Dynamic Manufacturing Networks Monitoring and Governance

DYNAMIC

MANUFACTURING

NETWORKS MONITORING

AND GOVERNANCEPanagiotis Kokkinakos - [email protected]

Ourania Markaki

Dimitrios Panopoulos

Sotirios Koussouris

Dimitrios Askounis

Decision Support Systems Laboratory

National Technical University of Athens

IntroductionThe global economic crisis leads the industrial/manufacturing

towards:

• minimizing costs

• Collaborate closer with partners

• Seek new business opportunities

while, at the same time:

• increasing the effectiveness of external and internal procedures

• increasing customer’s satisfaction through high quality

products/services

Formation of Dynamic Manufacturing Networks (DMNs)

24 September 2012 APMS 2012 – Rhodes, Greece

What is a DMN?

• The natural evolution of typical supply chains

• Dynamic alliances among manufacturing companies for gaining mutual benefits• Reduce costs

• Reduce time-to-market

• Increase flexibility

• Gaining access to new markets and resources

• Utilizing collective intelligence

• Demand-driven (yet long-lasting) formation

• Depending on the context, might also be referred as Virtual Enterprises


DMN Monitoring & Governance

• No mature methodologies and tools fully appropriate for

managing and monitoring DMNs

• Lack of approaches and tools specifically developed for

dynamic networks• Distributed, independent, and heterogeneous members

• Network Performance Evaluation and DMN Reformation


Network Analysis and Configuration

Network DesignNetwork Execution

Monitoring and Governance

Monitoring, Governance and

Reconfiguration. Why?


Nissan has announced that as a consequence of Friday's devastating 9.0 earthquake and Tsunami in Japan production at all of its factories will remain halted until it has fully assessed the damage sustained to its factories, equipment and parts suppliers. (source)

The natural disasters that struck Japan's northeast continued to wreak havoc on the nation's economy on Tuesday, with two of the country's largest carmakers announcing further delays in resumption of production at their plants because of continued disruption in parts supplies. (source)

http://www.greencarreports.com/news/1056733_japanese-earthquake-and-tsunami-delay-2011-leaf-production-updated

http://articles.latimes.com/2011/mar/22/world/la-fgw-japan-quake-economy-20110323

DMN Monitoring & Governance

Sub-Phases


Network Analysis and

ConfigurationNetwork Design

Network Execution

Monitoring and Governance

Real Time Data Collection and

Network Monitoring

Operational Level DMN Governance

Network Performance Measurement

and KPIs Monitoring

Network Performance

Evaluation and DMN

Reconfiguration

Real Time Data Collection and Network

Monitoring (1/2)• The architecture of a virtual enterprise network basically consists of three

layers:

• network/platform layer (data formats, communication protocols)

• service layer (reusable building blocks and runtime services)

• application layer (information searching, collaborative engineering, electronic commerce)

• Data Collection and Monitoring should be based on real time collection, and rapid exchange and processing of information

• Numerous technologies and approaches have been recognized in order to support the aforementioned structure

• Complex event processing (CEP)

• Agent-based models approach

• Sequential Probability Ratio Test (SPRT)

• Artificial neural networks (ANNs)


Real Time Data Collection and Network

Monitoring (2/2)

Advances in network technology, data collection, storage and

processing are rapidly emerging

But:

• At the moment high processing times, as well as the great volume

of data, constitute barriers towards an effective and stable solution

• At the same time, Systems Interoperability is another barrier.

• Standards are the current solution! Examples:

• Product Data Exchange Specification (PDES)

• Standard for Exchange of Product (STEP)

• Initial Graphic Exchange Specification (IGES)


Operational Level DMN Governance (1/2)

• Deals with data processing and the decisions that should be taken

and communicated in the responsible network points for easing

out any abnormalities identified

• Common mistake: the perception that there is direct relation of the

behavior and the management activities of virtual organizations to

these single organizations

• Possibly not optimal, ways to coordinate the network

• Need of control and management actions in real time (or close to)


Operational Level DMN Governance (2/2)

• Important interoperability constraint: inability of systems to directly

use these standards and build touch points for interacting directly

with the other systems

• Addressed by the introduction of the Enterprise Service Bus (ESB)

concept!

• brings together the PLM and ERP capabilities of systems

• allows governing the network

• Adapter modules responsible for providing a layer of abstraction

between the servers and the component business or

manufacturing systems (nodes) in the ESB (e.g., ERP, cPLM)


Network Performance Measurement and

KPIs Monitoring

• Measuring and evaluating the effectiveness of the network

• not only in operational but also in conceptual and strategic level

• Traditional approaches (e.g. Six Sigma, EFQM, SCOR) orientated

to single processes or functions

• not so appropriate for evaluation in strategic level!

• Challenge: transfer highly complex real-world processes to a

simplifying processes model, to derive performance information

from the model, and to transfer these results back to the real world

• Measurement and monitoring of “combined” KPIs is the key for

evaluating a DMN’s performance and taking strategic decisions for

altering the network’s structure and/or operation


Network Performance Evaluation and

DMN Reformation (1/2)

• Involves considerably the human aspect and relies to a large

extent on management experiences previously acquired

• “Small and corrective” decisions towards the network’s operation

optimization

• or even “larger and structural” changes

• fed back to the DMN “Network Configuration” phase

• one of the possible stages in the DMN lifecycle is the DMN dissolution


Network Performance Evaluation and

DMN Reformation (2/2)

• The DMN inheritance management

• improving their preparedness and thus supporting the faster

creation of DMNs

• making DMNs more effective and reliable in terms of both time and

costs and improving or ensuring quality

• decreasing DMN management efforts through increased trust and

strengthened relationships

• supporting decision-making and tracking of DMN problems or

deviations

• enabling higher chances of success in competitive

bidding, because of customer knowledge and closer customer

relationships


The IMAGINE Project Approach

• Development and delivery of a novel comprehensive methodology and the

respective platform for effective end-to-end management of DMNs

• plug and produce approach, based on community, collaboration, self-

organization and openness

• technical back-bone to support the proposed life cycle and integrate virtually

all the aspects of the virtual manufacturing network and processes

• The IMAGINE framework relies on end-to-end integrated ICT solutions that

effectively enable the management of networked manufacturing supply chains

• The IMAGINE Lifecycle

• Network Analysis and Configuration

• Network Design

• Network Execution Management and Monitoring

www.imagine-futurefactory.eu

Twitter: @ImagineFF


http://www.imagine-futurefactory.eu



Conclusions

• No matter how efficient and effective a DMN can be, the monitoring and

governance of such a multi-disciplinary formation is a real challenge

• poor performance in management and monitoring could easily cost huge

amounts of money and time

• Analyzing process efficiency and effectiveness and aligning processes

with enterprise goals and objectives needs

• reacting to critical business events

• correlating event data

• updating the KPIs

• A novel, integrated solution-focused manufacturing environment that

involves global supply chain management, product-service linkage and

management of distributed manufacturing assets is needed


THANK YOU FOR YOUR ATTENTION!

Panagiotis Kokkinakos

[email protected]

Decision Support Systems Laboratory

National Technical University of Athens


Dynamic Manufacturing Networks Monitoring and Governance

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