The Hitchhiker’s Guide to Manufacturing Operations Management: ISA-95 Best Practices Book 1.0

By Charlie Gifford

Do you want to dramatically lower total cost of ownership (TCO) for manufacturing IT architectures and manufacturing, as well as reduce supply chain operational costs? The methodologies and technical applications presented in this first annual ISA-95/MESA Best Practices book will help get you started on the right track. This book provides in-depth coverage on how you can apply ISA-95, Enterprise-Control Integration Standard, to help lower TCO of manufacturing operations management (MOM) systems and their enterprise and plant interfaces. It consists of a series of related “how-to” white papers described in the context of ISA-95 models, definitions, and data exchanges.

To be competitive, actual manufacturing operations activities must be highly interactive in supply chain and enterprise processes for effective collaboration and competition. This is the domain of collaborative and flexible MOM system architectures. This book explains the business cases for using evolving ISA-95 methods to effectively design, implement, change and optimize the MOM business processes and supporting MOM system architectures within the distributed pull supply chains.

• Language: English
• Publisher: International Society of Automation
• Release date: Aug 20, 2012
• ISBN: 9781937560423

Charlie Gifford

BSs in Chemical and Material Engineering, Graduate work in Solid State Physics from University of Maryland. For the past 27 years, Charlie Gifford, Lean Operations Management Consultant, has developed advanced manufacturing systems in direct support of continuous improvement initiatives in a wide variety of industries: aerospace, electronics, automotive, food & beverage, telecom, energy, and life sciences. As a nationally recognized expert in combining Lean Manufacturing practices with Operations Management Systems, his background includes hands-on design, design super-vision, and team leadership in Production Transformation. As an industry leader in professional organizations such as ISA, Supply Chain Council and MESA International, he has contributed to and taught many manu-facturing operations standards, such as ISA-88, ISA-95, Next Gen MESA and SCOR models. He has published over 40 papers and four books on the subject of operations management best practices. Most recently as Chairman of the ISA-95 Best Prac-tices Working Group, he was the Chief Editor and Contributing Author for the book, The Hitchhiker’s Guide to Manufacturing Operations Management: ISA-95 Best Practices Book 1.0. He was awarded the 2007 MESA International Outstanding Contributor Award and 1995 Captain’s Citation Award for [e-mail]

Book preview

THE HITCHHIKER’S GUIDE TO MANUFACTURING OPERATIONS MANAGEMENT:

ISA-95 BEST PRACTICES BOOK 1.0

by Charlie Gifford

Editor and Contributing Author

Copyright © 2007 by ISA—Instrumentation, Systems, and Automation Society

67 Alexander Drive

P.O. Box 12277

Research Triangle Park, NC 27709

All rights reserved.

Printed in the United States of America.

10 9 8 7 6 5 4 3 2

ISBN-13: 978-0-9792343-9-2

ISBN-10: 0-9792343-9-5

ebook ISBN 978-1-937560-42-3

No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher.

Notice

The information presented in this publication is for the general education of the reader. Because neither the author nor the publisher has any control over the use of the information by the reader, both the author and the publisher disclaim any and all liability of any kind arising out of such use. The reader is expected to exercise sound professional judgment in using any of the information presented in a particular application. Additionally, neither the author nor the publisher have investigated or considered the affect of any patents on the ability of the reader to use any of the information in a particular application. The reader is responsible for reviewing any possible patents that may effect any particular use of the information presented.

Any references to commercial products in the work are cited as examples only. Neither the author nor the publisher endorses any referenced commercial product. Any trademarks or tradenames referenced belong to the respective owner of the mark or name. Neither the author nor the publisher makes any representation regarding the availability of any referenced commercial product at any time. The manufacturer’s instructions on use of any commercial product must be followed at all times, even if in conflict with the information in this publication.

Library of Congress Cataloging-in-Publication Data

The hitchhiker’s guide to operations management : ISA-95 best practices book 1.0 / by Charlie Gifford, editor and contributing author.

p. cm.

