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Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
2

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Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
3
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K L M)*#8+.&*%8) ================================================================================================ J
N 3 4%*"#0*.#" !.#$"2 ====================================================================================== J
2.1 - Crlglnal LqulpmenL ManufacLurers (CLM) .............................................................. 4
2.1.1 OM/5oppllet loteqtoteJ MoJel ........................................................................ 4
2.1.2 OM llotfotms ................................................................................................... 5
2.1.J 1be 1btee OM 5ectot 1lets ................................................................................ 5
2.1.4 Aotomotlve lotts Motket ................................................................................... 5
2.1.5 lmpoct of -commetce, Clobollzotloo ooJ keqloool clostets oo OM ............... 6
2.2 - 1he role of l1 ln ManufacLurlng .............................................................................. 7
O 3 7)*"#>#%1" F :0).P0&*.#%)@ !(, ======================================================== Q
3.1 SCA ln ManufacLurlng ............................................................................................... 9
J 3 G-" ,R75! ,.*8E8*%$" !.>>;2 /-0%) /01" !*.+2 ======================= KN
4.1 lnLroducLlon ............................................................................................................. 12
4.2 1he roposed SCA SoluLlon ..................................................................................... 12
4.3 lmprovemenLs 8egardlng Lhe ManufacLurlng arL .................................................. 13
4.J.1 AN5l/l5A-95 5tooJotJ ....................................................................................... 14
S L 5"P"#")&"1 ================================================================================================ NO








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Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
4
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K

K L M)*#8+.&*%8)

1hls documenL alms aL descrlblng Lhe flrsL asslgnmenL of Lhe Servlce CrlenLed
ArchlLecLure sub[ecL, whlch conslsLs on a llLeraLure revlew and a proposal of an
enhanced descrlpLlon of a glven case sLudy.

1he reporL ls sLrucLured as follows: llrsL Lhe llLeraLure sLudy ls presenLed hlghllghLlng
Lhe role of l1 ln Lhe manufacLurlng secLor wlLh speclal focus on SCA. 1hen, Lhe case
sLudy ls brlefly descrlbed and Lhe lmprovemenLs proposed afLer Lhe llLeraLure revlew
are dlscussed.
N 3 4%*"#0*.#" !.#$"2
N=K L (#%@%)0; 7T.%>E")* :0).P0&*.#"#1 U(7:V

Crlglnal LqulpmenL ManufacLurers (CLM) appeared as a resulL of Lhe changes ln Lhe
manufacLurlng process and buslness model Lo use Lhlrd parLles as subconLracLors or
suppllers of speclflc parLs ln order Lo lnLegraLe Lhem laLer lnLo Lhe flnal producL,
Lherefore an CLM Lakes an lmporLanL parL ln Lhe supply chaln. A deflnlLlon of Lhe
concepL descrlbes lL as an enLerprlse who manufacLures producLs or componenLs LhaL
are purchased by a company and reLalled under LhaL purchaslng company's brand
name. CLM refers Lo Lhe company LhaL orlglnally manufacLured Lhe producL. When
referrlng Lo auLomoLlve parLs, CLM deslgnaLes a replacemenL parL made by Lhe
manufacLurer of Lhe orlglnal parL. ln Lhls usage, CLM means "orlglnal equlpmenL from
manufacLurer" [1].

Cur case sLudy ls relaLed Lo Lhe auLomoLlve lndusLry, where Lhe use of subconLracLors
ln Lhe form of CLMs ls wldely pracLlced. 1hls ls posslble due Lo Lhe naLure of Lhe car
manufacLurlng process whlch comprlses an assembly llne where Lhe componenLs are
broughL LogeLher ln a predeLermlned order. 1he characLerlsLlcs relaLed Lo Lhe
assembly llne have been evolvlng over Llme, especlally wlLh lnnovaLlve Lechnlques
developed ln !apan where 1oyoLa achleved a greaL success wlLh Lhelr 1oyoLa
roducLlon Llne (precursor of Lhe !usL ln 1lme lnvenLory sysLem). SLandardlzaLlon and
deflnlLlon of clear speclflcaLlons has made posslble Lhe lnLegraLlon of CLM lnLo Lhe
producLlon llne and Lhe supply chaln ln general.
N=K=K (7:W!.>>;%"# M)*"@#0*"+ :8+";
1he CLM/suppller relaLlonshlp ls hlghly lnLegraLed wlLh a slgnlflcanL amounL of
lnLerdependence. AlLhough hlsLorlcally CLMs held Lhe upper hand, Lhe dynamlcs are

