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Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved. Convergence of Business Convergence of Business Process Standards for Process Standards for Manufacturing Simplify MAKE Manufacturing Simplify MAKE Integration Integration THE FORUM FOR AUTOMATION AND MANUFACTURING PROFESSIONALS Charlie Gifford, Director, Lean Production Management GE Fanuc

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Page 1: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 1Copyright © 2006 WBF. All rights reserved.

Convergence of Business Process Convergence of Business Process Standards for Manufacturing Standards for Manufacturing Simplify MAKE IntegrationSimplify MAKE Integration

THE FORUM FOR AUTOMATION AND MANUFACTURING PROFESSIONALS

Charlie Gifford,Director, Lean Production Management

GE Fanuc

Page 2: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 2Copyright © 2006 WBF. All rights reserved.

Today’s AgendaToday’s Agenda

Lean Supply Chain Requirement

ISA95~SCOR Alignment Project Overview

SCOR Overview

ISA-95 Overview

Questions & Answers

Page 3: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 3Copyright © 2006 WBF. All rights reserved.

Aligning Mfg. Capabilities to 21st Century Challenges Mandates Change…

Customers

Manufacturers Dist

Supplier Exchanges

Customer Exchanges

LogisticsExchanges

Suppliers

CMs

Retailers

Virtual Mfg.

Logistics Providers

Copyright @2004 AMR Research: All rights reserved.

20th Century Manufacturing

21st Century Manufacturing is ABOUT Lean & Flexible Supply Chains

Page 4: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 4Copyright © 2006 WBF. All rights reserved.

Business Evolves into Configurable Demand-Driven Supply Chains

DC

DC

DC

DC

DC

Customer

Customer

Customer

Customer

Customer

CustomerDC – Dist. Channel

Need:ProductionCapability

Supplier

Supplier

Supplier

Supplier

Plant

Plant

Plant

Copyright @2004 AMR Research: All rights reserved.

Page 5: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 5Copyright © 2006 WBF. All rights reserved.

Evaluate: Customer Spec + OTD + Configured Production Capability = Profit Margin

Copyright @2004 AMR Research: All rights reserved.

CM

CM

CM

Plant PlantCM

CM

DCsPlant

Plant

Loosely coupled capacity based on profit/value ratio or

compromise between value chain (profit) and

stream (demand)

Plant

Plant

Plant CM

CM

CM

Plant PlantCM

CM

DCsPlant

Plant

Loosely coupled capacity based on profit/value ratio or

compromise between value chain (profit) and

stream (demand)

Plant

Plant

Plant

Plant

Plant

Plant

21st Century Manufacturing Enablers:Flexibility & Real-Time Visibility

Page 6: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 6Copyright © 2006 WBF. All rights reserved.

2006 Top Strategic Platform Investments Focus on Mfg Operations!2006 Top Strategic Platform Investments Focus on Mfg Operations!

Production Capability Addressed with IT Investment

Production performance monitoring (yield, cycle times, OEE, etc.)

18

Execution of production orders 11

Shop floor work order/recipe scheduling/sequencing

11

Business process integration with ERP, PLM, and LIMS

10

Asset maintenance and equipment reliability 9

Product quality and compliance management 9

Product and process traceability and genealogy 5

RFID (workflow management) 5

Source: AMR Research 2006 IT Spend Survey

Page 7: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 7Copyright © 2006 WBF. All rights reserved.

ISA-95 / SCOR Alignment (Mapping) Project Overview

Purpose• To map the SCOR and ISA-95 framework standards

• Identify Omissions / Duplications• Recommend improvements / Changes to the

respective standards bodies

ISA-95 SCOR Working Team• Stephen Graham – Project Leader (Dow)• Charlie Gifford (GE Fanuc – ISA-95 Voting Member)• Joe Faccenda (Aspentech)• Ray Walker (DuPont) - ISA-95 Voting Member• Keith Unger (Stone Technologies – ISA-95 Chairman)• Eric Cosman (Dow) – ISA-95 Voting Member• Russ Dickinson (Dow)• Tilsley, Paul A (BP)• Tom Janoshalmi (SAP)• Enrico Camerinelli (SAP) (now SCC Europe)

Page 8: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 8Copyright © 2006 WBF. All rights reserved.

ISA-95 / SCOR Mapping Project Steps

1. Identify Electronic sources of information

2. MAP 68 ISA-95 Data Flows

3. MAP 113 SCOR Data Flows

4. Reconcile SCOR / ISA-95

Data Flows

List of Omissions/ inconsistencies/ suggestions to ISA-95 Technical Team.

List of Omissions/ inconsistencies/ suggestions to SCOR Technical Team.