ISBN 978-0-9792343-9-2 (pbk.)

1. Production management. 2. Production planning. 3. Computer integrated manufacturing systems. I. Gifford, Charlie.

TS155.H549 2007

658.5--dc22

2007012371

ACKNOWLEDGMENTS

As the Chair of the ISA-95/MESA Best Practices Working Group (95BPWG), I have had the honor of working with nine white paper committees over the past year and a half to put together the first collection of ISA-95 best practices white papers as Book 1.0. These white paper committees were comprised of members (authors and reviewers) from 25 companies and 11 countries, which demonstrates how ISA-95 is being applied globally.

This work was made possible by the great contributions of Brandy Richardson (MESA International), Susan Colwell (ISA), and Scott Clark (Logica Design, Inc.). They are to be recognized for their exceptional efforts in making this book a high quality piece of work.

In addition, the chapters in this book were developed by the hard work of the following authors, contributing editors, and reviewers.

A GREAT BIG THANK YOU TO ALL!

Chapter 1: ISA-95 Best Practices and Business Case Evolve Through Manufacturing Application

Authors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Paresh Dalwalla, President, OpteBiz Inc

Reviewers and Contributing Editors

• J. Keith Unger, Principal Manufacturing IT Consultant, Stone Technologies Inc.

• Alison J. Smith, Sr. Research Analyst, Manufacturing & Production Operations, AMR Research

• Greg Gorbach, Vice President, Collaborative Manufacturing, ARC Advisory Group

• Jim Strothman, Editorial Consultant

Chapter 2: An Overview and Comparison of ISA-95 and OAGIS (Standards for Manufacturing Systems Integration ISA-95 and OAGIS White Paper Series: White Paper 1)

Authors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Em delaHostria, Technical Program Manager-Global Standards & Trade Advanced Technology Group, Rockwell Automation

• David Noller, Manager, Automotive Solutions, IBM Software Group, Industrial Solutions Development, IBM Corporation

• Lorenzo Childress, Software Engineer, IBM Software Group, IBM Corporation

• Alan Boyd, IBM Software Group - Advanced Projects, Industrial Solutions, IBM Corporation

Reviewers and Contibuting Editors

• Julie Fraser, Principle, Industry Directions Inc.

• David M. Connelly, CEO, Open Applications Group Inc.

• Dave Emerson, Principal Systems Architect, Yokogawa

• Tim Thomasma, Ph.D., CISSP, Technical Expert - Manufacturing IT, Application Development Services, Ford Motor Company

• Ramana Kumar, Sr. Applications Engineer, Siemens

• Greg Gorbach, Vice President, Collaborative Manufacturing ARC Advisory Group

• Jim Strothman, Editorial Consultant

Chapter 3: OAGIS, ISA-95 and Related Manufacturing Integration Standards - A Survey (Standards for Mfg. Systems Integration ISA-95 and OAGIS White Paper Series: White Paper 2)

Authors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Em delaHostria, Technical Program Manager-Global Standards & Trade Advanced Technology Group, Rockwell Automation

• David Noller, Manager, Automotive Solutions, IBM Software Group, Industrial Solutions Development, IBM Corporation

• Lorenzo Childress, Software Engineer, IBM Software Group, IBM Corporation

• Alan Boyd, IBM Software Group - Advanced Projects; Industrial Solutions, IBM Corporation

Reviewers and Contibuting Editors

• Julie Fraser, Principle, Industry Directions Inc.

• David M. Connelly, CEO, Open Applications Group Inc.

