CIM IMPLEMENTATION

STRATEGIES

SHENG MA

Submitted in Partial Completion of the Requirements of

IEM 5303

Advanced Manufacturing Systems Design

Fall 2000

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Table of Contents

Intoduction to CIM.............................................................................................................1

Definition of CIM Systems.........................................................................................................1

History.........................................................................................................................................1

The Need for CIM......................................................................................................................2

Benefits of CIM...........................................................................................................................2

Background.........................................................................................................................3

Background for CIM..................................................................................................................3

Manufacturing Systems.............................................................................................................4

Implementing CIM.............................................................................................................5

Prerequisite.................................................................................................................................5

Implementing CIM Technology................................................................................................6

CIM Implementation Strategies...............................................................................................7

CIM Implementation Strategies (Another Model)................................................................12

Conclusion........................................................................................................................14

Bibliography......................................................................................................................15

List of Figures

Figure 1: The processes by which CIM maybe implemented...........................................7

Figure 2: Figure 2. Implementation Path...........................................................................13

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INTRODUCTION TO CIM

DEFINITION OF CIM SYSTEMS

Computer integrated manufacturing (CIM) could means different things to

different people and different industries. However, regardless of the various definitions,

Computer Integrated Manufacturing systems can be best described by: Systems which

enable the integrated, rationalized, design, development, implementation, operation and

improvement of production facilities and their output over the life cycle of the product.

These systems identify and use appropriate technology to achieve their goals at minimum

cost and effort (1).

HISTORY

For much of the twentieth century, U.S. manufacturers were unchallenged in an

environment in which conservative approaches to both process technology and

managerial techniques produced successful results. Foreign competition was minimal.

Companies modified strategies and processes in minor ways in response to shifting

economic circumstances. During 1950s and 1960s, the America enjoyed a golden era of

manufacturing and the emphasis in manufacturing was on providing substantial

additional plant capacity that was needed just to keep up with market growth. Since

manufacturers had their hands full simply adding capacity of a know type, they saw no

need to add new process technologies at the same time, quality and cost were ignored.

Many U.S. firms spent incremental dollars on product technology and very little on new

process technology. Beginning in the early 1970s, the rate of growth slowed. By the

beginning of 1980s, U.S. manufacturing has the slowest growth compare to major

competitors like Japan, West German, U.K. and France. Also, U.S. manufacturer has the

highest labor cost. At the mean time, foreign manufacturer like Japan, are providing

much better quality and much cheaper products by adopting new process technologies

and new management concepts. With continuing cost and quality pressure from global

competitors, top management beginning to search ways to improve production processes

other than 1970s automation activities. One development is the concept of CIM. CIM

has been defined as the deliberate integration of automated system into the processes

producing a product. The CIM concept has taken hold in U.S. manufacturing and

companies are putting vast sums of money into automating their operations. However, Page 1

the implementation of CIM was not successful at the early stage. Companies have failed

in the implementation of CIM in as many different ways as there are companies (3).

This lack of was partially attributed to the fact that the great majority of the senior

managers fail to understand and promote the implementation of CIM, also the lack of

success was due to lack of cooperation between computer and control vendors. By this

time, strategic approach of implementing CIM is realized.

The Need for CIM

According to R.U. Ayres (4), CIM is prompted by four linked hypotheses:

New manufacturing possibilities have been created by rapid technological progress in electronics and telecommunications. The rapid development of technology facilities applications of programmable automation and CIM arises from the confluence of these supply elements (technology) and demand elements (flexibility, quality, variety).

In manufacturing processes involving human “on-line” errors result in defects. Because of increasing product complexity, defective designs, components or assemblies are increasingly intolerable.

Consumers want more choice, which means variety and customization as well as reliability and quality, making the manufacturing process more and more complex and increasing the information-processing load in firms. The rapid introduction of new products is becoming an increasingly important competitive strategy, and product life cycles are shortening.

There is a trade-off between economies of scale and economics of scope that result from flexible automation. CIM can help increase the integration of functions and control as well as higher quality and greater flexibility, at the meat time generating lower costs.

Benefits of CIM

Many of the firms that are currently using CIM have reported a number of

improvement (5):

15-30% reduction in engineering design costs 30-60% reduction in overall lead times 40-70% gain in overall production 200-500% gain in product quality 30-60% reduction in work-in process.