Final Report / Recommendations

100%

100%

100%

Feb 2005

April 2005

July 2005

Dec 2005

Final Documents/ Reports to Sponsors

Feb 2006

Page 9: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 9Copyright © 2006 WBF. All rights reserved.

List SCOR Mapping from Previous Step

List ISA-95 Data Flows from

Step 2

Define Mapping Relationships

Define Approach

Document and Review

Reconciliation Process

SCOR~ISA-95•One to one•Many to one•Many to many•One to many

1. List ISA-95 – 1. Review SCOR (255)2. Define any SCOR

that are relevant3. Create Cross

Reference2. From Cross Reference

identify all SCOR that are not used

3. Repeat Step 1 but ask if any from Step 2 request or initiate any ISA-95

Page 10: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 10Copyright © 2006 WBF. All rights reserved.

ISA-95 / SCOR Mapping Project

• Achievements

• Mapping Spreadsheets

• Good team work and chemistry

• Steps 1 & 2 in Reconciliation complete

• Identified missing definitions from both

• Some SCOR no direct mapping

• Team completed Step 3 of reconciliation to identify common method and gaps

Page 11: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 11Copyright © 2006 WBF. All rights reserved.

Supplier

Internal or External

Plan

Customer

Internal or External

Customer’sCustomer

Suppliers’Supplier

Make DeliverSource Make DeliverMakeSourceDeliver SourceDeliver

Your Company

Source

SCOR Overview: Structured Around 5 Management Processes

SCOR ModelSCOR Model

Return Return ReturnReturn Return Return Return Return

Building Block Approach

Processes Metrics

Best Practice Technology© Supply-Chain Council, 2006 All rights reserved.

Page 12: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 12Copyright © 2006 WBF. All rights reserved.

Customer-Facing

SCOR Level 1Supply Chain Management

AssetsSupply Chain

ReliabilityCost

Responsive-ness

Perfect Order Fulfillment Order Fulfillment Cycle Time Upside Supply Chain Flexibility Upside Supply Chain Adaptability Downside Supply Chain Adaptability SCM management cost Cost of Goods Sold Cash-to-cash cycle time Return on Supply Chain Fixed Assets

Internal-Facing

SCOR Level 1 Performance Metrics

Flexibility

Supply Chain Performance Is Tied to Measurements That Can Be Benchmarked…

Page 13: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 13Copyright © 2006 WBF. All rights reserved.

SCOR Contains 3 Levels Of Abstraction Compared to ISA-95’s 4 Levels

#

Level

Schematic Comments

1

2

3

4

Configuration Level

(ProcessCategories)

Process Element Level

Plan

DeliverMakeSource

A company’s supply chain can be “configured-to- order” at Level 2 from approximately 24 core “process categories.”

Companies implement their operations strategy through their unique supply chain configuration.

Companies “fine tune” their Operations Strategy at Level 3

Level 3 defines company’s ability to compete successfully in its chosen markets & consists of:• Process element definitions • Process element information inputs and outputs• Process performance metrics • Best practices, where applicable • System capabilities required for best practices • Systems / tools

Implementation Level

Companies implement specific supply-chain management practices at this level

Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions

Su

pp

ly C

hai

n O

per

ati

on

s R

efer

ence

SC

OR

Mo

del

Top Level(Process

Types)

Level 1 defines the scope and content for the Supply Chain Operations Reference-model

Here basis of competition performance targets are set

Notin

Scope

Description

Balance Production Resources withProduction Requirements

Establish DetailedProduction Plans

Identify, Prioritize, and AggregateProduction Requirements

Identify, Assess, and AggregateProduction Resources

P3.1

P3.3 P3.4

P3.2

© Supply-Chain Council, 2006 All rights reserved.

(Decompose Processes)

(DecomposeProcess Elements)

Page 14: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 14Copyright © 2006 WBF. All rights reserved.

Level 4

Level 1

Level 2

Level 3

Business Planning & Logistics

Plant Production Scheduling,Operational Management, etc

Manufacturing Operations Management

Dispatching Production, Detailed ProductionScheduling, Reliability Assurance, ...

BatchControl

DiscreteControl

ContinuousControl 1 - Sensing the production process,

manipulating the production process

2 - Monitoring, supervisory control and automated control of the production process

3 - Work flow / recipe control to produce the desired end products. Maintaining records and optimizing the production process.

Time FrameDays, Shifts, hours, minutes, seconds

4 - Establishing the basic plant schedule - production, material use, delivery, and shipping. Determining inventory levels.

Time FrameMonths, weeks, days

Level 0 0 - The actual production work process

ISA-95: Functional Model Defines MOM and ERP+ Domains

ISA 95.01, .02, & .05 Standards

ISA 95.03, .04 & 06Standards

From ANSI/ISA-95.00.01-1995 Copyright ISA 2006. Used with permission. www.isa.org

Page 15: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 15Copyright © 2006 WBF. All rights reserved.

