MESA White Paper 52 - Smart Manufacturing - Landscape Explained

Smart Manufacturing
– The Landscape Explained
WHITE PAPER #52

A MESA International white paper.
1/31/2016
MESA • 107 S. Southgate Drive • Chandler, AZ 85226 USA • 480-893-6110 • hq@mesa.org • www.mesa.org
Smart Manufacturing – The Landscape Explained
Table of Contents
FOREWORD ....................................................................................... 3
CHALLENGES WITH LEGACY MANUFACTURING SYSTEMS .................... 5

THE GOALS OF SMART MANUFACTURING ........................................... 9
THE INTERNET OF INDUSTRIAL THINGS ............................................. 12
THE FOURTH INDUSTRIAL REVOLUTION ............................................ 14

THE DIGITAL THREAD IN SMART MANUFACTURING .......................... 17
THREADING ENTERPRISE SYSTEMS WITH MESSAGING STANDARDS ... 20
ISO ............................................................................................ 21
IEC ............................................................................................. 21
MESA......................................................................................... 22
ISA ............................................................................................. 22
OAGi.......................................................................................... 22
OPC Foundation ........................................................................ 22
MIMOSA .................................................................................... 23
THE ROLE OF INDUSTRY AND GOVERNMENT CONSORTIUMS ............ 25
Industrial Internet Consortium (IIC) ........................................... 25
Industrie 4.0 .............................................................................. 26
Smart Manufacturing Leadership Coalition (SMLC) .................... 27
CEMII ........................................................................................ 28
DMDII ........................................................................................ 28
MESA International ................................................................... 28
NIST .......................................................................................... 29
THE JOURNEY TO A SMART MANUFACTURING FUTURE..................... 30
#1. Review Business Structure for Future Market Strategy ........ 32
#2. Establish Evolution Milestones for the Journey .................... 32
#3. Nurture New Culture around New Vision ............................. 33
#4. Build Partnerships to Support the New Vision ...................... 34
#5. Address Skills Gap for Knowledge Workers .......................... 34
#6. Evolve the Information Technology Infrastructure ............... 35
APPENDIX A ..................................................................................... 37
Glossary .................................................................................... 37
APPENDIX B ..................................................................................... 40
Standards Relevant to Smart Manufacturing ............................. 40
REFERENCES .................................................................................... 45
AUTHORS AND EDITORS ................................................................... 46
REVIEWERS ...................................................................................... 46
© Copyright MESA 2016. All rights reserved. i

Title of Whitepaper Goes Here
CONTRIBUTING ORGANIZATIONS ..................................................... 47
© Copyright MESA 2009. All rights reserved. ii

FOREWORD
Industry analysts are predicting that the next decade of innovation, productivity
and growth in manufacturing will be driven by the demand for mass
customization and a convergence of technology advances that are enabling a
new generation manufacturing infrastructure for “Smart Manufacturing”—
technology advances in connected factory automation, robotics, additive
manufacturing, mobile, cloud, social and digital 3D product definition. In fact, this
new era of manufacturing is dubbed the Fourth Industrial Revolution.[1] [9] [10]
The technology advances and integration standards behind the connectivity of
the “Internet of Things” (IoT) empower devices – from smartphones to smart
shelves to sensor embedded automation controls – to be active participants in a
new connected digital reality. The coupling of IoT technologies with advances in
plant floor automation and information systems is referred to as the “Industrial
Internet of Things” (IIoT). The new generation of IIoT-enabled smart machines for
manufacturing will have onboard computers that directly support Internet
protocols and allow direct communication with enterprise applications. Internet
connectivity methods let companies thread external web services like social and
cloud platforms into their processes, and enable more ways to connect internal
systems inside the firewall of corporate intranets to mobile and analytical
applications.
Emerging capabilities in additive manufacturing, advanced robotics, sensor-
enabled equipment and other new approaches to fabrication, open new process
improvement opportunities both in the plant and across the supply chain.
Sophisticated computer modeling and simulation tools are evolving to give
engineers far greater scope in designing a manufacturing process before building
the production lines. These new technologies and capabilities are dramatically
changing the management of manufacturing operations.
The next-generation Smart Factory feeds real-time information to a more
empowered workforce through a combination of smart facilities, machines and
equipment with built-in sensors, self-diagnostics and connection to other smart
systems. Production processes in the Smart Factory can be optimized for best use
of manpower, equipment and energy resources through simulation with digital
representations and models. Smart Manufacturing encompasses and goes
beyond smart machines, IIoT and the Smart Factory, recognizing that
manufacturing processes in the 21st century go beyond the plant floor and must
integrate the entire value chain that creates the final product. Smarter Digital
Threads of product and process definitions and smarter connected
manufacturing machines will come together with smarter manufacturing
business processes to achieve the Smart Manufacturing enterprise.
We are not just dusting off old automation plans and putting new labels on them.
Smart Manufacturing is the convergence of multiple technologies into a new
generation of business processes and business models for manufacturing.
Why are these initiatives converging now? The reasons are, first, the
convergence of the game-changing technologies briefly mentioned above, and,
second, there is a renewed global recognition of the importance of
© Copyright MESA 2016. All rights reserved. 3

manufacturing to the economy. After decades of companies outsourcing

manufacturing operations to countries with lower labor rates in order to reduce
cost, the industrialized nations have realized the need to promote manufacturing
within the country to maintain a healthy economy and robust middle class.
From a Wall Street Journal article titled “A Revolution in the Making”, “Welcome
to the New Industrial Revolution—a wave of technologies and ideas that are
creating a computer-driven manufacturing environment that bears little
resemblance to the gritty and grimy shop floors of the past,” John Koten [9]
writes, “The revolution threatens to shatter long-standing business models,
upend global trade patterns and revive … industry.”
Leaders around the world, from private industry, academia and government,
recognize the opportunity for the next Industrial Revolution, and have formed
initiatives to accelerate the Smart Manufacturing revolution. This revolution will
shift paradigms in quality, productivity and global competitiveness. These
initiatives aim to help industry, consortiums and standard bodies research and
apply technologies and methodologies that will achieve transformational
economic-wide impact, manufacturing innovation and global competitiveness.
In Germany, for example, the Federal government has set aside funding to
underwrite Industrie 4.0., a government-sponsored initiative that focuses on
research and development investments related to IoT and Smart Manufacturing
concepts. The Industrie 4.0 strategy promotes connecting machines,
autonomous sensor-actuator components and information systems to create
intelligent networks and cyber physical systems – intelligent objects that
communicate and interact with each other. The network of connected devices
and systems will generate large data streams that can be harvested and analyzed
for diagnostics, preventive maintenance, optimization and forecasting. The
expectation is decentralized decision-making along the entire value chain and
computerized and green methods driving clean, resource-efficient and
sustainable production.
The United States government has sponsored several institutes, including the
Digital Manufacturing and Design Innovation Institute (DMDII), a public-private
partnership and manufacturing hub focused on advancing Digital Manufacturing
technologies, and the Clean Energy Manufacturing Innovation Institute (CEMII).
An industry-led Smart Manufacturing initiative example is the Smart
Manufacturing Leadership Coalition (SMLC), a group of U.S.-based industrial
companies, universities, technology suppliers and laboratories working on Smart
Factory connectivity and a next generation Smart Manufacturing Platform. The
Industrial Internet Consortium™ (IIC) is another industry-led initiative example
founded to bring together the organizations and technologies necessary to
accelerate growth of the Industrial Internet. These industry initiatives, further
explained later in this paper, demonstrate how manufacturers are moving
forward and collaborating to achieve the next Industrial Revolution.

In addition to the efforts in Germany and the United States, Smart Manufacturing
initiatives continue to develop around the world, and include China’s “Made in
China 2025,” Korea’s “Manufacturing Innovations 3.0” and France’s “Usine du
Futur.”
Today’s manufacturing systems usually have low levels of integration between
office information technology (IT) systems and operations technology (OT)
automation systems on the shop floor. For example, a small percentage of
manufacturing equipment in use has Internet connectivity. The convergence of
the plant-floor operations technology (OT) and business-level information
technology (IT) would enable the data from a myriad of remote-device sensors,
actuators, controllers, and security and safety switches to connect people and
processes across the enterprise and throughout the supply chain. In addition, it
would facilitate a secure, standards-based industrial network across the entire
enterprise, serving as a common unifying intelligent infrastructure that supports
electronic data exchange.
It is clear that Smart Manufacturing will serve as a key driver of research,
innovation, productivity, job creations and export growth. The vision, whether
called Industrie 4.0, Connected Enterprise, Smart Operations or Smart Factory, is
rapidly accelerating, thanks to the Internet of Things (IoT), and the swift
convergence of OT and IT technologies and organizations. The goals include a
new level of productivity, safety, security, optimization and the transformation of
data into insightful and timely information that gives decision makers across the
enterprise new visibility into operations, improved opportunities to respond to
market and business challenges, and the ability to drive inefficiencies out of
operations. Industrial operations must change radically over the next five years,
more than they have during the last 20. The good news is that much of the
technology necessary to turn these visions into reality is a natural evolution of
technology that already exists. Hardware and information system developers and
architects will soon conquer the connectivity, safety and security hurdles that get
in the way of connecting technologies for next generation Smart Manufacturing
Platforms. This paper will further explain the terminology, concepts and multiple
initiatives converging into Smart Manufacturing and the Fourth Industrial
Revolution.
CHALLENGES WITH LEGACY MANUFACTURING SYSTEMS

New levels of connectivity, powerful and advanced computing, smarter sensors
and devices, and improved data access and storage have created an opportunity
to increase substantially the breadth, volume and resolution of available data.
This data is providing significant business opportunity when properly aligned with
technology advancements, including cloud-hosted software applications, mobile
applications and predictive analytics. However, achieving the desired business
outcomes involves overcoming challenges.

