Transforming operation strategies with MOM and ISA-95 standards

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Global competitiveness requires increasing manufacturing agility while maintaining quality, production performance and on-time shipments. To meet these needs market leading companies incorporate ISA-95 Maturity Models as a core strategy to improve agility.

The strategy depends on manufacturing intelligence solutions to deliver role specific reporting to support decision making and enable people to take process ownership and drive manufacturing transformation through maturity levels from ad-hoc operations to continuous improvement:
• Level 1: Ad-hoc Operations
• Level 2: Planning and Control
• Level 3: Standardized Processes
• Level 4: Predictable Performance
• Level 5: Continuous Improvement
For over fifteen years ISA-95 has been the standard to model these processes. Maturity Models map the manufacturing transformation strategy that integrates real-time process systems with the supply chain as a business and operational strategy to drive operational excellence.

Rod Parry explains how to use Maturity Models to develop a Manufacturing Transformation Strategy to achieve the flexibility, agility and process optimization required for global competitiveness. These strategies enable companies to deploy these cohesive strategies for operations excellence.

Presenter:

Rod Parry is the Managing Director at Factory IQ a consulting practice in manufacturing operation management, MES systems and energy that integrates ISA standards, IT, vendor systems and a common information model to connect the manufacturing plant with the supply chain and ERP systems. Rod is currently chair of the MESA Metrics Reference Model working group.

Mr. Parry is a thirty year veteran developing and integrating MOM/MES and process automation with enterprise applications. Prior to founding FactoryIQ, he held positions at Intel, Microsoft and MCS Technology.

http://www.nwasoft.com/resources/webinars/transform-operations-strategies-deliver-more-agility-flexibility-isa-95-maturity-

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Transforming operation strategies with MOM and ISA-95 standards

