Dispatching Production, Detailed ProductionScheduling, Reliability Assurance, ...
BatchControl
DiscreteControl
ContinuousControl 1 - Sensing the production process,
manipulating the production process
2 - Monitoring, supervisory control and automated control of the production process
3 - Work flow / recipe control to produce the desired end products. Maintaining records and optimizing the production process.
Time FrameDays, Shifts, hours, minutes, seconds
4 - Establishing the basic plant schedule - production, material use, delivery, and shipping. Determining inventory levels.
Time FrameMonths, weeks, days
Level 0 0 - The actual production work process
ISA-95: Functional Model Defines MOM and ERP+ Domains
ISA 95.01, .02, & .05 Standards
ISA 95.03, .04 & 06Standards
From ANSI/ISA-95.00.01-1995 Copyright ISA 2006. Used with permission. www.isa.org
Charlie Gifford 15Copyright © 2006 WBF. All rights reserved.
Cu
sto
mer
sC
ust
om
ers
Su
pp
lier
sS
up
pli
ers
P1 Plan Supply ChainP1 Plan Supply ChainPlanPlanP2 Plan SourceP2 Plan Source P3 Plan MakeP3 Plan Make P4 Plan DeliverP4 Plan Deliver
SourceSource MakeMake DeliverDeliverS1 Source Stocked ProductsS1 Source Stocked Products M1 Make-to-StockM1 Make-to-Stock
M2 Make-to-OrderM2 Make-to-Order
M3 Engineer-to-OrderM3 Engineer-to-Order
D1 Deliver Stocked ProductsD1 Deliver Stocked Products
D2 Deliver MTO ProductsD2 Deliver MTO Products
D3 Deliver ETO ProductsD3 Deliver ETO Products
S2 Source MTO ProductsS2 Source MTO Products
S3 Source ETO ProductsS3 Source ETO Products
Supply-Chain Operations Reference (SCOR) Model 7.1 - Processes
Return Return SourceSource
P5 Plan ReturnsP5 Plan Returns
Return Return DeliverDeliver
EnableEnable
D4 Deliver Retail ProductsD4 Deliver Retail Products
© Supply-Chain Council, 2006 All rights reserved.
Charlie Gifford 16Copyright © 2006 WBF. All rights reserved.
MAKE’s Level 2 Process Category and Level 3 Process Elements
Example:M1: Make-to-Stock (MTS)
Business Process and Data Flow:• M1.1 Schedule Production Activities• M1.2 Issue Product• M1.3 Product and Test• M1.4 Package• M1.5 Stage Product• M1.6 Release Product to Deliver
M2: Make-to-Stock (MTO)M3: Engineering-to-Order (ETO)
• M3.1 Finalize Engineering
• …
© Supply-Chain Council, 2006 All rights reserved.
Charlie Gifford 17Copyright © 2006 WBF. All rights reserved.
Level 3 Process Element Example-M1.1: Schedule Production Activities
Process Element: Schedule Production Activities
Process Element Number: M1.1
Performance Attributes MetricReliability Schedule achievementResponsiveness Schedule Production Activities Cycle TimeFlexibility None Identified
WIP inventory days of supplyScheduling resource costs as % of Make costsCapacity utilizationReturn on Supply Chain Assets
Best Practices FeaturesCross training/Certification HR/Certification supportMaintain data & system integrity by ensuring production data, inventory levels, & schedule requirements are 99+% accurate
Detailed production model that synchronizes PLAN and MAKE activities in real time.
Schedule optimizes use of shared resources, such as production equipment and tooling
Detailed production scheduling model and simulation capabilities
Real-time feedback from Production, raw material and finished goods inventory and test activities.
Allow dynamic re-synchronization of MAKE activities by tying in real time status information to scheduler.
Scheduling output to material and labor planning systems. Accurate, real time information.Drum-Buffer-Rope Scheduling Technique See Glossary
Assets
Cost
Process Element DefinitionGiven plans for production of specific parts, products, or formulations in specified quantities and planned availability of required sourced products, the scheduling of the operations to be performed in accordance with these plans. Scheduling include sequencing, and, depending on the factory layout, any standards for setup and run. In general, intermediate production activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product.
Charlie Gifford 18Copyright © 2006 WBF. All rights reserved.
Inputs Plan Source Make Deliver ReturnProduction Plan P3.4Scheduled Receipts – depends upon the type of sourced product required. The item sourced could be from a vendor’s MTS, MTO,and ETO process.
S1.1, S2.1, S3.3
Information Feedback M1.2, M1.3, Equipment and Facilities Schedules and Plans EM.5
Outputs Plan Source Make Deliver ReturnProduction Schedule - information is used as feedback for Plan and Source support processes. Projection of inventory availability for Deliver planning also requires the production schedule as feedback information.