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While CIM programs have reported large gains for manufacturing firms, CIM can

be costly and difficult to implement. CIM implementations require large capital

expenditures, a strong commitment from top management, organizational flexibility and

partnership.

BACKGROUND

To better implement CIM in a manufacturing firm, one must understand elements

of CIM.

BACKGROUND FOR CIM

Technology Background for CIM

Concerning the technology background of CIM, R.U. Ayres (4) distinguishes

three categories of technologies:

enabling technologies transition technologies central technologies

In the first category are telecommunications, microelectronics and computers.

These technologies are applicable far beyond the domain of manufacturing.

In the second category appear technologies where microelectronic and computer

devices have been applied over the past thirty years, but on a stand-alone basis. NCs

machine tools, programmable controllers and robots are examples in this category.

The third category consists of technologies directly related to computer

integration. The major example of these technologies are computer-aided design and

computer aided manufacturing and design (CAD/CAM), computer aided planning (CAP),

computerized manufacturing resource planning (MRP), local area networks (LAN) and

flexible manufacturing systems (FMS). FMS represents a key steps in the introduction of

more advanced manufacturing systems including CIM technology. FMS enables links

between programmable automation at the machine level and the integration of computer

manufacturing at the information level.

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Organization background for CIM

CIM is more than a simple technology problem. It must be considered as a

combination of technologies, organization and data processing. CIM is a specific concept

for the firm. People at different levels of the firm should understand specific factors in

favor of a specific CIM concept for each firm. Among these factors:

Marketing demands (products, quality, delays…); Technical and economic objectives of the company (reduction

of manufacturing costs, improvement of material flow, information flow...)

Degrees of computerization and networking (type of hardware and software, network implementation, size of network, distributed architectures…)

Factors specific to the manufacturing conditions (formation, personnel, and types of machines, types of technologies, production strategy, size of company…).

CIM overall is a specific strategy embracing all the components above to help

achieve companies long term objectives.

MANUFACTURING SYSTEMS

Manufacturing maybe defined as a series of interrelated activities and operations

involving the design, selection of materials, planning, production, quality assurance,

management, and marketing of discrete consumable and durable goods. The interaction

among these activities and operations form a total manufacturing system. A system is an

organized collection of human resources; machines, tools, and equipment resources;

financial resources; and methods required to accomplish a set of specific function. A

typical manufacturing enterprise can be viewed as representing a conceptual system

whose major functions are business, engineering, human resources, and production.

Manufacturing phases can be summarized as follows:

Early planning and product support. Typical of such activities are forecasting, product selection and contracts, advanced engineering and research, business and product support planning, and operational research. Teams from the major functions work together during this phase.

Engineering and product design. Design engineers analyze, synthesize, design, and cultivate the product to meet a set of design specifications. If the product as designed meets the specifications, engineering management approves it.

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Manufacturing engineering. Manufacturing engineering, sometimes called production engineering, develops the production processes by which the design is translated into manufactured goods at the lowest possible cost.

Production planning. Production planning may be defined as the systematic scheduling of workers, materials, and machines by using lead times, time standards, delivery dates, work loads, and other similar data.

Production controls. This phase involves directing or regulating the movement of goods through the entire manufacturing cycle from the requisitioning of raw materials to the delivery of the finished product.

Production. This phase involves the operation of changing the shape, composition or combination of materials, parts, or subassemblies to increase their value.

Product shipment and support. The final phase is to deliver to the customer quality products and services in a timely manner. This phase also provides complete support for the products.

IMPLEMENTING CIM

PREREQUISITE

CIM represents a complex environment, embodying all activities of designing,

making, and marketing a product. All firms need to be computerized to achieve a true

CIM environment.

Hardware

Parallel-processing-based hardware and fifth-generation computers are needed for

CIM to become widespread. Because of the interaction among numerous computers and

other devices, a local area network (LAN) is needed for each geographical location. If

the manufacturing business is carried out at different locations or in different countries,

the LANs must be connected to each other via wide area networks (WANs).

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CIM Software

CIM software is an integrated package containing as many individual programs

functionally amalgamated into one as possible. The CIM environment requires

application program that can be easily integrated. Typical CIM software should be able

to handle all major production tasks in conjunction with other business tasks. It should

be capable of:

Managing NC programs and their distribution, Shop-floor data collection, Interface to any NC/CNC system, Handling manufacturing management functions such as

prescheduling job flow and saving shop-edited programs, Electronic mailing throughout the plant and office, Creating database-accessible files using shop-floor data, and Working in varies operating environments (Dos, Unix).

