A Method To Align A Manufacturing Execution System With Lean Objectives
A Method To Align A Manufacturing Execution System With Lean Objectives
To cite this article: J. Cottyn , H. Van Landeghem , K. Stockman & S. Derammelaere (2011) A
method to align a manufacturing execution system with Lean objectives, International Journal of
Production Research, 49:14, 4397-4413, DOI: 10.1080/00207543.2010.548409
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International Journal of Production Research
Vol. 49, No. 14, 15 July 2011, 4397–4413
The application of information technology and Lean principles have long been
seen as mutually exclusive, but both approaches are more and more claimed to be
interdependent and complementary. Real-time production information is crucial
to make important business decisions. A manufacturing execution system (MES)
can provide the necessary support during the Lean journey. MES can trigger, feed
or validate the Lean decision-making process by providing useful information.
In addition, MES can maintain the process improvements by enforcing the
standardised way of working. However, this is only possible when MES is aligned
and is kept aligned to the Lean objectives. The MES processes must be included in
the continuous improvement cycle to prevent them from becoming obsolete. In
this work, a method is proposed to analyse this alignment between Lean and
MES. The manufacturing operations management framework provided by ISA
95 is believed to deliver the necessary components to identify and structure this
alignment. Mapping MES and Lean activities onto the same framework brings
valuable insights about their dependency. The analysis is explored through a case
example. Preventing the system from becoming obsolete, by proposing standard
model changes, is an important direction for further research.
Keywords: manufacturing; execution system; Lean; ISA 95; continuous
improvement; value stream map
1. Introduction
Today’s economic environment drives the adoption of strategic initiatives. In order to
survive, companies need to get the most and the best out of the available resources. It is
a continuous struggle to eliminate unnecessary production costs; improve manufacturing,
process and business performance; increase throughput; reduce cycle times; maintain
quality; etc. (Epicor 2008a). One of the strategic initiatives that helps manufacturers to
remain competitive is Lean manufacturing. Lean is a philosophy with the motto ‘Doing
more, with less!’. The concept of ‘Lean’ was first introduced by Womack et al. (1990) in
order to describe the working philosophy and practices of the Japanese vehicle
manufacturers and in particular the Toyota Production System. The essence of Lean
thinking is specifying value and – by doing so – simultaneously uncovering waste. The
initial concept of Lean was extended to five key principles by Womack and Jones (1996):
specify value; identify value streams; make value flow; let the customer pull value and
pursue perfection. The ultimate goal is a production process without any of the seven
deadly wastes: overproduction, waiting, transport, extra processing, inventory, motion
and defects. However, as that situation is impossible to reach, Lean manufacturing is a
continuous process towards perfection.
Lean thinking has evolved over time and has expanded beyond its origins in the
automotive industry and its narrow definition around shop floor improvement (Hines
et al. 2004). Lean is a philosophy and not a tool itself. Numerous tools and techniques –
such as single minute exchange of dies (SMED), Six Sigma, Kanban, value stream
mapping (VSM), 5 S, total quality management, theory of constraints, total productive
maintenance, business process management, visual management, etc. – can support the
Lean transformation in order to identify, measure and remove waste, variability and
overburden and deliver improvements in specific areas. SMED reduces waiting and
overproduction by creating shorter machine setup times. VSM draws the actual material
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(and information) flow through the manufacturing resources and can reveal important
areas for improvement. VSM can be considered as the starting point for any Lean
transformation and its applicability is well documented in literature (Rother and Shook
1999, Braglia et al. 2006, Abdulmalek et al. 2007, Mazur and Chen 2008, Nash and Poling
2008, Serrano et al. 2008). Kanban reduces inventory by introducing a consumer-pulled
production system. The thoughtful application of the various approaches to exploit full
Lean potential has had its share of attention (Shah and Ward 2003, Lasa et al. 2009).
In order to avoid the misapplication of Lean manufacturing tools and metrics,
Pavnaskar et al. (2003) introduce a classification scheme. With the classification scheme,
manufacturing problems can be linked to the appropriate Lean manufacturing tools that
will solve the problem.
