Espen Rød
email: espen.rod@himolde.no

Mikhail Shlopak
email: mikhail.shlopak@himolde.no

Gabriele Hofinger Junge
email: gabriele.h.junge@himolde.no

Erlend Alfnes
email: erlend.alfnes@ntnu.no

Buyer-Supplier Information Sharing in ETO

Keywords: SCM, Information sharing, Buyer-supplier relationship

This paper presents a case study of the information sharing practices in a buyer-supplier relationship of companies that deliver products to the global maritime industry. The main research question is whether improving the quality of shared information between buyer and supplier will enhance information utilization by the supplier and improve the operational efficiency of both companies. The case study describes the process of analyzing the information flows between the buyer and the supplier and the utilization of the shared information by the supplier. Our main focus was on analyzing information quality and information utilization, and finding solutions to improve the information sharing practices between the two companies.

Introduction

The many different manufacturing environments are commonly distinguished using the following categories: make-to-stock (MTS), assemble-to-order (ATO), make-to-order (MTO), and engineer-to-order (ETO). All of these manufacturing strategies relate to the point at which a particular product is linked to a specific customer [START_REF] Olhager | Strategic Positioning of the Order Penetration Point[END_REF]. The ETO-supply chain is generally regarded as a supply chain where the 'decoupling point' is located at the design stage, while in MTO the 'decoupling point' is at the fabrication and procurement stage. ETO companies can be categorized by supplying high value, customized products with a deep and complex structure [START_REF] Hicks | Supply Chain Management: A Strategic Issue in Engineer to Order Manufacturing[END_REF].

The case companies are a Norwegian ETO company (hereinafter, Company A), and one of its suppliers which can be characterized as MTO (hereinafter, Company B). Company A delivers capital-intensive, advanced products in low volumes to customers in the global maritime industry, and the production can be regarded as ETO. Company B supplies company A with components and can be considered as an MTO company. The relationship between the two companies is affected by uncertainties with regard to demand, which increases the need for collaborative planning and information sharing throughout the supply chain.

The case companies' goals were to reduce the time between Company A ordering the components from Company B and the delivery to Company A, and to reduce inventory levels at both companies. The project's participants decided to approach these problems by analyzing information-sharing practices between the two companies.

The research question in the present paper is whether improvement of the quality of shared information will increase its utilization and hence affect operational efficiency in buyer-supplier relationships.

The purpose of this paper is to illustrate a method of analyzing and improving information flows in a buyer-supplier relationship in an MTO-ETO environment.

Theoretical Background

The literature presents several areas related to supply chain management, with an emphasis on information sharing, particularly topics such as information quality (IQ) and information utilization (IU). Literature focusing on information sharing in the automotive industry has also been reviewed.

Information sharing is often mentioned as an important factor in the successful creation of supply chains. According to [START_REF] Prajogo | Supply Chain Integration and Performance: The Effects of Long-term Relationships, Information Technology and Sharing, and Logistics Integration[END_REF], both information and material flow integration are important for supply chain integration, and have significant effects on performance. According to [START_REF] Croom | Information Sharing and Supply Chain Performance[END_REF], large investments in IT could fail to produce expected benefits if they are not supported by a willingness to share required information. The two main reasons why information is not utilized are the ability and the willingness to utilize the information. The utilization of information is influenced by IQ and inter-and intra-organizational factors [START_REF] Jonsson | Supply Chain Information Utilization Conceptualization and Antecedents[END_REF].

Information shared between customers and suppliers is used to facilitate manufacturing, planning, and control activities at the companies; according to [START_REF] Wiengarten | Collaborative Supply Chain Practices and Performance[END_REF], companies cannot expect high returns from their collaborative initiatives in terms of improved operational performance unless the exchanged information is of high quality.

There are four facets to information sharing: content, frequency, direction, and modality. The facets describe the actual information, while information utilization refers to what the shared information is used for (production scheduling, resource planning, etc.) [START_REF] Jonsson | Supply Chain Information Utilization Conceptualization and Antecedents[END_REF][START_REF] Mohr | Communication Strategies in Marketing Channels: A Theoretical Perspective[END_REF].

[8] defined IQ as the "ability to satisfy stated and implied needs of the information consumer", and considered that the stated IQ requirements are according to planning restrictions, policies and procedures, and the implied needs of the staff. In this relation, an IQ deficiency is defined as "deviation between stated and implied needs and perceived information quality" [START_REF] Gustavsson | Assessing Information Quality in Manufacturing Planning and Control Processes[END_REF]. IQ dimensions are well defined in the literature, although different notions are used to refer to them. [START_REF] Forslund | Measuring Information Quality in the Order Fulfilment Process[END_REF] used "in time," "accurate," "convenient to access," and "reliable," while [START_REF] Gustavsson | Assessing Information Quality in Manufacturing Planning and Control Processes[END_REF] used "complete," "concise," "reliable," "timely," "valid," "accessible," "appropriate amount," "credible," "relevant," and "understandable." According to [START_REF] Jonsson | Supply Chain Information Utilization Conceptualization and Antecedents[END_REF] reliability and credibility are related to the accuracy of information; relevance and validity are related to the value of information; conciseness, understandability, and appropriate amount are related to the format of information; and completeness, accessibility, and timeliness are related to the availability of information.

[5] also identified different levels of information utilization: (1) utilization as potential usage (potential to use the information in the receivers processes); (2) utilization as intended usage (intention and ability to use the received information); (3) utilization as actual usage (the information is actually being used in the process); and (4) utilization as efficient and effective usage (the information has a positive impact on the receiver's planning process performances).

Jonsson and Myrelid's [START_REF] Jonsson | Supply Chain Information Utilization Conceptualization and Antecedents[END_REF] analysis of information sharing, quality and utilization in the automotive industry showed that the producer had five different information entities shared with the supplier. The supplier mainly utilized one of these entities -the delivery schedule -which contained three periods of orders: forecasts, planned orders and frozen orders. The supplier, in turn, developed a production plan consisting of one preliminary planning period and frozen planning period. Similar examples of planning and supply chain management in the automotive industry have been reviewed; see [START_REF] Staeblein | Planning and Scheduling in the Automotive Industry: A Comparison of Industrial Practice at German and Japanese Makers[END_REF][START_REF] Meyr | Supply Chain Planning in the German Automotive Industry[END_REF].

Research Methodology

This paper presents a case study of two companies: a Norwegian producer of advanced capital-intensive products to customers in the global maritime industry, and a major supplier. The literature on information sharing was reviewed, with primary focus on information quality and information utilization. We have especially emphasized an article by Jonsson and Myrelid [START_REF] Jonsson | Supply Chain Information Utilization Conceptualization and Antecedents[END_REF], which used cases from the automotive industry, to develop the steps for improving information sharing practices. Based on an initial literature study, the authors conducted several workshops with participants from the companies and these workshops have been the main source of data collection. The workshops were the arena for discussions, which facilitated the introduction of changes in practices in the two companies.

Analysis

Keeping in mind the identified goals in the improvement of the relationship between the two companies, we started by mapping all of the information flows between them. We then categorized all information flows with regard to the facets of information sharing. The next step was to identify what the information that Company B receives is used for, and what processes the company performs based on the received information. The fourth step was to identify information quality deficiencies that hinder Company B in performing its processes. The last step was to suggest improvements in information flows and information quality adapted to Company B's processes.

Steps 1 and 2: Mapping and Categorization of Information Flows

We identified five different information flows related to production and delivery of components from Company B to Company A (Table 1).

Step 3: Information Utilization

Having identified all of the information flows between Company A and Company B, the next step was to identify what processes Company B performed based on the shared information. [START_REF] Jonsson | Supply Chain Information Utilization Conceptualization and Antecedents[END_REF] distinguished among four levels of information utilization. Given that the main point of this step was to identify the actual usage of information, we focused on Levels 3 (information as actual usage) and 4 (information as efficient an effective usage).

In the workshops we identified that Company B conducted two planning processes: one was long-term capacity and resource planning and the other was production planning. To execute the long-term capacity and resource planning, Company B used the main production plan it received from Company A. To execute production planning, Company B used the purchase orders and a list of components with changed delivery dates. The planning activities were done in separate computer systems.

Step 4: Identify Information Quality Deficiencies

We used Gustavsson and Wänström's [START_REF] Gustavsson | Assessing Information Quality in Manufacturing Planning and Control Processes[END_REF] definition of information quality deficiency ("deviation between stated and implied needs and perceived information quality") to analyze the quality of the shared information.

From the previous steps, all information flows were mapped and the actual usage of these flows was identified. In Step 4, the information flows should be evaluated from an IQ perspective. We have chosen all 10 of the dimensions presented by [START_REF] Gustavsson | Assessing Information Quality in Manufacturing Planning and Control Processes[END_REF]. By using these, the analysis covers the accuracy, value, format and availability of information [START_REF] Jonsson | Supply Chain Information Utilization Conceptualization and Antecedents[END_REF]. The IQ dimension was evaluated based on the definitions of each of the dimensions by [START_REF] Gustavsson | Assessing Information Quality in Manufacturing Planning and Control Processes[END_REF], which are presented in Table 2.