CIM Workstations

Workstations are specialized computer systems that have tailored hardware and

software to carry out specific tasks more efficiently. Workstations are fast and have

sufficient memory to handle manufacturing tasks more efficiently.

Security and Computer viruses

PC-based systems and LANs, normally less security-controlled than the

mainframes, are more vulnerable. Companies need to ensure that end-user systems that

link PCs to the corporate computer cannot enter undesirable information. In addition, a

crisis management plan should be developed to help the CIM system recover in case of a

viral attack. Databases and other erasable components must be backed up.

IMPLEMENTING CIM TECHNOLOGY

To implement CIM technology, the following points should be focused:

Strategy for CIM, based on organization, partners and concept.CIM implementation is characterized by a sequential decision process that should consider technical assistance, organizational modifications, manufacturing techniques configuration, data processing technology needed, personnel qualification and acceptance of CIM by personnel.

Organization for CIM

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This is a special CIM team for leading CIM business in the company. This team deals with problems such as structuring the objectives, the definition of necessary guidelines or the translation of CIM concepts into reality. In reality, success of the CIM project is principally dependent on the capacities of the CIM team to overcome complex relations and to build appropriate representation models close to the CIM strategy.

Collaboration with partners.This includes the internal collaboration and the outside consultants, advisors, and suppliers of CIM components.

CIM Implementation Strategies

CIM is not generic. Each individual company has unique characteristics and is

subject to different external influences, each will require a different a different point of

balance between people and automation, and hence will require a different form of CIM.

Process

Figure 1 shows the process by which CIM maybe implemented.

Figure 1. The processes by which CIM maybe implemented (7).

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Mission Statement

Company’s Objectives

Strategies

Business Plan

Goals

Resources Allocation

Implementation Plan

Programs/Projects

Activities

The company first defines the business it wants to be in terms of the nature of the

products, and the market (i.e., mission statement). It then defines its desired future

positions in terms of growth, profitability, etc (i.e., company’s objectives). Strategies,

which outline the best way of achieving the objectives and accomplishing the mission,

given the constraints of the market and the resources of the company, are then set. These

strategies are elaborated upon in a business plan, which shows the specific targets to be

sought at specified points in time (i.e., goals), and an array of prioritized

programs/projects through which the goals are pursued and the strategies implemented.

Finally, funds, personnel, etc are allocated to the programs/projects (i.e., resources

allocation), and an implementation plan is created to ensure their successful

implementation.

Setting the Strategies

To achieve the objectives and accomplish the mission, the company must set three

strategies: the market, the product, and the manufacturing strategy. The manufacturing

strategy must be connected to the market and product strategies – it must be derived from

the latter and at the same time it must support and influence them. The latter must

themselves be closely coupled and their choice must be the results of careful analysis of

the external environment, the company’s objectives, and the strengths and weaknesses of

the company itself.

Developing the Plan

The process of developing and implementing CIM can be described in the

following eight discrete stages.

Project initiation. During this stage, the overall project organization and methodologies are established. Personnel are assigned to the project and trained in specialized techniques for developing a CIM plan.

Development of the company’s economic model. The model shows all the performance measures which can be related to the critical success factors and their relationships with the factors, and relationships between the critical success factors and business metrics such as price and market share.

“As-is” analysis. Analyses of the company’s current environment to provide the baseline for further analysis and improvement efforts.

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Needs analysis. An analysis conducted to identify the business functions, which could most effectively benefit from new technologies.

Selection and evaluation of improvement technologies. Alternative technologies that support the manufacturing objectives and are consistent with the manufacturing strategy are selected for evaluation against both economic and non-economic criteria.

Master plan. The total package of selected technologies with a specific request for expenditure is then submitted to top management. Once approved, it is converted into a master plan for implementation.

Incremental implementation. The master plan is implemented on a project-by-project basis, either starting with the projects that promise the highest returns, or with the least threatening projects and letting the implementers “steer” the culture and build confidence in the workforce.

Cost-benefits tracking. The actual costs incurred and the benefits attained are ascertained.

To facilitate the development of CIM plan, the following are required:

A progressive approach to integration. A recommended progressive approach to integration is to plan integration inside management functions, plan integration between management functions, and plan integration with external environment. The aim is to achieve not just process/operations integration, but also material flow, controls, and information integration.