  1. 1. Transforming operation strategies to deliver moreagility & flexibility using an ISA-95 Maturity ModelRod ParryManaging DirectorFactory IQMCP, PMP, CSSBBOffice: 503-530-8740rparry@factoryiq.com © Copyright 2010 - Factory IQMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  2. 2. BIO & Background28 Years – 100 Plants - 200 Projects • Business and Operations Strategy • Engineering • Plant Operations and Maintenance • Plant-wide Systems • MES/MOM Systems integrated with Process Automation Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  3. 3. Agenda 1. Global Competition in the Supply Chain 2. Gaps with Supply Chain Planning & Logistics 3. Gaps with Manufacturing Plant Operations 4. Culture change with Operational Excellence 5. Mapping the Gaps with to the Business Strategy and Operation Strategies. 6. Introducing MOM, ISA-95 Standards and the Manufacturing Maturity Model. 7. New adaptable architectures to support legacy systems. 8. Metrics, Costs, and Scorecards.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  4. 4. Competing Globally1. Global Competition is Fierce.2. Managing Customers and delivering products is complex.3. Variability with SOP Planning and Forecasting Demand.4. Fluctuations in demand with seasonality, promotions, trends, cycles.5. Warehousing & Distribution, Fulfillment, On-Time Delivery.6. Planning manufacturing capacity, resources, equipment, people.7. Manufacturing Operations – inventory, WIP, metrics, cycle / down time, setups.8. Product Definition, production efficiency, dispatching, quality, & maintenance.9. Corporate governance, regulations and reporting. Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  5. 5. Supply Chain Gaps 1. Large increase in product variants by region and season 2. Much shorter new product development and time-to-volume (TTV) cycle times 3. Increasing and wide demand forecast errors 4. Diverse global regulatory and customer compliance requirements 5. Competition = continuous cost reduction 6. More dynamic supply networksMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  6. 6. Business Drivers Impacting Manufacturers Which business drivers are most important to overall success of your organization?© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  7. 7. Business Drivers Impacting Manufacturers © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  8. 8. Manufacturing Gaps – No Visibility Silo Silo Silo Silo Silo Silo SiloMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  9. 9. Driving Operation Excellence with PeopleMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  10. 10. TransformationMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  11. 11. ISA-95 ModelMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  12. 12. ISA-95 Operation Models Manufacturing Operation Information Models Schedule Performance Information Information Production OperationsProduction Schedule Production PerformanceMaintenance Schedule Maintenance PerformanceQuality Test Schedule Maintenance Quality Test Performance Operations Quality Definition Operations Capability Information InformationProduct Definition Information Production Capability InformationMaintenance Definition Information Maintenance Capability InformationQuality Definition Information Quality Capability InformationMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  13. 13. Visualizing InformationMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  14. 14. Process Workflow Manual Process Islands Orchestrated Connected Processes SystemsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  15. 15. Benefits: Examples1. Increasing production visibility from 15 days to less than a minute.2. Decreased manufacturing cycle time – example: 23.5 days to 4 days.3. Increasing material and production throughput.4. Increased Finished Goods and Production Capabilities.5. Increased Capacity and ability to take on more demand.6. Improved overall equipment effectiveness.7. Reduced inventories.8. Increased employee productivity.9. Reduced work order fulfillment lead time from two weeks to two days10. Improving customer response and service.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  16. 16. ISA-95 Operation Production FlowsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  17. 17. ISA-95 Model Product Production Production Production definition capability schedule performance Detailed production scheduling Production Production resource tracking management Production Production performance dispatching analysis Product Production definition data management collection Production execution management Equipment and process Operational Operational Equipment and process specific production rules commands responses specific data Production level 1-2 functionsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  18. 18. ISA-95 Standards Based Manufacturing SystemsSite Equipment Capability Equipment Specification Equipment Requirement Area Equipment Segments Equipment Actual Product segments Consumable Expected Consumable Actual Process segments Material Capability Material Segment Material Specification Equipment Units Material Produced Requirement Material Consumed Requirement Routes Material Produced Actual Material Consumed Actual Equipment Operations Personnel Capability Personnel Segment Capability Material Operations Personnel Specification Personnel Segments Transformations Personnel Requirement Personnel ActualMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  19. 19. Process Workflow Operations Performance: Operations Request: Actual/ Alerts/ Genealogy Genealogy Definitions/ Rules Alarms/ Triggers Process Work Cell Outgoing QA Test Incoming QA Test Operations Management A orchestrated sequence of manual and equipment QA Data operations performed for material transformations QA Data Execution: Compliant, Traceable, and Validated Consumed Materials …. Out In Materials Operation 1 Operation 2 Operation N Materials Manual Recipes Equipment States, SOPs, Work Operations Interface Events, Instructions Alarms, KPIs Changeovers Equipment Fixtures, Kits Tooling Mgmt. Tooling InventoryMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  20. 20. Existing Legacy Systems Legacy 10-20 years Disconnected Vendor Systems SCADA/HMI Recipe & Batch Historians Legacy Databases Old PLC’s, Controllers Proprietary OEM sys. 2D Barcodes Vendor Drivers Proprietary Systems Windows NT, 95, VMS, Unix, etc. Excel, AccessMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  21. 21. Manufacturing Service BussMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  22. 22. New MOM Approach … allows decomposition of applications into services Reusable building blocks Reusable services enable a nimble IT infrastructure that adapts to meet changing business needsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  23. 23. Dashboards & ReportingMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  24. 24. New MOM 2.0 Approach courtesy of Change these Business Process 1 Business Process 2 without… … impacting these Business Business Business Business Business Business Business Business Change Service Service Service Service Service Service Service Service these IT without IT IT IT IT IT IT IT IT Component redeveloping IT theseMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  25. 25. New MOM 2.0 Framework Approach 7 Business processes are optimized, changed, OPTIMIZED scaled based on quantitative feedback 6 Foundation framework assures repeatable content REPEATABLE for business processes with consistent delivery at all sites without ‘hand-carving’ implementationsFRAMEWORK 5 a)Measure/manage effectiveness of key busMfg 2.0 QUANTITATIVELY processes MANAGED b)Measure/manage effectiveness of bus services 4 Business processes decomposed to activities: PROCESS Mapped into services or objects and managed by ORCHESTRATION a work flow and execution engine 3 Business processes interpreted and managed on WORKFLOW a central resource, e.g. rules engine EXECUTION 2 Application-centric integration architecture MANAGED centers on enterprise bus and/or select web INTEGRATION services1 Point-to-point connectivity – No SOA – INITIAL No web servicesMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  26. 26. New MOM 2.0 Framework Approach 2 1 28Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  27. 27. New MOM 2.0 Work FlowsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  28. 28. Metrics© 2011, Aberdeen Group. All Rights Reserved. Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  29. 29. Metrics and Root Causes Daily OEE OEE Unplanned Downtime % Performance Loss % Quality Loss % 120.00% 100.00% 80.00% 60.00% 40.00% 91.98% 88.14% 63.68% 49.90% 62.90% 20.00% 43.11% 28.52% 0.00% -20.00% 16 Wed 07-Mar-2012 Thu 08-Mar-2012 Fri 09-Mar-2012 Sat 10-Mar-2012 Sun 11-Mar-2012 Mon 12-Mar-2012 Tue 13-Mar-2012 OEE 43.11% 28.52% 63.68% 91.98% 49.90% 88.14% 62.90% Planned Downtime % Unplanned Downtime % 0.00% 0.00% 7.65% 0.00% 0.00% 2.11% 14.89% Performance Loss % 56.89% 71.48% 19.85% 8.02% 50.10% 0.00% 22.21% Quality Loss % 0.00% 0.00% 8.82% 0.00% 0.00% 9.74% 0.00% Downtime 100.00% 100.00% 91.32% 100.00% 100.00% 97.85% 83.47% Performance 43.11% 28.52% 77.48% 91.98% 49.90% 100.00% 75.35% Quality 100.00% 100.00% 90.00% 100.00% 100.00% 90.08% 100.00%Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  30. 30. Metrics© 2011, Aberdeen Group. All Rights Reserved. Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics
  31. 31. Thank You ! Questions ?Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

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