E-manufacturing Explained

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To make e-manufacturing work, integration is needed between various disparate systems.To understand why this is such an issue, one needs to understand what the different systems or system components do, their objectives, their specific focus areas and how they interact with other systems. It is also required to understand how these systems evolved to their current state, as the concepts used during the early development of systems and technology tend to remain in place throughout the life cycle of the systems/technology. It is thus important to know how systems and technology evolved over time to understand their current operation, benefit and deficiencies.The following chapters will take the reader through the evolution of systems and technology in order to establish a base-line understanding of the various kinds of systems and what lead to their development and evolution. It will then explore various standards,concepts and techniques used over the years to model systems and hierarchies in order to understand where they fit into the organization and supply chain. It will look at the specific system components and what they do, and at the ways in which they can be designed and graphically depicted for easy understanding by both information technology(IT) and non-IT personnel.Without a good implementation philosophy, very few systems add any real benefit to an organization, and for this reason the ways in which systems are implemented and installation projects managed are also explored and recommendations are made as to possible methods that have proven successful in the past. The human factor and how that impacts on system success are also addressed, as is the motivation for system investment and subsequent benefit measurement processes.Finally, the vendor/user supply/demand within the e-manufacturing domain is explored and a method is put forward that enables the reduction of vendor bias during vendor selection.2 Practical E-Manufacturing and Supply Chain Management The objective of this book is to provide the reader with a good understanding regarding the four critical factors (business/physical processes, systems supporting the processes,company personnel and company/personal performance measures) that influence thesuccess of any e-manufacturing implementation, and the synchronization required between these factors. manufacturing definition‘The core of an e-manufacturing strategy is the technology road map for information transparency between the customer, manufacturing operations and suppliers. Ane-manufacturing strategy takes e-business processes, such as build-to-order or reliability centered maintenance and generates guidelines for implementing plant systems. Thee-manufacturing strategy takes the e-business and manufacturing strategies and creates aroadmap for system development and implementation in the plant.’ – AMR Research.E-manufacturing can mean many things from e-procurement, B2B, B2C, industrial Ethernet, portals, TCP/IP, UDP, XML, collaborative manufacturing, wireless and embedded web servers, to supply chain management (SCM).‘E-manufacturing is the vertical (business) and horizontal (supply-chain) integration of systems to ensure the correct dissemination of information throughout the value-chain ofa business, making use of appropriate technology like the Internet to ensure that real-time accurate information is available at all decision points throughout an organization and supply chain. Background Earlier days, the plant floor was isolated from the rest of the enterprise, operating autonomously and out of the sight from the rest of the company as well as from the eye of the shareholders. Today everybody is driven by bottom line performance, and the shop floor is one area that shareholders and the financial analysts are becoming more interested in. Meeting or exceeding earnings forecasts and the return on net assets (RONA) are important criteria used to judge the performance of an organization and as such directlyinfluence the share price.In the case of a manufacturing company not only growing sales, but also the efficient operation of the unit are important criterion for success. With the removal of all non value-added activities and making effective use of technologies like Internet, a company can operate better, faster and cheaper compared to its competitors.The manufacturing plant, in a manufacturing company, is the heart where all value creation takes place. In the supply-chain model, connection of the plant with the entire chain is crucial and accurate, timely information is more critical than ever. All functions from planning to logistics are under review for potential cost saving opportunities. Whilemany companies are facing the challenge of meeting consumer demands for e-commerce channels, most manufacturers are also trying to make sense of the maintenance, repair and operations (MRO) organization and understand the true potential of the plant floor.The most strategic advantage of any organization today is information, and accurate information is critical for making the right decisions, whether the challenge is faster – to marketcycles, improved process yield, non-stop operations or tighter supply-chain coupling. The plant is the starting point for bigger information connectivity. Computer basedplant floor controls for manufacturing machinery, material handling systems and related equipment generate a wealth of information about productivity, product design,quality and delivery.Introduction to e-manufacturing systems 3Today a company can have a single, complete set of operational capabilities includingrapid plant design and deployment, real-time business management system connectivity,comprehensive asset management of people, products and process and a seamless coupling to the entire supply chain via the web. This is e-manufacturing, a concept much greater than the sum of its parts.Keys for a successful e-manufacturing strategy:• Integrated plant-floor automation• Seamless connections to the enterprise systems enabled through software andservices• Comprehensive asset management and reliability-centered maintenance• Tailored e-business strategies for supply-chain efficiencies.1.4 E-manufacturing strategy A company’s manufacturing plants should be able to build-to-order and maintain non stop operations. To achieve this four competencies are required of any manufacturer:Design The ability to rapidly deploy and reconfigure manufacturing production capacity based on demand for goods. Companies should be able to accelerate and streamline the design and deployment of production processes. Fast product introduction in response to changing market demand is a critical competitive advantage and a key to growth.Operate Optimization of process yield and consistency throughout the enterprise.Plant productivity has always been a focus in manufacturing. Initiatives like lean manufacturing drive out excess, achieving non-stop operations for maximum efficiency and throughput of production. Techniques like six-sigma reduce variability in processes to ensure peak quality.Maintain Efficient management of all company assets – materials, processes, and employees to ensure non-stop operations and optimum asset productivity. It is not possible to sustain such a fast-paced environment where growth and profits are demanded simultaneously, without a solid information foundation.Synchronize Tight coupling of a manufacturing operation into the greater supply chain, both up- and down-stream. This is best achieved only after the other three competencies are firmly implemented.E-manufacturing requires a new approach to manufacturing and distribution systems throughout the design, operate, maintain