1. Mfg. Operations Standards Need to Converge into a Manufacturing Application Integration Framework
Charlie Gifford
Director
Lean Production Management

2. Agenda
“What are the tough implementation problems (infrastructure, standards) that must be solved to make “smart assembly” a reality?”
State of 21st Century Plant and Production Mgt. Technology
Challenges for B2M and B2B
Interoperability Maturity Model
Significant Events in Mfg Operations Standards
What is Business-to-Manufacturing Integration?
A View into an Evolving Manufacturing Application Framework
5 minutes of Discussion

3. GE’s Standards Liaison for Manufacturing Operations
Charlie Gifford, Director of Lean Production Management
Chairman, ISA95 Best Practices Working Group
Chairman, ISA95 Part 4 Quality Test Ops Mgt Working Group
Voting Member, ISA88 & ISA95 Committee
ISA95 Representative, ISA95/SCOR Alignment Working Group
Information Member: ISA99
GE Representative, Mfg Interoperability Guideline Working Group
GE Representative, MESA Technical Committee
Director, ISA Computer Technology Division 97-99
GE Representative, SCOR MAKE Committee
Chairman, Editorial Board, Industrial Computing Magazine 98-02
Published over 35 papers on Industrial Computing
Standards Work: ISA84, 88, 95, MESA, SCOR, Many DOD Standards

4. Aligning Mfg. Capabilities to 21st Century Challenges Mandates Change…
20th Century Manufacturing Flow
Customers
Suppliers
Manufacturers
Dist
Retailers
Supplier
Exchanges
Logistics
Exchanges
Customer
Exchanges
Virtual Mfg.
Logistics Providers
CMs
AMR Research:
All rights reserved.

5. Business Evolves into Configurable Demand-Driven Supply Chains
Need:
Production
Capability
Customer DC
Supplier
Plant
Customer DC
Supplier
Customer DC
Supplier
Customer DC
Supplier
Customer DC
AMR Research:
All rights reserved.
Customer
DC – Dist. Channel
Order to ship 48 hours – sold today, production order tomorrow, ship following day
Production tracks demand closely – implications for manufacturing –
DFM, product rationalization, (Schneider NA – switches) Production optimized for batch size of 1 – project payback anticipated 3 years – actual achieved 1X return in 6 months. MES/automation project. 1994

6. Evaluate: Customer Value + OTD + Configured Production Capability = Profit Margin
AMR Research:
All rights reserved.
21st Century Manufacturing Enablers:
Flexibility & Real-Time Visibility

7. Challenges of B2M and B2B Communication and Processes
Many different applications across the enterprise doing the same function
No enterprise wide application and information architecture
Several versions of “enterprise-objects” or language for Product, Customer, Order, etc.
This is a good news / bad news message
The good news is that as organizations, most everyone is in the same boat. The bad news is that most everyone has a big problem with applications.
Legacy is a big issue to everyone. So we are all in the same boat.

8. Challenges of B2M and M2M Integration
Effective and Flexible Mfg. Operations
…..HARD TO DO!
Various Forms of the MES / ERP solution:
Industry-specific production types
Mixture of work order types across plant
Speed and Volume of Throughput
Standardization of work flow “best practices”
Must Allow Change in Production Processes Without requiring change in logistics system
Provide a clear demarcation of MES / ERP responsibilities and functions
Business
Logistics
Manufacturing
Operations

