Organizing Data to Enable Enterprise-wide Manufacturing Intelligence


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Successful enterprise-wide manufacturing information and analytics systems require a consisten organization of data that can accommodate expansion and changes. Most enterprises end up patching together manufacturing and business databases based on the need of different applications These differences make it difficult to create useful reports, apply effective analytics, and adapt to changing conditions.

This webinar examines how to analyze data structure needs, design them to fit best practices, and produce a robust data structure that supports current and future manufacturing analytics requirements.

Webinar recording at:

NWA website -

Charlie Gifford, President and Chief Manufacturing Consultant
21st Century Manufacturing Solutions LLC
Hailey, ID
Mr. Gifford is an international independent consultant for optimizing manufacturing and supply chain systems. He chairs the ISA-95 Best Practices Working Group which produces public methods for aligning Continuous Improvement and Manufacturing Operations Manufacturing systems to optimize manufacturing work processes. He is the author of four books, most recently, When Worlds Collide in Manufacturing Operations: ISA-95 Best Practices Book 2.0.

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Organizing Data to Enable Enterprise-wide Manufacturing Intelligence

  1. 1. Webinar 1: Organizing Data to Enable Enterprise-wide Manufacturing IntelligenceThursday September 29, 2011 11 AM PDT, 2PM EDT ©2011 21CMS All Rights Reserved
  2. 2. Standards Liaisonfor Manufacturing OperationsCharlie Gifford• MESA International Outstanding Contribution Award 2007• Thomas Fisher Award for Best Standards Book of Year 2010• Certified TQM Facilitator / Process Action Team (PAT) Leader, 20 years• Chairman, ISA-95 (B2M, MOM) Best Practices Working Group• Director, MESA Global Education Program• Voting Member, ISA-88 & ISA-95 Committee• ISA-95 Representative, ISA-95/SCOR Alignment Working Group• Information Member: ISA-99 (Security), ISA-100 (Wireless)• Director, ISA Computer Technology Division 96-99• Coauthor, SCOR MAKE Section• Chairman, Editorial Board, Industrial Computing Magazine 98-02• Published over 45 papers and 4 books on Mfg Operations IT• Standards Work: ISA-84, 88, 95, MESA, SCOR, Many DOD Standards ©2011 21CMS All Rights Reserved 2
  3. 3. Agenda • Standards-based Manufacturing Intelligence • Adaptive MES/MOM Standards Overview • Conclusion ©2011 21CMS All Rights Reserved 3
  4. 4. 21st Century Manufacturing Issues • Diversity • RAPID Change • Competitive Disadvantage! ©2011 21CMS All Rights Reserved 4
  5. 5. Business Value of StructuredManufacturing DataInnovative Manufacturers 3M IBMApply Standards-based BP InBevApplications and Methods Cargill Masterfoods Chevron MillerCoors Dow Nestle DuPont P&G Eli Lilly Pfizer GM Wrigley 5 ©2011 21CMS All Rights Reserved
  6. 6. Business Value of Structured Manufacturing Data• DATA INTEGRITY through a single mfg operations definition!• Adapt & optimize their manufacturing for 21st Century “Pull” MTO market environments• Focus on plant agility and excellence simultaneously through SCALABLE Continuous Improvement − Real-time architecture uses configurable, model-based applications − Common (reusable) components for operations processes ©2011 21CMS All Rights Reserved 6
  7. 7. 21st Century Manufacturing isLean & Flexible Supply ChainsAligning Production Capabilities to 21st Century ChallengesMandates Fundamental Change… 20th Century Manufacturing CustomersSuppliers Manufacturers Dist Retailers Supplier Logistics Customer Exchanges Exchanges Exchanges Virtual Mfg. Logistics CMs Providers Copyright @2007 Gartner Group: All rights reserved. ©2011 21CMS All Rights Reserved 7
  8. 8. Business Evolves towards ConfigurableDemand-Driven Supply Chains Critical Need: Production Capability & Alignment Customer DC Supplier Plant Customer DC Supplier Customer Plant DC Supplier Customer Plant DC Supplier Customer DC Customer 21st Century Manufacturing Competative Enablers: Copyright @2007 Gartner Group: MOM Adaptability & Real-Time Visibility All rights reserved. ©2011 21CMS All Rights Reserved 8
