Vision 2020 for Quality in the Product Value Chain

Transcription

1 Open Standards that Open Markets Vision 2020 for Quality in the Product Value Chain Conrad Leiva, ibaset November 19,

2 Vision 2020 for Quality in the Product Value Chain Agenda Current problem and opportunities Current Quality solutions for supply chain Vision 2020 for Quality next generation solutions Related current OAGi projects Open Applications Group, All Rights Reserved 2

3 The Product Value Chain extends into Suppliers and Customers Open Standards that Open Markets

4 Over 50% of communication with suppliers is unstructured Have you told your supplier about the new revision? Make sure that parts are inspected this way, okay? Make sure you don t subcontract that component, it is ITAR protected. Have you got the new revision of the component? OEM talking with Tier 1 Supplier Did your supplier make design change? Why didn t you tell me about that? You did? I have no record about it. Source: OAGi ppt,

5 Suppliers managed via and phone calls The Supply Chain managed via Flowing down requirements Yet all these s and phone calls

6 What about communications with Tier 2, Tier 3? Open Standards that Open Markets

7 Open Standards that Open Markets Fact: It is much cheaper to catch issues earlier in the value chain 7

8 Gartner s research: Source: Quality The Missing Link in Your Supply Chain Strategy, Jacobson, Gartner Supply Chain Conference, 2015

9 LNS Research: Executives recognize Quality is disconnected Source: Driving Profit and Quality through Compliance: Success Strategies for A&D Suppliers, Mathew Littlefield, LNS Research, 2015

10 Forbes research: Executives recognize supply chain challenges

11 Problem Statement Supply chain communications are highly inefficient More than 50% by phone, fax and 1 Prone to errors, can t easily be found or re-used, lacks traceability Fidelity and timeliness decrease with each subsequent supply chain node Even less efficient for engineered products Key communications involve unstructured data Requirements, design, annotations, manufacturing processes, changes, etc. Typically isolated in a silo Hard drives, programs, project folders, etc. Unstructured data is more difficult to communicate throughout network Not easily sent, received or searched 1 Gillai, B., and T. Yu. "B2B Managed Services: Business Value and Adoption Trends." Stanford Global Supply Chain Management Forum, Stanford,

12 Problem Statement Supply chain performance needs to improve Reduced quality Decisions made at one tier don t consider issues at other tiers Key information is often missing Reduced on-time delivery Delays in transmitting unstructured data across multiple nodes Rework often required due to inefficient communications Increased cost Quality issues at one level not readily communicated to all levels Costly expediting often required to overcome issues from lagging information Brand adversely impacted 12

13 TODAY s SOLUTION Open Standards that Open Markets

14 Managing Quality in the Supplier Network Receiving Inspection Traditional procedures focused on Receiving 14

15 Managing Quality in the Supplier Network Receiving Inspection ibaset Supplier QA improves Receiving Inspection procedures 15

16 Managing Quality in the Supplier Network Source Inspection Reduced Overhead Receiving Oversight Self Inspection Source Oversight ibaset s Source Inspection and Supplier Portal at the source! 16

17 Two-Way Communication via Supplier Portal ibaset s Supplier Quality solution provides structured two-way communications via Supplier Portal 17

18 Emerging: Supply Chain Control Tower and Community solutions are gaining traction in different industries Control Towers not tackling Quality yet Example Source: e2open brochure

19 2020 VISION Open Standards that Open Markets

20 Visual Acuity into Supply Chain? 20/20 is a measure of perfect visual acuity or clarity of vision. 20/20=1 represents 100% vision. If we had similar scale of visual acuity into our supply chains what would our current vision be? 20/40=50% 20/100=20% (you see at 20 ft what 100% would see at 100 ft)

21 Supply Chain Quality Management Maturity Manufacturers are working on Level 3: Collaboration Driven via supplier portal Source: Taking Enterprise Quality Management to the Next Level of Performance, Conrad Leiva, ibaset, 2013

22 Taking Enterprise Quality Management to the Next Level Manufacturers goal to achieve Level 4: Integration Driven with improved B2B integration by 2020! Source: Taking Enterprise Quality Management to the Next Level of Performance, Conrad Leiva, ibaset, 2013

23 Gartner s Roadmap for Integrated Supply Chain Gartner says companies should target 2017 for integrated multitier supply chain Source: Supplier Quality 2017: The Multitier Quality Frontier, Ray Barger, Gartner, 2015

24 The Supplier Network Information needs to move up and down several tiers of suppliers. (Requirements down, Results up)

25 The Next Step Customer Supplier Supplier Customer Supplier But the Supplier has to work with several Customers and its own Suppliers

26 Quality throughout the Product Lifecycle Open Standards that Open Markets

27 To Connect the Supplier B2B Messages needed for: PLAN Supplier Network Map Verification Requirements Performance Goals DO Progress Reports Performance Measures Change Control CHECK Verification Results Nonconformance Documentation Supplier Audits ACT Corrective Actions