A typical manufacturing landscape is composed of diverse equipment that is

different from area to area and coupled with multiple layers of software systems
having different levels of adoption and maturity. Disparate software systems
create challenges for organizations as they attempt to enhance how they harness
and share information.
A list of common challenges in operations includes:
 Lack of visibility – inability to combine business transactional data with
operational data to gain full visibility and control
 Lack of flexibility – inability to keep pace with changing processes and
business needs
o Difficult to innovate across continuously changing disparate
operations and business system landscapes
o Existing system of record applications (ERP, MES, homegrown)
are designed for specific functionality but difficult to improve
and extend to align with changing business needs
 Lack of interoperability – inability to get real-time correlated data from
closed, proprietary systems and equipment
o Isolated systems and proprietary equipment, automation,
robots, PLCs and sensors
o A diverse IT landscape, with systems at different maturity levels
and varied equipment per site (especially when growing by
acquisition)
o Old and mission-critical systems and equipment that cannot be
altered
o Multiple data types, including unstructured transactional and
time series
 Root cause analysis – requires correlation across multiple dimensions of data
from multiple data sources. Poor user interfaces – user interfaces are
numerous, archaic and often not available on mobile devices. Roles require
the use of many user interfaces to many systems in order to perform a task
 Knowledge attrition – an aging and retiring workforce ultimately leading to
knowledge, skills and business processes that have not been preserved and
are not transferred to the replacement workforce
 Demands on IT resources – the IT project organization faces an escalation in
demand for applications, resources and budget. Internal customers typically
desire rapidly developed solutions deployed to mobile devices. Rogue IT
organizations are created within operations. IT resources with the desired
skills are hard to find and are expensive to retain
 IT/OT Convergence – analysts document well the convergence of IT and OT.
This convergence has many facets with organizational and technical
implications. OT (Operational Technology) is a term used to describe control

and automation technologies supporting operations, initially and

intentionally separated from IT (Information Technology). This separation
pertains to both human organizations and technical interoperability. Some
examples of IT/OT convergence include the use of Microsoft technology in
operations, the use of Ethernet in operations, increasing collaboration
between IT and OT resources, and cross training of resources. A successful
Smart Manufacturing program requires IT/OT convergence, while addressing
OT safety and security concerns
 Rapid product and process change – change is constant in operations and has
a compounding negative impact. Change drives the need for rapid
development of enhanced applications. Often, technologies and
organizations become obstacles to rapid change. Customers are more
demanding, and desire a greater number of tailored products, in a shorter
amount of time, with greater visibility into how they are made. Responding
to customer demands is becoming more challenging, creating stress on
legacy systems
 Process Diversity – in a large enterprise there are often multiple
manufacturing styles (for example, blending, filling and packaging within one
facility) and modes of manufacturing (make-to-stock, make-to-order,
engineer-to-order, etc.). It is often suboptimal to address process diversity
with one software solution, but organizations try to standardize because it is
not easy to drop in solutions from different specialized vendors
 Data Validity – a closer look at some of the vast amounts of data collected on
equipment often reveals that a significant amount of collected data is not
accurate or consistent at all, due to evolving processes and the difficulty in
maintaining accurate data collection systems
It is critical to provide immediate and actionable information to drive rapid and

accurate decisions. This is difficult to achieve with legacy systems that lack the
ability to communicate with other systems or provide role-based information
with context. There are negative consequences associated with the typical state
of operations solutions, including the following:
 Real-time performance monitoring and optimization is costly and time-
consuming to implement, maintain and evolve
 Performance management is reactive instead of proactive, leading to:
o Poor quality (scrap and rework)
o Unplanned downtime
o Reduced throughput and asset utilization
o Higher inventory, including excessive WIP
o Missed customer delivery dates
o Frequent, unidentified and continually repeated day-to-day
issues and failures

 Decision makers lack a consistent and unified method for monitoring,

comparing and optimizing the performance of people, systems and assets
within facilities and across the enterprise
 High costs for operator training and reduced productivity
 Modernizing production processes and performance management with
traditional business systems is a costly, resource intensive and a multi-year
effort
 Limited ability to innovate rapidly due to the diversity across people, systems
and assets
 An enterprise cannot identify and unlock business potential from processes
and data that span a highly diverse operations IT landscape
Traditional software is not sufficient to address the scale and diversity required
of future Smart Manufacturing solutions given the forecasted number of
connected assets and increased volume of available data; for example,
automation systems that focus on the safe and reliable control of machines, but
are not IT-centric nor oriented for data publication. They are optimized for data
acquisition but not contextual data reporting and propagation. IT software
typically cannot connect to the process and does not capture data at the
resolution necessary to support operations.
Customer demands, competition and faster market activity have rendered
traditional approaches to operations software architectures obsolete. Legacy
architectures are not agile enough to adapt to rapidly evolving needs. Given the
number of global sites, the existence of legacy systems, multiple data sources
and types, costly integration, manual process and manual data collection cause
significant challenges. There is a significant cost in updating and adapting these
systems to provide the right information and processes to the right people at the
right time.
However, manufacturing remains an optimal target for IT solutions due to the
presence of a significant amount of accessible data, smart assets and the need
for real-time information. There are many diverse systems and devices in
manufacturing, and the more systems there are and the more diversity there is,
the more potential value there is from connecting them (Metcalfe’s Law).
Fortunately, it appears that conditions are changing. Internal OT and IT
organizations have aligned and there is a new era of understanding and
cooperation. Sensor technology is becoming cost effective and data is available
from more devices than ever. Analytics solutions are viable and production-
ready, and the promise of machine learning and predictive knowledge is real.
Continuous improvement initiatives are pervasive and solutions are more agile,
providing for proactive exception-based notification.

THE GOALS OF SMART MANUFACTURING

The adjective “smart” is applied to devices, like smartphones, to indicate they are
enabled with advanced capabilities for two-way communication via the Internet,
including self-identification, data from onboard sensors like GPS, easy
configuration by the end user, and the ability to run downloadable applications
(aka apps). In a similar fashion, when the adjective is used in the term “Smart
Manufacturing” it means that manufacturing operations and systems are
elevated to a new level of openness, connectivity and intelligence.
Smart Manufacturing is the endeavor to design, deploy and manage enterprise
manufacturing operations and systems that enable proactive management of the
manufacturing enterprise through informed, timely (as close to real-time as
possible), in-depth decision execution. Systems with Smart Manufacturing
capabilities are realized through the application of advanced information,
communication and manufacturing process technologies to create new and/or
extend existing manufacturing system components that are then synergistically
integrated to create new or extend existing manufacturing systems that possess
the desired advanced automation, analysis and integration capabilities.
To reach the goals of Smart Manufacturing, manufacturing resources (machines,
equipment, people and factories) and the processes they carry out must be
better when automated, integrated, monitored and continuously evaluated to
enable people to work smarter, make timely informed decisions and run
operations that are more efficient.
The improved Smart Manufacturing processes will handle and manage more
operational complexity, should be less prone to disruption, and should be able to
manufacture goods more efficiently. In such a manufacturing plant, information
about the state of the enterprise passes communications between people,
equipment and enterprise and operations management applications in a
natural yet structured manner. This includes communications among the
ecosystem of designers, producers, factories, suppliers and customers.
Smart Manufacturing allows ubiquitous use of mined information throughout
the product value chain. This supports accurate and timely decision-making,
benchmarking and continuous improvement of the supply, production,
distribution and support functions.
Applying the Smart Manufacturing concept to the future Smart Factory can
mean equipping it with smart machines, robots, advanced sensors and
intelligence that can adjust or switch operations based on sensing the product,
diagnostic or environmental conditions. This equipment should be able to publish
data and receive instructions via open M2M standards and Internet protocols.

Virtual process modeling and simulation technology is used for validation before
any physical investment is made in the factory. This provides broader and deeper
knowledge of the required manufacturing processes to all parts of the enterprise.
Smart Manufacturing can be applied more broadly and less costly if implemented
on top of enhanced manufacturing-IT platforms with capabilities such as the
ability to receive published data from equipment using secure open standards,
analyze and aggregate the data, and trigger process controls to record the history
and implementation of workflows. Integrated workflows enable business
processes across the enterprise and value chain systems to connect via A2A and
B2B open standards into a Digital Thread.
In applying the Smart Manufacturing concept, Digital Thread processes will
enable access to and exchange of engineering product design documentation
(recipe or 3D Model-based Definition (MBD)). Product Manufacturing
Information (PMI) will enhance product documentation and enable recipe
specifications. The definitions will automatically translate into manufacturing and
inspection processes (CAM, NC, work instructions, inspection/test requirements,
CMM programs, master recipes, etc.) with change control mechanisms that span
the entire value chain.
Smart Manufacturing aims to provide a broad portfolio of these advanced
capabilities to manufacturers of all sizes and in all industry sectors, at acceptable
levels of cost and implementation complexity.
The Smart Manufacturing concept can leverage recent advances in smart devices
and auto-identified components that are self-identified by tags (e.g. RFID), either
embedded in the component or in the packaging. Smart products will have more
onboard information about their product configuration and might even be able
to broadcast usage and self-diagnostics via open standards.
The ultimate outcome of applying the Smart Manufacturing concept can be:
 End-to-end value chain visibility for each product line that connects the
manufacturer to customers and the supplier network
 Efficient distributed production systems that connect any number of global
plants and suppliers into an integrated value chain for each product line
 Autonomous and distributed decision support at the device, machine and
factory level
 New levels of efficiency to support new business models, including mass
customization and product-as-a-service
 Efficient flexibility for plants that can build products in small batches or even
build one product at a time as ordered and configured by each customer
 Design anywhere and build anywhere strategies with robust change
management practices that guarantee fidelity to product design
specifications

 Enhanced information-based decision-making and analytics based on large

amounts of raw data gathered from the Smart Manufacturing equipment and
processes
 Enhanced product genealogy traceability for critical materials and
components into higher levels of components, all the way to the final
product. Genealogy maintenance that continues into aftermarket services on
the product
 Multi-vendor hardware and software plug-and-play solutions via open
integration platforms and standards and connectivity via the Internet

THE INTERNET OF INDUSTRIAL THINGS

The Internet of Things (IoT) is a term coined in 1999 by Kevin Ashton [4] to refer
to networks of physical objects, or “things,” embedded with electronics,
software, sensors and connectivity to exchange data in support of business
processes. The Internet of Things is not limited to manufacturing. A person
wearing a wrist fitness monitor, for example, is now a “thing.” The Internet of
Things, however, certainly does apply to manufacturing and is an enabler for
Smart Manufacturing.[6]
Figure 1: IoT is an enabler to Smart Manufacturing
The Industrial Internet of Things (IIoT) defines a subset of the IoT term dedicated
to the manufacturing shop floor. The Industrial Internet Consortium (IIC) adopted
the term IIoT, and promotes standards to move from older automation protocols
to newer Internet-enabled IoT protocols for industrial equipment.

Figure 2: The Industrial Internet of Things (IIoT)
All IIoT- and Smart Manufacturing-related efforts have a similar vision: to

improve manufacturing operations and collaboration between partners in the
manufacturing value chain. In order to achieve this, manufacturers want to see
industrial automation use standards and mechanisms similar to home and office
equipment integration. Manufacturers would like to see applications (aka apps)
on their phones giving them the ability to view, interact and control the shop like
the apps they have today to control their home or car.
It is important to note the main difference between the automation achieved in
the last few decades and the automation methods targeted under IIoT and Smart
Manufacturing. For the last few decades, organizations depended on custom
integration, vendor-proprietary interfaces and separate network protocols for
integration and automation at the factory. Moving forward with IIoT,
organizations want to embrace open standards and Internet protocols to
facilitate an easier swap and mix of multi-vendor equipment and software, which
might be on-premise or in the cloud.
For existing manufacturing environments, especially in highly-automated,
process-intensive industries (e.g. chemicals), much of the data one would
consider “IoT” data is already being captured today by existing SCADA
(Supervisory Control and Data Acquisition) and DCS (distributed control system)
software, so sensor integration is a smaller challenge in those types of
environments. A bigger challenge is switching those integration methods to open
industry standards, and modeling those industrial “things” as cyber physical

systems that knit together the information about existing assets with service
layers and analytics engines that really bring the “smart” into Smart
Manufacturing.
THE FOURTH INDUSTRIAL REVOLUTION

The era of “one-size-fits-all” mass production is behind us. We are looking ahead
at a new era of manufacturing that supports mass customization and products
sold as a service. Industry analysts and visionaries have identified this era as a
next Industrial Revolution. Here is historical context for the Fourth Industrial
Revolution.
Figure 3: The start of the Fourth Industrial Revolution
The First Industrial Revolution occurred between the late 18th century and early
19th century and changed the way the world produced goods. Advances in
materials, manufacturing processes, transportation and communications
facilitated this Industrial Revolution. Processes developed drove the mass
production of iron and steel to make everything from appliances, tools and
machines, to buildings and ships. The power loom revolutionized textiles and the
assembly line revolutionized manufacturing. The steam engine enhanced
transportation and the telegraph improved communications across the ocean.

