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Crowd manufacturing and production management as a service
1. Dr. Sotiris Koussouris
Decision Support Systems Laboratory
National Technical University of Athens (NTUA)
skous@me.com
2013 IEEE International Technology Management Conference & 19th ICE Conference
25 June 2013, The Hague
Crowd-Manufacturing and
Production Management as a
Service (the IMAGINE scope)
2. IMAGINE
Innovative End-to-end Management of Dynamic
Manufacturing Networks
• http://www.imagine-futurefactory.eu
• IP Project, co-funded by the European Union under the Virtual
Factories and Enterprises theme (FoF-ICT-2011.7.3, Grant Agreement
No: 285132)
• Project start: September 2011
• Duration: 36 months
• 14 different organisations from 10 different countries
3. • Cost and production rates were the most important
performance criteria in manufacturing in the last decades
• In order to achieve economies of scale, manufacturers relied
on dedicated mass production systems.
• However, as living standards improve, the era of mass
production is being replaced by the era of market niches.
Image: http://cp.media.mit.edu/research/76-environmental-impacts-of-mass-customization
Customisation is Key
4. In response to the increasing need for customization,
companies formVirtual Enterprises (VEs)
In aVE, a company assembles a temporary consortium
of partners and services for a certain purpose:
• temporary special request
• an ongoing goal to fulfill orders
• an attempt to take advantage of a new resource or
market niche
Advantages ofVEs:
• reduce both costs and time to market
• increase flexibility
• gain access to new markets and resources
• Redefine Business Scope and Roles
Large companies or organizations, participating in aVE, focus on their core
competencies and mission critical operations, outsourcing everything else to
partners.
TowardsVEs
5. Factories/Industries operate in networks in order to achieve:
• Low cost
• High flexibility
• Adaptability to all (internal and external) factors
Subcontracting is a very common option for all enterprises
• In every tier of the supply chain, from OEMs to suppliers
Software tools are already there, ready to assist this trend:
• SCP (Supply Chain Planning)
• WMS (Warehouse Management System)
• MES/MRP (Manufacturing Execution Systems / Material Resource Planning)
• TMS (Transportation Management Systems)
• Etc…
Image: http://www.mjc2.com/Frameset_products_manufacturing.htm
Current Practices (1/3)
6. But.....
•Full B2B integration of suppliers is a difficult task at the moment
•Poor planning and integration of eCommerce and ERP systems cost huge
amounts of time and money
•The high cost of commercial software tools prohibits SMEs from adopting
them
•“On boarding” processes, that are of outmost importance, are nowadays too
slow, both in specification and implementation level
Considering the whole lifecycle of aVirtual Enterprise, several tools can be
recognised and should be kept in mind:
•PDM (Product Data Management)
•PLM solutions (Product Lifecycle Management)
•SLM (Simulation Lifecycle Management)
•MRO (Maintenance and Reparation Operations)
•FLM (Factory Lifecycle Management)
Current Practices (2/3)
7. Costs can be reduced by taking advantage of new approaches, like:
•Open standards
•Advances in web service technologies
•Service Oriented Architecture
•Cloud Computing
More difficulties exist towards a global solution
•Established use of manual approaches
•Lack of real-time access to warehouse and other data
•Avoidance of loosely coupled partnerships
•Security of IT solutions and confidentiality of information
IMAGINE has identified the difficulties and aims to tackle the
aforementioned issues by incorporating modern, yet mature, methodologies
and tools
Current Practices (3/3)
8. Current manufacturing practices are comprised of silo-ed point solutions
•No global visibility
•No timely reaction to problems & changes
•No easy entry points for SMEs
Network manufacturing partners should operate towards a shared
manufacturing goal:
•Management of manufacturing processes at network level
•Visibility over design and manufacturing at network level
Drawbacks in Network
Manufacturing
9. A DMN is defined as a coalition, either permanent or temporal, comprising
production systems of geographically dispersed Small and Medium
Enterprises (SMEs) and/or Original Equipment Manufacturers (OEMs) that
collaborate in a shared value-chain to conduct joint manufacturing.
The notion of a DMN includes:
• The configuration of a network consisting of a large number of closely
integrated and interdependent entities/projects, which are executed over
a wide geographic spread, across very different time zones, and involve
large numbers of staff.
This whole process, apart from being very difficult to be executed, affects also a wide
range of stakeholders whether they are members of the network or not.