Table 2. Definitions of IQ dimensions [START_REF] Gustavsson | Assessing Information Quality in Manufacturing Planning and Control Processes[END_REF]

IQ dimension Definition

Complete

The extent to which the information is comprehensive for the planning tasks.

Concise

The information can be used directly, without needing to be reworked before use, in terms of format, content and/or structure.

Reliable

The extent to which the information provided to the planning staff is accurate.

Timely

The extent to which the information is delivered on time and at correct intervals; that is, not too often or too seldom for the planning process.

Valid

The extent to which the information measures what it should measure.

Accessible

The extent to which the information is easy to access when required.

Appropriate amount

The extent to which filtration of the information is necessary.

Credible

The extent to which information is accepted or regarded as true, real, and believable.

Relevant

The extent to which the information is appropriate for the tasks and applications.

Understandable

The extent to which information is easy to use, but also easy to learn and easy to manipulate, aggregate, and combine with other information.

In our case the IQ was analyzed on three of the information entities. The two entities -"meetings" and "spontaneous" -were excluded as these would vary and are not directly connected to the planning tasks. The IQ dimensions 'valid', 'accessible', 'credible', 'relevant' and 'understandable' were all regarded as having good enough quality on all three information entities for the supplier to perform its processes.

In summary, five IQ dimensions did not fulfil the stated and implied needs and perceived information quality on all or some of the information entities: complete, concise, reliable, timely, and appropriate amount. An overview of the analysis of IQ deficiencies is presented in Table 3.

Step 5: Improving Information Flows and Information Utilization

In order to maximize utilization of the shared information, we addressed the current processes at Company B. The long-term capacity and resource planning that Company B performed was based on the main production plan received from Company A. The production planning was done using information from the purchase orders and the list of changed dates. The five identified IQ deficiencies were all preventing Company B from performing its processes in the best possible way. In order to increase IU, the IQ in the dimensions concise, reliable, timely, and appropriate amount needed to be improved.

The companies were positive about changing their routines, including both information sharing practices and the connected planning activities. Even though the case companies produce in much smaller volumes than car manufacturers, similarities between them were found, and best practice from the automotive industry was a basis for changing the information sharing practices and connected planning tasks. In the example from the automotive industry, the shared delivery schedule contained three periods of order: forecasts, planned orders, and frozen orders. The supplier then developed a production plan consisting of a preliminary planning period and a frozen planning period. Through several workshops involving company representatives and researchers, improvements were made to the current information sharing processes. Consideration was given to improving the IQ dimensions that were considered to be lacking quality and how this would affect the information utilization by Company B.

The main production plan that was previously shared was developed into containing three periods. One category comprised all forecasts and planned ders up to a certain point before delivery. Then there was an extended period of orders that could be considered slushy orders, which at a certain point before delivery date would be called off by a purchase order. The last period was frozen orders confirmed by a purchase order.

The list of forecasts and planned orders replaced the previous main production plan. Because of increased IQ, Company B was able to replace the previously used long-term capacity and resource plan by incorporating the information it contained in its current production planning tool. By doing this, the information sharing entities have been reduced from three to two, and the processes at Company B have been reduced from two to one (Table 4). An analysis of the information quality showed an increase in the quality in several of the dimensions. The IQ dimensions complete, timely, and appropriate amount were improved. Two IQ dimension were not able to satisfy the stated and implied needs and perceived information quality. Although it had been improved, the concise dimension was not regarded well enough because the supplier still needed to type in all the information into its planning system. Since these companies operate in a dynamic environment, and changes in product specifica-tions and delivery dates are very likely to occur in the planning phase on longer terms, the reliable dimension also had deficiencies which are difficult to eliminate as flexibility is considered a competitive advantage.

Conclusions

This paper an analysis of the information sharing practices between a Norwegian ETO and MTO company. For this purpose, a step-by-step procedure to analyze and improve information sharing practices in buyer-supplier relationships was used. The procedure was as follows: (1) map information flows;

(2) categorize the information; (3) identify information utilization; (4) identify information quality deficiencies; and (5) improve information flows and information quality adapted to the supplier's processes. By using this procedure the companies were able to improve the information quality of the shared information, and by adjusting connected planning processes, they also increased the information utilization of the information at the supplier.

Table 1 .

 1 Information flows (AS-IS)

		Facets of information sharing
		Content		Frequency		Direction	Format
	Shared information
	Main production plan # of compo-	Approx. 1 per	To supplier	E-mail -MS
		nents	each	month		Excel
		week in the
		year
	Purchase orders	PO, including	2 months be-	To supplier	E-mail -PDF
		delivery date	fore delivery
				date
	List of changed orders List of com-	Every	two	To supplier	E-mail -MS
		ponents with	weeks		Excel
		new date
	Meeting	Wrecks, devi-	Once a month Two-way	Meeting
		ations, general
		situation
	Spontaneous	Miscellaneous Spontaneous Two-way	Telephone, E-
						mail, meetings

Table 3 .

 3 Information quality deficiencies

	Shared Information	Main production plan	Purchase order	List of changes
	IQ dimension
	Complete	No,	not	Yes		Yes
		rolling hori-
		zon
	Concise	No,	rework	No, must be typed	No, must be typed
		needed		into system	into system
	Reliable	No, frequent	No, frequent changes	No, frequent changes
		changes	of dates		of dates
	Timely	No, too few	No,	non-specific	No, not at reliable in-
		updates,	times		tervals
		and different
		times
	Valid	Yes		Yes		Yes
	Accessible	Yes				Yes
	Appropriate	No, much re-	Yes		Yes
	amount	work
	Credible	Yes		Yes		Yes
	Relevant	Yes		Yes		Yes
	Understandable Yes		Yes		Yes

Table 4 .

 4 Improved information quality dimensions

	Shared information	List of forecast and planned orders	Purchase Order
	IQ Dimension
	Complete	Yes, rolling horizon	Yes
	Concise	No, still need to be typed in,	No, still need to be typed
		but more tailored to plan-	into system
		ning process
	Reliable	No, dynamic environment	Yes, closer to delivery date,
		causes changes	fewer changes
	Timely	Yes, every 14th day	Yes, once a week
	Valid	Yes	Yes
	Accessible	Yes	Yes
	Appropriate amount Yes, only relevant informa-	Yes
		tion
	Credible	Yes	Yes
	Relevant	Yes	Yes
	Understandable	Yes	Yes


Niko Siltala
email: niko.siltala@tut.fi

Eeva Järvenpää
email: eeva.jarvenpaa@tut.fi

Minna Lanz
email: minna.lanz]@tut.fi

Formal Information Model for Representing Production Resources

Keywords: production resource model, production resource description, production system design, Reconfigurable Manufacturing System, RMS, XML

This paper introduces a concept and associated descriptions to formally describe physical production resources for modular and reconfigurable production systems. These descriptions are source of formal information for (automatic) production system design and (re-)configuration. They can be further utilized during the system deployment and execution. The proposed concept and the underlying formal resource description model is composed of three different description levels, namely Abstract Resource Description (ARD), Resource Description (RD) and Resource Instance Description (RID), each having different scope and objectives. This paper discusses in details the content and differences between these description levels.

Introduction

The requirements on production systems are continuously being shifted towards higher flexibility and adaptability. Increasing volatility in the economies, shortening innovation and product life cycles, and ever increasing number of variants, call for production systems, which comply with these changing demands. There is a need for rapidly responding production systems that can timely adjust to the required changes in processing functions and production capacity. System reconfiguration is required on three levels: physical, logical and parametric [START_REF] Elmaraghy | Flexible and reconfigurable manufacturing systems paradigms[END_REF]. System reconfiguration is the enabler for re-use and sustainability of production resources.

Despite the high efforts towards reconfigurable production systems and standardization activities focusing on unification of mechanical as well as communication and control interfaces, reconfiguration of assembly systems is still rare in real factories. The usual business today, when the product model changes, is to scrap the existing resources and build a new assembly system from a scratch. This is due to high engineering, integration, and programming efforts and skills needed to re-configure the existing system, as well as uncertainties related to the needed effort. One of the main reasons for infeasibility of reconfiguration is the lack of sufficient and accurate information about the production resources, and their capabilities associated to the current system, its life cycle, and usage history [START_REF] Järvenpää | Capability-based Adaptation of Production Systems in a Changing Environment[END_REF]. In addition to Hardware (HW) and Software (SW) interfaces, efficient methodologies, tools and information models are needed to support planners and engineers in the reconfiguration process, and also to allow logical and parametric reconfiguration to take place autonomously while the system is running.

The European Commission funded project ReCaM [START_REF]ReCaM -Rapid Reconfiguration of Flexible Production Systems through Capabilitybased Adaptation, Auto-configuration, and Integrated tools for Production Planningproject[END_REF], started in November 2015, aims to find solutions for the above mentioned issues. It targets to develop a set of integrated tools for rapid and autonomous reconfiguration of production systems, integrated with the existing production planning and scheduling tools -MES. The ReCaM approach is based on intelligent plug-and-produce capable self-describing Mechatronic Objects (MOs), which are able to auto-program and self-adjust to the required task. The formal resource descriptions are proposed to capture comprehensively and thoroughly the characteristics of a production devices, providing a foundation for rapid creation of new system configurations.

