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Factors for
Manufacturing Analytics Success - Part 2:
Designing Data Collection for Consistency
    to Improve Process Management




                ©2011 21CMS All Rights Reserved
Standards Liaison
for Manufacturing Operations
Charlie Gifford
• Thomas Fisher Award for Best Standards Book of Year 2010
• MESA International Outstanding Contribution Award 2007
• Chairman, ISA-95 Best Practices Working Group
• Published over 45 papers and 4 books on Mfg Operations IT
• Director, MESA Global Education Program
• Certified TQM Facilitator / Process Action Team (PAT) Leader, 22 years
• 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
• Standards Work: ISA-84, 88, 95, MESA, SCOR, Many DOD Standards

                               ©2011 21CMS All Rights Reserved
                                                                           2
Agenda
• The Data Collection Problem for Standards-based
  Manufacturing Intelligence
• What Data to Collect
• How to Collect for Data Integrity




                    ©2011 21CMS All Rights Reserved
                                                      3
Mfg 2.0 Requirement: Design for
Global Manufacturing Environment
Mfg 2.0: Evolve Demand-Driven Manufacturing as
a Scalable Adaptable Business Model
• Synchronize manufacturing and supply chain work processes
• Dynamically reconfigurable global 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
                                                              4
Mfg Operations Contribution Required
   •   Right product
   •   Right Quality
   •   Right place                                     Demand
                                                       Forecast
   •   Right time
   •   Right profit margin                         Perfect           SCM
                                                    Order            Cost

                                                     Cash-to-Cash
                                                      Inventory
                                          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 Intelligence
Copyright © 2011 Gartner Group




                                                      ©2011 21CMS All Rights Reserved
                                                                                                          5
Mfg Operations Contribution Required
• Importance of Perfect Order Performance
• 1/10 of the stockouts of their peers
• 15% less inventory
• 17% stronger perfect
   order fulfillment
• 35% shorter cash-to-cash
       cycle times




                        ©2011 21CMS All Rights Reserved
Mfg 2.0 Innovates
Operations Process
   Effectiveness




      ©2011 21CMS All Rights Reserved
Top Line Opportunities are Compelling,
 But More..
Larger benefits from
    continuous
                                                                                          3. Increase Market Share
   improvement:                                                                           And/Or Pursue New Markets
MOM is necessary to                                                                                 Supports collaboration
 achieve this level                                                                                 Supply chain visibility
                                          10X                                                       Platform for continuous
                                                                                                    improvement
   $$ Value of Benefits




                                                                 2. Increase Volume
                                                                 and /or Margins At               Platform for Continuous
                                                                 Same Cost                        Improvement
                                          3X
                                                                  Faster NPI cycle: Shorten innovation innovation
                                                                  Faster NPI cycle – shorten TTM for
                                                                                                     TTM for
                                         1. Reduce                 MOM marketed as competitive tool
                                                                   Customer audit requirements: traceability and genealogy
                                                                   MES marketed as competitive tool traceability and genealogy
                                                                   Customer audit requirements:
                                         Operating                 Promotes flow manufacturing
                                         Costs
                          Average
                                 1X      Lower WIP and FGI                  Reduce indirect labor costs
                                         Reduce waste/scrap/materials       Shorten cycle/flow time
                          payback        Reduce cost of regulatory compliance
                                                                            Improve quality/ reduce process & product
                                         Reduce rework
                          12 Months on   Reduce rework
                                         Reduce maintenance costs
                                                                            variability
                                                                               variability
                                         Reduce maintenance costs           Reduce cost of regulatory compliance
                          1X Benefits
                                         3 - 12 mos.                      12 to 36 mos.
                                                                          12 to 36 mos.                         3 years +
MOM Systems justified
  on cost reduction                          Project payback ranges 6 to 24 months
                                      Copyright © 2011 Gartner Group Report: MES Provides Long-Term Revenue and Market Benefits
                                      Beyond Easy-to-Quantify Operational Cost Savings

