MESA workshopIT/OT Convergence: people,
organization and governance
Valentijn de LeeuwVice President
ARC Advisory Group
AIOTIALLIANCE FOR INTERNET OF THINGS INNOVATION
Michel DevosIndependent consultant
MESA EMEA Board member
The power of knowing what MESAKNOWS
Smart Manufacturing Challenges
• Supply Chain Collaboration
(c) MESA International - ARC EIF 2016
The power of knowing what MESAKNOWS
Smart Manufacturing Challenges
• Manufacturing complexity
(c) MESA International - ARC EIF 2016
MTS MTO, ETO
Regulations
Collaborative Robotics
Mechatronics
Agility
Mass Production - Customization
The power of knowing what MESAKNOWS
Smart Manufacturing Challenges
• Lack of visibilityCombine business transactional data with operational data
• Lack of flexibilityEnable the quick change of the processes to fit with
business needs
• Lack of interoperability & root cause analysisCreate correlation of real-time data from closed,
proprietary systems and equipment
(c) MESA International - ARC EIF 2016
The power of knowing what MESAKNOWS
Impacts on IT/OT
• « Big Data »More and more data to be collected and stored over long
periods
Keep a high level of integrity and availability of data
• Demand on IT/OT resourcesEscalation of demand for applications, resources and
budget
Deployment of applications on mobile devices
• IT/OT convergenceOrganizational and technical implications
(c) MESA International - ARC EIF 2016
The power of knowing what MESA KNOWS
The Demand-Driven Manufacturing Applications Gap
Manufacturing2.0
DD
SN M
atu
rity
Su
pp
ly N
etw
ork
Dyn
amis
m
Product/Mfg Complexity
Dynamic Multi TierCollaboration
Multi-Site(Owned)
Single Site(Owned)
Dynamic Single Supply ChainCollaboration
StaticInternalCollaboration
Local Execution
Global Coordination
1
2ISA
Degree of Contract Mfg,Rate of NPDI
Product Mix,# of Mfg StylesMTS ETO
3
Multi-Site(Owned & Contracted)
© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
(c) MESA International - ARC EIF 2016
Smart Manufacturing
The power of knowing what MESA KNOWS
Old Tiers of IT and OT
ERP
Enterprise Information Technology
Manufacturing Operations Technology
PLM MES
GPS
SSO
BI
SCADAEnergy
MgtOEE
PLC
Sensors
Meters
Need for convergence !
(c) MESA International - ARC EIF 2016
The power of knowing what MESA KNOWS
New IT Platforms for Smart Manufacturing
Smart Machines
RobotsRFID
Sensors3D
Printers
Workforce Roles
Supplier Mgt
Engineering
Procurement
Tooling Mgt
Operations
Quality Mgt
Facilities
Accounting
Services
GPSSSO BI
Apps
MakePlan Source
Energy Mgt
MgtDash
Design Receive
Sustain Plant
PrevMaint
Data Collect
Schedule Purchase
M2M+ A2A + B2B
(c) MESA International - ARC EIF 2016
The power of knowing what MESAKNOWS
Align Four Domains to Achieve Manufacturing Strategy
• IT must enable business in achieving its goals
• Instead of managing IT projects in isolation, always manage projects towards these business strategies and operations capabilities
• Take into ALL roles in account ALL 4 domains Processes, Structure, People, IT
• Each Domain in context must be be taken into account as it shapes the manufacturing strategy
© 2011 Atos Origin. All Rights Reserved.
(c) MESA International - ARC EIF 2016
The power of knowing what MESA KNOWS
Before and After MES/MOM
”Bridging the Gap”?!
Misalignment Gap
(c) MESA International - ARC EIF 2016
The power of knowing what MESA KNOWS
Governance: Align IT,Operations and Business
(c) MESA International - ARC EIF 2016
The power of knowing what MESA KNOWS
Organization and Alignment of Corporate & Plant Priorities
Corporate Plant
IT
•System Integration,
Infrastructure Support &
Standards Compliance
•Rationalize Equipment
Data for Data Integrity
•Consolidates disparate
plant floor systems
•Minimizes shadow-IT
projects & resources
MFG
•Exceed Quality, Production, Waste and Cost targets
•Revenue improvementsDaily Production Schedule
Attainment
Expanded Capacity
•Cost improvementsIncreased labor productivityLower plant expenses
•Cash generationReduced inventoryHigher return on assets
Manufacturing
Systems
CoE
Group
(c) MESA International - ARC EIF 2016
The power of knowing what MESAKNOWS
CoE members from All Levels:Business to Shop Floor
• Grounded in manufacturing work process requirements
• Integrated with national teams
• Understanding of unique business and plant features
• Distributed and central
• Aware of international and national trends
• Connected with partner groups
• Skilled in target areas
(c) MESA International - ARC EIF 2016
The power of knowing what MESAKNOWS
CoE System Scope Responsibility
• Finite capacity scheduling (FCS)• Manufacturing metrics and reporting System• Enterprise manufacturing intelligence (EMI) System• Mfg operations work process management• Plant warehouse management system (WMS)• Enterprise recipe management system• Enterprise batch execution system• Total productive maintenance and predictive maintenance system • Quality management system (QMS, nonconformance) • Track & trace system• SCADA and process control systems• Plant information and industrial networks• Plant data historians and archives
(c) MESA International - ARC EIF 2016
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 15
ORGANIZATION AND GOVERNANCE
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 16
Organizational view of governance
• Organization Practitioners
Support and expertise
Decision making
Asset ManagementCoE & Support
Services
Services andSupport
functions
Engineering
BU
Maintenance
Security
Enterprise /division
Business Committee
Technical Committee
Risk & Compliance
OT
Finance, HR, ..
AssetManagementInvestment
Central Security
Experts &Practitioners
Engineering support
IT/OT
IT
Contractor
Engineering
IT/OT
Mgt Committee Board
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 17
Process view of governance
• IT/OT Performance
• Update Needs and Requirements
Technical strategy
Business input
• Technical validation
• Business validation Negotiation
Prioritization
Performance steering
Resource availability
• Strategic plan
• Execution Planning
Resources assignment
TC
BC+TC
CoE
Support
Strategic Plan
Monitoring
Measurement
Evaluation
TechnologyStrategyApproval
PrioritizationPlanningResources
PrioritizationPlanningResourcesPolicy
BU
Update
IT/OT
strategy
Short
term
planning
ExpertiseBest PracticesRisk assessment
Performance
ManagementCorporate Planand objectivesBusiness needsneeds
Clients
Society
Legislation
Requirements
Management
StrategicPlanProposal
Performance
ShortTermPlan
PolicyProposal
Policy
Collection
Business
Needs
Support
Experts
Practitioners
BU project
Implementation
processes
Systems
AssetsFinance
Investment
planning