MOVING THE INNOVATION

INDUSTRIES INTO THE FAST FUTURE

ACCELERATING CHANGE FOR THE MANUFACTURING
ENTERPRISE TO BE GROWTH READY AND GLOBAL READY
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
2
The Innovation Industries have unique requirements as they face the realities of the new Fast Future. Leadership
will be marked by speed delivering custom products at better quality to serve local demand globally faster than the
competition. Faster at quality means higher profits and market share, which are the determining factors for leadership.
The Fast Future
is here now.
By creating an
infrastructure for rapid
change at high quality,
aspiring manufacturing
leaders can be ready.
Standardize
Establish a unified platform enabling centrally
authored manufacturing process master data,
with guidelines for local variation
Connect
Establish a common communication foundation
on which to operate seamlessly as a global
virtual factory
Control
Manufacture products as designed, with
variation captured to detect and rapidly
contain defects
The new infrastructure requirements proposed in this eBook are consistent with the forward
thinking of leading analysts, and fulfill their future vision.
EXECUTIVE SUMMARY
INNOVATION IN THE FAST FUTURE EQUALS RAPID CHANGE
AT HIGH QUALITY
2
1
4
2 5
3
6
Perfect
Support an intentional global continuous
process improvement network
Simplify
Create an intuitive system thats easy
to use, increasing adoption across all
levels and backgrounds of user, and
fostering collaboration
Accelerate
Leverage all aspects of the new
platform to accelerate the delivery
of quality products to market and
relentlessly improve them
Whether manufacturing enterprises are just emerging with new
innovations, or they are established global leaders, the foundation to
be Growth Ready and Global Ready are the same: preparedness
for rapid change in current plants, and orchestration of manufacturing
across a global plant network.
Analysts agree, the infrastructure required in this new landscape
requires high agility with maintained control, and deep intelligence
served up to constantly improve. The new infrastructure for speed in
highly innovative industries must support 6 key functions:
3
High Upper-middle Lower-middle Low
HIGHLY INNOVATIVE, GROWTH-ORIENTED MANUFACTURING ENTERPRISES
HAVE UNIQUE REQUIREMENTS TO CAPITALIZE ON EMERGING MARKET
OPPORTUNITIES AND THE CHANGING GLOBAL LANDSCAPE
McKinsey identifies two categories of innovation industries (see Table 1).
Common among the innovation groups are:
GROUP INDUSTRY
R&D
INTENSITY
LABOR
INTENSITY
CAPITAL
INTENSITY
ENERGY
INTENSITY
TRADE
INTENSITY
VALUE
DENSITY
Global innovation
for local
markets
(Innovation
Industries with local
customization)
Chemicals
Motor Vehicles, trailers, parts
Other transport equipment
Electrical Machinery
Machinery, equipment, appliances
Regional
processing
Rubber and plastics products
Fabricated metal products
Food, beverage, and tobacco
Printing and publishing
Energy/
resource-
intensive
commodities
Wood products
Refned petroleum, coke, nuclear
Paper and pulp
Mineral-based products
Basic metals
Global technologies/
innovators
(Global Innovation
Industries)
Computers and offce machinery
Semiconductors and electronics
Medical, precision, and optical
Labor-intensive
tradables
Textiles, apparel, leather
Furniture, jewelry, toys, other
g
Complex products or processes
g
High-value products
g
Rapid innovation cycles
g
Detailed traceability requirements
g
Regulatory requirements
g
Complex genealogy
g
Massive documentation requirements
The distinction between these groups has historically been the customization
requirements global technology innovators have produced technology used
universally, whereas global innovators for local markets have had significant
customization requirements to serve local customer demands. However, these lines
are blurring as we move into a new age of global, mass customization, and the power
of customer demand and maturing customer expectations span emerging economies.
The requirements of these two groups will become common universally, which
high-growth manufacturing enterprises whether emerging or global will need to
anticipate to remain competitive.
28%
22%
9%
7%
% of global manufacturing value added
34%
The ability to innovate
change rapidly at high
quality will become
the new differentiator
for market leadership.
TABLE 1: MANUFACTURING IS DIVERSE: WE IDENTIFY FIVE BROAD GROUPS WITH VERY DIFFERENT CHARACTERISTICS AND REQUIREMENTS.
