ABB Reorganizes

ABB is reorganizing its automation divisions to “align their activities more closely with those of its customers.” The company expects these changes to enable it to better tap growth opportunities in service, expand its presence in the discrete manufacturing sector and better respond to the increasing demand for energy efficient solutions.

Effective Jan. 1, 2010, the business units currently in the Automation Products and Robotics divisions will be regrouped into two new divisions –- Discrete Automation and Motion, and Low Voltage Products. The Process Automation division will remain unchanged except for the addition of the instrumentation business from the Automation Products division.

“ABB’s automation businesses with their focus on productivity and energy efficiency have tremendous scope for growth,” said Joe Hogan, ABB’s chief executive officer. “We have strengthened the market approach by grouping together businesses with similar customers, technologies and service models, which will help us accelerate the development of solutions for our customers.”

The new divisions will be comprised as follows:

The new Low Voltage Products division includes businesses producing mainly low-voltage electrical equipment that is sold to wholesalers, original equipment manufacturers as well as system integrators, and has moderate service requirements. The division had 2008 pro-forma revenue of $4.8 billion and about 19,000 employees.

The new Discrete Automation and Motion division includes products and systems targeted at discrete manufacturing applications, such as robotics and programmable logic controllers (PLCs), and providing motion in plants, such as motors and drives. These businesses help customers to increase the productivity and energy efficiency of their assets. It also includes a significant offering for the renewable sectors of solar and wind, as well as the rail segment. The businesses sell mainly to original equipment manufacturers, system integrators and directly to end users, and require a more intensive, tailored level of service. The division had 2008 pro-forma revenue of $6.6 billion and also about 19,000 employees.

Process Automation will remain unchanged except for the addition of ABB’s instrumentation business, currently part of the Automation Products division. The move will strengthen the division’s process automation platform as instruments measuring temperature, flow, pressure, etc. are key to optimizing industrial processes. The division had 2008 pro-forma revenue of $8.4 billion and about 29,500 employees.

ABB intends to provide pro-forma orders, revenues and earnings before interest and taxes (EBIT) for the period 2007 to 2009 under the new structure when it reports its fourth-quarter results in February next year. The company will also update at that time the divisional guidance on its 2007-2011 targets, to align them with the new organization.

The reorganization of the automation businesses will be accompanied by several related leadership changes as of Jan. 1, 2010.

Tom Sjökvist, currently responsible for Automation Products, will become head of the new Low Voltage Products division. Sjökvist has provided successful leadership for the low-voltage business for many years and has driven the Automation Products division to new levels of profitability.

Ulrich Spiesshofer, currently responsible for Corporate Development on the Executive Committee, has been appointed to run the Discrete Automation and Motion division. Spiesshofer, who joined ABB in 2005, has led ABB’s strategic growth initiatives such as its service activities, and has played a key role in managing the company’s global footprint optimization efforts and its $2-billion cost take-out program.

Anders Jonsson, currently responsible for the Robotics division, will have an Executive Committee role with responsibility for continuing the implementation of ABB’s current cost take-out program as well as the company’s Global Footprint program, which aligns ABB’s resources with the company’s growth opportunities. Jonsson has successfully repositioned the robotics business for long-term profitable growth.

Veli-Matti Reinikkala remains head of the Process Automation division.

Offline Productivity

Hope all of you in the US had a great Thanksgiving weekend. I spent some time online, got a little work done, but then I also spent the better part of two days offline. You can do a lot of thinking that way. Sometimes we’re so distracted by the constant Twitter stream, emails, phone calls and so on that we don’t take time out in the day to think. Glen writing the LifeDev blog experienced this on his recent honeymoon. Something to consider putting into your calendar–time to think.

Participate in WBF Conference

WBF, the association formerly known as World Batch Forum, found itself in the position during the recession of 2009 of postponing its annual meeting (and also important source of funds). It has however decided to go for it in 2010 with a conference in Austin at the University of Texas on May 24-25.

