Mfg Operations Standards Need to Converge into a

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

Agenda “What are the tough implementation problems (infrastructure, standards) that must be solved to make “smart assembly” a reality? ” 1. State of 21 st Century Plant and Production Mgt. Technology 2. Challenges for B 2 M and B 2 B 3. Interoperability Maturity Model 4. Significant Events in Mfg Operations Standards 5. What is Business-to-Manufacturing Integration? 6. A View into an Evolving Manufacturing Application Framework Ø 5 minutes of Discussion

GE’s Standards Liaison for Manufacturing Operations Charlie Gifford, Director of Lean Production Management – Chairman, ISA 95 Best Practices Working Group – Chairman, ISA 95 Part 4 Quality Test Ops Mgt Working Group – Voting Member, ISA 88 & ISA 95 Committee – ISA 95 Representative, ISA 95/SCOR Alignment Working Group – Information Member: ISA 99 – 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: ISA 84, 88, 95, MESA, SCOR, Many DOD Standards

Aligning Mfg. Capabilities to 21 st Century Challenges Mandates Change… 20 th Century Manufacturing Flow Suppliers Manufacturers Supplier Exchanges Dist Logistics Exchanges Customers Retailers Customer Exchanges Virtual Mfg. CMs Logistics Providers Copyright @2004 AMR Research: All rights reserved.

Business Evolves into Configurable Demand-Driven Supply Chains Need: Production Capability Supplier Plant DC Customer Supplier Plant DC Supplier Plant Supplier Copyright @2004 AMR Research: All rights reserved. DC Customer DC DC – Dist. Channel Customer

Evaluate: Customer Value + OTD + Configured Production Capability = Profit Margin Copyright @2004 AMR Research: All rights reserved. 21 st Century Manufacturing Enablers: Flexibility & Real-Time Visibility

Challenges of B 2 M and B 2 B Communication and Processes • Many different applications across the enterprise doing the same function • No enterprise wide application and information architecture • Several versions of “enterpriseobjects” or language for Product, Customer, Order, etc.

Challenges of B 2 M and M 2 M Integration • Effective and Flexible Mfg. Operations Business Logistics …. . HARD TO DO! • Various Forms of the MES / ERP solution: Ø Industry-specific production types Ø Mixture of work order types across plant Ø Speed and Volume of Throughput Manufacturing Operations • Standardization of work flow “best practices” Ø Must Allow Change in Production Processes Without requiring change in logistics system Ø Provide a clear demarcation of MES / ERP responsibilities and functions

Technology S Curve: Challenge Explained Also Applies to Methods Development: Delivery, Training, User, Support and Change disciplines HMI / SCADA / PLC ERP SCM MES / PM

2006 Top Strategic Platform Investments Focus on Mfg Operations! Customer Management 14% 11% 34% 39% ERP Product Lifecycle Management Sourcing and Procurement Supply Chain Management 5% 4% 3% 3% 15% 12% Manufacturing Operations Desktop software 21% 22% 9% 10% Most Important (n=442) Source: AMR Research 2006 IT Spend Survey Largest Dollar (n=439)

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 Dept. of Defense

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 Virginia Modeling, Analysis & Simulation Center Old Dominion University

Lean Manufacturing Transformation Road Map Build Single Schema to Accelerate

Standardization Effect of Mfg. Application Framework • Standardization Effect • 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 Effect of ISA 95 together with Lean process and 6 Sigma production improvements

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

OMAC-ISA Activity

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

ISA-95 & Purdue Hierarchy Model Defines MOM and ERP+ Domains for Information Exchanges the basic plant schedule 4 - Establishes Business Planning & Logistics ISA 95. 01, . 02, &. 05 Standards Plant Production Scheduling, Operational Management, etc production, material use, delivery, and shipping. Determines inventory levels. Time Frame Months, weeks, days 3 - Work Unit and Flow Defined. Work flow / recipe control produces desired end ISA 95. 03, . 04 & Manufacturing products. Analyzes Work Data, Maintains. 06 Standards Operations Management records and optimizes the production Dispatching Production, Detailed Production process. Scheduling, Reliability Assurance, . . . Time Frame Days, Shifts, hours, minutes, seconds 2 - Work unit (operation): Monitor, supervisory control and automated control of the production work process Batch Continuous Discrete Control 1 - Sensing of production work process, manipulate the production work process 0 - The actual production work process

Manufacturing Application Framework and Transformation Methodology Supply Chain & Mfg. Scenario & Metrics Domain Definitions Functional Segregation & Metrics by Scenarios and Domain Functions & Data Flows of Interest Inputs Conversion Distribution Consumer (Supplier) (Mfg. ) Out. R&D Inbound Mfg. Mkting bound Service Logistics Ops. & Sales Logistics Material Prep Production Assembly QA Package Manufacturing Use Case Metrics Use Cases and Transaction Set Construction Metrics Information Company Data Model, Construction Production Objects and Categories for Information Canonical Schema Definitions Analytics From ANSI/ISA-95. 00. 01 -1995 Copyright ISA 2006. Used with permission. www. isa. org