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
4
INNOVATION INDUSTRIES NEED TO BE READY TO DELIVER AT THE
SPEED OF DEMAND.
44
Delivering
on new market
demands globally
Customizing
products to meet
local preferences
Leveraging
new efficiencies
from changing
landscape of low-
cost production
Answering
the increasing
complexity,
uncertainty, and risk
of global markets
Using
new technology
and intelligence to
produce faster and
at higher quality
The reality is that the enterprise that can meet these challenges the FASTEST will win. If the manufacturing enterprise
can maintain a high quality level, producing a product faster will result in higher profits. Shorter time to market affects
the top line through earlier market entry, allowing more sales at higher prices. Shorter time to market affects the
bottom line through shorter duration of resource usage, and less R&D costs. The results are higher margin and more
investment capital to put back into the innovation cycle.
In fact, as product life cycles shorten, the impact of time to market will have more influence on profit than costs.
a a a a a
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DISCREPANCY
LOSS OF
PROFIT
30%
5%
6 months
extension of
development
time
50% increase of
development
costs
PRODUCT LIFETIME CYCLE: 5 YEARS
In a short product lifetime cycle
development time has more
influence on profit than costs.
The new market imperatives include:
5
5
The top industry analysts agree, in order for
innovation industries to meet the new era of
Global-Ready, Growth-Ready manufacturing,
a deliberate investment in a connected
infrastructure rooted in the latest technology
approaches is a competitive imperative.
Implicit challenges to these growth strategies center on
meeting shorter customer lead times, shorter innovation
cycles, and more complex supply chains. A growing number
of Gartner clients report challenges with orchestrating the
broad number of software applications they need to connect
to streamline the design-to-manufacturing process on a global
scale. Here are the main challenges:
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
5
The new era of manufacturing
will be marked by highly agile,
networked enterprises that use
information and analytics as
skillfully as they employ talent and
machinery to deliver products and
services to diverse global markets.
McKinsey & Company,
Manufacturing the Future
ANALYSTS AGREE:
THE FAST FUTURE REQUIRES A NEW INFRASTRUCTURE.
5
BOMs
conversions of eBOMs to mBOMs.
Manufacturing
processes need to be designed and validated.
Factory Layouts
(including tooling and work cell setups) need to be designed and validated.
Routings
need to be defined and adapted to local operations.
Tier Suppliers
and contract manufacturing data sources need to be integrated.
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
6
GARTNER HAS IDENTIFIED A FRAMEWORK FOR THIS NEW
INFRASTRUCTURE MODEL-BASED MANUFACTURING (MBM) AND
MANUFACTURING PROCESS MANAGEMENT (MPM) MODELS
As Gartner states, MBM is used to create and consume manufacturing content, and MPM governs the data and
continuously improves its relevance. They complement each other, and create a robust platform or framework to
orchestrate the virtual design with the physical manufacturing execution design.
The concepts of MPM and MBM replace conventional thinking about supporting new product introduction through
interfaces between ERP, MES, and PLM. The chasm between product design, business transactions and
production cannot be bridged through interfaces.
We will come back to this model after we present the requirements for the new infrastructure.
Execute Processes
to Build Products
(Activity-based and
Transaction)
Design Products, Processes
and Factories (Conceptual)
DEMAND
PRODUCTION
MANAGEMENT
PRODUCT
MANAGEMENT
PROCESS
CONTROL AND
AUTOMATION
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CREATE AND USE
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MPM
GOVERN DATA AND
MANUFACTURING
GOVERNANCE
FUNCTIONAL DELINEATION OF MBM AND MPM
Gartner Research Note. Innovation Insight: Manufacturers Need MPM and MBM to Innovate Digitally Enabled Design Through Production,
published: 30 September 2013.
7
SO WHY ARE TODAYS SYSTEMS
PROVING INADEQUATE FOR THE
FAST FUTURE?
