A Review of Cloud Manufacturing: Issues and Opportunities

A REVIEW OF CLOUD MANUFACTURING: ISSUES AND

OPPORTUNITIES

M.N. Abd Rahman¹, B. Medjahed², E. Orady³, M.R. Muhamad⁴, R.

Abdullah⁵ and A.S.M. Jaya⁶

¹,⁴Fakulti Kejuruteraan Pembuatan, Universiti Teknikal Malaysia Melaka,

Hang Tuah Jaya, Melaka, Malaysia.
²Department of Computer and Information Science, University of Michigan –
Dearborn, USA.
³Industrial and Manufacturing Systems Engineering Department, University
of Michigan – Dearborn, USA.
⁵Fakulti Teknologi Kejuruteraan, Universiti Teknikal Malaysia Melaka, Hang
Tuah Jaya, Melaka, Malaysia.
⁶Fakulti Teknologi Maklumat & Komunikasi, Universiti Teknikal Malaysia
Melaka, Hang Tuah Jaya, Melaka, Malaysia.

Corresponding Author’s Email: ¹[email protected]

Article History: Received 4 May 2017; Revised 5 October 2017; Accepted 16

May 2018

ABSTRACT: Cloud Manufacturing (CM) is the latest manufacturing paradigm

that enables manufacturing to be looked upon as a service industry. The aim
is to offer manufacturing as a service so that an individual or organization is
willing to manufacture products and utilize this service without having to
make capital investment. However, industry adoption of CM paradigm is still
limited. This paper compared the current adoption of CM by the industry
with the ideal CM environment. The gaps between the two were identified
and related research topics were reviewed. This paper also outlined research
areas to be pursued to facilitate CM adoption by the manufacturing industry.
This will also improve manufacturing resource utilization efficiencies not
only within an organization but globally. At the end, the cost benefits will be
passed down to end customer.

KEYWORDS: Cloud Manufacturing; Industry 4.0; Manufacturing Paradigms;

Cloud Computing; Evolution of Manufacturing System

1.0 INTRODUCTION
Recent development in the area of manufacturing model focuses on
two significant concepts namely Industry 4.0 and Cloud Manufacturing
(CM). Industry 4.0 scopes consist of both vertical and horizontal
integration of manufacturing activities whereas CM focuses on the

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integration of various components to enable “manufacturing-as-a-

service“ activities in the cloud. Even though their focus areas are
different, their goal is the same, meeting individualized requirements
specified by customers through adopting Internet of Everything
approaches [1]. This paper focused on initiatives on CM only.

CM has been coined based on the term widely used in IT: cloud
computing. In cloud computing, IT resources reside in the “cloud” and
companies or individual pay to use those resources without having to
invest in the hardware and human resources to maintain it [2]. In CM
environments, the manufacturing facilities and support systems reside
in the “cloud”. The basis of CM is to offer production system services
to those who want to manufacture their products [3-4].

The first literature on manufacturing as a service was traced back to

the 1990s in the dot-com era. Those literatures reflect the vision on the
influence of the Internet on future manufacturing paradigm. Some of
the earlier discussion topics are the change of focus in manufacturing
operation from mechanical-centric to IT-centric to enable mass
customization, the possibility of connecting design and manufacturing
services through IT capabilities [4], and the implementation of
manufacturing services and creation of integrated products and
processes over the Internet [5].

In year 2000s, advancement and expansion in internet capabilities

initiated the latest globalization phase, referred to as Globalization 3.0,
defined by collaboration of individual and small groups across the world
[6]. Taking advantage of the communication barrier removal around the
globe,the current manufacturing system needs the agility and flexibility
to address shorter than ever product life cycle to be garnered without
capital spending but rather by outsourcing manufacturing operation
services offered by companies around the globe. And this is the basis
of the CM paradigm. Unfortunately, current CM adoption by industry
is still in its infancy. Even though there are numerous publications
on CM, there is lack of study comparing the extent of industrial
adoption of CM with what the ideal CM environment should be. This
paper considered the gaps between what was being practiced in the
industry and the ideal CM environment. Gaps between the two were
identified and a review on the published work on the areas related to
the identified gaps was carried out. Finally, future research areas were
recommended.

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2. 0 CLOUD MANUFACTURING ARCHITECTURE

CM involves interactions between three entities (Figure 1): users
(consumers), application providers, and physical resource providers
(PRP). Users’ needs are matched with the PRP’s resources through
the application layer. Matching between users’ demands and the
production system owned by PRPs through the application layer
minimizes manufacturing cost and optimizes the utilization of PRP
resources [7-8]. The cost benefits are passed down to the end users of
the product [9].