As various tools and techniques exist to work towards the Lean goal, it is necessary to
carefully plan and keep track of the Lean efforts. VSM results in the construction of a
Lean roadmap. This work plan is a sequence of Lean practices that will be performed in
order to evolve from the current (AS-IS) to the future (TO-BE) situation. A Lean planning
system can also document the progress, as the impact of each step on carefully selected
Lean metrics. This assessment tool structures the Lean journey by continuously updating
the performance and the work plan. Lean metrics are a set of performance measures for
Lean manufacturing. Examples are process throughput, total manufacturing lead time,
labour productivity, overall equipment effectiveness (OEE), etc. Many studies define their
own metrics by performing some sort of statistical analysis on survey data. Shah and Ward
(2007) use a feature extraction method to determine adequate measures of Lean
production. Ray et al. (2006) developed a Lean index for the wood products industry.
The study demonstrates that the statistical methodology of factor analysis can be used to
develop a quantitative definition and assessment of the concept of ‘leanness’ for any wood
processing company. The impact of typical Lean activities on the features of a Lean
environment and the Lean performance metrics are presented by Duque et al. (2007).
Mejabi (2003) proposes a framework for a Lean planning system that can be used to
monitor and quantify the continuous improvement efforts.
To be able to pinpoint improvement opportunities and assess the progress,
(historical and real-time) information must be available (AberdeenGroup 2005). That is
why manufacturers see a greater need to adopt, upgrade or expand their business
information technology (IT) solutions. For example, enterprise resource planning (ERP)
software maintains important business data and supports the administrative processes.
Product lifecycle management software guides the product through the different stages
International Journal of Production Research 4399
of its lifecycle. Collecting, maintaining and updating the business data in support of the
business processes is important for daily operations. However, additionally, in-depth
business visibility can be created by adding an appropriate level of intelligence. Carefully
designed windows on the data can extract useful information, that is not visible at first
sight. This business intelligence can expose the necessary opportunities to steer the
business decision-making process.
Figure 1 shows how this idea can be extended to the manufacturing level. Real-time
production information is crucial to the daily manufacturing operations. But additionally,
manufacturing intelligence (MI) can provide the necessary visibility for the continuous
improvement efforts within the production facility. Different kinds of software tools can
analyse the real-time data and turn them into valuable knowledge to optimise
manufacturing operations. Production departments have always favoured the develop-
ment of custom-made software applications for manufacturing operations support, due to
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lack of attention paid by information system specialists to the shop floor. However, the
difficulty of integrating multiple point systems has brought software providers to package
multiple execution management components into single and integrated solutions
(Saenz et al. 2009). These systems, commonly referred to as Manufacturing Execution
System (MES), provide a common user interface and data management system. The
emergence of functional (MESA 1997) and integration (ISA 95 2000) standards defined
the role of those systems within computer integrated manufacturing more closely. That has
proven to be an important step from custom-made to pseudo-standard (configured) MES
solutions.
In this work, the necessary alignment between strategic objectives and operational
support is described. In particular, the role of manufacturing operations management
(MOM) during the Lean journey is emphasised. Both approaches pursue the same
objectives and – if properly combined – are seen as mutually supportive. MOM can
trigger, feed or validate the Lean decision-making process by providing useful informa-
tion. In addition, MOM can maintain the process improvements by enforcing the
standardised way of working. On the other hand, MOM processes must be included in the
continuous improvement cycle to prevent them from becoming obsolete. Section 2
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provides a general overview of the combination of the Lean philosophy and the use of IT.
The MOM framework provided by the ISA 95 standard is believed to deliver the necessary
components to structure the alignment between MES and Lean. Section 3 describes the
method for this alignment, in as well green- as brownfield projects. The proposed method
is explored by a case example in Section 4. Section 5 concludes and mentions further
research.
system and ERP (Goddard 2003). New technologies – such as SOA – enable the
development of software systems that are able to support the requirements of Lean
information management (Pfadenhauer et al. 2006). These MES systems can be flexible
enough to accommodate the continuous improvement philosophy of a Lean environment.