The reality is that the challenges facing global and high-growth innovation
manufacturing enterprises are not trivial.
g
A complex web of multiple bills of materials (BOMs), unique configurations
g
The complexity of converting the eBOM with the mBOM, and ensuring collaborative design
for manufacturability
g
Massive proliferation of SKUs, with customer-centric personalization
g
Frequent design changes over life of product
g
An expanding network of materials and component suppliers
g
Need for Production Quality data
g
Shortening product lifecycles
g
Effectivity date and version control of changes to WIP are critical
The solutions for the enterprise that wins in this environment require a fundamentally
new approach, with new technology architected to meet these demands.
7
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
8
THE 6 KEY
INFRASTRUCTURE
REQUIREMENTS
FOR THE FAST FUTURE
Standardize
Establish a unified platform enabling
centrally authored manufacturing
process master data, with guidelines
for local variation
1
Perfect
Support an intentional global
continuous process improvement
network
4
Connect
Establish a common
communication foundation on
which to operate seamlessly as
a global virtual factory
2
Simplify
Create an intuitive system thats
easy to use, increasing adoption
across all levels and backgrounds
of user, and fostering collaboration
5
Control
Manufacture products as
designed, with variation captured
to detect and rapidly contain
defects
3
Accelerate
Leverage all aspects of the new
platform to accelerate the delivery
of quality products to market and
relentlessly improve them
6
With those requirements, how do we architect a growth ready and global ready
infrastructure for speed at high quality, in an environment where change is constant?
The 6 key functions required are:
9
STANDARDIZE.
AUTHOR GLOBAL MASTER DATA AND DEFINE STANDARDS
FOR LOCAL VARIATION.
1
STANDARDIZATION IS A NECESSARY REQUIREMENT for effective product launches and
is foundational for growth, control, and visibility and ultimately speed. Standards are set from central definitions, yet
must provide guidelines for local variation both in language, process, and reporting. The key parts of a growth-ready,
global-ready infrastructure include:
g
Central Authoring. The ability
to centrally author design data,
process data, global data
standards, and local customization
guidelines is critical for a controlled
global manufacturing enterprise.
g
Standard Representations of
BOMs. From the eBOM to the
mBOM, standards must support
translation, traceability, and
documentation of local variation for
complete visibility and genealogy.
g
Global Standardization of Variation.
It seems like an oxymoron, but
variation must be standardized.
The types of variation allowed,
how that variation is to be
documented, and how exceptions
are reported must follow the
global standards to control product
quality, and to support accurate
costing through standard tracking.
g
Global Data Standards. Standard
terminology such as loss reasons,
defect codes, etc., must be used
throughout the global enterprise to
gain intelligence through standard
reporting. Intelligence requires a
standard data set for comparison
and trending.
g
Local Language. Local language
and time zones must be must
be supported, with appropriate
traceability to global standards.
The Central Data Hub is the single
source of truth for the enterprise,
housing master product and process
data that is centrally authored and
approved. As-built records are
completely traceable across the
enterprise.
Standardization with Local
Variation requires a central
data hub that is the single
source of truth, and from
which all definitions are
distributed.
9
KEY MASTER DATA SOURCE
Source of Truth for Design and Production
Global
HQ
Regional
HQ
1a
Central Authoring of Master Data
Create Standards, Define Allowable Customizations
Localize Using Global Standards
Use Local Language and Local Process Variations
1b
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
10 10
CONNECT.
BUILD THE GLOBALLY ORCHESTRATED PLANT NETWORK.
2
WHAT CONSTITUTES CONNECTION? The ability to send and receive data in real time? We have
that we live in a globally connected world. The question is more complex for a globally orchestrated plant network.
Connected for the new infrastructure model requires:
Connection to the Central
Data Hub, the system of record for
all design and process data that
controls manufacturing operations
Systems that Connect and
Synchronize Data across the entire
global organization laying the
foundation for standardization,
visibility, performance improvement,
and global efficiency and
optimization
Connection Requires the Translation
of various data structures into
universally usable records.
Definitions must be distributed
in complete packages with all
dependent information
Ultimately a connected
infrastructure breaks down
silos across the organization,
creating a collaborative,
increasingly engaged global
enterprise from Process
Design to Production to
Quality Engineering to
Aftermarket.
KEY MASTER DATA SOURCE
Source of Truth for Design and Production
Regional
HQ
Global
HQ
2a
Central Data Hub Master design,
Product and process data
Synchronize Globally 2b
11 11
CONTROL.
