Antonio Suk Keun Cha 
Cofounder/CTO 
ACS Corp. in Korea 
December 2nd, 2014
e-Manufacturing; before and after
e-Manufacturing; before and after
I. Before: Scoping of e-Manufacturing 
Manufacturing is the production of merchandise for use or sale using labor and 
machines, tools, chemical and biological processing, or formulation based on provides 
flexible for increasing quality, reducing cost and shorten delivery for manufacturing 
processes. – Source:Wikipedia 
Q C D F 
Quality Cost Delivery 
Flexible 
Manufacturing business opportunities in El Salvador 
Mission for CEOs
I. Before: Scoping of e-Manufacturing 
“What are your biggest problems with manufacturin”g? 
(multiple responses accepted) 
Poor visibility into plant 
operations 
Inaccurate demand 
forecasting 
Poor communication 
Supply shortfalls 
Poor customer satisfaction 
Don’t know 
Percent of 100 manufacturing companies responding 
38% 
36% 
24% 
18% 
8% 
8% 
Forrester Research, July 2000
Enterprises must insure that data is 
accurate and timely, to support 
collaborative initiatives 
Data Latency and Inaccuracy 
Six common practices that will cause ERP II failure: 
 Manual adjustments to inventory 
 Relying on annual physical inventory 
 Delaying material receipts and issues 
 Ignoring rescheduling and exception messages 
 Production reporting only at the end of the line 
 Using “dummy” sales and/or purchase orders 
Fall Conference 2001 
Direct, Automated 
Information Feeds 
Enterprise 
Applications 
e-Manufacturing 
with Real Time 
Enterprise 
I. Before: Scoping of e-Manufacturing
I. Before: Scoping of e-Manufacturing 
Real time collection of 4M1E (Man,Machine,Material,Method,Energ) and providing 
real time performance measurement for internal optimal decision based on 
production current status, product promised date for customer satisfaction in every 
type of manufacturing enterprises. 
You cannot manage what you can not measure!!! 
Before 
Customer information 
Deliver information 
군산생산감시시스템 (화성) 
BUMPER 
I/P 
Monitoring/Analysis 
Information 
Decision making 
Information 
Real time 4M1E data Integration 
After 
4M1E
I. Before: Scoping of e-Manufacturing 
The Methods of 4M1E integration in real time with International standard 
-Wired sensor networks : Communication Protocols, Process I/O, Sensor I/O 
-Wireless sensor networks: Internet of Things/Machine to Machine(IoT/M2M), RFID/Bar 
Source Items 
Method 
Std. OP 
Lot No. 
Traceability … 
Machine 
Counter 
Run time 
Failure reason 
Material 
Location 
Specification 
WIP level … 
Man 
Start/End 
Failure code 
Not run 
Reasons … 
Energy 
Voltage, current, 
flow, Pressure … 
4M1E 
Device 
Controllers 
Wired Sensor Networks 
RFID 
PLC 
Machine 
e-Manufacturing 
Software 
(POP/MES/ERP) 
Protocols Process I/O Sensor I/O 
PDA 
Mobiles 
Office PCs 
RFID/USN Touch Screen Mobiles 
Wireless Sensor Networks 
Wired IoT/M2M 
Devices 
Sensors 
Relays 
Access 
Point 
Bar code 
Reader 
Touch 
Terminals 
ISO 22400 
ISO JTC 1 
Wireless Sensor Network 
IoT/M2M Device 
Gateway 
code, Touch screen, Mobile devices 
Wired IoT/M2M 
Device 
Production floor 
(POP: Point of Production, MES: Manufacturing Execution System ERP: Enterprise Resource Planning)
9 
• Wired IoT/M2M devices 
- Open embedded Linux based low 
power consumption intelligent devices 
I. Before: Scoping of e-Manufacturing 
• Wireless IoT/M2M devices 
- Low power and small size of IP based 
wireless sensor network 
Installed Installed
• Touch Screen Terminals 
- No IT resource in terminal 
- Low power, good for harsh environment 
- No issue of hacking and IT security 
- Easy to use manual data entry by workers 
10 
: Display big characters & touch 
I. Before: Scoping of e-Manufacturing 
• Managing by moving 
- mobile for production and 
maintenance 
- PDA and smart phone integration
e-Manufacturing; before and after
II. e-Manufacturing deployed by ACS 
• 1,000+ Real time production management system in world wide since 1988 
• International Standard based COTS(Commercial Off The Shelf) approach 
Name ACS(Advanced Consulting Services Co.) 