1
1hls maLerlal ls copyrlghLed. ?ou may freely use Lhe maLerlal ln Lhls documenL for lecLures,
presenLaLlons, publlcaLlons, dlscusslons, eLc, provlded LhaL lL ls properly referenced. 1he proper
reference ls: Web Servlces & SCA: rlnclples & 1echnology", 2
nd
edlLlon, renLlce Pall, earson, May
2012, lS8n-13: 978-0273732167.
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
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changlng such LhaL suppllers can play an lncreaslngly sLraLeglc role wlLh CLMs golng
forward.
N=K=N (7: <;0*P8#E1
laLforms are Lyplcally developed by CLMs over a perlod of more Lhan one year, Lo be
used for a few car models over Lhree Lo Len years, dependlng on Lhe models' success.
lL cosLs less Lo change Lhe exLerlor of a car and keep Lhe same plaLform Lhan Lo sLarL a
new plaLform alLogeLher. Speclflc car model programs" are generally won by suppllers
by blddlng on varlous sysLems and componenLs used ln CLMs' proprleLary plaLforms.
Suppllers wlnnlng programs on an CLM's plaLform wlll ofLen do so for Lhe varlous car
models derlved from Lhls plaLform.
N=K=O G-" G-#"" (7: !"&*8# G%"#1
1he orlglnal equlpmenL supply secLor ls generally dlvlded lnLo several Llers. 1ler 1
suppllers are Lhe larger, more dlverslfled companles LhaL produce an lmporLanL varleLy
of flnlshed parLs and equlpmenL and assemble Lhem (lncludlng compleLe vehlcle
assembly ln some cases). 1hey also provlde englneerlng and deslgn servlces for Lhelr
CLM cllenLs. ln produclng modules, sysLems or assemblles for CLMs, 1ler 1 suppllers
may rely on oLher suppllers for some componenLs or parLs. 1ler 2 suppllers, dependlng
on Lhelr level of sophlsLlcaLlon ln Lhe value chaln, are Lyplcally more speclallzed ln Lhelr
producL offerlng, and make Lhe componenLs LhaL wlll be lnLegraLed by 1ler 1 flrms,
such as Lransmlsslon gears, elecLronlcs, speedomeLers and seaL covers. 1ler 3 suppllers
generally sell baslc componenLs or raw maLerlals Lo Lhe oLher suppllers. llgure 1 shows
Lhls 3-Ller schema. [2]



7%8.#" 9 : ;2<%&0= ,.*> !.<<=2 /-0%)
N=K=J ,.*8E8*%$" <0#*1 :0#X"*
ln splLe of Lhe laLesL seLbacks, Lhe auLomoLlve secLor sLlll plays an lmporLanL parL ln Lhe
economlc acLlvlLles of many counLrles. 1he auLomoLlve parLs consumpLlon ls llnked Lo
Lhe demand for new vehlcles, slnce roughly 70 of u.S. auLomoLlve parLs producLlon ls
for Crlglnal LqulpmenL (CL) producLs. 1he remalnlng 30 ls for repalr and modlflcaLlon
(afLermarkeL). lf vehlcle producLlon goes down, auLomoLlve parLs producLlon and sales
follow. lor Lhose suppllers LhaL were able Lo survlve Lhe downLurn ln 2009 and lower
Lhelr break-even polnL, 2010 was a beLLer year Lhan expecLed. Suppllers were able Lo
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
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lncrease efflclency and lower Lhelr break-even polnL based on u.S. sales of passenger
cars and llghL Lrucks Lo beLween 9.3 and 11 mllllon. u.S. sales were 11.3 mllllon unlLs ln
2010, allowlng many suppllers Lo see some proflL. [3]

CompeLlLlon was also growlng as forelgn suppllers opened shop ln norLh Amerlca. An
esLlmaLed 800-1000 suppllers from overseas bullL planLs ln norLh Amerlca ln Lhe pasL
20 years, creaLlng a mass global locallzaLlon" of Lhe suppller secLor. Some forelgn
suppllers, especlally Luropean companles, LhaL expanded buslnesses ln norLh Amerlca
Lo supply Lhelr ueLrolL 3 cusLomers, are also Lrylng Lo move away from ueLrolL 3
buslness Lo Aslan auLomakers. Powever, !apanese suppllers are noL lmmune elLher.
Suppllers ln norLh Amerlca all face compeLlLlon, hlsLorlcally hlgh maLerlal cosLs, and
demandlng cusLomers, alLhough Lhe forelgn suppllers face fewer legacy cosLs and so
Lend Lo operaLe more efflclenLly Lhan Lhelr u.S. counLerparLs.

AuLomakers, such as lord, are aLLempLlng Lo deslgn global plaLforms allowlng Lhe
vehlcle Lo be made ln Asla, Lurope and norLh Amerlca uslng Lhe same plaLform. Clobal
plaLforms reduce englneerlng cosLs, slmpllfy manufacLurlng processes, and lmprove
quallLy by reduclng varlablllLy. CLher efflclencles galned by Lhe volume of Lhe shared
plaLform lnclude worklng closer wlLh suppllers from Lhe deslgn of parLs Lo Lhe
producLlon of Lhe car whlch wlll cuL componenL cosL and reLall prlce. lor example, Lhe
lord locus wlll use 80 percenL common parLs and 73 of Lhe same supply base. Large
reglonal suppllers are a shrlnklng parL of Lhe markeL. [4]
N=K=S ME>0&* 8P 7L&8EE"#&"B Y;8A0;%?0*%8) 0)+ 5"@%8)0; /;.1*"#1 8) (7:
1he evoluLlon of Lhe markeL and developmenL of new Lechnologles have lmpacLed Lhe
way ln whlch manufacLurlng ls performed and, ln general, Lhe aspecLs Lo be consldered
by Lhe whole auLomoLlve lndusLry for keeplng lLs compeLlLlveness. AbouL 13-20 years
ago CompuLer lnLegraLed ManufacLurlng (ClM) was Lhe paradlgm for fuLure
compeLlLlve manufacLurlng. Already several years ago, Lhe concepL had losL lLs
aLLracLlveness as a hollsLlc sLraLegy, noL leasL due Lo a re-assessmenL of lLs pre-
domlnaLlng phllosophy of cenLrallzaLlon and Lechnology-cenLrlsm. 1oday, Lo some
exLenL slmllar concepLs for Lhe lnLegraLlon of Lhe supply chalns (SCM) and Lhe
lnLeracLlon wlLh (poLenLlal) suppllers and cusLomers (e-commerce) are lmplemenLed.
1he knowledge managemenL dlscusslon could be menLloned ln Lhls conLexL, Loo. 1he
lssue of excesslve cenLrallzaLlon and orlenLaLlon aL Lechnologlcal soluLlons ls agaln on
Lhe agenda. And Lhe auLomoLlve lndusLry ls aL Lhe forefronL ralslng, for lnsLance, Lhe
quesLlon of balance of power ln supply chalns and of access for small and medlum
slzed enLerprlses.

