transforming operation strategies with mom and isa-95 standards

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Global competitiveness requires increasing manufacturing agility while maintaining quality, production performance and on-time shipments. To meet these needs market leading companies incorporate ISA-95 Maturity Models as a core strategy to improve agility. The strategy depends on manufacturing intelligence solutions to deliver role specific reporting to support decision making and enable people to take process ownership and drive manufacturing transformation through maturity levels from ad-hoc operations to continuous improvement: • Level 1: Ad-hoc Operations • Level 2: Planning and Control • Level 3: Standardized Processes • Level 4: Predictable Performance • Level 5: Continuous Improvement For over fifteen years ISA-95 has been the standard to model these processes. Maturity Models map the manufacturing transformation strategy that integrates real-time process systems with the supply chain as a business and operational strategy to drive operational excellence. Rod Parry explains how to use Maturity Models to develop a Manufacturing Transformation Strategy to achieve the flexibility, agility and process optimization required for global competitiveness. These strategies enable companies to deploy these cohesive strategies for operations excellence. Presenter: Rod Parry is the Managing Director at Factory IQ a consulting practice in manufacturing operation management, MES systems and energy that integrates ISA standards, IT, vendor systems and a common information model to connect the manufacturing plant with the supply chain and ERP systems. Rod is currently chair of the MESA Metrics Reference Model working group. Mr. Parry is a thirty year veteran developing and integrating MOM/MES and process automation with enterprise applications. Prior to founding FactoryIQ, he held positions at Intel, Microsoft and MCS Technology. http://www.nwasoft.com/resources/webinars/transform-operations-strategies-deliver-more-agility-flexibility-isa-95-maturity-

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  • 1. Transforming operation strategies to deliver moreagility & flexibility using an ISA-95 Maturity ModelRod ParryManaging DirectorFactory IQMCP, PMP, CSSBBOffice: 503-530-8740rparry@factoryiq.com Copyright 2010 - Factory IQMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