The objective of this paper is to open the insights of the resource description model and its formal resource descriptions. The paper is organized as follows: Section two discusses other existing resource description models. Third section represents the proposed three level resource description model. Finally, section four discusses the future developments and concludes the paper.

Existing Production Resource Descriptions

There exist some device related descriptions, however having a slightly different focus. Electronic Device Description Language (EDDL) [START_REF] Merget | The electronic Integration of Field Devices[END_REF][START_REF]Function blocks (FB) for process control -Part 3: Electronic Device Description Language (EDDL)[END_REF][START_REF]FDI Cooperation: Electronic Device Description Language[END_REF] and its continuation Field Device Integration (FDI) [START_REF] Neumann | Field device integration[END_REF][START_REF]FDI Cooperation[END_REF] are used to describe process automation components, having focus on lower level elementary components. The various fieldbus device descriptions for e.g. Prodibus/-Net, DeviceNet and EtherCAT, all fall into same category, having focus even lower level components and configurations for control systems.

Contrary, AutomationML [START_REF]2014 Engineering data exchange format for use in industrial automation systems engineering -Automation markup language -Part 1: Architecture and general requirements[END_REF][START_REF]Automation ML[END_REF][START_REF] Lüder | Description of manufacturing processes using AutomationML[END_REF] has focus in system integration and representation. The basic assumption of the AutomationML is that the templates of modules are injected to the system description, but they are always customised and modified extensively for the project's purposes. This means that the modules are not stable and reusable entities, but are engineered or customised over and over again. Furthermore, the concept requires that the internal design and implementation of a module is revealed extensively and completely for the system design. Nevertheless, the generality of the approach brings the expression power for this concept. It is more probable that the same concept can cover all unexpected situations arriving in realistic production system design landscape. In context of AutomationML, there exist some publications representing aspects of re-usable components like [START_REF] Lüder | Manufacturing system engineering with mechatronical units[END_REF] with mechatronic units and [START_REF] Bartelt | More than a Mockup -SmartComponents: reusable fully functional virtual components from scratch[END_REF][START_REF] Schyja | From Conception Phase up to Virtual Verification Using AutomationML[END_REF] with SmartComponents. These both get close to objectives of the work reported in this paper, having the main difference on harmonisation of capabilities, not having abstraction layer present and encapsulation of resource's Intellectual Properties and implementation. This paper is refining and extending the earlier work reported in [START_REF] Siltala | Emplacement and Blue Print-An approach to handle and describe modules for Evolvable Assembly Systems[END_REF][START_REF] Siltala | Emplacement and Blue Print -Electronic Module Description Supporting Evolvable Assembly Systems Design, Deployment and Execution[END_REF][START_REF] Siltala | Use of electronic module descriptions for modular and Reconfigurable Assembly Systems[END_REF] and summarizes the core models from [START_REF] Siltala | Formal Digital Description of Production Equipment Modules for Supporting System Design and Deployment[END_REF].

Proposed Production Resource Description Model

Resource description concept is a comprehensive XML-based digital representation of a technical entity. It integrates together information of a production resource related to functional, geometrical, mechanical, communication and control aspects. It allows giving a description of resources' functionality including capabilities; interfaces to other resources; parameters related to business, environment and technical characteristics; and life cycle related information. Resource description concept is a roof term and encapsulates detailed parts of descriptions, namely Abstract Resource Description (ARD), Resource Description (RD) and Resource Instance Description (RID), and their interrelations. Figure 1 describes the relation between the three main parts of the model (Resource Description Model part). In addition, figure shows the link to the Capability Model. The Capability Model, its application, and how it is combined with Resource Description Model are discussed more in details in [START_REF] Järvenpää | Formal Resource and Capability Descriptions Supporting Rapid Reconfiguration of Assembly Systems[END_REF]. Figure 3 provides more detailed view of different resource descriptions and their content.

Abstract Resource Description

Abstract Resource Description (ARD) is an abstraction and a reference model for production resources. It forms an abstract digital specification and generalisation for a collection of similar kind of production resources (e.g. grippers, feeders, glue dispensers, welding devices, etc.). In other words, ARD is a generalisation, which can be specialised as a physical production resource. The objective of ARD is to enable compatibility, interchangeability and connectivity between different production resources, through harmonisation and grouping of interfaces specifications across different types of resources. For example, the task of ARD is to ensure that a robot can be connected to a base, and that a gripper can be connected to a robot, and interchanged with another gripper. The purpose of ARD is to provide harmonisation over RDs and its content is controlled by a user group(s) or standardisation bodies.

ARD cannot be directly instantiated as a physical resource, but it is composed of one or more Profiles (See Figure 1), which are reflecting production resources. Profile is an integral and inseparable part of ARD and cannot exist alone outside of ARD. Profile defines a reusable construction block of definitions, a structure which is used to specify the detailed section of an ARD. It includes information related to interfaces, capabilities, properties and other features that are composing the generalisation for a set of production resources. This way the information is defined only in one place, which then can be referenced and re-used in other parts of the descriptions. This improves the quality and consistency of the descriptions, as e.g. typing or mishaps related errors can be reduced, consistency of information can be increased, and the maintenance of descriptions is facilitated.

Two kinds of Profiles exist -abstract and implementable ones, but only the latter can be instantiated as RD and its physical implementation. A Profile can be built from N other Profiles with concepts of inheritance or referencing. Figure 2 provides an example of inheritance hierarchy in case of Gripper ARD. The content of Profile characterises the module, and can be used for comparison, evaluation, and selection purposes. Included interfaces and capability definitions are the enablers for mating and fitting the devices together, and making sure that the composition of production modules is able to provide requested functionality for the production task. The interfaces include comprehensive information from mechanical and electrical to service and communication. Generally, it captures all information needed for connecting a production module to other ones or to external world. As a rule, Profiles are introducing the existence and purpose of Properties, but not yet fixing the property values. This provides harmonisation and predictability across the RD definitions, which are later setting the values for these properties.

The Gripper ARD and its Force controlled 2-finger gripper Profile are used as a practical example. It provides an illustration of re-use, construction block behaviour (i.e. define only once), and use of the two types of Profiles. Figure 2 illustrates this example and aforementioned characteristics of Profiles. Each rectangle is a Profile entity. The rectangles with white background and italics are abstract Profiles, of which physical module cannot be created of, and ones with grey background are implementable Profiles, from which the production modules and corresponding RD can be created of. The implementable Profile of our interest is at bottom, highlighted with thicker boarder. The main advantage of Profile concept is coming from inheritance. The Profile Force controlled 2-Fig. 2. Example of Profile inheritance finger gripper could define all its features within a single Profile, but instead it is inheriting features from totally seven other Profiles. Directly it inherits another implementable Profile Simple 2-finger gripper and one abstract Profile prof.gripper.actions.finger.forceCtrl.1. In turn, the Profile Simple 2-finger gripper is inheriting four other abstract Profiles, and so on. The effective advantages are gained when other Profiles are added, like prof.gripper.2-finger_positionCtrl.1.

Resource Description

Resource Description (RD) is a digital representation of a real, physical production resource. It is the main description in this model as it describes the details associated to a specific type of HW resource, used for production as a part of a production system. The description is common to all same kind of resources i.e. resources having the same vendor, model, type and version. It is defined and distributed by the module provider, and it serves both as advertisement and source of detailed information for system integration and resource usage.

RD represents the catalogue information and a bit more about the resource. First, it contains a reference to the ARD and Profile of which this resource claims to implement. This can be used for validation, interoperability and interchangeability purposes. Secondly, in contrast with ARD, RD provides values for the properties defined in ARD / Profiles. Furthermore, it provides the vendor information; functional description and related parameter values (i.e. relation to Capability Model); physical properties (mass, centre of gravity and energy consumption); technical, business and environmental properties; interface port information including type and gender, spatial location, force and torque limits, and kinematics; CAD models, manuals and documentation; and test and calibration routines. These are illustrated in Figure 3, which provides a detailed view of the three different resource descriptions and their content.

The different RDs are intended to be available on-line, like the ARDs as well. Thus, a web service [START_REF]Emplacement Web Service[END_REF] is made available in order to demonstrate a solution to share and distribute these information, and make searches from it. The web service is discussed in [START_REF] Siltala | A web tool supporting the management and use of electronic module descriptions for Evolvable Production Systems[END_REF].

Resource Instance Description

Condition and capabilities of the resources evolve during their individual life cycles and usages. Resource Instance Description (RID) is a digital representation of an individual physical instance of a resource. It carries the resources' current state and historical data events -it is an accumulating information storage. It appends the RD with information that cannot be generalised over all instances of the same resource type, but is specific to one instance only. For instance, if the capability or life cycle parameters (such as Mean Time Between Failure (MTBF) or tolerances) are changed during the resource life cycle, the RID will contain the updated information. The RID should travel all the time with the physical production resource.

Example Instances of Resource Description Model

Table 1 summarises the characteristics of different top level descriptions composing the Resource Description Model, by connecting these with compacted definition and an illustrative example of each description. ARD represents specific technologies such as grippers, axis -systems or feeders, and collect all associated Profiles together. Profile provides generalised specification of specific kind of entities, such as 2-finger grippers. These are the parts composing a single ARD. Type: T1 gripper w/ serial: SN123

RD turns focus to the module providers (vendor V A ). They provide a detailed description of their module (third row in Table 1). This description respects the definitions made in aforementioned Profile and ARD. Finally, when vendor V A produces physical entity of such gripper of type T1, they assign a serial number to this piece of HW and create a RID for it (fourth row in Table 1).