A CIM reference model. The model gives the implementers a vision of how a company will operate in an integrated environment, and so helps them to avoid creating islands of automation and information.

Structured company model. Three types of company models should be built: the “as-is”, “should-be”, and the “to-be” models. The “as-is” models, which are models of the current company’s environment, are built first. They enable tuning of existing facilities via simplification and rationalization using such techniques as JIT, GT, plant layout, TQM, WITs, etc. Then, the “should-be” models, which not only implementing the recommendations of tuning exercise, but also comply with the stated company’s manufacturing objectives, are built. The “should-be” models form the basis of a CIM plan. They are used to identify functional requirements for advanced manufacturing technologies such as MRP II, FMS, AR/RS, CAD, CAM, DBMS, robotics, etc. From the “should-be” models, state-of-the-art technology, and the company’s idea of its future need, the “to-be” models are developed. They are models of the company’s future environment showing how

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things are to be done in the future with advanced manufacturing technologies.

Cost-benefits analysis. Cost-benefits analysis for advanced manufacturing technology projects may involve the following steps:

Step 1. Identify manufacturing functions and function groups.

Step 2. Identify all significant cost classifications.Step 3. Develop the “as-is” cost baseline.Step 4. Develop an “as-is” performance baseline.Step 5. Prioritize improvement potential.Step 6. Selection of technology alternatives,Step 7. Determine the “to-be” cost baseline for each

technology alternative being investigated.Step 8. Determine the “to-be” performance baseline for

each technology alternative being investigated.Step 9. Rank the technology alternatives.Step 10. Develop risk management plan.Step 11. Perform economic analysis.Step 12. Consider non-economic and strategic justification

factors.

Implementing the Plan

CIM plan is developed from top down, it is implemented from the bottom up.

The implementation of a technology project can be carried out in five stages:

Project leader selection. Once the technology projects have been selected and prioritized, a leader for each project is chosen. In any project, the best choice for project leader is the person who has the greatest chance of successfully complementing the project.

Project team formation. Once a project leader has been chosen, the necessary human resources for support should be provided. To select the appropriate people requires that the project be divided into manageable subtasks. The nature of the subtasks then defines who should be on the project team and what their responsibilities should be.

Project organization. Once the project team has been formed, its place in the organization structure must be decided. It allows the project team to draw on and interact with all the functional areas, thus maximizing representation and communication as is typically required with an advanced manufacturing project.

Project planning. The project leader is responsible for project planning which includes defining the tasks that will be required to implement the project, setting budgets and milestone schedules for each task, assigning responsibilities for

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accomplishing the tasks on time and within budget, and allocating resources.

Project control. The aim of project control is to ensure that the project is on schedule and within the budget and performance constraints. To achieve this aim, a project management information system should be set up to enable the project to be monitored through comparison of planned performance with actual performance.

Cost-Benefits Tracking

Cost-benefits tracking necessitates the capturing of data required monitoring the

status of the critical success factors, and also the identification of the sources of these

data. Once the required data are captured, the actual cost and performance baselines are

developed and are then compare to the “to-be” cost and performance baselines to identify

variances.

A Continuous Planning process

As things changed overt time, the CIM plan must be reviewed periodically to

reflect these changes. Within a few years, the implemented projects will be the subject of

a new “as-is” analysis, needs will have to be reassessed, and the plan reviewed.

Needs for Successful Implementation of CIM

CIM should be implemented from a position of strength, not weakness. The CIM

implementers need to decide whether the company is in a strong position to implement

CIM. Following are some prerequisites for successful implementation of CIM:

Top management involvement. Top management involvement is always a critical factor in any major change in an organization. They not only should be committed, but also be actively involved in CIM planning.

A knowledgeable work force. Knowledge of employees consists of skills, experience, and talent they bring to the company. All are highly relevant to CIM implementation.

A smooth normal functioning and highly readiness for CIM. The day-to-day operations of the company should normally be carried out in a planned thoughtful way rather than in a crisis mode.

An organizational culture conducive to CIM implementation. The implementation of CIM demands some cultural upheaval. This becomes a selling job for all management levels, accompanied with an unending education process for the work force.

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A supportive infrastructure. CIM requires an infrastructure considerably different from what exists in most companies today. So the organization of the company may have to be altered to make more effective use of the new technologies.

