Service Oriented Manufacturing Ideation Session
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1 ervice Oriented Manufacturing Ideation ession NDIA Manufacturing Division Meeting February 24, 2010 Mike McGrath ANER Jack White TechTeam Government olutions
2 Overview If we think of manufacturing as a set of services, then the processes, information and business linkages within and among members of a supply chain can employ: 1. ervice Oriented Architecture (OA) concepts, and 2. The best practices of the services sector We call the combination of these two ervice Oriented Manufacturing (OM) NDIA advocacy for OM could catalyze change and innovation in U manufacturing, and stimulate DoD investment in areas where R&D is needed. 2
3 Agenda Background Net Centric Manufacturing (NCM), Model Based Enterprise (MBE), and Global Collaborative Manufacturing Architecture (GCMA) ervice Oriented Manufacturing (OM) Technical Concepts from ervice Oriented Architecture (OA) Business Concepts from the ervices ector Discussion Possible involvement of NDIA Manufacturing Division 3
4 Background NCM and MBE visions Recognition that globalization and information technology are drivers of innovation in manufacturing businesses. DoD-sponsored GCMA study concluded that architecture is needed NCM and MBE require a platform that supports interoperability and reusability at the service level ervice Oriented Architecture (OA) may have application 2010 ervice Oriented Manufacturing (OM) proposed Architecture and business practices for future manufacturing enterprises Templates for modules that can be linked easily to provide end-toend solutions across broad spectrum of applications (from global networks to the factory floor) 4
5 Concepts from ervice Oriented Architecture (OA) OAs have been developed to decouple business services from the underlying plumbing of information technology Rather than large, highly integrated software applications that are hard to change, OA systems compose end-to-end solutions by linking modules called services Registries to make available services discoverable tandards to make services interface properly and securely ervice level agreements to ensure performance Design patterns (templates) to promote interoperability and reuse Legacy systems can be wrapped as services 5
6 Manufacturing Compared to IT Like IT, manufacturing is: Networked Made up of processes (that can be provided as services) Unlike IT, manufacturing is: Mediated by human agents who work across seams between design and manufacturing and among elements of the supply chain Tied to closely coupled product-process interactions that are domain specific Constrained by physical capacity and physical movement of material Organized by product, customers, and the life cycle rather than by workflow, data, and transactions Rarely governed by formal architectural specifications 6
7 Design Patterns A design pattern is a general reusable solution to a commonly occurring problem in software design. Design patterns can speed up the development process by providing tested, proven development paradigms. The OA community is building a catalog of patterns that may offer a starting point for OM patterns ( NDIA was instrumental in orchestrating industry participation in the development of TEP, and could play a similar role in orchestrating development of OM patterns 7
8 R&D Needs emantic structures for domain-specific product and process information that can drive manufacturing services (both business services and physical manufacturing processes) mart registries of services that can operate on this information, and mechanisms for discovery and coordination with information that is distributed across the manufacturing community Design rules, reasoning engines and resource allocation approaches that can deal with the combinatorial explosion of choices in matching product and process needs with available services Dynamic scheduling tools and automated brokers that can orchestrate supply chain and dynamic production planning solutions faster and better than humans Open and scalable interface standards and service level agreements that extend OA to handle manufacturing information, and wrappers to make legacy systems compliant with the interfaces. 8
9 Best Practices from the ervices ector Performance-based Cataloged (open/publicized) Delivered value based on an explicit service level agreement Offered/Managed according to a well defined service life cycle ervices are separate from the means of delivery AND they are (or can be) customer-intimate 9
10 ervice Oriented Manufacturing Consider a new service oriented paradigm by borrowing exemplary service industry concepts Manufacturing that looks more like the service industry Best applied to areas where U.. has a product and process innovation edge Conforms to the notions of network-centric manufacturing and model based enterprise Better aligns industry incentives with the needs of DoD ervices can be designed to explicitly provide improved visibility and risk management Allows for a more balanced supply and demand 10
11 Candidate ervices for OM Product-Oriented ervices Product and Process R&D Engineering and Design Product Risk Management Field upport ustainment Technology Refresh Process-Oriented ervices Capability Management features, tolerances Production upply Chain Management upply Chain Visibility Cost/Capability to Promise Logistic ervices Vendor Managed Inventory Configuration, Pre- Assembly, In-sequence shipping Distribution and Delivery Return Management Planning ervices Efficient Customer Response Collaborative Planning and Forecasting Discovery and Contracting tandard Terms 11
12 OM Benefits For buyers Expose and increase access to superior manufacturing capabilities on a service basis For suppliers increase access to markets through standard interfaces for niche services and commodity services For both increase productivity, agility and competitiveness through rapidly reconfigurable relationships For DoD meet defense industrial base needs for assured sources of supply built on the best capabilities of proven service providers (both military and commercial). 12
13 Potential NDIA Role Establish a government/industry coalition ponsor tutorials in OA concepts and workshops to develop OM concepts Develop a requirements document for OM Pick initial target areas Build business case Organize industry participation in developing reference architectures and design patterns Coordinate implementation roadmaps 13
14 Open Discussion 14
15 Backup charts 15
16 The OM Platform Experimentation and Pilots New Market Opportunities ervice Acquisition New Knowledge ervice strategy leverages customer knowledge and relationship to make improvements in service effectiveness and grow customer value
17 How OM Could Change the Paradigm From Industrial Age supplier relationships based on physical product delivery FORD GENERAL MOTOR CHRYLER To Information Age supplier relationships based on networked product, information, and value delivery. Johnson Controls Atwood Automotive PI Lear Favesa Douglas & Lomason R. R. pring Rockford pring Collins & Aikman Millikan & Company pecialty crew Dudek & Bock pring Textileather Technotrim Canadian Fab PI 17
18 The Macro View What s Different Reduce Rigid upply Chains Functional Boundaries and ilos Hierarchies Command and Control Heighten Capabilities Digital Thread Interoperability and tandards Intense Collaboration and mart Trust Performance Measures and Complexity Management at ystems Level Redefined Manufacturing kill ets PI PI DWiz BMA CTO & CA 18 8
19 Current Manufacturing ervices Electronics Manufacturing ervices (EM) Industry $300 B global market. High volume producers in Asia. Fabless semiconductor companies Custom chip design -- outsource the fabrication. buycating.com -- outsourcing provider of metal castings. ThomasNet.com find manufacturers, distributors and service providers... Unique interfaces, unique business rules mediated by human brokers and purchasing agents but there may be exploitable commonalities 19
20 The Commodity Context The Type of ervices Needed Will Depend On the Commodity trategy High leverage items strategic items Commodity Cost eek services of multiple sources of services Typically later in life cycle Bid for services through a mediator Typically order fulfillment is only service Product Logistics Need strategic relationship Multiple services over life cycle Process Monopolistic market care commodities Inflexible mfg. processes Work with vendor to improve service Low routine items bottleneck items Low upply Risk High Different Commodity egments Will Require Different ervice trategies for Product, Process, and Logistics 20
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