Discussion and Conclusions

This paper presented an overview of a three level model to describe production resources. This model and descriptions can be utilised in various phases of Reconfigurable Manufacturing System (RMS) production system design, reconfiguration and commissioning. How to apply these models is discussed in [START_REF] Siltala | Formal Digital Description of Production Equipment Modules for Supporting System Design and Deployment[END_REF]Ch.7].

In the due course of the ReCaM project, there are already identified improvements and new requirements related to the production resource descriptions. These are: a) further development, synchronisation, and tighter integration with the Capability model; b) detailed definition of Executable Capability concept, i.e. interfaces for the controls and SW services; c) improvements on mechanical interface description in relation to interfaces connecting the resource to the produced items; d) including generalised Graphical User Interface (GUI) definitions into descriptions, from which resource specific GUIs can be generated automatically; and finally, e) editors for creating and modifying the resource description files. These improvements are in progress. There is interest to research if this model, especially RD, could be translated to format of AutomationML. The presented models and proposed improvements will be validated during the ReCaM project.

Fig. 1 .

 1 Fig. 1. Main parts of the Resource Description Model and connection to Capability model. A concrete production resource (device) is represented at right bottom.

Fig. 3 .

 3 Fig. 3. Resource Description Model

Table 1 .

 1 Comparison of main entities of Production Resource Model

	Entity Definition	Example
	ARD is container for Profiles	Grippers ARD
	Profile is description of abstract module and part of	Abstraction of a 2-finger gripper
		ARD.
	RD	is digital representation of physical module.	2-finger gripper from vendor VA
		Derived from one Profile	w/ type: T1
	RID	is digital representation of a specific module
		instance.

Acknowledgement

This research has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement no 680759 [3].


Pavan Quan Yu
email: quan.yu@ntnu.no

Kumar Sriram
email: pavan.sriram@ntnu.no

Erlend Alfnes
email: erlend.alfnes@ntnu.no

Jan Ola Strandhagen
email: ola.strandhagen@ntnu.no

RFID Integration for Material Management Considering Engineering Changes in ETO Industry

Keywords: RFID, ETO, Engineering changes, Material management

Radio Frequency Identification (RFID) is a type of auto-identification technique developed in 1950s. However, its wide applications in manufacturing industries does not start until early 2000s. Discussions about applications of RFID in Engineer to Order (ETO) industry have been raised since mid-2000s. Over a decade's technical development, it is becoming a common view that RFID is an important part of Cyber Physical Systems, Internet of Things, or Industry 4.0. Although researchers have started discussion about RFID applications in ETO industry, it is not well addressed that how RFID can be applied for the material management with respect to engineering changes (ECs), which has strong impacts on an ETO company. This paper reviews RFID applications in ETO industry and gives suggestions on how an RFID system can be integrated in an ETO company? How has RFID been utilized for material management under engineering changes? And what is the general framework of RFID in material management in ETO industry?

Introduction

Radio Frequency Identification (RFID) is one of auto-identification techniques developed in 1950s, which has increasing applications in manufacturing industries as a decisive data collection approach since 2000s [START_REF] Günther | The Role of Manufacturing Execution Systems[END_REF]. Discussions about applications of RFID in Engineer to Order (ETO) industry have been raised since later-2000s [START_REF] Ergen | Life-cycle Data Management of Engineered-to-Order Components Using Radio Frequency Identification[END_REF], and still continue [START_REF] Pero | RFID Technology for Increasing Visibility in ETO Supply Chains: A Case Study[END_REF] partially because the benefits of applying RFID in ETO industry are obscured regarding higher initial investment than general barcode systems. Discussions on benefits of RFID application in supply chain started from mid 2000s [START_REF] Uckelmann | Strategic Benefit Potentials of RFID Application in Supply Chains[END_REF][START_REF] Vance | An Empirical Investigation of the Potential of RFID Technology to Enhance Supply Chain Agility[END_REF][START_REF] Chen | Supply Chain Management with Lean Production and RFID Application[END_REF]. As barcode technology is a well-accepted identification approach in manufacturing companies for quite a long time, it is not a one-step process to use RFID as a substitution. Concurrent operation for RFID and barcode has been systematically studied [START_REF] Schmidt | RFID and Barcode in Manufacturing Logistics: Interface Concept for Concurrent Operation[END_REF]. Furthermore, an RFID system is a front-end system for data accessing rather than an alternative of an ICT system for resource management. Thereby, RFID is often discussed with ICT system together [START_REF] Günther | The Role of Manufacturing Execution Systems[END_REF][START_REF] Knolmayer | SAP Systems for Supply Chain Management[END_REF][START_REF] Canetta | RFID-ERP Key Data Integration Challenges[END_REF]. It will not be economical and even feasible solution to use RFID without the integration with an ICT system. Additionally, it is quite often for an ETO company to have engineering changes due to high probability of design and production changes; while efficient material management can provide an opportunity to increase competitiveness because materials account for 50-60 percent of total project costs [START_REF] Sriram | Understanding Key Engineering Changes for Materials Management in ETO Environment[END_REF]. This paper reviews applications of RFID in ETO industry, mainly focusing on material management and gives suggestions of utilizing RFID for material management under engineering changes, which provides a reference for ETO industry to implement RFID technique.

RFID technique and characteristics

RFID uses a wireless non-contact radio system to transfer data from a tag attached to an object, for the purposes of identification and tracking. In such a system, RFID tags are attached to physical objects, which are wirelessly interrogated by antennas powered by RFID readers. Tags respond with some identifying information that may be associated with arbitrary data records, which makes an RFID system as a type of auto-identification system. Multiple readers and antennas are commonly used to build an RFID system as shown in Fig. 1.

Fig. 1. A general RFID system

Main characteristics of RFID include non-line-of-sight data access and rewriteable on-chip data, which enable functionalities of remote and batch accessing, real-time accessing on-chip memory such as data retrieving, appending, erasing and protecting. In an RFID system, it is the RFID tag that is utilized as the data carrier, while other devices are used for accessing, transferring and managing the on-chip data. The working distance and the cost of an RFID tag depends on the working frequency and the additional power supply with the RFID tag. Characteristics can be compared as shown in Table 1

Material management under engineering changes in ETO

ETO is a strategy for manufacturing one-of-a-kind products (OKP) [START_REF] Adrodegari | Engineer-to-Order (ETO) Production Planning and Control: An Empirical Framework for Machinery-Building Companies[END_REF]. ETO companies are faced with the increasing complexity of products, production structures and processes [START_REF] Váncza | Cooperative and Responsive Manufacturing Enterprises[END_REF]. ETO environment is characterized mostly by large and complex products which are designed and produced by customers' requirements. Products in this type of supply chain are required in low quantities and sometimes in medium volumes, but generally they contain a diversity of components in a complex combination. Each component should be assigned to specific operation in the production. Engineering changes are considered as a major obstacle to the delivery of the product in ETO environment. Four main factors effecting engineering change are identified, including unidentified change propagation, knowledge management, distributed environment and capacity and congestion [START_REF] Sriram | Understanding Key Engineering Changes for Materials Management in ETO Environment[END_REF].

Material planning which also named as material management concerns balancing supply and demand by initiating, controlling and monitoring of production and purchasing orders to allow the efficient material flow going without interruptions throughout the production. Overall task of material planning process is to ensure material availability at the right stage of production and at the right time. To do so material planning uses bill of materials, inventory data, and data from master production schedule in order to determine time-phased plans for all components and raw materials required for production. Material planning process includes broad set of tasks and activities like planning required materials, sup-plier selection, purchasing, inventory management and forecasting. Therefore, this process is not only simple computer calculations but also it includes an effective communication mechanisms, education activities and training programs. The material planning process starts when the order is received, materials specifications and materials coding systems are established and bill of materials is created. In order to link bill of materials with process structure, each component in the bill of materials should be assigned to specific operations in the production.

Having a supply chain with large number of suppliers creates even greater need for an effective and efficient management of material flow, as it is required to take into account deliveries of numerous components from different suppliers [START_REF] Sriram | Designing a Performance Measurement System for Materials Management Under Engineering Change Situations in ETO Environment[END_REF]. The material management starts when the order is received, materials specifications and materials coding systems are established and bill of materials is created. Material management uses bill of materials, inventory data, and data from master production schedule in order to determine time-phased plans for all components and raw materials required for production, including broad set of tasks and activities like planning required materials, supplier selection, purchasing, inventory management and forecasting.