The organization has issued a Call for Papers for the event. Interesting and knowledgeable speakers are the core of a successful event, and WBF is looking for a few good people. The conference theme is “Achieving Operations Strength.” As the organizers state it, “WBF conferences have been the place to hear where the future of manufacturing is described, as experts and leaders present their visions of what is to come and share their practical experience on real projects. Join us in this exciting opportunity to share your understanding of current and upcoming manufacturing management, integration and control methods and technologies. The conference is designed to help attendees learn from presentations and tutorials from people who have real experience on real projects and studies, and is a rare opportunity to network and exchange information with other manufacturing and automation professionals. WBF provides an opportunity for you to share what really works and what doesn’t work.”

Keynote speakers, panels, and discussion forums and individual presentations will provide focus on case studies, current and evolving manufacturing methods and technologies, and implementation of industry standards including ISA-88, ISA-95, ISA-99, B2MML, and Make2Pack. WBF’s collaborative activities with ISA, OMAC and MESA will provide a broad and balanced view of the world of new manufacturing methods and technologies.

Any of you who have have been working in any of the areas mentioned above or if you have come up with new or improved ways of making manufacturing more efficient, less costly, of higher quality or just better, your colleagues would like to hear about it. Please consider taking part in this exciting program. 

Abstract Submissions
All papers and presentations are to be in English and must be noncommercial and cleared for presentation.  The abstract should be concise and comprehensible and include the following:

  • Paper Title
  • Introductory sentence(s) that creates interest in the topic
  • Brief definition of problem domain
  • Brief description of solution method (no details)
  • Brief summary of results and conclusions (no details)

Abstracts are to be submitted electronically to [email protected] before December 18, 2009. 

Abstracts are to be between 100-250 words in length.  Upon notification of acceptance of abstract by the WBF Program Committee, the author will be required to sign WBF’s copyright release form or provide WBF with an acceptable equivalent. WBF requires free use of the completed paper without restrictions.

Paper Submissions
Authors of provisionally accepted abstracts will be required to submit a draft paper in Microsoft Word format and an accompanying PowerPoint presentation for review no later than March 1, 2010. Except by prior arrangement, only those papers submitted by this date will be presented at the conference.

WBF Focus Areas & Potential Paper Topics
Themes identified below suggest the types of papers that will make up the WBF conference.  The content and message of papers should include progress, status, successful application and lessons-learned from the application or use of the technology or method within your organization and throughout the industry. Of particular program interest are case studies relative to the successful application and use of current, new, or leading edge manufacturing management, integration or control methods or technologies.

Appropriate subject areas for papers and case studies include, but are not limited to:
1. Operational Strength in Process Manufacturing – Papers and case studies that describe new or innovative methods for applying or misapplying the ISA 88 and ISA 95 standards in the process manufacturing industries.
2. Operational Strength in Manufacturing IT – Papers and case studies that describe problems, solutions, concerns, and potentials in the realm of Manufacturing Information Technology. 
3. Operational Strength in Industrial Security – Papers and case studies that describe new or innovative methods for applying or misapplying the ISA 99 standard and case studies of industrial security issues and solutions.
4. Business to Manufacturing Integration – Papers and case studies that describe case studies in manufacturing integration.  This could include reports and case studies on B2MML, OPC, and OAGIS integration.
5. Manufacturing Operations Management – Papers and case studies that describe successful and unsuccessful applications of MOM and MES.

Important Dates
Abstract Submittal Deadline – December 18, 2009
Notification of Provisional Acceptance – January 25, 2010
Draft Papers and Presentations Deadline – March 1, 2010

PLCopen meets OPC

I’m not in Germany this week, so I’m not attending the SPS Drives show. (Man, that would have put me over the top for Platinum Elite on Continental, but also put me over the top for divorce court, too, maybe.) I’m watching for Carl Henning’s “tweets” from the Profibus point of view. But meanwhile, Tom Burke, OPC Foundation president, sent a note about a collaboration effort between OPC Foundation and PLCOpen–the keepers of the IEC 61131 PLC programming standard.

In this case, the organizations and their members are demonstrating a mapping of the IEC 61131-3 programming model to OPC UA with five HMI and five control suppliers showing transparent data exchange using OPC UA in a boiler application.

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