key strategies for discrete manufacturers j caie arc japan 2008

K St t i f Di t M f tK St t i f Di t M f tKey Strategies for Discrete ManufacturersKey Strategies for Discrete Manufacturers

Meeting the Challenges of Rapidly SurgingMeeting the Challenges of Rapidly SurgingMeeting the Challenges of Rapidly Surging Meeting the Challenges of Rapidly Surging Resource, Material and Energy CostsResource, Material and Energy Costs

Jim CaieVice President

ARC Advisory GroupARC Tokyo Forum

July 16 2008

This presentation is copyrighted by ARC Advisory Group (ARC). The information is proprietary to ARC and it may be not be reproduced without prior permission from ARC.

[email protected] 16, 2008

Today’s Game Changers for Discrete ManufacturersToday’s Game Changers for Discrete Manufacturers

Rapid Surge in Energy Costs has Greatly increased Cost of Doing Business

P l

Business Drivers

Fierce Global CompetitionDynamic Customer Requirements

• People• Equipment• Material• Operations

Shrinking Product Life Spans

Global Markets, Supply ChainsTechnological Advancements

High Energy Costsp• Logistics• Etc.

C i R thi ki th i B i

High Resource & Material Costs

New RequirementsCompanies are Rethinking their Basic Product and Manufacturing Strategies• Relentless Cost Reduction Everywhere• Optimal Use of All Resources

Reduced Overall Costs & DowntimeReduced Energy & Material CostsOptimized, Validated Mfg Designs

Flawless Execution

New Requirements

p

Challenge is Changing Quickly to Adapt to this New Environment

Flawless ExecutionReal-time, Actionable Information

Empowered Knowledgeable PeopleBest Practice Focus

Common Scalable Systems

2© ARC Advisory Group

to this New Environment Common, Scalable SystemsCollaborative Production Systems

Smart Applications

Agenda

Discrete Manufacturers Can Effectively & Efficiently Adapt to this New EnvironmentDiscrete Manufacturers Can Effectively & Efficiently Adapt to this New Environment

Rethink, Enhance and Leverage

Automation and Control Systems

Operations Management (MES) Systems

Use of Digital Manufacturing Tools


Collaborative Production Systems (CPS) ModelCollaborative Production Systems (CPS) Model

Enterprise/Business Operations

Operations M t

Operations Management

Inbound Supply Chain

Customer Relationship

Management Systems

Management (MES)

Automation &PLM & Digital

Shipping,Outbound SC

Product/Plant Design & Eng

AutomationSystems

Automation & Controls

PLM & Digital Manufacturing


ARC has Established a Research Community in Each Domain

Automation & ControlsAutomation & Controls

Challenges for Cost ReductionEngineering Costs Deployment & Support CostsControls Component (Material) CostsEnergy UsageEnergy Usage Safety Related Costs

Opportunities to Achieve Cost ReductionsGlobal, Open, Common Controls Architecture

Intelligent, Integrated Platform for Multiple Control Applications


Safer Automation at Lower Costs

Eight Strategies to Achieve a Global, Open, Common Controls ArchitectureEight Strategies to Achieve a Global, Open, Common Controls Architecture

Leadership Driving Common

• Establish Global Common Vision

• Drive Initiatives to Implement Vision

• Empower Competent Groups to Execute Initiatives

Stability in the Controls Architecture

• Leverage advantages of reusing validated designs across the company for 3 – 5 years

• Bundle new technology/practices together and thoroughly validate prior to deploymentand thoroughly validate prior to deployment

• Standardize on a Single PLC Supplier

Commonizing Software Designs

• Standardize on a Single PLC Supplier

• Create Library of Standard Templates for Hundreds of Basic Control Tasks

• Auto-generate 80%+ PLC Code for an


Application by Cutting & Pasting Templates


Utilizing Common, Open Networks

• Must be Robust, Proven, and Globally Supported

• Enables Competitive Choice and Easier

Deploying Lean

• Enables Competitive Choice and Easier Integration

Deploying Lean, Scalable Systems

• Utilize Same Software for both Hi-End and Low-End Devices throughout your Diverse Applications

Virtually Developing,

• Optimize Controls Performance & Value

• Systems Ready Prior to ProductionEvaluating, and Validating Control Designs

y y

• Testing is Robust



Deploying Common Electrical Panels

• Designs Must Meet Regulations of All Countries

• Common Look & Feel Regardless of OEM• Common Look & Feel Regardless of OEM Providing the Equipment