• Jim Strothman, Editorial Consultant

• Paul Ashmore, Senior Manufacturing Operations Consultant, GE Fanuc Automation

• David R Hinkler, PMP, MGR Application Center, Rockwell Automation

• A. H. (Bert) Wissink, MES consultant, Atos Origin Nederland BV

• Frank Heinrich, iBASEt

Chapter 4: ISA-95 As Is/To Be Study

Authors

• Bianca Scholten, Partner, ISA-95/MES Competence Centre, Ordina Technical Automation BV

• Matthew Schneider, Principle Operations Consultant (Independent)

Reviewers and Contibuting Editors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Reinoud Visser, Principal Consultant, Atos Origin Nederland BV

• Jim Strothman, Editorial Consultant

Chapter 5: Manufacturing Information Systems - ISA-88/95 based Functional Definition

Author

• Jean Vieille, President, Psynapses

Reviewers

• Clifford Lichkowski, Prairie Malt Limited (a Cargil Inc. Joint Venture)

• Charlie Gifford, Director-Lean Production Management, GE Fanuc Automation

• Reinoud Visser, Principal Consultant, Atos Origin Nederland BV

• Jim Strothman, Editorial Consultant

• Richard Martin, Vice President, Aspen Technology, Inc

• Dennis Brandl, President, BR&L Consulting"

Chapter 6: ISA-95 Implementation Best Practices, Workflow Descriptions Using B2MML

Authors

• Costantino Pipero, CEO, Beeond, Inc.

• Kishen Manjunath, Solutions Architect, Honeywell Process Solutions

Reviewers and Contibuting Editors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Khris Kammer, Global Manager - MES Competency Center, Rockwell Automation

• Satya Narayan Sahu, Solution Manager, Application Solution Management, SAP Labs India Pvt. Ltd.

• Jim Strothman, Editorial Consultant

Chapter 7: ISA-95 Based Operations and KPI Metrics Assessment and Analysis

Author

• Yves C. Dufort, Eng, MBA; Invensys / Wonderware

Reviewers and Contibuting Editors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Clifford Lichkowski, Prairie Malt Limited (a Cargil Inc. Joint Venture)

• Jim Strothman, Editorial Consultant

Chapter 8: ISA-95: The (SAP) Enterprise-Plant Link to Achieve Adaptive Manufacturing Analysis

Author

• Satya Narayan Sahu, Solution Manager, Application Solution Management, SAP Labs India Pvt. Ltd.

• Eddie Whitfield, Senior Principle Business Consultant. Aspen Technology, Inc.

Reviewers and Contibuting Editors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Julie Fraser, Principle, Industry Directions Inc.

• Leo Keoghan, Account Manger Supply Chain Systems, Kraft Inc.

• Jim Strothman, Editorial Consultant

Chapter 9: ISA-95 Based Change Management

Author

• Michael Grasley, P.E., Director-Consulting, ASECO Integrated Systems

Reviewers and Contibuting Editors

• Charlie Gifford, Director of Lean Production Management, GE Fanuc Automation

• Mary Patterson, Director, MES Nestlé Purina Pet Care

• Leo Keoghan, Account Manger Supply Chain Systems, Kraft Inc.

• Jim Strothman, Editorial Consultant

TABLE OF CONTENTS

Introduction

Chapter 1

Recognizing a Historical Inflection Point in World Industry and Markets

Goal of the ISA-95/MESA Best Practices Book Series

Manufacturing Trends Relevant to the Role of ISA-95

DDSNs Create the Need for Interactive Twenty-First Century Manufacturing Model

ISA-95 Blends SOA Approach into Manufacturing Operations Management

Post-Part 6 B2MML Required to Meet MSA Requirement and End User Demand

The ISA-95 Business Value: Low-Cost B2M Interfaces & Flexible Manufacturing Application Framework

ISA-95 MAF Enables Twenty-first Century Lean Manufacturing Renaissance

Conclusion

Chapter 2

Overview

A Common Vision

ISA-95

Brief History of ISA-95 (aka: IEC 62264)

Description of ISA-95 Structure

Current Status

Typical Application (examples)

OAGIS

Brief History of OAGIS

Description of OAGIS Structure

Current Status

Typical Application (examples)