The Second Industrial Revolution started in the late 19th century, and continued
into the early 20th century. Nicknamed the Electrical Revolution, it included the
development of the internal combustion engine, and advances in fuel,
infrastructure, standardization and mass production through interchangeable
parts technology. Infrastructure advances included large growth in railroad, gas,
water, electricity, telegraph and telephone networks. Governments stepped in
and established standards for a range of services that facilitated this Industrial
Revolution, including railroad gauges, electricity voltages, layout of typewriter
keyboards and rules of the road for automobiles. Large economies of scales
marked this period, created by the updated infrastructure and a corresponding
reduction in cost of machines and equipment.
The Third Industrial Revolution, called the Electronics or Internet Revolution,
started in the late 20th century as electronic technology became widespread.
From telephones, to television, to satellites, to computers—electronics were
everywhere. Closed government and private networks gave way to an open
network called the World Wide Web (aka the Internet). Numerical Controlled
(NC) machines and Programmable Logic Controllers (PLCs) were developed for
manufacturing automation. Personal computers (PCs) were adopted on the
factory floor as part of the automation and tracking systems based on
spreadsheets, custom database applications and the first wave of commercial
manufacturing software, including Computer-aided Manufacturing (CAM) and
Computer-integrated Manufacturing (CIM). Lean manufacturing practices,
automation and information systems led to big manufacturing productivity
improvements during this era.
In the Third Industrial Revolution, distributed information networks loosely
connected manufacturing enterprise software for procurement, inventory
control, scheduling, operations management and financial management. Service-
oriented Architecture (SOA) concepts were developed for integration among
enterprise applications, but due to a lack of standardization, integration
mechanisms did not reach the desired level of plug-and-play integration. The
Internet was embraced for eCommerce applications and data exchange with
suppliers via standards like EDI.
The Fourth Industrial Revolution, dubbed the Digital or Cyber-physical
Revolution, is starting now in the 21st century. In 2015, the expected investment
is an estimated $120 billion to connect operations, building systems, mobile
equipment in the field and more to the IoT, up 18 percent from 2014, according
to IDC, a technology market consultancy. In 2014, 278 million factory machines,
construction vehicles and other pieces of industrial equipment connected to the
IoT, 10.2 percent more than in 2013, according to technology research consultant
Gartner Inc. By 2020, Gartner [8] expects 526 million pieces of equipment to be
connected. According to McKinsey [10], the IoT will unleash $6.2 trillion in new
global economic value annually by 2025, with $2.3 trillion coming from the global
manufacturing industry alone. To put this into perspective, the total global gross
domestic product for 2013 was approximately $75 trillion. Companies that
quickly leverage the full opportunity presented by the IoT will seize the greatest
value, and assume market-leader status in the next decade.

Why is this Smart Manufacturing revolution happening now? In part, it is due to

the convergence of several trends, illustrated in the following figure:
Figure 4: Trends driving the Smart Manufacturing revolution
This Industrial Revolution is fueled by the convergence of multiple game-

changing technologies, including the proliferation of personal use smartphones,
Internet-based services and home automation, and advances in manufacturing,
including 3D model-based engineering, additive manufacturing (aka 3D printing),
robotics, mobile tablet computers and cloud computing. Advances in computer
and network speed and capabilities provide enhanced platforms for commerce,
industrial and social exchanges. Smart devices with massive computing power
and Internet connectivity are not limited to personal use; they are invading the
manufacturing shop floor. Cyber-physical systems communicate status and
properties of the physical system to other cyber-physical systems and
applications in the Smart Factory. This revolution enables new business models
for manufacturing, shifting from mass production to mass customization of
products, and selling more products as an annual service versus the traditional
buy-it-once sale.
Smart Manufacturing enables the Fourth Industrial Revolution. Smart
Manufacturing brings under its umbrella multiple government and industry
initiatives, including IoT, Digital Manufacturing, Model-based Enterprise and
Industrie 4.0. Hardware and software vendors need to embrace standards for
integration to enable an enhanced level of productivity and plug-and-play among
manufacturing equipment, facilities and enterprise systems. Governments and
industries have created initiatives to accelerate the needed standardization.
Several of these initiatives and consortiums appear later in this paper.
This recent wave of technology and methodology innovation has ramifications
spanning strategy, leadership and governance. Available data from connected
smart devices is driving step changes in operational efficiency. Globally accessible

data is enabling the automation of decisions and seamless integration of

operations to a value chain that extends directly to end customers. People,
systems and assets are now able to communicate and collaborate with each
other in ways that were not before possible. Smart Manufacturing-enabled
systems are transforming businesses, optimizing efficiencies, boosting
productivity, reducing costs and bringing products and services to market faster.
THE DIGITAL THREAD IN SMART MANUFACTURING

Another driver for Smart Manufacturing is the Digital Thread. This is a single,
unbroken thread of critical data and information throughout the value chain that
is accessible to all stakeholders across the extended ecosystem and ensures
complete visibility and traceability from design and suppliers through production,
and ultimately to the end user or customer. Progressive technology suppliers and
manufacturers are developing and deploying the Digital Thread across several
industries. A fully contextualized set of information enables more confident
decision-making in all parts of an organization, including production, quality,
maintenance, sales, marketing and design. Examples of communications in the
Digital Thread include product and process specifications, test results,
conformance issues, asset maintenance requirements, order promise dates and
specification deviation details and approvals. The thread provides access to
necessary information in full context to support decision-making that ultimately
leads to overall increases in productivity, quality, profit and corporate Key
Performance Indicators (KPIs). Digital design and manufacturing help connect
previously unconnected functional departments of the manufacturing lifecycle
through a logical thread of data to make smarter, more efficient business
decisions.

Figure 5: STEP 3D PMI example of model-based definition
Creating the Digital Thread is a challenge. Traditional methods of manual data

collection in a silo structure and then distribution to key stakeholders is
inadequate in an environment of reduced product time to market, increased
product and process complexity and diversity. The business challenges facing
organizations, combined with the demand for creating the Digital Thread, have
rendered traditional approaches to operations software architectures obsolete.
Expanded supplier diversity and customer interaction with the design and
production process are also significant challenges. Fortunately, the capabilities of
emerging software technologies enable the efficient integration of information
across the entire product lifecycle from design, through engineering, production,
delivery and service. Information from many disparate systems aggregates to
create an end-to-end digital model that permits immediate and actionable
information to reach the necessary departments and functions with greater
speed and accuracy than ever before. Typical legacy architectures and data
structures are not agile or granular enough to be adapted to the needs of a
Digital Thread. In large production and manufacturing, the existence of multiple
legacy systems and complex integration problems feed an ever-increasing need
for more granular data. This poses significant challenges in updating and
adapting legacy systems to support delivery of the digital information to the right
business processes and to the right people at the right time.

Figure 6: The Digital Thread intersects the Smart Factory
In the Smart Factory, smart machines interact with the Digital Thread to receive
information about production needs and return the actual production context,
sending details about the product realization process to smart products and
applications within the enterprise.
The Digital Thread that begins with a 3D model-based or recipe-based definition
of the product from design teams flows into the Smart Manufacturing system
and ultimately to an extended smart supply chain via standards of integration.
These interfaces must connect web applications, mobile devices and cloud
services in a system of systems to ensure the pervasive distribution of the data
comprising the Digital Thread. The network of connected devices, resources
systems, partners and suppliers will result in the transformation of conventional
value chains and the emergence of new business models.
Several industries have used the term Model-based Enterprise and Enterprise
Recipe Management for the initiative of creating a continuous Digital Thread
from design models and specifications (aka Model-based Engineering) flowing
downstream into the supply chain, manufacturing, inspection and aftermarket
services of the product.
Industry is embracing the Model-based Enterprise, yet there are many gaps in
the Digital Thread of information flowing from design to manufacturing,
assembly and inspection. The manufacturability of a product can be dependent
on particular design parameters and tolerances. There should be a design
feedback loop between the design of the product and the design of the
manufacturing processes, tooling design and equipment capabilities. The design
engineer states the form and fit requirements for the components in terms of
dimensions and tolerances for discrete manufacturing, or the chemistry and
physical transformations in the process industries. These are coupled tightly to
design intent, but there needs to be a formal means of conveying that intent to
the part inspection systems. There is a need to for mechanisms for specifications,

capturing data and communicating issues with non-conformance to the

requirements and intents in a well-defined formal way. This will enable product
design engineers to flow requirements to tooling design, smart products,
processing cells and systems in less time with fewer errors, and to communicate
the real requirements for useable components to the quality control inspectors,
labs and equipment, thus reducing the incidence of nonconforming parts.
THREADING ENTERPRISE SYSTEMS WITH MESSAGING STANDARDS

As we stated in an earlier section, one of the enablers for the advances in the
Second Industrial Revolution was the standardization of generation and
exchange of electricity as a commodity. In the Third Industrial Revolution,
standards for networking PCs and enterprise systems played a key role in
industrial software advances. Now, at the advent of a Fourth Industrial
Revolution standards will again play a key role in the interoperation of
manufacturing equipment, systems and suppliers. The electrical standards of the
Second Industrial Revolution allowed for plug-and-play automation of electrically
powered manufacturing equipment and processes (at least, from a power
perspective). Information standards achieve the same plug-and-play goal in this
Smart Manufacturing revolution, which is now underway.
Demands on manufacturing, such as shorter time to market, shorter lifecycles,
more product configurations, higher performance and more flexible dynamic
processes, drive the need for smarter and more automated machines and
production processes. As a result, there is an increased complexity in all activities
and communications regarding product and plant assets (e.g. parts, plants,
machines, sensors, systems, assemblies and software). These demands drive the
enterprise to exchange product data in electronic form for many years. Moving
forward, the Smart Factory will use standard formats in a comprehensive
network of digital models, methods and tools that are integrated by a
comprehensive data management system. The exchange of data between and
within enterprises; between engineering tools; and between departments can
only run smoothly when both the information exchanged and the information’s
meaning are defined and standardized clearly.
Smart Manufacturing methods will require that manufacturers and vendors of
hardware and software embrace standards to facilitate these new levels of
communication and automation. Standards that describe all information of a
product and production system during the planning and development process,
and make this information understandable, reusable and changeable throughout
the product’s entire lifecycle, will give an advantage to all parties involved in the
various aspects of its lifecycle.

