-Manufacturing; before and after-Key note speaking in 2014 Annual ICT Conference for SMEs at El Salvador

1. Antonio Suk Keun Cha
Cofounder/CTO
ACS Corp. in Korea
December 2nd, 2014

4. I. Before: Scoping of e-Manufacturing
Manufacturing is the production of merchandise for use or sale using labor and
machines, tools, chemical and biological processing, or formulation based on provides
flexible for increasing quality, reducing cost and shorten delivery for manufacturing
processes. – Source:Wikipedia
Q C D F
Quality Cost Delivery
Flexible
Manufacturing business opportunities in El Salvador
Mission for CEOs

5. I. Before: Scoping of e-Manufacturing
“What are your biggest problems with manufacturin”g?
(multiple responses accepted)
Poor visibility into plant
operations
Inaccurate demand
forecasting
Poor communication
Supply shortfalls
Poor customer satisfaction
Don’t know
Percent of 100 manufacturing companies responding
38%
36%
24%
18%
8%
8%
Forrester Research, July 2000

6. Enterprises must insure that data is
accurate and timely, to support
collaborative initiatives
Data Latency and Inaccuracy
Six common practices that will cause ERP II failure:
 Manual adjustments to inventory
 Relying on annual physical inventory
 Delaying material receipts and issues
 Ignoring rescheduling and exception messages
 Production reporting only at the end of the line
 Using “dummy” sales and/or purchase orders
Fall Conference 2001
Direct, Automated
Information Feeds
Enterprise
Applications
e-Manufacturing
with Real Time
Enterprise
I. Before: Scoping of e-Manufacturing

7. I. Before: Scoping of e-Manufacturing
Real time collection of 4M1E (Man,Machine,Material,Method,Energ) and providing
real time performance measurement for internal optimal decision based on
production current status, product promised date for customer satisfaction in every
type of manufacturing enterprises.
You cannot manage what you can not measure!!!
Before
Customer information
Deliver information
군산생산감시시스템 (화성)
BUMPER
I/P
Monitoring/Analysis
Information
Decision making
Information
Real time 4M1E data Integration
After
4M1E

8. I. Before: Scoping of e-Manufacturing
The Methods of 4M1E integration in real time with International standard
-Wired sensor networks : Communication Protocols, Process I/O, Sensor I/O
-Wireless sensor networks: Internet of Things/Machine to Machine(IoT/M2M), RFID/Bar
Source Items
Method
Std. OP
Lot No.
Traceability …
Machine
Counter
Run time
Failure reason
Material
Location
Specification
WIP level …
Man
Start/End
Failure code
Not run
Reasons …
Energy
Voltage, current,
flow, Pressure …
4M1E
Device
Controllers
Wired Sensor Networks
RFID
PLC
Machine
e-Manufacturing
Software
(POP/MES/ERP)
Protocols Process I/O Sensor I/O
PDA
Mobiles
Office PCs
RFID/USN Touch Screen Mobiles
Wireless Sensor Networks
Wired IoT/M2M
Devices
Sensors
Relays
Access
Point
Bar code
Reader
Touch
Terminals
ISO 22400
ISO JTC 1
Wireless Sensor Network
IoT/M2M Device
Gateway
code, Touch screen, Mobile devices
Wired IoT/M2M
Device
Production floor
(POP: Point of Production, MES: Manufacturing Execution System ERP: Enterprise Resource Planning)

9. 9
• Wired IoT/M2M devices
- Open embedded Linux based low
power consumption intelligent devices
I. Before: Scoping of e-Manufacturing
• Wireless IoT/M2M devices
- Low power and small size of IP based
wireless sensor network
Installed Installed

10. • Touch Screen Terminals
- No IT resource in terminal
- Low power, good for harsh environment
- No issue of hacking and IT security
- Easy to use manual data entry by workers
10
: Display big characters & touch
I. Before: Scoping of e-Manufacturing
• Managing by moving
- mobile for production and
maintenance
- PDA and smart phone integration

12. II. e-Manufacturing deployed by ACS
• 1,000+ Real time production management system in world wide since 1988
• International Standard based COTS(Commercial Off The Shelf) approach
Name ACS(Advanced Consulting Services Co.)
Business
consulting service, solution developing
manufacturing ICT convergence
Employees 95
R&D budget 8% of Annual Revenues (as of 2013)
Core
Technology
e-Mfg®, u-Mfg® Auto-configuration® real
time event driven, M2M/IoT
Qualified
Product DABOMⓇ-series
Central managing by DABOM
globally distributed manufacturing
enterprises
DABOM® means “see-all” in Korean word and a trademark of ACS

13. II. e-Manufacturing deployed by ACS
Industrial
Template
functions
Real time event
based Middleware
(DABOM-Middleware)
Manufacturing
International
standard
application
(ISA S-95
MESA-11)
DABOM-MES
Industrial
specific
application
Wired and
wireless sensor
Devices
(DABOM-Device:
iTOUCH, iDCU)

