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MESA workshop
IT/OT Convergence: people,
organization and governance
Valentijn de Leeuw
Vice President
ARC Advisory Group
vdeleeuw@arcweb.com
AIOTI
ALLIANCE FOR INTERNET OF THINGS INNOVATION
Michel Devos
Independent consultant
MESA EMEA Board member
Michel.devos@mesconsult.be
The	power	of	knowing	what	MESAKNOWS	
Smart	Manufacturing	
Challenges	
•  Supply	Chain	Collabora/on		
(c)	MESA	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESAKNOWS	
Smart	Manufacturing	
Challenges	
•  Manufacturing	complexity	
(c)	MESA	Interna/onal	-	ARC	EIF	2016	
MTS	è	MTO,	ETO	
Regula9ons	
Collabora9ve	Robo9cs	
Mechatronics	
Agility	
Mass	Produc9on	-	Customiza9on
The	power	of	knowing	what	MESAKNOWS	
Smart	Manufacturing	
Challenges	
•  Lack	of	visibility	
v Combine	business	transac/onal	data	with	opera/onal	data	
•  Lack	of	flexibility	
v Enable	the	quick	change	of	the	processes	to	fit	with	
business	needs	
•  Lack	of	interoperability	&	root	cause	analysis	
v Create	correla/on	of	real-/me	data	from	closed,	
proprietary	systems	and	equipment	
(c)	MESA	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESAKNOWS	
Impacts	on	IT/OT	
•  «	Big	Data	»	
v More	and	more	data	to	be	collected	and	stored	over	long	
periods	
v Keep	a	high	level	of	integrity	and	availability	of	data	
•  Demand	on	IT/OT	resources	
v Escala/on	of	demand	for	applica/ons,	resources	and	
budget	
v Deployment	of	applica/ons	on	mobile	devices	
•  IT/OT	convergence	
v Organiza/onal	and	technical	implica/ons		
(c)	MESA	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESA	KNOWS	
The	Demand-Driven		
Manufacturing	Applica9ons	Gap	
	
	
Manufacturing	
2.0	
	
	
	