Dynamic Manufacturing
Networks
10. •Relies on end-to-end
integrated ICT solutions
that effectively enable the
management of
networked manufacturing
supply chains
•Is market-oriented with
focus on value chain
streamlining and support
for innovative business
models
End-to-end management of DMNEnd-to-end management of DMN
Production Project
•O1.1
• O1.1.1
• O1.1.2
•O1.2
• O1.2
Planning Manufacture DeliverSourcing
SC1
SC1
SC2
SC2
SC4
SC4
SC5
SC5
SC3
SC3
SC6
SC6
DesignConfigure
Monitor &
Manage
blueprint blueprint blueprint blueprint
Collaboration platform & Information Bus
CRM ERP SPC WMS APS LIMS
IMAGINE DMN Framework
11. An innovative flexible service
engineering methodology that
supports and guides
developers when developing
large-scale, complex
manufacturing applications on
integrated collaborative
manufacturing management
systems
Monitoring &
Management
Suite
Simulation
Production Integration Bus
CRM ERP SPC WMS APS LIMS
Partner
Blueprint
Repository
Manufacturing
Blueprint
Repository
Quality
Assurance
Blueprint
End-to-end
Production Process
Repository
End-to-End
Manufacturing
Design Suite
Network
Configuration
Blueprint
Customizer
Profile
Selector
Profile
Composer
Simulation
Network
Configuration
Monitor
Compliance
Assurance
IMAGINE DMN Framework
Lifecycle
12. Time Savings
•Time-to-market reduction
•Optimized design of end products &
individual components
•Collaborative product development
•Network-optimised production
planning & scheduling
•Fast selection of suppliers for each
project/product & network setup
•Instant reconfiguration of the
suppliers’ network
•Automated communication & data
exchange with suppliers/clients &
partners
•Increased visibility and access speed
to network/manufacturing data
Cost Reduction
•Cost-optimised selection of suppliers
•Cutting down inventory costs
•Cost-optimised management of
resources
•Reducing marketing expenses
Operations’ Enhancement
•Focus on core competences
•Product/Services co-creation
•Cost/risk sharing with partners
•Monitoring of product development &
manufacturing operations
•Reduction of design & production flaws
•Optimal selection of suppliers &
collaborators
•Improved quality throughout the
complete product lifecycle
•Know-how exchange, shared knowledge
management & access to new
technologies
•Access to new customers/markets
•Integrate diverse enterprise IT systems
for better, holistic & efficient production
DMN Benefits
(for OEMS and Suppliers also)
16. Crowd Sourcing
“The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group
of people, and especially from an online community, rather than from traditional employees or suppliers.”
Wikipedia 2013
18. • The aforementioned drawbacks hinder SMEs
from building their own networks!
• Production Management as a Service (PMaaS)
is a step towards allowing a more
collaborative, reliable, coherent, trustful and
productive coalition/alliance.
PM as a Service
19. IMAGINE and its
Contribution to PMaaS
• Interoperability between SME systems
• Easy On-Boarding Mechanism
• Search and Retrieve “real-time” information
about potential partners
• Quality- Assurance of Partners Operations
• Optimisation for Network Configuration
• Active Monitoring of Network Operations
21. Thank you for your attention
Dr. Sotiris Koussouris
Decision Support Systems Laboratory
National Technical University of Athens (NTUA)
eMail: skous@me.com
Twitter: @skous
www.imagine-futurefactory.eu
Editor's Notes
As previously discussed, many factories or industries create and operate in neworks in order to achive low costs, higher flexibility and greater adaptability to both internal and external factors. As a consequence, subcontracting has become very common in many enterprises at all levels of the supply chain, from OEM ’ s to suppliers. These factors are leading towards the virtualization of the enterprise, as many exisitng software tools are ready to assist this trend, such as: Supply Chain Planning Warehouse Management System - Manufacturing Execution Systems and Material Resource Planning - Transportation Management Systems
Despite the variety of software tools, full B2B integration of supplier is still a difficult task at the moment. According to EADS, the A380 program was delayed partially due to the heterogeneity of the PLM tools used inside Airbus, with important economic impact. This led to an important PLM harmonization project inside the EADS Group. It also led to the creation of an eBusiness PLM standards governance group for the whole Aerospace & Defense community, as the “ digital break “ problem is not Airbus specific, but shared by all the Aerospace eBusiness ecosystem, as illustrated by the objective of SEINE project. Third bullet: “ On Boarding ” , for such platforms, could be defined as the process of acquiring the necessary knowledge, skills, and behaviours to effectively and efficiently participate in a partnership. Considering the whole lifecycle of a Virtual Enterprise, some more tools can be recognized and should be kept in mind, such as: Product Data Management Product Lifecycle Management Simulation Lifecycle Management Maintenance and Reparation Operations - Factory Lifecycle Management)
Often, the high cost of commercial software tools prohibits SMEs from adopting them, but developments in Open standards, advances in web service technologies, Service-Oriented Architecture and Cloud Computing have aided in reducing these costs. However, there are more difficulties towards a global solution, such as: Established use of manual approaches Lack of real-time access to warehouse and other data Avoidance of loosely coupled partnerships Security and confidentiality of IT solutions IMAGINE has identified the difficulties and aims to tackle the aforementioned issues by incorporating modern, yet mature, methodologies and tools.
Current manufacturing practices are comprised of siloed point solutions which offer no global visibility, no timely reaction to problems & changes, and no easy entry points for SMEs. Network manufacturing partners should operate towards a shared manufacturing goal, which provides management of manufacturing processes and isibility over design and manufacturing at the network level.
A DMN is defined as a coalition, either permanent or temporal, comprising production systems of geographically dispersed Small and Medium Enterprises and/or Original Equipment that collaborate in a shared value-chain to conduct joint manufacturing. The notion of a DMN includes the configuration of a network consisting of a large number of closely integrated and interdependent projects, which are executed over a wide geographic spread, across very different time zones, and involve large numbers of staff. This whole process, apart from being very difficult to be executed, affects also a wide range of stakeholders whether they are members of the network or not.
The benefits of deploying DMN ’ s can be grouped into 3 major categories: - Time savings - Cost Reduction - Operations Enhancement