P3.2 S1.1, S2.1, S3.3
D1.3, D1.8, D4.2
Process Element: Schedule Production Activities Process Element Number: M1.1
Level 3 Process Element Example - M1.1: Schedule Production Activities
© Supply-Chain Council, 2006 All rights reserved.
Charlie Gifford 19Copyright © 2006 WBF. All rights reserved.
Overview of ISA-95 EffortEnterprise-Control Integration
• ANSI/ISA 95.00.01 “Enterprise - Control System Integration - Part 1: Models and Terminology”
• ANSI/ISA 95.00.02 “Enterprise - Control System Integration - Part 2: Object Attributes”
• ANSI/ISA 95.00.03 “-Part 3: Activity Models of MOM”
• ISA 95.00.04 (Draft) “-Part 4: Object Models & Attributes of MOM”
• ISA 95.00.05 (Draft) “-Part 5: Business to Mfg Transactions”
• ISA 95.00.06 (Proposed) -“Part 6: MOM Transactions”
From ANSI/ISA-95.00.01-1995 Copyright ISA 2006. Used with permission. www.isa.org
Charlie Gifford 20Copyright © 2006 WBF. All rights reserved.
What ISA-95 Offers
• Flexibility Framework for manufacturing applications and integration projects
• Separation of business processes from manufacturing processes
• Focus on functions (Similar to SCOR), not systems, organizations or
individuals
Charlie Gifford 21Copyright © 2006 WBF. All rights reserved.
Identified Information Categories for PM-MES / ERP Data Flows
Enterprise InformationPlant Production Scheduling,Operational Management, etc
ManufacturingControl Information
Area Supervision, Production Planning, Reliability, Assurance, etc
ProductDefinition
Information(How to make
a product)
ProductionCapability
Information(What isavailablefor use)
ProductionSchedule
(What tomake and
use)
ProductionPerformance
(What wasmade and
used)
From ISA-95 Copyright ISA 2004. Used with permission. www.isa.org
Charlie Gifford 22Copyright © 2006 WBF. All rights reserved.
ProductionResource Mgt.
ProductionCapability
ProductionPerformance
Analysis
ProductionData Collection
ProductionExecution
ProductionDispatching
ProductionTracking
ProductionPerformance
DetailedProductionScheduling
ProductionSchedule
Level 2 Process Control
ProductDefinition Mgt.
ProductDefinition
ISA-95 Part 3: Mfg Operations Activity Flows & Functions Data Flows
Equipment and ProcessSpecific Production Rules
OperationalCommands
OperationalResponses
Equipment and ProcessSpecific Data
Pro
du
ction
Op
eration
s M
anag
emen
t
From ANSI/ISA-95.00.01-1995 Copyright ISA 2006.
Used with permission. www.isa.org
Charlie Gifford 23Copyright © 2006 WBF. All rights reserved.
System Function SegregationDetermines Lean Performance
B2M
Level 2: Plant Work
Maintenance Production Quality Test Inventory
UProduction
datacollection
Productionexecution
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
Maintenancedispatching
Maintenancetracking
Inventory resource
management
InventoryResponse
Detailedinventoryscheduling
InventoryRequest
Inventorydefinition
management
Inventoryanalysis
InventoryCapability
InventoryDefinitions
Inventorydata
collection
Inventoryexecution
Inventorydispatching
Inventorytracking
Qualityanalysis
Qualitytest resourcemanagement
Quality TestResponse
Detailedquality testscheduling
Quality TestRequest
Qualitydefinition
management
Quality TestCapability
QualityDefinitions
Qualitytest datacollection
Quality testexecution
Quality testdispatching
Quality testtracking
Manufacturing Application (Use Case) Framework (MAF)System Architecture Must Support Continuous ImprovementMust Allow Change in Production Processes Clear demarcation of MOM / ERP+ responsibilities & functions
ISA 95.03 “- Part 3: Activity Models of MOM”
Level 4+: Extended Enterprise
From ISA-95 Copyright ISA 2004. Used with permission. www.isa.org
Charlie Gifford 24Copyright © 2006 WBF. All rights reserved.
SCOR / ISA-95 Business Values
Interoperable, Lean Supply Chain solutions require consistent function models, schema and language
Fast flow of dynamic information from consistent messaging between supply chain and production
Fast implementation of Supply Chain-to-Mfg Operations integration projects
LARGE reduction implementation and change costs for SC integration through use of single B2MML interface
SCOR / ISA95 methods structuring a Flexible Manufacturing Application Framework over next 5 years
Charlie Gifford 25Copyright © 2006 WBF. All rights reserved.
Questions?
Charlie Gifford [email protected] Performance Mgt. GE Fanuc AmericaChairman, ISA-95 Best Practices Working Group