Cu

sto

mer

sC

ust

om

ers

Su

pp

lier

sS

up

pli

ers

P1 Plan Supply ChainP1 Plan Supply ChainPlanPlanP2 Plan SourceP2 Plan Source P3 Plan MakeP3 Plan Make P4 Plan DeliverP4 Plan Deliver

SourceSource MakeMake DeliverDeliverS1 Source Stocked ProductsS1 Source Stocked Products M1 Make-to-StockM1 Make-to-Stock

M2 Make-to-OrderM2 Make-to-Order

M3 Engineer-to-OrderM3 Engineer-to-Order

D1 Deliver Stocked ProductsD1 Deliver Stocked Products

D2 Deliver MTO ProductsD2 Deliver MTO Products

D3 Deliver ETO ProductsD3 Deliver ETO Products

S2 Source MTO ProductsS2 Source MTO Products

S3 Source ETO ProductsS3 Source ETO Products

Supply-Chain Operations Reference (SCOR) Model 7.1 - Processes

Return Return SourceSource

P5 Plan ReturnsP5 Plan Returns

Return Return DeliverDeliver

EnableEnable

D4 Deliver Retail ProductsD4 Deliver Retail Products

© Supply-Chain Council, 2006 All rights reserved.

Page 16: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 16Copyright © 2006 WBF. All rights reserved.

MAKE’s Level 2 Process Category and Level 3 Process Elements

Example:M1: Make-to-Stock (MTS)

Business Process and Data Flow:• M1.1 Schedule Production Activities• M1.2 Issue Product• M1.3 Product and Test• M1.4 Package• M1.5 Stage Product• M1.6 Release Product to Deliver

M2: Make-to-Stock (MTO)M3: Engineering-to-Order (ETO)

• M3.1 Finalize Engineering

• …

© Supply-Chain Council, 2006 All rights reserved.

Page 17: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 17Copyright © 2006 WBF. All rights reserved.

Level 3 Process Element Example-M1.1: Schedule Production Activities

Process Element: Schedule Production Activities

Process Element Number: M1.1

Performance Attributes MetricReliability Schedule achievementResponsiveness Schedule Production Activities Cycle TimeFlexibility None Identified

WIP inventory days of supplyScheduling resource costs as % of Make costsCapacity utilizationReturn on Supply Chain Assets

Best Practices FeaturesCross training/Certification HR/Certification supportMaintain data & system integrity by ensuring production data, inventory levels, & schedule requirements are 99+% accurate

Detailed production model that synchronizes PLAN and MAKE activities in real time.

Schedule optimizes use of shared resources, such as production equipment and tooling

Detailed production scheduling model and simulation capabilities

Real-time feedback from Production, raw material and finished goods inventory and test activities.

Allow dynamic re-synchronization of MAKE activities by tying in real time status information to scheduler.

Scheduling output to material and labor planning systems. Accurate, real time information.Drum-Buffer-Rope Scheduling Technique See Glossary

Assets

Cost

Process Element DefinitionGiven plans for production of specific parts, products, or formulations in specified quantities and planned availability of required sourced products, the scheduling of the operations to be performed in accordance with these plans. Scheduling include sequencing, and, depending on the factory layout, any standards for setup and run. In general, intermediate production activities are coordinated prior to the scheduling of the operations to be performed in producing a finished product.

Page 18: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 18Copyright © 2006 WBF. All rights reserved.

Inputs Plan Source Make Deliver ReturnProduction Plan P3.4Scheduled Receipts – depends upon the type of sourced product required. The item sourced could be from a vendor’s MTS, MTO,and ETO process.

S1.1, S2.1, S3.3

Information Feedback M1.2, M1.3, Equipment and Facilities Schedules and Plans EM.5

Outputs Plan Source Make Deliver ReturnProduction Schedule - information is used as feedback for Plan and Source support processes. Projection of inventory availability for Deliver planning also requires the production schedule as feedback information.

P3.2 S1.1, S2.1, S3.3

D1.3, D1.8, D4.2

Process Element: Schedule Production Activities Process Element Number: M1.1

Level 3 Process Element Example - M1.1: Schedule Production Activities

© Supply-Chain Council, 2006 All rights reserved.

Page 19: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 19Copyright © 2006 WBF. All rights reserved.