RELIABLE PRODUCTION AGAINST AS-DESIGNED RECORD.
3
QUALITY REQUIRES CONTROL OVER THE ENTIRE PRODUCTION PROCESS
TO ENSURE THAT THE END PRODUCT IS BUILT AS DESIGNED.
Control is the heart of any manufacturing system, and ensures:
g
Control of the 5Ms
Man the right operator with the
right training is performing correct
function.
Machine the right machines
with the right calibration and
maintenance is being used for the
production process.
Material the right raw materials,
components, and assemblies.
Method the right process is being
applied in production.
Measure the right amounts of
material are being used in the
production of the product.
g
Quality testing and inspection are
built into the control process.
g
Global Track and Trace Control
over all materials and their use in
the production process is required
for accurate track and trace.
g
Through the control process,
the as-built record is created,
with a full audit trail to support
containment of defects.
g
Monitoring through global reports
and dashboards to identify
variation and defects must be built
into the control systems.
g
Alerting on quality events both
locally and globally provides
control and containment, and
allows the next step in process
improvement.
Control of the manufacturing
process is fundamental to
quality. It ensures products
are built as designed, and
supports track and trace and
auditing for containment and
regulatory requirements.
KEY MASTER DATA SOURCE
Source of Truth for Design and Production
Regional
HQ
Global
HQ
Control 3
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
12
PERFECT.
SUPPORT AN INTENTIONAL CONTINUOUS PROCESS
IMPROVEMENT NETWORK WITH RAPID GLOBAL
CHANGE MANAGEMENT.
4
CONTINUOUS PROCESS IMPROVEMENT is supported through rapid global change management
synchronized with control to act on detected problems. When improvements are made, the approved change is made
in 1 place, and synchronized across the global plant network.
The continuous cycle of process improvement is a globally synchronized effort. It requires the
infrastructure laid out in steps 1-3 to orchestrate rapid change through the global plant network.
12
HQ
Improve 4b
Learn locally 4a
Synchronize 4c
KEY MASTER DATA SOURCE
Source of Truth for Design and Production
13 13
SIMPLIFY.
SYSTEMS MUST BE INHERENTLY USABLE BY THE
BUSINESS, AND ALLOW FOR USER-DRIVEN CHANGE.
5
SIMPLIFY MEANS REDUCING THE OPPORTUNITY FOR ERRORS, AND
ALLOWING USER-DRIVEN CHANGE TO ACCELERATE DEPLOYMENT AND
IMPROVEMENT.
g
Intuitive Interfaces From design to process deployment to operator instructions, interfaces must be easy to use
and easy to understand.
g
Right Information at the Right Time means less confusion and clear direction. Only the required screens and
information are presented to the user based on their need.
g
Single Portal to Navigate the System means less time searching for the right screens.

Simplification of the system use allows the creation of enterprise-wide Centers of Excellence,
casting a wider net for users to collaborate within the same system and drive improvements.
IMPLEMENT CHANGE
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
14
ACCELERATE.
THE OUTCOME OF EXERCISING THE INFRASTRUCTURE
IS THE ABILITY TO DELIVER QUALITY AT THE SPEED
OF DEMAND.
6
ISOLATED SYSTEMS ARE COMPETITIVE DEATH SLOW AND ERROR PRONE.
The infrastructure for the agile manufacturer to keep up with the speed of demand is a single, unified system supporting
the unique needs of the production environment, the complexity of the supply chain, and the constant change, both
in customization of existing products and the shortening life cycle of new products. When it comes to manufacturing
execution, one system is essential, as well as the seamless interaction with ERP and PLM systems.
Acceleration a single global system used by the business at all levels means FAST. Fast
customization, fast improvements, and fast introduction and ramp up of new products. Rapid
Change at High Quality to Innovate in the Fast Future.
14
KEY MASTER DATA SOURCE
Source of Truth for Design and Production
Regional
HQ
Global
HQ
15
ONE
PLATFORM
15
15
THE INFRASTRUCTURE PROPOSED IS NEARLY PERFECTLY ALIGNED
WITH THE GARTNER FRAMEWORKS FOR MBM AND MPM.
