Antonio Suk Keun Cha

Cofounder/CTO
ACS Corp. in Korea

December 2nd, 2014

 I. Before: Scoping of e-Manufacturing
Manufacturing is the production of merchandise for use or sale using labor and
machines, tools, chemical and biological processing, or formulation based on provides
flexible for increasing quality, reducing cost and shorten delivery for manufacturing
processes. – Source: Wikipedia

Q C D F
Quality Cost Delivery
Flexible

Mission for CEOs Manufacturing business opportunities in El Salvador

 I. Before: Scoping of e-Manufacturing

“What ”
are your biggest problems with manufacturing?

Poor visibility into plant

38%
operations
Inaccurate demand
36%
forecasting

Poor communication 24%

Supply shortfalls 18%

Poor customer satisfaction 8%

Don’t know 8%

(multiple responses accepted)

Percent of 100 manufacturing companies responding

Forrester Research, July 2000

 I. Before: Scoping of e-Manufacturing

Enterprises must insure that data is

Direct, Automated accurate and timely, to support
Information Feeds collaborative initiatives

Enterprise
Data Latency and Inaccuracy
Applications Six common practices that will cause ERP II failure:
 Manual adjustments to inventory
 Relying on annual physical inventory
 Delaying material receipts and issues
 Ignoring rescheduling and exception messages
 Production reporting only at the end of the line
 Using “dummy” sales and/or purchase orders

e-Manufacturing
with Real Time
Enterprise Fall Conference 2001
 I. Before: Scoping of e-Manufacturing
Real time collection of 4M1E (Man,Machine,Material,Method,Energ) and providing
real time performance measurement for internal optimal decision based on
production current status, product promised date for customer satisfaction in every
type of manufacturing enterprises.
You cannot manage what you can not measure!!!

Customer information
군산생산감시시스템 (화성)
Deliver informationBUMPER
I/P

Decision making
Information Monitoring/Analysis
Information
Real time 4M1E data Integration 4M1E

Before After
 I. Before: Scoping of e-Manufacturing
The Methods of 4M1E integration in real time with International standard
- Wired sensor networks : Communication Protocols, Process I/O, Sensor I/O
- Wireless sensor networks: Internet of Things/Machine to Machine(IoT/M2M), RFID/Bar
code, Touch screen, Mobile devices

e-Manufacturing
Source Items
Software Office PCs
Std. OP
Lot No. (POP/MES/ERP)
Method Traceability …
Gateway Access
Counter Wired IoT/M2M
Run time
Failure reason Devices Wireless Sensor Network Point
Machine
Device IoT/M2M Device
Location Controllers Wired IoT/M2M
Specification
WIP level … ISO 22400 Device Bar code
Material ISO JTC 1 Relays Reader
Start/End
Failure code RFID
Not run Sensors PLC
Man Reasons … PDA
Touch
Machine Terminals Mobiles
Voltage, current,
flow, Pressure …
Protocols Process I/O Sensor I/O RFID/USN Touch Screen Mobiles
Energy
Wired Sensor Networks Wireless Sensor Networks
4M1E
Production floor
(POP: Point of Production, MES: Manufacturing Execution System ERP: Enterprise Resource Planning)
 I. Before: Scoping of e-Manufacturing

• Wired IoT/M2M devices • Wireless IoT/M2M devices

- Open embedded Linux based low - Low power and small size of IP based
power consumption intelligent devices wireless sensor network

Installed Installed

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 I. Before: Scoping of e-Manufacturing
• Touch Screen Terminals • Managing by moving
- No IT resource in terminal - mobile for production and
- Low power, good for harsh environment maintenance
- No issue of hacking and IT security - PDA and smart phone integration
- Easy to use manual data entry by workers
: Display big characters & touch

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 II. e-Manufacturing deployed by ACS
• 1,000+ Real time production management system in world wide since 1988
• International Standard based COTS(Commercial Off The Shelf) approach

Central managing by DABOM

Name ACS(Advanced Consulting Services Co.)
globally distributed manufacturing
consulting service, solution developing enterprises
Business
manufacturing ICT convergence
Employees 95
R&D budget 8% of Annual Revenues (as of 2013)

Core e-Mfg®, u-Mfg® Auto-configuration® real

Technology time event driven, M2M/IoT

Qualified

Product DABOMⓇ-series

DABOM® means “see-all” in Korean word and a trademark of ACS

 II. e-Manufacturing deployed by ACS

Industrial
specific
application

Industrial
Template
functions

Real time event

based Middleware Manufacturing
(DABOM- International
Middleware) standard
application
Wired and (ISA S-95
wireless sensor MESA-11)
Devices DABOM-MES
(DABOM-Device:
iTOUCH, iDCU)
 II. e-Manufacturing deployed by ACS

Company facts
- Annual Rev : 10 Million USD
- No. of Employees : 104 peoples
- Type of Manufacturing : Electronics Part
- Type of Products : AC IN/OUT LET , PIN JACK