ISA-95 OAGIS Comparison

Data Model Comparison

Messaging Support Comparison

Extensibility Comparison

OAGIS Extensibility

ISA-95 Extensibility

Chapter 3

ISA-95

Brief History of ISA-95 (aka: IEC 62264)

Description of ISA-95 Structure

OAGIS

Related Manufacturing Integration Standards and Initiatives B2MML

BatchML

EDI

JAVA Message Services (JMS)

MIMOSA/ OSA-EAI

MQTT

OASIS / ebXML

OPEN O&M

OPC (and derivatives)

PSLX

RossetaNet

SCOR

STEP

Web Services/SOAP

Conclusion

Chapter 4

Introduction

Method

Overview

Approach

Steps in the ISA-95 Analysis

Relationship between the Manufacturing Operation Management Models

List of User Requirements Next Steps

Future Architecture and Roadmap

Information Flows

Conclusion

Chapter 5

Scope of Manufacturing Information Systems

Overview

ISA-88/95 Functional Framework

Different views of Manufacturing Information Systems

Decisional view

Time View

Capability View

Operational View

Process and Task Styles

Roadmap to Smart Manufacturing Control

Overview of Information Systems Life-cycle

Functional vs. Technical Core Systems

Functional Core System Development

Overview

Resource Modelling

Functional Definition

Equipment Control Definition

Operation Control Definition

Operation Management Control Definition

Develop and Map the Technical Core System

Conclusion

Chapter 6

Introduction

What Does the Standard Provide?

Why Is There a Need To Define Implementation Best Practices? . .

B2MML Applications

What Kind of Information Needs To Be Exchanged?

How Does One Determine the Context and Content of the Information that Needs To Be Exchanged?

Segment Concept Is ISA-95 Foundation

Work Flows

Why Are Work Flows Complex?

How Does One Describe Required Work Flows?

Conclusion

Chapter 7

Overview

Defining Operations Metrics and KPIs

Value Proposition

Statement of Need (SON) Definition

Critical Success Factors (CSFs)

Prioritizing Options using the Value Chart

Defining and Developing Key Performance Indicators

Collecting Data and Normalizing Manufacturing Information

Periodic Review and Adjustment

Conclusion

Appendix 7-A; SCOR Performance Attributes and Level 1 Metrics

Appendix 7-B: Asset Utilization Functional Analysis Example

Appendix 7-C: KPI Priorities

Appendix 7-D: Object Model Inter-Relations

Appendix 7-E: Standardized Data Definition Framework

Appendix 7-F: Actual versus Planned Production Volume: ISA-95

KPI Examples

Chapter 8

Executive Summary

Technology to Bridge the GAP

ISA-95 Introduction

ISA-95 Scope

ISA-95 Background

B2MML: Implementing ANSI/ISA-95

Communication Mechanisms

Summary

Chapter 9

Introduction

The MOM Change Management Process

Characterizing the Change

Communicating Change

Conclusion

Appendix 9-A: New Product Introduction (NPI) Example

Appendix 9-B: New Inventory Management System (IMS) Example . .

Appendix 9-C: Example Company Organizational Chart

Appendix 9-D: Sample RACI Chart

LIST OF FIGURES

1-1: Twenty-first Century Distributed Supply Chains Mandates Manufacturing Change

1-2: Business Evolves into Configurable Demand-Driven Supply Chains

1-3: Production Capability Configured Real-Time: Evaluate Customer Value/OTD to Production Path and Profit Margin

1-4: ‘Simplified’ Work Flow Complexity Matrix

1-5: ISA-95 Part 3 Sample B2M Interface Chart: Real-World B2M Interfaces Exist Within/Between MOM Activity Model Functions

2-1: Standards-Based Application Integration

2-2: ISA-95 Domain Hierarchy from Purdue Reference Model

2-3: ISA-95 Physical (Work/Resource) Hierarchy

2-4: ISA-95 Data Flows of Interest Supporting Manufacturing Operations Management and Exchanges between Levels 3 and 4