9. Technology S Curve: Challenge Explained
Also Applies to Methods Development:
Delivery, Training, User, Support and Change disciplines
HMI / SCADA / PLC
ERP
SCM
MES / PM
It is against this backdrop that global manufacturers are getting back to the basics and focusing attention on their core manufacturing capabilities.
Why now?
Fortune 1000 manufacturers have been in the midst of massive ERP rollouts and consolidations – these are wrapping up and businesses are slowly discovering that ERP alone is not enough to achieve the level of operational excellence many had hoped for – or been promised.
Companies have also been working to lean out their supply chains and procurement processes, and are awakening to the realization that manufacturing – or you can think of is as the ability to reliably supply product into these lean supply chains - is a critical capability that’s been starved for investments for nearly a decade.
So if you look at what the gating factor is for making that next leap in operational excellence, it boils down to manufacturing itself. There’s been a lot of talk about demand visibility and the impact of demand visibility on performance.
In fact, benchmarking studies we’ve done here at AMR show that slight increases in demand visibility yield substantial improvements in what we call “perfect order” performance – and profitability. Industry leaders have figured this out, but when you look at the leaders, they’ve also invested in the manufacturing capabilities needed to respond to the demand.
So the real takeaway here is that even demand visibility isn’t enough if you can’t respond to that demand with high quality products out of the gate.
In short – you can have the best demand visibility in the world, but it’s not going to matter if you can’t get a quality product out the door.

10. 2006 Top Strategic Platform Investments Focus on Mfg Operations!
Customer Management
14%
11%
34%
ERP
39%
Product Lifecycle Management 5% 4%
Sourcing and Procurement 3% 3%
Supply Chain Management
15%
12%
Manufacturing
21%
Operations
22%
Desktop software 9%
10%
It is against this backdrop that global manufacturers are getting back to the basics and focusing attention on their core manufacturing capabilities.
Why now?
Fortune 1000 manufacturers have been in the midst of massive ERP rollouts and consolidations – these are wrapping up and businesses are slowly discovering that ERP alone is not enough to achieve the level of operational excellence many had hoped for – or been promised.
Companies have also been working to lean out their supply chains and procurement processes, and are awakening to the realization that manufacturing – or you can think of is as the ability to reliably supply product into these lean supply chains - is a critical capability that’s been starved for investments for nearly a decade.
So if you look at what the gating factor is for making that next leap in operational excellence, it boils down to manufacturing itself. There’s been a lot of talk about demand visibility and the impact of demand visibility on performance.
In fact, benchmarking studies we’ve done here at AMR show that slight increases in demand visibility yield substantial improvements in what we call “perfect order” performance – and profitability. Industry leaders have figured this out, but when you look at the leaders, they’ve also invested in the manufacturing capabilities needed to respond to the demand.
So the real takeaway here is that even demand visibility isn’t enough if you can’t respond to that demand with high quality products out of the gate.
In short – you can have the best demand visibility in the world, but it’s not going to matter if you can’t get a quality product out the door.
Most Important (n=442)
Largest Dollar (n=439)
Source: AMR Research 2006 IT Spend Survey

11. Interoperability Maturity Models Applied to Logistics and Operations Systems
Level of Information System Interoperability (LISI)
Framework scopes connectivity level for technical interoperability
Does not account for system response required for mfg. workflows
And other organizations even up to the Department of Defense had tried to put together interoperability measurements for all parts of a system.
Dept. of Defense

12. Efforts Now on How to Model Systems to Business Process Before Going Live
Levels of Conceptual Interoperability Model (LCIM) provides a framework for planning your data before modeling your application
And a group close to our home office in Charlottesville Virginia, is trying to put together a model for you to access your data before you even put together your system for modeling. Everyone knows that a project that is planned ahead and modeled before implementation usually goes a lot smoother at time of installation.
Virginia Modeling, Analysis & Simulation Center
Old Dominion University

13. Lean Manufacturing Transformation Road Map
Common ISA-95 Definition of Work Unit and Flows and their Resources “Leans Out” Business Tools and Processes
Single Piece Flow, Line Balancing and Thoughput
Analytics, Reporting, Alarm & Event
Shop Loading, Scheduling, & Dispatching
Method comparisons of Activities and Work
Budge Cost Estimating
Standard Costing or Activity Based Costing Metrics
Labor performance measurement and control
Manpower and production requirements
Payment by results (incentives)
Business Cost justification
Simplified PLM (Standard Design & Planning for Methods for Product, Manufacturing & Quality)
MOM Architecture Administration & Project Management
Build Single Schema to Accelerate