Business 
consulting service, solution developing 
manufacturing ICT convergence 
Employees 95 
R&D budget 8% of Annual Revenues (as of 2013) 
Core 
Technology 
e-Mfg®, u-Mfg® Auto-configuration® real 
time event driven, M2M/IoT 
Qualified 
Product DABOMⓇ-series 
Central managing by DABOM 
globally distributed manufacturing 
enterprises 
DABOM® means “see-all” in Korean word and a trademark of ACS
II. e-Manufacturing deployed by ACS 
Industrial 
Template 
functions 
Real time event 
based Middleware 
(DABOM-Middleware) 
Manufacturing 
International 
standard 
application 
(ISA S-95 
MESA-11) 
DABOM-MES 
Industrial 
specific 
application 
Wired and 
wireless sensor 
Devices 
(DABOM-Device: 
iTOUCH, iDCU)
Company facts 
- Annual Rev : 10 Million USD 
- No. of Employees : 104 peoples 
- Type of Manufacturing : Electronics Part 
- Type of Products : AC IN/OUT LET , PIN JACK 
Reasons for deployment 
II. e-Manufacturing deployed by ACS 
- Can not see what is current status of production line 
- Impossible to productivity analysis and quality, equipment down history due to manual 
reporting 
- No way to make a decision for delivery due date 
- No way to estimating accuracy production planning 
User Benefits 
- More than 25% increased quality control level 
- Quickly respond for production issue 
- At least 30% reduction cost of record and analysis works 
- Increased customer satisfaction 
- More than 20% increased run time of equipment
Hardware & Network Configuration 
- ERP access 
- ACS DABOM-MES access 
Office PC 
ERP Server 
(H.Q) ACS 
DABOM-MES 
Extrusion machines (27 Unit) 
Device 
Interface 
(4 Unit) 
Press Line 
Device 
Interface 
(6 Unit) 
…… 
Press (12 unit) 
8 Machines 
Manages by 
PDA 
…… 
21machines 
manages 
by PDA 
Extrusion Line 
Touch 
Screen 
Assembly line 
Internet 
II. e-Manufacturing deployed by ACS
Reasons for deployment 
User Benefits 
- Reduced 30% of labor cost 
- 25% of reduced capital investment 
- 10% of increased profit of company 
II. e-Manufacturing deployed by ACS 
Company facts 
- Jeju Local Government operation 
- Annual Rev : 170Million USD (23.1% Market) 
- Type of Manufacturing : Process industry 
- Type of Products : Drink waters 
- Image making Jeju Local Government as clear and trust 
- Needs real time tracking of drink waters 
- Impossible to tracking of labor and production cost
POP/MES Server 
ERP Server 
Wireless Access Point 
Touch Screen Terminals 
Bar code Printer 
Large LCD Display 
PDAs 
PLCs 
II. e-Manufacturing deployed by ACS
Work order plan 
Quality Trend 
II. e-Manufacturing deployed by ACS
II. e-Manufacturing deployed by ACS 
Before After Result 
68% Reduced 32% 
WIP 100% 65% Reduced 35% 
240 Min./ Month 120 Min./Month Reduced 50% 
Item 
Inventory 
Time for Inv. 
