Digitalization or Digital Enterprise Hannover Messe Word of the Day

Obama and Merkel at HannoverEchos of Industrie 4.0 were present around the Hannover Messe 2016, but times have moved on since 2013. The word of the week was digital–in many forms, such as digitalization, digital enterprise, digital factory.

Chancellor Merkel and President Obama (two friends says the headline) were not digital, however, as they made a grand tour through parts of the trade fair highlighting the latest manufacturing technologies. And when the US President appears, the rest of the world stops. There were a reported 10,000 police in Hannover. The building I was in during the tour was surrounded by police, we could see snipers on the buildings around us, and we were locked in from 9 am until 1 pm. Fortunately, we had food.

Fortunately also for Siemens, they had a “captive” audience for their press conference for an extra couple of hours.

Siemens captured a large chunk of my time in Hannover. (Disclaimer, two divisions of the company paid some of my expenses.) Because I had some good contacts, I was able to get many interviews and looks behind the scenes. But the main reason I spent much time there was that Siemens had much to show.

Digital Manufacturing Vision

The digital manufacturing vision that Anton Huber laid out for me at the ARC Forum in Orlando in 2006 has progressed considerably. With a backbone of Internet of Things technologies and adding in digital everywhere, Siemens revealed the benefits of bringing everything together.

Take a tour through automobile production, for example. Sebastian Israel took me through the process from designing in Siemens CAD solution (NX), to production planning and engineering (TeamCenter, both from Siemens (PLM). The process continues through designing and engineering the line–digitally of course. Because it is digital first, engineers can simulate the line removing constraints and interferences before any steel is cut.

Integrating the automation and controls to the process is the hardest part of the system. Siemens has begun this process. It does acknowledge much work remains in this area. Mechatronics integration is well along. Things do not stop here, though. TeamCenter helps with change management. TiA Portal enables control engineering collaboration. The process feed the execution level (MES) for production scheduling and other functions including feeding the resource manager of CNC tools to help select the proper next tool to use. This integrates into services–data is usable for such analyses as predictive maintenance.

So far as I can tell, no other company comes close to the ability to do all this within its own umbrella. Although remarkable for what I’d call the “old” Siemens, the “new” Siemens actually uses partnerships to fill the gaps in the system. This is not the same company I met 15 years ago.

I congratulate Mr. Huber for the vision and seeing it through to its current state.

Other Siemens News

Rihab Ehms led a personal tour on TIA Portal Engineering Software. This product continues to develop and flesh out gaps. The first glimpse from a few years ago was pretty much that of an Integrated Development Environment for programming control. Slowly, the Siemens team added drives, HMI, and now motion control and motor management. Also included is energy management. It is a multiuser environment enabling broad collaboration among engineers using a “smart library” concept and common data management.

Ulli Klenk, next on my list, discussed Industrial Additive Manufacturing. I mentioned some interviews I’ve had on additive manufacturing research at North Carolina State. A Duke grad, he was a bit disappointed. His passion showed on the ways Siemens is helping customers with additive manufacturing (also known as 3D printing). Leveraging expertise from Siemens PLM and working with partner machine builders, the company has systems working in a number of application.

Not part of this exhibit but thoroughly fascinating as well, Local Motors sent an engineer to participate in the Siemens booth showing how the company is building a complete car (and now a minibus) using additive manufacturing methods.

The paper industry faces challenges as we all reduce the amount of paper we use. It is searching for alternatives to its product lines. Therefore the broadening of the industry term to “fiber.” Siemens is there, of course, to  blend its process control, drive systems, simulation, and predictive maintenance capabilities. Dr. Hermann Schwarz explained the technologies and then said these technologies will help the paper industry broaden into the fiber industry.

One last technology that I didn’t tour but heard much about is MindSphere. Partnering with SAP HANA, this is an industrial cloud providing data driven services and eventually an App Store so that customers can wring the most value possible from their own data.

Not a Chance

When this vision was explained in 2006 and 2007, I didn’t think there was any chance Siemens could pull it off. The pieces are coming together well. They still have much work to do, but customers can certainly benefit right now with increased manufacturing flexibility, product quality, and efficiency.

 

Manufacturing Podcast Number 148 Digitalization and Hannover

GE Opens Advanced Manufacturing Works

The world of advanced manufacturing and digitization continues its steady advance. GE recently announced opening of its first advanced manufacturing facility—a power products manufacturing plant in Greenville, SC.

Interesting that Rockwell Automation just announced a CEO transition leading analysts to look back on Keith Nosbusch’s tenure. Certainly at a time when rivals such as Siemens, Schneider Electric, and, yes, GE have made strong moves in the digital manufacturing space, Rockwell stuck with the “Connected Enterprise.”

That strategy essentially refers to EtherNet/IP networking. I recall my last conversation with CTO Sujeet Chand. I thought maybe he was going to talk about adopting some new technologies. Instead, he introduced a Cisco executive who talked about switches.

I’m en route to Hannover where I have appointments already with Siemens and GE Digital to talk about their digital strategies. Throw in Dell and SAP, and things get interesting.