  9. 9. Required Agility Forces Change Corp Suppliers Systems Re Broadcast Sequence Data Collection Order Scheduling Logistics Mgmt WIP Quality eKanban Track ANDON Asset Production Error Monitoring Mgmt. SCADA Proof ©2011 21CMS All Rights Reserved 9
  10. 10. InnovateOperations Process Effectiveness ©2011 21CMS All Rights Reserved
  11. 11. ValueInnovationCollaboration M2.0 ©2011 21CMS All Rights Reserved 11
  12. 12. Design a GlobalManufacturing EnvironmentEvolve Demand-Driven Manufacturing asa Scalable Business Model • Synchronize manufacturing and logistics work processes • Dynamically reconfigurable supply network to a known profit per order fulfillment path • Reuse of Model-based architecture provides scalable continuous improvement capability • Scalable Continuous Improvement “Network” ©2011 21CMS All Rights Reserved 12
  13. 13. Top Line Opportunities are Compelling, But More.. Increase Market ShareLarger benefits from Reduce Increase Volume and /or And/Or Pursue continuous Operating Margins At Same Cost New Markets improvement: Costs Supports collaborationMOM is necessary to Supply chain visibility achieve this level 10X Average payback Platform for continuous improvement $$ Value of Benefits 12 Months on 1X Benefits Platform for Continuous Improvement 3X Faster NPI cycle: shorten innovation innovation Faster NPI cycle – shorten TTM for TTM for MOM marketed as competitive tool Customer audit requirements: traceability and genealogy MES marketed as competitive tool traceability and Customer audit requirements: genealogy manufacturing Promotes flow 1X Lower WIP and FGI Reduce indirect labor costs Reduce waste/scrap/materials Shorten cycle/flow time Reduce cost of regulatory compliance Reduce rework Improve quality/ reduce process & product Reduce rework variability variability Reduce maintenance costs Reduce maintenance costs Reduce cost of regulatory compliance MOM Systems 3 - 12 mos. 12 to 36 mos. 12 to 36 mos. 3 years + justified on cost Project payback ranges 6 to 24 months reduction Source: AMR Research Report: MES Provides Long-Term Revenue and Market Benefits Beyond Easy-to-Quantify Operational Cost Savings ©2011 21CMS All Rights Reserved 13
  14. 14. Manufacturing Operations Contribution • Importance of Perfect • Right product Order Performance • Right Quality Demand • 15% less inventory Forecast • 17% stronger perfect • Right place order fulfillment • Right time • 35% shorter cash-to- Perfect SCM • Right profit margin Order Cost cash cycle times • 1/10 of the stockouts Cash-to-Cash Inventory of their peers AP Total AR Supplier Supplier RM Purch Dir Mtl Quality On-Time Inv Costs Costs Production Order Perfect Cost Plant WIP + FG Sched Cycle Order Detail Utilization Inventory Variance Time Detail Enterprise Manufacturing IntelligenceCopyright © 2011 Gartner Group ©2011 21CMS All Rights Reserved 14
  15. 15. Best-in Class Focus on Perfect Order and NPI© 2011, Aberdeen Group. All Rights Reserved. ©2011 21CMS All Rights Reserved 15
  16. 16. Competitive Framework for Process Capabilities Best-in-Class Average Laggards Standardize processes across the enterprise for optimizing manufacturing operations 64% 37% 30% Standardize measurements of KPIs across Process enterprise 68% 58% 51% Standardize processes for response to adverse events 64% 51% 19%Copyright @2008 Aberdeen Group, All rights reserved. ©2011 21CMS All Rights Reserved 16
  17. 17. Manufacturing Intelligence Foundation CONTEXTUALIZE ANALYZEIncreasing Strategic Value to the Enterprise COST-BASED MODELS e.g. Capable/Profitable to Promise VISUALIZE BUSINESS Perform RULES To Demand ORDERS Performance SPECIFICATIONS to schedule MATERIAL & PRODUCT Overall process FLOWS performance metrics Copyright © 2011 Gartner Group PRODUCTION MODELS, RECIPES/ BOMS Correlate of work process data, & ROUTES equipment data and product data EQUIPMENT Operating data transformed into asset & ASSET performance KPIs INSTRUMENT Large volumes of extremely detailed production data from multiple back-end data sources. DEVICE I/O TAGS ©2011 21CMS All Rights Reserved 17
