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Open Standards that Open Markets™

Open Applications Group

Smart 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™

Have you told your supplier about the new revision?

Have you got the new revision of the component?

Make sure that parts are inspected this way, okay?

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 email 1 – 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 1 Gillai, 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

Reduce Manufacturing Time & Cost

Goal

Faster Design to Delivery Greater SC Agility & Resiliency Reduce Manufacturing Cost Eliminate • • • • Communication errors Phone communication Fax communication Process errors Standardize • • • SC collaboration processes SC activities Information entities Automate • More quality communications • Inspection communications • Upstream communications (design changes, manufacturing statuses, etc.)

Open Standards that Open Markets™

Work Group Approach

Business Process

• Supply chain assembly • Procurement • Manufacturing coordination Develop Business Process Blue prints for manufacturing supply chain collaboration B2B focus while identifying A2A activities to provide the context Focus

Activity

• Change management • Quality management • Inspection Approach Identify Gaps Analyze existing standards and protocols Identify new concepts/objects and enhancements

Domain

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

Reach out Work with OAG Work with MESA, AIAG, and others Ensure wide, cross industries inputs and applicability

Open Standards that Open Markets™

Example of Technical Work Needed

Business Process Models OAGIS BODs © Open Applications Group, 2014 - All Rights Reserved 9

Open Standards that Open Markets™

Example of Technical Work Needed

Business Process Models © Open Applications Group, 2014 - All Rights Reserved Reference Supply Chain Model OAGIS BODs 10

Open Standards that Open Markets™

Example of Technical Work Needed

Business Process Models Reference Supply Chain Model OAG Business Scenarios OAGIS BODs © Open Applications Group, 2014 - All Rights Reserved 11

Open Standards that Open Markets™

Example of Technical Work Needed

Business Process Models Reference Supply Chain Model OAG Business Scenarios © Open Applications Group, 2014 - All Rights Reserved Semantic OAGIS BODs OAGIS BODs 12

Open Standards that Open Markets™

Example of Technical Work Needed

Business Process Models Reference Supply Chain Model OAG Business Scenarios © Open Applications Group, 2014 - All Rights Reserved Semantic Refinement OAGIS BODs OAGIS BODs 13

Open Standards that Open Markets™

Summary

Business process guideline for multi tiered supply chain collaboration Standard gap analysis Outputs Deliver via OAGi open standard Basis for additional work groups Migration of unstructured data to structured data Outcomes Reduced effort to connect new suppliers Quicker response to demand fluctuations Increased fidelity & traceability of key supply chain communications Faster promulgation of changes throughout chain Reduced risks Greater SC agility and resilience Impacts Lower costs Faster time to market Greater brand protection

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 1 st Meeting • Set up Google Drive to share

Open Standards that Open Markets™

Questions?

Open Standards that Open Markets™

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 [email protected]

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

Authorized Signature Name Printed Organization Name Date