Applications of RFID in ETO industry

The earliest application of RFID in ETO industry was component tracking, similar as in other industries. RFID was tested in construction industry for tracking components from a precast storage yard to a construction site [START_REF] Ergen | Tracking and Locating Components in a Precast Storage Yard Utilizing Radio Frequency Identification Technology and GPS[END_REF] and providing a reference for maintenance service [START_REF] Ergen | Life-cycle Data Management of Engineered-to-Order Components Using Radio Frequency Identification[END_REF]. In addition, researchers used RFID for managing life-cycle data of ETO construction components [START_REF] Yin | Developing a Precast Production Management System Using RFID Technology[END_REF]. Based on component tracking, main RFID applications occurred in ETO fields including item management [START_REF] Desselles | RFID Enabled Material Management at US Ship Building Industry[END_REF], lead time estimation [START_REF] Zhong | Estimation of Lead Time in the RFID-Enabled Real-Time Shopfloor Production with a Data Mining Model[END_REF], and operation times estimation [START_REF] Zhong | Mining SOTs and Dispatching Rules from RFID-Enabled Real-Time Shopfloor Production Data[END_REF]. Shop floor monitoring was another commonly used in for manufacturing industries [START_REF] Leung | Development of a Real-Time Collaborative Process Planning Management System for the Mould Industry[END_REF][START_REF] Leung | A Real-Time Hybrid Information-Sharing and Decision Support System for the Mould Industry[END_REF][START_REF] Poon | An Efficient Production Material Demand Order Management System for a Mould Manufacturing Company[END_REF].

As mentioned above, processes integration has considerable potential to improve performance of an ETO company [START_REF] Canetta | RFID-ERP Key Data Integration Challenges[END_REF][START_REF] Hicks | Supply Chain Management: A Strategic Issue in Engineer to Order Manufacturing[END_REF]. An ICT system is vital to implement RFID in material management. Regarding this point, ubiquitous work systems [START_REF] Husejnagić | A Conceptual Framework for a Ubiquitous Autonomous Work System in the Engineer-To-Order Environment[END_REF] and current ERP system adaption [START_REF] Nakayama | Production Planning and Control in Small Engineer-to-Order Companies: Understanding Difficulties and Pragmatic Approach[END_REF] are studied by researchers to improve ETO production from the ICT perspective.

RFID is a decisive technique to enhance the performance of an MES/ERP. Regarding the integration of RFID with an MES/ERP, applications can generally cover identifying objects, realization of online interfaces, intra-enterprise logistics, quality management, access and attendance control and shop floor control [START_REF] Günther | The Role of Manufacturing Execution Systems[END_REF][START_REF] Canetta | RFID-ERP Key Data Integration Challenges[END_REF][START_REF] Wang | A Radio Frequency Identification-Enabled Real-Time Manufacturing Execution System for One-of-a-Kind Production Manufacturing: A Case Study in Mould Industry[END_REF]. ERP system has developed interface for RFID data transmission [START_REF] Knolmayer | SAP Systems for Supply Chain Management[END_REF].

Ship building is another section where RFID is used for material management [START_REF] Desselles | RFID Enabled Material Management at US Ship Building Industry[END_REF], ship block positioning during the assembly [START_REF] Lee | Application of Sensor Technology for the Efficient Positioningand Assembling of Ship Blocks[END_REF][START_REF] Jeong | UHF RFID Tag Antenna for Embedded Use in a Concrete Floor[END_REF] and safety management [START_REF] Yun | Development of Industrial Safety Management System for Shipbuilding Industry Using RFID/USN[END_REF]. Besides implementation studies, researchers also focused on factor analysis in adoption process of vertical supply chains [START_REF] Quetti | Factors Affecting RFId Adoption in a Vertical Supply Chain: The Case of the Silk Industry in Italy[END_REF]. RFID also contributes in information sharing between different actors i.e. clients and suppliers within the supply chain [START_REF] Pero | RFID Technology for Increasing Visibility in ETO Supply Chains: A Case Study[END_REF].

RFID integration framework

To successfully implement RFID in an ETO environment, it is the first and foremost thing that integrating the RFID with the management system. Although standards are being established and interfaces are provided by commercial software, e.g. the Auto-ID infrastructure of SAP and BizTalk server for Microsoft Dynamics AX, they are relatively focused on business processes. Regarding complex requirements under high engineering changes probability, it is more important to embed the engineering related information in the RFID tag from the management system, other than the identification of the tracked item. However, this step is always performed by the RFID system provider without knowing well about the ETO process, which produces a large gap between a local test and the global feasibility. Performance indicators for Materials Management were proposed under engineering change [START_REF] Sriram | Designing a Performance Measurement System for Materials Management Under Engineering Change Situations in ETO Environment[END_REF] as shown in Fig. 2, providing a reference for the intervention of an RFID system. According to performance indicators in Fig. 2, five RFID modules are expected especially for material management considering ECs as described in Table 3. To setup an error-free data updating mechanism, and ensure all confirmed changes are synchronized both in tag and database Tracking and tracing (delivery reporting) Especially for real-time delivery reporting, giving a clear picture of current state to decision makers Among five modules above, data synchronizing needs more attention because it ensures the timely and accurate information before any decision is made. As distributed environment is one of the most important factors effecting EC [START_REF] Sriram | Understanding Key Engineering Changes for Materials Management in ETO Environment[END_REF], local ECs must be reported and updated in time for all relevant processes, so that misoperations can be avoided.

Hereby, RFID integration principles are proposed as a reference for designing an RFID system regarding engineering changes in ETO environment.

1. Evaluate components with high engineering changes probability. 2. Select suitable RFID devices according to characteristics of monitored components. 3. Main parameters related to engineering changes, suppliers and clients must be defined and pre-allocated in RFID tags referring performance indicators for Materials Management. 4. RFID data must be accessible both online and offline. Synchronization mechanism should be designed considering the network availability. 5. Authorize shared information in accordance with role of partners, i.e. suppliers and clients. On-chip data should be segmented so that they are visible to relevant partners.

Conclusions

RFID is becoming a promising technology and draws increasing attention with the improvement of technical performance and reliability. However, regarding complex engineering changes in ETO industry, material management always needs a tailor-made technical solution, so that RFID technique needs to be adapted and integrated to the ICT system to achieve the efficient management and maximum benefits. Current researches are still mainly focusing on components tracking and locating at the shop floor level. To be noticed, it is a trend to involve information sharing via RFID system. However, it cannot be ignored that the engineering changes connect component monitoring and information sharing process, and related information must be reflected in the RFID tag via management system to improve the production performance.

Fig. 2 .

 2 Fig. 2. Performance indicators for Materials Management under ECs (based on[START_REF] Sriram | Designing a Performance Measurement System for Materials Management Under Engineering Change Situations in ETO Environment[END_REF]) and relevant RFID modules

Table 1 .

 1 . Characteristics of passive RFID systems working at different frequencies

				Data	RFID
				Power	Tag
		RFID Reader	Antenna	Interrogation Zone
				Data	RFID
				Power	Tag
	Host	Ethernet	Antenna	Interrogation Zone RFID Data
		RFID Reader		Power	Tag
			Antenna	Interrogation Zone
	Middleware			Data	RFID
				Power	Tag
		Handheld Reader	Interrogation Zone

Table 2 .Table 2 .

 22 Applicability of RFID

	Decision level	Applicability
	Strategic level	Information sharing
		Increasing visibility
	Tactical level	Tracing and tracking
		Decentralized data storage
		Life-cycle management
		Lead time reduction
	Operational level	Far/near field identification
		Real-time locating system (RTLS)
		Processing history recording
		Automated item registration
		BOM recording
		Maintenance history recording

Table 3 .

 3 RFID modules for material managment

	Module	Description
	eBOM updating	Designed for eBOM tag, which keeps detailed BOM and
		revision history
	Customized parame-	Aim at special orders, which stores order specified engi-
	ters	neering parameters, suppliers, customers, etc.
	Material dependency	To record dependencies between orders/materials, for a
		quick lookup if ECs happen
	Data synchronizing


Sangsu Choi
email: sangsu.choi@igiamerica.com

Gyhun Kang
email: gyhun.kang@igiamerica.com

Jung Kiwook
email: kiwook.jung@nist.gov

Boonserm Kulvatunyou
email: boonserm.kulvatunyou@nist.gov

Applications of the Factory Design and Improvement Reference Activity Model

Keywords: Smart manufacturing systems design and analysis, Cyber-physical systems, Factory design and improvement, Manufacturing enterprise integration

Developed countries and global manufacturing enterprises are leading the way for developing smart manufacturing systems (SMS) to improve competitiveness and possibly make technological breakthroughs. SMS is based upon the integration of information and communication technology with manufacturing technology; and all the heterogeneous technologies must be seamlessly connected. However, there is a lack of guidance in what technologies should be deployed and how they may be used. This paper introduces a reference activity model and describes various ways in which it can be used as guidance for deploying smart manufacturing technology.

Introduction

The world is now going through another industrial revolution where manufacturing enterprises will reach a new level of interconnectivity both within their production environments and throughout their business value chains. Examples of work towards this vision are seen world-wide including Industry 4.0 in Germany, Industrial Internet Consortium in the United States, Robot Strategy in Japan, and Manufacturing 2025 in China [START_REF] Kang | Smart Manufacturing: Past Research, Present Findings, and Future Directions[END_REF]. The core of the current industrial revolution is the development of smart manufacturing systems (SMS). SMS emphasize the integration of core technologies, such as, sensors, cyber-physical systems (CPS) [START_REF] Lee | A Cyber-physical Systems Architecture for Industry 4.0based Manufacturing Systems[END_REF], additive manufacturing, sustainable manufacturing, Information and Communication Technologies (ICT), cloud computing, big data, hologram, and cyber security with infrastructure components (such as, standards, regulations, organizations, and trainings) [START_REF] Kang | Smart Manufacturing: Past Research, Present Findings, and Future Directions[END_REF]. This paper introduces a Factory Design and Improvement (FDI) model as a reference activity model and describes how it can be used as a guide to develop a SMS. The activity model provides a high-level view that helps to integrate the core technologies of SMS with components in a manufacturing enterprise.