• Purchasing Economies of Scale

Competitively Sourcing Common Components

• Drive Down Prices with Competitively Bid, High Volume Long Term ContractsComponents High Volume Long Term Contracts

• Common Components Enable Common Hardware Designs


Competitively Sourcing Common Components Competitively Sourcing Common Components

Common Components Savings Over TimeCommon Component Cost

60

80

100

cent Uncommon

NAV l

0

20

40Perc NA Volume

Global Volumes

Panel Field Fluid Power

Components

•Capital & Material Savings are Significant

•Selecting Energy Efficient Components (Drives) can Save


g gy p ( )Significant Additional Costs over Time

An Alternative to Significantly Reduce Energy Costs in the Factory

Electric Actuators

• Replacement of Pneumatic Actuators (clamps, slides,Replacement of Pneumatic Actuators (clamps, slides, grippers, etc.) with Electrically Operated Devices.

• Supports the “Airless Plant” Concept. • Significantly reduced utility operating costg y y p g• Significant capital expenditure avoidance.

Other Potential Advantages

• Robustness & Reliability• Maintainability• Safety & Fault tolerance


Intelligent, Integrated Multi-Functional Control Platform

ARC Programmable Automation Controller (PAC) Model

Users want single point access to information

LogicLogicProcessProcess

TagsTags

MotionMotion DrivesDrives

HMI SCADA

HMI SCADA

DatabasesDatabases Development Platforms

Common Tagging and

Database

Common Configuration

Tools

Networked Multi-vendor Architecture

Multi-domain

automated systems

Multi-domain

automated systems

Multiple Control

Applications

HMIHMI

PACMulti- Domain Functionality

Multiple Control Applications

Efficient Data Exchange in a Multi-

PAC Reduces Complexity & Enables Integration


Efficient Data Exchange in a Multi-Vendor Environment

Enables Highly Distributed Systems

Integration

Expanding PAC Capabilities with Windows CE Intelligent ModulesExpanding PAC Capabilities with Windows CE Intelligent Modules

PLC

ITDatabases

Intelligent Module

PLCsWeb Viewers& HMIs

Marques

MES Applications

Facility Applications to Reduce Energy Usage

Predictive Maintenance Applications


Predictive Maintenance Applications

Motion Control Applications

Safer Automation at Lower CostSafer Automation at Lower Cost

Future Automations Systems Will:Perform Many Non-Value and Repetitive

Tasks Currently Done by HumansTasks Currently Done by HumansEnable More Efficient, Safer Interaction

with People using Technology such as:

Motoman 13 axis Dual ArmMotoman 13 axis Dual Arm

• Intelligent Cooperative Robots, Sensors, Effectors & Controls

• Non-Contact Sensors for Situation Awareness & Human Tracking

Motoman 13-axis Dual-Arm Assembly Robot

Motoman 13-axis Dual-Arm Assembly Robot• Force Tactile Sensing

• Bio-Metric Sensing & Control Reliable Solutions Emerging Technologies

will Enable Improved Less• Sensing to Recognize Non-Standard Conditions

• Self Optimizing, Learning Processes, Equipment, & Tools

will Enable Improved, Less Obtrusive Safety at Lower Costs


• Wireless Information & Control

Agenda

Automation & Controls Research CommunityAutomation & Controls Research Community

User Best PracticesImplement Common Hardware, Software and Network Standards

Maximize Use of Ethernet Technologies at all Levels of Automation

Design Robust Interfaces Between Controls & IT Systems

Effectively Plan & Execute Controls Migration, Upgrades, & Reuse

Virtually Validate Controls Designs Prior to Production

Supplier RequirementsSupplier RequirementsProvide Open Standards Bases Products

Provide Cost Effective Ethernet IO Technology/ProductsProvide Cost Effective Ethernet IO Technology/Products

Provide Simpler, Cheaper, more Mobile HMIs

Provide Backward/Forward Compatible, Scalable, Maintainable, U d bl P d t


Upgradable Products

Operations Management (MES)Operations Management (MES)

Dynamic Coordination of Personnel, Equipment, Parts and Material to Effectively

and Efficiently Manufacture Products





ChallengesR d i C d O i i i U f R i Hi hl


Systems


Systems

AutomationSystems


(MES)




(MES)