14. Standardization Effect of Mfg. Application Framework
S =Standardization
I = Improvement
Key elements behind standardization are:
Takt time scheduling
Standard Work towards single schema & process
Route & Recipe verification process
Change mgt. process
The Lean MES Improvement Cycle, graph below, illustrates the typical basic process used to continuously improve the manufacturing environment and conduct change management as new products, new technologies, and market changes alter the optimized environment.
Effect of ISA95 together with Lean process and 6 Sigma production improvements

15. Lots of Standards Convergence Activity: 10+ Years of Work Moves toward Product

16. OMAC-ISA Activity

17. An Integration Evolution: MIG WG Manufacturing Domain Mapping
Data Modeling: Real-Time Data Aggregation vs. Business Process Transactions
OPC UA
OAGIS, SCOR
Level 5+: Inter-Enterprise
OAGIS, SCOR
Level 4+: Enterprise
MIMOSA
Hybrid
ISA-99
Discrete
Process
Level 3:
Manufacturing Operations
ISA-95
ISA-88
OAGIS
B2MML
OPC: DA, HDA, A&E
OMAC
Levels 2, 1, 0:
Machine / Plant Work

18. Operations Management
ISA-95 & Purdue Hierarchy Model Defines MOM and ERP+ Domains for Information Exchanges
Business Planning
& Logistics
Plant Production Scheduling,
Operational Management, etc
4 - Establishes the basic plant schedule - production, material use, delivery, and shipping. Determines inventory levels.
Time Frame
Months, weeks, days
ISA 95.01, .02, & .05 Standards
3 - Work Unit and Flow Defined. Work flow / recipe control produces desired end products. Analyzes Work Data, Maintains records and optimizes the production process.
Time Frame
Days, Shifts, hours, minutes, seconds
Manufacturing
Operations Management
Dispatching Production, Detailed Production
Scheduling, Reliability Assurance, ...
ISA 95.03, & .06 Standards
2 - Work unit (operation): Monitor, supervisory control and automated control of the production work process
Batch
Control
Continuous
Control
Discrete
Control
1 - Sensing of production work process, manipulate the production work process
0 - The actual production work process

19. Manufacturing Application Framework and Transformation Methodology
Functional Segregation
& Metrics
by Scenarios and Domain
Functions &
Data Flows
of Interest
Supply Chain & Mfg. Scenario & Metrics
Domain
Definitions QA
Service
R&D
Inbound
Logistics -
Mfg.
Ops.
Production
Package
Inputs
(Supplier)
Conversion
(Mfg.)
Distribution
Consumer
Material
Prep
Out-
bound
Mkting
& Sales
Assembly
Metrics Construction
Categories for
Information Analytics
Information Data Model, Objects and
Definitions
Manufacturing Use Case Metrics
Use Cases and Transaction Set Construction
Company Production Canonical Schema
From ANSI/ISA Copyright ISA Used with permission.

20. ISA-95 Functional Enterprise-Control Model
Procurement
(5.0)
Production
Scheduling
(2.0)
Material and
Energy Control
(4.0)
Product
Inventory
Control(7.0)
Product Cost
Accounting
(8.0)
Quality
Assurance
(6.0)
Shipping Admin
(9.0)
Order
Processing
(1.0)
Control
(3.0)
Maintenance
Management
(10.0)
Research Development
& Engineering
Marketing
& Sales
ISA S95
Part 1&2
Remind them that the ellipses are functions, the solid arrows indicate information flows that are defined, the dotted arrows indicate information flows that are not defined in the model.
The overlapping shape is really where the scope of manufacturing operations exists, this includes some of the activities of maintenance management, QA, material & energy control, scheduling, and product inventory control (as required to meet the goals of regulatory compliance, safety, and quality)
Order processing
Production scheduling
Production control
Material and energy management
Procurement
Quality assurance
Product inventory control
Product cost accounting
Product shipping administration
Maintenance management
Research development & engineering
Marketing & sales
From ISA-95 Copyright ISA Used with permission.