Needed standards in several areas to enable Smart Manufacturing, include:

1. IT standards (e.g. TCP/IP, http/https, BPEL, XML, SOAP, REST, MQTT,
BPMN, OPC, RDF and WS-*) make systems interoperate and exchange
information in standard ways, regardless of content.
2. Messaging content standards (e.g. B2MML, OAGIS) simplify content
exchange between applications. Without standards, the content must be
mediated somewhere (in the application or in the middleware),
regardless of the IT standards being used to support the exchange.
3. Model standards for enterprises, assets, resources, products and
processes (e.g. ISA-95, ISA-88, ISO-15926, PLCS) support information
modeling and provide a consistent view of various types of entities
involved in Smart Manufacturing.
A key element of Smart Manufacturing, as described within Industrie 4.0 [14] and
the concepts of Manufacturing 2.0[7], is the joining together of the Internet of
Things and the Internet of Services. The outcome of joining these two conceptual
layers is a set of composite manufacturing processes. Information coming from
the IIoT drives the processes and are built from services, joined together into
processes that span the manufacturing and manufacturing-related applications in
an enterprise (e.g. MES, ERP, EAM and Quality). The IT standards of SOA are an
important enabler of this, as are the emerging standards related to mobile, the
Web and cloud.
The following are some of the key industry standards groups involved in
standards.
ISO
The International Organization for Standardization (ISO) is an independent, non-
governmental standards organization founded in 1946. The ISO has 162 member
countries and has published more than 19,000 international standards. ISO
standards cover a variety of topic areas, including technology, agriculture,
healthcare and food safety. ISO 15926, on the topic of “Industrial Automation
Systems and Integration,” is a key standard that applies to the area of Smart
Manufacturing. For more information, see www.iso.org.
IEC
The International Electrotechnical Commission (IEC) is the leading standards
organization focused on international standards for electrical, electronic and
related technologies. When appropriate, IEC cooperates with ISO on standards
development. IEC plays a key role in developing standards for the
networking/infrastructure side of the Internet of Things. An example of an IEC
IoT publication is a paper titled, “Internet of Things: Wireless Sensor Networks,”
which discusses the use and evolution of wireless sensor networks within the
wider context of the IoT and expands on infrastructure technologies, applications
and standards. For more information on IEC, see www.iec.ch.

MESA
The Manufacturing Enterprise Solutions Association (MESA) plays several roles in
the development and application of industry standards:
1. MESA provides guidance in the form of education, whitepapers, etc. on
the role and application of industry standards for manufacturing systems
and related interoperability/integration topics (e.g. this paper).
2. In 2012, MESA merged with the Organization for Production Technology
(WBF) and, as such, now owns the content for B2MML and BATCHML
message content development (based on ISA-95 and ISA-88
respectively).
3. MESA is also one of the partners in the Open O&M, an organization
focused on achieving better coherence between manufacturing-related
interoperability standards (Open O&M also includes Mimosa, OAGi, OPC
Foundation, IEC, ISO and ISA).
For more information, go to www.mesa.org.
ISA
The International Society of Automation (ISA) is a nonprofit professional
association that sets the standard for those who apply engineering and
technology to improve the management, safety and cyber security of modern
automation and control systems used across industry and critical infrastructure.
Founded in 1945, ISA develops widely used global standards; certifies industry
professionals; provides education and training; publishes books and technical
articles; hosts conferences and exhibits; and provides networking and career
development programs for its 36,000 members and 350,000 customers around
the world. For more information, go to www.isa.org.
OAGi
The Open Applications Group (OAGi), founded in 1994, is a not-for-profit open
standards development organization focused on standards for business process
interoperability, both inside and between production companies. Originally, the
Open Applications Group Integration Specification (OAGIS) standards primarily
focused on message content for information exchange, for things like Item
Master information and Production Status updates. Today, the standard is
evolving to include support for web applications integration and standards-based
business processes. For more information on OAGi, see www.oagi.org.
OPC Foundation
The OPC Foundation (OPC), formally known as Object Linking and Embedding for
Process Control, is made up of the developers of both the OPC, and, more
recently, OPC-UA families of standards for secure, reliable exchange of
information in the industrial automation space. Most vendors for SCADA/DCS
systems, as well as data historians, support OPC standards as a way of
exchanging real-time information related to automation equipment. For more
information, visit www.opcfoundation.org.

MIMOSA
MIMOSA (An Operations and Maintenance Information Open System Alliance) is
a nonprofit industry association focused on standards for integration of
operations and maintenance. MIMOSA is working with other organizations
mentioned here as part of the Open O&M, as well as working with ISO and POSC
Caesar organization (www.posccaesar.org/) on harmonization of MIMOSA and
ISO 15926. For more information, visit www.mimosa.org.
Some of the nomenclature and messaging standards of interest for Smart

Manufacturing include:
a) ISO 10303 – Industrial automation systems and integration –Standard for
the Exchange of Product Model Data (STEP)
b) ISO/AWI 14306 – Industrial automation systems and integration – JT file
format specification for 3D visualization
c) IEC 62264/ISA-95 – Enterprise-control system integration communication
standard terminology for manufacturing integration between enterprise
systems, manufacturing operations systems and automation control
systems
d) IEC 62832 – A Smart Factory standard for digital representation and
identification of assets in the factory
e) IEC 61512-3 – General and Site Recipes – Defines the functions and data
models for Enterprise Recipe Management, providing a PLM definition
for the process industries
f) IEC 62541/(OPC UA) – Transport of data from the manufacturing
equipment level into operations management systems
g) ISO/DIS 22400 – Manufacturing operations management key
performance indicators (KPIs)
h) MESA B2MML – Defines interfaces from business level systems to
operations systems as an implementation of the IEC 62664/ISA-95
standards
i) MESA BatchML – Defines the standard exchange model for Enterprise
Recipe Management information
j) OAGIS – Use of OAGIS XML standards for A2A (application-to-application)
or B2B (business-to-business) integration interfaces within the enterprise
and into the supply chain
Organizations should acquaint themselves with these standards, embrace them
for future projects and participate in their evolution. It will be a one more step
on the path toward the next generation of Smart Manufacturing and Connected
Enterprise. You can find more information on these standards in the Appendix.

Figure 7: Key standards and organizations for integration in Smart

Manufacturing
As seen in Figure 5, there are a number of overlaps/challenges in industry

standards for this domain to address. For example:
1. Both OAGIS and B2MML include message definitions that can integrate
manufacturing applications with low-level systems, ERP, EAM and other
enterprises, at different levels of detail
2. MIMOSA and ISA-95 both include structures for modeling enterprises
and assets within the enterprise, at different levels of detail
3. ISO 10303 STEP and ISO-15926 include support for modeling the lifecycle
of product information
4. OPC (and now OPC-UA) is a standard for integration of automation
equipment (and sensor data coming from low level control systems), but
other standards efforts are underway related to IOT (e.g. the work of the
IEC) that are going to fall into the same domain as the OPC standards
This somewhat confusing and the evolving landscape creates challenges in the
implementation and adoption of standards. Industry, academia and government
collaborative initiatives and consortiums are addressing some of these
challenges, but there is much work needed in this area.

For more information on these standards, see the Appendix and the following
papers:
1. MESA Whitepaper #25: “An Overview and Comparison of ISA-95 and
OAGIS”
2. MESA Whitepaper #26: “Related Manufacturing Integration Standards, a
Survey”
3. MESA Guidebook: “SOA in Manufacturing Guidebook”
4. MESA Whitepaper #49: “Enterprise Recipe Management”
5. MESA Whitepaper #51: “Enterprise Recipe Management – Recipe
Transformation”
THE ROLE OF INDUSTRY AND GOVERNMENT CONSORTIUMS

Consortiums help break down some of the barriers to integration standards
adoption. The participants in these consortiums agree to embrace the
connectivity standards, prove them in testbeds, collaborate to resolve issues and
evolve the standards via the respective industry standards groups listed. The
following sections briefly describe the goals of each organization.
Industrial Internet Consortium (IIC)

The Industrial Internet Consortium™ (IIC) is an open membership, not-for-profit
organization that catalyzes and coordinates the priorities and enabling
technologies of industry, academia and government around the Industrial
Internet. The IIC, founded in March 2014, brings together the organizations and
technologies necessary to accelerate growth of the Industrial Internet by
identifying, assembling and promoting best practices. Membership includes small
and large technology innovators, vertical market leaders, researchers,
universities and governments.
The overall goal of the IIC is to:
 Drive innovation through the creation of industry use cases and testbeds for
real-world applications
 Define and develop the reference architecture and frameworks necessary for
interoperability
 Influence the global development standards process for Internet and
industrial systems
 Facilitate open forums to share and exchange real-world ideas, practices,
lessons and insights
 Build confidence around new and innovative approaches to security
Testbeds are a major focus and activity of the Industrial Internet Consortium and
its members. The IIC Testbed Working Committee accelerates the creation of
testbeds for the Industrial Internet and serves as the advisory body for testbed
proposal activities for IIC members. This centralized group collects testbed ideas

from IIC member companies and provides the members with systematic yet
flexible guidance for new testbed proposals. Innovation and opportunities of the
Industrial Internet can be initiated, thought through and rigorously tested in the
IIC testbeds to ascertain their usefulness and viability before coming to market.
These include new technologies, new applications, new products, new services
and new processes. For more information on IIC, visit www.iiconsortium.org.
Industrie 4.0
Germany is investing in Smart Manufacturing under an initiative called “Industrie
4.0.” The final report, titled “Securing the Future of German Manufacturing
Industry  Recommendations for Implementing the Strategic Initiative INDUSTRIE
4.0,” was presented to the German Chancellor, Angela Merkel, in April 2013
during the Hannover Messe.[14] As the title suggests, it was at first intended to
be a purely German initiative; however, the ideas and concepts introduced have
led to its acceptance and even adoption under different names in many countries
globally.
Dr. Siegfred Dais of Robert Bosch GmbH and Prof. Dr. Henning Kagermann of
Acatech (National Academy of Science and Engineering) served as co-chairs of
the working group. Experts from industry, industry associations, trade unions,
academia and government worked closely to produce the report. There were five
working groups (WGs):
 WG 1 The Smart Factory
 WG 2 The Real Environment
 WG 3 The Economic Environment
 WG 4 Human Beings and Work
 WG 5 The Technology Factor
Global competition in the manufacturing engineering sector is becoming fiercer,

and Germany is not the only country to have recognized the trend to deploy the
Internet of Things and Services in the manufacturing industry. Moreover, it is not
just competitors in Asia that pose a threat to German industry – the US is also
taking steps to combat deindustrialization through programs to promote
“advanced manufacturing.” In order to bring about the shift from industrial
production to Industrie 4.0, Germany needs to adopt a dual strategy. Germany’s
manufacturing equipment industry should seek to maintain its global market
leadership by consistently integrating information and communication
technology into its high-tech strategies so it can become the leading supplier of
Smart Manufacturing technologies. At the same time, it will be necessary to
create and service new leading markets for cyber physical systems technologies
and products. In order to deliver the goals of the cyber physical system strategy,
the following features of Industrie 4.0 should be implemented:
 Horizontal integration through value networks
 End-to-end digital integration of engineering across the entire value
chain
 Vertical integration and networked manufacturing systems