Level 
100% 
Leadtime 1.95 Min. 1.05 Min. Reduced 46% 
Inventory 
accuracy 
60% 97% Enhanced 57% 
Short STOP Time 120.85/Month 24.96/Month Reduced 79%
e-Manufacturing; before and after
21 
III. After: Smart Factory and Vision 
• USA: Focused on Global Coordination with 3 D printing 
• Germany: CPPS: Cyber Physical Production System for smart Factory 
• Korea: Smart Factory using ICT 
• 제조, ICT, 서비스 산업의 융합에 따라 제조업의 비중이 다시 높아짐 
Manufacturing 2.0 Industry 4.0 Manufacturing Innovation 3.0
22 
III. After: Smart Factory and Vision 
• Vertical Top down -> Horizontal Internet driven 
• One way -> Bi-direction 
• Wired networks -> Wireless Sensor Network 
• SMART(Seamless, Mobility, Autonomous Configuration, Real-time, Traceability)
③ 
Chungnam Techno Park SaaS based e-Manufacturing Services 
② ② 
① ① 
Green IT 
23 
III. After: Smart Factory and Vision
POP Application 
Dabom®-middleware 
POP Server 
Line 1 
Remarks 
Bar code reader 
Sensors 
Touch Panel 
IDCU 
Hard Wire 
Wireless AP 100Mbps Fast Ethernet 
Production Status Display Production Status Display 
Line 2 
Line 3 
Line 4 
Line 5 
Line 6 
Line 7 
Line 8 
Line 9 
Line 10 
Line 11 
Line 12 
Warehouse 
MES Server & 
Dabom®-MES Application 
Wireless M2M Device 
Wireless bar code reader 
Thin client Touch Terminal 
24 
Implementing production line at Yong-san plant 
III. After: Smart Factory and Vision
User benefits 
III. After: Smart Factory and Vision 
Index Detailed index Y Co. Current Target 
Time for Work order Delivery time for work order 1H 15M 3M 
Time for daily inventory audit 
Time for inventory status 5H Real time Real Time 
Time for inventory status Report 5H 10M 5M 
Time for daily work report generation 
Time for work order 3H 15M 5M 
Time for summary 2H 15M 5M 
Total 16H 55M 18M 
Index Detailed index K Co. Current Target 
Time for daily inventory status Time for inventory status 3H Real time Real time 
Time for daily sales summary 
Time for sales summary Real time Real time Real time 
Time for report 1H Real time Real time 
Audit time 
Closing for logistic 15H 10M 5M 
Time for financial report (5H) - Real time 
Monthly average closing time 10Days 5Days 3일 
Total 
10Days 19 
hours 
5Days 10 
Min 
3 days 5M
e-Manufacturing; before and after
IV. Lessons learned and recommendation 
For Executives of Manufacturing SMEs 
- Mindset of what really means by real time for production resources(4M1E) 
: Bar coder reader can not cover every issues in production 
- Think about TCO (Total cost of ownership) 
: Development cost of 30% and maintenance cost of 70% 
- Think about bottom-up approach with step by step deployment No Top-Down 
For Executives of ICT vendors 
- Need a skill set of 4M1E integration in real time for global consulting services 
- Need Real time event driven middleware functional support for local maintenance 
- Need to train ICT peoples
To El Salvador 
IV. Lessons learned and recommendation 
- Must establish a support organization dedicated for the Government control 
: Look at the case in Korean case (Dr. Kim will help you!) and the Smart 
Factory program 
- Collaboration with global vendors as Korea 
: Development cost of 30% and maintenance cost of 70% 
- Bench-making of global success cases like the SaaS model for Cloud computing 
: Chungnam Techno Park in Korea to be an excellent reference site
Gracias ! 
29

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e-Manufacturing; before and after

  • 1. Antonio Suk Keun Cha Cofounder/CTO ACS Corp. in Korea December 2nd, 2014
  • 4. I. Before: Scoping of e-Manufacturing Manufacturing is the production of merchandise for use or sale using labor and machines, tools, chemical and biological processing, or formulation based on provides flexible for increasing quality, reducing cost and shorten delivery for manufacturing processes. – Source:Wikipedia Q C D F Quality Cost Delivery Flexible Manufacturing business opportunities in El Salvador Mission for CEOs
  • 5. I. Before: Scoping of e-Manufacturing “What are your biggest problems with manufacturin”g? (multiple responses accepted) Poor visibility into plant operations Inaccurate demand forecasting Poor communication Supply shortfalls Poor customer satisfaction Don’t know Percent of 100 manufacturing companies responding 38% 36% 24% 18% 8% 8% Forrester Research, July 2000