21. Production Capability Production Performance
ISA 95: 4x4 Object Model Defines Production Work for B2M Data Exchanges
4 Resource Categories
4 Information Categories
Resources
Product Definition
Product
Product
Time
Production Capability
Capability
People
Equipment
Materials
Production Schedule
Production Performance
Production
Structure / View
Segments
From ISA-95 Copyright ISA Used with permission.

22. First, Lets Understand Primary Drivers for
MOM / ERP+ Segregation Requirements
Work Flow Complexity Matrix
Production Types
Discrete Manufacturing
Batch Processing
Continuous Processing
Work Order Types
Engineer-to-Order (ETO)
Make-to-Order (MTO)
Make-to-Stock (MTS)
9 Mfg. Scenarios (with hybrids) of Production and WO Types
Each have a specific set of business processes and rules
Contributors: Legacy, Speed, Volume, Size, Compliance, SKU Count
Packaging &
Assembly
Complexity
Production
Mtl. Prep
Complexity= interfaces (ERP, Quality, Maintenance, PLM, Inventory), Support processes (WI, CAPA, CID, Scheduling, Maintenance), 1X to 3X, Custom vs. Configuration. The work flow data model changes as the WIP matures across the plant.

23. Level 2 Process Control/ Plant Work
Interoperability Interface Depends on Production Environment, Industry, Products…
Production
Capability
Performance
Schedule
Product
Definition
D/B-ETO
Detailed
Production
Scheduling
B-MTO
Production
Resource Mgt.
Production
tracking
B/P-MTO
Production
Dispatching
Production
Performance
Analysis
P-MTS
Product
Definition Mgt.
Production
Data Collection
P-MTS
Production
Execution
Level 2 Process Control/ Plant Work
From ISA-95 Copyright ISA Used with permission.

24. Level 4+: Extended Enterprise
System Function Segregation & Interoperability Determines Lean Performance
ISA “- Part 3: Activity Models of MOM”
Maintenance
Production
Quality Test
Inventory
Level 4+: Extended Enterprise
Maintenance
Definitions
Maintenance
Capability
Maintenance
Request
Maintenance
Response
Product
Definition
Production
Capability
Production
Schedule
Production
Performance
Quality
Definitions
Quality Test
Capability
Quality Test
Request
Quality Test
Response
Inventory
Definitions
Inventory
Capability
Inventory
Request
Inventory
Response
B2M
Detailed maintenance
scheduling
Detailed
production
scheduling
Detailed quality test
scheduling
Detailed inventory
scheduling
Maintenance
resource
management
Maintenance
tracking
Production
resource
management
Production
tracking
Quality
test resource
management
Quality test
tracking
Inventory
management
resource
Inventory
tracking U
Maintenance
dispatching
Maintenance
analysis
Production
dispatching
Production
performance
analysis
Quality test
dispatching
Quality
analysis
Inventory
dispatching
Inventory
analysis
Maintenance
definition
management
Maintenance
data
collection
Product
definition
management
Production
data
collection
Quality
definition
management
Quality
test data
collection
Inventory
definition
management
Inventory
data
collection
Maintenance
execution
Production
execution
Quality test
execution
execution
Inventory
What user execute what function and what system executes what function in the mfg ops workflows?
Level 2: Plant Work
Manufacturing Application (Use Case) Framework (MAF)
System Architecture Must Support Continuous Improvement
Must Allow Change in Production Processes
Clear demarcation of MOM / ERP+ responsibilities & functions
From ISA-95 Copyright ISA Used with permission.

25. Current State of Integration
Mostly at the data level
Mostly point to point
Custom program interfaces or flat file exchange
Grows at exponential rate
Our (OAGi) experience in seeing hundreds or more organizations tell us that most integration is done at the data level today. (not process).
Also people are doing point to point connections, uniquely to each business partner, even in the EDI world.
Because this work is all custom, the model grows according to the N-squared Model.
This leaves us all in the same place of trying to break out from this dilemma. We are spending so much on maintaining what we have, we have no money to fix the problem. Just maintain status quo.

