1. http://www.imagine-futurefactory.eu
Towards Adopting Dynamic Manufacturing Networks for Future
Manufacturing:
Benefits and Risks of the IMAGINE DMN end-to-end Management Methodology
Ourania Markaki
Dimitrios Panopoulos
Panagiotis Kokkinakos
Sotirios Koussouris
Dimitrios Askounis
National Technical University of Athens
WETICE 2013, MADYNE Track - Hammamet, Tunisia
18 June, 2013

2. WETICE 2013, MADYNE Track - Hammamet, Tunisia 2
Today’s manufacturing landscape….
3 July 2013
Challenges
distributed
environment
fierce global
competition
cost/time
compression
dramatic &
unanticipated
changes in
demand
growing
regulatory
requirements
complexity

3. “…in order to move from cost cutting to knowledge-based value adding
manufacturing and to achieve sustainable and competitive growth, the
manufacturing industry has to carefully re-evaluate and revamp existing
approaches for manufacturing”
Factories of the Future Strategic Roadmap
• Streamline their processes
• Collaborate closer with partners
• Exploit spontaneous business opportunities
WETICE 2013, MADYNE Track - Hammamet, Tunisia 3
Manufacturing enterprises need to…
3 July 2013
Formation of Dynamic Manufacturing Networks
= dynamic alliances among manufacturing entities for gaining
mutual benefits

4. WETICE 2013, MADYNE Track - Hammamet, Tunisia 4
The Facts: Business Incentives in Numbers
3 July 2013
Metric Improvement up to
Total Profitability  30%
Total operational & manufacturing cost  25%
Cost due to quality issues  20%
Total productivity  30%
Financial exposure of partners  25%
Required investments by partners  20%
Product development lead time  30%
Product development cost  50%
Time for contractual formalization  50%
Time-to-market  25%
Manufacturing lead time  20%
Co-operation processes efficiency  30%
Product cycle times  50%
Life cycle costs  30%
Maintenance costs  30%

5. • Each member of the network produces one or more product components that are
to be assembled into final products under the control of a joint production
schedule, which is monitored collectively, while products are dynamically
reconfigured on demand to meet evolving requirements.
• DMNs could be considered as typical manufacturing or supply chain networks but
with an explicit hallmark which is their dynamic nature, namely the fact that they
are designed in a way that their structure, members, operation and interactions
may change rapidly and often, depending on the changing market needs.
WETICE 2013, MADYNE Track - Hammamet, Tunisia 5
What is a DMN?
3 July 2013
… a temporal or permanent coalition, comprising production systems of
geographically dispersed SMEs and/or OEMs that collaborate in a shared
value-chain to conduct joint manufacturing.

6. 3 July 2013 6
DMN Benefits
TimeSavings
• Time-to-market reduction
• Optimized design of end
products & individual
components
• Collaborative product
development
• Network-optimized production
planning & scheduling
• Fast selection of suppliers for
each project/product &
network setup
• Instant reconfiguration of the
suppliers’ network
• Automated communication &
data exchange with
suppliers/clients & partners
• Increased visibility and access
speed to
network/manufacturing data
CostReduction
• Cost-optimised selection of
suppliers
• Cutting down inventory costs
• Cost-optimised management of
resources
• Reducing marketing expenses
Operations’Enhancement
• Focus on core competences
• Product/Services co-creation
• Cost/risk sharing with partners
• Monitoring of product
development & manufacturing
operations
• Reduction of design &
production flaws
• Optimal selection of suppliers
& collaborators
• Improved quality throughout
the complete product lifecycle
• Know-how exchange, shared
knowledge management &
access to new technologies
• Access to new
customers/markets
• Integrate diverse enterprise IT
systems for better, holistic &
efficient production
WETICE 2013, MADYNE Track - Hammamet, Tunisia

