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-

TRANSCRIPT

Page 1: Transforming operation strategies with MOM and ISA-95 standards
Page 2: Transforming operation strategies with MOM and ISA-95 standards
Page 3: Transforming operation strategies with MOM and ISA-95 standards

© Copyright 2010 - Factory IQ

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Transforming operation strategies to deliver more

agility & flexibility using an ISA-95 Maturity Model

Rod Parry

Managing Director

Factory IQ

MCP, PMP, CSSBB

Office: 503-530-8740

[email protected]

Page 4: Transforming operation strategies with MOM and ISA-95 standards

BIO & Background

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

28 Years – 100 Plants - 200 Projects

• Business and Operations Strategy

• Engineering

• Plant Operations and Maintenance

• Plant-wide Systems

• MES/MOM Systems integrated with Process

Automation

Page 5: Transforming operation strategies with MOM and ISA-95 standards

Agenda

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

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 Strategy

and Operation Strategies.

6. Introducing MOM, ISA-95 Standards and the

Manufacturing Maturity Model.

7. New adaptable architectures to support legacy

systems.

8. Metrics, Costs, and Scorecards.

Page 6: Transforming operation strategies with MOM and ISA-95 standards

Competing Globally

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

1. 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.

Page 7: Transforming operation strategies with MOM and ISA-95 standards

Supply Chain Gaps

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

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 networks

Page 8: Transforming operation strategies with MOM and ISA-95 standards

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Business Drivers Impacting Manufacturers

© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Which business drivers are most important to overall success of your organization?

Page 9: Transforming operation strategies with MOM and ISA-95 standards

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Business Drivers Impacting Manufacturers

© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

Page 10: Transforming operation strategies with MOM and ISA-95 standards

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Silo

Silo

Silo

Silo

Silo

Silo Silo

Manufacturing Gaps – No Visibility

Page 11: Transforming operation strategies with MOM and ISA-95 standards

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Driving Operation Excellence with People

Page 12: Transforming operation strategies with MOM and ISA-95 standards

Transformation

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Page 13: Transforming operation strategies with MOM and ISA-95 standards

ISA-95 Model

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Page 14: Transforming operation strategies with MOM and ISA-95 standards

ISA-95 Operation Models

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Manufacturing Operation Information Models

Production

Operations

Maintenance

Operations

Quality

Operations

Schedule

Information

Definition

Information Capability

Information

Performance

Information

Production Schedule

Maintenance Schedule

Quality Test Schedule

Product Definition Information

Maintenance Definition Information

Quality Definition Information

Production Performance

Maintenance Performance

Quality Test Performance

Production Capability Information

Maintenance Capability Information

Quality Capability Information

Page 15: Transforming operation strategies with MOM and ISA-95 standards

Visualizing Information

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Page 16: Transforming operation strategies with MOM and ISA-95 standards

Process Workflow

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Process Islands

Connected Systems

Manual

Orchestrated Processes

Page 17: Transforming operation strategies with MOM and ISA-95 standards

Benefits: Examples

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

1. 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 days

10. Improving customer response and service.

Page 18: Transforming operation strategies with MOM and ISA-95 standards

ISA-95 Operation Production Flows

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Page 19: Transforming operation strategies with MOM and ISA-95 standards

ISA-95 Model

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Production data

collection

Production execution

management

Production resource

management

Production dispatching

Production tracking

Production performance

Detailed production scheduling

Production schedule

Product definition

management

Production level 1-2 functions

Production performance

analysis

Production capability

Product definition

Equipment and process specific production rules

Equipment and process specific data

Operational responses

Operational commands

Page 20: Transforming operation strategies with MOM and ISA-95 standards

ISA-95 Standards Based

Manufacturing Systems

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Equipment Capability

Equipment Specification

Equipment Requirement

Equipment Segments

Equipment Actual

Consumable Expected

Consumable Actual

Material Capability

Material Segment

Material Specification

Material Produced Requirement

Material Consumed Requirement

Material Produced Actual

Material Consumed Actual

Personnel Capability

Personnel Segment Capability

Personnel Specification

Personnel Segments

Personnel Requirement

Personnel Actual

Site

Area

Product segments

Process segments

Equipment Units

Equipment Operations

Material Operations

Routes

Transformations

Page 21: Transforming operation strategies with MOM and ISA-95 standards

Process Workflow

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Process Work Cell

Operations Management

A orchestrated sequence of manual and equipment

operations performed for material transformations

Execution: Compliant, Traceable, and Validated

States,

Events,

Alarms, KPIs

Recipes

Changeovers

Fixtures, Kits Equipment

Ou

tgo

ing

QA

Te

st

Manual

Operations

Operation N ….