Users/OEMs - Users/OEMs are the consumers in CM network. They

can be individuals or organizations that want to manufacture a product
without investing in manufacturing capabilities. A consumer can also
possibly an organization that already has manufacturing capability but
can gain competitive advantage, such as lower cost, by participating in
CM. Consumers have to generate product engineering requirements
which describe the desired object and its final conditions. Expected cost
and schedule also need to be specified.

Application Providers - Based on the information specified by

consumers, the application providers have to perform three main tasks:
(i) interpret product engineering requirements into data requirement
for the production of the product; (ii) determine the Production
planning and sequencing to produce the product; and (iii) match and
locate the required resources among the PRPs to produce the product.
This application layer is managed and controlled by application
providers who act as mediators between users and PRPs for a portion
of the product profit.

Figure 1: Interactions among CM players

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Physical Resource Providers (PRPs) - PRPs can be located anywhere

around the world with no geographical limitation. PRPs own physical
manufacturing resources include manufacturing equipment, human
resources, inspection equipment, and related software. PRPs must also
have to know-how and experience to utilize those resources efficiently
and effectively. PRPs provide relevant real time information of their
capabilities and capacity availability to the application providers so
that a matching process between customer requirement and PRPs
capability and capacity can be done in real time. Ideally, PRPs should
represent all types of manufacturing capabilities available so that
all manufacturing capabilities can be offered through the cloud as a
service. However, the CM can also be dedicated to a specific product
family or product technologies. Consumer and PRPs can then choose
the appropriate CM to participate. The output of PRPs group is the
final product that meets customer requirement.

The flows of information, money, and materials within a typical

CM platform are depicted in Figure 2. If compared with typical
manufacturing environments, the flows of information, money and
materials are occuring in a cascading manner from user/OEM to first tier
manufacturer, to second tier manufacturer, to third tier manufacturer
and so on. In the CM environment, this cascading flows are eliminated
which result in flexibility for CM service providers to utilize resources
available in the CM platform to meet users/OEM requirement in the
most efficient manner possible.

Figure 2: Flow of information, money and material in CMs

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3.0 CLOUD MANUFACTURING: INDUSTRIAL

IMPLEMENTATION VERSUS IDEAL
CHARACTERISTICS

Wu et al. [8] defined eight requirements for ideal CM environments.

These requirements can be used as a reference in defining an ideal
infrastructure for CM implementations:

• R1: The three main CM players (users, application providers, and

PRPs) should be connected through social media-based services to
facilitate communication and data/knowledge sharing.
• R2: There should be cloud-based data sharing capability for CM
players to access and share manufacturing related data.
• R3: Framework of open-source programing should be developed
to process, manage and analyze data stored in the cloud.
• R4: CM should provide a multi-tenancy environment where a
single software can serve the players in the CM environment.
• R5: CM should allow to remotely collect, store, and monitor
real-time PRPs’ manufacturing data and remotely control these
manufacturing resources.
• R6: CM should implement “everything as a service” oriented
architecture model in manufacturing applications for users.
• R7: CM should assist users to find suitable manufacturing resources
in the cloud, CM should provide an intelligent search engine.
• R8: CM should have the capability to provide instant quotation
online upon user’s specification.

Based on the defined characteristics, comparison can be made between

current CM practice in industry and what the ideal CM environment
should be. This comparison will give some indications on where the
research on CM should be focused on to facilitate a wider CM adoption.

3.1 Gaps in Current CM Adoption in Industry

Research focusing on CM development is still at its early stage. Even

though CM, theoretically, benefits its participants (users, PRPs, and
application providers), its adoption in the manufacturing sector is still
limited. Currently, one example of CM implementation for traditional
manufacturers is MFG.com, which connects consumers with over
200,000 manufacturers in 50 states within the US [9-10]. Based on
users’ requirements (drawing, delivery date, specification), MFG.
com matches those requirements to potential suppliers’ capabilities,
expertise, and instantaneous production capacity for the quotation.

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MFG.com provides activities from creating the request for quote to the
shipment of the final product.

Comparing what has been established in the current CM implementation

in the industry based on MFG.com initiatives and the ideal CM
environment stated earlier, there are still significant gaps between the
current practice and ideal CM environment. Some of those gaps are:

• Inter-factory (PRPs) integration within the CM (requirement R1).

