ARC REFERENCE SHEET

C O L L A B O R AT I V E M A N U FA C T U R I N G S E R I E S

Collaborative Manufacturing Management

CO N T E M P O R A RY M A N U FA C T U R I N G CO N C E P T S , T E R M I N O L O G Y, A N D A R C H I T E C T U R E

OVERVIEW
A holistic view of manufacturing, Collaborative Manufacturing Management (CMM) provides a means for thinking about all of the complex interactions, applications, and processes that manufacturing entails. ARC is unique in depicting the globe and three intersecting axes which are the heart of the CMM Model. CMM also positions an enterprises plants as nodes in a value network. ARC defines CMM as the practice of managing for best performance by controlling key boundary-crossing business and manufacturing processes of a manufacturing enterprise. CMM leverages new technologies to build robust relationships with trading partners. Its emphasis on Business Process Management (BPM) leads to improved operational and competitive performance. CMM knits together internal manufacturing and business processes, and connects them seamlessly and in synchrony with external business processes of customers and strategic partners. Recognizing that todays manufacturer needs to operate on information in real time, CMM provides a holistic approach to manufacturing that is equally well-suited to global multinational companies and small, local operations, as well as process, discrete, or hybrid production models. This does not mean that CMM is a one-size-fits-all solution far from it. CMM recognizes that each manufacturing situation is unique and depends on such factors as industry, size, manufacturing technique, degree of verticalization, consumer or industrial customer mix, competitors, and more. CMM provides a useful model for manufacturers, regardless of their particular circumstances, to help think through all the complexities of collaboration that they need to consider. CMM establishes the idea that emerging technologies and business process management practices can be applied almost universally to obtain significant benefits. The CMM approach leverages the investments manufacturers have made in Enterprise and Plant systems. It is not a grand scheme for ripping out legacy applications and systems. Instead, it is an approach that recognizes that manufacturers already have many enterprise applications in place, as well as many plant-level systems. These systems embody or contribute to todays business processes. They may well play a similar role going forward, but certain aspects will change as the organization shifts to a business process orientation.
Enterprise Operations
SU PP OR T

BUSINESS

Product & Asset Lifecycle

SUPPLIERS

CUSTOMERS

Value Chain

DE

SIG

PRODUCTION

Collaborative Manufacturing Management (CMM)

SUPPLIERS
No supplier delivers a full CMM solution. Typical applications supporting CMM include: Business Operations: ERP, Financials, HR, Strategic Enterprise Management (SEM) Supply-Side Materials Management: SCM, SCP, SRM, BPM/ SCPM, Purchasing Customers & Order Fulfillment: CRM, SFA, Demand Forecasting, APS, TPS/TMS, Distribution Planning, WMS Product & Process Design, NPI: PLM, PDM, Formulation Management, Specification Management, CAD, Line Design & Simulation, Plant Design & Simulation Product & Process Support: EAM, CRM/Help Desk Plant/Factory Operations: Production Management, CPM, MPS, HMI Internal Collaboration: BPM, MPS, Portal

T HOUGHT L EADERS FOR M ANUFACTURING & S UPPLY C HAIN

COLLABORATIVE MANUFACTURING MANAGEMENT

CMM builds upon a collaborative infrastructure, BPM services, and real-time strategic business management tools. It connects critical applications, production systems, and enterprise information, to maximize the responsiveness, flexibility, and profitability of the manufacturing enterprise, in conjunction with its value network partners. This is a response to important shifts in the overall value proposition of manufacturing companies. Global competition and downward pressure on prices have led manufacturers to recognize their position within a Value Network. They have begun to optimize processes for overall enterprise-wide effectiveness rather than individual plant efficiency; and many are moving from isolated business processes to distributed, synchronized BPM.

ARC REFERENCE SHEET C O L L A B O R AT I V E M A N U FA C T U R I N G S E R I E S

RELATED CONCEPTS
As a comprehensive view of manufacturing, CMM encompasses all of the other Collaborative Manufacturing concepts, including: Collaborative Production Management (CPM) Service Based Architecture (SBA) Operations Management Platform (OMP) Manufacturing Performance Services (MPS) Real-time Performance Management (RPM)

CMM also embraces diverse business processes and application spaces such as PLM, SCM, BPM, Asset Management, ERP, CRM, and Automation. Somewhat similar terms in the marketplace include Adaptive Manufacturing and Demand-Driven Manufacturing.

VALUE PROPOSITION
The concept of Collaborative Manufacturing reflects manufacturers need to become more connected internally and to customers and partners, and to be more flexible, agile, and responsive. The evolution of collaborative value networks requires that manufacturers visualize the relationships among plant and enterprise applications, markets, value chains, and manufacturing nodes in order to understand the context for planning and implementing collaborative manufacturing systems. A collaborative manufacturing network consists of spheres or manufacturing nodes connected by material, information, and process flows. The nodal sphere encompasses three axes: Enterprise, Value Chain, and Lifecycle. Above the central plane or disc are business functions. Below it are production functions, now performed using a number of manual processes and legacy applications. These will be supported by collaborative components capable of orchestrating the designated functions in concert with the business goals of the node and the competitive dynamics of the value chains in which the node or enterprise participates. ARCs CMM Model defines the requirements for an information system that addresses the key elements of collaborative manufacturing outlined above. The model also recognizes the need to support internal and outsourced execution of all enterprise activities by defining solutions for different functional units and an extended enterprise or supply chain.

Your Plants, Assets, and Resources

Logistics Providers Contract Manufacturers Logistics Providers Distributors Retailers

CMM Models the Plant as a Node in a Value Network

ABOUT ARC REFERENCE SHEETS

An ARC Reference Sheet provides a brief overview of an emerging manufacturing concept or term. With a definition, value proposition, relationship to other concepts, and identification of a few suppliers, the Reference Sheet rapidly brings you up to speed on new ideas.

MORE INFO
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