The journey toward Industrie 4.0 will require Germany to put a huge amount of
effort into research and development. In order to implement the dual strategy,
research is required into the horizontal and vertical integration of manufacturing
systems and end-to-end integration of engineering. In addition, new social
infrastructures in the workplace will be a result of Industrie 4.0 systems, as well
as continued development of CPS technologies.
In order to implement successfully Industrie 4.0, the appropriate industrial and
industrial policy decisions must accompany research and development activities.
The Industrie 4.0 Working Group recommends action in the following eight key
areas:
 Standardization and reference architecture
 Managing complex systems
 A comprehensive broadband infrastructure for industry
 Safety and security
 Work organization and design
 Training and continuing professional development
 Regulatory framework
 Resource efficiency
The journey toward Industrie 4.0 is an evolutionary process. Current basic

technologies and experience will have to be adapted to the specific requirements
of manufacturing engineering and innovative solutions for new locations, and
new markets explored. If done successfully, Industrie 4.0 will allow Germany to
increase its global competitiveness and preserve its domestic manufacturing
industry.
Smart Manufacturing Leadership Coalition (SMLC)

Smart Manufacturing Leadership Coalition (SMLC) is a nonprofit organization
comprised of manufacturing practitioners, suppliers and technology companies;
manufacturing consortia; universities; government agencies and laboratories.
The joint vision is to enable these stakeholders to collaborate and share research
and development on approaches, standards, platforms and shared infrastructure
to facilitate the broad adoption of Smart Manufacturing, in order to deploy best
practices by applying a reference architecture that enables seamless
collaboration and integration between Information Technology (IT) and
Operational Technology (OT). The concepts of SMLC are a shared, open
architecture and software infrastructure that integrate components required to
assemble customized Smart Manufacturing systems on a standards-based
deployment infrastructure, and data-driven manufacturing intelligence in real-
time across an entire Smart Factory and supply chain, all delivered through a
shared infrastructure.
The Smart Manufacturing Platform will significantly lower the cost and
complexity barriers for a cloud-based, open-architecture platform that integrates
existing and future plant-level data, simulations and systems across
manufacturing seams orchestrating business real-time action.

SMLC activities focus on comprehensive technology that no one company can

undertake. SMLC’s industry-driven implementation agenda will achieve
transformational economic impact, manufacturing innovation and global
competitiveness.
SMLC will address cross-industry enterprise integration practices; modeling and
simulation assimilation; real-time synchronizing of virtual and physical models;
and the development of at-scale demonstrations. SMLC will help companies
address manufacturing-related challenges across the automotive, food, military,
materials, chemical, oil and gas, refining, pharmaceutical, information
technology, process control and automation industries. SMLC also supports
collaborative research, development and commercialization.
For more information on SMLC, visit www.smartmanufacturingcoalition.org.
CEMII
The Clean Energy Manufacturing Innovation Institute for Composites Materials
and Structures (CEMII) is an institute established by the Advanced Manufacturing
Office of the Office of Energy Efficiency and Renewable Energy. The stated goal
of CEMII, which is similar to the goals that NIST has in the manufacturing area for
the US, is to revitalize American manufacturing and support domestic
manufacturing competitiveness. This institute, in particular, focuses on low cost,
energy efficient manufacturing of fiber reinforced polymer composites.
For more information, visit www.energy.gov/eere/.
DMDII
The Digital Manufacturing and Design Innovation Institute is a Federally-funded,
public-private consortium of companies, academic institutions, nonprofits and
governments that want to improve the competitiveness of U.S. manufacturers
by encouraging their adoption of Digital Manufacturing and design technologies.
The DMDII undertakes cutting-edge research, disseminates the lessons learned
and educates the digital workforce.
DMDII and its partners create tools and technologies to solve for today’s most
pressing manufacturing challenges. The goals include providing factories with
the tools, software and expertise needed to build things more efficiently, less
expensively and more quickly. As more global competitors push the envelope in
Digital Manufacturing and design, supply chains need to learn how to integrate
data at all of the stages of production—design, prototype, production,
inspection and shipping.
DMDII members can also participate in the Institute's workforce development
activities.
For more information, visit www.dmdii.uilabs.org/.
MESA International
Manufacturing Enterprise Solutions Association (MESA) International is a
worldwide not-for-profit community of manufacturing companies, information
technology hardware and software suppliers, system integrators, consulting

service providers, analysts, editors, academics and students. The combined

purpose is to improve business results and production operations through
optimized application and implementation of information technology and best
management practices.
MESA member companies, individuals and our knowledge base span the full
range of manufacturing environments from discrete to batch to mixed model to
process. The association's efforts focus on helping the manufacturing community
to use information technology to provide real-time visibility into the production
process. Further, MESA is committed to connecting that visibility to create
business results, achieving real value chain objectives such as Lean
manufacturing, collaborative supply chain management, quality and regulatory
compliance, asset performance management and product lifecycle management.
MESA provides a variety of programs and events that work together to help
manufacturers:
 Better understand what is possible in terms of information technology to
improve profitability, business value, agility and customer satisfaction
 Engage "best practices" to see what other manufacturers have done to
achieve measurable success
 Approach investment decisions in technology with more confidence
 Learn to improve the deployment of new technology
MESA's Global Education Program and events present to manufacturing

businesses those best practices used to solve critical problems within their
corporations and those that extend to their suppliers, customers and partners. As
members, both manufacturers and information system providers benefit from
working together on solving critical business issues and furthering the state of
the industry in the use of integrated information systems.
For more information, visit www.mesa.org/.
NIST
The mission of the National Institute of Standards and Technology (NIST) is “to
promote U.S. innovation and industrial competitiveness by advancing
measurement science, standards and technology in ways that enhance economic
security and improve our quality of life.” Given that mission, NIST is motivated to
sponsor and participate in initiatives that, in particular, help the US become more
competitive in the area of Smart Manufacturing (similar to the German
government’s sponsorship of the Industrie 4.0 initiative). Examples include a
NIST-sponsored workshop on the topic of “Open Cloud Architectures for Smart
Manufacturing” [13] and NIST’s membership in the Industrial Internet
Consortium. NIST also provides leadership to advance the concept of Cyber
Physical Systems. It has established a CPS and Smart Grid Program Office within
its Engineering Laboratory to support that effort.
For more information, visit www.nist.gov/cps/.

THE JOURNEY TO A SMART MANUFACTURING FUTURE

Change is a constant in life and manufacturing is no exception. How do
organizations get ready for this coming wave of Smart Manufacturing change and
the associated new enabled capabilities, business processes, automation and
integration strategies, and business models? What should businesses be doing
now and in the next few years to keep up with this wave of accelerated
technology innovation?
The manufacturing industry is at an inflection point with major advances in
enabling innovations and a proliferation of smarter end points that are both
valuable and vulnerable. Smart Manufacturing includes the Internet of Things
(IoT), cyber security, network convergence, cloud computing, data and analytics,
virtualization and mobility.
It is clear that manufacturing will serve as a key driver of research, innovation,
productivity, job creation and export growth. The Smart Manufacturing future
ties inextricably to the rise of Internet Protocol (IP) technology. The Internet of
Things is a catalyst in this shift, and requires industrial operations to change more
radically over the next five years than they have in the last 20 years. The good
news is that much of the technology necessary to turn these visions into a reality
already exists. That includes IP-enabled networks (industrial Ethernet, Wi-Fi and
cellular), information infrastructure (hardware and software), and intelligent,
connected devices. It is estimated that connected devices will reach 54 billion
devices by the year 2025 and more than 70 percent of those devices will be
installed in industrial applications.
The opportunity exists for organizations to bring their equipment and systems
into the modern, information-enabled world, and achieve huge operational
benefits. However, with these benefits come new challenges. For example, risk
from both internal and external sources expands with each new connection of
smart things, creating threats capable of disrupting control system operation,
safety, productivity and the ability to protect assets, machinery and information.
These are not only cyber threats, but also the threat of more errors due to the
growing complexity of connecting equipment and systems. These threats have
the potential to strike at the heart of a company’s reputation and its long-term
viability. Unless companies make ongoing investments in secure industrial
control systems that help address people, process and technology-related risks,
they may expose themselves to unnecessary risks as they capitalize on the
opportunities presented by a connected enterprise.
The Smart Manufacturing strategy for any company revolves around the
company’s business strategy. The following diagram depicts the different layers
of the Smart Manufacturing strategy.

Figure 8: The Smart Manufacturing roadmap
The following are six areas where initiatives should be considered in preparation
for this new era of manufacturing. Many of these recommendations revolve
around bringing office information technology and shop floor automation
technology closer together. Improved integration of systems crossing and
breaking down departmental walls between product design, manufacturing
engineers, machine programmers, production workers, inspectors, supply chain
managers and facilities managers will achieve new levels of efficiency in
manufacturing business processes.
Not every aspect of Smart Manufacturing applies to every manufacturing
company or product line, so each business has to assess these general
recommendations with their own business strategy in mind. For example, mass

customization strategies might make sense for some luxury consumer products
but not for other common commodities destined for the grocery store shelf. The
evolution timeline for each business will also be dependent on the organization’s
readiness and ability to implement business process change. Organizations
should also consider that the manufacturing competitive landscape might look
very different in 2025 and companies that are able to transform and take
advantage of these new capabilities will have an advantageous position.
#1. Review Business Structure for Future Market Strategy

Will competitors change the game by adopting new business models, developing
new capabilities or leveraging new technology? If the answer is yes, then the
business should be proactive and incorporate these strategies into their growth
strategy.
Evaluate current innovation centers and continuous improvement processes.
Perform a Hoshin-Kanri-type strategic planning exercise where the organization
evaluates current competencies, capabilities and processes against the
requirements to achieve future goals.
Establishing the vision for a future competitive state for the business is a critical
step in the journey of Smart Manufacturing. Without a clear end business state in
mind in terms of future product lines, capabilities and business models, the
organization risks investing in technology projects that will achieve small
incremental improvements in efficiency but could miss the opportunity for
breakthrough business innovation.
Smart Manufacturing methods can provide an infrastructure that enables
business innovation. For example, streamlined business processes in the next
generation manufacturing ecosystem can reshape supply chain concepts in a
much more engaged way. By analyzing the data that will become available on
product lifecycle, end user experience and usage of the product, the business will
be have a better understanding on how to bring better product and services to
market. Suppliers that react and adapt quickly with more flexibility will have a big
competitive advantage. Manufacturers will synchronize their supply chains as
they gain connectivity to bring products to market faster and improve
intelligence in their entire value chain operations.
#2. Establish Evolution Milestones for the Journey