2-5: ISA-95 Information Categories (objects) Handled by Manufacturing Operations Management and Exchanged between Levels 3 and 4

2-6: Example of ISA-95 Production Schedule Information Object Exchanged Between Level 4 and Level 3

2-7: ISA-95 Generic Detailed Work Activity Model (Part 3) for MOM

2-8: Example of ISA-95/OAGIS Transaction Composed of Two Basic Messages, Each Formed by an OAGIS Verb- B2MML Noun Combination

2-9: Example of a Sequence of ISA-95 Transactions to Enable a Specific Business Process Scenario – Production Schedule Changes Based on Production Capability Input

2-10: Example of Set of ISA-95 Transactions to Enable a Series of Level 4 to Level 3 to Support a Specific Business Process Scenario – Production Planning & Scheduling

2-11: Example of P&G B2MML Application in B2M System Architecture

2-12: OAGIS Scope

2-13: Example OAGIS Integration Scenario

2-14: Standard OAGIS BOD Structure

2-15: IBM EIMS - Current State: Customer Interfaces

2-16: IBM EIMS - Target State: Canonical Format and Framework

2-17: Order Management and Order Status Message Interactions Scenario

2-18: EIMS Canonical Model – Reuse Methodology and Assets

2-19: OAGIS Vendor Managed Inventory (Consumption) Scenario

2-20: OAGIS Production to Manufacturing Execution Scenario

2-21: Ford UpdateVehicleOrderStatus BOD, based on OAGIS UpdateWIPConfirm

2-22: OAGIS Extensibility – Accommodating Multiple Parties within a Vertical

2-23: Overlay Extensions to the OAGIS

3-1: Manufacturing Integration Standards – An Overview

3-2: ISA-95 Domain Hierarchy from Purdue Reference Model

3-3: ISA-95 Physical (Work /Resource) Hierarchy

3-4: Example OAGIS Integration Scenario

3-5: Standard OAGIS BOD Structure

3-6: OAGIS Scope

3-7: BatchML Master Recipe

3-8: BatchML Equipment Model

3-9: SCOR Organized around Five Major Management Processes

3-10: SCOR’s Hierarchical Model with Three Level of Process Detail

3-11: Types of STEP Systems

4-1: Generic Approach to Developing of As-Is and To-Be Manufacturing Operations Studies

4-2: ANSI/ISA-95.00.03-2005 Typical Expanded Equipment Hierarchy

4-3: Process Segments Example

4-4: ANSI/ISA-95.00.01-2000 Functional Enterprise-Control Model

4-5: Application Example of the Functional Enterprise-Control Model

4-6: ANSI/ISA-95.00.03-2005 MOM Model

4-7: ANSI/ISA-95.00.03.2005 Activity Model of Production Operations Management

4-8: ANSI/ISA-95.00.03 Production Resource Management Activity Model Interfaces

4-9: ANSI/ISA-95.00.03-2005 Activity Model of Maintenance Operations Management

4-10: ANSI/ISA-95.00.03-2005 Activity Model of Quality Test Operations Management

4-11: ANSI/ISA-95.00.03-2005 Activity Model of Inventory Operations Management

4-12: Overview of MOM Activities

4-13: Example of a Recommended Architecture (To-Be situation) and Roadmap Priorities

5-1: Critical Manufacturing Enterprise Flows

5-2: ISA-88/95 Physical Model

5-3: ISA-88 Procedural Model

5-4: ISA-95 Part 3 Manufacturing Operation Management Activity Model

5-5: ISA-88/95 Product Development Model

5-6: ISA-88/95 Fit to Production Life-cycles

5-7: ISA-88/95 Physical/Decisional Hierarchy

5-8: Temporal View of ISA-95 Activity Model

5-9: Manufacturing Information Systems Life-cycle

5-10: Master Project Components

5-11: Relationships between Master and Instance Projects

5-12: Functional Core System Overview

5-13: Functional Core System Development Process

5-14: Facility Model at the Heart of MIS

5-15: Modelling Process

5-16: Functional Definition Process

5-17: Task Consolidation

5-18: Developing & Mapping Technical Core System

6-1: ISA-95 Part 3 Sample B2M Interface Chart: Real World B2M Interfaces Exist Within/Between MOM Activity Model Functions