Smart Manufacturing Systems

Figure 1 shows a SMS concept [3] where all manufacturing enterprise functions including materials management, productions, logistics, services, and products are connected on a network as a unified system and the production is controlled through a CPS. A CPS consists of virtual factory models that are connected with the real world and are continually exchanging information with enterprise software through distributed software services (a.k.a. the Internet of Services or IoS) and with distributed devices and equipment (a.k.a. the Internet of Things or IoT or more specifically Industrial Internet of Things -IIoT). Analyses from the CPS can produce dynamic plans for optimally controlling the entire production process. Standards are important to enable such a CPS-based SMS [START_REF] Kibira | Analysis of Standards Towards Simulation-Based Integrated Production Planning[END_REF][START_REF] Lu | Current Standards Landscape for Smart Manufacturing Systems[END_REF] and new standards are needed to connect various IoT and IoS technologies. In the IoT sector, ISO/IEC 30141 [6] was proposed by China to define a reference structure for IoT. IEEE 802.24 [7] is also a representative standard activity. The 'IEC SG8 Industry 4.0 -Smart Manufacturing' [8] strategic group, comprised of members mainly from Europe and United States, is working on IEEE P2413 -Standard for an Architectural Framework for the Internet of Things (IoT). The group is leading the way for the first international standard for an IoT architectural framework. OneM2M [START_REF] Coskun | Open M2M data-Position Paper[END_REF] was established to improve Machineto-Machine (M2M) communication standards that are inconsistent globally due to variances in different regions. In the IoS sector, standards are being enhanced based on representative functional systems under use in manufacturing enterprises. The maturity of standards in this sector are relatively high. For product life-cycle management (PLM), STEP 242 [START_REF] Feeney | A Portrait of an ISO STEP Tolerancing Standard as an Enabler of Smart Manufacturing Systems[END_REF] is the representative standard, while for supply chain management (SCM) and enterprise resource planning (ERP), OAGIS [11] is used as a standard. For MES, ISA-95 [12] are used. On the other hand, IEC 62264 Enterprise-Control Integration [13] is used for integration across these functional systems.

3 Factory Design and Improvement Model FDI, developed by the National Institute of Standards and Technology (NIST), formalizes activities, enterprise software functions, and information relevant to operation design and management tasks in a SMS, such as that shown in Figure 1. FDI is based upon the work processes [START_REF] Choi | The Integrated Design and Analysis of Manufacturing Line (I)-Digital Virtual Manufacturing Based on Automated Modeling & Simulation System[END_REF][START_REF] Choi | The Integrated Design and Analysis of Manufacturing Line (I)-Digital Virtual Manufacturing Based on Automated Modeling & Simulation System[END_REF] common to global manufacturing enterprises in the areas of factory, manufacturing line, process, and equipment operations. It currently consists of four activities and twenty-eight tasks. The top-level activities are illustrated in Figure 2. Details of the FDI can be found in [START_REF] Jung | An Activity Model for Smart Factory Design and Improvement[END_REF].

FDI is modelled using IDEF0, where tasks are represented and related via Inputs (data), Outputs (products and performance measures), Controls (organization), and Mechanisms (tools/systems), collectively called ICOMs as is shown in Figure 2. Information inter-connectivity between tasks is expressed through these ICOMs. FDI tasks encompass both factory design and improvement tasks. Factors related to both cyber and physical systems of a SMS can be reflected in this model. FDI encompasses all control levels as described in the ISA-88 reference control architecture [17] from the equipment level up to the enterprise level. Thus, the FDI model is suitable for identifying information requirements for standard-based integration between software tools across control levels [START_REF] Choi | An Analysis of Technologies and Standards for Designing Smart Manufacturing Systems[END_REF]. -Tool for assessing current capabilities of a manufacturing enterprise in terms of digital information flows for operations planning -Basis for guiding the development of interoperability and integration technology within the operational environment.

Work Guideline

As previously mentioned, the FDI model provides an overview of the operational processes in a global manufacturing enterprise involving the factory, manufacturing line, manufacturing processes, and equipment. The model can be used to guide the analysis of performance measures, organizations, tools, systems and related data. As such, the FDI model can be used as a work guideline when designing or operating factories.

For example, the FDI model breaks down the design activity into basic and detailed design tasks. A factory development project following this break down resulted in a better delivery time because plant engineering and construction could start earlier without having to wait for all the design details to be completed [START_REF] Choi | The Integrated Design and Analysis of Manufacturing Line (I)-Digital Virtual Manufacturing Based on Automated Modeling & Simulation System[END_REF][START_REF] Choi | A Diagnosis and Evaluation Method for Strategic Planning and Systematic Design of a Virtual Factory in Smart Manufacturing Systems[END_REF]. The FDI model can also be used when adopting systems and tools to a specific workplace. A case of work guideline is described in Table 1.

SMS Assessment

The ICOMs identified in FDI enable assessment of SMS readiness levels (SMSRL). SMSRL evaluate a factory in four dimensions: organization, ICT, performance management, and information connectivity as shown in Figure 3. Consolidating these four dimensions into a single measure creates a maturity index reflecting a manufacturer's readiness to deploy smart manufacturing solutions or to participate in a network of smart manufacturers.

The output of the SMSRL model can be used in two different ways. The first is to identify and prioritize which smart manufacturing initiatives a manufacturer should undertake to have the greatest impact on operational performance. For example, based 2 shows the recommendation for the area of improvement focus given the SMSRL value. The second use of the output is to provide criteria for selecting a supplier to be included in a supply chain. When designing and assembling a supply chain, understanding each supplier's smart manufacturing readiness level can better inform sourcing decisions, resulting in overall improved performance.

Data Interoperability and Integration for SMS

Schemas for enabling information interoperability between the FDI-defined tasks are under development. These schemas take into account not only the FDI tasks and data, but also relevant performance indicators and information connectivity. Based on these schemas, cases have been published where various heterogeneous software were seamlessly integrated in a SMS's cyber system [START_REF] Choi | Digital Manufacturing in Smart Manufacturing Systems: Contribution, Barriers, and Future Directions[END_REF]. As shown in Figure 4, the schemas consist of four major components related to product, process, resource, and plant data. The product data component represents information about the products and components produced by a plant. The resource data component represents information about the manufacturing equipment, manpower, and material handling system(s) (MHS). The process data component represents information on each process and the relationship between processes. The plant data component represents factory operation information and information on the factory's construction, such as the relations among the products, processes, and resources, and the facility configuration and master plan. The schemas are being refined to expand the scope of factory's physical and cyber systems connectivity. The adoption of the FDI as a work guide line (as described in 4.1) along with the deployment of the integrated system based on the illustrated schema resulted in significant reductions in times required for a new factory development/improvement projects as well as operational performance improvements. In particular, the deployment in the electromechanical component factory resulted in the reduction in the combined time to complete critical project activities, which included layout design, capacity analysis and material flow analysis, from 6 weeks to 1.5 weeks in the new factory development case and from 4 weeks to 1 week in the factory improvement case [START_REF] Choi | The Integrated Design and Analysis of Manufacturing Line (I)-Digital Virtual Manufacturing Based on Automated Modeling & Simulation System[END_REF]. A breakdown of how these improvements affected factory performance is summarized in Table 3.

Conclusions

This paper introduced FDI as reference activity model for enabling a SMS. Three applications of the FDI were described including as a work guideline, as a basis for maturity assessment of SMS, and as a specification for information requirements of a CPS-based SMS integration schema. While FDI tasks were designed as an abstract representation of the work involved in factory design and improvement, they may be further decomposed to reflect the more specific tasks within a particular factory. Validation of this approach is ongoing. The model is also being improved based on the development of the SMS maturity assessment by considering other assessment models, such as, MESA Manufacturing Operation Management Maturity Model [21] and the Supply Chain Readiness Level [START_REF] Tucker | SCRL-model for Human Space Flight Operations Enterprise Supply Chain[END_REF]. Currently, a Web system to enable the SMSRL self-assessment is under development. Also, research on artificial intelligence (AI) is being conducted in order to extract the optimized recommendations from the model. Disclaimer: Any mention of commercial products is for information only; it does not imply recommendation or endorsement by NIST.

Fig. 1 .

 1 Fig. 1. The concept of SMS (Source: [3])

Fig. 2 .

 2 Fig. 2. IDEF0 model of the 'Develop/Update a Factory' activity (Source: [16])

Fig. 3 .

 3 Fig. 3. SMSRL' four categories

Fig. 4 .

 4 Fig. 4. Conceptual model of the interoperable schema

Table 1 .