  18. 18. Mfg Data Sophistication Determined byMfg Work Process ©2011 21CMS All Rights Reserved 18
  19. 19. MOM User and Functional RequirementsDefine Data Structure for Mfg Intelligence 1. MOM URS: 2. MOM URS: 3. MOM FRS: Open Open O&M Open O&M O&M Data Definition, Process Model Information Flows Structure, Transactions & Rules• Manufacturing Intelligence Requirements: • URS sets standards for Class Structures for processes, resources, KPIs, and metrics• Governance, Definitions, and Structure of Manufacturing Data • Mfg Master Data Mgt: Mapping and Synchronization Processes • Metrics: Operations and Financial • KPIs: Quality and Work Processes • Align Master and Meta data for each application • Align Syntax data for each application • Mfg Integration Semantic Models (Processes and resources) • Systems of Record: Incidence and Historical Data ©2011 21CMS All Rights Reserved 19
  20. 20. Structure Mfg. Master Data vs. Enterprise Master DataDEMAND FORECASTING Demand Forecasting Resource Planning & EnterpriseS&OP PROCESSES Supporting Allocation Level details are MDMMASTER PRODUCTION Master Schedule, added at eachSCHEDULING & RESOURCE Work Orders, BOM, layer as neededPLANNING General Recipe to support execution Bill of Materials, Bill of Process,SITE SPECIFIC Bill of Equipment, Bill ofRESOURCE PLANNING & Assay/Test, Labor & Skills, Bill ofSCHEDULING Compliance Master Recipe, Formula Optimization, ScalingSITE SPECIFIC & Substitutions, Detailed Work Instructions,ROUTINGS, WORK Detailed Production Schedule, local LaborDEFINITION/DISPATCH Laws & Regulations Site Level Control Recipes, Equipment settings, Maintenance mMDMSITE SPECIFIC Requirements, Tooling Management, EquipmentEXECUTION Operating Specifications, Calibration, ProcessCAPABILITY Parameters, SOPs(EQUIPMENT &ASSETS) Equipment, Operations Personnel, Warehouse, Automation & Controls ©2011 21CMS All Rights Reserved 20
  21. 21. MfgMasterDataMgt.A RecipeManagementExample:Master Dataand its mMDM 21 ©2011 21CMS All Rights Reserved 21
  22. 22. AlignMfg OpsMaster Site Recipe Product Master Work Master RecipeData Definition DefinitionProduct Related Definitions Production Work Batch List Output from Schedule Schedule Scheduling Control Work Control Recipe Definition Executable Elements Production Work Production Batch Production Execution Performance Record Record Results ©2011 21CMS All Rights Reserved 22
  23. 23. Agenda• Standards-based Manufacturing Intelligence• Adaptive MES/MOM Standards Overview• Conclusion ©2011 21CMS All Rights Reserved 23
  24. 24. Collaborative Manufacturing Management Enterprise Domain Business Business Scope FIN HR ERP Lifecycle Domain EAM APS/ PLM/S FCS Suppliers SRM CPS CRM Customers MOM MES TMS BPM GLS Value Chain Domain PLM/D APC Logistics RPO/ PSO Automation Collaborative InfrastructureSource: ARC Advisory Group Production ©2011 21CMS All Rights Reserved 24
  25. 25. ISA-95 Functional Hierarchy Mfg Operations Domain Level 4 4 - Establishing the basic plant schedule - Business Planning production, material use, delivery, and & Logistics shipping. Determining inventory levels. Plant Production Scheduling, Time Frame Operational Management, etc Months, weeks, days, shifts Interface addressed in Level 3 ISA-95.01, .02, & .05 standards 3 - Work flow / recipe control to produce theDomain Manufacturing desired end products. Maintainingaddressed Operations Management records and optimizing the productionin ISA-95.03 Dispatching Production, Detailed Production process. Scheduling, Reliability Assurance, ... Time Framestandard Shifts, hours, minutes, seconds Level 2 2 - Monitoring, supervisory control and Manufacturing Control automated control of production process Basic Control, Supervisory Control, Level 1 Process Sensing, Process Manipulation,… 1 - Sensing the production process, manipulating the production process Level 0 Production Process 0 - The physical production process ANSI/ISA-95.00.03-2010 Copyright © ISA 2011. ©2011 21CMS All Rights Reserved
  26. 26. Manufacturing Integration Standards OverviewCopyright © 2006 MESAInternational, MESAMetrics that MatterGuidebook & Framework ©2011 21CMS All Rights Reserved 26
