Proceedings of the 4th International Conference on Business Intelligence, Analytics and Knowledge Management (BIAKM-2015), FST & Department of

Operations & IT, IBS Hyderabad, IFHE University, India, 17th -18th December, 2015

Cloud Computing in Manufacturing

Vaibhav S.Narwane Balkrishna E. Narkhede Rakesh D. Raut

Research Scholar Associate Professor Assistant Professor
Department of Production Department of Production Operations Management Group
Engineering Engineering National Institute of Industrial
Veermata Jijabai Technological Veermata Jijabai Technological Engineering (NITIE)
Institute (VJTI) Institute (VJTI) Vihar Lake, Mumbai, Maharashtra,
Mumbai, Maharashtra, India Mumbai, Maharashtra, India India
[email protected] [email protected] [email protected]

Abstract—Cloud Manufacturing is described as computing Cloud Computing became a hot topic in mid 2008 and by mid
and service-oriented manufacturing models such as Application 2009.CC is a scalable, IT- related capabilities provided as a
Service Provider (ASP), Agile Manufacturing (AM), Network service on internet.CC have been widely studied and applied
Manufacturing (NM), and Manufacturing Grid (MGrid). Cloud in many fields to provide on-demand use and efficient sharing
Manufacturing system reduces the cost and increases the of resources. Cloud Manufacturing (CM) is a new generation
utilization rate of resources which can provide the users service-oriented networked manufacturing model which
distributed in different places with the manufacturing resources provides the users distributed in different places with the
and manufacturing ability services through the centralized
manufacturing resources and manufacturing ability
management. Cloud manufacturing address key problems faced
by small-and medium-sized enterprises (SMEs) and Original
service.CM is in the juvenile stage of development.
Equipment Manufacturers (OEMs). CM will integrate mass CM addresses the key problems faced by small-and
manufacturing resources from SMEs and combine the medium-sized enterprises (SMEs) as well as Original
advantages of each enterprise to improve competitiveness. In this Equipment Manufacturers (OEMs). SME-oriented cloud
paper, Cloud computing applications in OEM manufacturing manufacturing service platform (SME-CM) shares the
along with security issues and risk analysis have been discussed manufacturing resources and capabilities. OEM develops
in detailed.
product level requirements from the perceptive of technology
Keywords— Cloud Computing (CC); Cloud Manufacturing functions and integration (e.g. specifications, drawings etc).
(CM); Security; Risks; SMEs; OEMs. These requirements are then contractually enforced with
supplier, sub- suppliers through cloud based application.
I. INTRODUCTION Privacy and security are biggest concerns about CC.
Cloud Computing is a way to deliver IT enabled services Reliability is an issue. Downtimes can occur to cloud server
in the form of software, platform and infrastructure using too as server in the cloud can have same problems as company
internet technologies. Cloud Computing (CC) is becoming one servers. These issues need to be addressed for enhancement of
of the next industry buzz words and builds upon the advance this technology.
of research in virtualization, distributed computing, grid From 1990s to present day, the internet has travelled from
computing and utility computing. Cloud Computing is a way the concept of parallel computing to distribute computing to
to deliver Information Technology enabled services in the grid computing and recently Cloud Computing. The term
form of software, platform and infrastructure using internet “cloud” originates when telecom providers began using
technologies. The cloud computing environment provides a Virtual Private Network (VPN) services for data
great flexibility and availability of computing resources, communications. CC represents a convergence of IT
which opens a new era of e-services in some of the key areas efficiency and business agility.
of manufacturing, supply chain management, e-governance, e-
learning etc. The main advantage of Cloud Computing is that Various definitions of cloud computing by various authors
companies do not have to pay for infrastructure, its are given in Table I .There are perhaps many definitions as
installation, required manpower to handle such infrastructure, there are commentators on the subject. All definitions
and maintenance. Cost is reduced to a significant level as the eventually indicate the utility of cloud computing in several
infrastructure is provided by a third-party. Extending and aspects like: pay as you go structure, on demand services,
adopting the concept of Cloud Computing for the scalability of applications, strong importance of SLAs,
manufacturing industry is Cloud Manufacturing (CM), which guaranteed Quality of Service (QoS), reliability of services.
is service oriented, customer centric and supply-demand Thus applications can now be delivered as service over the
driven model. internet reducing the overall cost as customer does not have to
pay for infrastructure, its installation, man power required to
The manufacturing industry is gradually transferring from handle such infrastructure and maintenance.
traditional product-oriented type to service oriented type.
 Proceedings of the 4th International Conference on Business Intelligence, Analytics and Knowledge Management (BIAKM-2015), FST & Department of
Operations & IT, IBS Hyderabad, IFHE University, India, 17th -18th December, 2015