 1 A case: 'verify process throughput'

	ICOM	Factors	Description
	INPUT	Information	Product Info. Production schedule, Equipment Info., Labor Info.
	OUTPUT	Performance Indexes Lead time, cycle time, WIP, Production output
		Work process	PLM-based work process
		Methodology	DMAIC, PDCA
	CONTORL	People	Process designer, Process manager
		Technology	Stochastic method, Discrete event simulation
			Simulation in DM
	MECHANISM Tools / System functions	E-BOM, M-BOM management in PLM
			Production planning in ERP

Table 2 .

 2 High-level recommendation

	SMSRL Range Performance Category Improvement Focus
	0-0.33	Financial Operational	IT Information Connectivity
	0.33-0.78	Financial Operational	Organization Inconclusive
	0.78-1	Financial Operational	IT Information Connectivity

Table 3 .

 3 Effectiveness of FDI Application to Factory Performance (Source:[START_REF] Choi | The Integrated Design and Analysis of Manufacturing Line (I)-Digital Virtual Manufacturing Based on Automated Modeling & Simulation System[END_REF][START_REF] Choi | Digital Manufacturing in Smart Manufacturing Systems: Contribution, Barriers, and Future Directions[END_REF])

		Improvement of factory performance
		Cost index	Productivity index	Capacity index
	New factory development	25%	25%	12%
	Existing factory improvement	20%	20%	9.20%
			Reduction in project time
		Layout design Material flow analysis Capacity analysis
	New factory development	55%	50%	35%
	Existing factory improvement	40%	45%	-


Yan Li

Maria Holgado

Steve Evans

Business Model Innovation in State-owned and Private-owned Enterprises in China

Keywords: Business Model, Business Model Innovation, Private-owned enterprise, State-owned enterprise, China

The aim of the paper is to identify the complexity of policy execution, investment and financial support between state-owned and private-owned enterprises in China. Based on the literature review of business model innovation, and current situation of private-owned and state-owned enterprises in China, there is a lack of evidence and case analysis in the power of policy execution and the version of future development between two kinds of industries. The authors conducted qualitative research in four typical industries. Two of them are private-owned and the others are state-owned. The research aims to make a specific comparison between two kinds of industries in China.

Introduction

Over the past decade, market competition has become fiercer, especially at a global scale, with an enormous percentage of large-scale enterprises facing a great challenge for surviving, let alone small and medium companies. High market competition together with sustainability-related social, legal, political and economic requirements has increased the importance of corporate sustainability strategies [START_REF] Schaltegger | Business Cases for Sustainability: The Role of Business Model Innovation for Corporate Sustainability[END_REF]. Ultimately, business model innovation emerges as a significant concept for supporting value creation and improving the core competitiveness for companies. It is especially relevant in current moments of economic distress [START_REF] Zott | The Business Model: Recent Developments and Future Research[END_REF].

Business model innovation, however, may not represent something easy or straightforward to be realized as often implies a remarkable change to get the innovated "revolution" adopted in the enterprise. Additionally, the possibilities and capacity to perform the business model innovation may differ for different types of companies. Organizational culture and structure would influence the process and outcomes of innovations targeting companies; business model [START_REF] Bock | The Effects of Culture and Structure on Strategic Flexibility During Business Model Innovation[END_REF]. In this regard, small and medium companies may lack the necessary resources already in place to perform the innovation but, on the contrary, may be more agile to reach rather than large companies. An unexplored potential difference on the approach towards business model innovations is also present when considering different types of ownership, i.e. state-owned versus private owned enterprises.

This study focuses on China due to its particular region that offers the possibility to understand whether these two types of ownership influence the barriers and opportunities for business model innovations. Concretely, the aim of this article is to explore what are the explicit differences between state-owned enterprise and private-owned enterprises in nurturing a business model. Reviewing the existing literature and conducting empirical research based on case studies carried out this exploratory study. The contribution of this paper is to perform a comparison on current business innovation initiatives in Chinese companies, with a focus on the complexity of policy execution, the investment and the leader's contribution in business model innovation and the external financial support.

Background

Business Model Innovation

The emergence of the business model concept is associated with the advent of internet and initially used in corporate practice [START_REF] Zott | The Business Model: Recent Developments and Future Research[END_REF][START_REF] George | The Business Model in Practice and its Implications for Entrepreneurship Research[END_REF]. Since then, there are many suggested definitions of business models [START_REF] Zott | The Business Model: Recent Developments and Future Research[END_REF], most of them sharing a common focus on value creation and the close connection with the concept of value.

The business model has three core components: the value proposition, the value creation and delivery system, and the value capture [START_REF] Richardson | The Business Model: An Integrative Framework for Strategy Execution[END_REF]. Identifying these core components would help industry to build a successful business model. An effective business model would lead to a successful company, as referring to the business model analysis, executives identify all of the constituent parts and understand how the model fulfills a potent value proposition in a profitable way [START_REF] Johnson | Reinventing your Business Model[END_REF]. The economic value of a technology will not be fully generated until it's commercialized with a business model [START_REF] Chesbrough | Business Model Innovation: Opportunities and Barriers[END_REF].

The key of most successful business models is to develop of a 'powerful, focused customer value proposition'. In turn, this requires 'a comprehensive understanding' of your target customer's 'job-to-be-done' [START_REF] Leavy | A System for Innovating Business Models for Breakaway Growth[END_REF]. A strength of business model as a planning tool is that it focuses on how the elements fit into a whole system [START_REF] Magretta | Why Business Models Matter[END_REF]. In Chesbrough's [START_REF] Chesbrough | Business Model Innovation: It's Not Just About Technology Anymore[END_REF] research, business model performs two important functions: value creation and value capture. It defines a series of activities, from procuring raw materials to satisfying the final consumer, which generates a new product or service. In such a way, net value will be created throughout the various activities [START_REF] Chesbrough | Business Model Innovation: It's Not Just About Technology Anymore[END_REF] .

The main reasons for innovating a business model are related to create and acquire more value as well as to address new customers or societal requirements. Every new product development should be joined with the development of a business model, which is defined as 'going to market' and 'capturing value' strategies [START_REF] Teece | Business Models, Business Strategy and Innovation[END_REF]. The business model innovation refers to creating or reinventing something new or different in doing business [START_REF] Björkdahl | Business Model Innovation:The Challenges Ahead[END_REF]. In other words, at least one constitution element of current business model is changed [START_REF] Eurich | A six-step approach to business model innovation[END_REF]. At this stage, Velu [START_REF] Velu | Business Model Innovation and Owner-Managers: The Moderating Role of Competition[END_REF] explained business model innovation can "redefine what a product or service is, how it is provided to the customer, and how it is monetized". Therefore, busi-ness model innovation can change the mode of competition through altering the performance metrics [START_REF] Danneels | Disruptive Technology Reconsidered: A Critique and Research Agenda[END_REF].

Business model seems easy to imitate in a superficial level. Nevertheless, in practical, implementing a business model may need systems, processes and assets, which is difficult to replicate. Furthermore, a level of opacity may exist that makes it difficult to understand how a business model works in detail. Thirdly, incumbents in the industry may be reluctant to cannibalize existing profits or upset other necessary business relationships [START_REF] Teece | Business Models, Business Strategy and Innovation[END_REF].

State-owned and Private-owned Enterprise

Since the late 1970s, China's economy has undergone reforms. The market-oriented reforms are placed instead of a more planned economy; the private sectors are expanded in China afterwards. Since 1990s, urban areas are selected to restructuring the state-owned enterprise, which is privatization. Since then, the "modern enterprise system" is started [START_REF] Nolan | Beyond Privatization: Institutional Innovation and Growth in China's Large State-Owned Enterprises[END_REF].

After two and a half decades of reforms, state-owned enterprise ownership is no longer dominated Chinese business [START_REF] Ralston | Today's State-owned Enterprises of China: Are They Dying Dinosaurs or Dynamic Dynamos?[END_REF]. But the state-owned factor is still plays a significant role in China. The government has the ambitious to build a national team in several pillar enterprises, such as automotive, pharmaceutical, electronics, and petrochemical [START_REF] Nolan | China and the Global Economy[END_REF]. This makes China the most adequate scenario for this exploratory study.

Most of the pillar enterprises are still owned by the state in China, such as those in the energy, telecommunication and finance industries. It is relatively easy for them to get support (i.e. financial, policy-related) from the government. Nevertheless, the execution of innovation may be more challenging, due to the large number of employees and the dispersion of the different departments. Moreover, the internal and external challenges for these enterprises are also sever. The competitions from both internal (i.e. restructure, private-owned enterprise) and external (i.e. domestic private sector, foreign-controlled business sector) are compelling state-owned enterprise innovate business model.

The Chinese definition of the private sector is: "it includes private limited liability corporations, private share-holding corporations, private partnership enterprises and private sole investment enterprises" [START_REF] Ralston | Today's State-owned Enterprises of China: Are They Dying Dinosaurs or Dynamic Dynamos?[END_REF]. Due to the mentioned "open to door" policy, the private sector expanded greatly in China since the late 1970s. Innovations in this type of companies would emerge and evolve in a different manner. In contrast to state-owned enterprises, the private-owned enterprises need to discover a suitable business model and try to survive by themselves as the Chinese government to them may give scares support. At this stage, the leader of the private-owned enterprise has to consider a long future version of the enterprise to make a sustainable profit. Thus, the private-owned enterprise would more likely make efforts to invest more money in innovating their business model.