6-2: Manufacturing Work Flow Agility Matrix

6-3A: ProcessSegmentType Element of the B2MML Process Segment Schema

6-3B: ProcessSegment Element of the B2MML Process Segment Schema

6-4: Level 3 Manufacturing Operations Information Exchanges Represented by B2MML

6-5: Continuous Process Example

6-6: Batch Processing Example

6-7: Discrete Manufacturing Example

7-1: Typical Manufacturing Materials Costing Work Flow

7-2: SON Functional Breakdown Structure

7-3: Critical Success Factors for Appendix 7-B Example

7-4: Value Risk Index Chart with KPI Weight

8-1: Shop-floor to Top-floor Business Processes

8-2: Functional Hierarchy from ANSI/ISA-95.00.01-2000

8-3: Sample System Architecture

9-1: MOM Change Management Process

9-2: Activity Model of Production Operations Management

9-3: Activity Model of Maintenance Operations Management

9-4: Activity Model of Quality Test Operations Management

9-5: Activity model of Inventory Operations Management

LIST OF TABLES

1-1: DoD Levels of Information Systems Interoperability (LISI) Model

1-2: ISA-95 Business Value: Holistic vs. Project Approach

2-1: ISA-95 Product Segment – Sample Forms

4-1: Responsible Departments of (Fictitious) Enterprise (AS-IS)

4-2: Responsible Production Management Systems of (Fictitious) Enterprise (AS-IS)

4-3: An Example of the Equipment Hierarchy of a Company

4-4: Example of a Process Segment

7-1: Stakeholders Feedback

7-2: Measurement of Identified Options (or Projects) against Two (2) Factors: Achievability and Benefit Contribution

7-3: Examples of Production Indicators

7-5: SCOR Level 1 Benchmark Metrics [Note to Scott: This should probably be 7-4 as I couldn’t find Table 7-4 prior to this one in Chapter 7, which means it needs to be changed in the chapter, too. Thx. Susan]

8-1: ANSI/ISA-95.00.02-2001 Object Model to B2MML Schema Mapping

INTRODUCTION LAYERS OF ISA-95 TRANSLATION...

Hello All!

As the Chair of the ISA-95/MESA Best Practices Working Group (95BPWG), I have had the honor of working with nine white paper committees over the last year and a half to put together the first collection of ISA-95 best practices white papers as Book 1.0. These white paper committees were comprised of members (authors and reviewers) from 23 companies and 11 countries, which shows how ISA-95 is being applied globally.

For the newcomer, ISA-95 is a standard called the Enterprise-Control Integration Standard. It is made up of four approved parts with one in draft and one proposed. Chapters 1-3 contain white papers that provide the ISA-95 overview, comparison to related manufacturing IT standards, and the business case. The newcomer may want to first read either Chapter 2 or 3 depending on whether they want to start with an overview of the standard or a survey of manufacturing IT standards.

The 95BPWG was formed to create a public forum to publish the most current ISA-95 technical and methodology applications while simultaneously evolve a manufacturing application framework (MAF). This is our goal. Within Book 1.0 and each ongoing Book X.0, the current MAF will be updated and defined in White Paper #1. As each collection of white papers is mapped to the MAF, each Book X.0 provides a vehicle for the ISA-95 based MAF and best practices to evolve and be documented efficiently and openly. This provides public methodologies for manufacturing operations management (MOM). End users, vendors, and integrators consider the lack of public MOM methodologies as the major barrier to adoption of the ISA-95 and MOM software space. The white papers also provide a public vehicle to document how the ISA-95 standard is working or needs correction to function better in