	
DDSN	Maturity		
Supply	Network	Dynamism	
	
Product/Mfg	Complexity	
Dynamic		
Mul9	Tier	
Collabora9on	
Mul9-Site	
(Owned)	
Single	Site	
(Owned)	
Dynamic	Single		
Supply	Chain	
Collabora9on	
Sta9c	
Internal	
Collabora9on	
MOM	
Local	Execu9on	
Global	Coordina9on	
1	
2	
ISA	
Degree	of	Contract	Mfg,	
Rate	of	NPDI	
Product	Mix,	
#	of	Mfg	Styles	MTS	 ETO	
3	
Mul9-Site	
(Owned	&	Contracted)	
©	2010	Gartner,	Inc.	and/or	its	Affiliates.	All	Rights	Reserved.		
(c)	MESA	Interna/onal	-	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	
SCADA	
Energy	
Mgt	
OEE	
PLC	
Sensors	
Meters	
Need	for	convergence	!	
(c)	MESA	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESA	KNOWS	
New	IT	PlaTorms	for		
Smart	Manufacturing	
Smart	Machines	
Robots	
RFID	
Sensors	
3D	
Printers	
Workforce	Roles	
Supplier	Mgt	
Engineering	
Procurement	
Tooling	Mgt	
Opera/ons	
Quality	Mgt	
Facili/es	
Accoun/ng	
Services	
GPS	SSO	 BI	
Apps	
Make	Plan	 Source	
Energy	
Mgt	
Mgt	
Dash	
Design	 Receive	
Sustain	Plant	
Prev	
Maint	
Data	
Collect	
Schedule	 Purchase	
M2M+	A2A	+	B2B	
(c)	MESA	Interna/onal	-	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	isola/on,	
always	manage	projects	towards	these	
business	strategies	and	opera/ons	
capabili/es	
•  Take	into	ALL	roles	in	account	ALL	4	domains	
v  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	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESA	KNOWS	
Before	and	AXer	MES/MOM	
”Bridging	the	Gap”?!	
Misalignment Gap
(c)	MESA	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESA	KNOWS	
Governance:	Align	IT,	
Opera9ons	and	Business	
(c)	MESA	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESA	KNOWS	
Organiza9on	and	Alignment		
of	Corporate	&	Plant	Priori9es	
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 improvements
Daily Production Schedule
Attainment
Expanded Capacity
•Cost improvements
Increased laborproductivity
Lowerplantexpenses
•Cash generation
Reduced inventory
Higherreturn on assets
Manufacturing
Systems
CoE
Group
(c)	MESA	Interna/onal	-	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	na/onal	teams	
•  Understanding	of	unique	business	and	plant	
features	
•  Distributed	and	central	
•  Aware	of	interna/onal	and	na/onal	trends	
•  Connected	with	partner	groups	
•  Skilled	in	target	areas	
(c)	MESA	Interna/onal	-	ARC	EIF	2016
The	power	of	knowing	what	MESAKNOWS	
CoE	System	Scope	
Responsibility	
•  Finite	capacity	scheduling	(FCS)	
•  Manufacturing	metrics	and	repor/ng	System	
•  Enterprise	manufacturing	intelligence	(EMI)	System	
•  Mfg	opera/ons	work	process	management	
•  Plant	warehouse	management	system	(WMS)	
•  Enterprise	recipe	management	system	
•  Enterprise	batch	execu/on	system	
•  Total	produc/ve	maintenance	and	predic/ve	maintenance	system		
•  Quality	management	system	(QMS,	nonconformance)		
•  Track	&	trace	system	
•  SCADA	and	process	control	systems	
•  Plant	informa/on	and	industrial	networks	
•  Plant	data	historians	and	archives	
(c)	MESA	Interna/onal	-	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	
Management	
CoE	&	Support	
Services	
Services	and	
Support	
func/ons	
Engineering	
BU	
Maintenance	
Security	
Enterprise	/
division	
Business	Commi]ee	 Technical	Commi]ee	
Risk	&	
Compliance	
OT	
Finance,	
HR,	..	
Asset	
Management	
Investment	
Central	
Security	
Experts	&	
Prac99oners	
Engineering	
support	
IT/OT	
IT	
Contractor	
Engineering	
IT/OT	
Mgt	Commi]ee	 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
Technology	
Strategy	
Approval	
Priori/za/on	
Planning	
Resources	
Priori/za/on	
Planning	
Resources	
Policy	
BU
Update
IT/OT
strategy
Short
term
planning
Exper/se	
Best	Prac/ces	
Risk	assessment	
Performance
Management
Corporate	Plan	
and	objec/ves	
Business	needs	
needs	
Clients
Society
Legislation
Requirements
Management
Strategic	
Plan	
Proposal	
Performance	
Short	
Term	
Plan	
Policy	
Proposal	
Policy	
Collection
Business
Needs
Support
Experts
Practitioners
BU project
Implementation
processes
Systems
Assets
Finance
Investment
planning
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 18
NOTES
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 19
Workshop discussion notes
• Supply chain integration
§ Regarding Manufacturing of goods and materials
§ Important aspect of competitiveness to have complex supply chain
networks especially across regions
§ End-to-End traceability (across supply chain networks)
• Increasing needs for flexibility, ability, complexity
§ Also keep it simple when possible (and use analytics and optimization to
damp supply chain volatility)
• Need for data warehouse of manufacturing information (time series
data plus events for context) plus OEE, plus quality plus …
§ Virtual versus distributed:
•  Trend in direction of a slingle DW to unload sites and ensure data backup
•  The art is to select and clean while extracting and fuel the DW with
information as opposed to data
§ kjhgfdsOpportunities: short term: reporting and historical analytics
§ Opportunities forward looking: predictive and prescriptive analytics
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY © ARC Advisory Group • 20
Workshop meeting notes
• People factor
§ Focus or intent can block people to see/hear each other’s statements
§ Once back to factual, people need to agree on common dictionary,
possibly in different languages
• Googling production data
§ The information is not about objects but patterns. More difficult to find
§ Historians are not built for searches
• Governance
§ Aligning IT/business at corporate/stategic and plant/BU-tactiacl levels
§ Because of agility requirements, make sure the update frequence is
sufficent and/or the authority to make decisions at local level is
sufficent, and a mechanism for reconciliation with agreed plans exist.

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