1he lnLervlews as well as Lhe llLeraLure underllne Lhe precursor role of Lhe auLomoLlve
CLM wlLh respecL Lo Lhe use of new lnformaLlon and communlcaLlon Lechnologles llke
lnLerneL based manufacLurlng concepLs. 1he vlslon of unlversal dlglLallzaLlon (even
lncludlng vlrLual reallLy) seems Lo drlve sLraLegy developmenLs Lo a slgnlflcanL amounL.
1he aLLempLs go ln boLh Lhe dlrecLlons of suppllers and consumers.

!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
7
lnLerneL (Lechnology) ls consldered a ma[or enabllng and deLermlnlng facLor of Lhe re-
sLrucLurlng of Lhe supply chaln. lurLhermore, Lhe expecLaLlons LhaL Lhe new
communlcaLlon posslblllLles malnly supporL globallzaLlon and global sourclng are Lo
some exLenL conLradlcLed by Lhe lncreaslng relevance and LargeLed developmenL of
reglonal auLomoLlve clusLers whlch seem Lo make use of and proflL even more from
elecLronlc communlcaLlon.

AnoLher lmporLanL polnL ln Lhls respecL ls Lhe commlLmenL Lo general versus
proprleLary or secLor-speclflc sLandards and soluLlons. 1he laLLer ls or aL leasL has been
Lhe domlnanL approach ln Lhe auLomoLlve secLor as many exlsLlng sLandards wlLh
respecL Lo manufacLurlng and Lhe exlsLence of an own neL ln Lurope (Lnx) lndlcaLe.

uaLa from Lhe 2001 lraunhofer lSl ManufacLurlng lnnovaLlon Survey ln Cerman
lndusLry reflecL Lhls slLuaLlon (see llgure 2). Whlle auLomoLlve suppllers only show
average or less (compared Lo flnal producers) acLlvlLles ln e-buslness, Lhe speclflc
exchange of producL, producLlon or machlne daLa (Leleservlce) ls comparaLlvely more
common for Lhem. Some suppllers expressed concerns abouL obllgaLlons Lo parLlclpaLe
ln CLM-speclflc elecLronlc sysLems.

1he lmpacL of Lhe auLomoLlve CLMs' e-sLraLegles Lowards Lhe consumers only has an
lndlrecL, noneLheless lmporLanL, lmpacL on manufacLurlng. 1he Lrend ls Lowards bulld-
Lo-order whlch ls already common ln Lurope and flnally Lowards onllne orderlng by Lhe
consumer. 1hls ls comblned wlLh shorLer lead Llmes and more varlanLs whlch mlghL call
for decenLrallzed or locallzed soluLlons as small, flexlble facLorles lnLegraLed ln suppller
parks and uslng desk Lop manufacLurlng processes ln Lhe long run. [3]


7%8.#" ? : @1" >A B:C.1%)"11:#"=0*"+ ;"&-)>=>8%"1 6%*- ,.*>D>*%$" !.<<=%"#1 />D<0#"+ *> >*-"# />D<0)2 E#>.<1
%) E"#D0)2

N=N 3 G-" #8;" 8P MG %) :0).P0&*.#%)@

1he Lrend for manufacLurlng companles ls clearly glven: Lhey have Lo become more
flexlble and aglle Lo face Lhe challenges of Loday and Lomorrow as buslness models
change. 8uL Loday's l1 sysLems of companles are very ofLen lnflexlble, hard Lo
malnLaln, dlfflculL Lo enhance or even dlfflculL Lo supporL. 8uslness relaLlons beLween
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
8
suppllers and CLMs change over Llme. l1 sysLems of boLh sldes, CLM and suppller,
need Lo reflecL Lhls reallLy by lncreased flexlblllLy. 1hey need Lo be able Lo handle all
Lhese dlfferenL requlremenLs lnvolved by dlfferenL parLners [6].


7%8.#" FG BH0D<=" >A !21*"D ,#&-%*"&*.#" IJK

llgure 3 shows a hlgh-level overvlew of posslble sysLem archlLecLure for a
manufacLurlng company. lL shows clearly Lhe facL LhaL Lo manufacLure proper producLs
(or parLs ln Lhe case of an CLM), dlfferenL sysLems have Lo communlcaLe wlLh each
oLher. 1hese sysLems are heavlly based on l1 pracLlces. 8uslness processes are
connecLed Lo appllcaLlon sysLems. AppllcaLlon sysLems rely on mlddleware Lo be able
Lo communlcaLe wlLh oLher appllcaLlons and sysLems. Clven Lhese lnLerconnecLlons
and dependencles, l1 plays Loday a ma[or role ln manufacLurlng.

LnLerprlses are separaLed lnLo several layers, such as hop lloor, lanL CompuLer 8oom
(Cfflce AuLomaLlon), lanL or LnLerprlse ManufacLurlng CperaLlons ManagemenL,
LnLerprlse uaLa CenLer, eLc [6]. llgure 4 lllusLraLes an enLerprlse from a loglcal polnL of
vlew. 1he flgure corresponds Lo Lhe lSA-93 LnLerprlse uomaln Plerarchy. AnSl/lSA-93
ls an lnLernaLlonal sLandard. lSA-93 descrlbes lnLegraLlon of enLerprlse and conLrol
sysLems" [10] and provldes models and Lermlnology.