TABLE I Various definitions of CC internet. In PaaS services like hardware, operating systems,
Sr.No. Definition Reference database, web servers, etc are managed by cloud providers. In
No. SaaS type of systems software can be accessed through
1 “A model for enabling ubiquitous, internet avoiding need of maintaining, installing software.
convenient, on demand network access to a Many hardware management issues associated with software
shared pool of configurable computing also can be eliminated in SaaS. EaaS is concept of being able
resources (e.g.- networks, servers, storage, to call up re-usable, fine-grained software components across
[17]
applications and services) that can be
rapidly provisioned and released with a network. Types of services are shown in Figure 1.
minimal management effort or service
provider interaction”
2 “A computing cloud is a set of network
enabled services, providing scalable, QoS
guaranteed, normally personalized,
[12]
inexpensive computing infrastructure on
demand, which could be accessed in a
simple and pervasive way.”
3 “Cloud computing is the next natural step in
the evolution of on-demand information Fig.1. Types of Services [21]
technology services and products. To a
large extent, cloud computing is based on The three types of clouds used are public, private and
virtualized resources. It indicates service hybrid. In Public Cloud type of systems service providers
[18]
oriented architecture, reduced information makes massively scalable IT resources available to general
technology overhead for the end-user, public over the internet. Private Cloud enterprises offer cloud
greater flexibility, reduced total cost of
ownership, on demand services and many services over the corporate network (can be virtual private
other things.” network) to its internal users behind firewall protected
4 “A cloud is a type of parallel and distributed
environment .Hybrid Cloud types of clouds have
system consisting of a collection of characteristics of both public and private cloud.
interconnected and virtualized computers
that are dynamically provisioned and
[24]
II. LITERATURE REVIEW
presented as one or more unified computing
resources based on service level agreements A. Cloud Manufacturing (CM))
established through negotiation between the
service providers and consumers.” In past two decades manufacturing industry needs to
respond to the rapidly changing market, competitive market
5 “ Cloud Computing is an information [15] globalization and customer demand diversification. To meet
technology service model where computing
services (both hardware and software) are the target of TQCSEK (i.e. fastest Time-to-market, highest
delivered on-demand to customers over a Quality, lowest Cost, best Service, cleanest Environment and
network in a self-service fashion, high Knowledge), many manufacturing models and
independent of device and location. The technologies have been proposed and researched [29]. Typical
resources required to provide the requisite
quality-of-service levels are shared, examples are Computer Integrated Manufacturing (CIM)
dynamically scalable, rapidly provisioned, [8,10,40,46], Agile Manufacturing (AM) [23,44] ,Concurrent
virtualized and released with minimal Engineering (CE) [1,36,42], Networked Manufacturing (NM)
service provider interaction. Users pay for [19],Application Service Provider (ASP) [5,26],Virtual
the service as an operating expense without
incurring any significant initial capital Manufacturing (VM) [9,22,43],Manufacturing Grid (MGrid)
expenditure, with the cloud services [28,29,31,32].
employing a metering system that divides
the computing resource in appropriate Each aforementioned advanced manufacturing technology
blocks. ” (AMT) or models have made great contributions to the
development of manufacturing information. However there are
still many short comings for them to be widely applied to
Key advantages offered by CC are lower cost of entry for manufacturing industry such as how to further optimally
smaller firms which are trying to benefit from compute- allocate manufacturing resources, enhance resource utilization,
intensive business analytics that were only available to the big and most important transformation from production-oriented
corporations, immediate access to hardware resources with no manufacturing to service-oriented manufacturing [32].
upfront capital investments for users, lower IT barriers to
innovation, makes it easier for enterprises to scale their CC provides new ideas and opportunities for solving these
services, makes possible new classes of applications and problems. Cloud Manufacturing (CM) can provide safe,
delivery services that were not possible before. reliable, high quality, cheap and on-demand manufacturing
services. Wu D. et al. [39] defines CM as “Cloud
DaaS is one of the first cloud based services which lets Manufacturing is a customer-centric manufacturing model
user to store files of various data types. DaaS also implies that exploits on-demand access to a shared collection of
structured storage with relational DBMS. IaaS provides diversified and distributed manufacturing resources to
traditional data center resources, such as highly scalable form temporary, reconfigurable production lines which
virtualized computing power, memory and storage, over enhance efficiency, reduce product lifecycle costs, and
 Proceedings of the 4th International Conference on Business Intelligence, Analytics and Knowledge Management (BIAKM-2015), FST & Department of
Operations & IT, IBS Hyderabad, IFHE University, India, 17th -18th December, 2015

