Understanding ISO’s Operations Management

By: Vincent Gaspersz, Lean Six Sigma Master Black Belt & Certified Management System Lead Specialist

One knowledge or concentration area of the 12 areas of knowledge published by IISE (Institute of Industrial and Systems Engineers) in September 2016 is: Operations Engineering & Management, which have been discussed in this facebook article:
https://www.facebook.com/vincent.gaspersz/posts/1668025553221616

Similarly, the minimum COMPETENCIES related to the APICS CPIM (Certified in Production and Inventory Management) exam has been discussed in this facebook article:
https://www.facebook.com/vincent.gaspersz/posts/1668143906543114

From those two sources of information, we can prepare a curriculum or self-study to improve the minimum COMPETENCIES in Operations Management.

In an Industrial Engineering and Management study program, a Production Management concentrated study program, and other study programs, the Operations Management course is a compulsory subject that MUST be taken during the learning processes of Bachelor’s, Master’s or Doctorate degree. If that study program ONLY gives passing grades WITHOUT guaranteeing minimum COMPETENCIES, then we, as an independent person, can honestly measure our COMPETENCIES to prepare ourselves when entering the workforce and/or to apply those COMPETENCIES in professional activities.

Knowing the importance of this Operations Management, the International Organization for Standardization has released ISO/IEC 62264-3:2016, entitled: Enterprise-control system integration – Part 3: Activity models of manufacturing operations management, that defines the models of manufacturing operations management activities; thus, enabling companies’ systems to control their existing integrated systems.

After having understood this ISO’s operations management, we would have had complete information to be able to develop curricula, course syllabi, or to independently prepare ourselves to achieve minimum COMPETENCIES expected based on international standards that will enable us to compete and/or cooperate with professionals from various countries in the world. Such model will be far more EFFECTIVE and EFFICIENT, than just by collecting some textbooks and then studying independently from those textbooks or by putting together the content of a curriculum and/or syllabus through simply extracting what is considered important in the contents of those textbooks. This kind of learning framework does NOT have international standards. If we do NOT refer to International Standards, even if we have the highest (maximum) GPA in Operations Management, that does NOT guarantee that we already have had the minimum COMPETENCIES in Operations Management.

Struktur ISO/IEC 62264-3:2016

The framework or content of ISO/IEC 62264-3:2016 is as follows:

