Exceptional information technology thrives today on the factory floor, in the front office and through the supply chain. And despite some limits of information transparency today via this technology, there is an excellent foundation in place for many manufacturers to adopt an e-manufacturing strategy. But what does an e-manufacturing strategy look like? How does it work? Before this paper breaks down e-manufacturing into its primary competencies, a short story can help illustrate.
This is a story about a limit switch. A limit switch is nothing more than a regular on/off switch with an 'arm' hanging on it. This limit switch sits on a conveyor line. Each time a box approaches on the line, it pushes the arm out of the way, and the switch goes 'on'. As the box passes by, the arm snaps back, and the switch goes 'off'. This switch is embedded with intelligent technology and is plugged into a communications network on the plant floor. This switch also is wired back to a plant floor controller, which houses the production program for that conveyor line.
The controller's program for that switch is to ask it a basic question: Are you 'on', or 'off'? And so each time a box hits the limit switch, a message shoots to the controller, which then sends an instruction to the conveyor line, telling the line which way to send each box. The box quickly diverts in an assigned direction, and the limit switch snaps back, waiting for the next box to approach.
But the switch can provide far more information than 'on' or 'off'. It can tell the controller and communications network that its arm is over-travelling or under-travelling - moving too far in either direction when a box passes by. It can tell how fast the arm snaps back, or if it does not snap back at all. In any of these cases, there is a likelihood that something is starting to go wrong - either with the switch or the conveyor line - that could cause a future lag in production on the plant floor.
The data is there - it just has not been traditionally pulled from that limit switch. With a predictive maintenance system in place, however, the data warning of that switch's problems can be driven directly into the plant's condition monitoring program - well before the switch breaks. A work order can be quickly created for an engineer to assess the problem. The engineer then can place an online order for a supplier to deliver and install a new limit switch within 24 hours. At the same time, the program can also schedule a repair or replacement on that switch using information from the on-line plant schedule to determine the opportune time to access the machine. The new switch can be delivered by the supplier and installed before the first switch breaks down. There is little more than a hiccup in the production line.
So how does this story relate to e-manufacturing?
Traditionally, a manufacturer did not get the warning information from something as seemingly insignificant as a limit switch. And considering the production demands on the plant, proactive scheduling of maintenance was a luxury. Largely, reactive measures when a switch would break involved downtime of the line, a paper-based work order system, a varied stock of supplies to deal with the problem, and little, if any, connection to front office procurement. The end result was lost revenue from lost production. e-Manufacturing, on the other hand, includes the ability to monitor the plant floor assets and leverage the Internet to schedule maintenance and order supplies quickly and easily. It also provides the front office with a transparent view of the health and flow of its plant-floor assets, helping to streamline supply and subsequent costs. In the end, it creates a highly integrated - and highly flexible - system that provides a complete view of the entire enterprise, up, down, and sideways.
Having an e-manufacturing strategy means that the company is e-business ready. But this extends beyond the ability to connect online with potential buyers of goods. Since price pressures will not go away, manufacturing plants will still be expected to deliver enhanced products at ever-lower prices. To be e-business ready, a company's manufacturing enterprise must 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. Rapidly changing consumer demands are forcing companies to accelerate and streamline the design and deployment of production processes. Rapid new product introduction in response to changing market demand is a critical competitive advantage and a key to growth. Having a design competency which ensures new products are not only launched on time, but that those launches are cost effectively executed is a key to translating that top-line growth into bottom-line results.
* Operate - optimisation of process yield and consistency throughout the enterprise. Plant productivity has always been a focus in manufacturing. As manufacturers consolidate through acquisitions and have new facilities to operate worldwide, they must further figure out how to get products made with consistent quality and efficiency at each manufacturing location. This is where initiatives like lean manufacturing drive out excess, achieving non-stop operations for maximum efficiency and throughput of production and where 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 nonstop operations, and optimum asset productivity. Without such a solid, efficient foundation, it is not possible to withstand the rigors of this fast paced environment, where growth and profits are demanded simultaneously.
* Synchronise - tight coupling of a manufacturing operation into the greater supply chain, both upstream and downstream. This fourth competency is best achieved only after the other three competencies (design, operate, maintain) are firmly in place. Only then is the plant truly ready to be fully coupled into an e-commerce driven supply chain.
e-Manufacturing requires a new approach to manufacturing and distribution systems - throughout the design, operate, maintain, and synchronise competencies. It is enabled through full integration between manufacturing control systems and enterprise applications using commercially developed, off-the-shelf information technologies. Moreover, an e-manufacturing strategy provides direct information exchanges between manufacturing and customer relationship management (CRM) systems and supply chain management systems (ARC Advisory Group, August 2000). Finally it requires a complimentary set of process optimisation methodologies, be it for designing, operating, maintaining, or synchronising the manufacturing operation.
The limit switch story is just one simple example of an e-manufacturing strategy at work. At an even greater level, e-manufacturing is a necessary part of an e-business strategy for companies that manufacture a product line and transform their businesses into e-business enterprises (ARC Advisory Group, August 2000).
How to excel in design, operate, maintain, and synchronise competencies
Manufacturers can achieve the promise of e-manufacturing through design, operate, maintain, and synchronise competencies that drive build-to-order processes and non-stop operations. There are four enablers that will speed any company to reap the benefits of e-manufacturing:
* Integrated control and information - a contemporary, information-enabled automation architecture with associated integration management services.
* Manufacturing information management/seamless integration of business and production systems - electronic management of products and orders on the manufacturing floor - bringing visibility to customers, partners, and the enterprise.
* Asset management and reliability-centred maintenance - tools, methodologies, and services for increasing overall asset utilisation with minimising unplanned maintenance and unexpected downtime.
* e-Fulfilment and e-procurement solutions - direct transfer of customer order details to manufacturing personnel and equipment, configuration options, as well as tight electronic connections to suppliers and partners to optimise inbound supply chain in the face of changing demand.
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