and synchronize competencies. It is made possible through the complete integration of manufacturing control systems and enterprise applications using commercially developed, off-the-shelf-information technologies. E-manufacturing provides direct information exchanges between manufacturing, customer relationship management (CRM) systems and SCM systems.Key requirements to successfully operate an e-manufacturing environment:• 24 × 7 availability of information to the supplier/customer• Scalability of systems – once information is available to people, many more people will immediately want to make use of it• Variety of connectivity options – to handle many data sources• Intuitiveness or organization of information – people should get the data easily• Personalization of information needs• Adaptability to constant change• Rapid development – faster time to the market• Legacy system integration – few people have the money and time for totally new systems on a frequent basis4 Practical E-Manufacturing and Supply Chain Management• Application inter-operability• Management• Security• Diagnostics  E-manufacturing challenges Changing attitudes of customers and the dynamic market environment increase the pressure on the organizations across the world whatever may be their field of operation,product/service and size. Following is only a few of the challenges facing manufacturing organizations in the e-manufacturing era. E-commerce E-commerce refers generally to all forms of transactions relating to commercial activities that are based upon the processing and transmission of digitized data,including text, sound and visual images. It extends beyond the boundaries of a single enterprise and can be applied to almost any type of business relationship. It is far more than business-to-customer interaction over the Internet, and those who deploy solid business-to-business Internet-enabled manufacturing technologies to fulfill the instant demand and mass customization expectations generated by e-commerce will have a definite advantage.E-commerce and supply-chain collaboration through the Internet align and strengthen the outward view, impression and operations of an organization. An outward look,without an inward look to the operation itself, reduces the full potential benefits of e-commerce and supply-chain collaboration.E-business customers want customized orders, more order information and faster response from the manufacturing supply chain, unlike other traditional customers who order from the already produced stock. It therefore requires an investment in anew generation e-manufacturing system, which provides speed, flexibility and visibility tothe entire enterprise and connects e-business orders to real-time production processes. The e-manufacturing challenge Introduction to e-manufacturing systems Industry drivers Global market• Customers now search the world• Logistics systems are improving.Technology is changing very fast• Digital technology revolution• Mobile technology exploring• New economy trends are real.Demanding and fickle customer• Price, quality, delivery and service• E-business and e-auction are changing the rules. Company drivers Cost efficiency• Need for size and scale• High global infrastructure costs.Fast changing product lines• Some are exploding and some dying• Mechanical/electrical/electronic shift• Software, increasingly the key driver.Rising business complexity• Convert to e-manufacturing• Conversion to e-business. Security Security needs to be managed from the start. Protection mechanisms include network security, platform security, application security, client authentication and authorization.Many Internet applications do not work through firewalls or require special modifications to work, as security was not designed into the solution from the beginning. Another way to address the security issue is with dedicated fibre. Big companies may consider dedicated fibre while implementing system.1.5.5 Seamless integration E-manufacturing requires seamless ‘sensor to boardroom and beyond’ systems integration for maximum benefit delivery.The challenge is that most enterprise systems do not integrate well with operations due to the barrier created by the MRPII).Another problem is that most enterprise systems are patched together and not well integrated. ‘Best of Breed’ solutions are costly to implement, complex to manage and require never-ending integration. Businesses are demanding more value, less risk and better Practical E-Manufacturing and Supply Chain Management integration for a competitive advantage. They require affordable enterprise-wide business systems that really work, build-to-order manufacturing systems, supply chains that run at Internet speed and integrated, open-architecture systems that can be implemented quickly and applied seamlessly, producing higher productivity, less risk and higher returns from the software investment. manufacturing – seamless system. manufacturing challenge Introduction to e-manufacturing systems E-manufacturing benefits An ‘E-manufacturing’ survey report claims that organizations improved their performance by the following amounts through the implementation of an e-manufacturing strategy. This is compared to the historical ‘lean manufacturing enterprise including six sigma’ and classic ‘MRPII enterprise’ strategy implementations. This survey just indicates the potential benefits a well-implemented e-manufacturing system can provide to a business.Average Plants Classic MRPII Manufacturing Best Plants Lean Enterprise and Six Sigma E-Manufacturing PlantsLead Time 3 months 3 days 12–24 hQuality Level (Defects) 500 ppm 50 ppm 3 ppm Inventory Turns 5 × per year 10 × per year 20 × per year Delivery Performance 90% 98% 99.9%Sales Growth 3% 8% 10%RoS% 10% 16% 20% E-manufacturing and supply chain E-manufacturing systems enable collaboration within the ERP/SCM environment without overlap.ERP/SCM E-Manufacturing Financial systems Waste and downtime tracking Procurement Product tracking Finished goods, raw materials Production management Customer service Control systems integration Customer orders Process history Capacity planning Real-time quality management Shipping and logistics Shop floor metrics Warehouse management Decision support Supply-chain planning Shop floor user interface Scheduling It has been stated that in the net age, the company with the best supply chain in terms of cost and quality is likely to be the winner. This is precisely why more and more manufacturing enterprises globally are outsourcing for the best quality materials.The SCM focuses on those tasks that add real value to the product and give maximum profits to the organization. Global businesses are contributing toward the shift of the supply chain from a position where SCM was critical to cost and quality to one where itis becoming one of the most powerful ways for companies to offer greater and differentiated value to customers.In the past, a great supply chain presupposed long-term relationships with vendors, withthe enterprise and suppliers working together to improve design, boost quality, reduc ecosts and share benefits. Now, in the Internet market, every player is, necessarily, a global Practical E-Manufacturing and Supply Chain Management one and manufacturers are likely to discover a low cost, high-quality supplier who fits thebill. The Internet is changing the chain.• Predetermined pricing is giving way to auction-based bidding for the bestprice.• Sourcing is becoming global as suppliers all over the world sell on the Internet.• Long-term partnerships with vendors are making room for deal-to-deal relationships.• Buyers are being forced to compete with one another to secure the best and cheapest suppliers.


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