7. 3 July 2013 7
DMN Risks
Risks
• Information security and trust
• Poor configuration, design and management of the DMN
• DMN dissolution
• Transition issues
• Competitive threats
• Loss of DMN/ partners’ reputation
WETICE 2013, MADYNE Track - Hammamet, Tunisia

8. WETICE 2013, MADYNE Track - Hammamet, Tunisia 8
IMAGINE DMN Lifecycle
3 July 2013

9. IMAGINE DMN Blueprint Model
3 July 2013
Partner BP
 business and technical information to facilitate
partners’ selection by a specific contractor.
Static metadata:
- company background
- products/ services
- capabilities/ skills
- processes
- new potential
- qualifications
- local/global SLAs
Dynamic metadata :
- current mean delivery /
production times
- available stock
Product BP
 information on equipment, human resources
and materials necessary for producing a
standard or configurable product.
Quality Assurance BP
 real-time data for operations analytics to
optimise manufacturing networks.
End2end Process BP
 spans all customer interactions
manufacturing operations, production lines,
and physical material transactions.
- product definition information:
what is needed to make a product
- product capability/capacity information:
what resources are available to
use for production
- product schedule information
what to make - which resources to
use-when
- production performance information
what was produced - what
resources were consumed
Metrics of:
- product (integrity, conformance to standards/ specifications,
cost),
- process (process parameters, documentation, maturity,
security level),
- partners (reputation, certification, organizational and logistics
capabilities, IT systems efficiency) and
- network quality (partner interoperability, network complexity,
environmental requirements, capacity utilization)
WETICE 2013, MADYNE Track - Hammamet, Tunisia

10. • Fast selection of suppliers for each project/product and network setup: the DMN
platform identifies and proposes straight away the optimum set of suppliers for the given circumstances.
• Optimized design of end products and individual components: designers of all parties can
work simultaneously on the design of the product, its components and their interactions.
• Collaborative product development: DMN partners collaborate on the product’s operational and technical
specifications.
• Network-optimized production planning and scheduling: DMN partners’ planning and
scheduling processes are synchronized and streamlined.
• Time-to-market reduction: new product lines can reach the market faster.
• Instant reconfiguration of the suppliers’ network: reconfiguration of the whole production plan by
adding new suppliers or by assigning more jobs to the existing ones.
• Automated communication and data exchange with suppliers/clients and partners:
the DMN platform automates information exchange, reducing thus mistakes that cause production flaws and delays.
• Increased visibility and access speed to network/manufacturing data: collected
production and logistics related data enable the rapid generation of reports, and accelerate any reconfiguration decision.
WETICE 2013, MADYNE Track - Hammamet, Tunisia 10
DMN Benefits: Time Savings
3 July 2013

11. • Cost-optimized selection of suppliers: the DMN platform indicates the set of suppliers who
can provide the required components in time and at minimum cost.
• Cutting down inventory costs: individual suppliers’ manufacturing processes are aligned,
reducing the required stock and minimizing thereby inventory costs.
• Cost-optimized management of resources: accurate and timely information shared
within the DMN allows the optimal and dynamic allocation of the available resources, so as to meet
demand and performance requirements.
• Reducing marketing expenses: availability of suppliers’ competencies and capacity
information in a structured way through the DMN Blueprint Model allows cutting down expenses for B2B
marketing.
WETICE 2013, MADYNE Track - Hammamet, Tunisia 11
DMN Benefits: Cost Reduction
3 July 2013

12. • Focusing on core competences: DMN partnerships are created based on each partner’s
expertise; therefore DMN members invest in their core competencies and develop advanced skills and
capabilities.
• Optimal selection of suppliers and collaborators: partner selection, based on core
competencies and actual capability to deliver specific results in more successful collaborations.
• Product/services co-creation: the DMN environment facilitates the collaboration and
coordination of different parties in a manufacturing process.
• Reduction of design and production flaws: these are decreased thanks to the enhanced
collaboration among engineers achieved and an early warning system.
• Monitoring of product development and manufacturing operations: alarms
are triggered in case a task/operation is not performing as planned, enabling efficient management and
alternative solutions’ exploitation.
WETICE 2013, MADYNE Track - Hammamet, Tunisia 12
DMN Benefits: Operations’ Enhancement (1/2)
3 July 2013