allow for optimal resource loading in response to Manufacturing Cloud consists of storage cloud (Product
variable-demand customer generated tasking.” Database, Project Database, Knowledge Database, Client
Database, Provider Database, Resource Database etc), service
CM system primarily consists of manufacturing resources,
application cloud (CAPP, Simulation etc) and agents (Billing
manufacturing capabilities, the whole manufacturing life cycle
Agent, Resource Recognition Agent etc). Knowledge plays a
applications, core support (knowledge), two processes (import
central support role in running process of CM, which not only
and export) and three user types ( service providers, service
support virtualization access and service encapsulation but
users and cloud operators).Resources in CM can be divided
also integration of resources so that a manufacturing task can
into manufacturing resources and manufacturing capabilities.
be finished coordinately.
The classification of manufacturing resources and capabilities
B. CC Security issues in SMEs
is shown in Figure 2.
CC is likely to prove commercially viable for many small
and medium enterprises (SMEs) due to its flexibility and pay
as you go cost structure. CC system can be easily threatened
by various cyber attacks, because most of the cloud computing
system provides service to so many people.
CC security can be broadly classified into three domains as
 Security Categories (Security issues faced by Cloud
Provider and Customers)
 Security Dimensions (Security domain, risks, threats)
 Security in Service Delivery Models (Security issues in
SaaS, PaaS, Iaas)
Many organizations are working to enable the transition to
CC. Government bodies in European Union and US are
European Network & Information Security Agency
(ENISA) and National Institute of Standards and
Technology (NIST) respectively. Table II gives summary
of guidelines given by various organizations.

Fig.2. Resources in CM [40]

Manufacturing Cloud provides the whole manufacturing life

cycle process with various manufacturing services
 Proceedings of the 4th International Conference on Business Intelligence, Analytics and Knowledge Management (BIAKM-2015), FST & Department of
Operations & IT, IBS Hyderabad, IFHE University, India, 17th -18th December, 2015