ISA-95 Functional Enterprise-Control Model Order Processing (1. 0) Product Cost Accounting (8. 0) Product Shipping Admin (9. 0) Product Inventory Control(7. 0) Production Scheduling (2. 0) Material and Energy Control (4. 0) Procurement (5. 0) Production Control (3. 0) Maintenance Management (10. 0) ISA S 95 Part 1&2 Research Development & Engineering Quality Assurance (6. 0) Marketing & Sales From ISA-95 Copyright ISA 2004. Used with permission. www. isa. org

ISA 95: 4 x 4 Object Model Defines Production Work for B 2 M Data Exchanges 4 Resource Categories Resources People Equipment 4 Information Categories Product Materials Structure / View Capability Product Definition Product Time Production Capability Production Schedule Segments Production Performance From ISA-95 Copyright ISA 2004. Used with permission. www. isa. org

First, Lets Understand Primary Drivers for MOM / ERP+ Segregation Requirements Work Flow Complexity Matrix ity ex pl om v 9 Packaging & Assembly C Production Types v. Discrete Manufacturing v. Batch Processing v. Continuous Processing Work Order Types v. Engineer-to-Order (ETO) v. Make-to-Order (MTO) v. Make-to-Stock (MTS) Production Mtl. Prep Mfg. Scenarios (with hybrids) of Production and WO Types v Each have a specific set of business processes and rules v Contributors: Legacy, Speed, Volume, Size, Compliance, SKU Count

Interoperability Interface Depends on Production Environment, Industry, Products… Product Definition Production Capability Production Schedule Production Performance D/B-ETO Detailed Production Scheduling B/P-MTO P-MTS Production tracking Production Resource Mgt. Production Performance Analysis Production Dispatching Production Data Collection Product Definition Mgt. B-MTO Production Execution P-MTS Level 2 Process Control/ Plant Work From ISA-95 Copyright ISA 2004. Used with permission. www. isa. org

System Function Segregation & Interoperability Determines Lean Performance ISA 95. 03 “- Part 3: Activity Models of MOM” Maintenance Production Quality Test Inventory Level 4+: Extended Enterprise Maintenance Definitions Maintenance Capability B 2 M U Maintenance Request Response Product Definition Production Capability Maintenance data collection Maintenance execution Production tracking Production data collection Product definition management Quality test resource management Production performance analysis Production dispatching Maintenance analysis Maintenance dispatching Inventory Definitions Inventory Capability Quality test data collection Quality test execution Inventory Response Inventory tracking Inventory dispatching Quality analysis Quality test dispatching Production execution Inventory resource management Quality test tracking Quality definition management Inventory Request Detailed inventory scheduling Detailed quality test scheduling Production resource management Maintenance tracking Maintenance definition management Quality Test Quality Response Request Definitions Capability Detailed production scheduling Detailed maintenance scheduling Maintenance resource management Production Schedule Performance Inventory analysis Inventory data collection Inventory definition management Inventory execution Level 2: Plant Work Manufacturing Application (Use Case) Framework (MAF) ØSystem Architecture Must Support Continuous Improvement ØMust Allow Change in Production Processes ØClear demarcation of MOM / ERP+ responsibilities & functions From ISA-95 Copyright ISA 2004. Used with permission. www. isa. org

Current State of Integration • Mostly at the data level • Mostly point to point • Custom program interfaces or flat file exchange • Grows at exponential rate

Integration Technology Evolves From Data to Process Level Capabilities… Integration Architecture Patterns Point to Point (Custom) Message Oriented Middleware Object Brokers Continually Evolving © CSC 2005 All rights reserved. Data Replication & File Transfer Extract Transform Load (ETL) Workflow Enterprise Business Process Application Management Integration Service Oriented Architecture Enterprise Application Service Servers Bus Web Services

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) Application Integration Semantics Messaging and Transport Services 95% 5%

OAGIS® 9. 0 Scope Provides Business Semantics Domains Addressed • e. Commerce • Manufacturing • Logistics • CRM • ERP Ø Ø Ø 10 Years in the Field 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 15000 -5, TBG 17 BIE/ABIE

OAGIS B 2 M Integration: ISA 95/OAGIS Convergence Plant Functions BODS Product Definitions and Production Capabilities Production Orders WIP and Inventory Status Order Completion & Resource Consumption Sync/Get/Show Item. Master 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/Confirm Inventory Issue Get/Show/Sync Engineering Change Document Sync/Get/Show Planning Schedule Process WIP Merge Issue/Receive Inventory Movement 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

MAF Best Practice Transformation Methodology Ø Utilizes ISA 95 with other Models throughout Best Practices Ø ISA 95/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

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 M 2 B and B 2 M • Methodology for MOM / ERP integration • Single Production Schema Reinforces Lean practices such as: ØStandard work flow practices across MOM Activities: Production, Quality, Maintenance, & Inventory Operations Ø Schedule/Dispatch, Data entry methods, CID, ECO, Routes, etc. ØCross-training operators and mechanics: Common work definition for operations and resources ØSingle XML production schema across all MOM applications simplify Data Collection, Analytics, Interfaces and Reporting

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