Prof. Dr. ing. Johannes Cottyn LEANDESIGN OF A MANUFACTURING EXECUTION SYSTEM FRAMEWORK With A Foreword BY Marc Blekkink (Movilitas) www.movilitas.com Design of a Lean Manufacturing Execution System Framework Copyright © 2011-2014 Johannes Cottyn - University of Ghent. All rights reserved. !I Table of Contents Table of Contents II List of Figures V List of Tables IX List of Acronyms XI Foreword XVI Executive Summary XVIII 1. Introduction 22 1.1. Research Area 22 1.2. Research Questions 25 1.3. Research Methodology 26 1.4. Publications 29 1.4.1. Publications in international journals (A1 — appearing in Web of Science) 29 1.4.2. Publications in peer-reviewed international conferences (P1 — appearing in Web of Science) 29 1.4.3. Publications in international conferences (C1) 29 1.4.4. Other (A4) 30 2. Literature Review 31 2.1. Manufacturing Operations Management (MOM) 32 2.1.1. Definition 32 2.1.2. Evolution 36 2.1.3. Role of standardization 38 2.2. Lean thinking 44 2.2.1. The Lean philosophy 44 2.2.2. Lean tools and techniques 45 2.2.3. Lean metrics and assessment 52 2.3. Lean & IT 53 2.3.1. Lean look at IT 53 2.3.2. Software support for Lean 56 !II 2.4. The role of MES in CI 58 2.4.1. Manufacturing Intelligence (MI) 59 2.4.2. Data & analysis support 66 2.4.3. Control achieved improvements 68 2.5. Conclusion 69 3. Lean MES Framework 71 3.1. Alignment method 72 3.2. Lean MES framework 77 3.3. Standard integration of Lean 82 3.3.1. aVSM methodology 83 3.3.1.1. Identify product families 85 3.3.1.2. Select initial exercise 85 3.3.1.3. Current state mapping 85 3.3.1.4. Future state mapping 89 3.3.1.5. Lean implementation 90 3.3.1.6. Follow up Lean progress 90 3.3.2. Future expansion of the framework 90 3.3.2.1. Other Lean tools and techniques 91 3.3.2.2. CI intelligence 92 3.4. MES/MOM change management 93 3.4.1. Influence on the Total Cost of Ownership (TCO) 93 3.4.2. Support for Lean operational changes 95 3.4.2.1. New product introduction 97 3.4.2.2. Custom reporting 99 3.4.2.3. Transition to pull flow 102 3.4.3. Change management in function of time 104 3.5. Conclusion 105 4. Framework Verification & Validation 107 4.1. Framework verification 109 4.1.1. Simulation case description 109 4.1.2. New product introduction 111 4.1.3. Custom reporting 115 4.1.4. Current state mapping 118 !III 4.1.5. Future state mapping & Lean implementation 118 4.1.6. Follow up Lean progress 125 4.2. Framework validation 129 4.2.1. Case A — Beverage Manufacturing Company 130 4.2.1.1. Build an ISA 95 ODS 134 4.2.1.2. Identify product families 136 4.2.1.3. Select initial exercise 136 4.2.1.4. Current state mapping 137 4.2.2. Case B — Furniture Manufacturing Company 138 4.2.2.1. Build an ISA 95 ODS 142 4.2.2.2. Current state mapping 146 4.2.2.3. Future state mapping 148 4.2.2.4. Lean (MES) implementation 156 4.2.3. Future validation requirements 158 4.3. Conclusion 160 5. Conclusions & Further Research 162 References 169 Appendix A Matching Lean and ISA 95 terminology 179 1. Representation of the aVSM methodology 180 1.1. Identify product families 180 1.2. Select initial exercise 183 1.3. Current state mapping 184 1.4. Future state mapping 200 1.5. Lean implementation 206 1.6. Follow up Lean progress 207 2. Value stream mapping icons 208 3. Definition of typical VSM facts and calculations 218 4. Pull production control principles 223 !IV List of Figures Figure 1.1: The research methodology of this doctoral research 28 Figure 2.1: Manufacturing Operations Management: the gap between the administration level and the production level 33 Figure 2.2: Pseudo-standard software solutions operating within the MOM layer on the different activities: maintenance, production, inventory and quality 35 Figure 2.3: The MESA functional model with 11 principal MES functions (MESA In- ternational, 1997) 39 Figure 2.4: The activity models of ISA 95 part 3, zoomed in on Detailed Production Scheduling (Source: ISA 95 (2000)) 42 Figure 2.5: The Manufacturing 2.0 architecture approach highlights the requirement for a separate manufacturing services bus (MSB) for manufacturing operations (Source: MESA International (2010b)) 42 Figure 2.6: The different stages in Deming’s PDCA cycle 47 Figure 2.7: A current state map example representing the material and information flow of the product family ’final boxes’ of the CharBox company 50 Figure 2.8: A future state map example representing the material and information flow of the product family ’final boxes’ of the CharBox company 51 Figure 2.9: The information value stream to determine