Smart Manufacturing is not a single milestone project; it is a journey to new
business models and/or enhanced business processes enabled by new
technology, architecture and integration methods. Each business has to map its
own journey.
There will be a need to invest in exploratory steps and projects along the way.
Budgets for these efforts need to be established based on achieving the potential
returns of the long-term business strategy. This is not an easy step for many
companies focused on short-term return on investment (ROI) and small
incremental improvements. Methods of allocating budget to long-term
investments could be one of the new skills required in the organization. Smart
Manufacturing methods will provide better data that can be used to benchmark

and measure success or failure to make better data-driven decisions about

subsequent investments.
Exploratory projects need definition as achievements or trials on the path to the
future business vision. It is important for each project champion to position
clearly the relationship of the project goals to the achievement of the business
goals. This will help the entire organization rally around the implementation of
new technology and infrastructure. For example, it is not enough to say that a
project will “enable real-time visibility of production.” Instead, the champion
should go further and explain how real-time visibility is important to achieving a
business goal that puts the organization in a more competitive position in the
marketplace.
Most organizations are not going to throw away old equipment and replace it
overnight with new smart machines. The evolution plan should include
consideration to develop and implement middleware solutions that bridge and
integrate older manufacturing equipment into newer manufacturing IT platforms
where it makes business sense. These bridging solutions could allow old
equipment to participate in the enhanced integrated business processes and
extend the lifespan for some equipment 10 to 20 years.
#3. Nurture New Culture around New Vision

As manufacturers walk through their journey and begin unleashing the new gains
in productivity and efficiency, they will forget the uncertainty of adopting more
connected OT/IT technology and services. This uncertainty will be replaced by
the understanding that IP technology and training are the means to turning the
vision of Smart Manufacturing into reality.
More than 200,000 IT and OT engineers are estimated each year to scale the
Internet of Things (IoT). Coalitions and manufacturers alike will offer resources
that help control system engineers and IT engineers achieve competency and
skills to install, maintain and troubleshoot industrial network systems. The vision
of this integration and re-skilling effort is to transform data into insightful
information that provides decision makers – at every organizational level – with
enhanced visibility into operations and the value chain. It is easy to
underestimate the cultural and organizational changes required to support
enhanced integrated business processes. These processes have the capability of
breaking down the legacy of departmental silos of information and localized
optimization practices.
It is important to establish a culture where customers and suppliers are part of a
collaborative partnership team. This step can be the most difficult as external
organizations will make changes and adapt to the new manufacturing landscape
at their own pace. Supply chain champions need to recruit partners and suppliers
into the new vision.
To achieve Smart Manufacturing goals, it is imperative to break down the legacy
wall between office information technology (IT) and shop floor automation and
operations technology (OT). Many companies are already on this journey as IT
organizations integrate smartphones, tablets and Internet services into new
capabilities to support production and supply chain systems.

The organization should plan to market and internally promote the new strategic
business vision, as well as the relationships between achieving the business
goals, improving the workplace and improving personal skills for the entire team.
There will be a need for a top-down culture of embracing innovation and
expanding the daily dialogue beyond solving crisis and improving cost. The daily
dialogue must include references to the progress on new initiatives.
#4. Build Partnerships to Support the New Vision

The journey to Smart Manufacturing is not an internal journey for a single
company division; it is a journey for the entire value chain of each product line
and perhaps for an entire industry. An important part of this new culture is a
partnering philosophy with suppliers of materials, components, equipment,
technology and services that collaborate and support the requirements of
enhanced integrated business processes. Suppliers need to be convinced to
support a diversity of strategies  like embedding RFID tags, supporting new
integrated supply chain practices and supporting specific M2M and B2B
communication standards. Partners need to share and support a common
business goal, and organizations need to earn the trust of suppliers to achieve
these new levels of collaboration.
Where it makes business sense, the partnering strategy should include
participation in industry groups that are developing and promoting standards
listed in prior sections to support the Smart Manufacturing ecosystem. It is
important to recognize that participation in these efforts helps elevate the entire
industry and provide a platform for collaboration across the entire supply chain.
#5. Address Skills Gap for Knowledge Workers

The trends fueling the Smart Manufacturing direction are already turning shop
floor personnel into knowledge workers who now have information that
empowers them with more decision-making tools. Education programs will be
required, and positioned to help the organization to help its teams obtain the
skills required for jobs in this evolving manufacturing marketplace. Automation
will replace simpler repetitive tasks but organizations will need enhanced skills in
the workforce to configure, program and maintain the newer sophisticated
equipment and integrate it to the Smart Manufacturing information technology
platform.
Smart assistance systems will release workers from having to perform routine
tasks, enabling them to focus on creative value-added activities. In view of the
impending shortage of skilled workers, this will allow older workers to extend
their working lives and remain productive for longer. Flexible work organizations
will help workers to combine their work, private lives and continuing professional
development more effectively, promoting a better work-life balance.
Developing a training strategy that will drive collaboration and build trust in the
organization will be crucial. Management must reassure the team that they will
support developing these new skills within the current workforce, and at the
same time ease others fears of being left out during the implementation of new
practices due to lack of skills with new equipment or technologies.

Developing education programs that span old departmental walls and combine
skills traditionally taught in separate computer science, mechanical engineering,
industrial or system engineering disciplines will also be important. MESA offers
an education program that can play an important role in helping organizations
bring together the manufacturing and IT departments with shared skills on
manufacturing systems architecture and implementation. There is a lot of
information to assimilate in relation to the advancements in manufacturing
systems, and MESA’s education program helps to work through all the different
options for automation, architecture and integration.
#6. Evolve the Information Technology Infrastructure

Smart Manufacturing requires a solid information and communication
technology infrastructure to help ensure high performance, reliability and
security. There are two areas of the IT infrastructure for Smart Manufacturing
requiring more research and development:
a. Secured communication mechanisms that assure identity for participants
in publish and subscribe processes. These secured communication
mechanisms are also needed for pipelines that communicate over the
Internet that are protected from hacker attacks. Companies should
promote implementation of security standards not just at the network
level but also at the device level. Standards like the ISO/IEC 27000 series
of standards on information security are evolving and worth looking at
when designing the corporate information system strategy
b. Open standards for M2M, A2A and B2B communications for business
processes that cross the internal walls between departments and
external walls with the supply chain
These two areas must be developed through exploratory pilot projects with
partners in the following three layers of the IT platform to enable new levels of
automation, integration and analysis capability:
i. Smart Factory automation mechanisms that leverage sensors, auto-
identified components with RFID, programmable machines and open
standards for connecting multi-vendor equipment and software
ii. Digital Threads of information, from product definition to manufacturing,
and inspection definition to aftermarket services of the product to
maintain the integrity and fidelity of the product definition through
product revisions and configurations throughout the product value
network. The thread will leverage structured information exchange from
customer to multi-tier supply chain, transportation and warehousing
logistics
iii. Processes integrating enterprise IT systems and factory operations
technology to streamline data exchange from shop floor equipment to
operations management to business intelligence. Bi-directional data
exchange standards that enable product definition revisions to be
systematically translated to programs and processes, executed by
automated inspection, production and service equipment, and enable

acquired data from the shop floor to be aggregated and analyzed at

higher levels of the Smart Manufacturing IT platform
Security solutions extend beyond products and technologies to include guidance
on companywide security best practice designs, policies and procedures. This
approach helps companies establish a sustainable security culture, conduct
comprehensive security assessments and deploy a robust security infrastructure
across both automation and industrial IT assets.
Smart Manufacturing will address some of the challenges facing the world today
such as resource and energy efficiency, urban production and demographic
change. Smart Manufacturing delivers continuous resource productivity and
efficiency gains across the entire value network. It organizes work in a way that
takes demographic change and social responsibility into account.
Smart Manufacturing initiatives and the Fourth Industrial Revolution are just
getting started. Stay tuned for more of MESA’s Smart Manufacturing coverage
and education as these strategies evolve and mature. Better yet, get involved
with the MESA organization and actively participate in this journey. MESA will
periodically publish updates on different Smart Manufacturing topics and
examples of companies and organizations leading on the forefront of these
efforts.

APPENDIX A
Glossary
 Additive manufacturing (and 3D printing) – are processes of joining

materials to make objects from 3D model data, usually layer upon layer, as
opposed to subtractive manufacturing methodologies. Additive
manufacturing promises efficient processes and weight reduction advances
for highly customized products, and products with particularly complex
geometries or multiple materials in fewer production steps.
 Advanced robotics – A new class of robots with enhanced senses, dexterity
and intelligence. These robots perform tasks without being pre-programmed
since they can learn from experience. Sensors make them aware of the
environment and safer for the people around them.
 Augmented reality – Adding a virtual layer of contextual information at the
right time and in the right place (e.g. through devices such as Google Glass).
Augmented reality is expected to help plant floor workers perform a variety
of non-repetitive tasks faster, such as assembly, picking, maintenance and
others.
 Auto-identified components – These are the materials and components that
have smart tags like RFID that can broadcast identification information,
including part number, revision number, serial number, vendor and
configuration information used by smart machines to automatically trigger
loading of proper programs and set up parameters.
 Big data analytics – Big data analytics enable processing of large streams of
data coming out of connected devices to support operational efficiency,
visibility and control over supply chains, physical assets and plant workers.
Harnessing the power of big data analytics will allow manufacturers to not
only analyze trends but also to predict events such as future buying cycles,
equipment lifespan and capacity fluctuation.
 Cloud computing – is a model for enabling ubiquitous, convenient, on-
demand network access to a shared pool of configurable computing
resources (e.g., networks, servers, storage, applications, and services) that
can be rapidly provisioned and released with minimal management effort or
service provider interaction. These technologies and services meets the need
to simplify distributed, elongated, volatile and unpredictable supply chains by
opening multiple lines of communication among value chain participants and
by enabling the integration of their business processes.
 Cyber Physical Systems – Digital representations of physical systems used to
communicate status information and properties of the physical system to
other Cyber Physical Systems and other applications in the Smart Factory.
 Digital Thread – The collection of digital communications that integrates and
drives modern design, manufacturing and product support processes, and

includes product and process definitions that start in design engineering and
flow through multiple departments and suppliers in the product value chain.
Emerging standards provide 3D geometric models enhanced with product
manufacturing information that is semantically rich and machine-readable.
There is a desire, however, for a bi-directional Digital Thread with
component information flowing up the supply chain into higher-level
assemblies and products.
 Digital Manufacturing – Digital Manufacturing is the ability to connect
different parts of the manufacturing lifecycle through digital data that carries
design intent and process information, and utilizes that information for
intelligent automation and smarter, more efficient business decisions.
 Hoshin Kanri – Also called policy deployment or Hoshin planning, Hoshin
Kanri is a strategic planning/strategic management methodology based on a
concept popularized in Japan in the late 1950s. It is a management system in
which all employees participate, from the top down and from the bottom up,
and is intended to help an organization: (a) focus on a shared goal, (b)
involve all leaders in planning to achieve the goal, (c ) hold participants
accountable for achieving their part of the plan.
 Internet of Things (IoT) – empowers any device with network connectivity–
from smartphones to smart shelves to sensor embedded automation
controls – to be active participants in an event-driven, self-healing system.
 Industrial Internet of Things (IIoT) – The subset of IoT technologies and
protocols applied to advances in Smart Factory automation.
 Metcalfe’s Law – Derived from the number of possible cross-connections in a
network grow as the square of the number of computers in the network
increases.
 Model-based Definition (Digital Product Definition) – The practice of using
3D models (such as solid models, 3D PMI and associated metadata) within 3D
CAD software to define (provide specifications for) individual components
and product assemblies. The types of information included are geometric
dimensioning and tolerance (GD&T), component level materials, assembly
level bills of materials, engineering configurations and design intent.
 Model-based Manufacturing – The practice of basing and cross-referencing
production process and inspection definition directly off the 3D models that
define the product design.
 Model-based Enterprise – The vision for a fully integrated and collaborative
environment founded on 3D product definition detailed and shared across
the enterprise to enable rapid, seamless and affordable deployment of
products from concept to disposal. The foundational elements of a MBE are a
single digital master data set containing the 3D model and the needed
product data in a managed secure and controlled environment that supports
maximum data reuse for all aspects of acquisition, maintenance and
operations.