  27. 27. Mfg Information Model Evolution:OpenO&M™ Domain Map OAGIS, SCOR Level 5+: Inter-Enterprise OAGIS, SCOR Level 4+: Enterprise Hybrid OPC UA Discrete Process MIMOSA ISA-99 ISA-95 Level 3: OAGIS B2MML Manufacturing Operations ISA-88 OPC: DA, HDA, A&E Levels 2, 1, 0: OMAC Machine / Plant Work FOUNDATION ©2011 21CMS All Rights Reserved 27
  28. 28. ISA-95:An Adaptive Manufacturing Framework• ANSI standard developed by ISA 95 Committee• ANSI/ISA-95.00.01-2010 “Enterprise - Control System Integration – Part 1: Models and Terminology”• ANSI/ISA-95.00.02-2010 “Enterprise - Control System Integration – Part 2: Object Attributes”• ANSI/ISA-95.00.03-2005 “Enterprise - Control System Integration – Part 3: Models of Manufacturing Operations”• ANSI/ISA-95.00.05.-2007 “Enterprise - Control System Integration – Business to Manufacturing Transactions• ANSI/ISA-95… also available as IEC/ISO 62264 standards• B2MML V0402 – Business to Manufacturing Markup Language − Developed by the WBF as implementation of ISA-95 Parts 1, 2, and 5• American National Standards Institute (ANSI)• International Society of Automation (ISA)• International Electrotechnical Commission (IEC)• International Organization of Standardization (ISO) ©2011 21CMS All Rights Reserved 28
  29. 29. Levels 3-4 MOM/ERP+ Data Flows: Information Categories Enterprise Information Plant Production Scheduling, Operational Management, etc Production & Product & Production & Production & Resource Operations Operations Operations Operations Information (Personnel, Capability Definition Schedule Performance Equipment, Information Information (What to make (What was made Material, (What is available (How to make and what and what was Segments) for use) a product) to use) used) Manufacturing Operations and Control Information Area Supervision, Production Planning,ANSI/ISA-95.00.01-2010 Most Used Reliability, Assurance, etcCopyright © ISA 2011. Exchanges Today ©2011 21CMS All Rights Reserved 29
  30. 30. ISA-95: 4x4 Object Models DefineB2M Data Exchanges & Data Models4 Resource Categories 4 Information Categories Resources Product/Operations Capability Product & Operations ProductPeople Equipment Materials Definition Time Production & Operations Capability Structure / View Production Production & Operations Schedule Process & Operations Segments Production & Operations Performance ©2011 21CMS All Rights Reserved 30
  31. 31. New ISA-95 Versions Support for Operations User Requirements Structure Business Logistics Management Make Material Segment Common Material Final Material Final Product Segment Segment Segment Inventory Inventory Inventory Inventory Operations Management Deliver Deliver Deliver Production Operations Batch Batch Batch Mix Fill Cap Label Package Management Quality Test Test Operations Management Maintenance Operations Setup/ Setup’ Management Maintain MaintainCopyright © 2011 ISA ©2011 21CMS All Rights Reserved 31
  32. 32. Equipment Model:Class and Instance Examples Equipment class − Reactor unit, bottling line, horizontal drill press Equipment − Reactor unit #1, bottling line #1, drill press #4 Equipment class property − Lining, BTU extraction capacity, capacity Equipment property − Lining = glass; capacity = 400 tons − Also current availability of equipment and other current information such as: 1) when calibration is needed 2) maintenance status 3) the current state of the equipment ©2011 21CMS All Rights Reserved 32
  33. 33. B2MML (Business to Manufacturing Markup Language):ISA-95 Implemented as XML Schema• B2MML-V0402-Common.xsd B2MML-V0501 (2011):• B2MML-V0402-Personnel.xsd Added Operations objects• B2MML-V0402-Equipment.xsd include:• B2MML-V0402-Material.xsd • OperationsCapability• B2MML-V0402-Maintenance.xsd • OperationsDefinition• B2MML-V0402-ProcessSegment.xsd • OperationsPerformance• B2MML-V0402-ProductionDefinition.xsd • OperationsSchedule• B2MML-V0402-ProductionCapability.xsd• B2MML-V0402-ProductionPerformance.xsd• B2MML-V0402-ProductionSchedule.xsd• B2MML-V0402-Extensions.xsd• B2MML-V0402-CoreComponents.xsd• B2MML-V0402-ConfirmBOD.xsd• B2MML-V0402-TransactionProfile.xsd ©2011 21CMS All Rights Reserved 33