                                                               ©2011 21CMS All Rights Reserved
                                                                                                                                  8
Mfg Data Sophistication Determined by
Mfg Work Processes




                 ©2011 21CMS All Rights Reserved
                                                   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
                                                                                     10
Plant Data Collection Issues
• Primary Plant Data Collections:
  • Process and Work Process Data
  • Operations KPIs and Metrics
  • Business Process Data
  • Business Process Metrics




                        ©2011 21CMS All Rights Reserved
                                                          11
Plant Data Collection Issues
• Too many Shop Floor GUIs and Paper Forms from Manual
  Data collections for too many applications
• Too many paper forms are manually transcribed into
  applications with point-to-point interfaces to other applications
Has Led To…..
• Non-value added activities
• Large data translations error propagates poor data Integrity
• No “same shift” feedback:
 • Operators and supervisors MUST CARE about their manual
   data collections



                            ©2011 21CMS All Rights Reserved
                                                                      12
“Automate” Manual Data Collection

                     Data Collection Mechanism for Metrics
 40%
 35%
 30%
 25%
 20%
 15%
 10%
  5%
  0%
        Fully automated        Partially automated               Keyed into         Manual recording
                                                                spreadsheets

                                 Business movers                    Others

   Source: Correlating Plant Performance to Business Performance, © 2010 MESA International & Cambashi Inc.




                                           ©2011 21CMS All Rights Reserved
Focus on Value-Add Data Collections
• User-centric User Interfaces (UI) streamline activities by
  contextualizing all applications to a single UI for each operation
• Orchestrated Manual Data Collection:
       Minimize Typing or Writing
  • Wireless UIs with Single action methods:
    Bar Code Sheets, Menus, Value Inputs, Error Proof ranges
  • Mobile Applications: MS OS, Apple IPAD, Android
  • RFID Mesh Networks
• Contextualized Automated Equipment Data Collections
  • Standard OEM equipment interfaces
  • Rationalize equipment state models for OEE data integrity


                            ©2011 21CMS All Rights Reserved
Business Movers Show Improvement
Requires Rapid Feedback
           How rapidly operational KPIs showed to those
               managing the operations measured
 100%

  80%

  60%

  40%

  20%

  0%
                       Within a shift                               Longer than a shift
                             Business movers                       Others
  Source: Correlating Plant Performance to Business Performance, © 2010 MESA International & Cambashi Inc.




                                          ©2011 21CMS All Rights Reserved
High Value Realized by
  Actionable Accurate Decisions




© All rights reserved. Industrial Management Enhancement, 2011



                                                                 ©2011 21CMS All Rights Reserved
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
                                                                                                    17
Agenda
• The Data Collection Problem for Standards-based
  Manufacturing Intelligence
• What Data to Collect
• How to Collect for Data Integrity




                      ©2011 21CMS All Rights Reserved
                                                        18
Best-in-Class Focus on Perfect Order and
    NPI Supported by Actionable OEE




© 2011, Aberdeen Group. All Rights Reserved.




                                               ©2011 21CMS All Rights Reserved
                                                                                 19
Manufacturing Intelligence Foundation…
                                                              CONTEXTUALIZE ANALYZE
Increasing 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
                                                                                                                                                             20
…Enables 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
                                                                                       Infrastructure
Source: ARC Advisory Group
                                                Production

                                              ©2011 21CMS All Rights Reserved
                                                                                                            21
MESA Metrics Conceptual Framework
                                      Profitability                                                Audience:
                                                                                                                             • Focus on Actionable
                                                                                                   CFO, CEO                    metrics for improvement




                                                               Increasing ability to take action
Increasing aggregation




                                        Corporate
                                        Financials
                                                                                                                             • Link metrics from
                                                                                                   Plant Accounting,
                                    External      Internal
                                                 Strategic
                                                                                                   Finance                     operations to finance
                                   Investors
                                                 Business
                                                                                                                             • Logical links do exist
                                   & Creditors
                                                 Planning