 Product value chain – The idea of seeing a manufacturing (or service)

organization as a system, made up of subsystems each with its own inputs,
transformation processes and outputs that involve the acquisition and
consumption of resources – money, labor, materials, equipment, buildings,
land, administration and management. Value chain activities are carried out
beyond the walls of the brand owner and throughout organizations involved
in the engineering, production and supply chain.
 Smart Factory – A combination of smart facilities, machines and equipment
with built-in sensors, self-diagnostics and connection to digital systems.
Production processes in the Smart Factory can be optimized for best use of
manpower, equipment and energy resources through simulation with the
digital representations and models.
 Smart machines (or smart assets) – Machines that participate in the Smart
Factory communication process and display a high level of autonomy,
including robots, self-driving cars and other cognitive computing systems.
These machines recognize product configurations and diagnostic
information, and make decisions and solve problems without human
intervention.
 Smart Manufacturing – The endeavor to design, deploy and manage
enterprise manufacturing operations and systems that enable proactive
management of the manufacturing enterprise through informed, timely (as
close to real-time as possible), in-depth decision execution. Systems with
Smart Manufacturing capabilities are realized through the application of
advanced information, communication and manufacturing process
technologies to create new and/or to extend existing manufacturing system
components that are then synergistically integrated to create new or extend
existing manufacturing systems that possess the desired advanced
automation, analysis and integration capabilities.
 Smart connectors (or Smart gateways) – Middleware bridges that may be a
combination of hardware and software used to bridge older machines into
direct communications with the Smart Manufacturing IT platform.
 Social technologies – communication services that create communities of
users that interact for various social purposes are widely used in consumer
IT. Social technologies are expected to be the basis for business collaboration
platforms of the future because they can break organizational silos and
interconnect multiple businesses operating over the same value chain.
 3D visualization and simulation – capabilities that fall under “Digital
Manufacturing” and help manufacturers visualize and simulate a product and
its production processes behavior in 3D to check its manufacturability before
locking in capital expenditures.

APPENDIX B
Standards Relevant to Smart Manufacturing

ISO 10303 – Industrial automation systems and integration – Product data
representation and exchange (STEP)
ISO 10303 is an ISO standard for the computer-interpretable representation and
exchange of product manufacturing information. It is known informally as
"STEP," which stands for "Standard for the Exchange of Product Model Data." ISO
10303 can represent 3D objects in Computer-aided Design (CAD) and related
information.
The international standard's objective is to provide a mechanism that is capable
of describing product data throughout the lifecycle of a product, independent
from any particular system. The nature of this description makes it suitable not
only for neutral file exchange, but also as a basis for implementing and sharing
product databases and archiving.
Typically, STEP can be used to exchange data between CAD, Computer-aided
Manufacturing (CAM), Computer-aided Engineering (CAE) and Product Data
Management (PDM) systems. STEP is addressing product data from mechanical
and electrical design, geometric dimensioning and tolerancing, analysis and
manufacturing, with additional information specific to various industries such as
automotive, aerospace, building construction, ship, oil and gas, process plants
and others.
STEP is developed and maintained by the ISO technical committee TC 184,
Automation systems and integration, sub-committee SC 4, Industrial data.
In December 2014, ISO published the first edition of a new major Application
Protocol AP-242 that contains extensions and significant updates for geometric
dimensioning and tolerancing.
The Application Protocol AP-238 (aka STEP-NC) standard defines a CNC part
program as a series of operations that remove material defined by features. The
features supported include holes, slots, pockets and volumes defined by 3D
surfaces. Each operation contributes to the manufacture of a feature by defining
the volume of material to be removed, the tolerances, the type of tool required
and some basic characteristics such as whether this is a roughing or finishing
operation. The operations are put into sequence and then into a work plan that
converts the stock into the final part.
ISO/AWI/DIS 14306 – Industrial automation systems and integration – JT file

format specification for 3D visualization
The design and manufacture of today’s products are based on 3D electronic
models developed on CAD systems. While these tools provide powerful
capabilities for developing product definitions, the objective of 3D visualization is
to allow viewership of the resulting information across a wider population
without the need for high-end CAD workstations or CAD software licenses. This
facilitates review and information use, accelerating product development.

Standard information formats for visualization allow such tools to be used to

view information generated by different native CAD systems.
ISO 14306 defines the syntax and semantics of the JT Version 9.5 file format from
a complete description of its file structure and data segments (assembly, 3D
exact, 3D facetted), to a thorough discussion of JT data compression, encoding
and best practices.
There is a proposal to extend ISO 14306 to include external references to support
semantic PMI for assemblies and other requirements from ISO 10303 AP 242.
Examples of use scenarios include:
 Request for quotation
 Digital mockup work to validate that a product can be assembled together
(spatial validation and clash detection)
 Transmission of product models by manufacturing or subcontractors, for
viewing and possible annotations
 Extraction of images for technical publications
 Viewing of design data for manufacturing and maintenance
Business benefits include:
 Use of standard format for communicating design information (approved
documents) through the organization for visualization purposes
 Avoidance of cost of CAD workstations and software for viewing purposes
IEC 61512-3/ISA88.03 – General ad Site Recipes

The IEC 61512-3 (aka ISA 88 Part 3) standard defines a model for general and site
recipes, the activities that describe their use within a company and across
companies, a representation of general and site recipes, and a data model of
general and site recipes. General and Site recipes are critical elements of
Enterprise Recipe Management.
IEC 62264/ISA-95 – Enterprise-control System Integration Communication

(ISA-95)
The IEC 62264 (aka ISA-95) standards define the standard terminology for
business-to-manufacturing integration providing a clear description of exchanged
information between the Enterprise systems (Level 4), Manufacturing Operations
System (Level 3) and the control systems (Levels 1, 2), information has to be
exchanged and moved through. The information that should be exchanged can
be divided into four categories of information: product definition, production
capability, production schedule, and production performance. Each one contains
information about the resources, i.e., personnel, material, equipment and
process segments.

Figure 9: The ISA-95 activity levels
Part 1 and Part 2 of the standard defines the information that should be
exchanged, whereas Part 3 of the standard focuses upon the activities needed
within the Manufacturing Operations system (Level 3). The manufacturing
operations are divided into four groups: production operations, maintenance
operations, quality operations and inventory operations. Each operation is
presented with an activity model, detailing the set of activities required for
manufacturing.
Part 4 of the standard defines a standard model for exchanging information
across Level 3 systems.
Part 5 of the standard defines a set of transactions for data exchange between
Level 4 and Level 3 and within Level 3.
Part 6 of the standard defines a standard set of services for sending and receiving
data exchange messages independent of the underlying message exchange
system or Enterprise Service Bus.
IEC 62832 – Smart Factory

A standard for digital representation and identification of assets in the factory.
Today each department inside the enterprise describes its products and
production systems according to its own data management schemes, often using
different terms and structures, with no seamless information exchange between
all the participants involved in the product and production system lifecycle due
to this lack of interoperability in the information systems. This standard aims to

establish guidelines for communicating the descriptions of the objects and the
exchange of information among different systems in the organization.
Figure 10: The layers of the Smart Factory framework
IEC 62541 – OPC UA

OPC Unified Architecture (OPC UA) is a framework defined by the OPC
Foundation for the secure, reliable and manufacturer-neutral transport of raw
data and pre-processed information from the manufacturing level into the
production planning or enterprise system. With OPC UA, all desired information
is available to every authorized application and every authorized person at any
time and in any place. This function is independent of the manufacturer from
which the applications originate, the programming language in which they were
developed or the operating system on which they are used. Based on a service-
orientated architecture (SOA), OPC UA forms the bridge between the company
management level and embedded automation components.
Parts of the IEC 62541 standard include Address Space Model (-03), Services (-
04), Information Model (-05), Mappings (-06), Profiles (-07), Data Access (-08),
Alarms & Conditions (-09), Programs (-10), Historical Access (-11), Aggregates (-
13) and Device Integration (-100).
More than 30 automation vendors have developed these specifications, over a
period of five years. Classic OPC provides standard specifications for data access
(DA), historical data access (HDA) and alarms and events (A&E). These OPC
specifications are widely accepted by the automation industry. Classic OPC was
based on Microsoft-COM/DCOM-technology, but the latest OPC UA (Unified
Architecture) also supports Web services methodologies. By using web service
technology, OPC UA becomes platform-independent. OPC UA seamlessly

integrates into Manufacturing Execution Systems (MES) and Enterprise Resource

Planning (ERP) systems, running not only on Unix/Linux systems using Java, but
also on controllers and intelligent devices having specific real-time capable
operation systems.
ISO/DIS 22400 – Manufacturing operations management – Key performance

indicators
ISO 22400 defines key performance indicators (KPIs) used in manufacturing
operations management. ISO 22400-2:2014 specifies a selected number of KPIs
in current practice. The KPIs are presented by means of their formula and
corresponding elements, their time behavior, their unit/dimension and other
characteristics. ISO 22400-2:2014 also indicates the user group where the KPIs
are used, and the production methodology to which they correspond.
Some of the measures defined include the following:
 Raw materials inventory, consumables inventory, finished goods inventory,
work-in-process inventory and consumed material
 Order quantity, scrap quantity, good quantity, rework quantity and produced
quantity
 Equipment production capacity, worker efficiency, throughput rate,
utilization efficiency, overall equipment effectiveness, availability,
effectiveness, quality ratio, technical efficiency, first pass yield, scrap ratio
and rework ratio
 Process capability index, inventory turns and finished goods ratio
 Mean operating time between failures, time to failure and corrective
maintenance time
OAGIS – Messaging standards for A2A or B2B integration interfaces