Methodology and Data Collection

This research uses a qualitative case study to explore and analyze uncultivated knowledge (Eisehardt, 1989). There are two main activities in the theory development, which are "the formulation of propositions" and "testing whether they can be supported" [START_REF] Dul | Case Study Methodology in Business Research[END_REF]. Therefore, this research is based on exploration for theory to discover the current gaps and suggest research propositions. Case study and observation methods help to formulate new propositions, which will be verified in future work.

There are three justifications to select case study as our main research method. Firstly, case study is perhaps the most flexible methods, which could provide a plenty of detailed description of a particular phenomenon [START_REF] Hakim | Research Design[END_REF]. Secondly, this research focuses on the contemporary event, which is identical to the conditions of case study method [START_REF] Yin | Case Study Research: Design and Methods[END_REF]. Thirdly, both single-case and multiple-case study will be used in this research. According to Eisenhardt [START_REF] Eisenhardt | Building Theories From Case Study Research[END_REF] and Hagg et al. [START_REF] Hagg | Case Studies in Accounting Research[END_REF], many single-case are criticized, as they cannot provide any basis for generalization, while multi-case construct a stronger basis for knowledge building.

Empirical Case Study

Overview of State-owned Company A&B

Company A: has approximate 40 years history in China and around 4000 employees. It is convened to provide blower for either state-owned or privateowned manufacturing industries and serves to diverse fields, such as Petroleum, Metallurgy, Chemical, Electricity, Fertilizer and Pharmacy. In the year 2007, they increased funding and attracted several strategic partners. In the year 2010, this company was listed.

The traditional business model of Company A was based on direct product sales. Currently, this company not only sells products but also provides services to its consumers. Moreover, they have innovated their business model in the following three aspects:(i) The main source of business profit has changed its focus from equipment, physical power and technical ability to brand value, knowledge and human capital; (ii) A previous technical-oriented approach was modified to extend business boundaries and adopt a more customer-oriented approach; (iii) Improvements in the integration of resource capability from a self-owned resource based to a integration external resource.

As the competition from both internal and external are getting fierce, company A tried to make a sustainable profit to survive. As a state-owned enterprise, company A could get continues financial support from the state. Thus, they could have a better policy execution. For example, Company A constructed an ecosystem factory. It's difficult to execute for private-owned enterprise because of the lack of profit stimulation. Companies need to invest a huge amount of money to build the system and the profit would mostly need to be expected after several years. Apparently, it's a burden for most of small to medium private owned companies. However, it's much easier for state-owned company to get the Land Use Right and the local government would support for their construction.

Company B: is a state-owned numerical machine tool industry. It was founded in the year 1965 and the current employees are around 3500 people. In the year 1995, company B upgraded from numerical machine tool factory to numerical machine tool company. In the year 1998, company B experienced shareholding reform and went to the public. In the year 2007, company B upgraded by means of merger and acquisition other small numerical machine tool company. During the merger and acquisition, the government offered enormous supporting. Specifically, the government let the company reorganizing their core product and abandons their deficit product. It is worth to mention that the government paid for their deficit product and invests huge money to their core product.

The current operating performance of Company B is barely satisfactory. For one thing, most of the numerical system needs to be imported from abroad, as the technology in the local market cannot satisfy the high requirements in precision yet. Besides, some high precision machine tool parts are also need to be imported from abroad as well. Thus, the profit margin is very low. For another, most of the senior employees in this state-owned company have lifelong position. Even if they don't work that hard, the company normally will not layoff them until they get formally retired. The system makes the senior employee doesn't have a passion to make innovation. In contract, although most of the joiner employees are signed short-term renewable contract, they don't have a protection of the position. In addition, as the working condition of numerical machine tool industry is terrible, fewer striplings are willing to choose this job. For the current striplings work as apprentice, they mostly would like to change a job afterwards.

Overview of Private-owned Company C&D

Company C: is a large-scale equipment manufacturing enterprises, which was founded in the year 1966. They mainly produce numerical machine tool part; energy equipment; miner equipment; engine; compressor; wind turbine; track and so on. Company C was a state-owned enterprise until the year 2004. After that, Company C reformed to a private-owned enterprise and attracted several strategic partner. Currently, Company C owns dozens of subsidiary company.

As a leading casting enterprise in China, Company C has a deep understanding of their advantage and insisted in their core competitiveness continuously. They do expand their business to new areas such as chemical and biomedical engineering, but casting still takes the largest market share of their products.

During the qualitative research, the author identified that there exist two reasons to make Company C successful. Firstly, the leader has a powerful ability to judge the development direction of the industry. For instance, in the year 2012, the leader decided to build their company as an innovation enterprise. They explored their technology to digitization and intellectualization. In the year 2015, the Chinese state issued a policy -building the Chinese industry digitization and intellectualization by 2025. This new policy for manufacturing companies is exactly accordance to the policy company C issued three years ago. Secondly, the efficient to execute a new policy of Company C is remarkable. For example, in November 2015, the leader decided to change their management pattern. Formerly, their management mode is a traditional way that the supervisors set a profit target and the employees follow their instruction to fulfill the task. However, the new business model is to divide one department into several teams, each team includes 3 to 4 people. The team would find their customers by themselves. They changed their working pattern from passive to initiative. The more contract they signed, the higher deduction wage they will get. This management mode motivates every employee to make profit, but this innovation put the people waiting for others instruction into a difficult situation. Surprised, Company C only use three month to execute this new policy. Company D: is a traditional private-owned family firm. Their business is mainly to produce numerical machine tool part, as well as the numerical system. The main capital resource is from the profit of traditional manufacturing product (i.e. industrial robot, hydraulic system equipment, sensor etc.). They also produce customized product. This company was founded in 1993, it used be a family industry, with a single ownership structure. From 2015, their subsidiary company is preparing for IPO. In the future, Company D will keep working as single ownership structure but their subsidiary company will work as board of directors and operated by CEO.

The main customer of this company is aerospace and military industry. Company D has ambitious to replace the market share of import product from Japan and German. Family enterprise has widespread characteristics that their leader has absolute authority to decide the future development of the enterprise. That situation leads a risk that the leader may make a wrong decision. For instance, the leader in Company D decided to produce numerical control system. However, this is an advance technique that difficulties are not fully overcome yet. This company spends more than ten years in this technique, but the profit is unsatisfactory. Moreover, comparing with state-owned enterprise. It is more difficult for private-owned companies to get funding from the government. Mostly, Company D needs to survive all on them own.

Findings and Discussion

Leader's Perspective in Business Model Innovation. There exist a policy for state-owned company that the state or the local government nominates the leader. In this qualitative research, we explored another reason makes Company A succeed, which is the future perspective and the execution status of the leader's idea. Comparing the leader between company A and company B. There exist a significant difference. Company A doesn't change their leader for 14 years, which makes this leader's strategy and target carried out in a most effective way. In contract, Company B changes their leader every four to five years. This phenomenon makes each leader only consider the company performance during his term of office.

Both of the two private-owned enterprises have the common characteristics: the leader has the absolute authority to decide the enterprise's development direction. Company C has a board of directors to decide their innovated policy. Therefore, the leader would have an opportunity to hear different voice and make a proper decision. In contract, Company D is a family industry; it is difficult to make the leader change the decision, especially when it is a wrong one. Complexity of Policy Execution in Business Model Innovation. In empirical study, the authors discovered that private-owned enterprise has a significant high efficient in execution innovated policy. For instance, Company A needs to take several years to implement an innovated idea. Because the authority is more divided comparing with the private-owned company. Thus, it takes a longer time to get the idea approved by the leader, let along to implement the idea. Nonetheless, it only takes several months for Company C to change their management mode. One of the possible reasons is the employees in state-owned enterprise are mostly have the life-long position. They lack a sense of crisis for the position. Investment and the Financial Support. Through the case study, we discovered that private-owned enterprises are very difficult to get financial support from the state. Therefore, to make a sustainable profit, private-owned enterprises have a stronger eager to innovate their ideas and business model. In contract, state-owned enterprise could get funding much easier from the government. This would lead two situations: the advantage is companies would be much easier to realize innovation, as they would get support from local government and could get benefit from preferential policies. The disadvantage is that employees' working attitude might be passive. Because of their life-long position would make them have a financial guarantee from the government no matter what are their work efficiency is.

Concluding Remarks

Through the empirical study, the authors identified that the private-owned company has higher innovation ability. It is very difficult for private-owned enterprise to get large amount of funding support from the state. Therefore, they have much stronger eager to innovate new technology as well as their business model to make a sustainable profit. Moreover, private-owned enterprise has a significant high efficient in execution innovated policy. Because most of employees signed short-term renewable contract, they have a sense of crisis for their position. Additionally, the authority in state-owned enterprise is more divided than the private-owned company. That result in a longer period to execute a policy. Furthermore, the leader's perspective of the innovation not only depends on the leader's personal ability, but also depends on their nomination duration. This phenomenon is more general in state-owned enterprise.

In this research, the case study is mainly focus on the company's current situation. In future works, we plan to conduct further research in government policy and legalization. Finally, we will design a tool to instruct both kind of enterprise to carry forward their advantages, especially how to maximize their resources.