  • 6. Enterprises must insure that data is accurate and timely, to support collaborative initiatives Data Latency and Inaccuracy Six common practices that will cause ERP II failure:  Manual adjustments to inventory  Relying on annual physical inventory  Delaying material receipts and issues  Ignoring rescheduling and exception messages  Production reporting only at the end of the line  Using “dummy” sales and/or purchase orders Fall Conference 2001 Direct, Automated Information Feeds Enterprise Applications e-Manufacturing with Real Time Enterprise I. Before: Scoping of e-Manufacturing
  • 7. I. Before: Scoping of e-Manufacturing Real time collection of 4M1E (Man,Machine,Material,Method,Energ) and providing real time performance measurement for internal optimal decision based on production current status, product promised date for customer satisfaction in every type of manufacturing enterprises. You cannot manage what you can not measure!!! Before Customer information Deliver information 군산생산감시시스템 (화성) BUMPER I/P Monitoring/Analysis Information Decision making Information Real time 4M1E data Integration After 4M1E
  • 8. I. Before: Scoping of e-Manufacturing The Methods of 4M1E integration in real time with International standard -Wired sensor networks : Communication Protocols, Process I/O, Sensor I/O -Wireless sensor networks: Internet of Things/Machine to Machine(IoT/M2M), RFID/Bar Source Items Method Std. OP Lot No. Traceability … Machine Counter Run time Failure reason Material Location Specification WIP level … Man Start/End Failure code Not run Reasons … Energy Voltage, current, flow, Pressure … 4M1E Device Controllers Wired Sensor Networks RFID PLC Machine e-Manufacturing Software (POP/MES/ERP) Protocols Process I/O Sensor I/O PDA Mobiles Office PCs RFID/USN Touch Screen Mobiles Wireless Sensor Networks Wired IoT/M2M Devices Sensors Relays Access Point Bar code Reader Touch Terminals ISO 22400 ISO JTC 1 Wireless Sensor Network IoT/M2M Device Gateway code, Touch screen, Mobile devices Wired IoT/M2M Device Production floor (POP: Point of Production, MES: Manufacturing Execution System ERP: Enterprise Resource Planning)
  • 9. 9 • Wired IoT/M2M devices - Open embedded Linux based low power consumption intelligent devices I. Before: Scoping of e-Manufacturing • Wireless IoT/M2M devices - Low power and small size of IP based wireless sensor network Installed Installed
  • 10. • Touch Screen Terminals - No IT resource in terminal - Low power, good for harsh environment - No issue of hacking and IT security - Easy to use manual data entry by workers 10 : Display big characters & touch I. Before: Scoping of e-Manufacturing • Managing by moving - mobile for production and maintenance - PDA and smart phone integration
  • 12. II. e-Manufacturing deployed by ACS • 1,000+ Real time production management system in world wide since 1988 • International Standard based COTS(Commercial Off The Shelf) approach Name ACS(Advanced Consulting Services Co.) Business consulting service, solution developing manufacturing ICT convergence Employees 95 R&D budget 8% of Annual Revenues (as of 2013) Core Technology e-Mfg®, u-Mfg® Auto-configuration® real time event driven, M2M/IoT Qualified Product DABOMⓇ-series Central managing by DABOM globally distributed manufacturing enterprises DABOM® means “see-all” in Korean word and a trademark of ACS
  • 13. II. e-Manufacturing deployed by ACS Industrial Template functions Real time event based Middleware (DABOM-Middleware) Manufacturing International standard application (ISA S-95 MESA-11) DABOM-MES Industrial specific application Wired and wireless sensor Devices (DABOM-Device: iTOUCH, iDCU)
  • 14. Company facts - Annual Rev : 10 Million USD - No. of Employees : 104 peoples - Type of Manufacturing : Electronics Part - Type of Products : AC IN/OUT LET , PIN JACK Reasons for deployment II. e-Manufacturing deployed by ACS - Can not see what is current status of production line - Impossible to productivity analysis and quality, equipment down history due to manual reporting - No way to make a decision for delivery due date - No way to estimating accuracy production planning User Benefits - More than 25% increased quality control level - Quickly respond for production issue - At least 30% reduction cost of record and analysis works - Increased customer satisfaction - More than 20% increased run time of equipment
  • 15. Hardware & Network Configuration - ERP access - ACS DABOM-MES access Office PC ERP Server (H.Q) ACS DABOM-MES Extrusion machines (27 Unit) Device Interface (4 Unit) Press Line Device Interface (6 Unit) …… Press (12 unit) 8 Machines Manages by PDA …… 21machines manages by PDA Extrusion Line Touch Screen Assembly line Internet II. e-Manufacturing deployed by ACS