                                                                                                   Plant Management,
                                 Aggregated Financial
                                 & Operations Metrics                                              Operations                • Focus on Financial drill
                                                                                                   Management
                                                                                                                               downs to operations
                                                                                                                               improvement efforts
                                                                                                   Operators, Supervisors,
                               Operations-level KPIs &                                             Quality, Engineers,
                             Dynamic Performance Metrics
                                                                                                   Technicians
                          Plant floor sensors, Operator, and                                            Machine to
                            machine to machine interface                                                 Machine




                                                               ©2011 21CMS All Rights Reserved
Structured Data Provides
Greater Understanding
Knowledge is a Key Enabler of the Knowledge Worker to
Support Problem Solving and Troubleshooting


                                                      Understanding
      INDEPENDENCE




                                                            Understanding Principles
                                   Knowledge
      CONTEXT




                                        Understanding Patterns
                         Information

                             Understanding Relationships
                     Structure Data

                                       UNDERSTANDING


                                       ©2011 21CMS All Rights Reserved
                                                                                       23
Mfg
Master
Data
Mgt.

A Recipe
Management
Example:
Master Data
and its mMDM


                                                 24


               ©2011 21CMS All Rights Reserved
                                                 24
Align
 Mfg Ops
 Master
                  Site Recipe   Product                     Master Work          Master Recipe
 Data                           Definition                  Definition

Product 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
                                                                                                  25
Agenda
• The Data Collection Problem for Standards-based
  Manufacturing Intelligence
• What Data to Collect
• How to Collect for Data Integrity




                      ©2011 21CMS All Rights Reserved
                                                        26
First, Top-down Orchestrated…
Next, Bottom-up Optimized.
Links Plant to Business Performance
                      Links between operations and business
                              KPIs are very effective
  25%
  20%
  15%
  10%
    5%
    0%
                     Business Movers                                          Others
  Source: Correlating Plant Performance to Business Performance, © 2010 MESA International & Cambashi Inc.



                                            ©2011 21CMS All Rights Reserved
Understand Plant’s Role in Supply Chain:
   SCOR’s 5 Management Processes
                                                                   Plan



           Deliver   Source      Make    Deliver    Source          Make              Deliver   Source   Make   Deliver   Source
           Return Return                 Return                                                                 Return    Return
                                                     Return                          Return     Return



  Suppliers’                  Supplier                       Your Company                            Customer Customer’s
   Supplier                                                                                                      Customer
                     Internal or External                                                       Internal or External

                                                               SCOR Model
                                                    Building Block Approach
                                                   Processes             Metrics
                                                   Best Practice         Technology
Copyright © 2011 Supply-Chain Council All rights reserved.



                                                              ©2011 21CMS All Rights Reserved
Top-Up Metrics Based on Business
  Process Metrics Decomposition




© All rights reserved. Industrial Management Enhancement, 2011



                                                                 ©2011 21CMS All Rights Reserved
Bottom-Up KPI Hierarchy based on
VSM and URS Process Definitions




           © All rights reserved. Industrial Management Enhancement, 2011

                              ©2011 21CMS All Rights Reserved
Data Collections from
Value Stream Maps and 6 Sigma…
Enable Manufacturing Transformation
             Lead Time/Cycle Time
                                                              Lean Attacks Waste
   Process

               Value Add Time                                 Six Sigma Attacks Variation
               Non Value Add Time



FOCUS on continuous improvement data collections:
• Lean … Cycle time reduction and waste elimination
• Six Sigma … Defect reduction and variation control
                                                                                            31


                                ©2011 21CMS All Rights Reserved
URS Defines Operations, Information
   Flows, Data Collections, and Timings
                                     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                                                                 Setup/                    Setup’
         Operations                                                                Maintain                  Maintain
        Management
                         LEVEL 2 Data Inputs and Outputs: Manual and Automated
Copyright © 2011 ISA