ACTIVITIES MPM MBM 6 STEPS
Validate
design for
manufactur-
ability
Shares the right versions of
designs to manufacture
Validates that designs can be manufactured
and assembled
Supports manufacturing execution through
reference to prevalidated production steps
a Connect,
Standardize,
Control
Equipment/
work cell
setup
Checks the right work
call configurations for the
appropriate product variants
Validates work cell confirguations
Provides guided procedures for work cell
activites and equipment management
aControl
Conversion
of eBOM to
mBOM
Manages assocation of design
BOMs and master recipes to
production BOMs and site
recipes
Creates routings, work instructions,
and localized BOM views/structures
and site recipes
a Connect Global
Process Data
Management
Customer
configuration
management/
acceptance
Customer needs associated
with BOM, recipe and product
process definitions
Quality assurance and quality control
against multiple market-specific BOM
and recipe variants
aStandardize
Engineering
changes
Recorded and distributed Executed aPerfect
Quality
checks
Stage gate Stage gate, at-line or in-process
inspection based on predetermined
variability identified during model
development
aControl
Cost
management
Tracking against cost
estimates
Predictive product costing + Standardize
Data capture Repository for manufacturing-
related content
Executed against work instructions/
electronic work instructions (EWIs) and
predefined processes and /or routings
aControl
Data/
information
time horizon
Offline and batch RealTime and transactional aConnect
Metrics Control data and process upfront
to determine handoffs across
entire stream of idea to delivery
or concept to execution
Design, predict and execute the model
that is developed to support the detailed
execution of the processes
a Standardize,
Perfect
15
MOVING THE INNOVATION INDUSTRIES INTO THE FAST FUTURE
16
16
16
16
The new global manufacturing infrastructure requirements laid out in this eBook prepare todays innovation industries
for the Fast Future. Rapid change, centrally authored and controlled, ready for local customization, and continually
perfected, is the recipe for growth for emerging companies, and a requirement for continued leadership of global
manufacturing enterprises.
The foundation to be Growth Ready and Global Ready are the same: preparedness for rapid change in current
plants, and orchestration of quality across a global plant network. Aligned with the thinking of leading analysts, the
infrastructure required in this new landscape requires high agility with maintained control, and deep intelligence served
up to constantly improve. Six key requirements emerge:
Standardize
Establish a unified platform enabling centrally authored manufacturing process master data, with guidelines
for local variation
Connect
Establish a common communication foundation on which to operate seamlessly as a global virtual factory
Control
Manufacture products as designed, with variation captured to detect and rapidly contain defects
Perfect
Support an intentional global continuous process improvement network
Simplify
Create an intuitive system thats easy to use, increasing adoption across all levels and backgrounds of user, and
fostering collaboration
Accelerate
Leverage all aspects of the new platform to accelerate the delivery of quality products to market and relentlessly
improve them
The Innovation Industries have unique requirements as they face the realities of the new Fast Future. Leadership
will be marked by speed delivering custom products at better quality to serve local demand globally faster than the
competition. Faster at quality means higher profits and market share, which are the determining factors for leadership.
The Fast Future is here now. By creating an infrastructure for rapid change at high quality,
aspiring manufacturing leaders can be ready.
INNOVATION IN THE FAST FUTURE REQUIRES AN INFRASTRUCTURE FOR
RAPID CHANGE AT HIGH QUALITY. THE NEW MANUFACTURING ENTERPRISE
MUST BE READY.
CAMSTAR SYSTEMS INC.
13024 BALLANTYNE CORPORATE PLACE
SUITE 300
CHARLOTTE, NC 28277
PH. 1.800.588.0030
CAMSTAR.COM
About Camstar Systems, Inc.
Camstar is a leading innovator of software solutions that advance product quality in the
manufacturing industry, enabling Brand Owners, Manufacturers and Suppliers to produce
the highest quality products through Global Supply Networks. Camstars cloud-based and
on-premise solutions provide Manufacturing Execution, Supply Chain Visibility and Intelligence,
and Quality Management and Collaboration. For nearly 30 years, Camstar has served
hundreds of satisfied customers worldwide.