CONTENTS

FOREWORD

INTRODUCTION

1. Scope
2. Normative references
3. Terms, definitions and abbreviations
   1. Terms and definitions
   2. Abbreviations
4. Structuring concepts
   1. Activity models
   2. Manufacturing operations management
5. Structuring models
   1. Generic template for categories of manufacturing operations management
      1. Template for management of operations
      2. Use of the generic model
      3. Generic activity model
   2. Interaction among generic activity models
      1. Information flows between generic activity models
      2. Handling resources within the generic activity models
      3. Scheduling interactions
   3. Hierarchy of planning and scheduling
   4. Resource definition for scheduling activities
      1. Consumed resources and non-consumed resources
      2. Resource capacity and availability
6. Production operations management
   1. General activities in production operations management
   2. Production operations management activity model
   3. Information exchange in production operations management
      1. Equipment and process specific production rules
      2. Operational commands
      3. Operational responses
      4. Equipment and process specific data
   4. Product definition management
      1. Activity definition of product definition management
      2. Activity model of product definition management
      3. Tasks in product definition management
      4. Product definition management information
   5. Production resource management
      1. Activity definition of production resource management
      2. Activity model of production resource management
      3. Tasks in production resource management
      4. Production resource management information
   6. Detailed production scheduling
      1. Activity definition of detailed production scheduling
      2. Activity model of detailed production scheduling
      3. Tasks in detailed production scheduling
      4. Detailed production scheduling information
   7. Production dispatching
      1. Activity definition of production dispatching
      2. Activity model of production dispatching
      3. Tasks in production dispatching
      4. Production dispatching information
   8. Production execution management
      1. Activity definition of production execution management
      2. Activity model of production execution management
      3. Tasks in production execution management
   9. Production data collection
      1. Activity definition in production data collection
      2. Activity model of production data collection
      3. Tasks in production data collection
   10. Production tracking
       1. Activity definition of production tracking
       2. Activity model of production tracking
       3. Tasks in production tracking
   11. Production performance analysis
       1. Activity definition of production performance analysis
       2. Activity model of production performance analysis
       3. Tasks in production performance analysis
7. Maintenance operations management
   1. General activities in maintenance operations management
   2. Maintenance operations management activity model
   3. Information exchanged in maintenance operations management
      1. Maintenance information
      2. Maintenance definitions
      3. Maintenance capability
      4. Maintenance request
      5. Maintenance response
      6. Equipment-specific maintenance procedures
      7. Maintenance commands and procedures
      8. Maintenance results
      9. Equipment state-of-health data
   4. Maintenance definition management
   5. Maintenance resource management
   6. Detailed maintenance scheduling
   7. Maintenance dispatching
   8. Maintenance execution management
   9. Maintenance data collection
   10. Maintenance tracking
   11. Maintenance performance analysis
8. Quality operations management
   1. General activities in quality operations management
      1. Quality operations management activities
      2. Quality operations scope
      3. Quality test operations management
      4. Types of testing
      5. Testing locations and times
      6. Quality systems
   2. Quality test operations activity model
   3. Information exchanged in quality test operations management
      1. Quality test definitions
      2. Quality test capability
      3. Quality test request
      4. Quality test response
      5. Quality parameters and procedures
      6. Test commands
      7. Test responses
      8. Quality-specific data
   4. Quality test definition management
   5. Quality test resource management
   6. Detailed quality test scheduling
   7. Quality test dispatching
   8. Quality test execution management
      1. General
      2. Testing
   9. Quality test data collection
   10. Quality test tracking
   11. Quality test performance analysis
       1. General
       2. Quality resource traceability analysis
       3. Quality indicators
   12. Supported activities
9. Inventory operations management
   1. General activities in inventory operations management
   2. Inventory operations management activity model
   3. Information exchanged in inventory operations management
      1. Inventory definitions
      2. Inventory capability
      3. Inventory requests
      4. Inventory response
      5. Inventory storage definitions
      6. Inventory commands
      7. Inventory replies
      8. Inventory-specific data
   4. Inventory definition management
   5. Inventory resource management
   6. Detailed inventory scheduling
   7. Inventory dispatching
   8. Inventory execution management
   9. Inventory data collection
   10. Inventory tracking
   11. Inventory performance analysis
10. Completeness, compliance and conformance
    1. Completeness
    2. Compliance
    3. Conformance

1. Annex A (informative) Technical and responsibility boundaries
   1. General
   2. Scope of responsibility
   3. Actual responsibility
   4. Technical integration
   5. Defining solutions
2. Annex B (informative) Scheduling hierarchy
3. Annex C (informative) Frequently asked questions.
   1. Does this standard apply to more than just manufacturing applications?
   2. Why are the models more detailed for production operations management than for the other categories?
   3. What are some of the main expected uses of this standard?
   4. How does this standard relate to enterprise-control system integration?
   5. How does this facilitate connection to ERP systems?
   6. Why is genealogy not discussed?
   7. Why are only some information flows shown?
   8. What industry does the standard apply to?
   9. What is the relation between this standard and MES?
   10. How does the QA (quality assurance) element in IEC 62264-1 relate to this standard?
4. Annex D (informative) Advanced planning and scheduling concepts for manufacturing operations management
   1. General
   2. Fundamental technologies of APS
   3. Decision-making functions of APS

Bibliography

From the ISO/IEC 62264-3:2016 framework of Operations Management above, we know that someone who has minimum COMPETENCIES in Operations Management MUST understand well the following key topics:

• Structuring concepts of Operations Management
• Structuring models of Operations Management
• Production operations management
• Maintenance operations management
• Quality operations management
• Inventory operations management
• Completeness, compliance and conformance

The main topics in Operations Management of ISO/IEC 62264-3:2016 above should be studied thoroughly in study programs that have a concentration area of Operations Management, whether in two or three semesters. Therefore, we would NOT just be adding other topics outside of the main topics above, where the learning from these additional topics is NOT COMPLETE and is touching only on the surfaces of definitions and some general concepts that do NOT support minimum COMPETENCIES in Operations Management.