13. • Improved quality throughout the complete product lifecycle: continuous KPIs
monitoring and application of SLAs result in enhanced product and processes’ quality.
• Cost/risk sharing with collaborating partners: in DMNs most costs and risks are shared
among all the partners involved, bringing thereby a crucial change to usual way projects are carried out.
• Know-how exchange, shared knowledge management and access to new
technologies: close collaboration within a DMN allows knowledge exchange on products and
technological advancements.
• Access to new customers/markets: the wide range of sectors/fields covered in the DMN
allows each enterprise to expand its customers’ base.
• Integrating diverse enterprise IT systems for better, holistic and efficient
production: the DMN platform interconnects enterprise software with shop floor systems.
WETICE 2013, MADYNE Track - Hammamet, Tunisia 13
DMN Benefits: Operations’ Enhancement (2/2)
3 July 2013

14. • Information security and trust
! unwanted and malicious attacks and disclosure of corporate practices or other critical
importance data
- security mechanisms defining different access rights, contractual agreements on
information confidentiality
• Poor configuration, design and management of the DMN
! non-valid or deficient information for partner searches, negotiations and for coordinating
the complex grid of DMN inter-relationships
- accurate information on the actual manufacturing and delivery capacity of each DMN
member and global visibility across the whole network
• DMN dissolution
! withdrawal of a key supplier/manufacturer
- contracts to legally bind DMN members not to be able to waive their DMN responsibilities
and obligations at will
WETICE 2013, MADYNE Track - Hammamet, Tunisia 14
DMN Risks & mitigation strategies (1/2)
3 July 2013

15. • Transition issues
! resistance to change, modifications to procedures and IT systems
- set of adapters interconnecting the IT systems of all DMN members to the DMN
platform/ BP Model facilitating information exchange
• Competitive threats
! R&D knowledge misuse after partner withdrawal, DMN dissolution
- legal agreements on the exploitation of IP, foreground and background knowledge of
partners and knowledge generated during the operation of the DMN
• Loss of DMN/ partners’ reputation:
! inability of a partner to deliver as planned
- appropriate partner selection, early detection of deviations in the production plan
WETICE 2013, MADYNE Track - Hammamet, Tunisia 15
DMN Risks & mitigation strategies (2/2)
3 July 2013

16. • The identification of the associated benefits and risks is the first step for attracting
organizations and enterprises into embracing the vision of DMNs.
• The IMAGINE Methodology (DMN Lifecycle and BP Model) ensures interoperability and
coordination across the network, by providing visibility of and real-time access to
aggregate data.
• Work in progress includes:
– Development of real-life cases in various manufacturing domains
– Providing hard facts on the ROI of establishing or participating in DMNs
– Verification of identified benefits/risks and further optimization of the IMAGINE DMN
Methodology
• 5 Living Labs:
– Automotive Industry (Centro Ricerche FIAT S.C.p.A.)
– Aerospace and Defense Industry (European Aeronautic Defense and Space Company - EADS
,France SAS)
– Furniture industry (Asociacion de Investigacion y Desarrollo en la Industria del Mueble y
Afines, AIDIMA)
– Engineering sector (The University of Warwick)
– Domain-agnostic, multi-site single factory context (Fraunhofer Institute for Manufacturing
Engineering and Automation-IPA)
WETICE 2013, MADYNE Track - Hammamet, Tunisia 16
Conclusions & Next Steps
3 July 2013

17. http://www.imagine-futurefactory.eu info@imagine-futurefactory.eu
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WETICE 2013, MADYNE Track - Hammamet, Tunisia