Open Standards that Open Markets™

©

Open Applications GroupSmart Manufacturing

Working Group

Serm Kulvatunyou, NIST

Nenad Ivezic, NIST

Conrad Leiva, iBaseT

Frank Heinrich, iBaseT

Ralph Hertlein, OAGi & Hertlein Group

Chris Peters, The Lucrum Group

Hyunbo Cho, POSTECH

April 16, 2014

Copyright 2014 Open Applications Group, Inc.

Open Standards that Open Markets™

Agenda

• Proposed Scope– Overall Objective– Problem Statement– Business Case– Work Group Approach– Summary

• NOT in Scope• Key Deliverables Summary• Working Group Members• Planned Schedule• Assumptions, Dependencies, and Issues• Outside Resources• Next Steps

Open Standards that Open Markets™

Overall Objective

• Develop a multi-tiered supply chain collaboration guideline and standard for engineered components to improve cost, quality, agility and more

Open Standards that Open Markets™

Make sure that parts are

inspected this way, okay?Have you told

your supplier about the new

revision?

Have you got the new

revision of the component?

OEM talking with Tier 1 Supplier

Make sure you don’t subcontract that component,

it is ITAR protected.

Did your supplier make design change? Why

didn’t you tell me about that? You did? I have no

record about it.

Open Standards that Open Markets™

Problem Statement• Supply chain communications are highly inefficient

– More than 50% by phone, fax and email1

– Prone to errors, can’t easily be found or re-used, lacks traceability– Fidelity and timeliness decrease with each subsequent supply chain node

• Even less efficient for engineered products– Key communications involve unstructured data

• Requirements, design, annotations, manufacturing processes, changes, etc.

– Typically isolated in a silo• Hard drives, email programs, project folders, etc.

– Unstructured data is more difficult to communicate throughout network• Not easily sent, received or searched

1Gillai, B., and T. Yu. "B2B Managed Services: Business Value and Adoption Trends." Stanford Global Supply Chain Management Forum, Stanford, 2013.

Open Standards that Open Markets™

Problem Statement• Supply chain impact

– Reduced quality• Decisions made at one tier don’t consider issues at other tiers

• Key information is often missing

– Reduced on-time delivery• Delays in transmitting unstructured data across multiple nodes

• Rework often required due to inefficient communications

– Increased cost• Quality issues at one level not readily communicated to all levels

• Costly expediting often required to overcome issues from lagging information

– Brand adversely impacted

Open Standards that Open Markets™

Business Case

• Communication errors• Phone communication• Fax communication• Process errors

• More quality communications

• Inspection communications

• Upstream communications (design changes, manufacturing statuses, etc.)

• SC collaboration processes• SC activities• Information entities

Eliminate AutomateStandardize

GoalReduce Manufacturing

Time & Cost

Reduce Manufacturing

CostFaster Design to Delivery

Greater SC Agility &

Resiliency

Open Standards that Open Markets™

Work Group Approach

FocusFocus

ApproachApproach

Develop Business ProcessDevelop Business Process Identify GapsIdentify Gaps Reach outReach out

Blue prints for manufacturing supply chain collaborationBlue prints for manufacturing supply chain collaboration

Analyze existing standards and protocolsAnalyze existing standards and protocols

Work with OAGWork with OAG

Ensure wide, cross industries inputs and applicability Ensure wide, cross industries inputs and applicability

B2B focus while identifying A2A activities to provide the contextB2B focus while identifying A2A activities to provide the context

Identify new concepts/objects and enhancementsIdentify new concepts/objects and enhancements

Work with MESA, AIAG, and othersWork with MESA, AIAG, and others

• Supply chain assembly• Procurement• Manufacturing coordination

Business Process

• Change management• Quality management• Inspection

Activity

• Engineered components• Detailed engineering data• Drawings, models, etc.

Domain

Open Standards that Open Markets™

Example of Technical Work Needed

© Open Applications Group, 2014 - All Rights Reserved

Business Process Models

9

OAGIS BODs

Open Standards that Open Markets™

Example of Technical Work Needed

© Open Applications Group, 2014 - All Rights Reserved

Business Process Models Reference Supply Chain Model

10

OAGIS BODs

Open Standards that Open Markets™

Example of Technical Work Needed

© Open Applications Group, 2014 - All Rights Reserved

Business Process Models Reference Supply Chain Model

11

OAGIS BODs

OAG Business Scenarios

Open Standards that Open Markets™

Example of Technical Work Needed

© Open Applications Group, 2014 - All Rights Reserved

Business Process Models Reference Supply Chain Model

12

OAGIS BODs

OAG Business Scenarios

SemanticOAGIS BODs

Open Standards that Open Markets™

Example of Technical Work Needed

© Open Applications Group, 2014 - All Rights Reserved

Business Process Models Reference Supply Chain Model

13

OAGIS BODs

OAG Business Scenarios

Semantic RefinementOAGIS BODs

Open Standards that Open Markets™

SummaryOutputsOutputs

Deliver via OAGi open standard

Standard gap analysis

Business process guideline for multi-tiered supply chain collaboration Basis for additional work groups

OutcomesOutcomes

Increased fidelity & traceability of key supply chain communications

Reduced effort to connect new suppliers

Migration of unstructured data to structured data

Faster promulgation of changes throughout chain Quicker response to demand fluctuations

ImpactsImpacts

Lower costsGreater SC agility and resilienceReduced risks

Faster time to marketGreater brand protection

Open Standards that Open Markets™

What is NOT in Scope

• Saving the world . . .

Open Standards that Open Markets™

Key Deliverables Summary

• Business Process Descriptions

• Gap Analysis

• It is possible other Working Groups may be created

from this work

Open Standards that Open Markets™

Working Group Members

• Nenad Ivezic, NIST – Co-Chair• Conrad Leiva, iBASEt – Co-Chair• Chris Peters, The Lucrum Group• Serm Kulvatunyou, NIST• Hyunbo Cho, Thira• Mike Rowell, Oracle• Ralph Hertlein, OAGi• Jeoung-Ha Kim, U-Tech

Open Standards that Open Markets™

Planned Schedule

• Open at this time

Open Standards that Open Markets™

Assumptions, Dependencies and Issues

• Assumptions– Sufficient staffing– Appropriate tooling available

• Dependencies– None known

• Issues– None at this time

Open Standards that Open Markets™

Outside Resources Required

• None known at this time

Open Standards that Open Markets™

Next Steps

• Decision on Work Group Policy Board• Call for Participation• Schedule 1st Meeting• Set up Google Drive to share

Open Standards that Open Markets™

Questions?

Open Standards that Open Markets™

Name Project Definition Signature Page• By signing this Project Definition you are agreeing to make a contribution to this Working Group• The scope of the contribution is constrained to the scope definition in this Project Definition.• The complete definition of a contribution and the terms under which the contribution are made is described

in the OAGi Intellectual Property Policy, which is available on our web site at www.oagi.org. • This page can be scanned and emailed to dmconnelly@oagi.org or

faxed to OAGi staff at +1 (770) 234-6036

Authorized Signature

Name Printed

Organization Name

Date