The (near) real-time information flow of the MES looks like a better fit for Lean than the
batch-oriented ERP systems. No previous research on this topic has been found, but
software vendors already anticipate the Lean MES story. Stand-alone applications have
already been developed to automate and support Lean practices, such as E-Kanban, Six
Sigma programmes, visual management screens, key performance indicators (KPI)
generators, etc. More and more MES software vendors have some Lean support
incorporated. Every product folder has some reference to the Lean philosophy (Siemens
2007, GE Fanuc 2009). It must be that there is a need for an MES that supports the Lean
philosophy. In its plant-to-enterprise model, the Manufacturing Enterprise Solution
Association (MESA) shows how strategic initiatives are linked to the shop floor within the
entire enterprise IT system (MESA 2008). The model depicts the generation of information
at the most basic value adding process levels of the plant and how this information
supports and is supported by enterprise business application processes and longer term
strategic initiatives. The importance of a well-established manufacturing operations layer
to create the necessary real-time manufacturing visibility is emphasised. MESA published
manufacturing guidebooks for each strategic initiative they defined. Lean manufacturing is
one of them (MESA 2010). However, a study of AMR (Masson and Jacobson 2007) shows
a limited adoption of Lean IT so far. Ease of deployment and use remains a barrier to the
adoption of Lean software on the shop floor. There is still room for innovators, for
example to provide much-needed analytical workbenches on top of real-time data
collection. A functionality that – in our opinion – is part of (or connected to) the presented
MOM framework and can be aligned with MES software.
The continuous improvement philosophy of Lean (kaizen) can be supported by the MI
incorporated in MES. Define-measure-analyse-improve-control (DMAIC) is a structured
and disciplined approach to process improvement and is part of the Six Sigma
methodology. Based on the DMAIC decision-making cycle, the role of MES in
continuous improvement can be illustrated. The first steps are defining metrics and
measuring them. A system that continually improves, relies on feedback. Due to its real-
time data availability, MES is seen as the best tool to measure real-time performance
indicators such as the use of materials, process times and machine breakdowns (Hwang
2006, Saenz et al. 2009). Typical operational KPI reflect safety, customer service and cost
4402 J. Cottyn et al.
factors such as overtime, inventory, utilisation and quality (MESA 2006). The analysis
phase requires human expertise and additional tools such as operational research and
analytical methods. Process metrics (e.g. OEE for equipment performance), analysis (e.g.
Pareto charts for machine breakdown causes) and reporting has become somewhat
standard functionality within MES software applications. But the current literature lacks
sufficient attention on how to make MES (or even IT in general) support this analysis
(Saenz et al. 2009). Efforts rarely exceed the use of spreadsheets or stand-alone software
tools that require intensive human interaction. In fact, methods such as VSM are generally
believed to be manual processes (Biddle 2006). But the real-time data availability and user
friendliness of an MES can speed up and guide the analysis efforts. During the
improvement phase, MES is naturally not involved except for the necessary improvement
of MES itself to control the improved situation. To control the change, MES can
standardise the new way of working by imposing standard work on the shop floor.
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MES into account during the first analysis and take the best of both (Gifford 2002)? This
approach could also have a positive impact on the return on investment (ROI) calculation,
as the intangible benefits of IT are quite difficult to quantify (Nagalingam and Lin 1997,
Fraser 2009, Nasarwanji et al. 2009). The quick wins of the Lean transformation could
help justify the initial investment cost of MES.
Figure 2. Example of the use of the MOM framework to list the manufacturing operations support.
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Figure 3. Example of the use of the MOM framework to list the Lean practices.
Figure 4. The alignment method between MES and Lean for brown- and greenfield projects.
is created. Following up the Lean progress is done by continuously repeating the data
collection and drawing steps. However, this approach has a number of limitations:
. It is time and labour consuming. It takes a while to walk through the whole
process and collect all necessary data.
. The result is only a snapshot of the real value stream and can lead to poor
decisions.
. The manual process is prone to different kinds of errors: process interpretation
faults, wrong measurements, writing or reading errors, vague estimates, etc.
. The manual drawing of the current and future state can be sloppy and cause
misinterpretation within the team.
. The operational threshold is very high. The data collection will not be done
frequently due to the high time and labour intensity. That can cause an inefficient
follow-up of the progress and – as a consequence – an inability to react to
unforeseen circumstances. An insufficient follow-up makes it hard to sustain the
continuous improvement initiatives.