Overview of ISA-95 EffortEnterprise-Control Integration

• ANSI/ISA 95.00.01 “Enterprise - Control System Integration - Part 1: Models and Terminology”

• ANSI/ISA 95.00.02 “Enterprise - Control System Integration - Part 2: Object Attributes”

• ANSI/ISA 95.00.03 “-Part 3: Activity Models of MOM”

• ISA 95.00.04 (Draft) “-Part 4: Object Models & Attributes of MOM”

• ISA 95.00.05 (Draft) “-Part 5: Business to Mfg Transactions”

• ISA 95.00.06 (Proposed) -“Part 6: MOM Transactions”

From ANSI/ISA-95.00.01-1995 Copyright ISA 2006. Used with permission. www.isa.org

Page 20: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 20Copyright © 2006 WBF. All rights reserved.

What ISA-95 Offers

• Flexibility Framework for manufacturing applications and integration projects

• Separation of business processes from manufacturing processes

• Focus on functions (Similar to SCOR), not systems, organizations or

individuals

Page 21: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 21Copyright © 2006 WBF. All rights reserved.

Identified Information Categories for PM-MES / ERP Data Flows

Enterprise InformationPlant Production Scheduling,Operational Management, etc

ManufacturingControl Information

Area Supervision, Production Planning, Reliability, Assurance, etc

ProductDefinition

Information(How to make

a product)

ProductionCapability

Information(What isavailablefor use)

ProductionSchedule

(What tomake and

use)

ProductionPerformance

(What wasmade and

used)

From ISA-95 Copyright ISA 2004. Used with permission. www.isa.org

Page 22: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 22Copyright © 2006 WBF. All rights reserved.

ProductionResource Mgt.

ProductionCapability

ProductionPerformance

Analysis

ProductionData Collection

ProductionExecution

ProductionDispatching

ProductionTracking

ProductionPerformance

DetailedProductionScheduling

ProductionSchedule

Level 2 Process Control

ProductDefinition Mgt.

ProductDefinition

ISA-95 Part 3: Mfg Operations Activity Flows & Functions Data Flows

Equipment and ProcessSpecific Production Rules

OperationalCommands

OperationalResponses

Equipment and ProcessSpecific Data

Pro

du

ction

Op

eration

s M

anag

emen

t

From ANSI/ISA-95.00.01-1995 Copyright ISA 2006.

Used with permission. www.isa.org

Page 23: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 23Copyright © 2006 WBF. All rights reserved.

System Function SegregationDetermines Lean Performance

B2M

Level 2: Plant Work

Maintenance Production Quality Test Inventory

UProduction

datacollection

Productionexecution

Productionresource

management

Productiondispatching

Productiontracking

ProductionPerformance

Detailedproductionscheduling

ProductionSchedule

Productdefinition

management

Productionperformance

analysis

ProductionCapability

ProductDefinition

Maintenanceresource

management

MaintenanceResponse

Detailedmaintenancescheduling

MaintenanceRequest

Maintenancedefinition

management

MaintenanceCapability

Maintenanceanalysis

MaintenanceDefinitions

Maintenancedata

collection

Maintenanceexecution

Maintenancedispatching

Maintenancetracking

Inventory resource

management

InventoryResponse

Detailedinventoryscheduling

InventoryRequest

Inventorydefinition

management

Inventoryanalysis

InventoryCapability

InventoryDefinitions

Inventorydata

collection

Inventoryexecution

Inventorydispatching

Inventorytracking

Qualityanalysis

Qualitytest resourcemanagement

Quality TestResponse

Detailedquality testscheduling

Quality TestRequest

Qualitydefinition

management

Quality TestCapability

QualityDefinitions

Qualitytest datacollection

Quality testexecution

Quality testdispatching

Quality testtracking

Manufacturing Application (Use Case) Framework (MAF)System Architecture Must Support Continuous ImprovementMust Allow Change in Production Processes Clear demarcation of MOM / ERP+ responsibilities & functions

ISA 95.03 “- Part 3: Activity Models of MOM”

Level 4+: Extended Enterprise

From ISA-95 Copyright ISA 2004. Used with permission. www.isa.org

Page 24: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 24Copyright © 2006 WBF. All rights reserved.

SCOR / ISA-95 Business Values

Interoperable, Lean Supply Chain solutions require consistent function models, schema and language

Fast flow of dynamic information from consistent messaging between supply chain and production

Fast implementation of Supply Chain-to-Mfg Operations integration projects

LARGE reduction implementation and change costs for SC integration through use of single B2MML interface

SCOR / ISA95 methods structuring a Flexible Manufacturing Application Framework over next 5 years

Page 25: Charlie Gifford 1 Copyright © 2006 WBF. All rights reserved

Charlie Gifford 25Copyright © 2006 WBF. All rights reserved.

Questions?

Charlie Gifford [email protected] Performance Mgt. GE Fanuc AmericaChairman, ISA-95 Best Practices Working Group