TABLE II. Security Taxonomy (Source: - CSA 2009, ENISA 2009, C. Associated Risks of CC for SMEs
NIST 2009, OG 2009 a)
Associated risks with leveraging cloud in SMEs can be
Organi Taxonomy/Frame Contents in brief Remark categorized as shown in Table III below. Technologists need
zation work/Guidelines
Open Risk taxonomy Specifies strict
to
Group definitions for 13 TABLE III. Security Taxonomy
(OG) terms with formal
hierarchy to describe Type of Risk Various Forms Reference No.
the relationships
Shirking and deliberate
between terms. [3]
Indispensable, yet under performance
concise. Good for Provide a
SMEs to begin plain Poaching and the theft
Cloud Top threats to CC A list of seven top language of intellectual property,
Securit threats in CC along introducti
y with the estimated on to Outsourcing proprietary software, [37]
Allianc impact for each threat, significant Opportunism Risk critical confidential
e remediation options CC and
(CSA) and suggested risk data
resources. assessmen Opportunistic reprising,
SPI service model for t concepts
each threat client lock-in, and [38]
NIST Guidelines on Nine security and vendor hold-up
security and privacy privacy themes are
in public CC each examined. SMEs Functionality Risk [34]
should have a high-
level appreciation for Political Risk [34]
critical topics Technology
Project Risk [4]
ENIS Information Tool for consumer to Provides Development Risk
A assurance evaluate cloud service very brief, Technical Risk [27]
framework provider (CSP) high-level
Suggested division of exposure Financial Risk [4]
responsibilities and to risk
liabilities between the assessmen
work on the ways to solve the problems by reducing these
consumer and the CSP t risks, and suggest the approaches. Reliability can also be
CSA Security guidance Tool to help SMEs serious problem for cloud users. In February 2008
for critical areas of decide if, they are Salesforce.com left customers without service for 6 hours,
focus in CC V2.1 ready to use CC while few days later in same month Amazon’s S3 and EC2
Critical areas of focus-
13 domains are
suffered a 3 hours outage. In July 2008, 8 hours outage was
divided to three caused by Amazon’s S3. In 2009 Google’s Gmail went down
categories CC for 3 hours. Thus software engineers needs to identify security
architecture, and privacy requirements
governance and
operations D. CC adoption models
ENISA CC: Benefits, risks Clear classification, 35
and risks are identified of Delineate
Theories commonly used in innovation diffusion and
recommendations which 20 risks are very adoption studies in organization are diffusion of innovation
for information specific to CC. detailed (DOI), technology-organization-environment (TOE),
security Over 50 vulnerabilities approach technology acceptance model (TAM), theory of planned
and 20 assets are to risk behavior (TPB), unified theory of acceptance and use of
delineated, Key legal assessmen
technology (UTAUT) etc. Tabulated form of CC adoption is
issues and t in the
recommendations cloud as shown in Table 4.
CSA Domain 12 IAM for the cloud is
guidance for organized into four
E. CC for OEMs
Identity and Access functional areas as Cloud based applications helps OEMs to become customer
management V2.1 identity provisioning centric, temporary, reconfigurable, and dynamic so that OEMs
and de provisioning, need not to turn no job away and become demand driven,
authentication and
federation, demand intelligent with shared burden and share benefit. Wu
authorization and user D. et al. [39] give comparison of CM and traditional supply
profile management, chains. Current manufacturing supply chain for OEMs gives
and support for requirements to Tier I suppliers (fixed) who gave derived
compliance requirements to sub-tier suppliers (fixed). In cloud based
manufacturing supply chain OEMs gives requirements such as
cost, schedule, deign, performance etc to cloud based
applications (CBA). CBA gives derived requirements to
manufacturing service and response providers (flexible).
Proceedings of the 4th International Conference on Business Intelligence, Analytics and Knowledge Management (BIAKM-2015), FST & Department of Operations & IT, IBS Hyderabad, IFHE University,
India, 17th -18th December, 2015
TABLE IV CC Adoption Models Author and Year Industry Adoption Methodology/Approach Remark
Model
Author and Year Industry Adoption Methodology/Approach Remark
Conceptual Institutional Implications for cloud Big gap
Model
N. Kshetri,2013 model theory user and policy makers between cloud
Low et al. ,2011 High- Tech TOE and A questionnaire- based As research [20] vendors claim
[13] industry DOI survey in which data is was conducted and adopters
(n=111) collected from 111 firms in the high- think about
followed by factor tech industry, cloud security.
analysis, logistic which may Industries are
regression limit the realizing a
generalisability need to
of the findings develop
Lin et al.,2012 IT DOI Data collection through Cost of standards to
[11] professionals, semi- structured learning new provide the
Taiwan qualitative followed by knowledge and guidance
(n=19) convenience sampling, skills is major necessary for
snowball sampling concern for security and
manager when privacy
considering Sara Trigueros et. SMEs in -- Empirical research Main barrier
using CC. al,2013 [35] Spain methodology of both identified are
Security and (n=94) nature qualitative (group cultural type,
standardization meeting with managers) cost
will reduce and quantitative
uncertainties (questionnaire)
and encourage
Hemlata IT, TAM-TOE A questionnaire was Variables for
adoption
et.al,2014 [6] manufacturing used to collect the data, affecting CC
Abdollahzadehga Conceptual TOE Organizational context Can be helpful and finance which were analyzed adoption are
n et al.,2013 [2] model divided into three main for SME for sectors in using exploratory and relative
factors organizational, evaluating India (n=280) confirmatory factor advantage,
environmental and their analyses. Testing of compatibility,
technical organizational model is done using organizational
condition for structural equation readiness, top
adopting CC modeling management
services commitment,
Wu et al.,2013 Manufacturing IPV and Circumstances that affect Company’s and training
[39] and retail DOI a firm’s intention to propensity to and education
industry adopt CC in support of adopt CC
(n=289) its supply chain depends on n- Size of Sample
operations are business
investigated by classical process
diffusion theory. complexity,
entrepreneurial
culture,
compatibility
and application
functionality
M. Nkhoma et IBM TOE Conducted a secondary Not able to
al.,2013 [14] data analysis to achieve much
investigate the drivers significant
and barriers of CC inferences
adoption. majorly due to
Structural equation data quality
modeling and partial limitation
least square (PLS)
methodologies used for
validation
 Proceedings of the 4th International Conference on Business Intelligence, Analytics and Knowledge Management (BIAKM-2015), FST & Department of
Operations & IT, IBS Hyderabad, IFHE University, India, 17th -18th December, 2015