  • 16. Reasons for deployment User Benefits - Reduced 30% of labor cost - 25% of reduced capital investment - 10% of increased profit of company II. e-Manufacturing deployed by ACS Company facts - Jeju Local Government operation - Annual Rev : 170Million USD (23.1% Market) - Type of Manufacturing : Process industry - Type of Products : Drink waters - Image making Jeju Local Government as clear and trust - Needs real time tracking of drink waters - Impossible to tracking of labor and production cost
  • 17. POP/MES Server ERP Server Wireless Access Point Touch Screen Terminals Bar code Printer Large LCD Display PDAs PLCs II. e-Manufacturing deployed by ACS
  • 18. Work order plan Quality Trend II. e-Manufacturing deployed by ACS
  • 19. II. e-Manufacturing deployed by ACS Before After Result 68% Reduced 32% WIP 100% 65% Reduced 35% 240 Min./ Month 120 Min./Month Reduced 50% Item Inventory Time for Inv. Level 100% Leadtime 1.95 Min. 1.05 Min. Reduced 46% Inventory accuracy 60% 97% Enhanced 57% Short STOP Time 120.85/Month 24.96/Month Reduced 79%
  • 21. 21 III. After: Smart Factory and Vision • USA: Focused on Global Coordination with 3 D printing • Germany: CPPS: Cyber Physical Production System for smart Factory • Korea: Smart Factory using ICT • 제조, ICT, 서비스 산업의 융합에 따라 제조업의 비중이 다시 높아짐 Manufacturing 2.0 Industry 4.0 Manufacturing Innovation 3.0
  • 22. 22 III. After: Smart Factory and Vision • Vertical Top down -> Horizontal Internet driven • One way -> Bi-direction • Wired networks -> Wireless Sensor Network • SMART(Seamless, Mobility, Autonomous Configuration, Real-time, Traceability)
  • 23. ③ Chungnam Techno Park SaaS based e-Manufacturing Services ② ② ① ① Green IT 23 III. After: Smart Factory and Vision
  • 24. POP Application Dabom®-middleware POP Server Line 1 Remarks Bar code reader Sensors Touch Panel IDCU Hard Wire Wireless AP 100Mbps Fast Ethernet Production Status Display Production Status Display Line 2 Line 3 Line 4 Line 5 Line 6 Line 7 Line 8 Line 9 Line 10 Line 11 Line 12 Warehouse MES Server & Dabom®-MES Application Wireless M2M Device Wireless bar code reader Thin client Touch Terminal 24 Implementing production line at Yong-san plant III. After: Smart Factory and Vision
  • 25. User benefits III. After: Smart Factory and Vision Index Detailed index Y Co. Current Target Time for Work order Delivery time for work order 1H 15M 3M Time for daily inventory audit Time for inventory status 5H Real time Real Time Time for inventory status Report 5H 10M 5M Time for daily work report generation Time for work order 3H 15M 5M Time for summary 2H 15M 5M Total 16H 55M 18M Index Detailed index K Co. Current Target Time for daily inventory status Time for inventory status 3H Real time Real time Time for daily sales summary Time for sales summary Real time Real time Real time Time for report 1H Real time Real time Audit time Closing for logistic 15H 10M 5M Time for financial report (5H) - Real time Monthly average closing time 10Days 5Days 3일 Total 10Days 19 hours 5Days 10 Min 3 days 5M
  • 27. IV. Lessons learned and recommendation For Executives of Manufacturing SMEs - Mindset of what really means by real time for production resources(4M1E) : Bar coder reader can not cover every issues in production - Think about TCO (Total cost of ownership) : Development cost of 30% and maintenance cost of 70% - Think about bottom-up approach with step by step deployment No Top-Down For Executives of ICT vendors - Need a skill set of 4M1E integration in real time for global consulting services - Need Real time event driven middleware functional support for local maintenance - Need to train ICT peoples
  • 28. To El Salvador IV. Lessons learned and recommendation - Must establish a support organization dedicated for the Government control : Look at the case in Korean case (Dr. Kim will help you!) and the Smart Factory program - Collaboration with global vendors as Korea : Development cost of 30% and maintenance cost of 70% - Bench-making of global success cases like the SaaS model for Cloud computing : Chungnam Techno Park in Korea to be an excellent reference site

Editor's Notes

  • #13: 우선 시작하기 전에 저희 회사에 대하여 설명 드리겠습니다.. 1988년에 설립하였으니 올해 26년 되는 기업이구요.. 설립 후 현재까지 제조업에 필요한 실시간 생산정보화 즉, 전세게 산재된 공장을 실시간으로 운전상황을 눈으로 볼 수 있도록 하는 솔루션 DABOM을 공급하고 있으면 현재까지 1,000 프로젝트를 성공적으로 수행하였습니다. DABOM은 대표 솔루션으로 다보여준다는 순수한 우리말을 의미하며 상표 등록했습니다..본 제품은 국제 표준기반으로 상용화된 정보기술을 열악한 환경에 사용할 수 있는 상용화 기성품 COTS (Commercial Off The Shelf) 기술을 적용한 기업이죠.. 매출의 8% 이상을 연구개발 분야에 투자하고 있으며, 산업부 및 미래부 등 정부기관으로부터 신기술, 신제품, 세계일류상품, 굿 소프트웨어 및 산업용 소프트웨어 품질 인증을 국내 최초를 받기도 했습니다.