1he hlghesL level ln Lhe flgure below descrlbes plannlng and loglsLlcs Lasks such as Lhe
baslc planL schedule, dellvery, shlpplng, eLc. 1hls layer ls malnly based on enLerprlse
sysLems and lnLerconnecLlng mlddleware. [6]

Level 2 represenLs Lhe operaLlonal level (work unlL). MonlLorlng and conLrol of
producLlon work processes are Lhe Lasks sysLems have Lo accompllsh. Level 1 descrlbes
manlpulaLlon and senslng of Lhese processes. Level 0 ls deflned as Lhe shop floor
where Lhe acLual producLlon process ls performed.

!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
9

7%8.#" LG M!,:NOG P>D0%) Q%"#0#&-2 IRK

ln Lhe 3
rd
level from Lhe Lop manufacLurlng operaLlons are managed. Maln Lasks are
producLlon dlspaLchlng, deLalled schedullng of manufacLurlng. 1hls level makes use of
manufacLurlng sysLems whlch lncludes real-Llme mlddleware Lo exchange producLlon
daLa beLween dlfferenL sysLems. ManufacLurlng CperaLlons ManagemenL (MCM) ls
used Lo analyze and malnLaln daLa and posslbly Lo opLlmlze producLlon processes. [6]
O 3 7)*"#>#%1" F :0).P0&*.#%)@ !(,

As llgure 4 shows, lL ls lmposslble Lo lmaglne manufacLurlng Loday wlLhouL Lhe supporL
of l1 sysLems. lurLhermore, l1 sysLems musL be able Lo represenL Lhe flexlblllLy
lnvolved ln changlng buslness relaLlons and requlremenLs for fasL changlng
envlronmenLs. ln many companles, Lhe sysLems landscape ls also very dlverse and does
noL provlde sLandardlzed lnLegraLlon. [11]

Servlce CrlenLed ArchlLecLure (SCA) ls a way Lo Lackle Lhese problems and bulld a
sLandardlzed and flexlble servlce envlronmenL [12]. 8ecall LhaL an SCA can be
descrlbed as a loglcal way of deslgnlng a sofLware sysLem by provldlng servlces vla
publlshed and dlscoverable lnLerfaces" [13]. Servlces are pleces of sofLware LhaL are
accesslble Lhrough well-deflned lnLerfaces. lmplemenLaLlon deLalls of servlces are
hldden. A servlce can be consumed when needed uslng Lhe deflned lnLerface(s). SCA
alms Lo creaLe a hlghly lnLeroperable and exLendable archlLecLure by loosely coupllng
servlces.
O=K !(, %) :0).P0&*.#%)@

SCA ls a mean for companles Lo overcome problems as descrlbed above. lL provldes a
flexlble archlLecLure LhaL ls beLLer Lo malnLaln and ln mosL cases easler Lo adapL Lo new
requlremenLs because of lLs archlLecLural prlnclples and sLyle. Accordlng Lo AM8
8esearch, companles see an lncreased need for lnLegraLed l1 archlLecLures ln Lhe
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
10
manufacLurlng domaln [6]. lor manufacLurlng companles, lL becomes more and more
lmporLanL Lo have approprlaLe lnformaLlon aL Lhe rlghL Llme aL Lhe rlghL place ln Lhe
manufacLurlng facLory. SCA ls a way Lo adapL lnformaLlon flows and sysLems qulcker
Lhan ln LlghLly coupled sysLems.

lnLegraLlon of suppllers lnLo Lhe CLM manufacLurlng sysLems or deploymenL of CLM
sysLems aL Lhe suppller's slde lnvolves hlgh expenses. 1hls leads Lo Lhe need for open,
buL secure communlcaLlon wlLh suppllers worldwlde [6]. 1hls publlcaLlon also proposes
a vlslon for manufacLurlng-lnLegraLed SCA whlch ls shown ln Lhe flgure below.


7%8.#" OG ($"#0== !(, A># S0).A0&*.#%)8 T%1%>)

llgure 3 shows Lhe funcLlonal layers of Lhe proposed SCA for manufacLurlng. 1he
loundaLlon l1 sysLems and daLa"-layer lncludes exlsLlng and legacy appllcaLlons. 1he
baslc usage of buslness' daLa ls deplcLed by Lhem slnce Lhey represenL so called
mlsslon crlLlcal sysLems and appllcaLlons. Cn Lop of Lhls layer, Lhe lnLegraLlon Layer can
be found. A common way of represenLlng lnLegraLlon ls Lhrough an enLerprlse servlce
bus (LS8) [13]. lL offers LransporLaLlon, securlLy, medlaLlon Lo appllcaLlons and lL can
also provlde a buslness process englne.

1he mlddle layer represenLs 8uslness servlces. lL ls seen as an absLracLlon layer of
servlces LhaL slLs on Lop of Lhe lowesL layer, Lhe loundaLlon l1 sysLems. Servlces are
wrapped buslness appllcaLlons of Lhls lower layer. 1he nexL layer ls Lhe 8uslness
process LemplaLes layer. Servlces of Lhe layer below are comblned LogeLher Lo more
complex consLrucLs and even new servlces. 1hls ls a fundamenLal prlnclple of a SCA.
1hese resulLlng consLrucLs or servlces are represenLed by buslness processes. 1he Lop
layer ls Lhe orLal/uashboard layer. lL provldes vlsuallzaLlon and daLa aggregaLlon Lo
users [6].
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
11

llnally, llgure 6 comblnes Lhe LnLerprlse SCA and Lhe ManufacLurlng SCA.
ManufacLurlng SCA ls parL of Lhe overall LnLerprlse SCA and lL ls deslgned for
manufacLurlng operaLlon speclflc purposes. 1he LnLerprlse SCA provldes a hlgher-level
vlew on sysLems, processes, servlces and daLa granularlLy. 1o Lhe lefL of Lhe flgure,
requlremenLs and Lhe focus of boLh SCAs are glven. lL ls clear LhaL Lhe focus of an
LnLerprlse SCA ls dlfferenL and on a hlgher level Lhan Lhe manufacLurlng's SCA whlch ls
more on producL level Lhan compllance or enLerprlse-wlde processes.