Based on MFG.com practices, individual PRP’s are to submit
quotation for part fabrication using resources from one particular
PRP. Further benefits can be realized if process integration between
PRPs is possible.
• Instantaneous quotation of requested services (requirement R8).
The quotation for part fabrication is not instantaneously done
by service providers. It is performed by individual PRPs who
is interested in bidding for a job. In order to address this gap,
standard input parameters have to be established for both users
and PRPs and standardized cost algorithm needs to be developed
by CM service providers.
• Implementation of “everything as a service” is lacking (requirements
R4 and R6). The focus of CM is to offer manufacturing as a service
to the users. These services should not be limited to the fabrication
of the requested parts. They should also include other resources
to enable the manufacturing activities such as multi-tenancy CAD/
CAE software that can be offered to CM participants as a service.
• Real time monitoring and control of PRP resources (requirement
R5). One of the characteristics of ideal CM environments is the
ability of service providers to monitor real time data of PRP
resource performance and capacity so that their utilization can be
optimized. Current practice is for the CM service provider to use
machine availability given by the PRP (not real time) to identify
the potential PRP to be assigned a particular job. To enable this
capability, the PRP resource utilization and performance must be
able to be tracked in real time by means of Internet of Things (IoT)
through proper sensors [11]. Those data then have to be linked to
the service providers to be analyzed.

Based on the gaps identified between ideal CM versus the current

CM practice in industry, the subsequent section discussed the
current research activity pertinent to those topics. This will enable
the identification of research area to facilitate industry of an ideal CM
adoption.

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3.2 Current State of Cloud Manufacturing Research

This section discusses the research work carried out on the topics defined
as the possible enablers for ideal CM adoption by manufacturing
industry. Table 1 analyzes the major existing CM approaches found in
published literature with respect to the aforementioned requirements.

Table 1: CM approaches vs CM requirements

Ideal CM environment requirements Literatures
R1 [9-17]
R2 [9, 18-23]
R3 [9, 18, 24-26]
R4 [11]
R5 [28-36]
R6 [11, 37]
R7 [8, 10, 38-47]
R8 [16]

3.2.1 Inter-factory (PRPs) integration within the CM

Seamless integration between PRPs is the key in ensuring the efficiency

of a particular CM platform. Wang and Xu [27] proposed Interoperable
Cloud-based Manufacturing System (ICMS). ICMS provides a cloud-
based environment for integrating existing and future manufacturing
resources (software tools and physical manufacturing devices) by
packaging them using the Virtual Function Block mechanism and
standardized description according to user’s specification. In addressing
possible needs for PRP to have the capability to create different cloud
modes for different users grouping, Lu et al. [13] defined a hybrid
manufacturing cloud (HMC) system. This system enables PRPs to create
different cloud modes (private cloud, community cloud, and public
cloud) to be used in a particular CM platform. HMC allows PRPs to
define their own resource sharing rules for the different cloud modes.
It gives PRPs ability to have control over their resources, improve trust
in the system with an ability to protect access to resources.

Multi-granularity resource virtualization and sharing strategies are

discussed to bridge the gap between complex manufacturing tasks and
available resources [14]. The proposed approach considered the effect
of stepwise decompositions of a manufacturing task using workflow.
Correlations between resources estimated using multi-granularity
resource aggregation functions and resource clustering algorithms are

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presented to integrate the physical resources into virtualized resources

which provide a solid foundation for resource discovery and selection.
Wei and Liu [15] analyzed the usage of Ant Colony Optimization
algorithm to match tasks with resources in CM using factors such as
selection of time, cost, quality of services, and workload of equipment.
An optimum solution is suggested and evaluated based on case studies.

CM service providers carry the allocation of resources based on

users requirements autonomously. This matching activity needs to
be executed so that resource optimization is achieved and it has to
be done in almost “real time” situation to enable real-time quotation.
Hence, the time required in performing the simulation for resource
or task allocation needs to be estimated. Chen and Wang [16] defined
a methodology to estimate the time taken for this simulation. The
methodology classifies tasks using k-means before their simulation
times are estimated. For each task category, an Artificial Neural
Network (ANN) is constructed to estimate the required task time in
the category. However, to reduce the impact of ANN over-fitting, the
required time for each simulation task is estimated using the ANNs of all
categories. The estimated times are then weighted and summed. While
this approach addresses the automation and control requirements, it
does not cope with the inter-factory style Industrial Control System
(ICS) that requires high speed, high reliability, and long-distance range.
Typical communication systems used in the intra-factory environment
such as Distributed Control Systems (DSC) are usually more reliable
and allow faster transmittal of data than Supervisory Control and
Data Acquisition (SCADA). However, they are not well suited for long
distance communications [17].