  34. 34. ISA-95 Part 3: Mfg. Operations Management (MOM) Level 4 Business Planning & Logistics Plant Production Scheduling, Operational Management, etc Level 3 Detailed scheduling Resource Tracking management MOM Functionality Performance Dispatching analysis Definition Data management collection Execution management LevelsFrom ANSI/ISA-95.00.03-2007Copyright © 2010 ISA. Used withpermission. 2,1,0 Batch Continuous Discrete Control Control Control ©2011 21CMS All Rights Reserved 34
  35. 35. Correlate Analytics to Construct Metrics and Complete Production Genealogy Product Production Production Production Definition Capability Schedule Performance Detailed Metrics Categories Production Scheduling Three Types of MOM Production Production Analytics Resource Tracking Management for KPIs Production Product Dispatching Analysis Product Production Definition Data Production Management Collection AnalysisFrom ANSI/ISA-95.00.03-2007 Production ProcessCopyright © 2010 ISA. Used withpermission. Execution Analysis Level 2 Process Control / Plant Work ©2011 21CMS All Rights Reserved 35
  36. 36. Production Operations Depends on Operations Response • Shaded elements define information flows within Level 3 areas to support Production • Some information may flow to other Level 4 systems Production Maintenance Quality Inventory Product Production Production Production Quality Quality test Quality test Quality test MaintenanceMaintenance MaintenanceMaintenance Inventory Inventory Inventory Inventory definition capability schedule performance definitions capability request response definitions capability request response definitions capability request response Detailed Detailed Detailed Detailed production inventory maintenance quality test scheduling scheduling scheduling scheduling Production Quality Inventory Production Maintenance Quality test Inventory resource Maintenance resource tracking resource test resource tracking management tracking tracking management management management Production Production Quality test Quality Inventory Inventory performance Maintenance Maintenance dispatching dispatching analysis dispatching analysis analysis dispatching analysis Product Production Maintenance Maintenance Quality Quality Inventory Inventory definition data definition data definition test data definition data management collection management collection management collection management collection Quality test Inventory Production Maintenance execution execution execution execution management management management management Level 2 Process ControlANSI/ISA-95.00.03-2006Copyright © ISA 2011. ©2011 21CMS All Rights Reserved 36
  37. 37. Knowledge ProvidesGreater Understanding Understanding INDEPENDENCE Understanding Principles Knowledge CONTEXT Understanding Patterns Information Understanding Relationships Structure Data UNDERSTANDING Knowledge is a Key Enabler of the Knowledge Worker and Supports Problem Solving and Troubleshooting ©2011 21CMS All Rights Reserved 37
  38. 38. Business Alignment: Step By Step Approach A business driven, aligned approach: MES/MOM is Primary Continous Improvement Enabler Ambition Project 2 Project 1 Status quo© 2010 Atos Origin ©2011 21CMS All Rights Reserved 38
  39. 39. Conclusion• Successful enterprise-wide manufacturing information and analytics systems require a consistent organization and governance of data• Focus on plant agility and excellence simultaneously through SCALABLE Continuous Improvement − Real-time architecture uses configurable, model-based applications − Common (reusable) components for business and operations processes ©2011 21CMS All Rights Reserved 39
  40. 40. Question and Answer Charlie Gifford President 21st Century Manufacturing Solutions LLC 208-309-0990 ©2011 21CMS All Rights Reserved
  41. 41. B2MML: Business to ManufacturingMarkup Language• XML-based implementation of ISA-95 standard• Developed by WBFs XML Working Group• XML schemas based upon ANSI/ISA-95 family of standards• Use WWW Consortium’s XML Schema language (XSD)• Used to integrate ERP and SCM systems with MOM systems• Updated B2MML includes Operations elements in New Part 2• IBM, SAP, and Microsoft endorsed• Formal way to document information and agreements ©2011 21CMS All Rights Reserved 41