7%8.#" UG S0).A0&*.#%)8 !(, 01 <0#* >A 0) B)*"#<#%1" !(, IUK



&LM = roducL & rocess Llfecycle ManagemenL
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
12
J 3 G-" ,R75! ,.*8E8*%$" !.>>;2 /-0%) /01" !*.+2
J=K M)*#8+.&*%8)

1he comprehenslve case sLudy conslsLs of an auLomoLlve supply chaln example LhaL
alms aL Lhe developmenL of a Servlce CrlenLed ArchlLecLure (SCA) soluLlon Lo
effecLlvely process Lhe acLlvlLles wlLhln Lhls chaln. AvL8S (Advanced AuLomoLlve arLs)
ls a hypoLheLlcal manufacLurer of speclalLy auLomoLlve parLs, produclng from power
Lraln componenLs Lo sLeerlng and braklng sysLems, Lhus playlng Lhe role of an CLM
(Crlglnal LqulpmenL ManufacLurer).

1he supply chaln concepL ls on Lhe core of Lhe auLomoLlve lndusLry. lL essenLlally
conslsLs of Lhree parLs: supply, manufacLurlng and dlsLrlbuLlon. ln Lhls scenarlo, AvL8S
sLands on Lhe manufacLurlng parL, acqulrlng slmpler lndlvldual parLs from lLs suppllers,
comblnlng Lhem Lo produce Lhe auLomoLlve parLs and worklng wlLh lLs dlsLrlbuLors Lo
ensure Lhe bullL parLs wlll reach lLs flnal cusLomers, whlch, ln Lurn, are baslcally car
assemblers and auLomoLlve parL dealers.

Accordlng Lo Lhe case sLudy, Lhe currenL l1 landscape of AvL8S does noL meeL Lhe
performance, flexlblllLy and adapLablllLy requlremenLs expecLed on an auLomoLlve
supply chaln. SysLems are noL well lnLegraLed, Lhus ofLen requlrlng manual daLa enLry,
producLlon plannlng and lnvenLory level conLrol are noL managed and Lhe level of
deLall and accuracy on Lhe lnformaLlon avallable ls noL saLlsfacLory, Lo summarlze some
of Lhe problems. 1herefore, an Crder ManagemenL SysLem (CMS) should be
lmplemenLed Lo enable Lhe SCA approach on AvL8S supply chaln, collecLlng
lnformaLlon from dlsparaLe sysLems, produclng daLa ln an agreed common formaL and
unlfylng Lhe dlsparaLe processes lnLo one conslsLenL order process flow across noL only
all lnLernal buslness unlLs of AvL8S, buL also lLs chaln parLners.

J=N G-" <#8>81"+ !(, !8;.*%8)

ln order Lo achleve a robusL SCA soluLlon for Lhe AvL8S' supply chaln case, some maln
processlng sLeps are proposed Lo be lnLroduced on Lhe CMS. 1hey are llsLed as follows:

1) 8eglsLraLlon of a new lncomlng purchase order from a cusLomer,
2) verlflcaLlon of order compleLlon,
3) Check cusLomer relaLlonshlp Lype and credlL worLhlness,
4) ConsolldaLlon of all lLems on a slngle purchase order per cusLomer,
3) CreaLlon of a blll,
6) Check of lnvenLory levels and Lrlggerlng of sLock replenlshmenL lf needed,
7) Sendlng of lnvenLory daLa Lo a loglsLlcs servlce provlder whlch ls responslble for
rouLlng Lhe shlpmenL of Lhe lLems Lo Lhe cusLomer,
8) Approval of shlpmenL deLalls and sendlng of flnal lnvolce Lo Lhe cusLomer,
9) negoLlaLlon of paymenL deLalls.

1hese sLeps presenL a slmpllfled approach of Lhe purchase order processlng by Lhe
auLomoLlve supply chaln around AvL8S. 1hus, based on Lhe llLeraLure sLudy descrlbed
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
13
earller ln Lhls documenL, some suggesLlons are made ln order Lo lmprove Lhe deLall
level and reallsm of Lhe AvL8S case sLudy, speclflcally concernlng Lhe manufacLurlng
parL of Lhe process. Such suggesLlons are deplcLed on Lhe nexL paragraphs.

J=O ME>#8$"E")*1 5"@0#+%)@ *-" :0).P0&*.#%)@ <0#*

1he parL LhaL concerns Lhe manufacLurlng process of Lhe auLomoLlve parLs by AvL8S ln
Lhe problem sLaLemenL ls raLher slmpllsLlc. lL sLaLes LhaL:
1he lnvenLory ls checked agalnsL Lhe approprlaLe quanLlLles requlred by Lhe purchase
order. lf Lhere ls lnsufflclenL sLock of Lhe parLs requlred, an lnvenLory replenlshmenL
process can be lnlLlaLed Lo move sLock from cenLrallzed warehouses Lo subsldlary
warehouses."