3.2.2 Instantaneous Quotation of Requested Services

One of the critical steps to enable autonomous and instantaneous

quotations is to develop product cost models specific for CM
environments. However, there is dearth of research on this topic [9].
One study related to this topic is reported [16]. The study provided
important insights into the economics of Cloud-Based Design and
Manufacturing (CBDM) based on the case studies of products
manufactured using 3D printers. Aside from this approach, little or
no research has been done on CM cost model. Standards need to be
established with respect to input information required from users and
PRPs.

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3.2.3 Implementation of Everything as a Service

The aim of CM is to offer manufacturing services and optimize the usage

of other resources such as design and engineering software through
the cloud. Offering of a broad range of computer-aided technologies
(CAx) such as computer -aided design (CAD), computer-aided
engineering (CAE), computer-aided manufacturing (CAM) has been
pursued by organization such as UberCloud [45]. UberCloud brings
industry partners, computing resource providers, software providers,
high performance computing (HPC) and cloud computing experts
together to integrate HPC and cloud computing with CAx vendors
such as Autodesk and ANSYS [34]. This act provides affordable access
especially to small and medium manufacturers (SMMs), to advanced
data analytics, modeling and simulation tools in product design and
manufacturing.

3.2.4 Real-time Monitoring and Control of PRP Resources

In today’s dynamic business environment, there are various

uncertainties that can disrupt manufacturing activities. Such disruption
will render original schedules to become obsolete. To react to such
events in a timely manner, it is necessary to execute real time resource
rescheduling adjustments. This can only be done if the real-time resource
status information across the CM is available. Yang et al. [35] proposed
dynamic service selection that utilizes IoT’s real-time sensing ability
and big data knowledge extraction capabilities to improve service
selection. IoT enables real-time capture of disturbances and resources
status. Big data technologies are employed to extract knowledge
about service qualities and market demands. Wang [36] introduced a
tiered system architecture and introduces IEC 61499 function blocks
for prototype implementation. By connecting to a Wise-ShopFloor
framework, it enables real-time machine availability and execution
status monitoring during metal-cutting operations both locally and
remotely. The closed-loop information flow makes process planning
and monitoring possible.

4.0 RESEARCH DIRECTION

Based on analysis between the CM implementation in the industry and
the ideal CM structure, there are few areas of concerns that need to
be addressed in closing the gaps between the two that has not been
addressed by researchers in this field.

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• Standardization on PRPs and user input variables to develop

universal manufacturing cost modeling for various manufacturing
processes.
In order to be able to provide real - time quotation in response
to user requests, development of universal cost modeling for
various manufacturing process is required. This model should be
applicable for all PRPs and specific common variables have to be
defined so that specific values of the variables can be specified by
the users and PRPs as the inputs to the costing model.

• Definition of cost models for “everything as a service” in CM.

Based on the review, capabilities to offer such service for CAx in
cloud environments is available [11]. What is missing is the cost
structure based on user requirements and input variables; for
examples, the user has physical prototype without CAD drawing
and no expertise in using the CAD system, or would like to perform
CAE (Computer Aided Engineering) analysis on the prototype.

• Integration of real-time monitoring, control data, resource

allocation algorithms, and sharing strategies.
Most current research analyze this area separately, real-time
monitoring [26-27] and allocation algorithm and sharing strategy
[8, 10, 35-36]. Integration of the two is essential so that “real
time” resource allocation can be performed. The integration of
“real-time” data monitoring into resource allocation exercise will
significantly improve the agility of the system to respond to any
changes in the platform such as demand, machine break down,
and material availability.

• Integration of all supply chain components in the CM.

Most research in CM analyze the integration of users, PRPs and
service provider [9, 12, 16]. The integration of other supply chain
components, such as logistic and materials, in the CM environments
is also imperative in meeting user requirements. Those components
are also dynamic in nature and need to be adjusted accordingly in
real-time during resource allocation exercise.

• Information security concern.

In CM environment, huge amount of data from user/OEM and
PRPs are shared with the service provider. This information
can be quite sensitive that represent competitive advantage of
the specific organization. For the CM players to be willing to
share this information, CM service provider must ensure that the

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information in security system and policy are in place to ensure

data can be shared and protected at the same time. This aspect of
CM has not been well documented yet [48].

5.0 CONCLUSIONS
CM has been recognized as an emerging manufacturing paradigm
that can provide cost and flexibility advantages. This review compares
current CM practices with those of the ideal CM environments. Gaps
between the two are highlighted and current states of CM research
pertinent to the gaps are reviewed. Finally, future research directions
to address the gaps that have not been holistically studied are discussed.

ACKNOWLEDGMENTS
The authors would like to acknowledge Fakulti Kejuruteraan
Pembuatan dan Universiti Teknikal Malaysia Melaka for supporting
this study.

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