Jika kita menganggapmasih ada waktu pembelajaran dan ingin menambah topik-topik tambahan, maka seyogianya ditambah dengan topik-topik yang sangat relevan dan berkaitan erat dengan Operations Management itu, misalnya menambah pembelajaran tentang Key Performance Indicators (KPIs) dalam Operations Management versi ISO 22400-2:2014 dengan judul: Automation systems and integration — Key performance indicators (KPIs) for manufacturing operations management — Part 2: Definitions and descriptions, yang akan dibahas berikut ini.
If we consider that there is still time to learn and we want to add additional topics, then we should add our learning with those topics that are very relevant and closely related to Operations Management. For example, we would learn more about Key Performance Indicators (KPIs) in Operations Management ISO 22400-2:2014 entitled: Automation systems and integration – Key performance indicators (KPIs) for manufacturing operations management – Part 2: Definitions and descriptions, which will be discussed below.

ISO 22400-2:2014 Framework (Content)

Foreword

Introduction

1. Scope
2. Conformance
3. Normative references
4. Terms and definitions
5. Symbols (and abbreviated terms)
6. Component elements of KPIs
   1. Time Descriptions
      1. Notations
      2. Planned periods
      3. Actual times
   2. Time model for production units
   3. Time model for manufacturing order
   4. Time model for employment
   5. Logistical quantities
      1. Order quantity (POQ)
      2. Wastage quantity (SQ)
      3. Planned wastage quantity (PSQ)
      4. Good quantity (GQ)
      5. Rework quantity (RQ)
      6. Produced quantity (PQ) quantities
   6. Organizational quantities
      1. Work sequence (OS)
      2. Operation (AG)
      3. Working group (AGR)
      4. Workplace (WP)
      5. Manufacturing order (PO)
      6. Machine (MA)
      7. Production unit (PU)
   7. Quality figures
      1. Good parts (GP)
      2. Inspected parts (IP)
      3. Arithmetic Average
      4. Average of average values
      5. Upper limit value (ULV)
      6. Standard deviation (s)
      7. Estimated value
      8. Lower limit value (LLV)
      9. Variance
7. Specific KPIs
   1. Worker productivity
   2. Allocation degree
   3. Throughput
   4. Allocation efficiency
   5. Efficiency
   6. OEE (Overall Equipment Effectiveness) Index
   7. NEE (Net Overall Equipment Effectiveness) Index
   8. Availability
   9. Effectiveness
   10. Quality Rate
   11. Preparation degree
   12. Technical Usage Level
   13. Wastage Degree
   14. First Pass Yield (FPY)
   15. Wastage Ratio
   16. Reworking Ratio
   17. Fall off Rate
   18. Machine Capability Index (Cm)
   19. Critical Machine Capability Index (Cmk)
   20. Process Capability Index (Cp)
   21. Critical Process Capability Index (Cpk)
   22. Environmental compatibility KPIs
       1. Selection of environmental KPIs
       2. Emission ratio
       3. Energy ratio
       4. Ratio of used material
       5. Harmful substances
       6. Hazardous waste
   23. KPIs for energy consumption
       1. Comprehensive Energy Consumption
   24. KPIs for inventory handling and management
       1. Inventory turns
   25. KPIs for input-output (quality of manufacturing process)
       1. Finished Goods Rate
       2. Integrated Goods Rate
       3. Production Lost Rate
       4. Storage and Transportation Lost Rate
       5. Other Lost Rate
   26. KPIs of Load Rate
       1. Equipment Load Rate

Bibliography

Daftar Referensi

• IISE 2016., The Industrial Engineering Body of Knowledge, Institute of Industrial and Systems Engineers, Georgia, USA.
• ISO 2014., ISO 22400-2:2014. Automation systems and integration – Key
  performance indicators (KPIs) for manufacturing operations management –

• Part 2: Definitions and descriptions, Geneva, Switzerland.
• ISO. 2016., ISO/IEC 62264-3:2016. Enterprise-control system integration – Part 3: Activity models of manufacturing operations management, Geneva, Switzerland.
• http://www.apics.org/credentials-education/credentials/cpim