7%8.#" R !*0)+0#+1 A># S0).A0&*.#%)8 !21*"D1 M)*"8#0*%>)

As lL can be observed, Lhe problem sLaLemenL does noL menLlon Lhe manufacLurlng
process of Lhe auLomoLlve parLs. lL conslders only LhaL AvL8S replenlshes lLs sLocks by
reposlLlonlng parLs among lLs warehouses. Such parLs, naLurally, have Lo be produced
aL some polnL ln Llme. 1herefore, lL ls suggesLed Lo lmprove Lhe case sLudy by lncludlng
Lhe slLuaLlon when sLock levels run Loo low or even are empLy, demandlng LhaL
producLlon orders are senL Lo Lhe manufacLurlng unlLs of AvL8S.

1o lmprove Lhe descrlpLlon of Lhe manufacLurlng scenarlo, one lmporLanL approach ls
Lo apply lndusLry wldespread sLandards. llgure 10 [14] shows some Lyplcal sLandards
used ln Lhe lndusLry ln general, elLher for lnLercompany communlcaLlon or lnLernally ln
an enLerprlse and, also, regardlng dlfferenL aspecLs, such as buslness documenLs
formaLs or messaglng proLocols.

!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
14
Cne of Lhe sLandards Lyplcally used on Lhe manufacLurlng level (Level 3 ln llgure 4) ls
Lhe lSA-93 norm. Applylng Lhls sLandard Lo Lhe AvL8S case sLudy consLlLuLes a sound
approach as already menLloned ln parL vlll of Lhe book SCA modellng, deslgn and
developmenL" [13].
J=O=K ,Z!MWM!,LQS !*0)+0#+
1he AnSl/lSA-93 ls a sLandard LhaL provldes models and Lermlnology for deflnlng Lhe
lnLerfaces beLween an enLerprlse's buslness sysLem and lLs manufacLurlng conLrol
sysLems. lLs goal ls Lo reduce Lhe efforL, cosL and error whlle lmplemenLlng such
lnLerfaces, as lL can be checked wlLh more deLall ln [10].



7%8.#" J 3 S0).A0&*.#%)8 B)*"#<#%1" 4"$"=1

llgure 8 deplcLs Lhe dlfferenL levels ln a manufacLurlng enLerprlse and presenLs a
hellcopLer-vlew of AnSl/lSA-93's deflnlLlons. More preclsely, Lhe sLandard deflnes Lhe
scope of manufacLurlng operaLlons and conLrol domaln, Lhe organlzaLlon of physlcal
asseLs lnvolved ln manufacLurlng, Lhe funcLlons assoclaLed wlLh Lhe aforemenLloned
lnLerfaces and Lhe lnformaLlon LhaL ls shared beLween conLrol and enLerprlse
funcLlons.

Slnce Lhe focus of Lhls case sLudy ls proposlng an SCA soluLlon for Lhe manufacLurlng
operaLlons of AvL8S, lL ls belleved LhaL Lhe soluLlon would beneflL greaLly ln complylng
aL some level Lo Lhls sLandard.
!"#$%&'() +$',-,./0 123'4

1he flrsL deflnlLlon provlded ln Lhe sLandard ls LhaL of Lhe physlcal asseLs of an
enLerprlse. usually, Lhese asseLs are organlzed hlerarchlcally as shown ln llgure 19.
1hls model deflnes Lhe areas of responslblllLy for Lhe dlfferenL funcLlon levels.


!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
13




7%8.#" N 3 ;-" BV.%<D")* Q%"#0#&-2 S>+"=

lL ls belleved LhaL Lhe modellng of Lhe SCA soluLlon for AvL8S should adopL a slmllar
hlerarchlc model for lLs physlcal asseLs. 1he use of a sLandardlzed model for a domaln
LhaL Lrespasses Lhe whole enLerprlse can ease ln a greaL manner Lhe lnLerfaces deflned
ln sysLems LhroughouL AvL8S.
5#(.)$2(-4 5426 7-)- 123'4

1he model presenLed ln llgure 10 deflnes boLh Lhe maln funcLlons of an enLerprlse
lnvolved wlLh manufacLurlng and Lhe lnformaLlon flows beLween Lhe funcLlons LhaL
cross Lhe enLerprlse-conLrol lnLerface.

Slnce Lhe purpose of Lhls documenL ls Lo deal sLrlcLly wlLh Lhe order processlng and
manufacLurlng parL of AvL8S, only 3 maln funcLlons vlLal Lo Lhese process wlll be
sLudled ln deLall.

1he funcLlons and sub funcLlons of lnLeresL are deLalled as follows:
(#+"# W#>&"11%)8 - CusLomer order handllng, accepLance and conflrmaLlon,
walver and reservaLlon handllng, deLermlnlng producLlon orders.
W#>+.&*%>) !&-"+.=%)8 - ueLermlnlng producLlon schedule and avallable
producLs for sales.
W#>+.&*%>) />)*#>= - ConLrolllng Lhe LransformaLlon of raw maLerlals lnLo end
producLs ln accordance wlLh producLlon schedule and sLandards, performlng
planL englneerlng acLlvlLles and updaLe of process plans.