26. Integration Technology Evolves From Data to Process Level Capabilities…
Integration Architecture Patterns
Point to Point (Custom)
Enterprise
Application
Integration
Business Process Management
Message Oriented Middleware
Object Brokers
Service
Oriented
Architecture
Continually Evolving
Data Replication & File Transfer
Extract Transform Load (ETL)
Enterprise
Service
Bus
The preferred template works with a wider margin allowing easier readability and a cleaner, more professional look.
© CSC All rights reserved.
Application Servers
Workflow
Web Services

27. BUT….Semantic Layer in Integration is Lagging
Interoperability requires interfaces to be standardized. Only 5% of the interface is a function of the middleware. The other 95% is a function of the application semantics. (Gartner Group)
95% 5%
Application Integration Semantics
Messaging and Transport Services

28. OAGIS® 9.0 Scope Provides Business Semantics
Domains Addressed
eCommerce 10 Years in the Field
Manufacturing
Logistics
CRM
ERP
70 Business Scenarios, 434 Messages (BODs)
77 Nouns (Common Objects) & 12 Verbs Defined
7 Workgroups of new Content
More localization for more International support
UN/CEFACT/ISO compliant
ISO 11179, CCTS 2.01/ISO , TBG17 BIE/ABIE

29. OAGIS B2M Integration: ISA95/OAGIS Convergence
Plant Functions
Product Definitions and Production Capabilities
Production Orders
WIP and Inventory Status
Order Completion & Resource Consumption
BODS
Sync/Get/Show ItemMaster
Sync/Get/Show Production Order
Get/Show/Update Inventory Count
Get & Show Consumption
Sync/Get/Show Inventory
Sync/Get/Show Routing
Get/Show/Confirm Inventory Issue
Allocate Costing Activity
Sync/Get/Show Unit of Measure Group
Sync/Get/Show Dispatch List
Issue/Receive Inventory Movement
Update Inspection
Sync/Get/Show Bill Of Material
Sync/Get/Show Maintenance Order
Get/Show/Update WIP Confirm
Get/Show/Sync Engineering Change Document
Sync/Get/Show Planning Schedule
Process WIP Merge
Sync/Get/Show Engineering Work Document
Sync/Get/Show Sequence Schedule
Process WIP Move
Show Shipment Schedule
Sync/Get/Show Planning Schedule
Sync/Get/Show Employee Schedule
Process WIP Recover
Show Shipment
Sync/Get/Show Sequence Schedule
Process WIP Split
Get/Show/Update Picklist
Sync/Get/Show Inspection
Get/Show WIP Status
Time & Attendance

30. MAF Best Practice Transformation Methodology
Utilizes ISA95 with other Models throughout Best Practices
ISA95/MESA BP Working Group: Book 1.0, December 2006
Step 1: (Define)
Train Staff on Technical Applications used to benchmark & design business process in Methodology (Steps 2-4)
Step 2: (Define, Measure, Analyze)
Structured Mfg. Ops. Assessment and Schema Migration Plan
Step 3: (Analyze, Improve, Control)
Accelerated MOM Application Implementation & Transformation
Step 4: (Analyze, Improve, Control)
Life Cycle Management of MOM Application, Interfaces & Metrics

31. Smart Assembly Need Methods for Schema, Process, & Lean 6 Sigma Transformations
Interoperable MOM / ERP solutions require consistent:
Production Data Model and Schema based on Work Definition
Functional and Data Exchange Models
Consistent Message Structure from M2B and B2M
Methodology for MOM / ERP integration
Single Production Schema Reinforces Lean practices such as:
Standard work flow practices across MOM Activities:
Production, Quality, Maintenance, & Inventory Operations
Schedule/Dispatch, Data entry methods, CID, ECO, Routes, etc.
Cross-training operators and mechanics:
Common work definition for operations and resources
Single XML production schema across all MOM applications simplify Data Collection, Analytics, Interfaces and Reporting

32. Questions? Charlie Gifford charlie.gifford@ge.com
Director-Lean Performance Mgt.
GE Fanuc America
Chairman, ISA-95 Best Practices Working Group