Operation 2

Tooling Mgmt.

SOPs, Work

Instructions

Inc

om

ing

QA

Te

st

Consumed

Materials

In Materials Out

Materials

QA Data QA Data

Genealogy Genealogy

Tooling

Inventory

Operations Request:

Definitions/ Rules

Operations Performance:

Actual/ Alerts/

Alarms/ Triggers

Operation 1

Equipment

Interface

Page 22: Transforming operation strategies with MOM and ISA-95 standards

Existing Legacy Systems

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Legacy 10-20 years

Disconnected Vendor

Systems

SCADA/HMI

Recipe & Batch

Historians

Legacy Databases

Old PLC’s, Controllers

Proprietary OEM sys.

2D Barcodes

Vendor Drivers

Proprietary Systems

Windows NT, 95, VMS,

Unix, etc.

Excel, Access

Page 23: Transforming operation strategies with MOM and ISA-95 standards

Manufacturing Service Buss

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Page 24: Transforming operation strategies with MOM and ISA-95 standards

New MOM Approach

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Reusable services

enable a nimble IT

infrastructure that

adapts to meet changing

business needs

Reusable building blocks

… allows decomposition of

applications into services

Page 25: Transforming operation strategies with MOM and ISA-95 standards

Dashboards & Reporting

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Page 26: Transforming operation strategies with MOM and ISA-95 standards

New MOM 2.0 Approach

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Business Process 1 Business Process 2

… …

IT

Component IT IT IT

IT

IT IT IT IT IT

Business

Service

Business

Service

Business

Service

Business

Service

Business

Service

Business

Service

Business

Service

Business

Service

Change

these

without

impacting

these

Change

these

without

redeveloping

these

courtesy of

Page 27: Transforming operation strategies with MOM and ISA-95 standards

New MOM 2.0 Framework Approach

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

7

6

Business processes are optimized, changed,

scaled based on quantitative feedback

Foundation framework assures repeatable content for business processes with consistent delivery at all sites without ‘hand-carving’ implementations

a)Measure/manage effectiveness of key bus processes

b)Measure/manage effectiveness of bus services

OPTIMIZED

REPEATABLE

QUANTITATIVELY

MANAGED 5

1

2

3

4

INITIAL

MANAGED

INTEGRATION

WORKFLOW

EXECUTION

PROCESS

ORCHESTRATION

Application-centric integration architecture centers on enterprise bus and/or select web services

Point-to-point connectivity – No SOA –

No web services

Business processes interpreted and managed on

a central resource, e.g. rules engine

Business processes decomposed to activities: Mapped into services or objects and managed by a work flow and execution engine

Mfg 2.0

FRAMEWORK

Page 28: Transforming operation strategies with MOM and ISA-95 standards

New MOM 2.0 Framework Approach

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

28

1

2

Page 29: Transforming operation strategies with MOM and ISA-95 standards

New MOM 2.0 Work Flows

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

Page 30: Transforming operation strategies with MOM and ISA-95 standards

Metrics

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

© 2011, Aberdeen Group. All Rights Reserved.

Page 31: Transforming operation strategies with MOM and ISA-95 standards

Metrics and Root Causes

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

16 Wed 07-Mar-2012 Thu 08-Mar-2012 Fri 09-Mar-2012 Sat 10-Mar-2012 Sun 11-Mar-2012 Mon 12-Mar-2012 Tue 13-Mar-2012

OEE 43.11% 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%

Quality 100.00% 100.00% 90.00% 100.00% 100.00% 90.08% 100.00%

43.11% 28.52% 63.68%

91.98%

49.90%

88.14% 62.90%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Daily OEE

OEE Unplanned Downtime % Performance Loss % Quality Loss %

Page 32: Transforming operation strategies with MOM and ISA-95 standards

Metrics

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics

© 2011, Aberdeen Group. All Rights Reserved.

Page 33: Transforming operation strategies with MOM and ISA-95 standards

Thank You !

Questions ?

Monitoring Facilities and Energy Assets with Real Time Intelligence and Analytics