Supply Chain Tribe by Celerity May - June 2021

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Manufacturing systems hierarchy and

ASSOCIATED ANALYTICS OPPORTUNITIES An effective Manufacturing Analytics program design needs to extend beyond the factory floor. Afterall, one of the key obstacles Supply Chains face is siloed planning and optimization, presents Kumar Singh, leading global supply chain consultant.

A fundamental first step to understand how analytics need to extend beyond the factory floors is to understand the hierarchy of Manufacturing & pertaining systems. Once you develop that understanding, you can combine that with the understanding of analytics requirement for each level of hierarchy, and then develop the Analytics system that integrates analytics across all hierarchies. /kumarssingh /kumarssingh

System System Description Description

Analytics Analytics Opportunities Opportunities

Kumar Singh is a Research Director with SAPinsider, a technology research company focused on SAP ecosystem. Prior to that, he founded Smart Supply Chain LLC and was an analytics consultant with Boston Consulting Group (BCG). Kumar has been working in Supply Chain analytics domain for 12+ years now and has helped companies across industries leverage analytics to transform their supply chains.

While there is no defined methodology out there to think about this Analytics integration, you can use this categorization and Analytics examples slide to structure your Manufacturing Analytics program accordingly.

Manufacturing systems hierarchy and associated analytics opportunities Manufacturing systems hierarchy and associated analytics opportunities

Lowest level in automation hierarchy includes actuators, sensors, and other hardware components (together these devices constitute the machine level). These devices are combined into the individual control loops of the machine (ex: control of one joint on an industrial robot).

Machine level is essentially an assembly of device level hardware. Examples are industrial robots, powered conveyors and AGVs. Control functions at this level include performing sequence of steps in the program of instructions in the correct order and making sure that each step is properly executed.

Cell level is a grouping of machines or workstations connected and supported by material handling systems, computer and other equipment appropriate to the manufacturing process. Production lines, part dispatching etc. are examples of cell or system level.

This is the factory level system. It receives data from enterprise level systems and converts them into production plans. Likely function of system at this level are order processing, process planning, inventory control, MRP, shop floor and quality control.

This This highest highestlevel level consists of consists of corporate corporate This highest level information information systems.It It consists of systems. corporate is primarily on is primarilyfocused focused onIt information systems. functions necessary toto functions necessary is primarily focused on manage the business, manage business, functionsthe necessary to like marketing and like marketing and manage the business, sales, design, research, sales, design, research, like marketing and accounting, aggregate accounting, aggregate sales, design, research, planning, MPS etc.

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- Capacity optimization - S&OP Analytics

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Operating parameters analysis Parameters optimization

- Quality Analytics

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OEE RUL Reliability Preventive & predictive maintenance

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System capacity utilization and rate System flow optimization Labor optimization

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Demand driven manufacturing Plant flow optimization Capacity utilization Rate optimization Plant labor optimization

planning, MPS etc. accounting, aggregate planning, MPS etc.

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