                                                       ©2011 21CMS All Rights Reserved
                                                                                                                                          32
ISA-95 Object Models Define
Data Exchanges & Data Models
4 Resource Categories                       4 Information Categories
         Resources               Product/Operations                       Capability

                                    Product & Operations                  Product

People    Equipment Materials            Definition
                                                                   Time
                                                                  Production & Operations
                                                                        Capability

  Structure / View                           Production


                                         Production & Operations Schedule
 Process & Operations
      Segments
                                      Production & Operations Performance

                                ©2011 21CMS All Rights Reserved
                                                                                       33
Correlate Data 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                                                  Analytics
                              Resource                              Production             for KPIs
                              Management                            Tracking

                                               Production                           Product
                                               Dispatching                          Analysis
                              Product                               Production
                              Definition                            Data                       Production
                              Management                            Collection                 Analysis

From ANSI/ISA-95.00.03-2007
                                               Production                           Process
Copyright © 2010 ISA. Used with
permission. www.isa.org
                                               Execution                            Analysis


                                     Level 2 Process Control / Plant Work
                                                  ©2011 21CMS All Rights Reserved
                                                                                                            34
Production Operations Depends
   on Operations Data 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                                                                                                                                       Inventory
                   resource                                                                         Maintenance                                                    Quality test
                                              tracking                           resource                                           test resource                                                       resource
                 management                                                                           tracking                                                      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 Control:
ANSI/ISA-95.00.03-2006 Inputs and Outputs are Bi-Directional Data Collections
Copyright © ISA 2011.



                                                                                                    ©2011 21CMS All Rights Reserved
                                                                                                                                                                                                                                                           35
Conclusion
• Too much data…Poorly collected for today’s modern manufacturing
  environment…with predictably disastrous results
1. Assess and Define processes for each operation to understand quality
   impact of product and processes: Their information flows, data, & timings
2. Successful systems
   1.   Define and maintain consistent data formats
   2.   Design for compliance with industry standards for MDM governance
   3.   Design value-add data collections for Actionable control of process
   4.   Design data collection methods to deliver high integrity data
3. Provide actionable “same shift” feedback on processes to establish a solid
   foundation for process management and continuous improvement




                                 ©2011 21CMS All Rights Reserved
                                                                                36
Question and Answer


 Charlie Gifford
 President
 21st Century Manufacturing Solutions LLC
 charlie.gifford@cox.net
 208-309-0990




                        ©2011 21CMS All Rights Reserved
Working Notes
 •   Problem
 •   Too many GUIs, too many applications
 •   Non-value added activity
 •   Data translations, Data Integrity
 •   Same shift feedback: Metrics that matters
 •   What
 •   VSM required
 •   Metrics SCOR, MESA
 •   How and Governance? Master Data
 •   Mfg 2.0 User centric interfaces: Work and work cell specifics
 •   RFID, Mesh Networks, Wireless, Automated, Paper, spreadsheet, HMI, IPAD
 •   MS OS, Apple, Android
 •   Bar Codes, Menus, Value inputs, Error Proofing ranges
 •   Equipment interfaces
 •   State models
 •   Companies that fail to manage their data properly can’t remain competitive. Product data
     management, though, is only as effective as the quality of data being managed. Poor data
     quality can lead to endless headaches and poor decision making.

                                         ©2011 21CMS All Rights Reserved
                                                                                                38
MOM User and Functional Requirements
Define 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 define processes, resources, data, 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
                                                                                   39

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Designing Data Collection for Consistency that Improves Process Management