28 Cloud Services further facilitate B2B connections for the Extended Enterprise

29 Smart Manufacturing connects the Enterprise Smart Manufacturing Systems Business Intelligence Connected Enterprise Systems Operations Management Smart Apps, Controllers, MSB Smart Machines, Sensors, Tooling, Workforce

30 The Extended Enterprise for the Product Value Chain includes Customers and Suppliers

31 The Cloud helps connect the Value Chain (Intranet and Internet) Third Party Cloud Services via Internet Social Platforms Identity Verification Supplier Hubs Business Intelligence Connected Enterprise Systems Smart Manufacturing Systems (via Intranet or Internet) App Marketplace Operations Management Smart Apps, Controllers, MSB Supplier Communications via Internet Smart Machines, Sensors, Tooling, Workforce Customer Communications via Internet Distributed and layered Smart Manufacturing systems with M2M, A2A, and B2B integration for improved Quality Management

32 CURRENT PROJECTS Open Standards that Open Markets

33 Related OAGI Projects Smart Manufacturing Working Group Library of Manufacturing B2B Business Processes Working on collaboration with MESA, APQC, and others BPMN Examples, Departmental/Functional Swim Lanes Quality Content Working Group Inspection/Test Requirements Inspection/Test Results Non-conformance Corrective Actions

34 Supply Chain B2B integration standards Reduce Manufacturing Time & Cost Faster Design to Delivery Goal Greater SC Agility & Resiliency Reduce Manufacturing Cost Needs Eliminate Standardize Automate Communication errors Phone communication Fax communication Process errors SC collaboration processes SC activities Information entities More quality communications Inspection communications Upstream communications (design changes, manufacturing statuses, etc.)

35 Supply Chain B2B integration standards Focus Business Process Supply chain assembly Procurement Manufacturing coordination Activity Change management Quality management Inspection Domain Engineered components Detailed engineering data Drawings, models, etc. Approach Business Process Examples Identify Gaps Reach out Blue prints for manufacturing supply chain collaboration B2B focus while identifying A2A activities to provide the context Analyze existing standards and protocols Identify new concepts/objects and enhancements Work with OAG Work with MESA, AIAG, and others Ensure wide, cross industries inputs and applicability

36 Started with Flow Diagram for Quality related Business Process across Internal Departments and Multiple Tiers of Suppliers

37 BPMN for Manufacturing B2B Business Integration Scenarios Example Inspection/Test Requirements down and Results up the chain For effective digital thread through enterprise business processes through tiers of the entire value chain requires adoption of standards that connect engineering, supply chain and operations.

38 Parts BOM 3D Product Design is translated to Inspection Requirements for Supplier Digital Thread starts in Product Engineering Inspection Characteristics

39 Supplier Relation Procure Engineered Parts PO, Product Design and Inspection Requirements are transmitted to Supplier via B2B Messages

40 Contract B2B Messages BOM 3D Product Specs Product Design and Inspection Definition are received from Customer (higher level Manufacturer) and translated to Manufacturer s systems Inspection/Test Requirements For automated manufacturing: CAM, NC, 3D Printer, Robot Program For manual labor: Illustrated Work Instructions Mfg Process Plan PO Update Schedule

41 Update Schedule Update WO Reschedule WO Production Order is released to Operations, executed, and results are compiled for Customer (higher level manufacturer) Shipment Dispatch WO Execute WO In-Process Inspection As-Produced History Records

42 Goods Receipt Inventory Shipment WO Execution Receipt Inspection In-Process Inspection As-Produced History Records Subassembly data is received by higher level manufacturer as part of Receiving Inspection and rolled into as-built history for end-product data for end Customer B2B messages for Results coming back up tiers of suppliers must match with requirements sent down!

43 Reference APQC for Participants and Activities Open Applications Group, All Rights Reserved 46

44 Reference ad improve OAGi scenarios Participants/Roles and triggering Events/Activities: Product Engineering triggers Sync-BOM (Bill of Materials) whenever an event triggers a change or update and ensures correct BOM is used for planning and production when an order occurs Manufacturing Engineering triggers Sync- Routing whenever an event triggers a change or update and ensures correct routing is used for planning and production Sales triggers Process-Sales-Order to initiates a sales order with the manufacturing (ERP) system to trigger inventory movements and production Scheduling triggers Sync-Production Order- to Initiate the production of the items that will needed to deliver the order and/or replenish inventory Inventory Control triggers Process-Issue- Inventory to update the inventory management system to the status of and availability of inventory Production System triggers Get-WIP-Status to ERP to coordinate the exact status of the production events Production System triggers Process-Allocate- Resources to indicate the actual resources used and how they are to be allocated to a costing system Open Applications Group, All Rights Reserved 47

45 Cross reference APQC, SCOR, OAGi frameworks Association between Activities Actvities in APQC and Events in OAGi scenarios Open Applications Group, All Rights Reserved 48

46 Questions, Comments? Open Applications Group, All Rights Reserved 49