I think Blake Moret, the next CEO, has his work cut out for him to keep Rockwell Automation relevant in the new age. I’m not usually too critical of Rockwell. I know its reputation for being conservative. Nosbusch stayed the course firmly. I’m starting to think that if Moret doesn’t provide some new directions, there is a risk.

Meanwhile, Back to GE

  • The bullet points from its press release:
    New Facility Will Deploy Best-in-Class Technologies to Accelerate Improvements in Every Aspect of the Manufacturing Process Including Design, Engineering, Product Development, Production, Supply Chain, Distribution and Service and Will Unlock New Productivity and Growth across GE’s Power Portfolio
  • GE Has Invested $73 Million to Date and Will Invest an Additional $327 Million across the GE Power Greenville, S.C., Campus to Boost Innovation and Accelerate the Commercialization of Development of Best-in-Class Technologies for Customers across the Globe
  • Eighty Engineering and Manufacturing Jobs Created with the Facility’s Opening, Expected to Have a Multiplier Effect across the Supply Chain

GE celebrated the grand opening of its new state-of-the-art Advanced Manufacturing Works (AMW) in Greenville as the GE Power business continues to introduce tomorrow’s technologies, today. The announcement comes on the heels of GE’s grand opening of its first additive manufacturing center in Pittsburgh in early April and represents the next step forward in GE’s journey as the world’s premiere digital industrial company.

“The opening of the AMW is a pivotal moment for us. We’re building a skilled workforce and culture that’s devoted to delivering breakthrough innovations that deliver better, faster outcomes for our customers and unlock new productivity and growth.”

GE has invested $73 million in the facility to date and will invest another $327 million across the GE Power Greenville campus over the next several years to drive innovation and the faster development of best-in-class technologies that deliver more value for customers across the globe. At least 80 engineering and manufacturing jobs are being created with the facility’s opening.

GE Power President and CEO Steve Bolze was joined by South Carolina elected leaders for the grand opening of the 125,000-square-foot facility at GE’s Greenville manufacturing campus. The facility broke ground in mid-2014.

“GE is leading the transformation of manufacturing in the power industry, and this facility will ignite the digital industrial revolution for our company and the industry,” said Bolze. “The opening of the AMW is a pivotal moment for us. We’re building a skilled workforce and culture that’s devoted to delivering breakthrough innovations that deliver better, faster outcomes for our customers and unlock new productivity and growth.”

The AMW is GE Power’s first advanced manufacturing facility. The facility will revolutionize the way GE Power designs, creates and improves products by serving as an incubator for the development of advanced manufacturing processes and rapid prototyping of new parts for GE’s energy businesses—Power, Renewable Energy, Oil & Gas and Energy Connections. New techniques and production processes developed at the facility will bring new best-in-class products to global customers quicker than ever.

Advanced manufacturing brings a convergence of the latest technologies together to transform every aspect of the production process to make new, better things, faster. Industrial innovations, from new materials science, 3-D printing (additive manufacturing) and automation to advanced software platforms and robotics are redefining manufacturing for the future.

Advanced manufacturing has a huge and growing significance worldwide. Recent research1 found that nearly 24 million people are already employed in advanced manufacturing industries in the U.S., creating about 19 percent of GDP, and that each job in an advanced manufacturing industry supports another 3.5 jobs through the supply chain.

GE started in Greenville more than 40 years ago with a 340,000-square-foot site. With the latest addition of the AMW, the site has grown close to 1.7 million square feet of factories, offices and laboratories focused on manufacturing advanced products for customers worldwide. GE has more than 3,200 employees in Greenville and has invested more than $500 million in the last five years to bolster critical manufacturing activities housed on the campus. The company has established valuable relationships with local community schools, universities and technical programs to develop new technologies and create a system to support those who are passionate about growing with the industry.
1 The workforce of the future: Advanced manufacturing’s impact on the global economy, April 2016, GE. Authors: John Paul Soltesz, Marni Rutkofsky, Karen Kerr, Marco Annunziata

Industrial PC Market Still Growing

Industrial PC Market Still Growing

The PC market, especially for consumers but also for business, is slowing. Manufacturers are turning to industrial PC market.The New York Times  recently ran an article about Intel cutting jobs due to the continued slowdown in the PC market. Recently I wrote about Dell entering the embedded PC for industrial applications market, most likely due to the same market forces.

From The New York Times article:

Intel, the world’s largest maker of semiconductors, said on Tuesday that it was laying off 12,000 people, about 11 percent of its work force, as it continues to reel from a long downturn in global demand for personal computers.

The company’s chief executive, Brian Krzanich, announced the layoffs as part of a larger corporate restructuring, which will result in a $1.2 billion charge. Intel also reported lower-than-expected first-quarter earnings and reduced its projected revenue for the year.

“Intel has been known as the PC company,” Mr. Krzanich said in an earnings call with Wall Street analysts. “It’s time to make this transition and push the company all the way over” to supplying chips for things like smartphones, cloud computing, sensors and other devices.