14. Company facts
- Annual Rev : 10 Million USD
- No. of Employees : 104 peoples
- Type of Manufacturing : Electronics Part
- Type of Products : AC IN/OUT LET , PIN JACK
Reasons for deployment
II. e-Manufacturing deployed by ACS
- Can not see what is current status of production line
- Impossible to productivity analysis and quality, equipment down history due to manual
reporting
- No way to make a decision for delivery due date
- No way to estimating accuracy production planning
User Benefits
- More than 25% increased quality control level
- Quickly respond for production issue
- At least 30% reduction cost of record and analysis works
- Increased customer satisfaction
- More than 20% increased run time of equipment

15. Hardware & Network Configuration
- ERP access
- ACS DABOM-MES access
Office PC
ERP Server
(H.Q) ACS
DABOM-MES
Extrusion machines (27 Unit)
Device
Interface
(4 Unit)
Press Line
Device
Interface
(6 Unit)
……
Press (12 unit)
8 Machines
Manages by
PDA
……
21machines
manages
by PDA
Extrusion Line
Touch
Screen
Assembly line
Internet
II. e-Manufacturing deployed by ACS

16. Reasons for deployment
User Benefits
- Reduced 30% of labor cost
- 25% of reduced capital investment
- 10% of increased profit of company
II. e-Manufacturing deployed by ACS
Company facts
- Jeju Local Government operation
- Annual Rev : 170Million USD (23.1% Market)
- Type of Manufacturing : Process industry
- Type of Products : Drink waters
- Image making Jeju Local Government as clear and trust
- Needs real time tracking of drink waters
- Impossible to tracking of labor and production cost

17. POP/MES Server
ERP Server
Wireless Access Point
Touch Screen Terminals
Bar code Printer
Large LCD Display
PDAs
PLCs
II. e-Manufacturing deployed by ACS

18. Work order plan
Quality Trend
II. e-Manufacturing deployed by ACS

19. II. e-Manufacturing deployed by ACS
Before After Result
68% Reduced 32%
WIP 100% 65% Reduced 35%
240 Min./ Month 120 Min./Month Reduced 50%
Item
Inventory
Time for Inv.
Level
100%
Leadtime 1.95 Min. 1.05 Min. Reduced 46%
Inventory
accuracy
60% 97% Enhanced 57%
Short STOP Time 120.85/Month 24.96/Month Reduced 79%

21. 21
III. After: Smart Factory and Vision
• USA: Focused on Global Coordination with 3 D printing
• Germany: CPPS: Cyber Physical Production System for smart Factory
• Korea: Smart Factory using ICT
• 제조, ICT, 서비스 산업의 융합에 따라 제조업의 비중이 다시 높아짐
Manufacturing 2.0 Industry 4.0 Manufacturing Innovation 3.0

22. 22
III. After: Smart Factory and Vision
• Vertical Top down -> Horizontal Internet driven
• One way -> Bi-direction
• Wired networks -> Wireless Sensor Network
• SMART(Seamless, Mobility, Autonomous Configuration, Real-time, Traceability)

23. ③
Chungnam Techno Park SaaS based e-Manufacturing Services
② ②
① ①
Green IT
23
III. After: Smart Factory and Vision

24. POP Application
Dabom®-middleware
POP Server
Line 1
Remarks
Bar code reader
Sensors
Touch Panel
IDCU
Hard Wire
Wireless AP 100Mbps Fast Ethernet
Production Status Display Production Status Display
Line 2
Line 3
Line 4
Line 5
Line 6
Line 7
Line 8
Line 9
Line 10
Line 11
Line 12
Warehouse
MES Server &
Dabom®-MES Application
Wireless M2M Device
Wireless bar code reader
Thin client Touch Terminal
24
Implementing production line at Yong-san plant
III. After: Smart Factory and Vision

25. User benefits
III. After: Smart Factory and Vision
Index Detailed index Y Co. Current Target
Time for Work order Delivery time for work order 1H 15M 3M
Time for daily inventory audit
Time for inventory status 5H Real time Real Time
Time for inventory status Report 5H 10M 5M
Time for daily work report generation
Time for work order 3H 15M 5M
Time for summary 2H 15M 5M
Total 16H 55M 18M
Index Detailed index K Co. Current Target
Time for daily inventory status Time for inventory status 3H Real time Real time
Time for daily sales summary
Time for sales summary Real time Real time Real time
Time for report 1H Real time Real time
Audit time
Closing for logistic 15H 10M 5M
Time for financial report (5H) - Real time
Monthly average closing time 10Days 5Days 3일
Total
10Days 19
hours
5Days 10
Min
3 days 5M

27. IV. Lessons learned and recommendation
For Executives of Manufacturing SMEs
- Mindset of what really means by real time for production resources(4M1E)
: Bar coder reader can not cover every issues in production
- Think about TCO (Total cost of ownership)
: Development cost of 30% and maintenance cost of 70%
- Think about bottom-up approach with step by step deployment No Top-Down
For Executives of ICT vendors
- Need a skill set of 4M1E integration in real time for global consulting services
- Need Real time event driven middleware functional support for local maintenance
- Need to train ICT peoples

28. To El Salvador
IV. Lessons learned and recommendation
- Must establish a support organization dedicated for the Government control
: Look at the case in Korean case (Dr. Kim will help you!) and the Smart
Factory program
- Collaboration with global vendors as Korea
: Development cost of 30% and maintenance cost of 70%
- Bench-making of global success cases like the SaaS model for Cloud computing
: Chungnam Techno Park in Korea to be an excellent reference site

29. Gracias !
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