The use of IT can increase the practical performance of VSM (Serrano et al. 2008).
There are electronic tools available that allow a better representation of the maps, support
the analysis and document and visualise the progress. They are called electronic value
stream mapping (eVSM) tools and are mostly based on spreadsheets. Another recent
evolution is the combination of VSM with discrete event simulation to analyse and
evaluate the current and future states (Lian and Van Landeghem 2007). After a simulation
run, the potential impact of the proposed modifications can be measured. This allows the
team to make changes and observe the effects without disrupting the production process or
causing downtime and costs. But the main effort, namely collecting the data, remains
purely manual.
4406 J. Cottyn et al.
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Figure 5. Details of the MOM framework in the case of value stream mapping.
A good alignment with an MES – where a lot of data are already available – could
speed up this process. We are not suggesting a tool to automatically perform the
construction and analysis of VSM. But MES can deliver meaningful information to
generate an eVSM template to start from or to be used to validate the manual result. When
the information from MES does not match the manual result, then something is wrong. As
well a wrong manual exercise as information errors in MES is not acceptable and must be
corrected somehow. Figure 5 shows part of the MOM framework that is useful in the case
of VSM, which is contained within (or connected to) the performance analysis. Useful
information for the construction (or validation) of the VSM are the different incoming
arrows. Possible input from MES can be:
. identifying product families
. creating part of the AS-IS process flow
. creating part of the AS-IS information flow
All information can be identified through standard ISA 95 object models. Activity
definitions are described by process segment object models. The actual use of those
processes is delivered by segment response object models. Based on that information, the
different VSM atoms can be connected together to form the material and information value
stream. The corresponding performance information can be added as KPI on the map.
Figure 6. The MOM support in the AS-IS situation of the case example.
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manual case. All end products have a similar production path (production definition), so
they are combined to one product family. The map is drawn in the opposite direction of
the value stream itself. The last step of the VSM is the process segment of which the
corresponding segment responses have the final product(s) of the product family as
‘material produced actual’. Then, for each ‘material consumed actual’ of that segment
response, the next process segment (with that material type as ‘material produced actual’)
is drawn in front of the previous one. These steps must be repeated until the beginning of
the value stream, namely receiving the raw materials. The selected values to be added to
the map are the number of employees and the mean cycle time of each activity (the
duration is recorded by the barcode scanning). The time that each product stays in
inventory is not exactly known, but is expressed in a mean number of days (date of next
activity – date of previous activity). The eVSM template of Figure 7 can be used as a
starting document for the manual effort or later on used for validation purposes.
Figure 9. The phased approach of the Lean transformation of the case example.
(e.g. seats/day, quality problems/week, etc.). In order to reduce the work in process, a
CONWIP system will be initiated. The number of orders on the production floor will be
limited. Each time an order is finished, the production manager can launch a new one.
To optimise the production activities, each work centre will prioritise its waiting orders.
. The cutting process will group the available orders based on the colour. That will
minimise the changeover times.
. The sticking process will group orders with similar actions, because employees
prefer repetitive actions (and perform better this way).
. The covering process will group orders according to the region of the customer.
This approach must minimise the waiting times of the end products to be
transported to the customer.
This strategy will be initiated based on the historical data and later on fine-tuned
depending on the performance. The different practices will be implemented in a phased
approach (Figure 9).
order is listed (and marked) depending on its colour. The information at the
covering process contains the region of the customer. At the stitching process, a
similarity percentage of each order can be given.
. The CONWIP restriction must be enforced. However, the production manager
must have the authority to fine-tune this value.
. The manager must have access to a dashboard screen containing all KPI values
and trends. Some values are displayed within the production hall to inform and
stimulate the employees.
. The time registration at each work centre must reveal the value-adding time.
A proper use of the system must be enforced by logical and fixed user screens.
The production manager must be informed of eventual abnormalities.
. The performance information can be used at a later stage to redraw a basic eVSM
document and re-analyse the situation.
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Based on these requirements, the MES system must be configured. However, MES
must follow process improvements and must be reconfigured to control the change.
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