III. DISCUSSION Time Short Term Long Term

Sector
A. Cloud Computing (CC)
CC is here to stay. The famous physicist Niels Bohr once Ubiquitous access to
design information
said “Prediction is very difficult especially about the future”. Engineering Design Improved efficiency Collaborative Design
So even if specific road map for CC technology might be still Affordable computing
unclear, but the fundamental economics and business forces resources
that shape the computing industry points to a logical Improved resources Distributed
conclusion that many computing applications are general- Manufacturing Rapid prototyping
Manufacturing
purpose in nature, and therefore offer tremendous economics Reduced cost
of scale if their supply can be consolidated [15]. With CC we Reduce time-to market
Improved service
can have simplified maintenance of infrastructure (hardware, Marketing and Service quality Customer Creation
or software), cost reduction, uninterrupted services to user, Enhanced customer
infinite computing capabilities, scalability, pay-per-use need elicitation
scheme, service provisioning, optimum resource utilization
and so on. CC technology is not free from risks and concerns.
Future work in CM could be inter-factory industrial control
Security and privacy are biggest concerns on CC which limits
system, proper business model, information and resource
its adoption in practice.
sharing, distributed system simulation through discrete event
B. Cloud Manufacturing (CM) modeling and simulation, and cost estimation.
CM is a new concept extending and adopting the concept C. Suitability of CM to SMEs and OEMs
of CC for manufacturing. The aim is to transform
According to Tao et al. [29] CM can reduce the up-front
manufacturing business to a new paradigm in which
investment and lower the cost of entry for SMEs trying to
manufacturing capabilities and resources are componentized,
benefit from high-value manufacturing resources. According
integrated and optimized [40]. While CC is primarily provides
to Marton et al. [15] in addition to above points use of CM in
services for user as IaaS, PaaS, Saas, in CM service based
SMEs reduces infrastructure and administrative cost, upgrade
models based on IaaS, PaaS, Saas includes design as a service
and maintenance cost, and also leads to energy saving.
(DaaS), manufacturing as a service (MFGaaS),
experimentation as a service (EaaS), simulation as a service Problems faced by SMEs are as follows [7]
(SIMaaS), management as a service (MaaS), maintenance as a
service (MAaaS), and integration as a service (INTaaS) [32].
 SMEs are still in low end of the value chain even if
Thus CM means new way of conducting manufacturing manufacturing capability resource is abundant.
business that is everything as a service (EaaS). Benefits
offered by CM offers can be listed in paragraph below.  Deficiency of self-innovation and design capability.

According to Rosenthal et al. [25] CM can reduce 15-20 %  Infancy of capabilities of follow-up service and
for IT resources with at least 40% more utilization. According additional value creation.
to Marston et al. [15] and Rosenthal et al. [25] CM makes it  Disability of resource integration and low efficiency of
easier for small as well as big manufacturing enterprises to industry chain-like resource sharing.
scale their production and business according to client
demand. CM also can generate new type and classes of  Deficiency of credibility of manufacturing resource
manufacturing such as mfg.com, Local-Motors.com etc. transaction and commercial reputation evaluation
According Tao et al. [32] CM can transform a distributed and system.
high-energy-consumption manufacturing model to a  Deficiency of international market ability, excessive
centralized, resource and environment friendly manufacturing cost of marketing, and transaction.
model. According to Xi et al. [40] CM improves efficiency,
interoperability, sustainability and flexibility. According to Existing solutions to above mentioned problems are
Tao et al. [30] CM will further improve the ‘networking CIM, AM, CE, NM, ASP, VM, IM, MGrid etc but they
intelligent and service’ of manufacturing and promote the fail in some aspects. SME-oriented CM services are able to
manufacturing and then promote manufacturing information to tackle these problems, but important concerns are control,
a new level. security, privacy, and reliability. The ENISA survey shows
that 29 out of 62 SMEs response saw “Loss of control of
According to Tao et al. [32] the main challenges for CM services and/or data” as being “very important” (ENISA
are possibility of backlash from old manufacturing process 2009). IDC (International Data Corporation) rated security
and models, lack of standards, safety and security problems. as their main CC concern and almost 75% of respondents
Wu et al. [39] have identified potential impact of CM across were worried about security. Abdollabzadehgan et al. [2],
as shown in Table V. and Trigueros et al.,[35] gives evidences that despite of
touted advantages of new technology, not all companies
are rushing to adopt CC solutions.
TABLE V Potential Impact of CM
 Proceedings of the 4th International Conference on Business Intelligence, Analytics and Knowledge Management (BIAKM-2015), FST & Department of
Operations & IT, IBS Hyderabad, IFHE University, India, 17th -18th December, 2015

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