  • 1. Factors for Manufacturing Analytics Success - Part 2: Designing Data Collection for Consistency to Improve Process Management ©2011 21CMS All Rights Reserved
  • 2. Standards Liaison for Manufacturing Operations Charlie Gifford • Thomas Fisher Award for Best Standards Book of Year 2010 • MESA International Outstanding Contribution Award 2007 • Chairman, ISA-95 Best Practices Working Group • Published over 45 papers and 4 books on Mfg Operations IT • Director, MESA Global Education Program • Certified TQM Facilitator / Process Action Team (PAT) Leader, 22 years • 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 • Standards Work: ISA-84, 88, 95, MESA, SCOR, Many DOD Standards ©2011 21CMS All Rights Reserved 2
  • 3. Agenda • The Data Collection Problem for Standards-based Manufacturing Intelligence • What Data to Collect • How to Collect for Data Integrity ©2011 21CMS All Rights Reserved 3
  • 4. Mfg 2.0 Requirement: Design for Global Manufacturing Environment Mfg 2.0: Evolve Demand-Driven Manufacturing as a Scalable Adaptable Business Model • Synchronize manufacturing and supply chain work processes • Dynamically reconfigurable global 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 4
  • 5. Mfg Operations Contribution Required • Right product • Right Quality • Right place Demand Forecast • Right time • Right profit margin Perfect SCM Order Cost Cash-to-Cash Inventory 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 Intelligence Copyright © 2011 Gartner Group ©2011 21CMS All Rights Reserved 5
  • 6. Mfg Operations Contribution Required • Importance of Perfect Order Performance • 1/10 of the stockouts of their peers • 15% less inventory • 17% stronger perfect order fulfillment • 35% shorter cash-to-cash cycle times ©2011 21CMS All Rights Reserved
  • 7. Mfg 2.0 Innovates Operations Process Effectiveness ©2011 21CMS All Rights Reserved
  • 8. Top Line Opportunities are Compelling, But More.. Larger benefits from continuous 3. Increase Market Share improvement: And/Or Pursue New Markets MOM is necessary to Supports collaboration achieve this level Supply chain visibility 10X Platform for continuous improvement $$ Value of Benefits 2. Increase Volume and /or Margins At Platform for Continuous Same Cost Improvement 3X Faster NPI cycle: Shorten innovation innovation Faster NPI cycle – shorten TTM for TTM for 1. Reduce MOM marketed as competitive tool Customer audit requirements: traceability and genealogy MES marketed as competitive tool traceability and genealogy Customer audit requirements: Operating Promotes flow manufacturing Costs Average 1X Lower WIP and FGI Reduce indirect labor costs Reduce waste/scrap/materials Shorten cycle/flow time payback Reduce cost of regulatory compliance Improve quality/ reduce process & product Reduce rework 12 Months on Reduce rework Reduce maintenance costs variability variability Reduce maintenance costs Reduce cost of regulatory compliance 1X Benefits 3 - 12 mos. 12 to 36 mos. 12 to 36 mos. 3 years + MOM Systems justified on cost reduction Project payback ranges 6 to 24 months Copyright © 2011 Gartner Group Report: MES Provides Long-Term Revenue and Market Benefits Beyond Easy-to-Quantify Operational Cost Savings ©2011 21CMS All Rights Reserved 8
  • 9. Mfg Data Sophistication Determined by Mfg Work Processes ©2011 21CMS All Rights Reserved 9
  • 10. 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 10
  • 11. Plant Data Collection Issues • Primary Plant Data Collections: • Process and Work Process Data • Operations KPIs and Metrics • Business Process Data • Business Process Metrics ©2011 21CMS All Rights Reserved 11
  • 12. Plant Data Collection Issues • Too many Shop Floor GUIs and Paper Forms from Manual Data collections for too many applications • Too many paper forms are manually transcribed into applications with point-to-point interfaces to other applications Has Led To….. • Non-value added activities • Large data translations error propagates poor data Integrity • No “same shift” feedback: • Operators and supervisors MUST CARE about their manual data collections ©2011 21CMS All Rights Reserved 12