!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
16


7%8.#" 9X 3 ;-" S0%) S0).A0&*.#%)8 7.)&*%>)1 0)+ M)A>#D0*%>) 7=>61

Pavlng deflned Lhe 3 funcLlons of lnLeresL, lL ls now posslble Lo deflne Lhe lnformaLlon
flows of lnLeresL ln Lhe scope of Lhls case sLudy:

W#>+.&*%>) (#+"#1 - roducLlon order lnformaLlon flows from order processlng
funcLlons Lo producLlon schedullng funcLlons and deflnes Lhe accepLed
cusLomer orders LhaL wlll be laLer used Lo deLermlne work for Lhe planL,
,$0%=0C%=%*2 - AvallablllLy lnformaLlon flows from Lhe producLlon schedullng
funcLlons Lo Lhe order processlng funcLlons and deflnes Lhe planL's ablllLy Lo
fulflll Lhe order,
!&-"+.=" - 1he schedule lnformaLlon flows from Lhe producLlon schedullng
funcLlons Lo Lhe producLlon conLrol funcLlons and conLalns Lhe lnformaLlon on
whaL producL ls Lo be made, how much ls Lo be made, and when lL ls Lo be
made,
W#>+.&*%>) /0<0C%=%*2 - 1he producLlon capablllLy lnformaLlon flows from Lhe
producLlon conLrol funcLlons Lo Lhe producLlon schedullng funcLlons and
deflnes Lhe currenL commlLLed, avallable, and unaLLalnable capablllLy of Lhe
producLlon faclllLy,
W#>+.&*%>) A#>D W=0) - 1he producLlon from plan lnformaLlon flows from Lhe
producLlon conLrol funcLlons Lo Lhe producLlon schedullng funcLlons and
conLalns lnformaLlon abouL Lhe currenL and compleLed producLlon resulLs from
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
17
execuLlon of Lhe plan, Lhus conLalnlng whaL was made, how much was made,
how lL was made, and when lL was made.
89:'.) 123'4

1he sLandard presenLs also an ob[ecL model and provldes a conLexL for Lhe ob[ecL
models. MosL of Lhe lnformaLlon descrlbed ln Lhe daLa flow model falls lnLo Lhree maln
areas:
lnformaLlon requlred Lo produce a producL
lnformaLlon abouL Lhe capablllLy Lo produce a producL
lnformaLlon abouL acLual producLlon of Lhe producL

llgure 11 presenLs Lhe proposed hlgh-level model Lo descrlbe Lhe aforemenLloned
areas. 1he producLlon lnformaLlon deflnes whaL was made and whaL was used. lLs
elemenLs correspond Lo lnformaLlon ln producLlon schedullng LhaL deflned whaL Lo
make and whaL Lo use. 1he producLlon schedullng elemenLs correspond Lo
lnformaLlon ln Lhe producL deflnlLlon LhaL deflnes whaL musL be speclfled Lo make a
producL. 1he producL deflnlLlon elemenLs correspond Lo lnformaLlon ln Lhe process
segmenL deflnlLlons LhaL deflne whaL can be done wlLh Lhe producLlon resources.



7%8.#" 99 3 ;-" M!, (CY"&* S>+"= A># W#>+.&*%>) P0*0

llgure 11 lllusLraLes how Lo lnLerpreL Lhe prevlous plcLure. lL shows how Lhls
lnLeracLlon ls made beLween 3 of Lhe layers of Lhe producLlon conLrol. lL makes clear
how Lhe segmenLs are all organlzed ln a workflow whlle deflnlng Lhe way Lhe producL
should be assembled. lL also clarlfles as well LhaL Lhe slanLed recLangles ln Lhe flgure
represenL any of Lhe producLlon resources such as personnel, equlpmenL, or maLerlal.

!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
18


7%8.#" 9?3 !&-"D0 0C>.* Q>6 ;> M)*"#<#"* *-" (CY"&* S>+"= A># W#>+.&*%>) P0*0

1he Lwo prevlous flgures lmply LhaL Lo provlde a Lhorough model, Lhe deLalled models
of varlous elemenLs such as personnel, and equlpmenL should be beLLer deflned. 1he
sLandard provldes also a deLalled model for each of Lhese elemenLs. AnSl/lSA-93
deflnes Lhe classes and also Lhe aLLrlbuLes ln each of Lhe elemenLs as shown ln llgures
12 - 20. 1hese models wlll be used as a reference whlle modellng Lhe AvL8S sysLem. A
brlef descrlpLlon ls presenLed for each model:
W"#1>))"= - ConLalns Lhe lnformaLlon abouL speclflc personnel, classes of
personnel, and quallflcaLlons of personnel LhaL wlll be laLer requlred Lo produce
Lhe manufacLured goods.




7%8.#" 9F 3 ;-" W"#1>))"= (CY"&* S>+"=




!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
19
BV.%<D")* - ConLalns Lhe lnformaLlon abouL speclflc equlpmenL, Lhe classes of
equlpmenL, equlpmenL capablllLy LesLs, and malnLenance lnformaLlon
assoclaLed wlLh equlpmenL LhaL wlll be laLer used ln Lhe manufacLurlng.



7%8.#" 9L 3 ;-" BV.%<D")* (CY"&* S>+"=


S0*"#%0= - ConLalns Lhe lnvenLory of raw, flnlshed, and lnLermedlaLe maLerlals.
rovldes also currenL maLerlal lnformaLlon, whlch ls conLalned ln Lhe maLerlal
loL and maLerlal subloL lnformaLlon.



7%8.#" 9O 3 ;-" S0*"#%0= (CY"&* S>+"=




!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
20

W#>+.&*%>) /0<0C%=%*2 - ConLalns lnformaLlon abouL all resources for
producLlon for selecLed Llmes. 1hls ls made up of lnformaLlon abouL equlpmenL,
maLerlal, personnel, and process segmenLs. lL descrlbes Lhe names, Lerms,
sLaLuses, and quanLlLles of whlch Lhe manufacLurlng conLrol sysLem has
knowledge.