Reducing Costs and Optimizing Use of Resources in a Highly Distributed & Dynamic Supply ChainMost MES Systems Not Well Integrated with Key Factors of ProductionProduction

Opportunities Effective and Efficient Cross Functional Integration and Process EnforcementCost Effective Schedule Compliance


Convergence of Automation & IT technologiesImproved Productivity, Uptime & Quality and Lower Energy Usage

Reasons for Deploying Operations Management (MES) SystemsReasons for Deploying Operations Management (MES) Systemsg ( ) yg ( ) y

Improve visibility of manufacturing information

Improve cross-domain business processes

Improve throughput

Improve operating efficiency

Improve new product introduction

Improve quality of products and services

Align production with dynamic business needs

Rationalize/eliminate legacy applications

Improve labor productivity

Improve the ability to produce more products

0 10 20 30 40 50 60 70 80 90 100

Improve the ability to produce more complex products

Software tools to take Lean to the next level

Source: ARC Manufacturers Research May 2007


MES Systems Can Help

Disparate Applications Hinder Manufacturing Excellence : the MES MessDisparate Applications Hinder Manufacturing Excellence : the MES Mess

ERP

CRM SCM

Production Definition

Production Capability

Production Plan Production Information

CRM SCM

Planning

Scheduling

Yield Accounting

Maintenance

Hundreds of Applications

OptimizationInventory

BatchContinuous Logic

S A d L i l D iCommon Data/Information

ApplicationsAPC HistorianDCS PLC

F

FF

F

Sensors, Actuators and Logical Devices


Increasing Complexity of Automation Systems

Three Pillars to Fix MES MessThree Pillars to Fix MES Mess

Infrastructure• Real-time Plant Support

Connectivity• Enterprise

Processes• Production Planningpp

• Technology Platform• Applications Platform• Business Processes• Security• Role-based Portals

p• Design & Engineering• Operations, Controls, &

Equipment• Supply Chain & External

Operationsd

g• Production Execution• Product Data Tracking• Visibility & Analytics• Quality Enforcement• Inventory Logistics

• etc. • Product Support Opsy g

• Asset Mgmt• Product Support



p g

Source: ARC Advisory GroupSource: ARC Advisory Group

Technologies Expanding MES CapabilitiesTechnologies Expanding MES Capabilities

Asset Tracking

• RTLS,GPS for Location Determination

• Web-based Visualization & Automatic Alerts

Intelligent, Adaptive Systems

• Watch-dogs to Avoid Errors• Watch-dogs to Avoid Errors

• Reliability Centered Manufacturing

Data Display

• Wireless and Mobile


Opportunities for MES to Significantly Reduce Energy UsageOpportunities for MES to Significantly Reduce Energy Usage

Facilities

PLC MES

FacilitiesManagement

System

Lights Heat

Realities of the Plant Floor

Efficient AGV Routings

g

Utilizing accurate, timely information in the plant and supply chain, MES can help

Efficient Supply Chain Routings


supp y c a , S ca e poptimize use of energy in the enterprise

Routings

Operations Management Research CommunityOperations Management Research Community

Top Best Practice IssuesAvoiding Being Trapped as a “Victim of Our Legacy”

Integrating Best of Internal & Commercial Systems

Effectively Leveraging IT & Mfg Engineering Resources

Utilizing Event and Role Based Systems

Utilizing Wireless for Data Collection & Display

Top Supplier RequirementsReduce Cost of MES (scalability)

Facilitate Integration in a Legacy Environment

Support More Analytical and Role-Based Systems pp y y

Provide Remote Expert Assistance

Help Standardize Mfg Data Definitions


Digital Manufacturing (DM)Digital Manufacturing (DM)

Digital Mfg is a Set of Virtual Tools that Help Mfg Engineers to Efficiently Optimize & Validate M f i D i P i P d i



Operations Operations Operations Operations



Manufacturing Designs Prior to Production

Challenges Reduce the Time Required to Develop and Maintain Virtual Models

Management Systems

Management Systems

AutomationSystems

Management (MES)


PLM & Digital Mfg

Management (MES)


PLM & Digital Mfg



Reduce the Time Required to Develop and Maintain Virtual ModelsProvide More Accessible, Accurate Data to Drive SimulationsImprove and Better Integrate the Still Emerging Set of Virtual Tools

OpportunitiesSpeed to Market with ConfidenceEfficiently Developed Models that Stay RelevantEfficiently Developed Models that Stay RelevantQuicker and More Thorough Validation Faster Production Accelerations with Improved Quality & Productivity


Virtual Training CapabilityElimination of Physical Builds for Validation

What Does Digital Manufacturing Do?What Does Digital Manufacturing Do?