  • 13. “Automate” Manual Data Collection Data Collection Mechanism for Metrics 40% 35% 30% 25% 20% 15% 10% 5% 0% Fully automated Partially automated Keyed into Manual recording spreadsheets Business movers Others Source: Correlating Plant Performance to Business Performance, © 2010 MESA International & Cambashi Inc. ©2011 21CMS All Rights Reserved
  • 14. Focus on Value-Add Data Collections • User-centric User Interfaces (UI) streamline activities by contextualizing all applications to a single UI for each operation • Orchestrated Manual Data Collection: Minimize Typing or Writing • Wireless UIs with Single action methods: Bar Code Sheets, Menus, Value Inputs, Error Proof ranges • Mobile Applications: MS OS, Apple IPAD, Android • RFID Mesh Networks • Contextualized Automated Equipment Data Collections • Standard OEM equipment interfaces • Rationalize equipment state models for OEE data integrity ©2011 21CMS All Rights Reserved
  • 15. Business Movers Show Improvement Requires Rapid Feedback How rapidly operational KPIs showed to those managing the operations measured 100% 80% 60% 40% 20% 0% Within a shift Longer than a shift Business movers Others Source: Correlating Plant Performance to Business Performance, © 2010 MESA International & Cambashi Inc. ©2011 21CMS All Rights Reserved
  • 16. High Value Realized by Actionable Accurate Decisions © All rights reserved. Industrial Management Enhancement, 2011 ©2011 21CMS All Rights Reserved
  • 17. 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 17
  • 18. Agenda • The Data Collection Problem for Standards-based Manufacturing Intelligence • What Data to Collect • How to Collect for Data Integrity ©2011 21CMS All Rights Reserved 18
  • 19. Best-in-Class Focus on Perfect Order and NPI Supported by Actionable OEE © 2011, Aberdeen Group. All Rights Reserved. ©2011 21CMS All Rights Reserved 19
  • 20. Manufacturing Intelligence Foundation… CONTEXTUALIZE ANALYZE Increasing 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 20
  • 21. …Enables 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 Infrastructure Source: ARC Advisory Group Production ©2011 21CMS All Rights Reserved 21
  • 22. MESA Metrics Conceptual Framework Profitability Audience: • Focus on Actionable CFO, CEO metrics for improvement Increasing ability to take action Increasing aggregation Corporate Financials • Link metrics from Plant Accounting, External Internal Strategic Finance operations to finance Investors Business • Logical links do exist & Creditors Planning Plant Management, Aggregated Financial & Operations Metrics Operations • Focus on Financial drill Management downs to operations improvement efforts Operators, Supervisors, Operations-level KPIs & Quality, Engineers, Dynamic Performance Metrics Technicians Plant floor sensors, Operator, and Machine to machine to machine interface Machine ©2011 21CMS All Rights Reserved
  • 23. Structured Data Provides Greater Understanding Knowledge is a Key Enabler of the Knowledge Worker to Support Problem Solving and Troubleshooting Understanding INDEPENDENCE Understanding Principles Knowledge CONTEXT Understanding Patterns Information Understanding Relationships Structure Data UNDERSTANDING ©2011 21CMS All Rights Reserved 23
  • 24. Mfg Master Data Mgt. A Recipe Management Example: Master Data and its mMDM 24 ©2011 21CMS All Rights Reserved 24
  • 25. Align Mfg Ops Master Site Recipe Product Master Work Master Recipe Data Definition Definition Product 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 25
  • 26. Agenda • The Data Collection Problem for Standards-based Manufacturing Intelligence • What Data to Collect • How to Collect for Data Integrity ©2011 21CMS All Rights Reserved 26
  • 27. First, Top-down Orchestrated… Next, Bottom-up Optimized. Links Plant to Business Performance Links between operations and business KPIs are very effective 25% 20% 15% 10% 5% 0% Business Movers Others Source: Correlating Plant Performance to Business Performance, © 2010 MESA International & Cambashi Inc. ©2011 21CMS All Rights Reserved
  • 28. Understand Plant’s Role in Supply Chain: SCOR’s 5 Management Processes Plan Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source Return Return Return Return Return Return Return Return Suppliers’ Supplier Your Company Customer Customer’s Supplier Customer Internal or External Internal or External SCOR Model Building Block Approach Processes Metrics Best Practice Technology Copyright © 2011 Supply-Chain Council All rights reserved. ©2011 21CMS All Rights Reserved