OAGIS standards are published by OAGI (Open Applications Group) and focus on
building enterprise-ready standards for A2A (application-to-application), B2B
(business-to-business), enterprise, mobile and cloud interoperability.
Examples of BODs (Business Object Documents) include: Process Purchase Order,
Acknowledge Purchase Order, Get Inventory Balance, Show Inventory Balance,
Notify Shipment, Notify Receive Delivery, Process Remittance Advice
Examples of nouns in OAGIS BODs include: ItemMaster, BOM,ConfirmWIP,
DispatchList, EmployeeWorkSchedule, EmployeeWorkTime,
EngineeringChangeOrder, InspectDelivery, InventoryConsumption,
IssueInventory, MoveInventory, Routing, Shipment, ShipmentSchedule,
Operation, Personnel, ProductionOrder, ProductionSchedule, PurchaseOrder,
ReceiveItem
OAGIS verbs include: Acknowledge, Cancel, Change, Confirm, Get, Load, Notify,
Post, Process, Show, Sync

REFERENCES
[1] “The Future of Manufacturing,” Pierfrancesco Manenti, Lorenzo Veronesi and
William Lee, IDC Manufacturing Insights, 2014
[2] “The Digital Factory”, Pierfrancesco Manenti , SCM World, 2014
[3] “MESA Guidebook - SOA in Manufacturing,” MESA International, 2010
[4] “The Internet of Things: How the Next Evolution of the Internet Is Changing
Everything,” Dave Evans, CISCO, 2011
[5] “Industry 4.0 – Challenges and solutions for the digital transformation and use
of exponential technologies,” Deloitte, 2014
[6] “SMLC Forum: Priorities, Infrastructure, and Collaboration for Implementation
of Smart Manufacturing Workshop Summary Report,” SMLC, 2012
[7] “Manufacturing 2.0 – It’s Time to Rethink Your Manufacturing IT Strategy,”
Microsoft, 2009
[8] “The Emperor’s New Clothes and the Factory of the Future,” Simon Jacobson,
Gartner Supply Chain Conference, 2015
[9] “A Revolution in the Making,” John Koten, Wall Street Journal, 2013
[10] “The Internet of Things: Mapping the Value Beyond the Hype,” McKinsey &
Company, 2015
[11] “Industrial Internet of Things – 2014 Edition,” IHS, 2014
[12] “Industrial Internet: Pushing the Boundaries of Minds and Machines,” Peter
Evans and Marco Annunziata, General Electric Whitepaper, 2012
[13] “Mfg in the Age of IoT and Cloud: Opportunity and Challenge,” Dave Noller,
IBM presentation at NIST Workshop on Open Cloud Architectures for Smart
Manufacturing, NIST, 2015
[14] “Recommendations for implementing the strategic initiative INDUSTRIE 4.0,”
Kagermann, Wahlster and Helbig, Industrie 4.0 Working Group, 2013

AUTHORS AND EDITORS

Mike Hannah, Rockwell Automation
Mike James, ATS Global
Stu Johnson, Plex Systems
Conrad Leiva, iBASEt, Chair of MESA Smart Manufacturing Working Group
Andre Michel, Efficient Plant
Dave Noller, IBM
Frank Riddick, NIST
Darren Riley, Dassault Systemes
Evan Wallace, NIST
Brad Williams, PTC
REVIEWERS
Luigi De Bernardini, Autoware S.r.l.
Dennis Brandl, BR&L Consulting
Trever White, Toyota
Mike Yost, MESA International

About MESA: MESA promotes the exchange of best practices, strategies and
innovation in managing manufacturing operations and in achieving operations
excellence. MESA’s industry events, symposiums and publications help
manufacturers achieve manufacturing leadership by deploying practical solutions
that combine information, business, manufacturing and supply chain processes
and technologies. More at www.mesa.org
CONTRIBUTING ORGANIZATIONS
ATS is an independent solution provider for industrial, process automation,
quality and information technology users world-wide. ATS provides products
and services for all three levels of the automation pyramid: control, execution
and information. ATS is an innovative, strategic knowledge partner offering
expertise in automation, MES/MOM, PLM, quality management and Smart
Manufacturing. More at www.ats-global.com
Autoware provides advanced solutions for manufacturing management,
through the control and supervision of plants, processes and supply chains.
Throughout almost 20 years of activity, Autoware has delivered projects
encompassing continents, and has defined itself as a strong innovative partner
for companies in F&B, CPG and Pharma industries. Autoware is focused on the
evolution of MES and its integration with the Internet of Things. More at
www.autoware.it
BR&L Consulting is a consulting firm with diverse internationally recognized
expertise in the areas of manufacturing IT, including Manufacturing Execution
Systems, business-to-manufacturing integration, general recipe
implementations, and international assignment management functions in
Human Resources, compensation, payroll, finance and vendor management.
More at www.brlconsulting.com
Dassault Systèmes provides business and people with virtual universes to
imagine sustainable innovations. Its solutions transform the way products are
designed, produced and supported. Dassault Systèmes’ collaborative solutions
foster social innovation, expanding possibilities for the virtual world to improve
the real world. The Dassault Systèmes portfolio of products includes CAD, PLM,
3D visualization, simulation and manufacturing software. More at www.3ds.com
Efficient Plant specializes in consulting on the development, integration and
operation of complex Automation Systems. Services include expertise with
project management, manufacturing process improvement, control
performance improvement, MES and automation technical services. More at
www.efficientplant.com
iBASEt is a provider of software solutions to complex, highly regulated
industries, like Aerospace and Defense, Medical Devices, Nuclear, Industrial
Equipment, Electronics and Shipbuilding. iBASEt’s Solumina software
streamlines and integrates Manufacturing Execution System and Operations
Management (MES/MOM), Maintenance, Repair and Overhaul (MRO) and

Enterprise Quality Management System (EQMS) for operations and Supplier

Quality Management. More at www.ibaset.com
IBM is a globally integrated technology and consulting company with operations
in more than 170 countries. IBM attracts and retains some of the world's most
talented people to help solve problems and provide an edge for businesses,
governments and non-profits. Innovation is at the core of IBM's strategy,
including hardware and software for a broad range of infrastructure, cloud and
consulting services. IBM’s growth initiatives include Cloud, Big Data and
Analytics, Mobile, Social Business and Security. More at www.ibm.com
NIST is a non-regulatory agency of the U.S. Department of Commerce that
promotes U.S. innovation and industrial competitiveness by advancing
measurement science, standards and technology in ways that enhance
economic security and improve our quality of life. More at www.nist.gov
Plex delivers ERP and manufacturing automation on the cloud to more than 400
companies across process and discrete industries. Plex cloud solutions for the
shop floor connect suppliers, machines, people, systems and customers with
capabilities that are easy to configure, delivering continuous innovation and
reduce IT costs. With insight that starts on the production line, Plex helps
companies see and understand every aspect of their business ecosystems,
enabling them to lead in an ever-changing market. More at www.plex.com
PTC is a global provider of technology platforms and enterprise applications for
smart and connected products, operations and systems. PTC's enterprise
applications serve manufacturers and other businesses that create, operate and
service products. PTC was an early pioneer in Computer Aided Design (CAD) and
PLM software, and has expanded its portfolio with the ThingWorx application
enablement platform to deliver new value emerging from the Internet of Things.
More at www.ptc.com
Rockwell Automation Inc. is dedicated to industrial automation and information
technology that makes manufacturers more productive and the world more
sustainable. Rockwell Automation products include control systems, control and
sensing devices, information, HMI and visualization software, and network and
security technology. More at www.rockwellautomation.com
Toyota Motor Manufacturing in Kentucky is Toyota’s largest vehicle
manufacturing plant in North America, it has produced nearly 10 million
vehicles, and employs around 7,000 people. Toyota has been studied for its
Lean Manufacturing and Toyota Production System practices including Just-In-
Time inventory controls, elimination of wasted time and effort (Muda) in
production, and prompt attention to correction of problems (Jidoka). More at
www.toyotaky.com

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Smart Manufacturing

– The Landscape Explained

WHITE PAPER #52

CHALLENGES WITH LEGACY MANUFACTURING SYSTEMS .................... 5

THE FOURTH INDUSTRIAL REVOLUTION ............................................ 14

© Copyright MESA 2016. All rights reserved. i

CONTRIBUTING ORGANIZATIONS ..................................................... 47

© Copyright MESA 2009. All rights reserved. ii

© Copyright MESA 2016. All rights reserved. 3

manufacturing to the economy. After decades of companies outsourcing

© Copyright MESA 2016. All rights reserved. 4

CHALLENGES WITH LEGACY MANUFACTURING SYSTEMS

© Copyright MESA 2016. All rights reserved. 5

A typical manufacturing landscape is composed of diverse equipment that is

© Copyright MESA 2016. All rights reserved. 6

and automation technologies supporting operations, initially and

It is critical to provide immediate and actionable information to drive rapid and

© Copyright MESA 2016. All rights reserved. 7

 Decision makers lack a consistent and unified method for monitoring,

© Copyright MESA 2016. All rights reserved. 8

THE GOALS OF SMART MANUFACTURING

© Copyright MESA 2016. All rights reserved. 9

© Copyright MESA 2016. All rights reserved. 10

 Enhanced information-based decision-making and analytics based on large

© Copyright MESA 2016. All rights reserved. 11

THE INTERNET OF INDUSTRIAL THINGS

Figure 1: IoT is an enabler to Smart Manufacturing

© Copyright MESA 2016. All rights reserved. 12

Figure 2: The Industrial Internet of Things (IIoT)

All IIoT- and Smart Manufacturing-related efforts have a similar vision: to

© Copyright MESA 2016. All rights reserved. 13

THE FOURTH INDUSTRIAL REVOLUTION

Figure 3: The start of the Fourth Industrial Revolution

© Copyright MESA 2016. All rights reserved. 14

© Copyright MESA 2016. All rights reserved. 15

Why is this Smart Manufacturing revolution happening now? In part, it is due to

Figure 4: Trends driving the Smart Manufacturing revolution

This Industrial Revolution is fueled by the convergence of multiple game-

© Copyright MESA 2016. All rights reserved. 16

data is enabling the automation of decisions and seamless integration of

THE DIGITAL THREAD IN SMART MANUFACTURING

© Copyright MESA 2016. All rights reserved. 17

Figure 5: STEP 3D PMI example of model-based definition

Creating the Digital Thread is a challenge. Traditional methods of manual data

© Copyright MESA 2016. All rights reserved. 18

Figure 6: The Digital Thread intersects the Smart Factory

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capturing data and communicating issues with non-conformance to the

THREADING ENTERPRISE SYSTEMS WITH MESSAGING STANDARDS

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Needed standards in several areas to enable Smart Manufacturing, include:

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Some of the nomenclature and messaging standards of interest for Smart

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Figure 7: Key standards and organizations for integration in Smart

As seen in Figure 5, there are a number of overlaps/challenges in industry

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THE ROLE OF INDUSTRY AND GOVERNMENT CONSORTIUMS

Industrial Internet Consortium (IIC)

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Global competition in the manufacturing engineering sector is becoming fiercer,

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