7%8.#" 9U 3 ;-" W#>+.&*%>) /0<0C%=%*2 (CY"&* S>+"=
W#>&"11 !"8D")* - ueflnes Lhe collecLlon of capablllLles needed for a segmenL
of producLlon, lndependenL of any parLlcular producL.

7%8.#" 9R 3 ;-" W#>&"11 !"8D")* (CY"&* S>+"=
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
21

W#>+.&* P"A%)%*%>) -ueflnes whaL sLeps, maLerlal and equlpmenLs are needed
ln order Lo produce one glven producL. ueflnes also Lhe sequence of Lhe
segmenLs LhaL should be Laken Lo manufacLure Lhe goods.



7%8.#" 9J 3 ;-" W#>+.&* P"A%)%*%>) (CY"&* S>+"=













!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
22



W#>+.&*%>) 5"V."1* - ueflnes Lhe requesL for producLlon for a slngle producL
ldenLlfled by a producLlon rule. lL ls aggregaLed ln a roducLlon Schedule Lo be
mapped Lo Lhe roducLlon Crders. A producLlon requesL conLalns Lhe
lnformaLlon requlred by manufacLurlng Lo fulflll scheduled producLlon and
mlghL ldenLlfy or reference Lhe assoclaLed producLlon rule.



7%8.#" 9N 3 ;-" W#>+.&*%>) 5"V."1* (CY"&* S>+"=









!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
23


W#>+.&*%>) W"#A>#D0)&" - ueflnes Lhe responses from manufacLurlng LhaL are
assoclaLed wlLh a producLlon requesL. 1here may be one or more producLlon
responses for a slngle producLlon requesL lf Lhe producLlon faclllLy needs Lo
spllL Lhe producLlon requesL lnLo smaller elemenLs of work.


7%8.#" ?X 3 ;-" W#>+.&*%>) W"#A>#D0)&" (CY"&* S>+"=
S L 5"P"#")&"1

[1] Avallable from: hLLp://en.wlklpedla.org/wlkl/Crlglnal_equlpmenL_manufacLurer
[2] C'8rlen, S. , Lae, L. 8esearch auLomoLlve parLs manufacLurers. 88C caplLal markeLs.
uecember 2009.
[3], [4] Cfflce of 1ransporLaLlon and Machlnery. u.S. ueparLmenL of Commerce. Cn Lhe
road: u.S. auLomoLlve parLs lndusLry annual assessmenL. 2011.
[3] Wengel, !., Warnke, . Llndbom, !. 1he fuLure of manufacLurlng ln Lurope 2013-
2020: 1he challenge for susLalnablllLy. Case sLudy: AuLomoLlve lndusLry-personal cars.
lebruary 2003.
[6] SCA ln ManufacLurlng Culdebook, MLSA lnLernaLlonal, l8M CorporaLlon and
Capgemlnl, WhlLepaper, 2008
[7] 8olLon, 8., 1ayler, S., CLl Lnglneerlng ConLrols and AuLomaLlon SLraLegy, ln:
!ournal of harmaceuLlcal lnnovaLlon, volume 3, number 2, p. 88-94, !une 2008
!"#$%&" (#%")*"+ ,#&-%*"&*.#" /01" !*.+2 3 4%*"#0*.#" 5"$%"6
Luropean 8esearch lnsLlLuLe ln Servlce Sclence, unlv. of 1llburg, 1he neLherlands.
24
[8] klrlLsls, u., AuLomoLlve ManufacLurlng 8esearch 8oadmap for 8llu, 8llu Academlc
Conference, MassachuseLLs lnsLlLuLe of 1echnology, !anuary 2006, avallable aL
hLLp://ocw.mlL.edu/courses/englneerlng-sysLems-dlvlslon/esd-290-speclal-Loplcs-ln-
supply-chaln-managemenL-sprlng-2003/conference-vldeos/dlmlLrls_rfld.pdf, lasL
access: 02/10/2011
[9] l8M Servlces ArchlLecLure 1eam, Web Servlces archlLecLure overvlew, l8M,
SepLember 2000, avallable aL hLLps://www.lbm.com/developerworks/llbrary/w-ovr/,
lasL access: 02/10/2011
[10] AnSl/lSA-93, lnLernaLlonal SLandard, avallable aL hLLp://www.lsa-93.com, lasL
access: 02/10/2011
[11] Masson, C., SCA can llghL up manufacLurlng l1, CompuLerWeekly, november 2006,
avallable aL www.compuLerweekly.com/ArLlcles/2006/11/09/219793/SCA-can-llghL-
up-manufacLurlng-l1.hLm, lasL access: 02/10/2011
[12] kelly, L., 8ulldlng a flexlble l1 archlLecLure, WhlLepaper, CompuLerWeekly, March
2011, avallable aL
bttp.//www.compotetweekly.com/Attlcles/2011/0J/18/245977/wblte-popet-8ollJloq-
o-llexlble-l1-Atcbltectote.btm, lasL access: 02/10/2011
[13] apazoglou, M. ., Web Servlces & SCA: rlnclples and 1echnology, 2
nd
edlLlon,
renLlce Pall, March 2012.
[14] Clfford C., delaPosLrla L., noller u., Chlldress L., 8oyd A. SLandards for
ManufacLurlng SysLems lnLegraLlon lSA-93 and CAClS - WhlLe aper Serles - WhlLe
aper #2: CAClS, lSA-93 and 8elaLed ManufacLurlng lnLegraLlon SLandards
A Survey