  • 29. Top-Up Metrics Based on Business Process Metrics Decomposition © All rights reserved. Industrial Management Enhancement, 2011 ©2011 21CMS All Rights Reserved
  • 30. Bottom-Up KPI Hierarchy based on VSM and URS Process Definitions © All rights reserved. Industrial Management Enhancement, 2011 ©2011 21CMS All Rights Reserved
  • 31. Data Collections from Value Stream Maps and 6 Sigma… Enable Manufacturing Transformation Lead Time/Cycle Time Lean Attacks Waste Process Value Add Time Six Sigma Attacks Variation Non Value Add Time FOCUS on continuous improvement data collections: • Lean … Cycle time reduction and waste elimination • Six Sigma … Defect reduction and variation control 31 ©2011 21CMS All Rights Reserved
  • 32. URS Defines Operations, Information Flows, Data Collections, and Timings 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 Setup/ Setup’ Operations Maintain Maintain Management LEVEL 2 Data Inputs and Outputs: Manual and Automated Copyright © 2011 ISA ©2011 21CMS All Rights Reserved 32
  • 33. ISA-95 Object Models Define Data Exchanges & Data Models 4 Resource Categories 4 Information Categories Resources Product/Operations Capability Product & Operations Product People Equipment Materials Definition Time Production & Operations Capability Structure / View Production Production & Operations Schedule Process & Operations Segments Production & Operations Performance ©2011 21CMS All Rights Reserved 33
  • 34. Correlate Data 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 Analytics Resource Production for KPIs Management Tracking Production Product Dispatching Analysis Product Production Definition Data Production Management Collection Analysis From ANSI/ISA-95.00.03-2007 Production Process Copyright © 2010 ISA. Used with permission. www.isa.org Execution Analysis Level 2 Process Control / Plant Work ©2011 21CMS All Rights Reserved 34
  • 35. Production Operations Depends on Operations Data 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 Inventory resource Maintenance Quality test tracking resource test resource resource management tracking 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 Control: ANSI/ISA-95.00.03-2006 Inputs and Outputs are Bi-Directional Data Collections Copyright © ISA 2011. ©2011 21CMS All Rights Reserved 35
  • 36. Conclusion • Too much data…Poorly collected for today’s modern manufacturing environment…with predictably disastrous results 1. Assess and Define processes for each operation to understand quality impact of product and processes: Their information flows, data, & timings 2. Successful systems 1. Define and maintain consistent data formats 2. Design for compliance with industry standards for MDM governance 3. Design value-add data collections for Actionable control of process 4. Design data collection methods to deliver high integrity data 3. Provide actionable “same shift” feedback on processes to establish a solid foundation for process management and continuous improvement ©2011 21CMS All Rights Reserved 36
  • 37. Question and Answer Charlie Gifford President 21st Century Manufacturing Solutions LLC charlie.gifford@cox.net 208-309-0990 ©2011 21CMS All Rights Reserved
  • 38. Working Notes • Problem • Too many GUIs, too many applications • Non-value added activity • Data translations, Data Integrity • Same shift feedback: Metrics that matters • What • VSM required • Metrics SCOR, MESA • How and Governance? Master Data • Mfg 2.0 User centric interfaces: Work and work cell specifics • RFID, Mesh Networks, Wireless, Automated, Paper, spreadsheet, HMI, IPAD • MS OS, Apple, Android • Bar Codes, Menus, Value inputs, Error Proofing ranges • Equipment interfaces • State models • Companies that fail to manage their data properly can’t remain competitive. Product data management, though, is only as effective as the quality of data being managed. Poor data quality can lead to endless headaches and poor decision making. ©2011 21CMS All Rights Reserved 38
  • 39. MOM User and Functional Requirements Define 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 define processes, resources, data, 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 39