Reasons for deployment

- Can not see what is current status of production line
- Impossible to productivity analysis and quality, equipment down history due to manual
reporting
- No way to make a decision for delivery due date
- No way to estimating accuracy production planning
User Benefits
- More than 25% increased quality control level
- Quickly respond for production issue
- At least 30% reduction cost of record and analysis works
- Increased customer satisfaction
- More than 20% increased run time of equipment
 II. e-Manufacturing deployed by ACS

Hardware & Network Configuration

- ERP access
Internet - ACS DABOM-MES access

ERP Server
(H.Q) ACS Office PC
DABOM-MES

Device
Device Interface
Interface (6 Unit)
(4 Unit)
…… ……
8 Machines
21machines
Manages by Touch
manages
Press (12 unit) PDA Extrusion machines (27 Unit) Screen
by PDA
Press Line Extrusion Line Assembly line
 II. e-Manufacturing deployed by ACS

Company facts
- Jeju Local Government operation
- Annual Rev : 170Million USD (23.1% Market)
- Type of Manufacturing : Process industry
- Type of Products : Drink waters

Reasons for deployment

- Image making Jeju Local Government as clear and trust
- Needs real time tracking of drink waters
- Impossible to tracking of labor and production cost

User Benefits
- Reduced 30% of labor cost
- 25% of reduced capital investment
- 10% of increased profit of company
 II. e-Manufacturing deployed by ACS

ERP Server
POP/MES Server

Wireless Access Point

Touch Screen Terminals

Bar code Printer
Large LCD Display

PLCs
PDAs
 II. e-Manufacturing deployed by ACS

Work order plan

Quality Trend
 II. e-Manufacturing deployed by ACS

Item Before After Result

Inventory 100% 68% Reduced 32%

WIP 100% 65% Reduced 35%

Time for Inv.

240 Min./ Month 120 Min./Month Reduced 50%
Level

Leadtime 1.95 Min. 1.05 Min. Reduced 46%

Inventory
60% 97% Enhanced 57%
accuracy

Short STOP Time 120.85/Month 24.96/Month Reduced 79%

 III. After: Smart Factory and Vision

• USA: Focused on Global Coordination with 3 D printing

• Germany: CPPS: Cyber Physical Production System for smart Factory
• Korea: Smart Factory using ICT

• 제조, ICT, 서비스 산업의 융합에 따라 제조업의 비중이 다시 높아짐

Manufacturing 2.0 Industry 4.0 Manufacturing Innovation 3.0

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 III. After: Smart Factory and Vision

• Vertical Top down -> Horizontal Internet driven

• One way -> Bi-direction
• Wired networks -> Wireless Sensor Network
• SMART(Seamless, Mobility, Autonomous Configuration, Real-time, Traceability)

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 III. After: Smart Factory and Vision

Chungnam Techno Park SaaS based e-Manufacturing Services

Green IT

② ②

① ①

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 III. After: Smart Factory and Vision
Implementing production line at Yong-san plant

POP Application
Dabom®-middleware MES Server &
POP Server Dabom®-MES Application

Production Status Display Production Status Display

Line 1 Line 3 Line 5 Line 7 Line 9 Line 11

Warehouse
Line 2 Line 4 Line 6 Line 8 Line 10 Line 12

Remarks
Touch Panel Bar code reader
IDCU Sensors
Wireless M2M Device Hard Wire
Wireless bar code reader
Wireless AP 100Mbps Fast Ethernet

Thin client Touch Terminal

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 III. After: Smart Factory and Vision
User benefits
Index Detailed index Y Co. Current Target

Time for Work order Delivery time for work order 1H 15M 3M

Time for inventory status 5H Real time Real Time

Time for daily inventory audit
Time for inventory status Report 5H 10M 5M

Time for work order 3H 15M 5M

Time for daily work report generation
Time for summary 2H 15M 5M

Total 16H 55M 18M

Index Detailed index K Co. Current Target

Time for daily inventory status Time for inventory status 3H Real time Real time

Time for sales summary Real time Real time Real time
Time for daily sales summary
Time for report 1H Real time Real time
Closing for logistic 15H 10M 5M
Audit time Time for financial report (5H) - Real time
Monthly average closing time 10Days 5Days 3일
10Days 19 5Days 10
Total 3 days 5M
hours Min
 IV. Lessons learned and recommendation

For Executives of Manufacturing SMEs

- Mindset of what really means by real time for production resources(4M1E)
: Bar coder reader can not cover every issues in production
- Think about TCO (Total cost of ownership)
: Development cost of 30% and maintenance cost of 70%

- Think about bottom-up approach with step by step deployment No Top-Down

For Executives of ICT vendors

- Need a skill set of 4M1E integration in real time for global consulting services
- Need Real time event driven middleware functional support for local maintenance
- Need to train ICT peoples
 IV. Lessons learned and recommendation

To El Salvador
- Must establish a support organization dedicated for the Government control
: Look at the case in Korean case (Dr. Kim will help you!) and the Smart
Factory program
- Collaboration with global vendors as Korea
: Development cost of 30% and maintenance cost of 70%
- Bench-making of global success cases like the SaaS model for Cloud computing
: Chungnam Techno Park in Korea to be an excellent reference site
Gracias !

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