Adoption of industrial standards. Industrial standards, when widely adopted by vendors, generally lower the cost of systems and equipment. They increase the options for user when sourcing systems and equipment, and simplify the tasks of system development and integration. They facilitate ready accessibility and free flow of information and also allow for flexibility to make partial upgrades and replacements of integrated systems when new technologies appear (7).

CIM IMPLEMENTATION STRATEGIES (ANOTHER MODEL)

Establishing Objectives

The starting point for a CIM system is the strategic planning of the enterprise by top

management, project leaders, etc. The enterprise can orient itself according to one of

three general objectives:

Cost leadership Product variety Market position.

These generalized objectives are then rendered more operational in the subsequent

evaluation of concrete CIM sub-projects (process chains).

Definition of CIM process Chains

A user who wishes to implement CIM can start with CIM sub-chains once the

necessary framework has been defined. The choice of sub-chains depends on branch-

and factory-specific characteristics.

Sub-chain 1: Linking planning and control Sub-chain 2: Linking CAD and CAM Sub-chain 3: Linking master data management (product

description database) Sub-chain 4: Linking production control and CAM Sub-chain 5: Inter-company process chain (include PPC

integration and CAD/CAM integration) Sub-chain 6: Linking operative systems with accounting and

controlling systems.

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Implementation Paths:

Figure 2 represents implementation paths leads to the same global CIM

implementation.

Technical Data

Business data

CAD = Design/DevelopmentCAP = Process planning systemCAQ = Quality assuranceDNC = Cluster of several NC systemsMC = Manufacturing control system

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CAD-

NC

CAD-NC-

DNC

DNC-CAD-NC-PP

GlobalCIM

PP-CAD-NC-CAP

PP-ODC-CAQ-CAD

PP-ODC-MC-CAP

PP-ODC-MC-CAQ

PP-CAD-NC

PP-CAD-CAQ

PP-MC-ODC

PP-CAQ-

ODC

PP-CAD

PP-ODC

PP-CAQ

NC = NC programming systemODC = Operational data collectionPP = Production planning

Figure 2. Implementation Path (6)

For example, if the current problem is one of meeting a customer’s quality assurance

requirements (CAQ) the existing production planning and control system can be linked

with CAQ by adopting test plans (see lower shadowed path). Thereafter, this can be

linked with an operational data collection system for feedback of quality data. CAD is

then introduced in a subsequent step.

The current problem for another enterprise might be that of linking CAD with NC

programming, so as to shorten the delivery time on variant orders. The next step would

then be to introduce DNC and thereafter to reorganize production planning (see the upper

shadowed path).

More detailed model development could be seen in reference (6).

CONCLUSION

Due to the global competition and fast change customer requirements,

implementing CIM is beneficial. It could provide products with better quality, lower

costs, better support, and in a short lead-time.

Implementing CIM requires organizational and technical understanding and

strategic approach.

People at all levels should be educated and commit to the implementation of CIM.

Each individual company has unique characteristics and is subject to different

external influences, each will require a different a different point of balance between

people and automation, and hence will require a different form of CIM.

Implementation of CIM requires long-term effort and continuous improvement.

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BIBLIOGRAPHY

1. Dr. John W. Nazemetz, “Class Notes”, Lecture 2 Slides, 2000

2. Arthur L. Foston, Carolean L. Smith, & Tony Au, Fundamentals of Computer-

Integrated Manufacturing, Prentice Hall Inc., Englewood Cliffs, New Jersey, 1991.

3. John W. Clemons, "Successful CIM Projects: From Business Strategy to CIM

Strategy", Manufacturing Systems, Volume 9, Issue 11, pages 64-68, Wheaton, Nov.

1991.

4. Victor Sandoval, Computer-Integrated Manufacturing (CIM) in Japan, Elsevier,

Amsterdam-London-New York-Tokyo, 1994.

5. John S. Morris and Linda J. Morris, “Problems In CIM implementation: A Case

Study of Nine CIM Firms”, Computers ind. Engng., Volume 27, Nos. 1-4, pages 147-

150, 1994.

6. August-Wilhelm Scheer, CIM: Towards the Factory of the Future, Springer-Verlag,

New York, 1994.

7. C.L.Ang, “Planning and Implementing Computer Integrated manufacturing”,

Computers in Industry, Volume 12, Pages 131-140, 1989.

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