Manufacturing Planning• Definition of High-Level Manufacturing Processes• Evaluation of Capacity Requirementsp y q

Detailed Design & Analysis• Detailed Resource Modeling & Simulation• In-depth Process Definition and Validationp• Detailed Work Instructions• Thermal, Stress, & Spring-back Analysis• Digital Layout • Equipment Tool & Fixture Design• Equipment, Tool & Fixture Design• Ergonomic Simulation• Energy Usage

Validation & Virtual CommissioningValidation & Virtual Commissioning• Control Logic Validation• HMI/MES Validation• Sensor Placement Validation

Knowing the Manufacturing System Works Prior to


• Automation Integration Validation Production

Using Digital Manufacturing Tools for Controls Validation and Virtual Commissioning

PHYSICALVIRTUAL

Control Mfg Process

DE

SIG

N

DesignModeling

DLI

DAT

E

Production Simulation

Validate Control

VAL PLC HMI


OPC Client/Server

Assessing How Well Production and Controls Designs are FunctioningAssessing How Well Production and Controls Designs are Functioning

Electrical Panels in DELMIA V5 Logic Controlling the CellElectrical Panels in DELMIA V5 Logic Controlling the Cell

Human Machine InterfaceMechanical Equipment in DELMIA V5 Human Machine InterfaceMechanical Equipment in DELMIA V5

PLCPLC

Engineers Can Simultaneously Monitor Control Logic Execution, HMI Diagnostics, Functioning of


g , g , gPanel Devices, and Functioning of the Production

Processes and Equipment.

Digital Mfg Supports Asset Life Cycle ManagementDigital Mfg Supports Asset Life Cycle Management

Virtually Optimize Facility and Supply Chain Assetand Supply Chain Asset Designs and Practices Over their Life Cycles, Considering Cost, Energy Usage, Time, and Other I t t F tImportant Factors.


PLM/Digital Mfg Research CommunityPLM/Digital Mfg Research Community

User Best PracticesVirtually Optimize and Validate Designs Prior to ProductionMaximize Reuse of Virtual Models by Emphasizing CommonMaximize Reuse of Virtual Models by Emphasizing CommonIntegrate PLM Systems with ERP, SCM, EAM and MESFully Integrate DM tools• Into the Company’s design process• Across all manufacturing disciplines• Into the Information & Control architecture of the plant floor

S li R i tSupplier Requirements

Provide PLM/DM Tools that are C bl f i i d d i i h li i f d i fl• Capable of integrating product design with realities of production floor

• Capable of integrating mechanical and electrical data• Easier to use and capable of supporting large models• Capable of capturing process knowledge


• Capable of capturing process knowledge

Assist Users in Cost Justification for PLM/DM Systems

ARC’s Benchmarking Initiative for the Discrete Mfg CommunityARC’s Benchmarking Initiative for the Discrete Mfg Community

ARC Discrete Benchmarking Consortium

Member’s Role

ARC Manufacturing Clients

• Define Methods and Metrics to Focus on

• Collect the Data

• Use Reports to Compare Their Plants with Industry Abstracted Data

ARC’s Role

Consortium of Discrete

Manufacturers

• Facilitate the Process

• Maintain a Confidential Database

Manufacturers Sharing

Benchmarking Information

• Provide Comparison Reports

Benchmarking Will Help Discrete M f t R d t T d ’


Non-Clients

Manufacturers Respond to Today’s Challenges More Effectively and More Quickly

Meeting Today’s Challenges with Smart ApplicationsMeeting Today’s Challenges with Smart Applications




Systems


Systems


(MES)


(MES)Shipping,

Outbound SC




AutomationSystems





Smart Applications

Next Generation CapabilityMore Effectively and Efficiently Utilize

• PeopleA t tiBenchmarked Current &

Emerging Best Practices & Technologies

• Automation • Information• Energy & Material

Dramatically Improve Competitiveness


Thank You.Thank You.For more information, contact the author at [email protected] or visit our web pages at

www arcweb com

This presentation is copyrighted by ARC Advisory Group (ARC). The information is proprietary to ARC and it may be not be reproduced without prior permission from ARC.

www.arcweb.com

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