OEE 55 Figure 2.10: Plant-to-Enterprise model of MESA (MESA International, 2008a) 59 Figure 2.11: Creating business and manufacturing visibility to support the continuous im- provement cycle 60 Figure 2.12: A stepwise evolution example illustrating the influence of different kinds of improvement initiatives on the manufacturing operations performance of a small furniture company 63 Figure 2.13: ISA 95 based integration of Lean practices considering the SOA concept 68 Figure 2.14: The use of one common ISA 95 based ODS ensures the integration of the MOM activities 69 Figure 3.1: The alignment method for MES and Lean in brown— and greenfield projects based on a generic MOM analysis 75 Figure 3.2: The classification of a number of Lean practices on the MOM framework 76 Figure 3.3: The integration aspects between Lean manufacturing initiatives and a manu- facturing execution system operating the manufacturing operations layer (based on the P2E model of MESA (MESA International, 2008a)) 77 Figure 3.4: The concept of the Lean MES framework, structured by the Manufacturing 2.0 !V SOA architecture 79 Figure 3.5: Detail of the MOM framework related to aVSM (Adjusted from ISA 95 (2000)) 83 Figure 3.6: The standard phases of the aVSM analysis 84 Figure 3.7: The generation of the value stream based on ISA 95 objects 87 Figure 3.8: A possible result of a data box after the definition of the basic process infor- mation 88 Figure 3.9: Change management aspects for MES 95 Figure 3.10: An example of a migration path for ODS through standard model state changes within the CI solution space of MOM 96 Figure 3.11: The Entity Relationship (ER) diagram of (part of) the ODS structured by ISA 95 terminology in MSSQL ServerTM 98 Figure 3.12: Graphical representation of the change work flow for a new product intro- duction 100 Figure 3.13: Graphical representation of the change work flow for custom reporting 101 Figure 3.14: Graphical representation of the change work flow of the transition to pull flow 103 Figure 3.15: Change management approach for MES in function of time 104 Figure 4.1: The process flow of the fictitious CharBox company 110 Figure 4.2: Mapping of the components of the CharBox simulation case to the Lean MES framework 110 Figure 4.3: A perspective view on the Flexsim™ model that simulates the push control system in the AS-IS situation of the CharBox company 114 Figure 4.4: The pilot implementation of the aVSM tool gives the opportunity to generate a MS Visio™ template of the current state map for a specified product family based on a given time frame. 118 Figure 4.5: The current state map template generated by aVSM based on a CharBox AS-IS simulation run 121 Figure 4.6: The line balancing chart of the current state value stream 122 Figure 4.7: The production control support for the preassembly supermarket in the future state of CharBox 124 Figure 4.8: The future state map template generated by aVSM based on a CharBox TO-BE simulation run 127 Figure 4.9: The future state map template generated by aVSM based on a CharBox TO-BE simulation run after the different process improvements 128 Figure 4.10: The process flow of the beverage manufacturing company 130 Figure 4.11: The current manufacturing operations support within the beverage manufac- turing comp 132 !VI Figure 4.12: The share of each product family in total amount of final products 137 Figure 4.13: The current state map of the beverage manufacturing company on equip- ment level 138 Figure 4.14: The process flow of the furniture manufacturing company 139 Figure 4.15: The current manufacturing operations support within the furniture manufac- turing company 140 Figure 4.16: The different steps in the database mapping to populate the ODS in the fur- niture case 142 Figure 4.17: The current state map template generated by aVSM based on the available historical data of the furniture manufacturing company 147 Figure 4.18: A WIP plot illustrating the daily changes in the WIP of each process segment in the AS-IS situation of the Furniture case 150 Figure 4.19: Effect of the future state WIP reduction determined by the simulation model 151 Figure 4.20: A WIP plot illustrating the daily changes in the WIP of each process segment in the TO-BE situation with a CONWIP level of 100 articles 153 Figure 4.21: Effect of the realtime production control of MES determined by the simula- tion model 154 Figure 4.22: The future state map template generated by aVSM based on the simulation data of the configuration without efficiency improvement.