Here is my introduction to the Dell embedded PC announcement:

Faced with a declining market for desktop PCs and a burgeoning market for embedded PC, Dell has announced launch of its first purpose-built industrial PC (IPC) products. This release complements its entry into the Internet of Things market announced last fall at Dell World. [Note: I do some work with Dell on IoT issues, but that has no bearing on reporting this.]

Rising Industrial PC Market to Stabilize

While the global market for industrial PCs has experienced ups and downs in recent years, it is forecast to pick up in 2016 and will start to stabilize in 2018. The key reason for the increase in short-term growth is an expected improvement in the outlook for process industry investment and the continued use of industrial PCs in applications outside the established areas of industrial automation.

Global revenue from industrial PCs is forecast to grow at a compound annual growth rate (CAGR) of 6 percent from 2014 to 2019, reaching $4.3 billion, according to IHS Inc.

“While the world market for industrial PCs has enjoyed relatively strong growth since 2013, recovery is projected to be slower through 2016,” said Rita Liu, manufacturing technology analyst, IHS Technology. “This slowed recovery is based on poor performance of downstream process-industry sectors in the current economic environment, with very low oil prices, a global downturn in mining, and the like.”

Europe, Middle-East and Africa (EMEA) was still the largest market for industrial PCs in 2014, at $1.2 billion, or 38 percent of the global total, according to the IHS Industrial PCs Intelligence Service. Asia-Pacific was the second-largest market, with estimated revenues of $ 1.1 billion. “It is worth noting that due to the slowing Chinese economy, the Asia-Pacific market for industrial PCs is projected to grow more slowly,” Liu said. “In fact, the Asia-Pacific market is expected to fall behind the American market this year.”

Of course the performance of the industrial PC market depends largely on the underlying growth in the sectors that use them, including discrete and process manufacturing sectors, as well as building automation, medical, transportation and infrastructure and other non-industrial sectors. Industrial sectors accounted for over half of the world market in 2014 and 2015, and they are expected to grow much more slowly than non-industrial sectors. Generally transportation and infrastructure, medical, and gaming sectors will grow more quickly than the general market through 2019.

Robotics is the fastest growing industrial sector for PCs; followed by materials-handling equipment; food, beverage and tobacco machinery; and packaging machinery. “Tobacco and packaging machinery are closely connected with consumer markets and enjoy relatively stable performance, no matter what the overall economic situation might be,” Liu said.

Industrial PC Market Still Growing

Klein Industrial Workforce Survey

Many people are concerned about recruiting the next generation industrial workforce. Not only must we recruit younger people, attracting young women into the industry in a variety of professions would be great.
Klein Tools just sent the results of a survey—its second annual “State of the Industry” one. This year, Klein Tools took a new direction with the survey focusing on family and asking more than 200 union and non-union electricians about their experiences getting into the field and on the jobsite.

As a sixth-generation family business, Klein Tools wanted to know how much support electricians get at home, which helps Klein create programs to better support future electricians and their families. The survey also specifically focused on women in the electrical industry, finding how many regularly work on jobsites with union and non-union electricians.

Family Ties & Influence

The Klein ‘State of the Industry’ survey found family and friends have important influence over those deciding to join the industrial workforce and specifically become electricians, particularly among union members. In fact, they may be the strongest factor in determining if someone will apply for an apprenticeship and commit to a career as an electrician.

  • Three in ten electricians (30%) have one or more other electricians in the family, with union members (39%) significantly more likely than non-union members (23%) to have another electrician in their family.
  • One-half of electricians (51%) were encouraged to become an electrician. More than nine in ten electricians (92%) would encourage someone to become an electrician.
  • Two-thirds of electricians (64%) would encourage their children to become an electrician.
  • Three in ten electricians (30%) would specifically encourage their daughter to become an electrician.

“Family is what Klein Tools is based on and it’s important apprentices have family support when deciding to become an electrician,” said Mark Klein, president of Klein Tools. “We know not all students receive the support they need when considering trade schools and we are actively working with apprenticeship organizations to ensure students have access to the resources, tools, information and leadership necessary to be successful in this industry.”

Women on Jobsites

According to the U.S. Department of Labor, in 2014 women represented only 2.4 percent of the electrician workforce. Klein Tools wanted to know how often women worked on job sites in the past year and was pleased to find the majority of jobsites had women regularly working on them.

  • More than three-fifths of electricians (62%) report having worked with one or more women on job sites in the past year.
  • Union members (78%) are significantly more likely than non-union members (51%) to have worked with one or more women on job sites in the past year.

“This is a good start, but is still markedly lower than what we believe it should be,” said Mark Klein, president of Klein Tools. “With numerous talented tradespeople expected to retire in the coming years, we need more trained electricians filling in the ranks and we support anyone who wants to contribute to this ever-changing and challenging industry.”

The Klein Tools ‘State of the Industry’ survey was conducted by Russell Research, an independent survey research firm, which conducted 200 online interviews from January 27 – February 5, 2016, to secure a nationally significant representation. Forty percent of respondents were union members and 60 percent were not.

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