2. BIO & Background28 Years 100 Plants - 200 Projects Business and Operations Strategy Engineering Plant Operations and Maintenance Plant-wide Systems MES/MOM Systems integrated with Process Automation Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 3. Agenda 1. Global Competition in the Supply Chain 2. Gaps with Supply Chain Planning & Logistics 3. Gaps with Manufacturing Plant Operations 4. Culture change with Operational Excellence 5. Mapping the Gaps with to the Business Strategyand Operation Strategies. 6. Introducing MOM, ISA-95 Standards and theManufacturing Maturity Model. 7. New adaptable architectures to support legacysystems. 8. Metrics, Costs, and Scorecards.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 4. Competing Globally1. Global Competition is Fierce.2. Managing Customers and delivering products is complex.3. Variability with SOP Planning and Forecasting Demand.4. Fluctuations in demand with seasonality, promotions, trends, cycles.5. Warehousing & Distribution, Fulfillment, On-Time Delivery.6. Planning manufacturing capacity, resources, equipment, people.7. Manufacturing Operations inventory, WIP, metrics, cycle / down time, setups.8. Product Definition, production efficiency, dispatching, quality, & maintenance.9. Corporate governance, regulations and reporting. Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 5. Supply Chain Gaps 1. Large increase in product variants by region and season 2. Much shorter new product development and time-to-volume (TTV)cycle times 3. Increasing and wide demand forecast errors 4. Diverse global regulatory and customer compliance requirements 5. Competition = continuous cost reduction 6. More dynamic supply networksMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 6. Business Drivers Impacting Manufacturers Which business drivers are mostimportant to overall success ofyour organization? 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 7. Business Drivers Impacting Manufacturers 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 8. Manufacturing Gaps No Visibility Silo SiloSilo Silo SiloSilo SiloMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 9. Driving Operation Excellence with PeopleMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 10. TransformationMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 11. ISA-95 ModelMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 12. ISA-95 Operation ModelsManufacturing Operation Information Models Schedule PerformanceInformation Information Production OperationsProduction ScheduleProduction PerformanceMaintenance Schedule Maintenance PerformanceQuality Test Schedule MaintenanceQuality Test PerformanceOperationsQualityDefinition Operations Capability Information InformationProduct Definition Information Production Capability InformationMaintenance Definition Information Maintenance Capability InformationQuality Definition Information Quality Capability InformationMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 13. Visualizing InformationMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 14. Process WorkflowManualProcessIslands OrchestratedConnected Processes SystemsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 15. Benefits: Examples1. Increasing production visibility from 15 days to less than a minute.2. Decreased manufacturing cycle time example: 23.5 days to 4 days.3. Increasing material and production throughput.4. Increased Finished Goods and Production Capabilities.5. Increased Capacity and ability to take on more demand.6. Improved overall equipment effectiveness.7. Reduced inventories.8. Increased employee productivity.9. Reduced work order fulfillment lead time from two weeks to two days10. Improving customer response and service.Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 16. ISA-95 Operation Production FlowsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 17. ISA-95 Model Product ProductionProductionProductiondefinition capability scheduleperformanceDetailed production scheduling Production Productionresourcetrackingmanagement Production Productionperformance dispatchinganalysisProductProduction definitiondatamanagementcollection ProductionexecutionmanagementEquipment and process Operational OperationalEquipment and process specific production rules commands responsesspecific dataProduction level 1-2 functionsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 18. ISA-95 Standards Based Manufacturing SystemsSiteEquipment CapabilityEquipment SpecificationEquipment Requirement Area Equipment SegmentsEquipment ActualProduct segmentsConsumable ExpectedConsumable ActualProcess segmentsMaterial CapabilityMaterial SegmentMaterial Specification Equipment UnitsMaterial Produced RequirementMaterial Consumed Requirement Routes Material Produced ActualMaterial Consumed Actual Equipment OperationsPersonnel CapabilityPersonnel Segment Capability Material OperationsPersonnel SpecificationPersonnel Segments TransformationsPersonnel RequirementPersonnel ActualMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 19. Process WorkflowOperations Performance: Operations Request: Actual/ Alerts/ GenealogyGenealogyDefinitions/ Rules Alarms/ Triggers Process Work Cell Outgoing QA TestIncoming QA TestOperations ManagementA orchestrated sequence of manual and equipmentQA Data operations performed for material transformations QA DataExecution: Compliant, Traceable, and Validated ConsumedMaterials . OutIn Materials Operation 1 Operation 2 Operation NMaterialsManualRecipesEquipmentStates, SOPs, Work Operations Interface Events, Instructions Alarms, KPIsChangeoversEquipmentFixtures, KitsTooling Mgmt.ToolingInventoryMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 20. Existing Legacy SystemsLegacy 10-20 yearsDisconnected VendorSystemsSCADA/HMIRecipe & BatchHistoriansLegacy DatabasesOld PLCs, ControllersProprietary OEM sys.2D BarcodesVendor DriversProprietary SystemsWindows NT, 95, VMS,Unix, etc.Excel, AccessMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 21. Manufacturing Service BussMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 22. New MOM Approach allows decomposition ofapplications into servicesReusable building blocksReusable servicesenable a nimble ITinfrastructure thatadapts to meet changingbusiness needsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 23. Dashboards & ReportingMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 24. New MOM 2.0 Approachcourtesy ofChangethese Business Process 1 Business Process 2without impactingtheseBusiness Business Business Business Business Business Business BusinessChange Service Service Service Service Service Service Service ServicetheseITwithout IT IT IT ITIT IT IT IT Componentredeveloping ITtheseMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 25. New MOM 2.0 Framework Approach7 Business processes are optimized, changed, OPTIMIZED scaled based on quantitative feedback 6 Foundation framework assures repeatable content REPEATABLEfor business processes with consistent delivery at all sites without hand-carving implementationsFRAMEWORK 5 a)Measure/manage effectiveness of key busMfg 2.0 QUANTITATIVELY processes MANAGED b)Measure/manage effectiveness of bus services4 Business processes decomposed to activities:PROCESSMapped into services or objects and managed by ORCHESTRATION a work flow and execution engine3 Business processes interpreted and managed onWORKFLOW a central resource, e.g. rules engineEXECUTION2 Application-centric integration architectureMANAGEDcenters on enterprise bus and/or select web INTEGRATION services1 Point-to-point connectivity No SOA INITIAL No web servicesMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 26. New MOM 2.0 Framework Approach 2 128Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 27. New MOM 2.0 Work FlowsMonitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 28. Metrics 2011, Aberdeen Group. All Rights Reserved. Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics 29. Metrics and Root CausesDaily OEE OEE Unplanned Downtime %Performance Loss % Quality Loss % 120.00% 100.00%80.00%60.00%40.00% 91.98%88.14% 63.68% 49.90% 62.90%20.00% 43.11%28.52% 0.00% -20.00% 16Wed 07-Mar-2012 Thu 08-Mar-2012 Fri 09-Mar-2012Sat 10-Mar-2012Sun 11-Mar-2012 Mon 12-Mar-2012Tue 13-Mar-2012OEE43.11% 28.52%63.68% 91.98% 49.90% 88.14%62.90%Planned Downtime %Unplanned Downtime %0.00%0.00% 7.65%0.00%0.00%2.11%14.89%Performance Loss % 56.89% 71.48%19.85%8.02% 50.10%0.00%22.21%Quality Loss %0.00%0.00% 8.82%0.00%0.00%9.74% 0.00%Downtime 100.00% 100.00%91.32%100.00%100.00%97.85% 83.47%Performance 43.11%28.52%77.48% 91.98% 49.90% 100.00% 75.35%Quality100.00% 100.00%90.00%100.00%100.00%90.08%100.00%Monitoring Facilities and Energ

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